Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yesq ☐ Nox ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yesq ☐ Nox ☒

Indicate whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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. Yesx ☒ Noq ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files). Yesq ☒ Nox ☐

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained in this herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form ~~10-K~~10-K/A or any amendment to this Form ~~10-K.~~10-K/A. Yesq ☐ Nox ☒

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company in Rule 12b-2 of the Exchange Act (Check one):

Indicate by check mark whether the registrant is an emerging growth company q☐

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 q☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yesq ☒ Nox ☐

As of ~~August~~September 22, ~~2019, 21,490,621~~2021, there were 28,262,371 shares of the registrant’s Common Stock ~~were~~ outstanding. As of September 30, ~~2018,~~2020, the aggregate market value of the registrant’s Common Stock held by non-affiliates of the registrant (without admitting that such person whose shares are not included in such calculation is an affiliate) was approximately ~~$1,651,000~~$425,000 based on the last sale price as quoted on the OTC Markets quoting system on such date.

This Amendment No. 1 on Form 10-K/A (“Amendment No. 1”) amends our Annual Report on Form 10-K contains certain statements that are “forward-looking” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Litigation Reform Act”). These forward looking statements and other information are based on our beliefs as well as assumptions made by us using information currently available.

We develop advanced polymer materials which provide critical characteristics in the design and development of medical devices. Our biomaterials are used in devices that are designed for treating a broad range of anatomical sites and disease states. Our business model leverages our proprietary materials science technology and manufacturing expertise in order to expand our product sales and royalty and license fee income.

~~Our leading edge technology, notably products such as ChronoFlex®, ChronoSil~~^TM, HydroMed™, and HydroThane™, has been developed to overcome a wide range of design and functional challenges, from the need for dimensional stability, ease of manufacturability and demanding physical properties to overcoming environmental stress cracking and providing heightened lubricity for ease of insertion. Our polymer product lines are compliant with measures applying to the processing of certain animal waste to protect against transmissible spongiform encephalopathies as set forth in European Council Decision 1999/534/EC. Our new product extensions allow us to customize our proprietary polymers for specific customer applications in a wide range of device categories.

We were founded in 1993 as a subsidiary of PolyMedica Corporation (“PolyMedica”). In June 1996, PolyMedica distributed all of the shares of CardioTech International, Inc.’s (“CardioTech”) common stock, par value $0.01 per share, which PolyMedica owned, to PolyMedica stockholders of record. Our materials science technology is principally based upon the ChronoFlex^TM ~~proprietary polymers which represent our core technology.~~

~~In July 1999, we acquired the assets of Tyndale-Plains-Hunter (“TPH”), a manufacturer of specialty hydrophilic polyurethanes.~~

In July 1999, Dermaphylyx International, Inc. (“Dermaphylyx”) was formed by certain of our affiliates to develop advanced wound healing products. Dermaphylyx was merged with and into us, effective March 2004, as a wholly-owned subsidiary. In June 2006, our Board of Directors decided to cease the operations of Dermaphylyx. We considered the net assets of Dermaphylyx to be immaterial.

In April 2001, we acquired Catheter and Disposables Technology, Inc. (“CDT”). CDT, which was located in Minnesota, was an original equipment manufacturer and supplier of private-label advanced disposable medical devices from concept to finished packaged and sterilized products, providing engineering services and contract manufacturing. In the development of our business model, we reviewed the strategic fit of our various business operations and determined that CDT did not fit our strategic direction. CDT was sold in March 2008.

In April 2003, we acquired Gish Biomedical, Inc. (“Gish”). Gish was located in southern California and manufactured single use cardiopulmonary bypass products having a disposable component. In the development of our business model, we reviewed the strategic fit of our various business operations and determined that Gish did not fit our strategic direction. Gish was sold in July 2007.

At our 2007 Annual Meeting, our stockholders approved our reincorporation from Massachusetts to Delaware. Our Articles of Charter Surrender in Massachusetts and Certificate of Incorporation and Certificate of Conversion in Delaware were effective as of October 26, 2007. We changed our name from CardioTech International, Inc. to AdvanSource Biomaterials Corporation, effective October 15, 2008, and filed our Certificate of Amendment to our Certificate of Incorporation filed with the Secretary of State of the State of Delaware.

