AXIM 10-Q

Axim Biotechnologies, Inc. (AXIM)

10-Q 2022-05-23 For: 2022-03-31

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Added on April 09, 2026

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		Page
Condensed Consolidated Balance Sheet as of March 31, 2022 (unaudited) and December 31, 2021		3

Condensed Consolidated Statements of Operations for the three months periods ended March 31, 2022 and 2021 (unaudited)		4

Condensed Consolidated Statement of Changes in Shareholders’ Deficit for the three ended March 31, 2022 and 2021 (unaudited)		5

Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2022 and 2021 (unaudited)		6

Notes to Condensed Consolidated Financial Statements (unaudited).		7

AXIM BIOTECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS

	March 31,			December 31,
	2022			2021
	(Unaudited)
ASSETS

Current assets:
Cash	$	408,043		$	452,963
Prepaid expenses		69,734			163,561
Inventory		20,089			20,089
Total current assets		497,866			636,613

Property and equipment, net of accumulated depreciation		108,894			116,810

Other Assets:
Notes receivable- related party		104,524			104,268
Patents (net of accumulated amortization of $12,775 and $7,409; respectively)		237,225			242,591
Licenses (net of accumulated amortization of $221,963 and $128,718; respectively)		4,048,037			4,141,282

Security deposit		5,000			5,000
Operating lease right-of-use asset		62,904			76,871
Total other assets		4,457,690			4,570,012

TOTAL ASSETS	$	5,064,450		$	5,323,435

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:
Accounts payable and accrued liabilities	$	880,332		$	909,458
Derivative liability		2,054,769			-
Lease liability obligations		57,920			56,871
Due to shareholder		180			180
Due to first insurance funding		-			32,873
Convertible note payable (including accrued interest of $0 and $16,919		-			1,126,919

Promissory note (including accrued interest of $43,823 and $44,041, respectively) (see note 7)		368,041			454,693
Total current liabilities		3,361,242			2,580,994

Long-term liabilities:
Deferred tax liability		-			-
Convertible note payable (including accrued interest of $208,427 and $209,685, respectively) net of unamortized debt discount of $1,895,035 and $605,639, respectively (see note 11)		812,870			761,604
Convertible note payable - related party (including accrued interest of $309,037 and $299,037, respectively)		4,309,037			4,299,037
Lease liability obligations		4,984			20,000
Total long-term liabilities		5,126,891			5,080,641

TOTAL LIABILITIES		8,488,133			7,661,635

STOCKHOLDERS' DEFICIT
Preferred stock, $0.0001 par value, 5,000,000 shares authorized;

Series B Convertible Preferred Stock, $0.0001 par value 500,000 shares designated,		0			0
Series C Convertible Preferred Stock, $0.0001 par value 500,000 shares designated,		0			0
500,000 and 500,000 shares issued and outstanding, respectively		50			50

Common stock, $0.0001 par value, 300,000,000 shares authorized 151,501,782 and 138,099,981 shares issued and outstanding, respectively		15,151			13,811
Additional paid in capital		56,395,057			51,000,166
Common stock to be issued		135,000			4,530,000
Accumulated deficit		(59,968,941	)		(57,882,227	)
TOTAL STOCKHOLDERS' DEFICIT		(3,423,683	)		(2,338,200	)

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$	5,064,450		$	5,323,435

AXIM BIOTECHNOLOGIES, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	For the			For the
	Three Months Ended			Three Months Ended
	March 31,			March 31,
	2022			2021

Revenues	$	-		$	32,649

Operating Expenses:

Research and development expenses		44,193			100,953
Selling, general and administrative		982,235			793,346
Depreciation and amortization		106,527			6,350

Total operating expenses from continuing operations		1,132,955			900,649

Loss from continuing operations		(1,132,955	)		(868,000	)

Other (income) expenses:

Interest income		(256	)		(256	)
Change in fair value of derivative liability		(587,077	)		-
Income from grants from government		-			(90,000	)
Amortization of debt discount		35,591			21,827
Gain on extinguishment of debt		(16,904	)		-
Interest expense		1,522,405			60,332
Total other expenses (income)		953,759			(8,097	)

Loss before provision of income tax		(2,086,714	)		(859,903	)
Provision for income tax		-			-

Loss from continuing operations		(2,086,714	)		(859,903	)

Loss from discontinued operations		-			(4,633	)

NET LOSS	$	(2,086,714	)	$	(864,536	)

NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	(2,086,714	)	$	(864,536	)

Loss per share from continuing operations
Basic	$	(0.01	)	$	(0.01	)
Diluted	$	(0.01	)	$	(0.01	)

