United Health Products, Inc 10-Q for FY2022 Q2

United Health Products, Inc. (UEEC)

10-Q 2022-08-15 For: 2022-06-30

Added on April 07, 2026

About this 10-Q

United Health Products, Inc filed this 10-Q on August 15, 2022, covering the quarter ended June 30, 2022 (FY2022 Q2).

Headline figures

Quarter ended June 30, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $0; compared with $0 a year earlier
Net loss: $879.04K; compared with a net loss of $1.3M a year earlier

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		PAGE
PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)

	Condensed Balance Sheets as of June 30, 2022 (unaudited) and December 31, 2021	3

	Condensed Statements of Operations for the Three and Six Months Ended June 30, 2022 and June 30, 2021 (unaudited)	4

	Condensed Statement of Stockholders’ Deficiency for the Three and Six Months Ended June 30, 2022 and June 30, 2021 (unaudited)	5

	Condensed Statements of Cash Flows for the Six Months Ended June 30, 2022 and June 30, 2021 (unaudited)	6

	Notes to Condensed Financial Statements (unaudited)	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15

Item 3.	Quantitative and Qualitative Disclosures	21

Item 4.	Controls and Procedures	21

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	22

Item 1A.	Risk Factors	22

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	22

Item 3.	Defaults Upon Senior Securities	22

Item 4.	Mine Safety Disclosures	22

Item 5.	Other Information	22

Item 6.	Exhibits and Reports on Form 8-K	23

SIGNATURES		25

	June 30,			December 31,
	2022			2021
	(Unaudited)
ASSETS
Current Assets
Cash and Cash Equivalents	$	6,416		$	21,799
Prepaid and other current assets		14,206			5,000
Total current assets		20,622			26,799

Patents, net		38,475			-

TOTAL ASSETS	$	59,097		$	26,799

Current Liabilities
Accounts payable and accrued expenses	$	1,264,134		$	826,486
Accrued liabilities - related parties		22,651			3,207
Accrued litigation settlement		400,000			120,000
Promissory note payable		63,739			-
Loans payable – related parties		602,275			219,000
Total current liabilities		2,352,799			1,168,693

TOTAL LIABILITIES		2,352,799			1,168,693

Commitments and Contingencies		-			-

Stockholders’ Equity (Deficit)
Series A Convertible Preferred Stock - $0.001 par value, 1,000,000 shares Authorized and 0 shares issued and outstanding		-			-
Common Stock - $0.001 par value, 300,000,000 shares Authorized, 229,877,509 and 228,667,229 shares issued at June 30, 2022 and December 31, 2021		229,877			228,667
Additional Paid-In Capital		71,708,164			71,017,881
Accumulated Deficit		(74,231,743	)		(72,388,442	)
Total Stockholders’ Equity (Deficit)		(2,293,702	)		(1,141,894	)

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)	$	59,097		$	26,799

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2022			2021			2022			2021

Revenues	$	-		$	-		$	-		$	59

Cost of goods sold		-			-			-			25

Gross profit		-			-			-			34

Operating Costs and Expenses
Selling, general and administrative expenses		607,186			1,231,179			1,509,332			27,878,223
Research and development		147,611			68,884			199,966			127,065
Total Operating Expenses		754,797			1,300,063			1,709,298			28,005,288

Loss from Operations		(754,797	)		(1,300,063	)		(1,709,298	)		(28,005,254	)

Other Income (Expenses)
Interest expense		(205	)		(4,413	)		(285	)		(225,639	)
Interest expense – related party		(11,535	)		-			(20,343	)		(389,804	)
Loss on settlement of debt		(112,500	)		-			(113,375	)		(35,190	)
Other income		-			-			-			304,273
Total other income (expenses)		(124,240	)		(4,413	)		(134,003	)		(346,360	)

Net Loss	$	(879,037	)	$	(1,304,476	)	$	(1,843,301	)	$	(28,351,614	)

Net Loss per common share:
Basic and diluted	$	(0.00	)	$	(0.01	)	$	(0.01	)	$	(0.13	)

Weighted average number of shares outstanding		229,737,399			226,222,528			229,257,932			224,152,495

							Additional
	Common Stock						Paid-in		Accumulated
	Shares			Amount			Capital		Deficit			Total

Balance at December 31, 2020 (audited)		189,357,090		$	189,357		$	40,696,640	$	(41,839,259	)	$	(953,262	)

Beneficial conversion feature		-			-			234,912		-			234,912

Issuance of common stock for services		100,000			100			110,900		-			111,000

Sale of common stock		125,000			125			99,875		-			100,000

Cancellation of common stock		(117,647	)		(117	)		117		-			-

Stock-based compensation		33,930,000			33,930			26,136,491		-			26,170,421

Common stock issued to settle accrued liabilities – related party		152,835			153			161,811		-			161,964

Common stock issued to settle related party advances		25,000			25			26,725		-			26,750

Common stock issued for conversion of convertible notes payable and accrued interest		1,047,139			1,047			559,024		-			560,071

Common stock issued for conversion of convertible notes payable and accrued interest – related party		1,353,111			1,353			675,202		-			676,555