Our vision is to be a world-class, technology company focused on customer-driven solutions in the medical device industry. Our unique materials science strengths are marketed to our existing customer base and to a broader range of medical device developers. We believe there exists a major void in the marketplace that could be filled with our strong materials science capabilities to maximize the early development phase of devices that utilize polymers.

Our unique materials science strengths are embodied in our family of proprietary polymers. We manufacture and sell our custom polymers under the trade names ChronoFilm, ChronoFlex, ChronoThane, ChronoPrene, ChronoSil, HydroThane, and PolyBlend. The ChronoFlex family of polymers is marketed to an expanding customer base. Our goal is to fulfill the market’s need for advanced materials science capabilities, thereby enabling customers to improve devices that utilize polymers. Our chemists continue to develop the ChronoFlex family of medical-grade polymers. Conventional polymers are susceptible to degradation resulting in catastrophic failure of long-term implantable devices such as pacemaker leads. ChronoFlex and ChronoThane polymers are designed to overcome such degradation and reduce the incidents of infections associated with invasive devices.

Key characteristics of our polymers include i) optional use as lubricious coatings for smooth insertion of a device into the body and ii) mechanical properties, such as hardness and elasticity sufficient to meet engineering requirements. We believe our technology has wide application in increasing biocompatibility, drug delivery, and expanding the utility of complex devices in the hospital and clinical environment.

We also manufacture and sell our proprietary HydroThane polymers to medical device manufacturers that are evaluating HydroThane for use in their products. HydroThane is a thermoplastic, water-absorbing, polyurethane elastomer possessing properties which we believe make it well suited for the complex requirements of a variety of catheters. In addition to its physical properties, we believe HydroThane exhibits an inherent degree of bacterial resistance, clot resistance and biocompatibility. When hydrated, HydroThane has elastic properties similar to living tissue.

We also manufacture specialty hydrophilic polyurethanes that are primarily sold to customers as part of exclusive arrangements. Specifically, one customer is supplied tailored, patented hydrophilic polyurethanes in exchange for a multi-year, royalty-bearing exclusive supply contract which generates royalty income for us.

~~ChronoFilm is a registered trademark of PolyMedica. ChronoFlex is our registered trademark. ChronoThane, ChronoPrene, ChronoSil, HydroThane, and PolyBlend are our trade names.~~

We own or license four patents relating to our vascular graft manufacturing and polymer technology and products. While we believe our patents secure our exclusivity with respect to certain of our technologies, there can be no assurance that any patents issued would not afford us adequate protection against competitors which sell similar inventions or devices, nor can there be any assurance that our patents will not be infringed upon or designed around by others. However, we intend to vigorously enforce all patents issued to us.

In August 2010, the U.S. Patent and Trademark Office issued us a U.S. patent on our proprietary antimicrobial formulation for ChronoFlex. Current technology in the marketplace uses antibiotic drugs. The antimicrobial component of our polymers has been designed to be non-leaching as a result of the polymerization process.

In October 2009, we filed for a U.S. patent on ChronoSil, our silicone-urethane copolymer product, and methods for making ChronoSil. ChronoSil can have many physical properties which are usually associated with polyurethanes, but also the feel and characteristics of silicones.

In addition, PolyMedica has granted us an exclusive, perpetual, worldwide, royalty-free license for the use of one polyurethane patent and related technology in the field consisting of the development, manufacture and sale of implantable medical devices and biodurable polymer material to third parties for the use in medical applications (the “Implantable Device and Materials Field”). PolyMedica also owns, jointly with Thermedics, Inc., an unrelated company that manufactures medical grade polyurethane, the ChronoFlex polyurethane patents relating to the ChronoFlex technology. PolyMedica has granted us a non-exclusive, perpetual, worldwide, royalty-free sublicense of these patents for use in the Implantable Devices and Materials Field.

~~We manufacture polymers at our leased facility in Wilmington, Massachusetts.~~

We manufacture polymeric materials with a wide-range of physical and biological properties. Our polymers are available with a variety of hardness and mechanical strengths and possess unique characteristics such as biodurability, biocompatibility, lubricity and antimicrobial properties. These polymeric materials may be used as structural engineering polymers or as coatings for metallic and polymeric surfaces and have a history of use in both short and long-term implant applications.