Loss per share from discontinued operations
Basic	$	-		$	-
Diluted	$	-		$	-

Loss per share
Basic	$	(0.01	)	$	(0.01	)
Diluted	$	(0.01	)	$	(0.01	)

Weighted average common shares outstanding - basic and diluted		147,163,570			125,909,597

AXIM BIOTECHNOLOGIES, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT

	Common Stock				Preferred Stock				Series A Convertible Preferred Stock				Series B Convertible Preferred Stock				Series C Convertible Preferred Stock				Common Stock to be			Additional Paid In			Accumulated
	Shares		Amount		Shares		Amount		Shares		Amount		Shares		Amount		Shares		Amount		Issued			Capital			Deficit			Total

Balance at December 31, 2020		125,327,579	$	12,533		0	$	0		0	$	0	0		$	0		500,000	$	50	$	201,974		$	43,201,186		$	(41,849,922	)	$	1,565,821
Common stock to be issued for purchase of shares																						168,500									168,500
Common stock issued against common stock to be issued received in py		108,965		11																		(66,974	)		66,963						-
Common stock issued for severance payable of discontinued operations		379,463		38																					224,963						225,001
Common stock and warrants issued for cash		1,712,500		171																					433,829						434,000
Stock based compensation- stock options																									99,742						99,742
Net loss																												(864,536	)		(864,536	)
Balance at March 31, 2021		127,528,507		12,753		-		-		-		-						500,000		50		303,500			44,026,683			(42,714,458	)		1,628,528

Balance at December 31, 2021		138,099,981		13,811		-		-		-		-		-		-		500,000		50		4,530,000			51,000,166			(57,882,227	)		(2,338,200	)
Common stock issued under s-1		4,000,000		400																					594,470						594,870
Common stock issued against common stock to be issued purchase of atd		7,000,000		700																		(4,270,000	)		4,269,300						-
Common stock issued against common stock to be issued received in PY		166,667		17																		(25,000	)		24,983						-
Common stock issued stock purchase agreements		976,870		98																					104,902						105,000
Common stock issued for services		802,115		80																		(100,000	)		179,420						79,500
Cashless exercise stock options		282,759		28																					(28	)					-
Stock issued on settlement of debt		173,390		17																					32,927						32,944
Stock based compensation - stock options																									188,917						188,917
Net loss																												(2,086,714	)		(2,086,714	)
Balance at March 31, 2022		151,501,782		15,151		-		-		-		-		-		-		500,000		50		135,000			56,395,057			(59,968,941	)		(3,423,683	)

AXIM BIOTECHNOLOGIES, INC.
Unaudited Condensed Consolidated Statements of Cash Flows

	For the			For the
	Three Months Ended			Three Months Ended
	March 31, 2022			March 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(2,086,714	)	$	(864,536	)
Less: (Loss) gain from discontinued operations		-			(4,633	)
Loss from continuing operations		(2,086,714	)		(859,903	)

Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Depreciation		7,916			6,350
Stock based compensation		188,918			99,740
Amortization of prepaid insurance/expense		93,828			23,370
Amortization of debt discount		35,591			21,827
Common stock issued for services		79,500			-
Amortization of intangible assets		98,611			-
Loss on extinguishment of debt		11,068			-
Change in fair value of derivative liability		(587,077	)		-
Non-cash interest expense		1,316,846			-

Changes in operating assets & liabilities:
(Increase) decrease in accounts receivable		-			(32,870	)
Increase in interest receivable		(256	)		(257	)
(Increase) decrease in prepaid expenses		-			67,991
(Increase) decrease in inventory		-			(20,181	)
Increase in accounts payable and accrued expenses		138,052			133,105
Net cash provided by (used in) operating activities from continuing operations		(703,717	)		(560,828	)
Net cash provided by (used in) operating activities from discontinued operations		-			(4,633	)
Net cash provided by (used in) operating activities		(703,717	)		(565,461	)

CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of property and equipment		-			(19,639	)
Net cash provided by (used in) investing activities from continuing operations		-			(19,639	)
Net cash provided by (used in) investing activities from discontinued operations		-			-
Net cash provided by (used in) investing activities		-			(19,639	)

CASH FLOW FROM FINANCING ACTIVITIES:
Common stock issued under registration statement on Form S-1		594,870			-
Common stock issued under SPA		105,000			602,502
Repayment of first insurance funding		(32,873	)		(25,369	)
Proceeds from convertible notes		1,325,000			-
Repayment of convertible notes		(1,243,200	)		-
Repayment of promissory note		(90,000	)		-
Net cash provided by (used in) continuing financing activities		658,797			577,133
Net cash provided by (used in) discontinued financing activities		-			-
Net cash provided by (used in) financing activities		658,797			577,133