Net Loss		-			-			-		(27,047,138	)		(27,047,138	)

Balance at March 31, 2021		225,972,528			225,973			68,701,697		(68,886,397	)		41,273

Stock-based compensation		325,000			325			230,425		-			230,750

Common stock issued for conversion of convertible notes payable and accrued interest		37,996			37			30,359		-			30,396

Net Loss		-			-			-		(1,304,476	)		(1,304,476	)

Balance at June 30, 2021		226,335,524		$	226,335		$	68,962,481	$	(70,190,873	)	$	(1,002,057	)

Balance at December 31, 2021 (audited)		228,667,229		$	228,667		$	71,017,881	$	(72,388,442	)	$	(1,141,894	)

Issuance of common stock for services		20,000			20			10,180		-			10,200

Sale of common stock		184,028			184			77,108		-			77,292

Common stock issued to settle accounts payable and accrued liabilities		6,252			6			3,995		-			4,001

Net Loss		-			-			-		(964,264	)		(964,264	)

Balance at March 31, 2022		228,877,509			228,877			71,109,164		(73,352,706	)		(2,014,665	)

Issuance of common stock for services		200,000			200			95,800		-			96,000

Issuance of common stock for services – related party		425,000			425			203,575		-			204,000

Common stock issued to settle accounts payable and accrued liabilities		200,000			200			95,800		-			96,000

Common stock issued to settle accounts payable and accrued liabilities – related party		425,000			425			203,575		-			204,000

Cancellation of common stock		(250,000	)		(250	)		250		-			-

Net Loss		-			-			-		(879,037	)		(879,037	)

Balance at June 30, 2022		229,877,509		$	229,877		$	71,708,164	$	(74,231,743	)		(2,293,702	)

	For the Six Months Ended June 30,
	2022			2021

Cash Flows from Operating Activities:
Net (Loss)	$	(1,843,301	)	$	(28,351,614	)
Adjustments to Reconcile net (loss) to Net Cash Used In Operating Activities:
Stock for services and compensation		310,200			26,512,173
Amortization expense		2,025			-
Amortization of debt discount		-			608,710
Loss on settlement of debt		113,375			35,190
Changes in assets and liabilities:
Inventory		-			25
Prepaid and other current assets		(9,206	)		(5,000	)
Subscription Receivable		-			-
Accounts payable and accrued expenses		500,774			138,167
Accrued liabilities – related party		146,944			236,805
Accrued litigation settlement		380,000			562,000
Net Cash Used In Operating Activities		(399,189	)		(263,544	)

Cash Flows from Investing Activities:
Purchase of intangible assets		(40,500	)		-
Net Cash Used in Investing Activities		(40,500	)		-

Cash Flows from Financing Activities:
Proceeds from related party		383,275			20,000
Repayments on loan payable		(36,261	)		-
Proceeds from sale of common stock		77,292			100,000
Proceeds from convertible notes payable		-			115,000
Cash flow provided by financing activities		424,306			235,000
Decrease in Cash and Cash Equivalents		(15,383	)		(28,544	)
Cash and Cash Equivalents – Beginning of period		21,799			46,076

CASH AND CASH EQUIVALENTS – END OF PERIOD	$	6,416		$	17,532

Supplemental cash flow information:
Cash paid for interest	$	285		$	-
Cash paid for income taxes	$	-		$	-

Non-cash Investing & Financing Activities:
Cancellation of common stock	$	250		$	117
Conversion of convertible notes payable and accrued interest – related party to convertible notes payable and accrued interest	$	-		$	176,502
Common stock issued for conversion of convertible notes payable and accrued interest – related party	$	-		$	676,555
Common stock issued for conversion of convertible notes payable and accrued interest	$	-		$	590,465
Conversion of accounts payable to convertible notes payable	$	-		$	90,000
Common stock issued to settle related party advances	$	-		$	26,750
Common stock issued to settle accrued liabilities – related party	$	127,500		$	161,964
Conversion of accrued liabilities – related party to convertible notes payable – related party	$	-		$	112,500
Common stock issued to settle accrued liabilities	$	63,126		$	-
Accrued litigation settlement paid with loan payable	$	100,000		$	-
Debt discount related to beneficial conversion feature	$	-		$	234,912

Year	Amount
2022 (remaining)	$	2,025
2023		4,050
2024		4,050
2025		4,050
2026		4,050
Thereafter		20,250
	$	38,475

				Weighted
				Average
				Grant
	Number of			Date Fair
	Units			Value
Total awards outstanding at December 31, 2021		28,190,000		$	0.96
Units granted		14,225,000		$	0.43
Units Exercised/Released		-		$	-
Units Cancelled/Forfeited		(11,500,000	)	$	1.18
Total awards outstanding at June 30, 2022		30,915,000		$	0.63

	·	$50,000 upon the entry of the judgment;
	·	$100,000 within 90 days of the entry of the judgment;
	·	$150,000 within 180 days of the entry of the judgment; and
	·	$150,000 within 270 days of the entry of the judgment, plus statutory interest on payments made after 30 days of the entry of the judgment pursuant to U.S.C. Section 1961

