Skinvisible, Inc 10-Q/A for FY2020 Q1

Skinvisible, Inc. (SKVI)

10-Q/A 2020-07-08 For: 2020-03-31

Added on April 06, 2026

About this 10-Q/A

Skinvisible, Inc filed this 10-Q/A on July 8, 2020, covering the quarter ended March 31, 2020 (FY2020 Q1).

Headline figures

Quarter ended March 31, 2020, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $16.05K; up 91.8% from $8367 a year earlier
Net loss: $430.08K; compared with a net loss of $343.1K a year earlier

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[X]	Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

	For the quarterly period ended March 31, 2020

[ ]	Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act of 1934

	For the transition period from __________ to __________

	Commission File Number: 000-25911

Nevada	88-0344219
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

[ ] Large accelerated filer	[ ] Accelerated filer
[ ] Non-accelerated filer	[X] Smaller reporting company
	[ ] Emerging growth company

	TABLE OF CONTENTS	Page
PART I – FINANCIAL INFORMATION
Item 1:	Financial Statements	3
Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4
Item 3:	Quantitative and Qualitative Disclosures About Market Risk	7
Item 4:	Controls and Procedures	7
PART II – OTHER INFORMATION
Item 1:	Legal Proceedings	8
Item 1A:	Risk Factors	8
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	8
Item 3:	Defaults Upon Senior Securities	8
Item 4:	Mine Safety Disclosure	8
Item 5:	Other Information	8

	March 31, 2020			December 31, 2019
	(Unaudited)
ASSETS
Current assets
Cash	$	6,579		$	1,298
Accounts receivable		8,409			10,204
Prepaid expense and other current assets		3,250			4,875
Total current assets		18,238			16,377

Patents and trademarks, net of accumulated amortization of $543,135 and $533,415, respectively		156,535			165,385

Total assets	$	174,773		$	181,762
					.
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable and accrued liabilities	$	698,294		$	597,291
Accounts payable related party		9,274			9,274
Accrued interest payable		626,556			491,601
Loans from related party		68,899			46,899
Loans payable		552,000			552,000
Convertible notes payable		220,000			220,000
Total current liabilities		2,175,023			1,917,065

Convertible notes payable related party, less current maturities, net of unamortized discount of $2,908,507 and $3,060,970 respectively		1,326,702			1,174,239
Convertible notes payable, less current maturities, net of unamortized debt discount of $241,776 and $254,450, respectively		110,299			97,625

Total liabilities		3,612,024			3,188,929

Stockholders' deficit

Common stock; $0.001 par value; 200,000,000 shares authorized; 4,471,746 and 4,471,746 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively		4,472			4,472
Shares payable		59,602			59,602
Additional paid-in capital		30,181,555			30,181,555
Accumulated deficit		(33,682,880	)		(33,252,796)
Total stockholders' deficit		(3,437,251	)		(3,007,167)

Total liabilities and stockholders' deficit	$	174,773		$	181,762

	Three Months Ended
	March 31, 2020			March 31, 2019


Revenues (including $7,643 with a related party)	$	16,052		$	8,367

Cost of revenues		—			376

Gross profit		16,052			7,991

Operating expenses
Depreciation and amortization		9,720			9,651
Selling general and administrative		136,324			144,432
Total operating expenses		146,044			154,083

Loss from operations		(129,992	)		(146,092)

Other income and (expense)
Other income - related party		—			5,000
Interest expense		(300,092	)		(202,007)
Total other expense		(300,092	)		(197,007)

Net loss	$	(430,084	)	$	(343,099)

Basic loss per common share	$	(0.10	)	$	(0.12)

Fully diluted loss per common share	$	(0.10	)	$	(0.12)


Basic weighted average common shares outstanding		4,471,746			2,896,689


Fully diluted weighted average common shares outstanding		4,471,746			2,896,689

	Common Stock
	Shares		Amount		Additional Paid-in Capital		Shares payable		Accumulated Deficit			Total Stockholders' Deficit
Balance, December 31, 2019		4,471,746	$	4,472	$	30,181,555	$	59,602	$	(33,252,796	)	$	(3,007,167)
Net loss		—		—		—		—		(430,084)			(430,084)
Balance, March 31, 2020		4,471,746	$	4,472	$	30,181,555	$	59,602	$	(33,682,880	)	$	(3,437,251)

Balance, December 31, 2018		2,896,689	$	2,897	$	24,774,887	$	2,053,466	$	(31,550,665	)	$	(4,719,415)
Net loss		—		—		—		—		(343,099	)		(343,099)
Balance, March 31, 2019		2,896,689	$	2,897	$	24,774,887	$	2,053,466	$	(31,893,764	)	$	(5,062,514)

	Number of Shares		Weighted Average Exercise Price
Balance, December 31, 2019		100,000		1. 51

Options granted and assumed		—		—
Options expired		—		—
Options canceled		—		—
Options exercised		—		—

Balance, March 31, 2020		100,000		1. 51

	Number of Shares			Weighted Average Exercise Price
Balance, December 31, 2018		161,000		$	1.80

Options granted and assumed		—			—
Options expired		(26,000	)		2.00
Options canceled		—			—
Options exercised		—			—

Balance, March 31, 2019		135,000		$	1.76

	Number of Shares			Weighted Average Exercise Price
Balance, December 31, 201 9		72,200		$	1.18

Warrants granted and assumed		—			—
Warrants expired		(12,200	)		1.50
Warrants canceled		—			—
Warrants exercised		—			—