We have been provided exclusive and non-exclusive perpetual, world-wide, royalty-free license and sublicense rights for the use of polyurethane patents and related technology for the development, manufacture and sale of implantable medical devices and biodurable polymer material. As a result, we are able to enter into license and royalty arrangements for the exclusive use of our customized polymers. During the years ended March 31, 2019 and 2018, we generated revenues from license and royalty fees of approximately $938,000 and $1,059,000, respectively.

We sell our polymers directly to our customers from our Massachusetts facility. Our Executive Vice President of Commercial Operations has primary responsibilities in our sales, marketing and business development efforts. Our international sales distribution includes an independent distributor based in China.

~~We have not experienced, and do not expect to experience, in any material respect, seasonality in sales of our products.~~

We perform ongoing credit evaluations and maintain allowances for potential credit losses. As of March 31, 2019, we had accounts receivable-trade of approximately $61,000, or 13%, due from one customer. As of March 31, 2018, we had accounts receivable-trade of approximately $102,000, or 51%, due from three customers.

As of March 31, 2019, we had approximately $185,000 due from two customers related to receivables on license fees and royalties. As of March 31, 2018, we had approximately $368,000 due from two customers related to receivables on license fees and royalties. These amounts are classified as accounts receivable-other in our balance sheets.

~~We do not have any facilities, property or other assets located in any geographic area other than the United States of America.~~

In the normal course of business, we have entered and will continue to enter into licensing, royalty and related agreements. In addition, we have certain customers that represent a significant component of our revenue. For the year ended March 31, 2019, two customers represented approximately 24% and 11% of revenues, respectively. For the year ended March 31, 2018, four customers represented approximately 34%, 11%, 11% and 10%, respectively, of our revenues.

~~Our total revenues were approximately $3,346,000 and $2,918,000 for the years ended March 31, 2019 and 2018, respectively.~~

Competition in the medical device industry, in general, is intense and based primarily on scientific and technological factors, the availability of patent and other protection for technology and products, the ability to commercialize technological developments and the ability to obtain governmental approval for testing, manufacturing and marketing products.

Competition among products is based, among other things, on product efficacy, safety, reliability, availability, price and patent position. An important factor is the timing of the market introduction of our products or the products of competitors. Accordingly, the relative speed with which we can develop products and supply commercial quantities of the products to the market is expected to be an important competitive factor. Our competitive position depends upon our ability to attract and retain qualified personnel, to obtain patent protection or otherwise develop proprietary products or processes, and to secure sufficient capital resources for the often substantial period between technological conception and commercial sales.

Our development decisions are based on: (i) development costs, (ii) product need, (iii) third-party interest, (iv) funding availability, and (v) regulatory considerations. Research, development and regulatory expenditures for the years ended March 31, 2019 and 2018 were approximately $345,000 and $375,000, respectively, and consisted primarily of salaries and related costs (approximately 72% and 69% of research and development expenses in fiscal 2019 and 2018, respectively), and are expensed as incurred.

From time to time, legislation is drafted and introduced in Congress that could significantly change the statutory provisions governing the approval, manufacturing and marketing of drug products and medical devices.

~~Our backlog in the ordinary course of business for biomaterial products is approximately $365,000 at March 31, 2019.~~

Our direct expenditures for environmental compliance were not material in the two most recent fiscal years. However, certain costs of manufacturing have increased due to environmental regulations placed upon suppliers of components and services.

As of March 31, 2019, we had 11 full-time employees at our leased facility in Wilmington, Massachusetts in the following positions: (i) five in production, (ii) two in research and development, (iii) two in sales and marketing, and (iv) two in administration.

~~None of these employees are covered by a collective bargaining agreement, and management considers its relations with its employees to be good.~~

You should carefully consider the risks and uncertainties described below and the other information in this filing before deciding to purchase our common stock. If any of these risks or uncertainties occurs, our business, financial condition or operating results could be materially harmed. In that case the trading price of our common stock could decline and you could lose all or part of your investment. The risks and uncertainties described below are not the only ones we may face. We believe that this filing contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to regulatory risks and clinical uncertainties. Such statements are based on management’s current expectations and are subject to facts that could cause results to differ materially from the forward-looking statements. See Item 1. Description of Business – “Cautionary Note Regarding Forward Looking Statements.”