Net (decrease) increase in cash and cash equivalents		(44,920	)		(7,967	)

Cash and cash equivalents at beginning of period		452,963			457,181
Cash and cash equivalents at end of period	$	408,043		$	449,214

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
CASH PAID DURING THE PERIOD FOR:
Interest	$	-		$	-
Income taxes - net of tax refund	$	-		$	-
NON-CASH INVESTING AND FINANCING ACTIVITIES
Common stock issued against common stock to be issued	$	125,000		$	66,974
Common stock issued for severance	$			$	225,000
Initial derivative liability at issuance of notes	$	2,641,846		$	-
Initial debt discount at issuance of notes	$	1,325,000		$	-
Convertible note converted to common stock	$	32,944		$	-
Common stock issued on cashless exercise of options	$	28		$	-
Common stock issued against Common stock to be issued for acquisition	$	4,270,000		$	-

	March 31, 2022		December 31, 2021
Equipment of continuing operations	$	175,283	$	175,283
Less: accumulated depreciation	$	66,389	$	58,473
	$	108,894	$	116,810

	March 31,		December 31,
	2022		2021
Patents	$	250,000	$	250,000
Licenses		4,270,000		4,270,000
		4,520,000		4,520,000

Less: accumulated amortization		234,739		136,127
	$	4,285,261	$	4,383,873

		2022				2023				2024				2025				2026 and thereafter
Amortization expense		$	295,838			$	394,450			$	394,450			$	394,450			$	2,806,073

Fair Value Hierarchy		Inputs to Fair Value Methodology
Level 1		Quoted prices in active markets for identical assets or liabilities
Level 2		Quoted prices for similar assets or liabilities; quoted markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the financial instrument; inputs other than quoted prices that are observable for the asset or liability; or inputs that are derived principally from, or corroborated by, observable market information
Level 3		Pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption is unobservable or when the estimation of fair value requires significant management judgment

Balance, December 31, 2021	$	-
Issuance of convertible note payable		2,641,846
Mark to market		(587,077	)
Balance, March 31, 2022	$	2,054,769

Gain on change in derivative liabilities for the three months ended March 31, 2022	$	587,077

	Options Outstanding			Weighted Average Exercise Price
Outstanding at December 31, 2020		10,300,000		$	0.36
Granted		2,960,715			0.60
Exercised		(300,000	)		0.35
Expired or canceled		(2,000,000	)		0.75
Outstanding at December 31, 2021		10,960,715		$	0.37
Granted		-			-
Exercised		(500,000	)		0.37
Balance March 31, 2022		10,460,715		$	0.37

	Number of Warrants		Weighted Average Exercise Price
Outstanding at December 31, 2020		-	$	-
Granted		3,025,000		0.71
Forfeited/Cancelled		-		-
Exercised		-		-
Outstanding at December 31, 2021		3,025,000	$	0.71
Granted		519,247		0.31
Exercised
Outstanding at March 31, 2022		3,544,247		0.68

	March 31, 2022		March 31, 2021
Net sales	$	-	$
Total expenses	$	-	$	4,633
Gain from sale of asset and liability	$	-	$
Other (loss) income	$	-	$
(Loss) income from discontinued operations	$	-	$	(4,633	)

	March 31, 2022		March 31, 2021
Net (loss) income from discontinued operations	$	-	$	(4,633	)

Adjustment of non-cash activities		-		-
Decrease in accounts receivable		-		-
Increase in inventory		-		-
Increase in accounts payable and accrued expenses		-		-
Net cash provided by (used in) operating activities	$	-	$	(4,633	)

Net cash provided by (used in) investing activities	$	-	$	-
Net cash provided by (used in) financing activities	$	-	$	-

Right-of-use assets	$	62,904

Lease liability obligations, current	$	57,920
Lease liability obligations, noncurrent		4,984
Total lease liability obligations	$	62,904

Weighted-average remaining lease term	1.125 years

Weighted-average discount rate	6		%

	March 31,			December 31,
	2022			2021
Convertible note payable, due on October 1, 2029, interest at 3.5% p.a.	$	484,478		$	484,478
Convertible Note Payable, due on October 1, 2022, interest at 6% p.a.		-			1,110,000
Convertible note payable, due on October 1, 2029, interest at 3.5% p.a.		500,000			500,000
Convertible note payable, due on February 10, 2032, interest at 3.0% p. a.		1,325,000			-
Convertible note payable, due on December 31, 2034, interest at 3% p.a.		190,000			190,000
Accrued interest (The accrued interest and principal are both included in the captions titled “convertible note payable” in the balance sheet)		208,427			209,685
Total		2,707,905			2,494,163
Less: unamortized debt discount/finance premium costs		(1,895,035	)		(605,639	)
Convertible note payable, net	$	812,870		$	1,888,524

