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UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
10-Q/A-1
(Mark
One)
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For
the quarterly period ended: September 30, 2023
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For
the transition period from _______ to _______.
Commission
File Number: 000-55453
ENDONOVO
THERAPEUTICS, INC.
(Exact
name of registrant as specified in its charter)
Delaware |
|
45-2552528 |
(State
or other jurisdiction of |
|
(I.R.S.
Employer |
incorporation
or organization) |
|
Identification
No.) |
6320
Canoga Avenue, 15th Floor, Woodland Hills, CA 91367
(Address
of principal executive offices, zip code)
(800)
489-4774
(Registrant’s
telephone number, including area code)
Securities
registered pursuant to Section 12(b) of the Securities Exchange Act: None
Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
Yes
☒ No ☐
Indicate
by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule
405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
was required to submit such files). Yes ☒ No ☐
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,”
“smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large
accelerated filer ☐ |
Accelerated
filer ☐ |
|
|
Non-accelerated
filer ☒ |
Smaller
reporting company ☒ |
|
|
|
Emerging
growth company ☐ |
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes
☐ No ☒
As
of December 28, 2023, there were 318,751,597 shares of common stock, $0.0001 par value issued and outstanding.
EXPLANATORY
NOTE
The
Purpose of this Explanatory Note is to explain that this information has not been subject to review procedures by our independent auditing
firm pursuant to the requirements of SAS100 due to unavoidable delays and we expected it to be completed by or before March 31, 2024.
ENDONOVO
THERAPEUTICS, INC.
TABLE
OF CONTENTS
FORM
10-Q REPORT
September
30, 2023
PART
I - FINANCIAL INFORMATION
Item
1. Financial Statements.
Endonovo
Therapeutics, Inc.
Condensed
Consolidated Balance Sheets
| |
September 30, 2023 | | |
December 31, 2022 | |
| |
(Unaudited) | | |
(Audited) | |
| |
| | |
| |
ASSETS | |
| | | |
| | |
Current assets: | |
| | | |
| | |
Cash | |
$ | 0 | | |
$ | 98 | |
Prepaid expenses and other current assets | |
| 35,504 | | |
| 15,724 | |
Total current assets | |
| 35,504 | | |
| 15,822 | |
| |
| | | |
| | |
Patents, net | |
| 780,260 | | |
| 1,265,444 | |
Total assets | |
$ | 815,764 | | |
$ | 1,281,266 | |
| |
| | | |
| | |
LIABILITIES AND SHAREHOLDERS’ DEFICIT | |
| | | |
| | |
Current liabilities | |
| | | |
| | |
Accounts payable and accrued liabilities | |
$ | 1,180,968 | | |
$ | 884,195 | |
Accounts payable and accrued liabilities – related party | |
| 278,665 | | |
| - | |
Accrued interest related to notes payable | |
| 4,417,039 | | |
| 3,542,650 | |
Deferred compensation | |
| 4,229,029 | | |
| 3,918,788 | |
Deferred compensation – related party | |
| 630,568 | | |
| 523,818 | |
Notes payable, net of discounts of $28,210 and $10,587 as of September 30, 2023 and December 31, 2022 | |
| 6,952,372 | | |
| 7,041,145 | |
Notes payable – former related party | |
| 104,600 | | |
| 112,100 | |
Derivative liability | |
| 5,902,829 | | |
| 17,359,064 | |
| |
| | | |
| | |
Total current liabilities | |
| 23,696,070 | | |
| 33,381,760 | |
| |
| | | |
| | |
Acquisition payable | |
| 79,825 | | |
| 79,825 | |
Total liabilities | |
| 23,775,895 | | |
| 33,461,585 | |
COMMITMENTS AND CONTINGENCIES, note 9 | |
| - | | |
| - | |
| |
| | | |
| | |
Shareholders’ deficit | |
| | | |
| | |
Super AA super voting preferred stock, $0.001 par value; 1,000,000 authorized and 25,000 issued and outstanding at September 30, 2023 and December 31, 2022 | |
| 25 | | |
| 25 | |
Series B convertible preferred stock, $0.0001 par value; 50,000 shares authorized, 600 shares issued and outstanding at September 30, 2023 and December 31, 2022 | |
| 1 | | |
| 1 | |
Series C convertible preferred stock, $0.0001 par value; 8,000 shares authorized, 738 shares issued and outstanding at September 30, 2023 and December 31, 2022 | |
| - | | |
| - | |
Series D convertible preferred stock, $0.0001 par value; 20,000 shares authorized, 0 and 50 issued and outstanding at September 30, 2023 and December 31, 2022 | |
| - | | |
| - | |
Common stock, $0.0001 par value; 2,500,000,000 shares authorized; 318,751,597 and 213,227,538 shares issued and outstanding as of September 30, 2023 and December 31, 2022 | |
| 27,940 | | |
| 21,322 | |
Additional paid-in capital | |
| 43,644,063 | | |
| 42,919,086 | |
Stock subscriptions receivable | |
| (1,570 | ) | |
| (1,570 | ) |
Accumulated deficit | |
| (66,630,590 | ) | |
| (75,119,183 | ) |
Total shareholders’ deficit | |
| (22,960,131 | ) | |
| (32,180,319 | ) |
Total liabilities and shareholders’ deficit | |
$ | 815,764 | | |
$ | 1,281,266 | |
See
accompanying summary of accounting policies and notes to unaudited condensed consolidated financial statements.
Endonovo
Therapeutics, Inc.
Condensed
Consolidated Statements of Operations
(Unaudited)
| |
| | |
| | |
| | |
| |
| |
Three Months Ended | | |
Nine Months Ended | |
| |
September 30, | | |
September 30, | |
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| |
| | |
| | |
| | |
| |
Revenue | |
$ | 1,520 | | |
$ | 10,960 | | |
$ | 134,260 | | |
$ | 13,892 | |
Cost of revenue | |
| 827 | | |
| 4,027 | | |
| 4,823 | | |
| 5,124 | |
Gross profit | |
| 693 | | |
| 6,933 | | |
| 129,437 | | |
| 8,768 | |
| |
| | | |
| | | |
| | | |
| | |
Operating expenses | |
| 473,490 | | |
| 503,711 | | |
| 2,262,833 | | |
| 2,790,057 | |
Loss from operations | |
| (472,797 | ) | |
| (496,778 | ) | |
| (2,133,396 | ) | |
| (2,781,289 | ) |
| |
| | | |
| | | |
| | | |
| | |
Other income (expense) | |
| | | |
| | | |
| | | |
| | |
Change in fair value of derivative liability | |
| 0 | | |
| (56,213 | ) | |
| 11,445,466 | | |
| (1,903,177 | ) |
Gain (loss) on settlement of debt | |
| 0 | | |
| 319,081 | | |
| 156,062 | | |
| 362,894 | |
Other expense | |
| (7,481 | ) | |
| (30,879 | ) | |
| (31,999 | ) | |
| (208,879 | ) |
Interest expense, net | |
| (285,892 | ) | |
| (338,571 | ) | |
| (908,141 | ) | |
| (1,012,249 | ) |
Other income (expense) | |
| (293,373 | ) | |
| (106,582 | ) | |
| 10,661,388 | | |
| (2,761,411 | ) |
| |
| | | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | |
Provision for income taxes | |
| - | | |
| - | | |
| - | | |
| - | |
| |
| | | |
| | | |
| | | |
| | |
Net Income (Loss) | |
$ | (766,170 | ) | |
$ | (603,360 | ) | |
$ | 8,527,992 | | |
$ | (5,542,700 | ) |
| |
| | | |
| | | |
| | | |
| | |
Basic Income (Loss) per share | |
$ | (0.002 | ) | |
$ | (0.00 | ) | |
$ | 0.03 | | |
$ | (0.05 | ) |
Diluted Loss per share | |
$ | (0.00 | ) | |
$ | (0.00 | ) | |
$ | (0.00 | ) | |
$ | (0.05 | ) |
Weighted average common share outstanding: | |
| | | |
| | | |
| | | |
| | |
Basic | |
| 298,391,943 | | |
| 153,599,760 | | |
| 276,355,156 | | |
| 122,537,266 | |
Diluted | |
| 1,350,805,130 | | |
| 153,599,760 | | |
| 1,350,768,342 | | |
| 122,537,266 | |
See
accompanying summary of accounting policies and notes to unaudited condensed consolidated financial statements.
Endonovo
Therapeutics, Inc.
Condensed
Consolidated Statements of Cash Flows
(Unaudited)
| |
| | |
| |
| |
Nine Months ended September 30, | |
| |
2023 | | |
2022 | |
Operating activities: | |
| | | |
| | |
Net Income (Loss) | |
$ | 8,527,992 | | |
$ | (5,542,700 | ) |
Adjustments to reconcile net income (loss) to cash used in operating activities: | |
| | | |
| | |
Amortization expense | |
| 485,185 | | |
| 485,184 | |
Stock compensation expense | |
| 200,966 | | |
| - | |
Fair value of equity issued for services | |
| 720,562 | | |
| 1,281,900 | |
Loss (gain) on extinguishment of debt | |
| (156,062 | ) | |
| (362,894 | ) |
Amortization of note discount and original issue discount | |
| 12,002 | | |
| 90,427 | |
Change in fair value of derivative liability | |
| (11,445,466 | ) | |
| 1,903,177 | |
Changes in assets and liabilities: | |
| | | |
| | |
Prepaid expenses and other current assets | |
| 9,052 | | |
| 7,975 | |
Account payable and accrued liabilities (related and unrelated parties) | |
| 49,534 | | |
| 297,250 | |
Accrued interest | |
| 908,141 | | |
| 921,822 | |
Deferred compensation | |
| 283,731 | | |
| 464,562 | |
Net cash used in operating activities | |
| (404,363 | ) | |
| (453,297 | ) |
| |
| | | |
| | |
Financing activities: | |
| | | |
| | |
Proceeds from the issuance of notes payable | |
| 195,000 | | |
| 400,000 | |
Repayments on former related party of notes payable | |
| (7,500 | ) | |
| (9,500 | ) |
Repayments of convertible debt in cash | |
| (40,000 | ) | |
| - | |
Proceeds from issuance of common stock and units, net | |
| 256,765 | | |
| - | |
Net cash provided by financing activities | |
| 404,265 | | |
| 390,500 | |
| |
| | | |
| | |
Net increase (decrease) in cash | |
| (98 | ) | |
| (62,797 | ) |
Cash, beginning of year | |
| 98 | | |
| 85,936 | |
Cash, end of period | |
$ | 0 | | |
$ | 23,139 | |
| |
| | | |
| | |
Supplemental disclosure of cash flow information: | |
| | | |
| | |
Cash paid for interest | |
$ | - | | |
$ | - | |
Cash paid for income taxes | |
$ | - | | |
$ | - | |
| |
| | | |
| | |
Non-Cash Investing and Financing Activities: | |
| | | |
| | |
Conversion of notes payable and accrued interest to common stock | |
$ | 109,000 | | |
$ | 339,000 | |
Conversion of Preferred C Stock to common stock | |
$ | 500 | | |
$ | - | |
Issuance of common stock to settle debt | |
$ | 45,000 | | |
$ | - | |
Debt discount from issuance of debt | |
$ | 32,875 | | |
$ | 44,098 | |
Conversion of notes to common stock pursuant to settlement agreement | |
$ | 159,419 | | |
$ | - | |
See
accompanying summary of accounting policies and notes to unaudited condensed consolidated financial statements.
Endonovo
Therapeutics, Inc.
Condensed
Consolidated Statement of Shareholders’ Deficit
(Unaudited)
For
three and nine months ended September 30, 2023
| |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
| |
Series
AA Preferred Stock | | |
Series
B Convertible Preferred Stock | | |
Series
C Convertible Preferred Stock | | |
Series
D Convertible Preferred Stock | | |
Common
Stock | | |
Additional
Paid-in | | |
Subscription | | |
Accumulated | | |
Total
Shareholder’s | |
| |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Capital | | |
Receivable | | |
Deficit | | |
Deficit | |
Balance
December 31, 2022 | |
| 25,000 | | |
$ | 25 | | |
| 600 | | |
$ | 1 | | |
| 738 | | |
$ | - | | |
| 50 | | |
$ | - | | |
| 213,227,538 | | |
$ | 21,322 | | |
$ | 42,919,086 | | |
$ | (1,570 | ) | |
$ | (75,119,183 | ) | |
$ | (32,180,319 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Shares
issued for conversion of notes payable and accrued interest | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 10,900,000 | | |
| 1,090 | | |
| 107,910 | | |
| - | | |
| - | | |
| 109,000 | |
Shares
issued pursuant to make good provision | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| 1,507,277 | | |
| 151 | | |
| 24,719 | | |
| | | |
| | | |
| 24,870 | |
Shares
issued for settlement of debt | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 4,300,590 | | |
| 430 | | |
| 66,659 | | |
| - | | |
| - | | |
| 67,089 | |
Issuance
of common shares for services | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 12,850,000 | | |
| 1,285 | | |
| 171,665 | | |
| - | | |
| - | | |
| 172,950 | |
Common
stock issued for cash, net of fees | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 22,500,000 | | |
| 2,250 | | |
| 204,750 | | |
| - | | |
| - | | |
| 207,000 | |
Shares
issued for conversion of Preferred Series D to common shares | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (50 | ) | |
| - | | |
| 5,000,000 | | |
| 500 | | |
| (500 | ) | |
| - | | |
| - | | |
| - | |
Inducement
loss related to conversion of preferred stock | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 39,398 | | |
| - | | |
| (39,398 | ) | |
| - | |
Net
income | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| | | |
| - | | |
| 7,230,502 | | |
| 7,230,502 | |
Balance
March 31, 2023 | |
| 25,000 | | |
$ | 25 | | |
| 600 | | |
$ | 1 | | |
| 738 | | |
$ | - | | |
| - | | |
$ | - | | |
| 270,285,405 | | |
$ | 27,028 | | |
$ | 43,533,687 | | |
$ | (1,570 | ) | |
$ | (67,928,079 | ) | |
$ | (24,368,908 | ) |
Shares
issued for conversion of deferred compensation | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 1,667,000 | | |
| 167 | | |
| 24,171 | | |
| - | | |
| - | | |
| 24,338 | |
Issuance
of commitment shares in connection with promissory notes | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 850,000 | | |
| 85 | | |
| 11,040 | | |
| - | | |
| - | | |
| 11,125 | |
Stock-based
compensation | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 6,025 | | |
| - | | |
| - | | |
| 6,025 | |
Common
Shares issued for services | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 1,000,000 | | |
| 100 | | |
| 15,900 | | |
| - | | |
| - | | |
|
16,000 | |
Common
stock issued for cash, net of fees | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 5,000,000 | | |
| 500 | | |
| 45,500 | | |
| - | | |
| - | | |
| 46,000 | |
Net
Income | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 2,063,660 | | |
| 2,063,660 | |
Balance
June 30, 2023 | |
| 25,000 | | |
$ | 25 | | |
| 600 | | |
$ | 1 | | |
| 738 | | |
$ | - | | |
| - | | |
$ | - | | |
| 289,152,405 | | |
$ | 27,940 | | |
$ | 43,644,063 | | |
$ | (1,570 | ) | |
$ | (66,082,348 | ) | |
$ | (22,411,889 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Shares
issued for conversion of deferred compensation | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Issuance
of commitment shares in connection with promissory notes | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 2,000,000 | | |
| 25 | | |
| 3,225 | | |
| - | | |
| - | | |
| 3,250 | |
Stock-based
compensation | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 350,000 | | |
| 35 | | |
| 4,515 | | |
| - | | |
| - | | |
| 4,550 | |
Common
Shares issued for services | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 8,000,000 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Common
stock issued for cash, net of fees | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Net
Income | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (766,170 | ) | |
| (766,170 | ) |
Balance
September 30, 2023 | |
| 25,000 | | |
$ | 25 | | |
| 600 | | |
$ | 1 | | |
| 738 | | |
$ | - | | |
| - | | |
$ | - | | |
| 289,152,405 | | |
$ | 27,940 | | |
$ | 43,644,063 | | |
$ | (1,570 | ) | |
$ | (66,630,590 | ) | |
$ | (22,960,131 | ) |
For three and nine months ended September
30, 2022
| |
Series
AA Preferred Stock | | |
Series
B Convertible Preferred Stock | | |
Series
C Convertible Preferred Stock | | |
Series
D Convertible Preferred Stock | | |
Common
Stock | | |
Additional Paid-in | | |
Subscription | | |
Accumulated | | |
Total Shareholder’s | |
| |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Capital | | |
Receivable | | |
Deficit | | |
Deficit | |
Balance December 31, 2021 | |
| 25,000 | | |
$ | 25 | | |
| 600 | | |
$ | 1 | | |
| 738 | | |
$ | - | | |
| 305 | | |
$ | - | | |
| 74,498,760 | | |
$ | 7,449 | | |
$ | 40,663,187 | | |
$ | (1,570 | ) | |
$ | (56,443,416 | ) | |
$ | (15,774,324 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Shares issued for conversion of notes payable and accrued interest | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 3,700,000 | | |
| 370 | | |
| 88,430 | | |
| - | | |
| - | | |
| 88,800 | |
Common stock issued for settlement of debt | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| 2,428,777 | | |
| 243 | | |
| 45,904 | | |
| | | |
| | | |
| 46,147 | |
Issuance of commitment shares in connection with promissory note | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 700,000 | | |
| 70 | | |
| 15,680 | | |
| - | | |
| - | | |
| 15,750 | |
Net loss for the quarter ended March 31, 2022 | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| | | |
| - | | |
| (2,413,209 | ) | |
| (2,413,209 | ) |
Balance March 31, 2022 | |
| 25,000 | | |
$ | 25 | | |
| 600 | | |
$ | 1 | | |
| 738 | | |
$ | - | | |
| 305 | | |
$ | - | | |
| 81,327,538 | | |
$ | 8,132 | | |
$ | 40,813,201 | | |
$ | (1,570 | ) | |
$ | (58,856,625 | ) | |
$ | (18,036,836 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Shares issued for conversion of notes payable and accrued interest | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 6,500,000 | | |
| 650 | | |
| 114,550 | | |
| - | | |
| - | | |
| 115,200 | |
Issuance of commitment shares in connection with promissory note | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 350,000 | | |
| 35 | | |
| 5,698 | | |
| - | | |
| - | | |
| 5,733 | |
Common Shares issued for services | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 62,250,000 | | |
| 6,225 | | |
| 1,275,675 | | |
| - | | |
| - | | |
| 1,281,900 | |
Net loss | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (2,526,131 | ) | |
| (2,526,131 | ) |
Balance June 30, 2022 | |
| 25,000 | | |
$ | 25 | | |
| 600 | | |
$ | 1 | | |
| 738 | | |
$ | - | | |
| 305 | | |
$ | - | | |
| 150,427,538 | | |
$ | 15,042 | | |
$ | 42,209,124 | | |
$ | (1,570 | ) | |
$ | (61,382,756 | ) | |
$ | (19,160,134 | ) |
Balance | |
| 25,000 | | |
$ | 25 | | |
| 600 | | |
$ | 1 | | |
| 738 | | |
$ | - | | |
| 305 | | |
$ | - | | |
| 150,427,538 | | |
$ | 15,042 | | |
$ | 42,209,124 | | |
$ | (1,570 | ) | |
$ | (61,382,756 | ) | |
$ | (19,160,134 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Issuance of commitment shares in connection with promissory note | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 2,050,000 | | |
| 205 | | |
| 22,410 | | |
| - | | |
| - | | |
| 22,615 | |
Common Shares issued for services | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 6,750,000 | | |
| 675 | | |
| 134,325 | | |
| - | | |
| - | | |
| 135,000 | |
Net loss | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (603,360 | ) | |
| (603,360 | ) |
Net Income (loss) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (603,360 | ) | |
| (603,360 | ) |
Balance September 30, 2022 | |
| 25,000 | | |
$ | 25 | | |
| 600 | | |
$ | 1 | | |
| 738 | | |
$ | - | | |
| 305 | | |
$ | - | | |
| 159,227,538 | | |
$ | 15,922 | | |
$ | 42,365,859 | | |
$ | (1,570 | ) | |
$ | (61,986,116 | ) | |
$ | (19,605,879 | ) |
Balance | |
| 25,000 | | |
$ | 25 | | |
| 600 | | |
$ | 1 | | |
| 738 | | |
$ | - | | |
| 305 | | |
$ | - | | |
| 159,227,538 | | |
$ | 15,922 | | |
$ | 42,365,859 | | |
$ | (1,570 | ) | |
$ | (61,986,116 | ) | |
$ | (19,605,879 | ) |
See
accompanying summary of accounting policies and notes to unaudited condensed consolidated financial statements.
Endonovo
Therapeutics, Inc.
Notes
to Condensed Consolidated Financial Statements
Note
1 - Organization and Nature of Business
Endonovo
Therapeutics, Inc. (Endonovo or the “Company”) is an innovative biotechnology company that has developed a bio-electronic
approach to regenerative medicine. Endonovo is a growth stage company whose stock is publicly traded (OTCQB: ENDV).
The
Company develops, manufactures, and distributes evolutionary medical devices focused on the rapid healing of wounds and reduction of
pain, edema, and inflammation in the human body. The Company’s non-invasive bioelectric medical devices are designed to target
inflammation, cardiovascular diseases, chronic kidney disease, and central nervous system disorders (“CNS” disorders).
The
Company’s non-invasive Electroceutical® therapeutics device, SofPulse®, using pulsed short-wave radiofrequency at 27.12
MHz has been FDA-Cleared and CE Marked for the palliative treatment of soft tissue injuries and post-operative plain and edema, and has
CMS National Coverage for the treatment of chronic wounds. The Company’s current portfolio of pre-clinical stage Electroceutical®
therapeutics devices address chronic kidney disease, liver disease non-alcoholic steatohepatitis (NASH), cardiovascular and peripheral
artery disease (PAD) and ischemic stroke.
Endonovo’s
core mission is to transform the field of medicine by developing safe, wearable, non-invasive bioelectric medical devices that deliver
the Company’s Electroceutical® Therapy. Endonovo’s bioelectric Electroceutical® devices harnesses
bioelectricity to restore key electrochemical processes that initiate anti-inflammatory processes and growth factors in the body
necessary for healing to rapidly occur.
The
Company intends to be structured into two separate divisions:
|
■ |
A
commercial stage developer primarily of non-invasive wearable Electroceuticals® therapeutic devices for pain relief, general
wellness, and wound curatives with many of its products marketed under the SofPulse® brand name. This division will be controlled
by Ira Weisberg, the Company’s President and Chief Commercial Officer. |
|
■ |
M&A
division with a strategy of purchasing profitable companies, which will be managed by the Company’s current Chief Executive
Officer. |
Note
2 – Summary of significant accounting policies.
Basis
of Presentation and Principles of Consolidation
The
accompanying unaudited interim condensed consolidated financial statements have been presented in accordance with accounting principles
generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Article
8 of Regulation S-X. Accordingly, the financial statements do not include all of the information and notes required by GAAP for complete
financial statements. The accompanying consolidated condensed balance sheet as of September 30, 2023, the consolidated statements of
operations for the three and nine months ended September 30, 2023 and 2022, the consolidated statements of cash flows for the nine months
ended September 30, 2023 and 2022, and the consolidated statements of shareholders’ deficit for the three and nine months ended
September 30, 2023 and 2022 are unaudited; however, in the opinion of management such interim consolidated financial statements reflect
all adjustments, consisting solely of normal recurring adjustments, necessary for a fair presentation of the results for the periods
presented. The accompanying financial information should be read in conjunction with the financial statements and the notes thereto in
the Company’s most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission (the “SEC”)
on April 17, 2023. The results of operations for the period presented are not necessarily indicative of the results that might be expected
for future interim periods or for the full year.