We have reported net losses in 9 of the last 10 fiscal years and may continue to report net losses in the future. There can be no assurance that our revenue will be maintained at the current level or increase in the future.

Our future growth may depend on our ability to raise capital for acquisitions, to support research and development activities for modification of existing biomaterials and development of new biomaterials, including advanced applications for our biomaterials, and to market and sell our advanced biomaterials. Our capital requirements depend on numerous factors, including but not limited to, our results of operations; the progress of our research and development programs; the cost of filing, prosecuting, defending and enforcing any intellectual property rights; competing technological and market developments; changes in our development of commercialization activities and arrangements; and the purchase of additional facilities and capital equipment.

~~If we cannot obtain the additional capital required to fund our operations on favorable terms or at all, we may have to delay or reconsider our growth strategy.~~

Our growth strategy may require additional capital for, among other purposes, completing acquisitions of companies and customers’ product lines and manufacturing assets, integrating acquired companies and assets, acquiring new equipment and maintaining the condition of existing equipment. If cash generated internally is insufficient to fund capital requirements, or if we desire to make additional acquisitions, we will require additional debt or equity financing. Adequate financing may not be available or, if available, may not be available on terms satisfactory to us. If we raise additional capital by issuing equity or convertible debt securities, the issuance may dilute the share ownership of the existing investors. In addition, we may grant future investors rights that are superior to those of our existing investors. If we fail to obtain sufficient additional capital in the future, we could be forced to curtail our growth strategy by reducing or delaying capital expenditures and acquisitions, selling assets or restructuring or refinancing our indebtedness, or delaying plans for clinical trials.

~~Adverse economic and geopolitical conditions could have a material adverse effect on our ability to raise capital to fund future growth and product development.~~

Our business may be affected by the ongoing volatility and illiquidity in the financial and credit markets, the general global economic recession, and other market or economic challenges experienced by the U.S. economy. If economic conditions persist or deteriorate and our licensing and product revenue is insufficient to support our product development and growth strategies, then reduced liquidity in the capital markets may impair our ability to access capital on terms and conditions that we find acceptable, or at all. In addition, the value and liquidity of our short-term investments and cash deposits could be reduced as a result of a deterioration of the financial condition of the institutions that hold our cash deposits.

~~We have incurred substantial operating losses and we may never be profitable.~~

Our total revenues were approximately $3,346,000 and $2,918,000 for the years ended March 31, 2019 and 2018, respectively. We had net income of $334,000 and net loss of approximately $202,000 for the fiscal years ended March 31, 2019 and 2018, respectively. There is a risk that we will never be profitable. Our ability to generate enough revenues to achieve profits will depend on a variety of factors, many of which are outside our control, including:

~~extent of patent and intellectual property protection afforded to our products;~~

demand for our advanced biomaterials by existing and potential developers of medical devices and both the time for development of devices by medical device developers and their success in obtaining regulatory approvals and commercialization of medical devices which incorporate our advanced biomaterials;

~~cost and availability of raw material and intermediate component supplies;~~

~~changes in governmental (including foreign governmental) initiatives and requirements;~~

~~costs associated with equipment development, repair and maintenance; and~~

~~our ability to manufacture and deliver products at prices that exceed our costs.~~

~~Our operating results fluctuate significantly from period-to-period and may not be indicative of future results.~~

Our operating results have fluctuated in the past from quarter to quarter and are likely to fluctuate significantly in the future due to a variety of factors, many of which are beyond our control, including:

~~the timing of actual customer orders and requests for product shipment and the accuracy of our customers’ forecasts of future production requirements;~~

~~the reduction, rescheduling or cancellation of product orders and development and design services requested by customers;~~

~~difficulties in forecasting demand for our products and the planning and managing of inventory levels;~~

~~the introduction and market acceptance of our customers’ new products and changes in demand for our customers’ existing products;~~