2022	$	44,853
2023		20,000
Total minimum payments		64,853
Less: amount representing interest		(1,949	)
Total	$	62,904

	(i)	Measurement of neutralizing antibodies in individuals who have recovered from COVID-19 and/or received a vaccine and to provide an “Immunity Passport” so that they can go back to work and school or participate in social gatherings without risk of infecting others. The primary goal of any vaccine is to induce neutralizing antibody responses that protect vaccine recipients from infection and subsequent disease. As COVID-19 vaccines have been rolling out to the general public, we believe immunity monitoring is starting to play a critical role in determining whether the vaccine is effective, for how long, and when it is time for recipients of the vaccine to get a booster shot. Since immunity to the virus is not anticipated to last forever, the immunity monitoring could continue for many years, even after widespread vaccination throughout the world.

		Additionally, we believe that measuring neutralizing antibodies in vaccine recipients after vaccination may provide greater insight into how vaccine responses hold up over time. That way, when levels of neutralizing antibodies eventually decrease, vaccine recipients will have a sense of when their neutralizing antibodies are unacceptably low and a revaccination is necessary to continue their protection from COVID-19.

	(ii)	Screening plasma collected from individuals recovered from COVID-19 so that patients fighting COVID-19 can be treated with plasma containing high levels of Nabs. Additionally, Nabs need to be monitored in patients receiving convalescent plasma so that we learn what is an effective therapeutic dose.

	·	It specifically tests for neutralizing antibodies, which are those needed to fight COVID-19 within the body;

	·	It can quantitatively measure the amount of neutralizing antibodies a person has;

	·	Patients get their results in just a few minutes; and

	·	It is portable.

	·	Diagnostic Tests: Tests that detect parts of the SARS-CoV-2 virus and can be used to diagnose infection with the SARS-CoV-2 virus. These include molecular tests and antigen tests.

	·	Serology/Antibody and Other Adaptive Immune Response Tests: Tests that detect antibodies (for example, IgM, IgG) to the SARS-CoV-2 virus or that measure a different adaptive immune response (such as, T cell immune response) to the SARS-CoV-2 virus. These types of tests cannot be used to diagnose a current infection.

	·	Tests for Management of COVID-19 Patients: Beyond tests that diagnose or detect SARS-CoV-2 virus or antibodies, there are also tests that are authorized for use in the management of patients with COVID-19, such as to detect biomarkers related to inflammation. Once patients are diagnosed with COVID-19 disease, these additional tests can be used to inform patient management decisions.

	·	Contact lens fitting – approximately 45 million people wear contact lens in the US alone (2021).

	·	LASIK surgery- approximately 718,000 (2020).

	·	Cataract surgery with lens exchange - approximately 3.8 million (2018).

Biomarker	Company	Type	CLIA status

Lactoferrin	Axim	(quantitative analysis)	moderate complexity

IgE	Axim	(quantitative analysis)	moderate complexity

MMP9	Quidel	(qualitative only)	waived

Osmolarity	TearLab	(quantitative analysis)	waived

Ocular Adenovirus	Quidel	(qualitative only)	waived

Category	Issued Patent	Provisional Patent Applications

QSOX-1	1	11
SARS-CoV-2		12
EYE Health		2
EIS Platform		5

	(i)	filing Exchange Act reports;
	(ii)	contractual obligations;
	(iii)	building inventory of our approved devices;
	(iii)	clinical trials; and
	(iv)	continued research and development of our diagnostic tests.

	March 31, 2022			March 31, 2021			$ Change		% Change
Revenues	$	-		$	32,649		$	-32,649	>	100	%
Gross margin percentage		-			-			-		-
Operating expenses		1,132,955			900,649			232,306	>	26	%
Loss from continuing operations		(1,132,955	)		(868,000	)		264,955	>	31	%
Loss from discontinued operations					(4,633)			4,633		.100	%
Other expenses (income)		953,759			(8,097	)		961,856		.100	%
Net loss	$	(2,086,714	)		(864,536	)		1,222,178	>	100	%

	AXIM BIOTECHNOLOGIES, INC.

Dated: May 23, 2022	By:	/s/ John W. Huemoeller II
		John W. Huemoeller II
		President and Director
		Principal Executive Officer

Dated: May 23, 2022	By:	/s/ Robert Malasek
		Robert Malasek
		Principal Financial Officer