Liquidity
and Going Concern
The
Company’s unaudited condensed consolidated financial statements are prepared using GAAP applicable to a going concern, which contemplates
the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing
source of revenues sufficient to cover its operating costs and to continue as a going concern. The ability of the Company to continue
as a going concern is dependent on the Company’s ability to obtain adequate capital to fund operating losses until it becomes profitable.
As
of September 30, 2023, the Company had cash of approximately $0 and a working capital deficiency of approximately $23.1 million. During
the nine months ended September 30, 2023, the Company used approximately $0.4 million of cash in its operation. The Company has incurred
recurring losses resulting in an accumulated deficit of approximately $66.6 million as of September 30, 2023. These conditions raise
substantial doubt as to its ability to continue as going concern within one year from issuance date of these unaudited consolidated financial
statements.
Endonovo
Therapeutics, Inc.
Notes
to Condensed Consolidated Financial Statements (continued)
During
the nine months ended September 30, 2023, the Company has raised $0.5 million in equity and debt financings. The Company will continue
to raise additional capital through either debt or equity financing to fund its operations. However, there is no assurance that the Company
can raise enough funds or generate sufficient revenues to pay its obligations as they become due, which raises substantial doubt about
our ability to continue as a going concern.
On
September 26, 2022, the Company entered into an asset purchase agreement with a Company, which is engaged in the business of providing
and laying of concrete primarily for residential tract developers, pursuant to which the Company will acquire all of the assets and liabilities
for approximately $25.2 million. The Company intends to raise the consideration through debt and equity financing. Such a transaction
has not yet closed at the report date.
No
adjustments have been made to the carrying value of assets or liabilities as a result of this uncertainty. To reduce the risk of not
being able to continue as a going concern, management is commercializing its FDA cleared and CE marked products and has commenced implementing
its business plan to materialize revenues from potential future license agreements, and or diversifying its business activities with
the potential acquisition of specialty construction company. The Company will continue to raise additional capital through the issuance
of fixed-rate conversion feature promissory notes.
Use
of Estimates
The
preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and
accompanying notes. Critical estimates include the assessment of impairment of finite lived intangibles, the valuation of the derivative
liability, the valuation of warrants and stock options, and the valuation of deferred income tax assets. Management uses its historical
records and knowledge of its business in making these estimates. Actual results could differ from these estimates.
Earnings
(Loss) Per Share
The
Company utilizes Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 260,
“Earnings per Share.” Basic earnings (loss) per share is computed based on the earnings (loss) attributable to common shareholders
divided by the weighted average number of shares outstanding for the period excluding any dilutive effects of options, warrants, unvested
share awards and convertible securities. Diluted earnings (loss) per common share is calculated similar to basic earnings (loss) per
share except that the denominator is increased to include additional common share equivalents available upon exercise of stock option,
warrants, common shares issuable under convertible debt and restricted stock using the treasury stock method. Dilutive common share equivalents
include the dilutive effect of in-the-money share equivalents, which are calculated based on the average share price for each period
using the treasury stock method, excluding any common share equivalents if their effect would be anti-dilutive. In periods in which a
net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation.
Securities that are excluded from the calculation of weighted average dilutive common shares because their inclusion would have been
antidilutive for the nine months ended September 30, 2023, include stock options, warrants, and notes payable.
The
Company has 6,011,750 stock options to purchase an equivalent number of shares of common stock outstanding at September 30, 2023. The
Company has 263,070 options and 2,000 warrants to purchase common stock outstanding at September 30, 2022.
The
components of basic and diluted income (loss) per share for the nine months ended September 30, 2023 and 2022 were as follows:
Schedule
of Earnings Per Share Basic and Diluted
| |
2023 | | |
2022 | |
| |
Nine months ended September 30, | |
| |
2023 | | |
2022 | |
Numerator: | |
| | |
| |
Net income (loss) attributable to common shareholders | |
$ | 8,857,992 | | |
$ | (5,542,700 | ) |
| |
| | | |
| | |
Effect of dilutive securities | |
| | | |
| | |
Convertible notes | |
| (10,823,217 | ) | |
| - | |
Net loss for diluted earnings per share | |
$ | (2,295,225 | ) | |
$ | (5,542,700 | ) |
Denominator: | |
| | | |
| | |
Weighted-average number of common shares outstanding during the period | |
| 276,355,156 | | |
| 55,303,026 | |
Dilutive effect of convertible notes payable | |
| 1,074,413,187 | | |
| - | |
Common stock and common stock equivalents used for diluted loss per share | |
| 1,350,768,342 | | |
| 55,303,026 | |
The
components of basic and diluted income (loss) per share for the three months ended September 30, 2023 and 2022 were as follows:
| |
2023 | | |
2022 | |
| |
Three months ended September 30, | |
| |
2023 | | |
2022 | |
Numerator: | |
| | |
| |
Net income (loss) attributable to common shareholders | |
$ | (766,170 | ) | |
$ | (603,360 | ) |
| |
| | | |
| | |
Effect of dilutive securities | |
| | | |
| | |
Convertible notes | |
| 285,892 | | |
| - | |
Net loss for diluted earnings per share | |
$ | (480,278 | ) | |
$ | (603,360 | ) |
Denominator: | |
| | | |
| | |
Weighted-average number of common shares outstanding during the period | |
| 298,391,943 | | |
| 153,599,760 | |
Dilutive effect of convertible notes payable | |
| 1,074,413,187 | | |
| - | |
Common stock and common stock equivalents used for diluted loss per share | |
| 1,372,805,130 | | |
| 153,599,760 | |
Accounts
Receivable
The
Company uses the specific identification method for recording the provision for doubtful accounts, which was $0 as of September 30, 2023
and December 31, 2022. Account receivables are written off when all collection attempts have failed.
Endonovo
Therapeutics, Inc.
Notes
to Condensed Consolidated Financial Statements (continued)
Newly
Adopted Accounting Principles
The
Company has evaluated all the recent accounting pronouncements and determined that there are no other accounting pronouncements that
will have a material effect on the Company’s consolidated financial statements.
Note
3 - Revenue Recognition
Contracts
with Customers
The
Company adopted ASC 606, Revenue from Contracts with Customers effective January 1, 2019, using the modified retrospective method
applied to those contracts which were not substantially completed as of January 1, 2019. These standards provide guidance on recognizing
revenue, including a five-step model to determine when revenue recognition is appropriate. The standard requires that an entity recognize
revenue to depict the transfer of control of promised goods or services to customers in an amount that reflects the consideration to
which the entity expects to be entitled in exchange for those goods or services.
The
Company routinely plans on entering into contracts with customers that include general commercial terms and conditions, notification
requirements for price increases, shipping terms and in most cases prices for the products and services that we offer. The Company’s
performance obligations are established when a customer submits a purchase order notification (in writing, electronically or verbally)
for goods and services, and we accept the order. The Company identified performance obligations as the delivery of the requested product
or service in appropriate quantities and to the location specified in the customer’s contract and/or purchase order. The Company
generally recognize revenue upon the satisfaction of these criteria when control of the product or service has been transferred to the
customer at which time, the Company has an unconditional right to receive payment. The Company’s sales and sale prices are final,
and our prices are not affected by contingent events that could impact the transaction price.
Revenues
for our SofPulse® product is typically recognized at the time the product is shipped, at which time the title passes to the customer,
and there are no further performance obligations. Royalty/licensing revenue is also recognized at one point in time, when the units are
shipped.
In
connection with offering products and services provided to the end user by third-party vendors, the Company reviews the relationship
between us, the vendor, and the end user to assess whether revenue should be reported on a gross or net basis. In asserting whether revenue
should be reported on a gross or net basis, the Company considers whether the Company acts as a principal in the transaction and control
the goods and services used to fulfill the performance obligation(s) associated with the transaction.
Endonovo
Therapeutics, Inc.
Notes
to Condensed Consolidated Financial Statements (continued)
Sources
of Revenue
The
Company has identified the following revenues by revenue source:
1. |
Sales
to plastic surgeons |
2. |
Sales
to wound care facilities |
3. |
Sales
to hospital |
4. |
Sales
to other physicians |
5. |
Royalty
fee from licensing, net |
For
the three and nine months ended September 30, 2023 and 2022, the sources of revenue were as follows:
Schedule
of Source of Revenue
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| |
Three Months Ended
September 30, | | |
Nine Months Ended September 30, | |
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| |
| | |
| | |
| | |
| |
Royalty/licensing, net | |
$ | - | | |
$ | - | | |
$ | 126,520 | | |
$ | - | |
Direct sales- medical care providers, gross | |
| 1,520 | | |
| 10,960 | | |
| 7,740 | | |
| 13,892 | |
Total sources of revenue | |
$ | 1,520 | | |
$ | 10,960 | | |
$ | 134,260 | | |
$ | 13,892 | |
The
royalty/licensing revenue recognized in the nine months ended September 30, 2023, resulted from specific transactions. No general patent
rights were assigned to the distributor. The royalty / licensing revenue is recorded on a net basis as the Company was not considered
the principal but an agent for accounting purposes. The royalty / licensing revenue, net includes an ongoing contract with a customer
that has a total gross sales value of $300,000, for which the Company recognized net revenue of $126,520 based on 1,000 units delivered
during the period ended September 30, 2023. The royalty/licensing revenue is recognized when the customer picks up the units from the
Company’s vendor.
On
January 25, 2023, the Company entered into a sales support services agreement with Pulse Therapeutic Technology (“PTT”),
an entity controlled by a former related party, under which PTT has been selling SofPulse® on a nonexclusive basis. Pursuant to such
agreement, the deferred compensation owed to this former related party has been fully extinguished for a total amount of approximately
$118,000.
Warranty
Our
general product warranties do not extend beyond an assurance that the product delivered will be consistent with stated specifications
and do not include separate performance obligations.
Significant
Judgments in the Application of the Guidance in ASC 606
There
are no significant judgments associated with the satisfaction of our performance obligations. We generally satisfy performance obligations
upon shipment of the product to the customer. This is consistent with the time in which the customer obtains control of the products.
Performance obligations are also generally settled quickly after the purchase order acceptance, therefore the value of unsatisfied performance
obligations at the end of any reporting period is generally immaterial.
We
consider variable consideration in establishing the transaction price. Forms of variable consideration applicable to our arrangements
include sales returns, rebates, volume-based bonuses, and prompt pay discounts. We use historical information along with an analysis
of the expected value to properly calculate and to consider the need to constrain estimates of variable consideration. Such amounts are
included as a reduction to revenue from the sale of products in the periods in which the related revenue is recognized and adjusted in
future periods as necessary.
Practical
Expedients
Our
payment terms for sales direct to distributors are substantially less than the one-year collection period that falls within the practical
expedient in determination of whether a significant financing component exists.
Endonovo
Therapeutics, Inc.
Notes
to Condensed Consolidated Financial Statements (continued)
Note
4 – Patents.
In
December 2017, we acquired from Rio Grande Neurosciences, Inc. (RGN) a patent portfolio for $4,500,000. The earliest patents expire in
2024. The following is a summary of patents less accumulated amortization at September 30, 2023 and December 31, 2022:
Schedule
of Patents
|
|
September
30, 2023 |
|
|
December
31, 2022 |
|
|
|
|
|
|
|
|
Patents |
|
$ |
4,500,000 |
|
|
$ |
4,500,000 |
|
|
|
|
|
|
|
|
|
|
Less
accumulated amortization |
|
|
3,719,740 |
|
|
|
3,234,556 |
|
|
|
|
|
|
|
|
|
|
Patents,
net |
|
$ |
780,260 |
|
|
$ |
1,265,444 |
|
Amortization
expense associated with patents was $485,184 for the nine months ended September 30, 2023.
The
estimated future amortization expense related to patents as of September 30, 2023, is as follows:
Schedule
of Estimated Future Amortization Expense
Twelve Months Ending September 30, | |
Amount | |
| |
| |
2024 | |
$ | 646,192 | |
2025 | |
| 134,068 | |
| |
| | |
Total | |
$ | 780,260 | |
Note
5- Notes Payable
As
of September 30, 2023, and December 31, 2022, the notes payable activity was as follows:
Schedule
of Notes Payable
| |
September 30, 2023 | | |
December 31, 2022 | |
| |
| | |
| |
Notes payable at beginning of period | |
$ | 7,163,832 | | |
$ | 7,256,930 | |
Notes payable issued | |
| 195,000 | | |
| 465,000 | |
Repayments of notes payable in cash | |
| (40,000 | ) | |
| (14,000 | ) |
Settlement on note payable | |
| (133,650 | ) | |
| (163,826 | ) |
Less amounts converted to stock | |
| (100,000 | ) | |
| (380,272 | ) |
Notes payable at end of period | |
| 7,085,182 | | |
| 7,163,832 | |
Less debt discount | |
| (28,210 | ) | |
| (10,587 | ) |
Note payable, net | |
$ | 7,056,972 | | |
$ | 7,153,245 | |
| |
| | | |
| | |
Notes payable issued to a former related party | |
$ | 104,600 | | |
$ | 112,100 | |
Notes payable issued to non-related parties | |
$ | 6,952,372 | | |
$ | 7,041,145 | |
The
maturity dates on the notes-payable are as follows:
Schedule of Maturity Dates of Notes Payable
| |
Notes
to | | |
| |
12 months ending, | |
Former related party | | |
Non-related parties | | |
Total | |
| |
| | |
| | |
| |
Past due | |
$ | 104,600 | | |
$ | 6,770,582 | | |
$ | 6,875,182 | |
September 30, 2024 | |
| - | | |
| 210,000 | | |
| 210,000 | |
| |
$ | 104,600 | | |
$ | 6,948,082 | | |
$ | 7,085,182 | |
Activity
for the nine months ended September 30, 2023
Fixed
rate notes
During
the nine months ended September 30, 2023, the Company converted $100,000 in principal and $9,000 in accrued interest into 10,900,000
shares of common stock.
During
the nine months ended September 30, 2023, the Company executed an amendment or allonges to three fixed rate notes to extend the maturity
date in exchange for $20,000 payment to the current balance of one note and an aggregate of 1,000,000 shares of common stock to two noteholders
as of September 30, 2023, and $2,500 in extension fee payable at the revised maturity date.
During
the nine months ended September 30, 2023, the Company issued five fixed-rate notes for an aggregate amount of $195,000, which carry interest
between 10% and 15% and with maturity ranging between one to nine (1 to 9) months from issuance.
Endonovo
Therapeutics, Inc.
Notes
to Condensed Consolidated Financial Statements (continued)
As
of September 30, 2023, the Company has a total of twenty-four (24) fixed-rate notes, of which eighteen (18) have a make good provision
for a total principal of $1,440,000 and approximately $338,403 in accrued interest. Balance of fixed-rate notes was $1,849,728 and $1,819,728
as of September 30, 2023, and December 31, 2022, respectively. Accrued interest on fixed-rate notes was approximately $429,500 and $310,960
as of September 30, 2023, and December 31, 2023, respectively.
Such
provision will require the Company to issue additional shares to ensure that the investor can realize a profit of 15% or 18% reselling
the conversion shares. The value of the make good provision was approximately $250,000 as of September 30, 2023 and is reported under
Accounts payable and accrued liabilities in the condensed consolidated balance sheet as of June 30, 2023. In addition, certain fixed-rate
notes include a prepayment provision, which entitles the holder to a 15% cash premium. The Company concluded that such provision was
not deemed material and probable as of September 30, 2023.
Variable-rate
notes
During
the nine months ended September 30, 2023, the Company executed a settlement agreement with one investor to extinguish the remaining principal
balance of a promissory note into 4,300,590 shares of common stock, which resulted in a gain from debt extinguishment of approximately
$77,000.
Fixed
Rate note (former related party)
Notes
payable to a former related party in the aggregate amount of $104,600 were outstanding at September 30, 2023, which are past maturity
date. The notes bear interest between 10% and 12% per annum. During the nine months ended September 30, 2023, the Company repaid $7,500
in principal amount to this former related party. Refer to Note 7- Related Party Transactions.
Activity
for the nine months ended September 30, 2022
Fixed
rates Notes
During
the nine months ended September 30, 2022, the Company issued five (5) fixed rate promissory notes totaling $400,000 for funding of $400,000
with original terms of nine months and interest rates of 15% and 18%. The holder of the promissory note can convert the outstanding unpaid
principal and accrued interest at a fixed conversion rate, subject to standard anti-dilution features, six-month after issuance date.
As
of September 30, 2022, the Company has eighteen (18) fixed-rate promissory notes with an outstanding balance of $1,920,900, of which
$1,045,900 are past maturity. As of September 30, 2022, the Company has a total of fourteen (14) fixed rate notes for total principal
amount of $1,400,000 includes a make good shares provision. Such provision will require the Company to issue additional shares to ensure
that the investor can realize a profit of 15% or 18% reselling the conversion shares. The Company accrued approximately $209,000 related
to the make-good provision as the amount is probable and can be reasonably estimated pursuant to ASC 450 Contingencies. Such amount was
presented as other expense in the condensed consolidated statements of operations.
During
the nine months ended September 30, 2022, the Company converted $124,900 in accrued interest and $214,100 in principal balance into 16,950,000
shares of common stock.
Certain
fixed-rate notes include a prepayment provision, which entitles the holder to a 15% or 18% premium upon cash redemption by the Company.
The prepayment penalty approximates $243,000 as of September 30, 2022, but the Company determined that such liability is not probable
as of September 30, 2022, pursuant to ASC 450 Contingencies.
Variable-rate
notes
The
gross amount of all convertible notes with variable conversion rates outstanding as of September 30, 2022, is $4,607,100, which are all
past maturity. There has been no conversion of notes into the Company’s common stock during the three and nine months ended September
30, 2022.
Endonovo
Therapeutics, Inc.
Notes
to Condensed Consolidated Financial Statements (continued)
Note
6 - Shareholders’ Deficit
Preferred
Stock
The
Company has authorized 5,000,000 shares of preferred stock which have been designated as follows:
Schedule of Preferred Stock
| |
Number of Shares Authorized | | |
Number of Shares Outstanding at September 30, 2023 | | |
Par Value | | |
Liquidation Value | |
Series AA | |
| 1,000,000 | | |
| 25,000 | | |
$ | 0.0010 | | |
$ | - | |
Preferred Series B | |
| 50,000 | | |
| 600 | | |
$ | 0.0001 | | |
$ | 100 | |
Preferred Series C | |
| 8,000 | | |
| 738 | | |
$ | 0.0001 | | |
$ | 1,000 | |
Preferred Series D | |
| 20,000 | | |
| - | | |
$ | 0.0001 | | |
$ | 1,000 | |
Undesignated | |
| 3,922,000 | | |
| - | | |
| - | | |
| - | |
Series
AA Preferred Shares
On
February 22, 2013, the Board of Directors of the Company authorized an amendment to the Company’s Articles of Incorporation, as
amended (the “Articles of Incorporation”), in the form of a Certificate of Designation that authorized the issuance of up
to one million (1,000,000) shares of a new series of preferred stock, par value $0.001 per share, designated “Series AA Super Voting
Preferred Stock,” for which the board of director established the rights, preferences and limitations thereof.
Each
holder of outstanding shares of Series AA Super Voting Preferred Stock shall be entitled to one hundred thousand (100,000) votes for
each share of Series AA Super Voting Preferred Stock held on the record date for the determination of stockholders entitled to vote at
each meeting of stockholders of the Company. The Series AA Super Voting Preferred Stockholders will receive no dividends nor any value
on liquidation.
There
was no activity during the nine months ended September 30, 2023. There were 25,000 shares of Series AA Preferred stock outstanding as
of September 30, 2023 and December 31, 2022.
Series
B Convertible Preferred Stock
On
February 7, 2017, the Company filed a certificate of designation for 50,000 shares of Series B Convertible Preferred Stock designated
as Series B (“Series B”) which are authorized and convertible, at the option of the holder, commencing six months from the
date of issuance into common shares and warrants. For each share of Series B, the holder, on conversion, shall receive the stated value
divided by 75% of the market price on the date of purchase of Series B and a three-year warrant exercisable into up to a like amount
of common shares with an exercise price of 150% of the market price as defined in the Certificate of Designation. Dividends shall be
paid only if dividends on the Company’s issued and outstanding Common Stock are paid, and the amount paid to the Series B holder
will be as though the conversion shares had been issued. Series B holders have no voting rights. Upon liquidation, the holder of Series
B, shall be entitled to receive an amount equal to the stated value, $100 per share, plus any accrued and unpaid dividends thereon before
any distribution is made to Series C Secured Redeemable Preferred Stock or common stockholders.
There
was no activity during the nine months ended September 30, 2023. There were 600 shares of Series B outstanding as of September 30, 2023
and December 31, 2022.
Endonovo
Therapeutics, Inc.
Notes
to Condensed Consolidated Financial Statements (continued)
Series
C Convertible Redeemable Preferred Stock
On
December 22, 2017, the Company filed a certificate of designation for 8,000 shares of Series C Secured Redeemable Preferred Stock (“Series
C”). Each share of the C Preferred is entitled to receive a $20 quarterly dividend commencing March 31, 2018, and each quarter
thereafter and is to be redeemed for the stated value, $1,000 per share, plus accrued dividends in cash (i) at the Company’s option,
commencing one year from issuance and (ii) mandatorily as of December 31, 2019. Management determined that the Series C should be classified
as liability per the guidance in ASC 480 Distinguishing Liabilities from Equity as of December 31, 2019. On January 29, 2020, the Company
filed the amended and restated certificate of designation fort its Series C Secured Redeemable Preferred Stock. The amendment changed
the rights of the Series C by (a) removing the requirement to redeem the Series C, (b) removing the obligation to pay dividends on the
Series C, (c) Allowing the holders of shares of Series C to convert the stated value of their shares into common stock of the Company
at 75% of the closing price of such common stock on the day prior to the conversion. The C Preferred does not have any rights to vote
with the common stock.
Upon
liquidation, the holder of Series C, shall be entitled to receive an amount equal to the stated value, $1,000 per share, plus any accrued
and unpaid dividends thereon before any distribution is made to common stockholders but after distributions are made to holders of Series
B.
There
was no activity during the nine months ended September 30, 2023. There were 738 shares of Series C outstanding, as of September 30, 2023
and December 31, 2022
Series
D Convertible Preferred Stock
On
November 11, 2019, the Company filed a certificate of designation for 20,000 shares of Series D Convertible Preferred Stock designated
as Series D (“Series D”), which are authorized and convertible, at the option of the holder, at any time from the date of
issuance, into shares of common shares. On or prior to August 1, 2020, for each share of Series D, the holder, on conversion, shall receive
a number of common shares equal to 0.01% of the Company’s issued and outstanding shares on conversion date and for conversion on
or after August 2, 2020, the holder shall receive conversion shares as though the conversion date was August 1, 2020, with no further
adjustments for issuances by the Company of common stock after August 1, 2020, except for stock split or reverse stock splits of the
common stock. Management classified the Series D in permanent equity as of June 30, 2023.
The
Series D holders have no voting rights. Upon liquidation, the holder of Series D, shall be entitled to receive an amount equal to the
stated value, $1,000 per share, plus any accrued and unpaid dividends thereon before any distribution is made to common stockholders.
During
the six months ended June 30, 2023, the Company issued 5,000,000 shares of common stock upon conversion of the remaining 50 shares of
Series D preferred stock. The Company is also committed to providing additional shares of common stock if the holders of Series D do
not realize a 15% profit on the resale of the conversion shares. As of June 30, 2023, and December 31, 2022, there were 0 and 50 shares
of Series D outstanding, respectively.