~~changes in the relative portion of our revenue represented by our various products, services and customers, including the relative mix of our business across our target markets;~~

~~changes in competitive or economic conditions generally or in our customers’ markets;~~

~~the amount and timing of costs associated with product warranties and returns;~~

~~fluctuations in manufacturing yields and yield losses and availability of production capacity;~~

~~changes in our product distribution channels and the timeliness of receipt of distributor resale information;~~

~~pressure on our selling prices as a result of healthcare industry cost containment measures.~~

As a result of these factors, many of which are difficult to control or predict, as well as the other risk factors discussed in this report, we may experience material adverse fluctuations in our future operating results on a quarterly or annual basis.

~~The medical device industry is cyclical, and an industry downturn could adversely affect our operating results.~~

~~Business conditions in the medical device industry have rapidly changed between periods of strong and weak demand. The industry is characterized by:~~

~~rapid technological change and the introduction of new products by customers;~~

~~These factors could harm our business and cause our operating results to suffer.~~

The failure of our customers and potential customers, who utilize our advanced biomaterials in their medical devices, to complete development of their medical technology, obtain government approvals, including required FDA approvals, or to comply with ongoing governmental regulations could delay or limit introduction of their proposed products, thereby negatively impacting our ability to generate future revenues from product sales and royalty and development fees.

Research, development and production activities undertaken by our customers and potential customers engaged in the development of medical devices which utilize our advanced biomaterials, are subject to extensive regulation for safety, efficacy and quality by numerous government authorities in the United States and abroad.

Before receiving FDA approval to market their medical devices utilizing our advanced biomaterials, our customers and potential customers will have to demonstrate that their medical devices are safe and effective on the patient population. Clinical trials, manufacturing and marketing of medical devices are subject to the rigorous testing and approval process of the FDA and equivalent foreign regulatory authorities. The Federal Food, Drug and Cosmetic Act and other federal, state and foreign statutes and regulations govern and influence the testing, manufacture, labeling, advertising, distribution and promotion of drugs and medical devices. As a result, clinical trials and regulatory approval of medical devices can take a number of years or longer to accomplish and require the expenditure of substantial financial, managerial and other resources.

In order to be commercially viable, our customers and potential customers must successfully research, develop, obtain regulatory approval, manufacture, market and distribute their medical devices. For each medical device incorporating our advanced biomaterials, our customers and potential customers must successfully meet a number of critical developmental milestones, including:

~~demonstrate benefit from the use of their medical devices in various contexts;~~

~~demonstrate through pre-clinical and clinical trials that their medical devices are safe and effective; and~~

~~establish a viable good manufacturing practice capable of potential scale up.~~

The time frame necessary to achieve these developmental milestones may be long and uncertain, and our customers and potential customers may not successfully complete these milestones for any of their intended products in development.

In order to conduct clinical trials that are necessary to obtain approval by the FDA to market a product, it is necessary to receive clearance from the FDA to conduct such clinical trials. The FDA can halt clinical trials at any time for safety reasons or because clinical investigators do not follow the FDA’s requirements for conducting clinical trials. If our customers or potential customers are unable to receive clearance to conduct clinical trials or the trials are halted by the FDA, we would not be able to achieve any revenue from the sale of biomaterials or royalty and development fees from our customers’ or potential customers’ products as it is illegal to sell any medical device for human consumption without FDA approval.

More generally, the manufacture and sale of medical devices, including products currently sold by our customers or potential customers and their other potential products, are subject to extensive regulation by numerous governmental authorities in the United States, principally the FDA, and corresponding state human services agencies. In order for them to market their products for clinical use in the United States, they must obtain clearance from the FDA of a 510(k) pre-market notification or premarket approval application. In addition, certain material changes to medical devices also are subject to FDA review and clearance or approval. The process of obtaining FDA and other required regulatory clearances and approvals is lengthy, expensive and uncertain, frequently requiring from one to

several years from the date of FDA submission if pre-market clearance or approval is obtained at all. Securing FDA clearances and approvals may require the submission of extensive clinical data and supporting information to the FDA.