Balance, March 31, 20 20		60,000		$	1.11

Convertible Notes Payable consists of the following:	March 31,			December 31,
	20 20			2019
$40,000 face value 9% secured notes payable to investors, due in 2015. At the investor’s option until the repayment date, the note and related interest may be converted to shares of the Company’s common stock a discount of 90% of the current share price after the first anniversary of the note. The notes are secured by the accounts receivable of a license agreement the Company has with Womens Choice Pharmaceuticals, LLC on its proprietary prescription product, ProCort®. The notes have reached maturity and are now in default, under the notes default provisions the entire balance is now due upon demand.		40,000			40,000
Original issue discount		—			—
Unamortized debt discount		—			—
Total, net of unamortized discount		40,000			40,000

On October 26, 2015 the Company issued a $135,000 face value 9% unsecured notes payable to investors, due October 26, 2017. At the investor’s option until the repayment date, the note and related interest may be converted to shares of the Company’s common stock a discount of 90% of the current share price after the first anniversary of the note. The notes are secured by the accounts receivable of a license agreement the Company has with Womens Choice Pharmaceuticals, LLC on its proprietary prescription product, ProCort®. The note has reached maturity and is in default.		135,000			135,000
Unamortized debt discount		—			—
Total, net of unamortized discount		135,000			135,000

On February 17, 2016, the Company entered into a convertible promissory note pursuant to which it borrowed $20,000. Interest under the convertible promissory note is 9% per annum, and the principal and all accrued but unpaid interest is due on February 17, 2018. The note is convertible at any time following 90 days after the issuance date at noteholders option into shares of our common stock at a variable conversion price of 90% of the average five day market price of our common stock during the 5 trading days prior to the notice of conversion, subject to adjustment as described in the note. The holder’s ability to convert the note, however, is limited in that it will not be permitted to convert any portion of the note if the number of shares of our common stock beneficially owned by the holder and its affiliates, together with the number of shares of our common stock issuable upon any full or partial conversion, would exceed 4.99% of the Company’s outstanding shares of common stock. The note has reached maturity and is in default		20,000			20,000
Unamortized debt discount		—			—
Total, net of unamortized discount		20,000			20,000

On August 11, 2016, the Company entered into a convertible promissory note pursuant to which it borrowed $15,000. Interest under the convertible promissory note is 9% per annum, and the principal and all accrued but unpaid interest is due on August 11, 2018. The note is convertible into shares of our common stock at a variable conversion price of 90% of the average market price of our common stock during the 5 trading days prior to the notice of conversion, subject to adjustment as described in the note. The note has reached maturity and is in default		15,000			15,000
Unamortized debt discount		—			—
Total, net of unamortized discount		15,000			15,000

On January 27, 2017, the Company entered into a convertible promissory note pursuant to which it borrowed $10,000. Interest under the convertible promissory note is 9% per annum, and the principal and all accrued but unpaid interest is due on January 27, 2019. The note is convertible into shares of our common stock at a variable conversion price of 90% of the average market price of our common stock during the 5 trading days prior to the notice of conversion, subject to adjustment as described in the note. The note has reached maturity and is in default.		10,000			10,000
Unamortized debt discount		—			—
Total, net of unamortized discount		10,000			10,000

On June 30, 2019, the Company renegotiated accrued salaries and interest and outstanding convertible notes for a former employee. Under the terms of the agreements, all outstanding notes totaling $224,064, accrued interest of $119,278, accrued salaries of $7,260 and accrued vacation of $1,473 were converted to a promissory note convertible into common stock with a warrant feature. The promissory note is unsecured, due five years from issuance, and bears an interest rate of 10%. At the noteholder’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $0.20 per share along with warrants to purchase one share for every two shares issued at the exercise price of $0.30 per share for three years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $280,076. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $12,674 during the three months ended March 31, 2020 and nil for the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method		352,075			352,075
Unamortized debt discount		(241,776	)		(254,450)
Total, net of unamortized discount		110,299			97,625

Total Convertible Notes	$	330,299	$	317,625
Current portion:		220,000		220,000
Total long-term convertible notes	$	110,299	$	97,625

Convertible Notes Payable Related Party consists of the following:	March 31, 2020			December 31, 201 9
On June 30, 2019, the Company renegotiated accrued salaries, accrued interest, unpaid reimbursements, cash advances, and outstanding convertible notes for its two officers. Under the terms of the agreements, all outstanding notes totaling $2,464,480, accrued interest of $966,203, accrued salaries of $617,915, accrued vacation of $64,423, unpaid reimbursements of $11,942 and cash advances of $110,245 were converted to promissory notes convertible into common stock with a warrant feature. The promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $0.20 per share along with warrants to purchase one share for every two shares issued at the exercise price of $0.30 per share for three years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $3,369,244. The aggregate beneficial conversion feature associated with these notes has been accreted and charged to interest expenses as a financing expense in the amount of $152,463 during the three months ended March 31, 2020 and nil for the three months ended March 31, 2019.	$	4,235,209		$	4,235,209
Unamortized debt discount		(2,908,507	)		(3,060,970)
Total, net of unamortized discount	$	1,326,702		$	1,174,239

Exhibit Number	Description of Exhibit
31.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101**	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 formatted in Extensible Business Reporting Language (XBRL).
**Provided herewith

	Skinvisible, Inc.

Date:	July 7, 2020

	By: /s/ Terry Howlett Terry Howlett Title: Chief Executive Officer, Chief Financial Officer and Director

By:	/s/ Terry Howlett
Name:	Terry Howlett
Title:	Principal Executive Officer, Principal Financial Officer and Director
Date:	July 7, 2020