Common
Stock
Activity
during the nine months ended September 30, 2023
During
the nine months ended September 30, 2023, the Company issued 10,900,000 shares of common stock for the conversion of $109,000 of principal
accrued interest from one note holder.
During
the nine months ended September 30, 2023, the Company issued 1,507,277 shares of common stock pursuant to a make-good provision, which
resulted in a loss on debt extinguishment of $24,870.
During
the nine months ended September 30, 2023, the Company issued 4,300,590 shares of common stock pursuant to a debt settlement of aggregate
principal of $113,650, resulting in a gain on debt extinguishment of approximately $77,000.
During
the nine months ended September 30, 2023, the Company issued 1,667,000 shares of common stock pursuant to a deferred compensation settlement
with a fair value of $24,338.
During
the nine months ended September 30, 2023, the Company issued 5,967,590 shares of common stock pursuant to a debt settlement.
During
the nine months ended September 30, 2023, the Company issued 43,800,000 shares of common stock for services for a total fair value of
$720,562
During
the nine months ended September 30, 2023, the Company issued 5,000,000 shares of common stock in exchange for 50 shares of Series D Preferred,
which resulted in an inducement loss of $39,398 recorded as a deemed dividend in the shareholders’ deficit as of September 30,
2023.
During
the nine months ended September 30, 2023, the Company issued 5 1/2 units or the equivalent of 27,500,000 shares of common stock pursuant
to a private placement for total net cash receipt of $253,000.
During
the nine months ended September 30, 2023, the Company issued 1,850,000 commitment shares pursuant to executed securities purchase agreements
with an estimated fair value of $25,625.
During the nine months ended September 30, 2023, the Company issued 1,000,000 shares for note extension and pursuant
to executed allonges with an estimated fair value of $11,125.
Activity
during the nine months ended September 30, 2022
During
the nine months ended September 30, 2022, the Company issued 16,950,000 shares of common stock for the conversion of $214,100 of principal
notes and accrued interest in the amount of $124,900.
During
the nine months ended September 30, 2022, the Company issued 2,428,777 shares of common stock pursuant to a make-whole provision from
an April 2021 debt settlement with one investor.
During
the nine months ended September 30, 2022, the Company issued 3,100,000 shares of common stock as commitment shares in connection with
promissory notes.
During
the nine months ended September 30, 2022, the Company issued 62,250,000 shares of common stock for services for total fair value of $1,281,900.
Endonovo
Therapeutics, Inc.
Notes
to Condensed Consolidated Financial Statements (continued)
Stock
Options
The
balance of all stock options outstanding as of September 30, 2023, is as follows:
Schedule
of Stock Options Outstanding
| |
| | |
Weighted Average | | |
Weighted Average Remaining | | |
Aggregate | |
| |
| | |
Exercise Price | | |
Contractual | | |
Intrinsic | |
| |
Options | | |
Per Share | | |
Term (years) | | |
Value | |
Outstanding at December 31, 2022 | |
| 3,012,410 | | |
$ | 0.22 | | |
| 3.40 | | |
| 31,200 | |
Granted | |
| 3,000,000 | | |
$ | 0.01 | | |
| - | | |
| | |
Cancelled | |
| (660 | ) | |
$ | 11.60 | | |
| - | | |
| | |
Exercised | |
| - | | |
$ | - | | |
| - | | |
| | |
Outstanding at September 30, 2023 | |
| 6,011,750 | | |
$ | 0.12 | | |
| 3.06 | | |
$ | - | |
| |
| | | |
| | | |
| | | |
| | |
Exercisable at September 30, 2023 | |
| 1,011,750 | | |
$ | 0.64 | | |
| 1.83 | | |
$ | - | |
Share-based
compensation expenses for the nine months ended September 30, 2023 and 2022, totaled approximately $6,000 and $0, respectively. The remaining
stock-based compensation to be recognized is approximately $36,000, which will be recognized over 2.5 years.
Warrants
The
balance of all warrants outstanding as of September 30, 2023, is as follows:
Schedule
of Warrants Outstanding
| |
Outstanding Warrants | | |
| |
| |
| | |
Weighted Average | | |
Weighted Average Remaining | |
| |
| | |
Exercise Price | | |
Contractual | |
| |
Shares | | |
Per Share | | |
Term (years) | |
Outstanding at December 31, 2022 | |
| 2,000 | | |
$ | 50.0 | | |
| 0.22 | |
Granted | |
| - | | |
$ | - | | |
| - | |
Cancelled | |
| (2,000 | ) | |
$ | 50.0 | | |
| - | |
Exercised | |
| - | | |
$ | - | | |
| | |
Outstanding at September 30, 2023 | |
| - | | |
$ | - | | |
| - | |
| |
| | | |
| | | |
| | |
Exercisable at September 30, 2023 | |
| - | | |
$ | - | | |
| - | |
Endonovo
Therapeutics, Inc.
Notes
to Condensed Consolidated Financial Statements (continued)
Note
7 – Related Party and former related parties Transactions.
One
executive officer of the Company has agreed to defer a portion of his compensation until cash flow improves. As of September 30, 2023,
the balance of the deferred compensation was $630,568, which reflects $225,000 accrual of deferred compensation and $118,250 of cash
repayment of deferred compensation during the nine months ended September 30, 2023.
As
of September 30, 2023, the Company issued for the issuance of 20,000,000 shares of the Company’s common stock with a fair value
of $282,000. Such balance is reported under accounts payable and accrued liabilities related party in the condensed consolidated balance
sheet as of September 30, 2023.
One
former executive of the Company has agreed to defer a portion of his compensation until cash flow improves. As of September 30, 2023,
the balance of his deferred compensation was $632,257. No activity occurred during the nine months ended September 30, 2023.
From
time-to-time officer of the Company advance monies to the Company to cover costs. The balance of short-term advances due to one officer
of the Company at September 30, 2023, was $5,340 and is included in the Company’s accounts payable and accrued liabilities balance
as of September 30, 2023. During the nine months ended September 30, 2023, the Company’s executive officer advanced an aggregate
amount of $5,215 for corporate expenses, and $2,500 was repaid back as of September 30, 2023.
As
of September 30, 2023, notes payable remained outstanding to the former President of the Company, in the amount of $104,600. As of September
30, 2023, accrued interests on these notes payable totaled approximately $88,045, and are included in accrued expenses on the condensed
consolidated balance sheets.
Note
8 – Fair Value Measurements
The
Company issued Variable Debentures, which contained variable conversion rates based on unknown future prices of the Company’s common
stock. This results in a conversion feature. The Company measures the conversion feature using the Black Scholes option pricing model
using the following assumptions:
Schedule
of Conversion Feature Using Black Scholes Option Pricing Model
| |
| Nine months ended September 30, | |
| |
| 2023 | | |
| 2022 | |
| |
| | | |
| | |
Expected term | |
| 1 month | | |
| 1 month | |
Exercise price | |
$ | 0.0066-$0.0151 | | |
$ | 0.004 – $0.015 | |
Expected volatility | |
| 154%-158 | % | |
| 152%-169 | % |
Expected dividends | |
| None | | |
| None | |
Risk-free interest rate | |
| 4.64%-5.40 | % | |
| 1.63% to 2.80 | % |
Forfeitures | |
| None | | |
| None | |
The
assumptions used in determining fair value represent management’s best estimates, but these estimates involve inherent uncertainties
and the application of management’s judgment. As a result, if factors change, including changes in the market value of the Company’s
common stock, managements’ assessment, or significant fluctuations in the volatility of the trading market for the Company’s
common stock, the Company’s fair value estimates could be materially different in the future.
The
Company computes the fair value of the derivative liability at each reporting period and the change in the fair value is recorded as
non-cash expense or income. The key component in the value of the derivative liability is the Company’s stock price, which is subject
to significant fluctuation and is not under its control. The resulting effect on net income (loss) is therefore subject to significant
fluctuation and will continue to be so until the Company’s variable debentures, which the convertible feature is associated with,
are converted into common stock or paid in full in cash. Assuming all other fair value inputs remain constant, the Company will record
non-cash expense when its stock price increases and non-cash income when its stock price decreases. Company will perform valuation of
derivative liabilities as a part of its 2023 10-K filing.
Endonovo
Therapeutics, Inc.
Notes
to Condensed Consolidated Financial Statements (continued)
The
following table presents changes in the liabilities with significant unobservable inputs (level 3) for the nine months ended September
30, 2023:
Schedule
of Fair Value of Derivative Liability
| |
Derivative | |
| |
Liability | |
Balance December 31, 2022 | |
$ | 17,359,064 | |
| |
| | |
Settlement debt | |
| (10,769 | ) |
Change in estimated fair value | |
| (11,445,466 | ) |
| |
| | |
Balance September 30, 2023 | |
$ | 5,902,829 | |
Accounting
guidance on fair value measurements and disclosures defines fair value, establishes a framework for measuring the fair value of assets
and liabilities using a hierarchy system, and defines required disclosures. It clarifies that fair value is the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the reporting
entity transacts business.
The
Company’s balance sheet contains derivative liabilities that are recorded at fair value on a recurring basis. The three-level valuation
hierarchy for disclosure of fair value is as follows:
Level
1: uses quoted market prices in active markets for identical assets or liabilities.
Level
2: uses observable market-based inputs or unobservable inputs that are corroborated by market data.
Level
3: uses unobservable inputs that are not corroborated by market data.
The
fair value of the Company’s recorded derivative liability is determined based on unobservable inputs that are not corroborated
by market data, which require a Level 3 classification. A Black Scholes option pricing model was used to determine the fair value. The
Company records derivative liability on the condensed consolidated balance sheets at fair value with changes in fair value recorded in
the condensed consolidated statements of operation.
The
following table presents balances in the liabilities with significant unobservable inputs (Level 3) as of September 30, 2023:
Schedule
of Liabilities Significant Unobservable Inputs
| |
Fair Value Measurements Using |
| |
Quoted Prices in | |
| | |
| | |
| |
| |
Active Markets for | |
Significant Other | | |
Significant | | |
| |
| |
Identical Assets | |
Observable Inputs | | |
Unobservable Inputs | | |
| |
| |
(Level 1) | |
(Level 2) | | |
(Level 3) | | |
Total | |
| |
| |
| | |
| | |
| |
As of September 30, 2023 | |
| |
| | | |
| | | |
| | |
Derivative liability | $ |
- | |
$ | - | | |
$ | 5,902,829 | | |
$ | 5,902,829 | |
Total | $ |
- | |
$ | - | | |
$ | 5,902,829 | | |
$ | 5,902,829 | |
Endonovo
Therapeutics, Inc.
Notes
to Condensed Consolidated Financial Statements (continued)
Note
9 – Commitments and Contingencies
Legal
Matters
The
Company is subject to certain legal proceedings, which it considers routine to its business activities. As of September 30, 2023, the
Company believes, after consultation with legal counsel, that the ultimate outcome of such legal proceedings, whether individually or
in the aggregate, is not likely to have a material adverse effect on the Company’s financial position, results of operations or
liquidity.
Note
10 – Concentrations.
Sales
During
the nine months ended September 30, 2023, we had one significant customer, which accounted for approximately 100% of sales. In addition,
the Company generated all of its royalty/licensing revenue from one former related party.
Supplier
We
also have a single source for our bioelectric medical devices, which account for 100% of our sales. The interruption of products provided
by this supplier would adversely affect our business and financial condition unless an alternative source of products could be found.
Note
11 – Subsequent Events
Management
has evaluated events that have occurred subsequent to the date of these consolidated condensed financial statements and has determined
that no such reportable subsequent events exist through the date the financial statements were issued in accordance with FASB ASC Topic
855, “Subsequent Events.”
Item
2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Cautionary
Notice Regarding Forward Looking Statements
The
information contained in Item 2 contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results may materially differ from those projected
in the forward-looking statements as a result of certain risks and uncertainties set forth in this report. Although management believes
that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the
underlying assumptions will, in fact, prove to be correct or that actual results will not be different from expectations expressed in
this report.
This
filing contains a number of forward-looking statements which reflect management’s current views and expectations with respect to
our business, strategies, products, future results and events, and financial performance. All statements made in this filing other than
statements of historical fact, including statements addressing operating performance, events, or developments which management expects
or anticipates will or may occur in the future, including statements related to distributor channels, volume growth, revenues, profitability,
new products, adequacy of funds from operations, statements expressing general optimism about future operating results, and non-historical
information, are forward looking statements. In particular, the words “believe,” “expect,” “intend,”
“anticipate,” “estimate,” “may,” and variations of such words, and similar expressions identify forward-looking
statements, but are not the exclusive means of identifying such statements, and their absence does not mean that the statement is not
forward-looking. These forward-looking statements are subject to certain risks and uncertainties, including those discussed below. Our
actual results, performance or achievements could differ materially from historical results as well as those expressed in, anticipated,
or implied by these forward-looking statements. We do not undertake any obligation to revise these forward-looking statements to reflect
any future events or circumstances.
Readers
should not place undue reliance on these forward-looking statements, which are based on management’s current expectations and projections
about future events, are not guarantees of future performance, are subject to risks, uncertainties and assumptions (including those described
below), and apply only as of the date of this filing. Our actual results, performance or achievements could differ materially from the
results expressed in, or implied by, these forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events, or otherwise.
Overview
Endonovo
Therapeutics, Inc. (Endonovo or the “Company”) is an innovative biotechnology company that has developed a bio-electronic
approach to regenerative medicine. Endonovo is a growth stage company whose stock is publicly traded (OTCQB: ENDV).
The
Company develops, manufactures and distributes evolutionary medical devices focused on the rapid healing of wounds and reduction of pain,
edema and inflammation in the human body. The Company’s non-invasive bioelectric medical devices are designed to target inflammation,
cardiovascular diseases, chronic kidney disease, and central nervous system disorders (“CNS” disorders).
The
Company’s non-invasive Electroceutical® therapeutics device, SofPulse®, using pulsed short-wave radiofrequency at 27.12
MHz has been FDA-Cleared and CE Marked for the palliative treatment of soft tissue injuries and post-operative plain and edema, and has
CMS National Coverage for the treatment of chronic wounds. The Company’s current portfolio of pre-clinical stage Electroceutical®
therapeutics devices address chronic kidney disease, liver disease non-alcoholic steatohepatitis (NASH), cardiovascular and peripheral
artery disease (PAD) and ischemic stroke.
Endonovo’s
core mission is to transform the field of medicine by developing safe, wearable, non-invasive bioelectric medical devices that deliver
the Company’s Electroceutical® Therapy. Endonovo’s bioelectric Electroceutical® devices harnesses
bioelectricity to restore key electrochemical processes that initiate anti-inflammatory processes and growth factors in the body
necessary for healing to rapidly occur.
Going
Concern
Our
independent registered auditors included an explanatory paragraph in their opinion on our consolidated financial statements as of and
for the fiscal year ended December 31, 2022, that states that our ongoing losses and lack of resources cause reasonable doubt about our
ability to continue as a going concern.
Critical
Accounting Policies
A
summary of our significant accounting policies is included in Note 1 of the “Notes to the Consolidated Financial Statements,”
contained in our Form 10-K for the year ended December 31, 2022. Management believes that the consistent application of these policies
enables us to provide users of the financial statements with useful and reliable information about our operating results and financial
condition. The summary condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted
in the U.S., which require us to make estimates and assumptions. We did not experience any significant changes during the nine months
ended September 30, 2023, in any of our critical accounting policies from those contained in our Form 10-K for the year ended December
31, 2022.
New
Accounting Pronouncements
See
Note 1 of Notes to Condensed Consolidated Financial Statements for further discussion of new accounting standards that have been adopted
or are being evaluated for future adoption.
Results
of Operations
Nine
Months ended September 30, 2023, and 2022:
|
|
Nine
Months Ended September 30, |
|
|
Favorable |
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
(Unfavorable) |
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
134,260 |
|
|
$ |
13,892 |
|
|
$ |
120,368 |
|
|
|
866 |
% |
Cost
of revenue |
|
|
4,823 |
|
|
|
5,124 |
|
|
|
301 |
|
|
|
6 |
% |
Gross
profit |
|
|
129,437 |
|
|
|
8,768 |
|
|
|
120,669 |
|
|
|
1,376 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
2,262,833 |
|
|
|
2,790,057 |
|
|
|
527,224 |
|
|
|
19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
from operations |
|
|
(2,133,396 |
) |
|
|
(2,781,289 |
) |
|
|
647,893 |
|
|
|
23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income (expense) |
|
|
10,661,388 |
|
|
|
(2,761,411 |
) |
|
|
13,422,799 |
|
|
|
486 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
$ |
8,527,992 |
|
|
$ |
(5,542,700 |
) |
|
$ |
14,070,692 |
|
|
|
254 |
% |
Revenue
Revenue
of the Company’s SofPulse® product during the nine months ended September 30, 2023, was $134,260, an increase of $120,368, or 44%,
compared to $13,892 for the nine months ended September 30, 2022.
We
anticipate that revenue will increase in future periods as the roll out of the SofPulse® product continues. The Company is looking
to partner with global participants in the medical device market to spur its expansion. The Company expects such investment alternatives
to include partnerships, joint ventures, distribution, and licensing agreements for the PEMF medical technology. The Company is also
looking to expand on current initiatives with the Department of Defense, the Department of Veterans Affairs, and other surgical and pain
management markets.
During
the nine months ended September 30, 2023, the Company also recognized $126,520 in royalty/licensing revenue from a former related party.
Cost
of Revenue
Cost
of revenue during the nine months ended September 30, 2023, was $4,823, a decrease of $301 or 6% compared to $5,124 for the nine months
ended September 30, 2022. Cost of revenue is recognized on those sales recorded as gross for which we are the principal in the transaction
as opposed to net sales which reflect no cost of revenue. It is anticipated that cost of revenue will increase in future quarters as
the roll out of the SofPulse® product continues.
Operating
Expenses
Operating expenses decreased by $527,224 or 19%, to $2,262,833 for
the nine months ended September 30, 2023, compared to $2,790,057 for the nine months ended September 30, 2022. This change was due primarily
due a decrease in stock-based compensation expense by approximately $603,600.
Other
Expense/Income
Other income for the nine months ended September 30, 2023, was $10,661,388
compared to an expense of $2,761,411 for the nine months ended September 30, 2022. This change was due primarily to a decrease in the
fair value of the Company’s derivative liability which generated an income from the change of fair value of $11.4 million as opposed
to an expense of $1.9 million in the comparable period in the previous year.
We
anticipate continued large fluctuations in other income/expense as a result of quarterly re-evaluation of the Company’s derivative
liabilities.
Three
Months ended September 30, 2023, and 2022:
|
|
Three
Months Ended September 30, |
|
|
Favorable |
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
(Unfavorable) |
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
1,520 |
|
|
$ |
10,960 |
|
|
$ |
(9,440 |
) |
|
|
(86) |
% |
Cost
of revenue |
|
|
827 |
|
|
|
4,027 |
|
|
|
3,200 |
|
|
|
79 |
% |
Gross
profit |
|
|
693 |
|
|
|
6,933 |
|
|
|
(6,240 |
) |
|
|
(90) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
473,490 |
|
|
|
503,711 |
|
|
|
30,221 |
|
|
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
from operations |
|
|
(472,797 |
) |
|
|
(496,778 |
) |
|
|
23,981 |
|
|
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income (expense) |
|
|
(293,373 |
) |
|
|
(106,582 |
) |
|
|
(186,791) |
|
|
|
(175 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
gain/loss |
|
$ |
(766,170 |
) |
|
$ |
(603,360 |
) |
|
$ |
162,810 |
|
|
|
27 |
% |
Revenue
Revenue
of the Company’s SofPulse® product during the three months ended September 30, 2023, was $1,520, a decrease of $9,440, or 86%,
compared to $10,960 for the three months ended September 30, 2022.
We
anticipate that revenue will increase in future periods as the roll out of the SofPulse® product continues. The Company is looking
to partner with global participants in the medical device market to spur its expansion. The Company expects such investment alternatives
to include partnerships, joint ventures, distribution, and licensing agreements for the PEMF medical technology. The Company is also
looking to expand on current initiatives with the Department of Defense, the Department of Veterans Affairs, and other surgical and pain
management markets.
Cost
of Revenue
Cost
of revenue during the three months ended September 30, 2023, was $827, a decrease of $3,200 or 80% compared to $4,027 for the three months
ended September 30, 2022. Cost of revenue is recognized on those sales recorded as gross for which we are the principal in the transaction
as opposed to net sales which reflect no cost of revenue. It is anticipated that cost of revenue will increase in future quarters as
the roll out of the SofPulse® product continues.
Operating
Expenses
Operating expenses decreased by $30,221 or 6%, to $473,490 for the
three months ended September 30, 2023, compared to $503,711 for the three months ended September 30, 2022.
Other
Income (Expense)
Other expenses for the three months ended September 30, 2023, was $293,373
compared to other expense of $106,582 for the three months ended September 30, 2022.
Liquidity
and Capital Resources
|
|
As
of |
|
|
|
|
|
|
September
30,
2023 |
|
|
December
31,
2022 |
|
|
Favorable
(Unfavorable) |
|
Working
Capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets |
|
$ |
35,504 |
|
|
$ |
15,822 |
|
|
$ |
19,682 |
|
Current
liabilities |
|
|
23,696,070 |
|
|
|
33,381,760 |
|
|
|
9,
685,690 |
|
Working
capital deficit |
|
$ |
(23,660,566 |
) |
|
$ |
(33,365,938 |
) |
|
$ |
9,705,372 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt |
|
$ |
79,825 |
|
|
$ |
79,825 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’
deficit |
|
$ |
(22,960,131 |
) |
|
$ |
(32,180,319 |
) |
|
$ |
9,220,188 |
|
| |
Nine Months Ended September 30, | | |
Favorable | |
| |
2023 | | |
2022 | | |
(Unfavorable) | |
Statements of Cash Flows Select Information | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | |
Net cash provided (used) by: | |
| | | |
| | | |
| | |
Operating activities | |
$ | (404,363 | ) | |
$ | (329,436 | ) | |
$ | (74,829 | ) |
Financing activities | |
$ | 404,265 | | |
$ | 243,500 | | |
$ | 160,765 | |
| |
As of | | |
| |
| |
September 30, 2023 | | |
December 31,
2022 | | |
Favorable (Unfavorable) | |
Balance Sheet Select Information | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | |
Cash | |
$ | - | | |
$ | 98 | | |
$ | 98 | |
| |
| | | |
| | | |
| | |
Accounts payable and accrued expenses | |
$ | 10,736,269 | | |
$ | 8,869,451 | | |
$ | (1,866,818 | ) |
Since
January 1, 2023, and through September 30, 2023, the Company has raised approximately $0.5 million in equity and debt transactions. These
funds have been used to fund on-going corporate operations. Our accompanying condensed consolidated financial statements have been prepared
assuming the Company will continue as a going concern, which contemplates realization of assets and the satisfaction of liabilities in
the normal course of business for the twelve-month period following the date of these condensed consolidated financial statements. Our
cash on hand at September 30, 2023 was approximately $0. The Company has incurred substantial losses since its inception. Its current
liabilities exceed its current assets and available cash is not sufficient to fund expected future operations. The Company is contemplating
raising additional capital through debt and equity in order to continue the funding of its operations and to acquire a profitable business.
However, there is no assurance that the Company can raise sufficient funds or generate sufficient revenues to pay its obligations as
they become due, which raises substantial doubt about our ability to continue as a going concern.
The
Company is not aware of any recently issued accounting pronouncements that when adopted will have a material effect on the Company’s
financial position or results of its operations.
Off-Balance
Sheet Arrangements
We
have no off-balance sheet arrangements.
Item
3. Quantitative and Qualitative Disclosures about Market Risk.
We
are a Smaller Reporting Company and are not required to provide the information under this item.