Sales of medical devices outside of the United States are subject to international regulatory requirements that vary from country to country. The time required to obtain approval for sales internationally may be longer or shorter than that required for FDA clearance or approval, and the requirements may differ. There can be no assurance that our customers or potential customers will be able to obtain approval in a particular country for any of their future products.

Regulatory clearances or approvals, if granted, may include significant limitations on the indicated uses for which the product may be marketed. In addition, to obtain such clearances or approvals, the FDA and certain foreign regulatory authorities impose numerous other requirements with which medical device manufacturers must comply.

FDA enforcement policy strictly prohibits the marketing of cleared or approved medical devices for uncleared or unapproved uses. In addition, product clearances or approvals could be withdrawn for failure to comply with regulatory standards or the occurrence of unforeseen problems following initial marketing. Our customers and potential customers will be required to adhere to applicable FDA good manufacturing practice (“GMP”) regulations and similar regulations in other countries, which include testing, control, and documentation requirements. Ongoing compliance with GMP and other applicable regulatory requirements, including marketing products for unapproved uses, could result in, among other things, warning letters, fines, injunctions, civil penalties, recall or seizure of products, total or partial suspension of production, refusal of the government to grant pre-market clearance or pre-market approval for devices, withdrawal of clearances or approvals and criminal prosecution. Changes in existing regulations or adoption of new governmental regulations or policies could prevent or delay regulatory approval of their products.

There can be no assurance that our customers or potential customers will be able to obtain FDA 510(k) clearance or premarket approval for their products under development or other necessary regulatory approvals or clearances on a timely basis or at all. Delays in receipt of or failure to receive U.S. or foreign clearances or approvals, the loss of previously obtained clearance or approvals, or failure to comply with existing or future regulatory requirements would have a material adverse effect on our business with respect of our ability to generate revenues from product sales to and royalty and development fees from our customers and potential customers utilizing our advanced biomaterials in their medical devices.

Our markets are subject to technological change and our success depends on our ability to modify existing advanced biomaterials and develop and introduce new advanced biomaterials for use by customers and potential customers in their medical devices.

Our success is dependent in part on the modification of existing advanced biomaterials and the design and development of new advanced biomaterials for use in the medical device industry. To modify existing advanced biomaterials and develop new advanced biomaterials and designs for the medical device market, we must develop, gain access to and use leading technologies in a cost effective and timely manner and continue to expand our technical and design expertise. The product development process is time-consuming and costly, and there can be no assurance that product development will be successfully completed, that necessary regulatory clearances or approvals will be granted by the FDA on a timely basis, or at all, or that the potential products will achieve market acceptance. Our failure to modify existing advanced biomaterials, develop new advanced biomaterials, or successfully market existing and potential new advanced biomaterials; and the failure of our customers and potential customers in obtaining necessary regulatory clearances or approvals for medical devices using our advanced biomaterials, could have a material adverse effect on our business, financial condition and results of operations.

We depend on outside suppliers and subcontractors, and our production and reputation could be harmed if they are unable to meet our volume and quality requirements and alternative sources are not available.

We have various “sole source” suppliers who supply key components for our products. Our outside suppliers may fail to develop and supply us with products and components on a timely basis, or may supply us with products and

components that do not meet our quality, quantity or cost requirements. If any of these problems occur, we may be unable to obtain substitute sources of these products and components on a timely basis or on terms acceptable to us, which could harm our ability to: i) manufacture our own products and components profitably or on time, and ii) ship products to customers on time and generate revenues. In addition, if the processes that our suppliers use to manufacture products and components are proprietary, we may be unable to obtain comparable components from alternative suppliers.

A significant portion of our product sales and royalty, license and development fees come from two large customers, and any loss, cancellation or delay in sales to these customers could harm our operating results.

~~Our ability to grow and sustain growth levels may be adversely affected by slowdowns in the U.S. economy.~~

Due to the recent decrease in corporate profits, capital spending and consumer confidence, we have experienced weakness in certain of our end markets. We are primarily susceptible when customers stop placing orders for us to supply advanced biomaterials or when customers experience reduced sales of their medical devices for which we receive royalties on product sales. The medical commercial markets, including bio-medical research and development and medical device manufacturing, could be affected by the past and present slowdown in the U.S. economy. If the economic slowdown persists and capital spending for research and development from our customers decreases, our business, financial condition and results of operations may be adversely affected.