	·	Hospitals and Surgery Centers for all Internal Surgical usage (in the event we obtain FDA Class III approval)
	·	Hospitals, Clinics and Physicians for external trauma
	·	EMS, Fire Departments and other First Responders
	·	Military Medical Care Providers
	·	Hemodialysis centers
	·	Nursing Homes and Assisted Living Facilities
	·	Dental and Oral & Maxillofacial Surgery Offices
	·	Veterinary hospitals

	For the Three Months Ended June 30,
	2022			2021

Revenue	$	-		$	-

Gross profit	$	-		$	-

Operating (expenses)	$	(754,797	)	$	(1,300,063	)

Operating (loss)	$	(754,797	)	$	(1,300,063	)

Other income (expense)	$	(124,240	)	$	(4,413	)

Net (loss)	$	(879,037	)	$	(1,304,476	)

Net loss per common share - basic and diluted	$	(0.00	)	$	(0.01	)

Date of Sale	Title of Security	Number Sold	Consideration Received
January 2022	Common Stock	6,252	$3,126 of accrued liabilities
February 2022	Common Stock	184,028	$77,292 in cash at $0.42 per share
February 2022	Common Stock	20,000	$10,200 in services provided
April 2022	Common Stock	625,000	$187,500 of accrued liabilities
April 2022	Common Stock	625,000	$300,000 in services provided

3(i)		Articles of Incorporation of the Company dated February 28, 1997. (1)

3(ii)		Amendment to Articles of Incorporation. (1)

3(iii)		By-laws of the Company*

3(iv)		August 2015 Amendment to Articles of Incorporation. (3)

10.1		Services Agreement with Louis Schiliro (4)

10.2		Restricted Stock Unit Agreement – Louis Schiliro (5)

10.3		Restricted Stock Unit Agreement – Doug Beplate (5)

10.4		Services Agreement with Brian Thom (6)

10.5		Restricted Stock Unit Agreement - Brian Thom (6)

10.6		Services Agreement with Kristofer Heaton (7)

10.7		Restricted Stock Unit Agreement - Kristofer Heaton (7)

10.8		Amendment to Restricted Stock Unit Agreement – Brian Thom (8)

10.9		Restricted Stock Unit Agreement – Robert Denser (8)

21		Subsidiaries of the Registrant – none

31.1		Certification of Principal Executive Officer*

31.2		Certification of Principal Financial Officer*

32.1		Section 1350 Certificate by Principal Executive Officer*

32.2		Section 1350 Certificate by Principal Financial Officer*

99.1		2019 Employee Benefit and Consulting Services Compensation Plan (9)

101.INS		Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).

101.SCH		Inline XBRL Taxonomy Extension Schema Document.

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB		Inline XBRL Taxonomy Extension Labels Linkbase Document.

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

(1)	Incorporated by reference to the Company’s Form 10-Q for the quarter ended September 30, 2014.

(2)	Incorporated by reference to the Company’s Form 10-K for the year ended December 31, 2005.

(3)	Incorporated by reference to Form 8-K dated August 7, 2015 – date of earliest event filed on August 10, 2015.

(4)	Incorporated by reference to the Company’s Form 10-Q for the quarter ended June 30, 2018.

(5)	Incorporated by reference to the Company’s Form 10-K for the year ended December 31, 2018.

(6)	Incorporated by reference to the Form 8-K dated December 2, 2020

(7)	Incorporated by reference to the Form 8-K dated January 11, 2021

(8)	Incorporated by reference to the Form 8-K dated June 23, 2022

(9)	Incorporated by reference to Form S-8 dated November 1, 2019

	·	Boo Boo Strips
	·	The Ultimate Bandage
	·	Hemostrips
	·	Nik Fix

	UNITED HEALTH PRODUCTS, INC.

Dated: August 15, 2022	By:	/s/ Brian Thom
		Brian Thom
		Principal Executive Officer

Signatures		Title	Date

By:	/s/ Brian Thom	Chief Executive Officer, Principal Executive Officer and Director	August 15, 2022
	Brian Thom

By:	/s/ Kristofer Heaton	Vice President, Finance and Principal Financial Officer	August 15, 2022
	Kristofer Heaton

By:	/s/ Robert Denser	Director	August 15, 2022
	Robert Denser

I, Brian Thom certifies that:

1.	I have reviewed this quarterly report on Form 10-Q of United Health Products, Inc.;

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.	The registrant’s other certifying officer and I are 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.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the 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 control over financial reporting.

Date: August 15, 2022	By:	/s/ Brian Thom
		Brian Thom
		Principal Executive Officer

I, Kristofer Heaton certifies that:

1.	I have reviewed this quarterly report on Form 10-Q of United Health Products, Inc.;

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.	The registrant’s other certifying officer and I are 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.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the 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 control over financial reporting.

	1.	The Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, to which this Certification is attached as Exhibit 32.1 (the “Quarterly 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 Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	By:	/s/ Kristofer Heaton
		Kristofer Heaton
		Principal Financial Officer