Item
4. Controls and Procedures.
Disclosure
of controls and procedures.
We
maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports, filed
under the Securities Exchange Act of 1934, is recorded, processed, summarized and reported within the time periods specified in the SEC’s
rules and forms, and that such information is accumulated and communicated to our management, including our chief executive officer and
chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure
controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide
only reasonable and not absolute assurance of achieving the desired control objectives. In reaching a reasonable level of assurance,
management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
In addition, the design of any system of controls also is based in part upon certain assumptions about the likelihood of future events,
and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over
time, control may become inadequate because of changes in conditions or the degree of compliance with policies or procedures may deteriorate.
Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.
As
required by the SEC Rule 13a-15(b), we carried out an evaluation under the supervision and with the participation of our management,
including our principal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure
controls and procedures as of the end of the period covered by this report. Based on the foregoing, our principal executive officer and
principal financial officer concluded that our disclosure controls and procedures were not effective at a reasonable assurance level
due to the material weaknesses described below.
In
light of the material weaknesses described below, we performed additional analysis and other post-closing procedures to ensure our financial
statements were prepared in accordance with generally accepted accounting principles. Accordingly, we believe that the financial statements
included in this report fairly present, in all material respects, our financial condition, results of operations and cash flows for the
periods presented.
A
material weakness is a control deficiency (within the meaning of the Public Company Accounting Oversight Board (PCAOB) Auditing Standard
No. 2) or combination of control deficiencies that result in more than a remote likelihood that a material misstatement of the annual
or interim financial statements will not be prevented or detected.
Management
has identified the following two material weaknesses which have caused management to conclude that as of September 30, 2023, our disclosure
controls and procedures were not effective at the reasonable assurance level:
1.
We do not have written documentation of our internal control policies and procedures. Written documentation of key internal controls
over financial reporting is a requirement of Section 404 of the Sarbanes-Oxley Act, which is applicable to us for the quarter ended September
30, 2023. Management evaluated the impact of our failure to have written documentation of our internal controls and procedures on our
assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material
weakness.
2.
We do not have sufficient segregation of duties within accounting functions, which is a basic internal control. Due to our size and nature,
segregation of all conflicting duties may not always be possible and may not be economically feasible. However, to the extent possible,
the authorization of transactions, the custody of assets and the recording of transactions should be performed by separate individuals.
The recording of transactions function is maintained by a third-party consulting firm whereas authorization and custody remains under
the Company’s Chief Executive Officer’s responsibility. Management evaluated the impact of our failure to have segregation
of duties on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented
a material weakness.
To
address these material weaknesses, management performed additional analyses and other procedures to ensure that the financial statements
included herein fairly present, in all material respects, our financial position, results of operations and cash flows for the periods
presented.
Changes
in internal controls over financial reporting.
There
has been no change in our internal control over financial reporting that occurred during the fiscal quarter covered by this Quarterly
Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
PART
II - OTHER INFORMATION
Item
1. Legal Proceedings.
The
Company is subject to certain legal proceedings, which it considers routine to its business activities. As of September 30, 2023, the
Company believes, after consultation with legal counsel, that the ultimate outcome of such legal proceedings, whether individually or
in the aggregate, is not likely to have a material adverse effect on the Company’s financial position, results of operations or
liquidity.
Item
1A. Risk Factors.
We
are a smaller reporting company (as defined in Rule 12b-2 of the Exchange Act) and are not required to provide the information under
this item.
Item
2. Unregistered Sales of Equity Securities and Use of Proceeds.
Number of | |
| |
| |
Common Shares | |
Source of | |
| |
Issued | |
Payment | |
Amount | |
| |
| |
| |
10,900,000 | |
Conversion of notes and accrued interest | |
$ | 109,000 | |
4,300,590 | |
Settlement of debt | |
| 67,089 | |
1,667,000 | |
Settlement of deferred compensation | |
| 24,338 | |
5,000,000 | |
Conversion preferred stock | |
| - | |
27,500,000 | |
Cash | |
| 460,000 | |
1,507,277 | |
Make good provision | |
| 24,870 | |
43,800,000 | |
Shares for services | |
| 720,562 | |
1,850,000 | |
Commitment shares | |
| 25,625 | |
1,000,000 | |
Note Extension Agreements | |
| 11,130 | |
8,000,000 | |
Production Agreement | |
| 112,800 | |
The
above issuances of securities during the nine months ended September 30, 2023, were exempt from registration pursuant to Section 4(2),
and/or Regulation D promulgated under the Securities Act. These securities qualified for exemption under Section 4(2) of the Securities
Act since the issuance of these securities by us did not involve a public offering. The offering was not a “public offering”
as defined in Section 4(2) due to the insubstantial number of persons involved in the deal, size of the offering, manner of the offering
and number of securities offered. We did not undertake an offering in which we sold a high number of securities to a high number of investors.
In addition, these stockholders had the necessary investment intent as required by Section 4(2) since they agreed to and received share
certificates bearing a legend stating that such securities are restricted pursuant to Rule 144 of the Securities Act. This restriction
ensures that these securities would not be immediately redistributed into the market and therefore not be part of a “public offering.”
Based on an analysis of the above factors, we have met the requirements to qualify for exemption under Section 4(2) of the Securities
Act for this transaction.
Item
3. Defaults upon Senior Securities.
None
Item
4. Mine Safety Disclosures.
Not
applicable
Item
5. Other Information
None
Item
6. Exhibits
(a)
Exhibits
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this amended report to be signed on its
behalf by the undersigned, thereunto duly authorized.
Dated: December 29, 2023 |
Endonovo Therapeutics, Inc. |
|
|
|
By: |
/s/
Alan Collier |
|
|
Alan Collier |
|
|
Chief Executive Officer |
|
|
(Duly Authorized Officer, Principal Executive Officer,
and Principal Financial Officer) |
Exhibit
31.1
Certification
of Principal Executive Officer and Principal Financial Officer
Pursuant
to 18 U.S.C. 1350
(Section
302 of the Sarbanes-Oxley Act of 2002)
I,
Alan Collier, Chief Executive Officer, and Principal Financial Officer, certifies that:
1. |
I
have reviewed this amended Quarterly Report on Form 10-Q of Endonovo Therapeutics, Inc. for the period ended September 30,
2023; |
|
|
2. |
Based
on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to
the period covered by this report; |
|
|
3. |
Based
on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in
this report; |
|
|
4. |
I
am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant
and have: |
|
(a) |
Designed
such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this report is being prepared; |
|
|
|
|
(b) |
Designed
such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting principles; |
|
|
|
|
(c) |
Evaluated
the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about
the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;
and |
|
|
|
|
(d) |
Disclosed
in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s
most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected,
or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. |
I
have disclosed, based on our most recent evaluation, to the registrant’s auditors and the audit committee of registrant’s
board of directors (or persons performing the equivalent functions): |
|
(a) |
All
significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information;
and |
|
|
|
|
(b) |
Any
fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s
internal controls. |
Dated:
December 29, 2023 |
/s/
Alan Collier |
|
Chief
Executive Officer and Principal Financial Officer |
Exhibit
32.1
CERTIFICATION
PURSUANT TO
18
U.S.C. §1350,
AS
ADOPTED PURSUANT TO
SECTION
906 OF THE SARBANES-OXLEY ACT OF 2002
In
connection with the Amended Quarterly Report of Endonovo Therapeutics, Inc. (the “Company”) on Form 10-Q for the period
ended September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I,
Alan Collier, Chief Executive Officer, and Principal Financial Officer of the Company, certifies, pursuant to 18 U.S.C. §1350,
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
1.
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations
of the Company.
|
|
/s/
Alan Collier |
|
Name: |
Alan Collier |
|
Title: |
Chief Executive Officer and Principal Financial Officer |
|
Date: |
December 29, 2023 |
This
certification accompanies each Report pursuant to § 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required
by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of §18 of the Securities Exchange Act of 1934, as
amended.
v3.23.4
Cover - shares
|
9 Months Ended |
|
Sep. 30, 2023 |
Dec. 28, 2023 |
Cover [Abstract] |
|
|
Document Type |
10-Q/A
|
|
Amendment Flag |
true
|
|
Amendment Description |
The
Purpose of this Explanatory Note is to explain that this information has not been subject to review procedures by our independent auditing
firm pursuant to the requirements of SAS100 due to unavoidable delays and we expected it to be completed by or before March 31, 2024.
|
|
Document Quarterly Report |
true
|
|
Document Transition Report |
false
|
|
Document Period End Date |
Sep. 30, 2023
|
|
Document Fiscal Period Focus |
Q3
|
|
Document Fiscal Year Focus |
2023
|
|
Current Fiscal Year End Date |
--12-31
|
|
Entity File Number |
000-55453
|
|
Entity Registrant Name |
ENDONOVO
THERAPEUTICS, INC.
|
|
Entity Central Index Key |
0001528172
|
|
Entity Tax Identification Number |
45-2552528
|
|
Entity Incorporation, State or Country Code |
DE
|
|
Entity Address, Address Line One |
6320
Canoga Avenue
|
|
Entity Address, Address Line Two |
15th Floor
|
|
Entity Address, City or Town |
Woodland Hills
|
|
Entity Address, State or Province |
CA
|
|
Entity Address, Postal Zip Code |
91367
|
|
City Area Code |
(800)
|
|
Local Phone Number |
489-4774
|
|
Entity Current Reporting Status |
Yes
|
|
Entity Interactive Data Current |
Yes
|
|
Entity Filer Category |
Non-accelerated Filer
|
|
Entity Small Business |
true
|
|
Entity Emerging Growth Company |
false
|
|
Entity Shell Company |
false
|
|
Entity Common Stock, Shares Outstanding |
|
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v3.23.4
Condensed Consolidated Balance Sheets - USD ($)
|
Sep. 30, 2023 |
Dec. 31, 2022 |
Current assets: |
|
|
Cash |
$ 0
|
$ 98
|
Prepaid expenses and other current assets |
35,504
|
15,724
|
Total current assets |
35,504
|
15,822
|
Patents, net |
780,260
|
1,265,444
|
Total assets |
815,764
|
1,281,266
|
Current liabilities |
|
|
Accrued interest related to notes payable |
4,417,039
|
3,542,650
|
Derivative liability |
5,902,829
|
17,359,064
|
Total current liabilities |
23,696,070
|
33,381,760
|
Acquisition payable |
79,825
|
79,825
|
Total liabilities |
23,775,895
|
33,461,585
|
COMMITMENTS AND CONTINGENCIES, note 9 |
|
|
Shareholders’ deficit |
|
|
Common stock, $0.0001 par value; 2,500,000,000 shares authorized; 318,751,597 and 213,227,538 shares issued and outstanding as of September 30, 2023 and December 31, 2022 |
27,940
|
21,322
|
Additional paid-in capital |
43,644,063
|
42,919,086
|
Stock subscriptions receivable |
(1,570)
|
(1,570)
|
Accumulated deficit |
(66,630,590)
|
(75,119,183)
|
Total shareholders’ deficit |
(22,960,131)
|
(32,180,319)
|
Total liabilities and shareholders’ deficit |
815,764
|
1,281,266
|
Super AA Super Voting Preferred Stock [Member] |
|
|
Shareholders’ deficit |
|
|
Series D convertible preferred stock, $0.0001 par value; 20,000 shares authorized, 0 and 50 issued and outstanding at September 30, 2023 and December 31, 2022 |
25
|
25
|
Series B Convertible Preferred Stock [Member] |
|
|
Shareholders’ deficit |
|
|
Series D convertible preferred stock, $0.0001 par value; 20,000 shares authorized, 0 and 50 issued and outstanding at September 30, 2023 and December 31, 2022 |
1
|
1
|
Series C Convertible Preferred Stock [Member] |
|
|
Shareholders’ deficit |
|
|
Series D convertible preferred stock, $0.0001 par value; 20,000 shares authorized, 0 and 50 issued and outstanding at September 30, 2023 and December 31, 2022 |
|
|
Series D Convertible Preferred Stock [Member] |
|
|
Shareholders’ deficit |
|
|
Series D convertible preferred stock, $0.0001 par value; 20,000 shares authorized, 0 and 50 issued and outstanding at September 30, 2023 and December 31, 2022 |
|
|
Nonrelated Party [Member] |
|
|
Current liabilities |
|
|
Accounts payable and accrued liabilities – related party |
1,180,968
|
884,195
|
Deferred compensation – related party |
4,229,029
|
3,918,788
|
Notes payable – former related party |
6,952,372
|
7,041,145
|
Related Party [Member] |
|
|
Current liabilities |
|
|
Accounts payable and accrued liabilities – related party |
278,665
|
|
Deferred compensation – related party |
630,568
|
523,818
|
Notes payable – former related party |
$ 104,600
|
$ 112,100
|
X |
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v3.23.4
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
|
Sep. 30, 2023 |
Dec. 31, 2022 |
Discounts on notes payable current |
$ 28,210
|
$ 10,587
|
Common stock, par value |
$ 0.0001
|
$ 0.0001
|
Common stock, shares authorized |
2,500,000,000
|
2,500,000,000
|
Common stock, shares issued |
318,751,597
|
213,227,538
|
Common stock, shares outstanding |
318,751,597
|
213,227,538
|
Super AA Super Voting Preferred Stock [Member] |
|
|
Preferred stock, par value |
$ 0.001
|
$ 0.001
|
Preferred stock, shares authorized |
1,000,000
|
1,000,000
|
Preferred stock, shares issued |
25,000
|
25,000
|
Preferred stock, shares outstanding |
25,000
|
25,000
|
Series B Convertible Preferred Stock [Member] |
|
|
Preferred stock, par value |
$ 0.0001
|
$ 0.0001
|
Preferred stock, shares authorized |
50,000
|
50,000
|
Preferred stock, shares issued |
600
|
600
|
Preferred stock, shares outstanding |
600
|
600
|
Series C Convertible Preferred Stock [Member] |
|
|
Preferred stock, par value |
$ 0.0001
|
$ 0.0001
|
Preferred stock, shares authorized |
8,000
|
8,000
|
Preferred stock, shares issued |
738
|
738
|
Preferred stock, shares outstanding |
738
|
738
|
Series D Convertible Preferred Stock [Member] |
|
|
Preferred stock, par value |
$ 0.0001
|
$ 0.0001
|
Preferred stock, shares authorized |
20,000
|
20,000
|
Preferred stock, shares issued |
0
|
50
|
Preferred stock, shares outstanding |
0
|
50
|
X |
- DefinitionFace amount or stated value per share of common stock.
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v3.23.4
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
|
3 Months Ended |
9 Months Ended |
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Income Statement [Abstract] |
|
|
|
|
Revenue |
$ 1,520
|
$ 10,960
|
$ 134,260
|
$ 13,892
|
Cost of revenue |
827
|
4,027
|
4,823
|
5,124
|
Gross profit |
693
|
6,933
|
129,437
|
8,768
|
Operating expenses |
473,490
|
503,711
|
2,262,833
|
2,790,057
|
Loss from operations |
(472,797)
|
(496,778)
|
(2,133,396)
|
(2,781,289)
|
Other income (expense) |
|
|
|
|
Change in fair value of derivative liability |
0
|
(56,213)
|
11,445,466
|
(1,903,177)
|
Gain (loss) on settlement of debt |
0
|
319,081
|
156,062
|
362,894
|
Other expense |
(7,481)
|
(30,879)
|
(31,999)
|
(208,879)
|
Interest expense, net |
(285,892)
|
(338,571)
|
(908,141)
|
(1,012,249)
|
Other income (expense) |
(293,373)
|
(106,582)
|
10,661,388
|
(2,761,411)
|
Income (Loss) before income taxes |
(766,170)
|
(603,360)
|
8,527,992
|
(5,542,700)
|
Provision for income taxes |
|
|
|
|
Net Income (Loss) |
$ (766,170)
|
$ (603,360)
|
$ 8,527,992
|
$ (5,542,700)
|
Basic Income (Loss) per share |
$ (0.002)
|
$ (0.00)
|
$ 0.03
|
$ (0.05)
|
Diluted Loss per share |
$ (0.00)
|
$ (0.00)
|
$ (0.00)
|
$ (0.05)
|
Weighted average common share outstanding: |
|
|
|
|
Basic |
298,391,943
|
153,599,760
|
276,355,156
|
122,537,266
|
Diluted |
1,350,805,130
|
153,599,760
|
1,350,768,342
|
122,537,266
|
X |
- DefinitionThe aggregate cost of goods produced and sold and services rendered during the reporting period.
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v3.23.4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
|
9 Months Ended |
Sep. 30, 2023 |
Sep. 30, 2022 |
Operating activities: |
|
|
Net Income (Loss) |
$ 8,527,992
|
$ (5,542,700)
|
Adjustments to reconcile net income (loss) to cash used in operating activities: |
|
|
Amortization expense |
485,185
|
485,184
|
Stock compensation expense |
200,966
|
|
Fair value of equity issued for services |
720,562
|
1,281,900
|
Loss (gain) on extinguishment of debt |
(156,062)
|
(362,894)
|
Amortization of note discount and original issue discount |
12,002
|
90,427
|
Change in fair value of derivative liability |
(11,445,466)
|
1,903,177
|
Changes in assets and liabilities: |
|
|
Prepaid expenses and other current assets |
9,052
|
7,975
|
Account payable and accrued liabilities (related and unrelated parties) |
49,534
|
297,250
|
Accrued interest |
908,141
|
921,822
|
Deferred compensation |
283,731
|
464,562
|
Net cash used in operating activities |
(404,363)
|
(453,297)
|
Financing activities: |
|
|
Proceeds from the issuance of notes payable |
195,000
|
400,000
|
Repayments on former related party of notes payable |
(7,500)
|
(9,500)
|
Repayments of convertible debt in cash |
(40,000)
|
|
Proceeds from issuance of common stock and units, net |
256,765
|
|
Net cash provided by financing activities |
404,265
|
390,500
|
Net increase (decrease) in cash |
(98)
|
(62,797)
|
Cash, beginning of year |
98
|
85,936
|
Cash, end of period |
0
|
23,139
|
Supplemental disclosure of cash flow information: |
|
|
Cash paid for interest |
|
|
Cash paid for income taxes |
|
|
Non-Cash Investing and Financing Activities: |
|
|
Conversion of notes payable and accrued interest to common stock |
109,000
|
339,000
|
Conversion of Preferred C Stock to common stock |
500
|
|
Issuance of common stock to settle debt |
45,000
|
|
Debt discount from issuance of debt |
32,875
|
44,098
|
Conversion of notes to common stock pursuant to settlement agreement |
$ 159,419
|
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v3.23.4
Condensed Consolidated Statement of Shareholders' Deficit (Unaudited) - USD ($)
|
Preferred Stock [Member]
Series AA Preferred Stock [Member]
|
Preferred Stock [Member]
Series B Convertible Preferred Stock [Member]
|
Preferred Stock [Member]
Series C Convertible Preferred Stock [Member]
|
Preferred Stock [Member]
Series D Convertible Preferred Stock [Member]
|
Common Stock [Member] |
Additional Paid-in Capital [Member] |
Subscription Receivable [Member] |
Retained Earnings [Member] |
Total |
Balance at Dec. 31, 2021 |
$ 25
|
$ 1
|
|
|
$ 7,449
|
$ 40,663,187
|
$ (1,570)
|
$ (56,443,416)
|
$ (15,774,324)
|
Balance, shares at Dec. 31, 2021 |
25,000
|
600
|
738
|
305
|
74,498,760
|
|
|
|
|
Shares issued for conversion of notes payable and accrued interest |
|
|
|
|
$ 370
|
88,430
|
|
|
88,800
|
Shares issued for conversion of notes payable and accrued interest, shares |
|
|
|
|
3,700,000
|
|
|
|
|
Common stock issued for settlement of debt |
|
|
|
|
$ 243
|
45,904
|
|
|
46,147
|
Common stock issued for settlement of debt, shares |
|
|
|
|
2,428,777
|
|
|
|
|
Net Income (loss) |
|
|
|
|
|
|
|
(2,413,209)
|
(2,413,209)
|
Issuance of commitment shares in connection with promissory note |
|
|
|
|
$ 70
|
15,680
|
|
|
15,750
|
Issuance of commitment shares in connection with promissory notes, shares |
|
|
|
|
700,000
|
|
|
|
|
Balance at Mar. 31, 2022 |
$ 25
|
$ 1
|
|
|
$ 8,132
|
40,813,201
|
(1,570)
|
(58,856,625)
|
(18,036,836)
|
Balance, shares at Mar. 31, 2022 |
25,000
|
600
|
738
|
305
|
81,327,538
|
|
|
|
|
Balance at Dec. 31, 2021 |
$ 25
|
$ 1
|
|
|
$ 7,449
|
40,663,187
|
(1,570)
|
(56,443,416)
|
$ (15,774,324)
|
Balance, shares at Dec. 31, 2021 |
25,000
|
600
|
738
|
305
|
74,498,760
|
|
|
|
|
Shares issued for conversion of notes payable and accrued interest, shares |
|
|
|
|
|
|
|
|
16,950,000
|
Common Shares issued for services |
|
|
|
|
|
|
|
|
$ 1,281,900
|
Common Shares issued for services, shares |
|
|
|
|
|
|
|
|
62,250,000
|
Net Income (loss) |
|
|
|
|
|
|
|
|
$ (5,542,700)
|
Balance at Sep. 30, 2022 |
$ 25
|
$ 1
|
|
|
$ 15,922
|
42,365,859
|
(1,570)
|
(61,986,116)
|
(19,605,879)
|
Balance, shares at Sep. 30, 2022 |
25,000
|
600
|
738
|
|
159,227,538
|
|
|
|
|
Balance at Mar. 31, 2022 |
$ 25
|
$ 1
|
|
|
$ 8,132
|
40,813,201
|
(1,570)
|
(58,856,625)
|
(18,036,836)
|
Balance, shares at Mar. 31, 2022 |
25,000
|
600
|
738
|
305
|
81,327,538
|
|
|
|
|
Shares issued for conversion of notes payable and accrued interest |
|
|
|
|
$ 650
|
114,550
|
|
|
115,200
|
Shares issued for conversion of notes payable and accrued interest, shares |
|
|
|
|
6,500,000
|
|
|
|
|
Common Shares issued for services |
|
|
|
|
$ 6,225
|
1,275,675
|
|
|
1,281,900
|
Common Shares issued for services, shares |
|
|
|
|
62,250,000
|
|
|
|
|
Net Income (loss) |
|
|
|
|
|
|
|
(2,526,131)
|
(2,526,131)
|
Issuance of commitment shares in connection with promissory note |
|
|
|
|
$ 35
|
5,698
|
|
|
5,733
|
Issuance of commitment shares in connection with promissory notes, shares |
|
|
|
|
350,000
|
|
|
|
|
Balance at Jun. 30, 2022 |
$ 25
|
$ 1
|
|
|
$ 15,042
|
42,209,124
|
(1,570)
|
(61,382,756)
|
(19,160,134)
|
Balance, shares at Jun. 30, 2022 |
25,000
|
600
|
738
|
305
|
150,427,538
|
|
|
|
|
Common Shares issued for services |
|
|
|
|
$ 675
|
134,325
|
|
|
135,000
|
Common Shares issued for services, shares |
|
|
|
|
6,750,000
|
|
|
|
|
Net Income (loss) |
|
|
|
|
|
|
|
(603,360)
|
(603,360)
|
Issuance of commitment shares in connection with promissory note |
|
|
|
|
$ 205
|
22,410
|
|
|
22,615
|
Issuance of commitment shares in connection with promissory notes, shares |
|
|
|
|
2,050,000
|
|
|
|
|
Balance at Sep. 30, 2022 |
$ 25
|
$ 1
|
|
|
$ 15,922
|
42,365,859
|
(1,570)
|
(61,986,116)
|
(19,605,879)
|
Balance, shares at Sep. 30, 2022 |
25,000
|
600
|
738
|
|
159,227,538
|
|
|
|
|
Balance at Dec. 31, 2022 |
$ 25
|
$ 1
|
|
|
$ 21,322
|
42,919,086
|
(1,570)
|
(75,119,183)
|
(32,180,319)
|
Balance, shares at Dec. 31, 2022 |
25,000
|
600
|
738
|
50
|
213,227,538
|
|
|
|
|
Shares issued for conversion of notes payable and accrued interest |
|
|
|
|
$ 1,090
|
107,910
|
|
|
109,000
|
Shares issued for conversion of notes payable and accrued interest, shares |
|
|
|
|
10,900,000
|
|
|
|
|
Shares issued pursuant to make good provision |
|
|
|
|
$ 151
|
24,719
|
|
|
24,870
|
Shares issued pursuant to make good provision, shares |
|
|
|
|
1,507,277
|
|
|
|
|
Common stock issued for settlement of debt |
|
|
|
|
$ 430
|
66,659
|
|
|
67,089
|
Common stock issued for settlement of debt, shares |
|
|
|
|
4,300,590
|
|
|
|
|
Common Shares issued for services |
|
|
|
|
$ 1,285
|
171,665
|
|
|
172,950
|
Common Shares issued for services, shares |
|
|
|
|
12,850,000
|
|
|
|
|
Common stock issued for cash, net of fees |
|
|
|
|
$ 2,250
|
204,750
|
|
|
207,000
|
Common stock issued for cash, net of fees, shares |
|
|
|
|
22,500,000
|
|
|
|
|
Shares issued for conversion of Preferred Series D to common shares |
|
|
|
|
$ 500
|
(500)
|
|
|
|
Shares issued for conversion of Preferred Series D to common shares, shares |
|
|
|
(50)
|
5,000,000
|
|
|
|
|
Inducement loss related to conversion of preferred stock |
|
|
|
|
|
39,398
|
|
(39,398)
|
|
Net Income (loss) |
|
|
|
|
|
|
|
7,230,502
|
7,230,502
|
Balance at Mar. 31, 2023 |
$ 25
|
$ 1
|
|
|
$ 27,028
|
43,533,687
|
(1,570)
|
(67,928,079)
|
(24,368,908)
|
Balance, shares at Mar. 31, 2023 |
25,000
|
600
|
738
|
|
270,285,405
|
|
|
|
|
Balance at Dec. 31, 2022 |
$ 25
|
$ 1
|
|
|
$ 21,322
|
42,919,086
|
(1,570)
|
(75,119,183)
|
$ (32,180,319)
|
Balance, shares at Dec. 31, 2022 |
25,000
|
600
|
738
|
50
|
213,227,538
|
|
|
|
|
Shares issued for conversion of notes payable and accrued interest |
|
|
|
|
$ 109,000
|
|
|
|
|
Shares issued for conversion of notes payable and accrued interest, shares |
|
|
|
|
10,900,000
|
|
|
|
10,900,000
|
Shares issued pursuant to make good provision |
|
|
|
|
$ 282,000
|
|
|
|
|
Shares issued pursuant to make good provision, shares |
|
|
|
|
20,000,000
|
|
|
|
|
Common stock issued for settlement of debt, shares |
|
|
|
|
4,300,590
|
|
|
|
|
Common Shares issued for services |
|
|
|
|
|
|
|
|
$ 720,562
|
Common Shares issued for services, shares |
|
|
|
|
|
|
|
|
43,800,000
|
Common stock issued for cash, net of fees, shares |
|
|
|
|
5,967,590
|
|
|
|
|
Net Income (loss) |
|
|
|
|
|
|
|
|
$ 8,527,992
|
Shares issued for conversion of deferred compensation |
|
|
|
|
$ 24,338
|
|
|
|
|
Shares issued for conversion of deferred compensation, shares |
|
|
|
|
1,667,000
|
|
|
|
|
Balance at Sep. 30, 2023 |
$ 25
|
$ 1
|
|
|
$ 27,940
|
43,644,063
|
(1,570)
|
(66,630,590)
|
(22,960,131)
|
Balance, shares at Sep. 30, 2023 |
25,000
|
600
|
738
|
|
289,152,405
|
|
|
|
|
Balance at Mar. 31, 2023 |
$ 25
|
$ 1
|
|
|
$ 27,028
|
43,533,687
|
(1,570)
|
(67,928,079)
|
(24,368,908)
|
Balance, shares at Mar. 31, 2023 |
25,000
|
600
|
738
|
|
270,285,405
|
|
|
|
|
Common Shares issued for services |
|
|
|
|
$ 100
|
15,900
|
|
|
16,000
|
Common Shares issued for services, shares |
|
|
|
|
1,000,000
|
|
|
|
|
Common stock issued for cash, net of fees |
|
|
|
|
$ 500
|
45,500
|
|
|
46,000
|
Common stock issued for cash, net of fees, shares |
|
|
|
|
5,000,000
|
|
|
|
|
Net Income (loss) |
|
|
|
|
|
|
|
2,063,660
|
2,063,660
|
Shares issued for conversion of deferred compensation |
|
|
|
|
$ 167
|
24,171
|
|
|
24,338
|
Shares issued for conversion of deferred compensation, shares |
|
|
|
|
1,667,000
|
|
|
|
|
Issuance of commitment shares in connection with promissory note |
|
|
|
|
$ 85
|
11,040
|
|
|
11,125
|
Issuance of commitment shares in connection with promissory notes, shares |
|
|
|
|
850,000
|
|
|
|
|
Stock-based compensation |
|
|
|
|
|
6,025
|
|
|
6,025
|
Balance at Jun. 30, 2023 |
$ 25
|
$ 1
|
|
|
$ 27,940
|
43,644,063
|
(1,570)
|
(66,082,348)
|
(22,411,889)
|
Balance, shares at Jun. 30, 2023 |
25,000
|
600
|
738
|
|
289,152,405
|
|
|
|
|
Common Shares issued for services |
|
|
|
|
|
|
|
|
|
Common Shares issued for services, shares |
|
|
|
|
8,000,000
|
|
|
|
|
Common stock issued for cash, net of fees |
|
|
|
|
|
|
|
|
|
Common stock issued for cash, net of fees, shares |
|
|
|
|
|
|
|
|
1,000,000
|
Net Income (loss) |
|
|
|
|
|
|
|
(766,170)
|
$ (766,170)
|
Shares issued for conversion of deferred compensation |
|
|
|
|
|
|
|
|
|
Issuance of commitment shares in connection with promissory note |
|
|
|
|
$ 25
|
3,225
|
|
|
3,250
|
Issuance of commitment shares in connection with promissory notes, shares |
|
|
|
|
2,000,000
|
|
|
|
|
Stock-based compensation |
|
|
|
|
$ 35
|
4,515
|
|
|
4,550
|
Stock issued during period, shares, employee benefit plan |
|
|
|
|
350,000
|
|
|
|
|
Balance at Sep. 30, 2023 |
$ 25
|
$ 1
|
|
|
$ 27,940
|
$ 43,644,063
|
$ (1,570)
|
$ (66,630,590)
|
$ (22,960,131)
|
Balance, shares at Sep. 30, 2023 |
25,000
|
600
|
738
|
|
289,152,405
|
|
|
|
|
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- DefinitionShares issued for conversion of deferred compensation shares.
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v3.23.4
Organization and Nature of Business
|
9 Months Ended |
Sep. 30, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
|
Organization and Nature of Business |
Note
1 - Organization and Nature of Business
Endonovo
Therapeutics, Inc. (Endonovo or the “Company”) is an innovative biotechnology company that has developed a bio-electronic
approach to regenerative medicine. Endonovo is a growth stage company whose stock is publicly traded (OTCQB: ENDV).
The
Company develops, manufactures, and distributes evolutionary medical devices focused on the rapid healing of wounds and reduction of
pain, edema, and inflammation in the human body. The Company’s non-invasive bioelectric medical devices are designed to target
inflammation, cardiovascular diseases, chronic kidney disease, and central nervous system disorders (“CNS” disorders).
The
Company’s non-invasive Electroceutical® therapeutics device, SofPulse®, using pulsed short-wave radiofrequency at 27.12
MHz has been FDA-Cleared and CE Marked for the palliative treatment of soft tissue injuries and post-operative plain and edema, and has
CMS National Coverage for the treatment of chronic wounds. The Company’s current portfolio of pre-clinical stage Electroceutical®
therapeutics devices address chronic kidney disease, liver disease non-alcoholic steatohepatitis (NASH), cardiovascular and peripheral
artery disease (PAD) and ischemic stroke.
Endonovo’s
core mission is to transform the field of medicine by developing safe, wearable, non-invasive bioelectric medical devices that deliver
the Company’s Electroceutical® Therapy. Endonovo’s bioelectric Electroceutical® devices harnesses
bioelectricity to restore key electrochemical processes that initiate anti-inflammatory processes and growth factors in the body
necessary for healing to rapidly occur.
The
Company intends to be structured into two separate divisions:
|
■ |
A
commercial stage developer primarily of non-invasive wearable Electroceuticals® therapeutic devices for pain relief, general
wellness, and wound curatives with many of its products marketed under the SofPulse® brand name. This division will be controlled
by Ira Weisberg, the Company’s President and Chief Commercial Officer. |
|
■ |
M&A
division with a strategy of purchasing profitable companies, which will be managed by the Company’s current Chief Executive
Officer. |
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v3.23.4
Summary of significant accounting policies
|
9 Months Ended |
Sep. 30, 2023 |
Accounting Policies [Abstract] |
|
Summary of significant accounting policies |
Note
2 – Summary of significant accounting policies.
Basis
of Presentation and Principles of Consolidation
The
accompanying unaudited interim condensed consolidated financial statements have been presented in accordance with accounting principles
generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Article
8 of Regulation S-X. Accordingly, the financial statements do not include all of the information and notes required by GAAP for complete
financial statements. The accompanying consolidated condensed balance sheet as of September 30, 2023, the consolidated statements of
operations for the three and nine months ended September 30, 2023 and 2022, the consolidated statements of cash flows for the nine months
ended September 30, 2023 and 2022, and the consolidated statements of shareholders’ deficit for the three and nine months ended
September 30, 2023 and 2022 are unaudited; however, in the opinion of management such interim consolidated financial statements reflect
all adjustments, consisting solely of normal recurring adjustments, necessary for a fair presentation of the results for the periods
presented. The accompanying financial information should be read in conjunction with the financial statements and the notes thereto in
the Company’s most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission (the “SEC”)
on April 17, 2023. The results of operations for the period presented are not necessarily indicative of the results that might be expected
for future interim periods or for the full year.
Liquidity
and Going Concern
The
Company’s unaudited condensed consolidated financial statements are prepared using GAAP applicable to a going concern, which contemplates
the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing
source of revenues sufficient to cover its operating costs and to continue as a going concern. The ability of the Company to continue
as a going concern is dependent on the Company’s ability to obtain adequate capital to fund operating losses until it becomes profitable.
As
of September 30, 2023, the Company had cash of approximately $0 and a working capital deficiency of approximately $23.1 million. During
the nine months ended September 30, 2023, the Company used approximately $0.4 million of cash in its operation. The Company has incurred
recurring losses resulting in an accumulated deficit of approximately $66.6 million as of September 30, 2023. These conditions raise
substantial doubt as to its ability to continue as going concern within one year from issuance date of these unaudited consolidated financial
statements.
Endonovo
Therapeutics, Inc.
Notes
to Condensed Consolidated Financial Statements (continued)
During
the nine months ended September 30, 2023, the Company has raised $0.5 million in equity and debt financings. The Company will continue
to raise additional capital through either debt or equity financing to fund its operations. However, there is no assurance that the Company
can raise enough funds or generate sufficient revenues to pay its obligations as they become due, which raises substantial doubt about
our ability to continue as a going concern.
On
September 26, 2022, the Company entered into an asset purchase agreement with a Company, which is engaged in the business of providing
and laying of concrete primarily for residential tract developers, pursuant to which the Company will acquire all of the assets and liabilities
for approximately $25.2 million. The Company intends to raise the consideration through debt and equity financing. Such a transaction
has not yet closed at the report date.
No
adjustments have been made to the carrying value of assets or liabilities as a result of this uncertainty. To reduce the risk of not
being able to continue as a going concern, management is commercializing its FDA cleared and CE marked products and has commenced implementing
its business plan to materialize revenues from potential future license agreements, and or diversifying its business activities with
the potential acquisition of specialty construction company. The Company will continue to raise additional capital through the issuance
of fixed-rate conversion feature promissory notes.
Use
of Estimates
The
preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and
accompanying notes. Critical estimates include the assessment of impairment of finite lived intangibles, the valuation of the derivative
liability, the valuation of warrants and stock options, and the valuation of deferred income tax assets. Management uses its historical
records and knowledge of its business in making these estimates. Actual results could differ from these estimates.
Earnings
(Loss) Per Share
The
Company utilizes Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 260,
“Earnings per Share.” Basic earnings (loss) per share is computed based on the earnings (loss) attributable to common shareholders
divided by the weighted average number of shares outstanding for the period excluding any dilutive effects of options, warrants, unvested
share awards and convertible securities. Diluted earnings (loss) per common share is calculated similar to basic earnings (loss) per
share except that the denominator is increased to include additional common share equivalents available upon exercise of stock option,
warrants, common shares issuable under convertible debt and restricted stock using the treasury stock method. Dilutive common share equivalents
include the dilutive effect of in-the-money share equivalents, which are calculated based on the average share price for each period
using the treasury stock method, excluding any common share equivalents if their effect would be anti-dilutive. In periods in which a
net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation.
Securities that are excluded from the calculation of weighted average dilutive common shares because their inclusion would have been
antidilutive for the nine months ended September 30, 2023, include stock options, warrants, and notes payable.
The
Company has 6,011,750 stock options to purchase an equivalent number of shares of common stock outstanding at September 30, 2023. The
Company has 263,070 options and 2,000 warrants to purchase common stock outstanding at September 30, 2022.
The
components of basic and diluted income (loss) per share for the nine months ended September 30, 2023 and 2022 were as follows:
Schedule
of Earnings Per Share Basic and Diluted
| |
2023 | | |
2022 | |
| |
Nine months ended September 30, | |
| |
2023 | | |
2022 | |
Numerator: | |
| | |
| |
Net income (loss) attributable to common shareholders | |
$ | 8,857,992 | | |
$ | (5,542,700 | ) |
| |
| | | |
| | |
Effect of dilutive securities | |
| | | |
| | |
Convertible notes | |
| (10,823,217 | ) | |
| - | |
Net loss for diluted earnings per share | |
$ | (2,295,225 | ) | |
$ | (5,542,700 | ) |
Denominator: | |
| | | |
| | |
Weighted-average number of common shares outstanding during the period | |
| 276,355,156 | | |
| 55,303,026 | |
Dilutive effect of convertible notes payable | |
| 1,074,413,187 | | |
| - | |
Common stock and common stock equivalents used for diluted loss per share | |
| 1,350,768,342 | | |
| 55,303,026 | |
The
components of basic and diluted income (loss) per share for the three months ended September 30, 2023 and 2022 were as follows:
| |
2023 | | |
2022 | |
| |
Three months ended September 30, | |
| |
2023 | | |
2022 | |
Numerator: | |
| | |
| |
Net income (loss) attributable to common shareholders | |
$ | (766,170 | ) | |
$ | (603,360 | ) |
| |
| | | |
| | |
Effect of dilutive securities | |
| | | |
| | |
Convertible notes | |
| 285,892 | | |
| - | |
Net loss for diluted earnings per share | |
$ | (480,278 | ) | |
$ | (603,360 | ) |
Denominator: | |
| | | |
| | |
Weighted-average number of common shares outstanding during the period | |
| 298,391,943 | | |
| 153,599,760 | |
Dilutive effect of convertible notes payable | |
| 1,074,413,187 | | |
| - | |
Common stock and common stock equivalents used for diluted loss per share | |
| 1,372,805,130 | | |
| 153,599,760 | |
Accounts
Receivable
The
Company uses the specific identification method for recording the provision for doubtful accounts, which was $0 as of September 30, 2023
and December 31, 2022. Account receivables are written off when all collection attempts have failed.
Endonovo
Therapeutics, Inc.
Notes
to Condensed Consolidated Financial Statements (continued)
Newly
Adopted Accounting Principles
The
Company has evaluated all the recent accounting pronouncements and determined that there are no other accounting pronouncements that
will have a material effect on the Company’s consolidated financial statements.
|
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v3.23.4
Revenue Recognition
|
9 Months Ended |
Sep. 30, 2023 |
Revenue from Contract with Customer [Abstract] |
|
Revenue Recognition |
Note
3 - Revenue Recognition
Contracts
with Customers
The
Company adopted ASC 606, Revenue from Contracts with Customers effective January 1, 2019, using the modified retrospective method
applied to those contracts which were not substantially completed as of January 1, 2019. These standards provide guidance on recognizing
revenue, including a five-step model to determine when revenue recognition is appropriate. The standard requires that an entity recognize
revenue to depict the transfer of control of promised goods or services to customers in an amount that reflects the consideration to
which the entity expects to be entitled in exchange for those goods or services.
The
Company routinely plans on entering into contracts with customers that include general commercial terms and conditions, notification
requirements for price increases, shipping terms and in most cases prices for the products and services that we offer. The Company’s
performance obligations are established when a customer submits a purchase order notification (in writing, electronically or verbally)
for goods and services, and we accept the order. The Company identified performance obligations as the delivery of the requested product
or service in appropriate quantities and to the location specified in the customer’s contract and/or purchase order. The Company
generally recognize revenue upon the satisfaction of these criteria when control of the product or service has been transferred to the
customer at which time, the Company has an unconditional right to receive payment. The Company’s sales and sale prices are final,
and our prices are not affected by contingent events that could impact the transaction price.
Revenues
for our SofPulse® product is typically recognized at the time the product is shipped, at which time the title passes to the customer,
and there are no further performance obligations. Royalty/licensing revenue is also recognized at one point in time, when the units are
shipped.
In
connection with offering products and services provided to the end user by third-party vendors, the Company reviews the relationship
between us, the vendor, and the end user to assess whether revenue should be reported on a gross or net basis. In asserting whether revenue
should be reported on a gross or net basis, the Company considers whether the Company acts as a principal in the transaction and control
the goods and services used to fulfill the performance obligation(s) associated with the transaction.
Endonovo
Therapeutics, Inc.
Notes
to Condensed Consolidated Financial Statements (continued)
Sources
of Revenue
The
Company has identified the following revenues by revenue source:
1. |
Sales
to plastic surgeons |
2. |
Sales
to wound care facilities |
3. |
Sales
to hospital |
4. |
Sales
to other physicians |
5. |
Royalty
fee from licensing, net |
For
the three and nine months ended September 30, 2023 and 2022, the sources of revenue were as follows:
Schedule
of Source of Revenue
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| |
Three Months Ended
September 30, | | |
Nine Months Ended September 30, | |
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| |
| | |
| | |
| | |
| |
Royalty/licensing, net | |
$ | - | | |
$ | - | | |
$ | 126,520 | | |
$ | - | |
Direct sales- medical care providers, gross | |
| 1,520 | | |
| 10,960 | | |
| 7,740 | | |
| 13,892 | |
Total sources of revenue | |
$ | 1,520 | | |
$ | 10,960 | | |
$ | 134,260 | | |
$ | 13,892 | |
The
royalty/licensing revenue recognized in the nine months ended September 30, 2023, resulted from specific transactions. No general patent
rights were assigned to the distributor. The royalty / licensing revenue is recorded on a net basis as the Company was not considered
the principal but an agent for accounting purposes. The royalty / licensing revenue, net includes an ongoing contract with a customer
that has a total gross sales value of $300,000, for which the Company recognized net revenue of $126,520 based on 1,000 units delivered
during the period ended September 30, 2023. The royalty/licensing revenue is recognized when the customer picks up the units from the
Company’s vendor.
On
January 25, 2023, the Company entered into a sales support services agreement with Pulse Therapeutic Technology (“PTT”),
an entity controlled by a former related party, under which PTT has been selling SofPulse® on a nonexclusive basis. Pursuant to such
agreement, the deferred compensation owed to this former related party has been fully extinguished for a total amount of approximately
$118,000.
Warranty
Our
general product warranties do not extend beyond an assurance that the product delivered will be consistent with stated specifications
and do not include separate performance obligations.
Significant
Judgments in the Application of the Guidance in ASC 606
There
are no significant judgments associated with the satisfaction of our performance obligations. We generally satisfy performance obligations
upon shipment of the product to the customer. This is consistent with the time in which the customer obtains control of the products.
Performance obligations are also generally settled quickly after the purchase order acceptance, therefore the value of unsatisfied performance
obligations at the end of any reporting period is generally immaterial.
We
consider variable consideration in establishing the transaction price. Forms of variable consideration applicable to our arrangements
include sales returns, rebates, volume-based bonuses, and prompt pay discounts. We use historical information along with an analysis
of the expected value to properly calculate and to consider the need to constrain estimates of variable consideration. Such amounts are
included as a reduction to revenue from the sale of products in the periods in which the related revenue is recognized and adjusted in
future periods as necessary.
Practical
Expedients
Our
payment terms for sales direct to distributors are substantially less than the one-year collection period that falls within the practical
expedient in determination of whether a significant financing component exists.
Endonovo
Therapeutics, Inc.
Notes
to Condensed Consolidated Financial Statements (continued)
|
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v3.23.4
Patents
|
9 Months Ended |
Sep. 30, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] |
|
Patents |
Note
4 – Patents.
In
December 2017, we acquired from Rio Grande Neurosciences, Inc. (RGN) a patent portfolio for $4,500,000. The earliest patents expire in
2024. The following is a summary of patents less accumulated amortization at September 30, 2023 and December 31, 2022:
Schedule
of Patents
|
|
September
30, 2023 |
|
|
December
31, 2022 |
|
|
|
|
|
|
|
|
Patents |
|
$ |
4,500,000 |
|
|
$ |
4,500,000 |
|
|
|
|
|
|
|
|
|
|
Less
accumulated amortization |
|
|
3,719,740 |
|
|
|
3,234,556 |
|
|
|
|
|
|
|
|
|
|
Patents,
net |
|
$ |
780,260 |
|
|
$ |
1,265,444 |
|
Amortization
expense associated with patents was $485,184 for the nine months ended September 30, 2023.
The
estimated future amortization expense related to patents as of September 30, 2023, is as follows:
Schedule
of Estimated Future Amortization Expense
Twelve Months Ending September 30, | |
Amount | |
| |
| |
2024 | |
$ | 646,192 | |
2025 | |
| 134,068 | |
| |
| | |
Total | |
$ | 780,260 | |
|
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v3.23.4
Notes Payable
|
9 Months Ended |
Sep. 30, 2023 |
Debt Disclosure [Abstract] |
|
Notes Payable |
Note
5- Notes Payable
As
of September 30, 2023, and December 31, 2022, the notes payable activity was as follows:
Schedule
of Notes Payable
| |
September 30, 2023 | | |
December 31, 2022 | |
| |
| | |
| |
Notes payable at beginning of period | |
$ | 7,163,832 | | |
$ | 7,256,930 | |
Notes payable issued | |
| 195,000 | | |
| 465,000 | |
Repayments of notes payable in cash | |
| (40,000 | ) | |
| (14,000 | ) |
Settlement on note payable | |
| (133,650 | ) | |
| (163,826 | ) |
Less amounts converted to stock | |
| (100,000 | ) | |
| (380,272 | ) |
Notes payable at end of period | |
| 7,085,182 | | |
| 7,163,832 | |
Less debt discount | |
| (28,210 | ) | |
| (10,587 | ) |
Note payable, net | |
$ | 7,056,972 | | |
$ | 7,153,245 | |
| |
| | | |
| | |
Notes payable issued to a former related party | |
$ | 104,600 | | |
$ | 112,100 | |
Notes payable issued to non-related parties | |
$ | 6,952,372 | | |
$ | 7,041,145 | |
The
maturity dates on the notes-payable are as follows:
Schedule of Maturity Dates of Notes Payable
| |
Notes
to | | |
| |
12 months ending, | |
Former related party | | |
Non-related parties | | |
Total | |
| |
| | |
| | |
| |
Past due | |
$ | 104,600 | | |
$ | 6,770,582 | | |
$ | 6,875,182 | |
September 30, 2024 | |
| - | | |
| 210,000 | | |
| 210,000 | |
| |
$ | 104,600 | | |
$ | 6,948,082 | | |
$ | 7,085,182 | |
Activity
for the nine months ended September 30, 2023
Fixed
rate notes
During
the nine months ended September 30, 2023, the Company converted $100,000 in principal and $9,000 in accrued interest into 10,900,000
shares of common stock.
During
the nine months ended September 30, 2023, the Company executed an amendment or allonges to three fixed rate notes to extend the maturity
date in exchange for $20,000 payment to the current balance of one note and an aggregate of 1,000,000 shares of common stock to two noteholders
as of September 30, 2023, and $2,500 in extension fee payable at the revised maturity date.
During
the nine months ended September 30, 2023, the Company issued five fixed-rate notes for an aggregate amount of $195,000, which carry interest
between 10% and 15% and with maturity ranging between one to nine (1 to 9) months from issuance.
Endonovo
Therapeutics, Inc.
Notes
to Condensed Consolidated Financial Statements (continued)
As
of September 30, 2023, the Company has a total of twenty-four (24) fixed-rate notes, of which eighteen (18) have a make good provision
for a total principal of $1,440,000 and approximately $338,403 in accrued interest. Balance of fixed-rate notes was $1,849,728 and $1,819,728
as of September 30, 2023, and December 31, 2022, respectively. Accrued interest on fixed-rate notes was approximately $429,500 and $310,960
as of September 30, 2023, and December 31, 2023, respectively.
Such
provision will require the Company to issue additional shares to ensure that the investor can realize a profit of 15% or 18% reselling
the conversion shares. The value of the make good provision was approximately $250,000 as of September 30, 2023 and is reported under
Accounts payable and accrued liabilities in the condensed consolidated balance sheet as of June 30, 2023. In addition, certain fixed-rate
notes include a prepayment provision, which entitles the holder to a 15% cash premium. The Company concluded that such provision was
not deemed material and probable as of September 30, 2023.
Variable-rate
notes
During
the nine months ended September 30, 2023, the Company executed a settlement agreement with one investor to extinguish the remaining principal
balance of a promissory note into 4,300,590 shares of common stock, which resulted in a gain from debt extinguishment of approximately
$77,000.
Fixed
Rate note (former related party)
Notes
payable to a former related party in the aggregate amount of $104,600 were outstanding at September 30, 2023, which are past maturity
date. The notes bear interest between 10% and 12% per annum. During the nine months ended September 30, 2023, the Company repaid $7,500
in principal amount to this former related party. Refer to Note 7- Related Party Transactions.
Activity
for the nine months ended September 30, 2022
Fixed
rates Notes
During
the nine months ended September 30, 2022, the Company issued five (5) fixed rate promissory notes totaling $400,000 for funding of $400,000
with original terms of nine months and interest rates of 15% and 18%. The holder of the promissory note can convert the outstanding unpaid
principal and accrued interest at a fixed conversion rate, subject to standard anti-dilution features, six-month after issuance date.
As
of September 30, 2022, the Company has eighteen (18) fixed-rate promissory notes with an outstanding balance of $1,920,900, of which
$1,045,900 are past maturity. As of September 30, 2022, the Company has a total of fourteen (14) fixed rate notes for total principal
amount of $1,400,000 includes a make good shares provision. Such provision will require the Company to issue additional shares to ensure
that the investor can realize a profit of 15% or 18% reselling the conversion shares. The Company accrued approximately $209,000 related
to the make-good provision as the amount is probable and can be reasonably estimated pursuant to ASC 450 Contingencies. Such amount was
presented as other expense in the condensed consolidated statements of operations.
During
the nine months ended September 30, 2022, the Company converted $124,900 in accrued interest and $214,100 in principal balance into 16,950,000
shares of common stock.
Certain
fixed-rate notes include a prepayment provision, which entitles the holder to a 15% or 18% premium upon cash redemption by the Company.
The prepayment penalty approximates $243,000 as of September 30, 2022, but the Company determined that such liability is not probable
as of September 30, 2022, pursuant to ASC 450 Contingencies.
Variable-rate
notes
The
gross amount of all convertible notes with variable conversion rates outstanding as of September 30, 2022, is $4,607,100, which are all
past maturity. There has been no conversion of notes into the Company’s common stock during the three and nine months ended September
30, 2022.
Endonovo
Therapeutics, Inc.
Notes
to Condensed Consolidated Financial Statements (continued)
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- DefinitionThe entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.
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v3.23.4
Shareholders’ Deficit
|
9 Months Ended |
Sep. 30, 2023 |
Equity [Abstract] |
|
Shareholders’ Deficit |
Note
6 - Shareholders’ Deficit
Preferred
Stock
The
Company has authorized 5,000,000 shares of preferred stock which have been designated as follows:
Schedule of Preferred Stock
| |
Number of Shares Authorized | | |
Number of Shares Outstanding at September 30, 2023 | | |
Par Value | | |
Liquidation Value | |
Series AA | |
| 1,000,000 | | |
| 25,000 | | |
$ | 0.0010 | | |
$ | - | |
Preferred Series B | |
| 50,000 | | |
| 600 | | |
$ | 0.0001 | | |
$ | 100 | |
Preferred Series C | |
| 8,000 | | |
| 738 | | |
$ | 0.0001 | | |
$ | 1,000 | |
Preferred Series D | |
| 20,000 | | |
| - | | |
$ | 0.0001 | | |
$ | 1,000 | |
Undesignated | |
| 3,922,000 | | |
| - | | |
| - | | |
| - | |
Series
AA Preferred Shares
On
February 22, 2013, the Board of Directors of the Company authorized an amendment to the Company’s Articles of Incorporation, as
amended (the “Articles of Incorporation”), in the form of a Certificate of Designation that authorized the issuance of up
to one million (1,000,000) shares of a new series of preferred stock, par value $0.001 per share, designated “Series AA Super Voting
Preferred Stock,” for which the board of director established the rights, preferences and limitations thereof.
Each
holder of outstanding shares of Series AA Super Voting Preferred Stock shall be entitled to one hundred thousand (100,000) votes for
each share of Series AA Super Voting Preferred Stock held on the record date for the determination of stockholders entitled to vote at
each meeting of stockholders of the Company. The Series AA Super Voting Preferred Stockholders will receive no dividends nor any value
on liquidation.
There
was no activity during the nine months ended September 30, 2023. There were 25,000 shares of Series AA Preferred stock outstanding as
of September 30, 2023 and December 31, 2022.
Series
B Convertible Preferred Stock
On
February 7, 2017, the Company filed a certificate of designation for 50,000 shares of Series B Convertible Preferred Stock designated
as Series B (“Series B”) which are authorized and convertible, at the option of the holder, commencing six months from the
date of issuance into common shares and warrants. For each share of Series B, the holder, on conversion, shall receive the stated value
divided by 75% of the market price on the date of purchase of Series B and a three-year warrant exercisable into up to a like amount
of common shares with an exercise price of 150% of the market price as defined in the Certificate of Designation. Dividends shall be
paid only if dividends on the Company’s issued and outstanding Common Stock are paid, and the amount paid to the Series B holder
will be as though the conversion shares had been issued. Series B holders have no voting rights. Upon liquidation, the holder of Series
B, shall be entitled to receive an amount equal to the stated value, $100 per share, plus any accrued and unpaid dividends thereon before
any distribution is made to Series C Secured Redeemable Preferred Stock or common stockholders.
There
was no activity during the nine months ended September 30, 2023. There were 600 shares of Series B outstanding as of September 30, 2023
and December 31, 2022.
Endonovo
Therapeutics, Inc.
Notes
to Condensed Consolidated Financial Statements (continued)
Series
C Convertible Redeemable Preferred Stock
On
December 22, 2017, the Company filed a certificate of designation for 8,000 shares of Series C Secured Redeemable Preferred Stock (“Series
C”). Each share of the C Preferred is entitled to receive a $20 quarterly dividend commencing March 31, 2018, and each quarter
thereafter and is to be redeemed for the stated value, $1,000 per share, plus accrued dividends in cash (i) at the Company’s option,
commencing one year from issuance and (ii) mandatorily as of December 31, 2019. Management determined that the Series C should be classified
as liability per the guidance in ASC 480 Distinguishing Liabilities from Equity as of December 31, 2019. On January 29, 2020, the Company
filed the amended and restated certificate of designation fort its Series C Secured Redeemable Preferred Stock. The amendment changed
the rights of the Series C by (a) removing the requirement to redeem the Series C, (b) removing the obligation to pay dividends on the
Series C, (c) Allowing the holders of shares of Series C to convert the stated value of their shares into common stock of the Company
at 75% of the closing price of such common stock on the day prior to the conversion. The C Preferred does not have any rights to vote
with the common stock.
Upon
liquidation, the holder of Series C, shall be entitled to receive an amount equal to the stated value, $1,000 per share, plus any accrued
and unpaid dividends thereon before any distribution is made to common stockholders but after distributions are made to holders of Series
B.
There
was no activity during the nine months ended September 30, 2023. There were 738 shares of Series C outstanding, as of September 30, 2023
and December 31, 2022
Series
D Convertible Preferred Stock
On
November 11, 2019, the Company filed a certificate of designation for 20,000 shares of Series D Convertible Preferred Stock designated
as Series D (“Series D”), which are authorized and convertible, at the option of the holder, at any time from the date of
issuance, into shares of common shares. On or prior to August 1, 2020, for each share of Series D, the holder, on conversion, shall receive
a number of common shares equal to 0.01% of the Company’s issued and outstanding shares on conversion date and for conversion on
or after August 2, 2020, the holder shall receive conversion shares as though the conversion date was August 1, 2020, with no further
adjustments for issuances by the Company of common stock after August 1, 2020, except for stock split or reverse stock splits of the
common stock. Management classified the Series D in permanent equity as of June 30, 2023.
The
Series D holders have no voting rights. Upon liquidation, the holder of Series D, shall be entitled to receive an amount equal to the
stated value, $1,000 per share, plus any accrued and unpaid dividends thereon before any distribution is made to common stockholders.
During
the six months ended June 30, 2023, the Company issued 5,000,000 shares of common stock upon conversion of the remaining 50 shares of
Series D preferred stock. The Company is also committed to providing additional shares of common stock if the holders of Series D do
not realize a 15% profit on the resale of the conversion shares. As of June 30, 2023, and December 31, 2022, there were 0 and 50 shares
of Series D outstanding, respectively.
Common
Stock
Activity
during the nine months ended September 30, 2023
During
the nine months ended September 30, 2023, the Company issued 10,900,000 shares of common stock for the conversion of $109,000 of principal
accrued interest from one note holder.
During
the nine months ended September 30, 2023, the Company issued 1,507,277 shares of common stock pursuant to a make-good provision, which
resulted in a loss on debt extinguishment of $24,870.
During
the nine months ended September 30, 2023, the Company issued 4,300,590 shares of common stock pursuant to a debt settlement of aggregate
principal of $113,650, resulting in a gain on debt extinguishment of approximately $77,000.
During
the nine months ended September 30, 2023, the Company issued 1,667,000 shares of common stock pursuant to a deferred compensation settlement
with a fair value of $24,338.
During
the nine months ended September 30, 2023, the Company issued 5,967,590 shares of common stock pursuant to a debt settlement.
During
the nine months ended September 30, 2023, the Company issued 43,800,000 shares of common stock for services for a total fair value of
$720,562
During
the nine months ended September 30, 2023, the Company issued 5,000,000 shares of common stock in exchange for 50 shares of Series D Preferred,
which resulted in an inducement loss of $39,398 recorded as a deemed dividend in the shareholders’ deficit as of September 30,
2023.
During
the nine months ended September 30, 2023, the Company issued 5 1/2 units or the equivalent of 27,500,000 shares of common stock pursuant
to a private placement for total net cash receipt of $253,000.
During
the nine months ended September 30, 2023, the Company issued 1,850,000 commitment shares pursuant to executed securities purchase agreements
with an estimated fair value of $25,625.
During the nine months ended September 30, 2023, the Company issued 1,000,000 shares for note extension and pursuant
to executed allonges with an estimated fair value of $11,125.
Activity
during the nine months ended September 30, 2022
During
the nine months ended September 30, 2022, the Company issued 16,950,000 shares of common stock for the conversion of $214,100 of principal
notes and accrued interest in the amount of $124,900.
During
the nine months ended September 30, 2022, the Company issued 2,428,777 shares of common stock pursuant to a make-whole provision from
an April 2021 debt settlement with one investor.
During
the nine months ended September 30, 2022, the Company issued 3,100,000 shares of common stock as commitment shares in connection with
promissory notes.
During
the nine months ended September 30, 2022, the Company issued 62,250,000 shares of common stock for services for total fair value of $1,281,900.
Endonovo
Therapeutics, Inc.
Notes
to Condensed Consolidated Financial Statements (continued)
Stock
Options
The
balance of all stock options outstanding as of September 30, 2023, is as follows:
Schedule
of Stock Options Outstanding
| |
| | |
Weighted Average | | |
Weighted Average Remaining | | |
Aggregate | |
| |
| | |
Exercise Price | | |
Contractual | | |
Intrinsic | |
| |
Options | | |
Per Share | | |
Term (years) | | |
Value | |
Outstanding at December 31, 2022 | |
| 3,012,410 | | |
$ | 0.22 | | |
| 3.40 | | |
| 31,200 | |
Granted | |
| 3,000,000 | | |
$ | 0.01 | | |
| - | | |
| | |
Cancelled | |
| (660 | ) | |
$ | 11.60 | | |
| - | | |
| | |
Exercised | |
| - | | |
$ | - | | |
| - | | |
| | |
Outstanding at September 30, 2023 | |
| 6,011,750 | | |
$ | 0.12 | | |
| 3.06 | | |
$ | - | |
| |
| | | |
| | | |
| | | |
| | |
Exercisable at September 30, 2023 | |
| 1,011,750 | | |
$ | 0.64 | | |
| 1.83 | | |
$ | - | |
Share-based
compensation expenses for the nine months ended September 30, 2023 and 2022, totaled approximately $6,000 and $0, respectively. The remaining
stock-based compensation to be recognized is approximately $36,000, which will be recognized over 2.5 years.
Warrants
The
balance of all warrants outstanding as of September 30, 2023, is as follows:
Schedule
of Warrants Outstanding
| |
Outstanding Warrants | | |
| |
| |
| | |
Weighted Average | | |
Weighted Average Remaining | |
| |
| | |
Exercise Price | | |
Contractual | |
| |
Shares | | |
Per Share | | |
Term (years) | |
Outstanding at December 31, 2022 | |
| 2,000 | | |
$ | 50.0 | | |
| 0.22 | |
Granted | |
| - | | |
$ | - | | |
| - | |
Cancelled | |
| (2,000 | ) | |
$ | 50.0 | | |
| - | |
Exercised | |
| - | | |
$ | - | | |
| | |
Outstanding at September 30, 2023 | |
| - | | |
$ | - | | |
| - | |
| |
| | | |
| | | |
| | |
Exercisable at September 30, 2023 | |
| - | | |
$ | - | | |
| - | |
Endonovo
Therapeutics, Inc.
Notes
to Condensed Consolidated Financial Statements (continued)
|
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v3.23.4
Related Party and former related parties Transactions.
|
9 Months Ended |
Sep. 30, 2023 |
Related Party Transactions [Abstract] |
|
Related Party and former related parties Transactions. |
Note
7 – Related Party and former related parties Transactions.
One
executive officer of the Company has agreed to defer a portion of his compensation until cash flow improves. As of September 30, 2023,
the balance of the deferred compensation was $630,568, which reflects $225,000 accrual of deferred compensation and $118,250 of cash
repayment of deferred compensation during the nine months ended September 30, 2023.
As
of September 30, 2023, the Company issued for the issuance of 20,000,000 shares of the Company’s common stock with a fair value
of $282,000. Such balance is reported under accounts payable and accrued liabilities related party in the condensed consolidated balance
sheet as of September 30, 2023.
One
former executive of the Company has agreed to defer a portion of his compensation until cash flow improves. As of September 30, 2023,
the balance of his deferred compensation was $632,257. No activity occurred during the nine months ended September 30, 2023.
From
time-to-time officer of the Company advance monies to the Company to cover costs. The balance of short-term advances due to one officer
of the Company at September 30, 2023, was $5,340 and is included in the Company’s accounts payable and accrued liabilities balance
as of September 30, 2023. During the nine months ended September 30, 2023, the Company’s executive officer advanced an aggregate
amount of $5,215 for corporate expenses, and $2,500 was repaid back as of September 30, 2023.
As
of September 30, 2023, notes payable remained outstanding to the former President of the Company, in the amount of $104,600. As of September
30, 2023, accrued interests on these notes payable totaled approximately $88,045, and are included in accrued expenses on the condensed
consolidated balance sheets.
|
X |
- DefinitionThe entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
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v3.23.4
Fair Value Measurements
|
9 Months Ended |
Sep. 30, 2023 |
Fair Value Disclosures [Abstract] |
|
Fair Value Measurements |
Note
8 – Fair Value Measurements
The
Company issued Variable Debentures, which contained variable conversion rates based on unknown future prices of the Company’s common
stock. This results in a conversion feature. The Company measures the conversion feature using the Black Scholes option pricing model
using the following assumptions:
Schedule
of Conversion Feature Using Black Scholes Option Pricing Model
| |
| Nine months ended September 30, | |
| |
| 2023 | | |
| 2022 | |
| |
| | | |
| | |
Expected term | |
| 1 month | | |
| 1 month | |
Exercise price | |
$ | 0.0066-$0.0151 | | |
$ | 0.004 – $0.015 | |
Expected volatility | |
| 154%-158 | % | |
| 152%-169 | % |
Expected dividends | |
| None | | |
| None | |
Risk-free interest rate | |
| 4.64%-5.40 | % | |
| 1.63% to 2.80 | % |
Forfeitures | |
| None | | |
| None | |
The
assumptions used in determining fair value represent management’s best estimates, but these estimates involve inherent uncertainties
and the application of management’s judgment. As a result, if factors change, including changes in the market value of the Company’s
common stock, managements’ assessment, or significant fluctuations in the volatility of the trading market for the Company’s
common stock, the Company’s fair value estimates could be materially different in the future.
The
Company computes the fair value of the derivative liability at each reporting period and the change in the fair value is recorded as
non-cash expense or income. The key component in the value of the derivative liability is the Company’s stock price, which is subject
to significant fluctuation and is not under its control. The resulting effect on net income (loss) is therefore subject to significant
fluctuation and will continue to be so until the Company’s variable debentures, which the convertible feature is associated with,
are converted into common stock or paid in full in cash. Assuming all other fair value inputs remain constant, the Company will record
non-cash expense when its stock price increases and non-cash income when its stock price decreases. Company will perform valuation of
derivative liabilities as a part of its 2023 10-K filing.
Endonovo
Therapeutics, Inc.
Notes
to Condensed Consolidated Financial Statements (continued)
The
following table presents changes in the liabilities with significant unobservable inputs (level 3) for the nine months ended September
30, 2023:
Schedule
of Fair Value of Derivative Liability
| |
Derivative | |
| |
Liability | |
Balance December 31, 2022 | |
$ | 17,359,064 | |
| |
| | |
Settlement debt | |
| (10,769 | ) |
Change in estimated fair value | |
| (11,445,466 | ) |
| |
| | |
Balance September 30, 2023 | |
$ | 5,902,829 | |
Accounting
guidance on fair value measurements and disclosures defines fair value, establishes a framework for measuring the fair value of assets
and liabilities using a hierarchy system, and defines required disclosures. It clarifies that fair value is the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the reporting
entity transacts business.
The
Company’s balance sheet contains derivative liabilities that are recorded at fair value on a recurring basis. The three-level valuation
hierarchy for disclosure of fair value is as follows:
Level
1: uses quoted market prices in active markets for identical assets or liabilities.
Level
2: uses observable market-based inputs or unobservable inputs that are corroborated by market data.
Level
3: uses unobservable inputs that are not corroborated by market data.
The
fair value of the Company’s recorded derivative liability is determined based on unobservable inputs that are not corroborated
by market data, which require a Level 3 classification. A Black Scholes option pricing model was used to determine the fair value. The
Company records derivative liability on the condensed consolidated balance sheets at fair value with changes in fair value recorded in
the condensed consolidated statements of operation.
The
following table presents balances in the liabilities with significant unobservable inputs (Level 3) as of September 30, 2023:
Schedule
of Liabilities Significant Unobservable Inputs
| |
Fair Value Measurements Using |
| |
Quoted Prices in | |
| | |
| | |
| |
| |
Active Markets for | |
Significant Other | | |
Significant | | |
| |
| |
Identical Assets | |
Observable Inputs | | |
Unobservable Inputs | | |
| |
| |
(Level 1) | |
(Level 2) | | |
(Level 3) | | |
Total | |
| |
| |
| | |
| | |
| |
As of September 30, 2023 | |
| |
| | | |
| | | |
| | |
Derivative liability | $ |
- | |
$ | - | | |
$ | 5,902,829 | | |
$ | 5,902,829 | |
Total | $ |
- | |
$ | - | | |
$ | 5,902,829 | | |
$ | 5,902,829 | |
Endonovo
Therapeutics, Inc.
Notes
to Condensed Consolidated Financial Statements (continued)
|
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- DefinitionThe entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.
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v3.23.4
Commitments and Contingencies
|
9 Months Ended |
Sep. 30, 2023 |
Commitments and Contingencies Disclosure [Abstract] |
|
Commitments and Contingencies |
Note
9 – Commitments and Contingencies
Legal
Matters
The
Company is subject to certain legal proceedings, which it considers routine to its business activities. As of September 30, 2023, the
Company believes, after consultation with legal counsel, that the ultimate outcome of such legal proceedings, whether individually or
in the aggregate, is not likely to have a material adverse effect on the Company’s financial position, results of operations or
liquidity.
|
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- DefinitionThe entire disclosure for commitments and contingencies.
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v3.23.4
Concentrations
|
9 Months Ended |
Sep. 30, 2023 |
Risks and Uncertainties [Abstract] |
|
Concentrations |
Note
10 – Concentrations.
Sales
During
the nine months ended September 30, 2023, we had one significant customer, which accounted for approximately 100% of sales. In addition,
the Company generated all of its royalty/licensing revenue from one former related party.
Supplier
We
also have a single source for our bioelectric medical devices, which account for 100% of our sales. The interruption of products provided
by this supplier would adversely affect our business and financial condition unless an alternative source of products could be found.
|
X |
- DefinitionThe entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.
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v3.23.4
Subsequent Events
|
9 Months Ended |
Sep. 30, 2023 |
Subsequent Events [Abstract] |
|
Subsequent Events |
Note
11 – Subsequent Events
Management
has evaluated events that have occurred subsequent to the date of these consolidated condensed financial statements and has determined
that no such reportable subsequent events exist through the date the financial statements were issued in accordance with FASB ASC Topic
855, “Subsequent Events.”
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v3.23.4
Summary of significant accounting policies (Policies)
|
9 Months Ended |
Sep. 30, 2023 |
Accounting Policies [Abstract] |
|
Basis of Presentation and Principles of Consolidation |
Basis
of Presentation and Principles of Consolidation
The
accompanying unaudited interim condensed consolidated financial statements have been presented in accordance with accounting principles
generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Article
8 of Regulation S-X. Accordingly, the financial statements do not include all of the information and notes required by GAAP for complete
financial statements. The accompanying consolidated condensed balance sheet as of September 30, 2023, the consolidated statements of
operations for the three and nine months ended September 30, 2023 and 2022, the consolidated statements of cash flows for the nine months
ended September 30, 2023 and 2022, and the consolidated statements of shareholders’ deficit for the three and nine months ended
September 30, 2023 and 2022 are unaudited; however, in the opinion of management such interim consolidated financial statements reflect
all adjustments, consisting solely of normal recurring adjustments, necessary for a fair presentation of the results for the periods
presented. The accompanying financial information should be read in conjunction with the financial statements and the notes thereto in
the Company’s most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission (the “SEC”)
on April 17, 2023. The results of operations for the period presented are not necessarily indicative of the results that might be expected
for future interim periods or for the full year.
|
Liquidity and Going Concern |
Liquidity
and Going Concern
The
Company’s unaudited condensed consolidated financial statements are prepared using GAAP applicable to a going concern, which contemplates
the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing
source of revenues sufficient to cover its operating costs and to continue as a going concern. The ability of the Company to continue
as a going concern is dependent on the Company’s ability to obtain adequate capital to fund operating losses until it becomes profitable.
As
of September 30, 2023, the Company had cash of approximately $0 and a working capital deficiency of approximately $23.1 million. During
the nine months ended September 30, 2023, the Company used approximately $0.4 million of cash in its operation. The Company has incurred
recurring losses resulting in an accumulated deficit of approximately $66.6 million as of September 30, 2023. These conditions raise
substantial doubt as to its ability to continue as going concern within one year from issuance date of these unaudited consolidated financial
statements.
Endonovo
Therapeutics, Inc.
Notes
to Condensed Consolidated Financial Statements (continued)
During
the nine months ended September 30, 2023, the Company has raised $0.5 million in equity and debt financings. The Company will continue
to raise additional capital through either debt or equity financing to fund its operations. However, there is no assurance that the Company
can raise enough funds or generate sufficient revenues to pay its obligations as they become due, which raises substantial doubt about
our ability to continue as a going concern.
On
September 26, 2022, the Company entered into an asset purchase agreement with a Company, which is engaged in the business of providing
and laying of concrete primarily for residential tract developers, pursuant to which the Company will acquire all of the assets and liabilities
for approximately $25.2 million. The Company intends to raise the consideration through debt and equity financing. Such a transaction
has not yet closed at the report date.
No
adjustments have been made to the carrying value of assets or liabilities as a result of this uncertainty. To reduce the risk of not
being able to continue as a going concern, management is commercializing its FDA cleared and CE marked products and has commenced implementing
its business plan to materialize revenues from potential future license agreements, and or diversifying its business activities with
the potential acquisition of specialty construction company. The Company will continue to raise additional capital through the issuance
of fixed-rate conversion feature promissory notes.
|
Use of Estimates |
Use
of Estimates
The
preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and
accompanying notes. Critical estimates include the assessment of impairment of finite lived intangibles, the valuation of the derivative
liability, the valuation of warrants and stock options, and the valuation of deferred income tax assets. Management uses its historical
records and knowledge of its business in making these estimates. Actual results could differ from these estimates.
|
Earnings (Loss) Per Share |
Earnings
(Loss) Per Share
The
Company utilizes Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 260,
“Earnings per Share.” Basic earnings (loss) per share is computed based on the earnings (loss) attributable to common shareholders
divided by the weighted average number of shares outstanding for the period excluding any dilutive effects of options, warrants, unvested
share awards and convertible securities. Diluted earnings (loss) per common share is calculated similar to basic earnings (loss) per
share except that the denominator is increased to include additional common share equivalents available upon exercise of stock option,
warrants, common shares issuable under convertible debt and restricted stock using the treasury stock method. Dilutive common share equivalents
include the dilutive effect of in-the-money share equivalents, which are calculated based on the average share price for each period
using the treasury stock method, excluding any common share equivalents if their effect would be anti-dilutive. In periods in which a
net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation.
Securities that are excluded from the calculation of weighted average dilutive common shares because their inclusion would have been
antidilutive for the nine months ended September 30, 2023, include stock options, warrants, and notes payable.
The
Company has 6,011,750 stock options to purchase an equivalent number of shares of common stock outstanding at September 30, 2023. The
Company has 263,070 options and 2,000 warrants to purchase common stock outstanding at September 30, 2022.
The
components of basic and diluted income (loss) per share for the nine months ended September 30, 2023 and 2022 were as follows:
Schedule
of Earnings Per Share Basic and Diluted
| |
2023 | | |
2022 | |
| |
Nine months ended September 30, | |
| |
2023 | | |
2022 | |
Numerator: | |
| | |
| |
Net income (loss) attributable to common shareholders | |
$ | 8,857,992 | | |
$ | (5,542,700 | ) |
| |
| | | |
| | |
Effect of dilutive securities | |
| | | |
| | |
Convertible notes | |
| (10,823,217 | ) | |
| - | |
Net loss for diluted earnings per share | |
$ | (2,295,225 | ) | |
$ | (5,542,700 | ) |
Denominator: | |
| | | |
| | |
Weighted-average number of common shares outstanding during the period | |
| 276,355,156 | | |
| 55,303,026 | |
Dilutive effect of convertible notes payable | |
| 1,074,413,187 | | |
| - | |
Common stock and common stock equivalents used for diluted loss per share | |
| 1,350,768,342 | | |
| 55,303,026 | |
The
components of basic and diluted income (loss) per share for the three months ended September 30, 2023 and 2022 were as follows:
| |
2023 | | |
2022 | |
| |
Three months ended September 30, | |
| |
2023 | | |
2022 | |
Numerator: | |
| | |
| |
Net income (loss) attributable to common shareholders | |
$ | (766,170 | ) | |
$ | (603,360 | ) |
| |
| | | |
| | |
Effect of dilutive securities | |
| | | |
| | |
Convertible notes | |
| 285,892 | | |
| - | |
Net loss for diluted earnings per share | |
$ | (480,278 | ) | |
$ | (603,360 | ) |
Denominator: | |
| | | |
| | |
Weighted-average number of common shares outstanding during the period | |
| 298,391,943 | | |
| 153,599,760 | |
Dilutive effect of convertible notes payable | |
| 1,074,413,187 | | |
| - | |
Common stock and common stock equivalents used for diluted loss per share | |
| 1,372,805,130 | | |
| 153,599,760 | |
|
Accounts Receivable |
Accounts
Receivable
The
Company uses the specific identification method for recording the provision for doubtful accounts, which was $0 as of September 30, 2023
and December 31, 2022. Account receivables are written off when all collection attempts have failed.
Endonovo
Therapeutics, Inc.
Notes
to Condensed Consolidated Financial Statements (continued)
|
Newly Adopted Accounting Principles |
Newly
Adopted Accounting Principles
The
Company has evaluated all the recent accounting pronouncements and determined that there are no other accounting pronouncements that
will have a material effect on the Company’s consolidated financial statements.
|
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v3.23.4
Summary of significant accounting policies (Tables)
|
9 Months Ended |
Sep. 30, 2023 |
Accounting Policies [Abstract] |
|
Schedule of Earnings Per Share Basic and Diluted |
The
components of basic and diluted income (loss) per share for the nine months ended September 30, 2023 and 2022 were as follows:
Schedule
of Earnings Per Share Basic and Diluted
| |
2023 | | |
2022 | |
| |
Nine months ended September 30, | |
| |
2023 | | |
2022 | |
Numerator: | |
| | |
| |
Net income (loss) attributable to common shareholders | |
$ | 8,857,992 | | |
$ | (5,542,700 | ) |
| |
| | | |
| | |
Effect of dilutive securities | |
| | | |
| | |
Convertible notes | |
| (10,823,217 | ) | |
| - | |
Net loss for diluted earnings per share | |
$ | (2,295,225 | ) | |
$ | (5,542,700 | ) |
Denominator: | |
| | | |
| | |
Weighted-average number of common shares outstanding during the period | |
| 276,355,156 | | |
| 55,303,026 | |
Dilutive effect of convertible notes payable | |
| 1,074,413,187 | | |
| - | |
Common stock and common stock equivalents used for diluted loss per share | |
| 1,350,768,342 | | |
| 55,303,026 | |
The
components of basic and diluted income (loss) per share for the three months ended September 30, 2023 and 2022 were as follows:
| |
2023 | | |
2022 | |
| |
Three months ended September 30, | |
| |
2023 | | |
2022 | |
Numerator: | |
| | |
| |
Net income (loss) attributable to common shareholders | |
$ | (766,170 | ) | |
$ | (603,360 | ) |
| |
| | | |
| | |
Effect of dilutive securities | |
| | | |
| | |
Convertible notes | |
| 285,892 | | |
| - | |
Net loss for diluted earnings per share | |
$ | (480,278 | ) | |
$ | (603,360 | ) |
Denominator: | |
| | | |
| | |
Weighted-average number of common shares outstanding during the period | |
| 298,391,943 | | |
| 153,599,760 | |
Dilutive effect of convertible notes payable | |
| 1,074,413,187 | | |
| - | |
Common stock and common stock equivalents used for diluted loss per share | |
| 1,372,805,130 | | |
| 153,599,760 | |
|
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v3.23.4
Revenue Recognition (Tables)
|
9 Months Ended |
Sep. 30, 2023 |
Revenue from Contract with Customer [Abstract] |
|
Schedule of Source of Revenue |
For
the three and nine months ended September 30, 2023 and 2022, the sources of revenue were as follows:
Schedule
of Source of Revenue
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| |
Three Months Ended
September 30, | | |
Nine Months Ended September 30, | |
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| |
| | |
| | |
| | |
| |
Royalty/licensing, net | |
$ | - | | |
$ | - | | |
$ | 126,520 | | |
$ | - | |
Direct sales- medical care providers, gross | |
| 1,520 | | |
| 10,960 | | |
| 7,740 | | |
| 13,892 | |
Total sources of revenue | |
$ | 1,520 | | |
$ | 10,960 | | |
$ | 134,260 | | |
$ | 13,892 | |
|
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v3.23.4
Patents (Tables)
|
9 Months Ended |
Sep. 30, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] |
|
Schedule of Patents |
Schedule
of Patents
|
|
September
30, 2023 |
|
|
December
31, 2022 |
|
|
|
|
|
|
|
|
Patents |
|
$ |
4,500,000 |
|
|
$ |
4,500,000 |
|
|
|
|
|
|
|
|
|
|
Less
accumulated amortization |
|
|
3,719,740 |
|
|
|
3,234,556 |
|
|
|
|
|
|
|
|
|
|
Patents,
net |
|
$ |
780,260 |
|
|
$ |
1,265,444 |
|
|
Schedule of Estimated Future Amortization Expense |
The
estimated future amortization expense related to patents as of September 30, 2023, is as follows:
Schedule
of Estimated Future Amortization Expense
Twelve Months Ending September 30, | |
Amount | |
| |
| |
2024 | |
$ | 646,192 | |
2025 | |
| 134,068 | |
| |
| | |
Total | |
$ | 780,260 | |
|
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v3.23.4
Notes Payable (Tables)
|
9 Months Ended |
Sep. 30, 2023 |
Debt Disclosure [Abstract] |
|
Schedule of Notes Payable |
As
of September 30, 2023, and December 31, 2022, the notes payable activity was as follows:
Schedule
of Notes Payable
| |
September 30, 2023 | | |
December 31, 2022 | |
| |
| | |
| |
Notes payable at beginning of period | |
$ | 7,163,832 | | |
$ | 7,256,930 | |
Notes payable issued | |
| 195,000 | | |
| 465,000 | |
Repayments of notes payable in cash | |
| (40,000 | ) | |
| (14,000 | ) |
Settlement on note payable | |
| (133,650 | ) | |
| (163,826 | ) |
Less amounts converted to stock | |
| (100,000 | ) | |
| (380,272 | ) |
Notes payable at end of period | |
| 7,085,182 | | |
| 7,163,832 | |
Less debt discount | |
| (28,210 | ) | |
| (10,587 | ) |
Note payable, net | |
$ | 7,056,972 | | |
$ | 7,153,245 | |
| |
| | | |
| | |
Notes payable issued to a former related party | |
$ | 104,600 | | |
$ | 112,100 | |
Notes payable issued to non-related parties | |
$ | 6,952,372 | | |
$ | 7,041,145 | |
|
Schedule of Maturity Dates of Notes Payable |
The
maturity dates on the notes-payable are as follows:
Schedule of Maturity Dates of Notes Payable
| |
Notes
to | | |
| |
12 months ending, | |
Former related party | | |
Non-related parties | | |
Total | |
| |
| | |
| | |
| |
Past due | |
$ | 104,600 | | |
$ | 6,770,582 | | |
$ | 6,875,182 | |
September 30, 2024 | |
| - | | |
| 210,000 | | |
| 210,000 | |
| |
$ | 104,600 | | |
$ | 6,948,082 | | |
$ | 7,085,182 | |
|
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v3.23.4
Shareholders’ Deficit (Tables)
|
9 Months Ended |
Sep. 30, 2023 |
Equity [Abstract] |
|
Schedule of Preferred Stock |
The
Company has authorized 5,000,000 shares of preferred stock which have been designated as follows:
Schedule of Preferred Stock
| |
Number of Shares Authorized | | |
Number of Shares Outstanding at September 30, 2023 | | |
Par Value | | |
Liquidation Value | |
Series AA | |
| 1,000,000 | | |
| 25,000 | | |
$ | 0.0010 | | |
$ | - | |
Preferred Series B | |
| 50,000 | | |
| 600 | | |
$ | 0.0001 | | |
$ | 100 | |
Preferred Series C | |
| 8,000 | | |
| 738 | | |
$ | 0.0001 | | |
$ | 1,000 | |
Preferred Series D | |
| 20,000 | | |
| - | | |
$ | 0.0001 | | |
$ | 1,000 | |
Undesignated | |
| 3,922,000 | | |
| - | | |
| - | | |
| - | |
|
Schedule of Stock Options Outstanding |
The
balance of all stock options outstanding as of September 30, 2023, is as follows:
Schedule
of Stock Options Outstanding
| |
| | |
Weighted Average | | |
Weighted Average Remaining | | |
Aggregate | |
| |
| | |
Exercise Price | | |
Contractual | | |
Intrinsic | |
| |
Options | | |
Per Share | | |
Term (years) | | |
Value | |
Outstanding at December 31, 2022 | |
| 3,012,410 | | |
$ | 0.22 | | |
| 3.40 | | |
| 31,200 | |
Granted | |
| 3,000,000 | | |
$ | 0.01 | | |
| - | | |
| | |
Cancelled | |
| (660 | ) | |
$ | 11.60 | | |
| - | | |
| | |
Exercised | |
| - | | |
$ | - | | |
| - | | |
| | |
Outstanding at September 30, 2023 | |
| 6,011,750 | | |
$ | 0.12 | | |
| 3.06 | | |
$ | - | |
| |
| | | |
| | | |
| | | |
| | |
Exercisable at September 30, 2023 | |
| 1,011,750 | | |
$ | 0.64 | | |
| 1.83 | | |
$ | - | |
|
Schedule of Warrants Outstanding |
The
balance of all warrants outstanding as of September 30, 2023, is as follows:
Schedule
of Warrants Outstanding
| |
Outstanding Warrants | | |
| |
| |
| | |
Weighted Average | | |
Weighted Average Remaining | |
| |
| | |
Exercise Price | | |
Contractual | |
| |
Shares | | |
Per Share | | |
Term (years) | |
Outstanding at December 31, 2022 | |
| 2,000 | | |
$ | 50.0 | | |
| 0.22 | |
Granted | |
| - | | |
$ | - | | |
| - | |
Cancelled | |
| (2,000 | ) | |
$ | 50.0 | | |
| - | |
Exercised | |
| - | | |
$ | - | | |
| | |
Outstanding at September 30, 2023 | |
| - | | |
$ | - | | |
| - | |
| |
| | | |
| | | |
| | |
Exercisable at September 30, 2023 | |
| - | | |
$ | - | | |
| - | |
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v3.23.4
Fair Value Measurements (Tables)
|
9 Months Ended |
Sep. 30, 2023 |
Fair Value Disclosures [Abstract] |
|
Schedule of Conversion Feature Using Black Scholes Option Pricing Model |
Schedule
of Conversion Feature Using Black Scholes Option Pricing Model
| |
| Nine months ended September 30, | |
| |
| 2023 | | |
| 2022 | |
| |
| | | |
| | |
Expected term | |
| 1 month | | |
| 1 month | |
Exercise price | |
$ | 0.0066-$0.0151 | | |
$ | 0.004 – $0.015 | |
Expected volatility | |
| 154%-158 | % | |
| 152%-169 | % |
Expected dividends | |
| None | | |
| None | |
Risk-free interest rate | |
| 4.64%-5.40 | % | |
| 1.63% to 2.80 | % |
Forfeitures | |
| None | | |
| None | |
|
Schedule of Fair Value of Derivative Liability |
The
following table presents changes in the liabilities with significant unobservable inputs (level 3) for the nine months ended September
30, 2023:
Schedule
of Fair Value of Derivative Liability
| |
Derivative | |
| |
Liability | |
Balance December 31, 2022 | |
$ | 17,359,064 | |
| |
| | |
Settlement debt | |
| (10,769 | ) |
Change in estimated fair value | |
| (11,445,466 | ) |
| |
| | |
Balance September 30, 2023 | |
$ | 5,902,829 | |
|
Schedule of Liabilities Significant Unobservable Inputs |
The
following table presents balances in the liabilities with significant unobservable inputs (Level 3) as of September 30, 2023:
Schedule
of Liabilities Significant Unobservable Inputs
| |
Fair Value Measurements Using |
| |
Quoted Prices in | |
| | |
| | |
| |
| |
Active Markets for | |
Significant Other | | |
Significant | | |
| |
| |
Identical Assets | |
Observable Inputs | | |
Unobservable Inputs | | |
| |
| |
(Level 1) | |
(Level 2) | | |
(Level 3) | | |
Total | |
| |
| |
| | |
| | |
| |
As of September 30, 2023 | |
| |
| | | |
| | | |
| | |
Derivative liability | $ |
- | |
$ | - | | |
$ | 5,902,829 | | |
$ | 5,902,829 | |
Total | $ |
- | |
$ | - | | |
$ | 5,902,829 | | |
$ | 5,902,829 | |
|
X |
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v3.23.4
Schedule of Earnings Per Share Basic and Diluted (Details) - USD ($)
|
3 Months Ended |
9 Months Ended |
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Accounting Policies [Abstract] |
|
|
|
|
Net income (loss) attributable to common shareholders |
$ (766,170)
|
$ (603,360)
|
$ 8,857,992
|
$ (5,542,700)
|
Convertible notes |
285,892
|
|
(10,823,217)
|
|
Net loss for diluted earnings per share |
$ (480,278)
|
$ (603,360)
|
$ (2,295,225)
|
$ (5,542,700)
|
Weighted-average number of common shares outstanding during the period |
298,391,943
|
153,599,760
|
276,355,156
|
55,303,026
|
Dilutive effect of convertible notes payable |
1,074,413,187
|
|
1,074,413,187
|
|
Common stock and common stock equivalents used for diluted loss per share |
1,372,805,130
|
153,599,760
|
1,350,768,342
|
55,303,026
|
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v3.23.4
Summary of significant accounting policies (Details Narrative) - USD ($)
|
|
3 Months Ended |
9 Months Ended |
|
Sep. 26, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] |
|
|
|
|
|
|
Cash |
|
$ 0
|
|
$ 0
|
|
|
Working capital |
|
23,100,000
|
|
23,100,000
|
|
|
Net cash provided by (used in) operating activities |
|
|
|
404,363
|
$ 453,297
|
|
Accumulated deficit |
|
$ 66,630,590
|
|
66,630,590
|
|
$ 75,119,183
|
Proceeds from equity financing |
|
|
|
$ 500,000
|
|
|
Anti dilutive shares |
|
1,074,413,187
|
|
1,074,413,187
|
|
|
Accounts receivable allowance for credit loss, current |
|
$ 0
|
|
$ 0
|
|
$ 0
|
Share-Based Payment Arrangement, Option [Member] |
|
|
|
|
|
|
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] |
|
|
|
|
|
|
Anti dilutive shares |
|
|
|
6,011,750
|
263,070
|
|
Warrant [Member] |
|
|
|
|
|
|
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] |
|
|
|
|
|
|
Anti dilutive shares |
|
|
|
|
2,000
|
|
Assets Purchase Agreement [Member] |
|
|
|
|
|
|
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] |
|
|
|
|
|
|
Purchase of assets and Liabilities |
$ 25,200,000
|
|
|
|
|
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v3.23.4
Schedule of Source of Revenue (Details) - USD ($)
|
3 Months Ended |
9 Months Ended |
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Disaggregation of Revenue [Line Items] |
|
|
|
|
Total sources of revenue |
$ 1,520
|
$ 10,960
|
$ 134,260
|
$ 13,892
|
Royalty/Licensing, Net [Member] |
|
|
|
|
Disaggregation of Revenue [Line Items] |
|
|
|
|
Total sources of revenue |
|
|
126,520
|
|
Direct Sales Medical Care Providers Gross [Member] |
|
|
|
|
Disaggregation of Revenue [Line Items] |
|
|
|
|
Total sources of revenue |
$ 1,520
|
$ 10,960
|
$ 7,740
|
$ 13,892
|
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v3.23.4
Schedule of Patents (Details) - USD ($)
|
Sep. 30, 2023 |
Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] |
|
|
Patents |
$ 4,500,000
|
$ 4,500,000
|
Less accumulated amortization |
3,719,740
|
3,234,556
|
Patents, net |
$ 780,260
|
$ 1,265,444
|
X |
- DefinitionAccumulated amount of amortization of assets, excluding financial assets and goodwill, lacking physical substance with a finite life.
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v3.23.4
Schedule of Notes Payable (Details) - USD ($)
|
9 Months Ended |
12 Months Ended |
Sep. 30, 2023 |
Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] |
|
|
Notes payable at beginning of period |
$ 7,163,832
|
$ 7,256,930
|
Notes payable issued |
195,000
|
465,000
|
Repayments of notes payable in cash |
(40,000)
|
(14,000)
|
Settlement on note payable |
(133,650)
|
(163,826)
|
Less amounts converted to stock |
(100,000)
|
(380,272)
|
Notes payable at end of period |
7,085,182
|
7,163,832
|
Less debt discount |
(28,210)
|
(10,587)
|
Note payable, net |
7,056,972
|
7,153,245
|
Former Related Party [Member] |
|
|
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|
|
Notes payable |
104,600
|
112,100
|
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|
|
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|
|
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|
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|
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v3.23.4
Schedule of Maturity Dates of Notes Payable (Details)
|
Sep. 30, 2023
USD ($)
|
Defined Benefit Plan Disclosure [Line Items] |
|
Past due |
$ 6,875,182
|
June 30, 2024 |
210,000
|
Total |
7,085,182
|
Former Related Party [Member] |
|
Defined Benefit Plan Disclosure [Line Items] |
|
Past due |
104,600
|
June 30, 2024 |
|
Total |
104,600
|
Nonrelated Party [Member] |
|
Defined Benefit Plan Disclosure [Line Items] |
|
Past due |
6,770,582
|
June 30, 2024 |
210,000
|
Total |
$ 6,948,082
|
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v3.23.4
Notes Payable (Details Narrative) - USD ($)
|
3 Months Ended |
9 Months Ended |
12 Months Ended |
|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Debt Instrument [Line Items] |
|
|
|
|
|
|
Debt conversion, stock issued value |
|
|
$ 100,000
|
$ 214,100
|
|
|
Debt instrument, accrued interest |
|
|
$ 9,000
|
|
|
|
Debt conversion, stock issued shares |
|
|
10,900,000
|
16,950,000
|
|
|
Principal payment of debt |
|
|
$ 20,000
|
|
|
|
Number of shares issued |
1,000,000
|
|
|
|
|
|
Extension fee payable |
|
|
2,500
|
|
|
|
Note payable issued |
|
|
195,000
|
|
$ 465,000
|
|
Principal amount |
$ 1,440,000
|
|
1,440,000
|
|
|
|
Accrued interest |
338,403
|
$ 124,900
|
338,403
|
$ 124,900
|
|
|
Notes payable |
7,085,182
|
|
$ 7,085,182
|
|
7,163,832
|
$ 7,256,930
|
Debt instrument description |
|
|
the Company to issue additional shares to ensure that the investor can realize a profit of 15% or 18% reselling
the conversion shares.
|
|
|
|
Value of good provision |
250,000
|
|
$ 250,000
|
|
|
|
Description of percentage of cash premium |
|
|
certain fixed-rate
notes include a prepayment provision, which entitles the holder to a 15% cash premium.
|
Certain
fixed-rate notes include a prepayment provision, which entitles the holder to a 15% or 18% premium upon cash redemption by the Company.
|
|
|
Gain on debt extinguishment |
0
|
319,081
|
$ 156,062
|
$ 362,894
|
|
|
Proceeds from notes payable |
|
|
195,000
|
400,000
|
|
|
Prepayment penalty |
|
243,000
|
|
243,000
|
|
|
Former Related Party [Member] |
|
|
|
|
|
|
Debt Instrument [Line Items] |
|
|
|
|
|
|
Principal payment of debt |
|
|
7,500
|
|
|
|
Note payable |
104,600
|
|
104,600
|
|
112,100
|
|
Fixed Rate Notes [Member] |
|
|
|
|
|
|
Debt Instrument [Line Items] |
|
|
|
|
|
|
Notes payable |
1,849,728
|
|
1,849,728
|
|
1,819,728
|
|
Accrued interest |
$ 429,500
|
|
$ 429,500
|
|
$ 310,960
|
|
Variable Rate Notes [Member] |
|
|
|
|
|
|
Debt Instrument [Line Items] |
|
|
|
|
|
|
Debt conversion, stock issued shares |
|
|
4,300,590
|
|
|
|
Gain on debt extinguishment |
|
|
$ 77,000
|
|
|
|
Convertible notes |
|
4,607,100
|
|
4,607,100
|
|
|
Five Fixed Rated Notes [Member] |
|
|
|
|
|
|
Debt Instrument [Line Items] |
|
|
|
|
|
|
Promissory notes |
|
400,000
|
|
400,000
|
|
|
Proceeds from notes payable |
|
|
|
400,000
|
|
|
Eighteen Fixed Rated Notes [Member] |
|
|
|
|
|
|
Debt Instrument [Line Items] |
|
|
|
|
|
|
Notes payable |
|
1,920,900
|
|
1,920,900
|
|
|
Eighteen Fixed Rated Notes [Member] | Past Maturity [Member] |
|
|
|
|
|
|
Debt Instrument [Line Items] |
|
|
|
|
|
|
Notes payable |
|
1,045,900
|
|
1,045,900
|
|
|
Fourteen Fixed Rated Notes [Member] |
|
|
|
|
|
|
Debt Instrument [Line Items] |
|
|
|
|
|
|
Principal amount |
|
1,400,000
|
|
1,400,000
|
|
|
Value of good provision |
|
$ 209,000
|
|
$ 209,000
|
|
|
Debt instrument description |
|
|
|
Such provision will require the Company to issue additional shares to ensure
that the investor can realize a profit of 15% or 18% reselling the conversion shares.
|
|
|
Minimum [Member] |
|
|
|
|
|
|
Debt Instrument [Line Items] |
|
|
|
|
|
|
Debt instrument, interest rate |
10.00%
|
|
10.00%
|
|
|
|
Maturity term |
|
|
1 month
|
|
|
|
Minimum [Member] | Former Related Party [Member] |
|
|
|
|
|
|
Debt Instrument [Line Items] |
|
|
|
|
|
|
Debt instrument, interest rate |
10.00%
|
|
10.00%
|
|
|
|
Minimum [Member] | Five Fixed Rated Notes [Member] |
|
|
|
|
|
|
Debt Instrument [Line Items] |
|
|
|
|
|
|
Debt instrument, interest rate |
|
15.00%
|
|
15.00%
|
|
|
Maximum [Member] |
|
|
|
|
|
|
Debt Instrument [Line Items] |
|
|
|
|
|
|
Debt instrument, interest rate |
15.00%
|
|
15.00%
|
|
|
|
Maturity term |
|
|
9 months
|
|
|
|
Maximum [Member] | Former Related Party [Member] |
|
|
|
|
|
|
Debt Instrument [Line Items] |
|
|
|
|
|
|
Debt instrument, interest rate |
12.00%
|
|
12.00%
|
|
|
|
Maximum [Member] | One Promissory Notes [Member] |
|
|
|
|
|
|
Debt Instrument [Line Items] |
|
|
|
|
|
|
Debt instrument, interest rate |
|
18.00%
|
|
18.00%
|
|
|
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v3.23.4
Schedule of Preferred Stock (Details)
|
Sep. 30, 2023
USD ($)
$ / shares
shares
|
Series AA [Member] |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] |
|
Number of Shares Authorized |
1,000,000
|
Number of Shares Outstanding |
25,000
|
Par Value | $ / shares |
$ 0.0010
|
Liquidation Value | $ |
|
Preferred Series B [Member] |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] |
|
Number of Shares Authorized |
50,000
|
Number of Shares Outstanding |
600
|
Par Value | $ / shares |
$ 0.0001
|
Liquidation Value | $ |
$ 100
|
Preferred Series C [Member] |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] |
|
Number of Shares Authorized |
8,000
|
Number of Shares Outstanding |
738
|
Par Value | $ / shares |
$ 0.0001
|
Liquidation Value | $ |
$ 1,000
|
Preferred Series D [Member] |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] |
|
Number of Shares Authorized |
20,000
|
Number of Shares Outstanding |
|
Par Value | $ / shares |
$ 0.0001
|
Liquidation Value | $ |
$ 1,000
|
Undesignated [Member] |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] |
|
Number of Shares Authorized |
3,922,000
|
Number of Shares Outstanding |
|
Par Value | $ / shares |
|
Liquidation Value | $ |
|
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v3.23.4
Schedule of Stock Options Outstanding (Details) - Stock Options [Member]
|
9 Months Ended |
Sep. 30, 2023
USD ($)
$ / shares
shares
|
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] |
|
Stock Options Outstanding, Beginning Balance | shares |
3,012,410
|
Weighted Average Exercise Price Per Share, Beginning Balance | $ / shares |
$ 0.22
|
Weighted Average Remaining Contractual Term (years), Outstanding Beginning |
3 years 4 months 24 days
|
Aggregated Intrinsic Value, Outstanding Beginning Balance | $ |
$ 31,200
|
Stock Options Outstanding, Granted | shares |
3,000,000
|
Weighted Average Exercise Price Per Share, Granted | $ / shares |
$ 0.01
|
Stock Options Outstanding, Cancelled | shares |
(660)
|
Weighted Average Exercise Price Per Share, Cancelled | $ / shares |
$ 11.60
|
Stock Options Outstanding, Exercised | shares |
|
Weighted Average Exercise Price Per Share, Exercised | $ / shares |
|
Stock Options Outstanding, Ending Balance | shares |
6,011,750
|
Weighted Average Exercise Price Per Share, Ending Balance | $ / shares |
$ 0.12
|
Weighted Average Remaining Contractual Term (years), Ending |
3 years 21 days
|
Aggregated Intrinsic Value, Ending | $ |
|
Stock Options Outstanding, Exercisable Ending Balance | shares |
1,011,750
|
Weighted Average Exercise Price Per Share, Exercisable Ending Balance | $ / shares |
$ 0.64
|
Weighted Average Remaining Contractual Term (years), Exercisable |
1 year 9 months 29 days
|
Aggregated Intrinsic Value, Exercisable Ending | $ |
|
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v3.23.4
Schedule of Warrants Outstanding (Details) - Warrant [Member]
|
9 Months Ended |
Sep. 30, 2023
$ / shares
shares
|
Accumulated Other Comprehensive Income (Loss) [Line Items] |
|
Shares Outstanding, Beginning Balance | shares |
2,000
|
Weighted Average Exercise Price Per Share, Outstanding Beginning Balance | $ / shares |
$ 50.0
|
Weighted Average Remaining Contractual Term (years), Outstanding Beginning |
2 months 19 days
|
Shares, Granted | shares |
|
Weighted Average Exercise Price Per Share, Granted | $ / shares |
|
Shares, Cancelled | shares |
(2,000)
|
Weighted Average Exercise Price Per Share, Cancelled | $ / shares |
$ 50.0
|
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|
Weighted Average Exercise Price Per Share, Exercised | $ / shares |
|
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|
Weighted Average Exercise Price Per Share, Outstanding Ending Balance | $ / shares |
|
Shares Exercisable, Ending Balance | shares |
|
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|
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v3.23.4
Shareholders’ Deficit (Details Narrative) - USD ($)
|
|
|
|
|
3 Months Ended |
6 Months Ended |
9 Months Ended |
|
|
Jan. 29, 2020 |
Dec. 22, 2017 |
Feb. 07, 2017 |
Feb. 22, 2013 |
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Jun. 30, 2023 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
Nov. 11, 2019 |
Accumulated Other Comprehensive Income (Loss) [Line Items] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares issued for conversion of notes payable, shares |
|
|
|
|
|
|
|
|
|
|
|
10,900,000
|
16,950,000
|
|
|
Conversion of common stock |
|
|
|
|
|
|
$ 109,000
|
|
$ 115,200
|
$ 88,800
|
|
|
|
|
|
Issuance of common stock |
|
|
|
|
1,000,000
|
|
|
|
|
|
|
|
|
|
|
Gain on debt extinguishment |
|
|
|
|
$ 0
|
|
|
$ 319,081
|
|
|
|
$ 156,062
|
$ 362,894
|
|
|
Principal amount |
|
|
|
|
1,440,000
|
|
|
|
|
|
|
$ 1,440,000
|
|
|
|
Fair value of defered compensation |
|
|
|
|
|
$ 24,338
|
|
|
|
|
|
|
|
|
|
Shares issued for common stock for services, shares |
|
|
|
|
|
|
|
|
|
|
|
43,800,000
|
62,250,000
|
|
|
Shares issued for common stock for services, value |
|
|
|
|
|
16,000
|
172,950
|
135,000
|
$ 1,281,900
|
|
|
$ 720,562
|
$ 1,281,900
|
|
|
Common stock new issuance, value |
|
|
|
|
|
$ 46,000
|
$ 207,000
|
|
|
|
|
|
|
|
|
Accrued interest |
|
|
|
|
338,403
|
|
|
$ 124,900
|
|
|
|
338,403
|
124,900
|
|
|
Share-based compensation expenses |
|
|
|
|
|
|
|
|
|
|
|
6,000
|
$ 0
|
|
|
Unrecognized stock-based compensation expense |
|
|
|
|
$ 36,000
|
|
|
|
|
|
|
$ 36,000
|
|
|
|
Remaining vesting period |
|
|
|
|
|
|
|
|
|
|
|
2 years 6 months
|
|
|
|
Securities Purchase Agreements [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Other Comprehensive Income (Loss) [Line Items] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stock |
|
|
|
|
|
|
|
|
|
|
|
1,850,000
|
|
|
|
Shares issued for common stock for services, value |
|
|
|
|
|
|
|
|
|
|
|
$ 25,625
|
|
|
|
Securities Purchase Agreements One [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Other Comprehensive Income (Loss) [Line Items] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stock |
|
|
|
|
|
|
|
|
|
|
|
1,000,000
|
|
|
|
Shares issued for common stock for services, value |
|
|
|
|
|
|
|
|
|
|
|
$ 11,125
|
|
|
|
Purchase Agreement [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Other Comprehensive Income (Loss) [Line Items] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stock |
|
|
|
|
|
|
|
|
|
|
|
|
3,100,000
|
|
|
Private Placement [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Other Comprehensive Income (Loss) [Line Items] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stock |
|
|
|
|
|
|
|
|
|
|
|
27,500,000
|
|
|
|
Common stock new issuance, value |
|
|
|
|
|
|
|
|
|
|
|
$ 253,000
|
|
|
|
One Investor [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Other Comprehensive Income (Loss) [Line Items] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stock |
|
|
|
|
|
|
|
|
|
|
|
1,507,277
|
2,428,777
|
|
|
Gain on debt extinguishment |
|
|
|
|
|
|
|
|
|
|
|
$ 24,870
|
|
|
|
Series AA Preferred Stock [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Other Comprehensive Income (Loss) [Line Items] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares authorized |
|
|
|
1,000,000
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, par value |
|
|
|
$ 0.001
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock voting rights |
|
|
|
Each
holder of outstanding shares of Series AA Super Voting Preferred Stock shall be entitled to one hundred thousand (100,000) votes for
each share of Series AA Super Voting Preferred Stock held on the record date for the determination of stockholders entitled to vote at
each meeting of stockholders of the Company.
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, shares outstanding |
|
|
|
|
25,000
|
|
|
|
|
|
|
25,000
|
|
25,000
|
|
Series B Preferred Stock [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Other Comprehensive Income (Loss) [Line Items] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares authorized |
|
|
50,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, shares outstanding |
|
|
|
|
600
|
|
|
|
|
|
|
600
|
|
600
|
|
Stated value dividend |
|
|
75.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrants term |
|
|
three-year
|
|
|
|
|
|
|
|
|
|
|
|
|
Share exercise price |
|
|
150.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidation value of preferred stock, per share |
|
|
$ 100
|
|
|
|
|
|
|
|
|
|
|
|
|
Series C Convertible Redeemable Preferred Stock [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Other Comprehensive Income (Loss) [Line Items] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares authorized |
|
8,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, shares outstanding |
|
|
|
|
738
|
|
|
|
|
|
|
738
|
|
738
|
|
Liquidation value of preferred stock, per share |
|
$ 1,000
|
|
|
$ 1,000
|
|
|
|
|
|
|
$ 1,000
|
|
|
|
Preferred stock, dividend per share |
|
$ 20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in rights due to amendment and restated certificate, description |
the Company
filed the amended and restated certificate of designation fort its Series C Secured Redeemable Preferred Stock. The amendment changed
the rights of the Series C by (a) removing the requirement to redeem the Series C, (b) removing the obligation to pay dividends on the
Series C, (c) Allowing the holders of shares of Series C to convert the stated value of their shares into common stock of the Company
at 75% of the closing price of such common stock on the day prior to the conversion. The C Preferred does not have any rights to vote
with the common stock.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series D Convertible Preferred Stock [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Other Comprehensive Income (Loss) [Line Items] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares authorized |
|
|
|
|
20,000
|
|
|
|
|
|
|
20,000
|
|
20,000
|
20,000
|
Preferred stock, par value |
|
|
|
|
$ 0.0001
|
|
|
|
|
|
|
$ 0.0001
|
|
$ 0.0001
|
|
Preferred stock, shares outstanding |
|
|
|
|
0
|
0
|
|
|
|
|
0
|
0
|
|
50
|
|
Liquidation value of preferred stock, per share |
|
|
|
|
$ 1,000
|
|
|
|
|
|
|
$ 1,000
|
|
|
|
Conversion price |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.01%
|
Number of shares issued |
|
|
|
|
|
5,000,000
|
|
|
|
|
5,000,000
|
|
|
|
|
Shares issued for conversion of notes payable, shares |
|
|
|
|
|
|
|
|
|
|
50
|
|
|
|
|
Conversion of stock description |
|
|
|
|
|
|
|
|
|
|
The Company is also committed to providing additional shares of common stock if the holders of Series D do
not realize a 15% profit on the resale of the conversion shares.
|
|
|
|
|
Series D Preferred Stock [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Other Comprehensive Income (Loss) [Line Items] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inducement loss |
|
|
|
|
|
|
|
|
|
|
|
$ 39,398
|
|
|
|
Preferred Stock Designated [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Other Comprehensive Income (Loss) [Line Items] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares authorized |
|
|
|
|
5,000,000
|
|
|
|
|
|
|
5,000,000
|
|
|
|
Common Stock [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Other Comprehensive Income (Loss) [Line Items] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares issued |
|
|
|
|
5,000,000
|
|
|
|
|
|
|
5,000,000
|
|
|
|
Shares issued for conversion of notes payable, shares |
|
|
|
|
|
|
|
|
|
|
|
|
16,950,000
|
|
|
Shares issued for conversion of notes payable, shares |
|
|
|
|
|
|
10,900,000
|
|
6,500,000
|
3,700,000
|
|
10,900,000
|
|
|
|
Conversion of common stock |
|
|
|
|
|
|
$ 1,090
|
|
$ 650
|
$ 370
|
|
$ 109,000
|
|
|
|
Issuance of common stock |
|
|
|
|
|
5,000,000
|
22,500,000
|
|
|
|
|
5,967,590
|
|
|
|
Gain on debt extinguishment |
|
|
|
|
|
|
|
|
|
|
|
$ 77,000
|
|
|
|
Debt conversion, stock issued shares |
|
|
|
|
|
|
4,300,590
|
|
|
2,428,777
|
|
4,300,590
|
|
|
|
Principal amount |
|
|
|
|
$ 113,650
|
|
|
|
|
|
|
$ 113,650
|
|
|
|
Number of shares issued, share |
|
|
|
|
|
1,667,000
|
|
|
|
|
|
1,667,000
|
|
|
|
Fair value of defered compensation |
|
|
|
|
|
$ 167
|
|
|
|
|
|
$ 24,338
|
|
|
|
Shares issued for common stock for services, shares |
|
|
|
|
8,000,000
|
1,000,000
|
12,850,000
|
6,750,000
|
62,250,000
|
|
|
|
|
|
|
Shares issued for common stock for services, value |
|
|
|
|
|
$ 100
|
$ 1,285
|
$ 675
|
$ 6,225
|
|
|
|
|
|
|
Common stock new issuance, value |
|
|
|
|
|
$ 500
|
$ 2,250
|
|
|
|
|
|
|
|
|
Shares issued for conversion of notes payable |
|
|
|
|
|
|
|
|
|
|
|
|
$ 214,100
|
|
|
Accrued interest |
|
|
|
|
|
|
|
$ 124,900
|
|
|
|
|
$ 124,900
|
|
|
Common Stock [Member] | Series D Preferred Stock [Member] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Other Comprehensive Income (Loss) [Line Items] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares issued for conversion of notes payable, shares |
|
|
|
|
|
|
|
|
|
|
|
50
|
|
|
|
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v3.23.4
Related Party and former related parties Transactions. (Details Narrative) - USD ($)
|
3 Months Ended |
9 Months Ended |
Mar. 31, 2023 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Related Party Transaction [Line Items] |
|
|
|
Number of shares issued, value |
$ 24,870
|
|
|
Repayment of debt |
|
$ 7,500
|
$ 9,500
|
Officer [Member] |
|
|
|
Related Party Transaction [Line Items] |
|
|
|
Due to officer |
|
$ 5,340
|
|
Common Stock [Member] |
|
|
|
Related Party Transaction [Line Items] |
|
|
|
Number of shares issued |
1,507,277
|
20,000,000
|
|
Number of shares issued, value |
$ 151
|
$ 282,000
|
|
Executive Officer [Member] |
|
|
|
Related Party Transaction [Line Items] |
|
|
|
Deferred compensation |
|
630,568
|
|
Accrual deferred compensation |
|
225,000
|
|
Cash repayments of deferred compensation |
|
118,250
|
|
Advance from officer |
|
5,215
|
|
Repayment of debt |
|
2,500
|
|
One Former Executive Officer [Member] |
|
|
|
Related Party Transaction [Line Items] |
|
|
|
Deferred compensation |
|
632,257
|
|
Former President [Member] |
|
|
|
Related Party Transaction [Line Items] |
|
|
|
Notes payable – former related party |
|
104,600
|
|
Interest payable |
|
$ 88,045
|
|
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v3.23.4
Schedule of Conversion Feature Using Black Scholes Option Pricing Model (Details)
|
9 Months Ended |
Sep. 30, 2023
$ / shares
|
Sep. 30, 2022
$ / shares
|
Measurement Input, Expected Term [Member] |
|
|
Fair Value Measurement Inputs and Valuation Techniques [Line Items] |
|
|
Fair value assumptions, measurement input, term |
1 month
|
1 month
|
Measurement Input, Exercise Price [Member] | Minimum [Member] |
|
|
Fair Value Measurement Inputs and Valuation Techniques [Line Items] |
|
|
Fair value assumptions, measurement input, percentage |
0.0066
|
0.004
|
Measurement Input, Exercise Price [Member] | Maximum [Member] |
|
|
Fair Value Measurement Inputs and Valuation Techniques [Line Items] |
|
|
Fair value assumptions, measurement input, percentage |
0.0151
|
0.015
|
Measurement Input, Price Volatility [Member] | Minimum [Member] |
|
|
Fair Value Measurement Inputs and Valuation Techniques [Line Items] |
|
|
Fair value assumptions, measurement input, percentage |
154
|
152
|
Measurement Input, Price Volatility [Member] | Maximum [Member] |
|
|
Fair Value Measurement Inputs and Valuation Techniques [Line Items] |
|
|
Fair value assumptions, measurement input, percentage |
158
|
169
|
Measurement Input, Expected Dividend Rate [Member] |
|
|
Fair Value Measurement Inputs and Valuation Techniques [Line Items] |
|
|
Fair value assumptions, measurement input, percentage |
0
|
0
|
Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member] |
|
|
Fair Value Measurement Inputs and Valuation Techniques [Line Items] |
|
|
Fair value assumptions, measurement input, percentage |
4.64
|
1.63
|
Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member] |
|
|
Fair Value Measurement Inputs and Valuation Techniques [Line Items] |
|
|
Fair value assumptions, measurement input, percentage |
5.40
|
2.80
|
Forfeitures [Member] |
|
|
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|
|
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0
|
0
|
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v3.23.4
Schedule of Fair Value of Derivative Liability (Details) - Fair Value, Inputs, Level 3 [Member]
|
9 Months Ended |
Sep. 30, 2023
USD ($)
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] |
|
Derivative Liability, beginning balance |
$ 17,359,064
|
Settlement debt |
(10,769)
|
Change in estimated fair value |
(11,445,466)
|
Derivative Liability, ending balance |
$ 5,902,829
|
X |
- DefinitionLine items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.
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|
Sep. 30, 2023
USD ($)
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] |
|
Derivative liability |
$ 5,902,829
|
Total |
5,902,829
|
Fair Value, Inputs, Level 1 [Member] |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] |
|
Derivative liability |
|
Total |
|
Fair Value, Inputs, Level 2 [Member] |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] |
|
Derivative liability |
|
Total |
|
Fair Value, Inputs, Level 3 [Member] |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] |
|
Derivative liability |
5,902,829
|
Total |
$ 5,902,829
|
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Endonovo Therapeutics (PK) (USOTC:ENDV)
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