~~We could be harmed by litigation involving patents and other intellectual property rights.~~

None of our patents or other intellectual property rights has been successfully challenged to date. However, in the future, we could be accused of infringing the intellectual property rights of other third parties. We also have certain indemnification obligations to customers with respect to the infringement of third party intellectual property rights by our products. No assurance can be provided that any future infringement claims by third parties or claims for indemnification by customers or end users of our products resulting from infringement claims will not be asserted or that assertions of infringement, if proven to be true, will not harm our business.

In the event of any adverse ruling in any intellectual property litigation, we could be required to pay substantial damages, cease the manufacturing, use and sale of infringing products, discontinue the use of certain processes or obtain a license from the third party claiming infringement with royalty payment obligations by us.

Any litigation relating to the intellectual property rights of third parties, whether or not determined in our favor or settled by us, is costly and may divert the efforts and attention of our management and technical personnel.

~~We may not be able to protect our intellectual property rights adequately.~~

Our ability to compete is affected by our ability to protect our intellectual property rights. We rely on a combination of patents, trademarks, copyrights, trade secrets, confidentiality procedures and non-disclosure and licensing arrangements to protect our intellectual property rights. Despite these efforts, we cannot be certain that the steps we take to protect our proprietary information will be adequate to prevent misappropriation of our technology, or that our competitors will not independently develop technology that is substantially similar or superior to our technology. More specifically, we cannot assure you that any future applications will be approved, or that any issued patents will provide us with competitive advantages or will not be challenged by third parties. Nor can we assure you

that, if challenged, our patents will be found to be valid or enforceable, or that the patents of others will not have an adverse effect on our ability to do business. Furthermore, others may independently develop similar products or processes, duplicate our products or processes or design their products around any patents that may be issued to us.

~~Our future success depends on the continued service of management, engineering and sales personnel and our ability to identify, hire and retain additional personnel.~~

Our success depends, to a significant extent, upon the efforts and abilities of members of senior management. The loss of the services of one or more of our senior management or other key employees could adversely affect our business. We do not maintain key person life insurance on any of our officers, employees or consultants.

There is intense competition for qualified employees in the medical industry, particularly for highly skilled design, applications, engineering and sales people. We may not be able to continue to attract and retain technologists, managers, or other qualified personnel necessary for the development of our business or to replace qualified individuals who could leave us at any time in the future. Our anticipated growth is expected to place increased demands on our resources, and will likely require the addition of new management and engineering staff as well as the development of additional expertise by existing management employees. If we lose the services of or fail to recruit engineers or other technical and management personnel, our business could be harmed.

~~Periods of rapid growth and expansion could place a significant strain on our resources, including our employee base.~~

To manage our possible future growth effectively, we will be required to continue to improve our operational, financial and management systems. In doing so, we will periodically implement new software and other systems that will affect our internal operations regionally or globally.

Future growth will also require us to successfully hire, train, motivate and manage our employees. In addition, our continued growth and the evolution of our business plan will require significant additional management, technical and administrative resources. We may not be able to effectively manage the growth and evolution of our current business.

We are exposed to product liability and clinical and pre-clinical liability risks which could place a substantial financial burden on us, if we are sued. Although we have $5 million in product liability insurance coverage, that amount may not be sufficient to cover all potential claims made against us. Additionally, we face the risk of financial exposure to product liability claims alleging that the use of devices that incorporate our products resulted in adverse effects.

While we are not aware of any claim at this time, our business exposes us to potential product liability, recalls and other liability risks that are inherent in the testing, manufacturing and marketing of medical products. We cannot assure you that such potential claims will not be asserted against us. In addition, the use in our clinical trials of medical products that our potential collaborators may develop and the subsequent sale of these products by us or our potential collaborators may cause us to bear a portion of or all product liability risks. A successful liability claim or series of claims brought against us could have a material adverse effect on our business, financial condition and results of operations.

We cannot assure you that we will be able to obtain or maintain adequate product liability insurance on acceptable terms, if at all, or that such insurance will provide adequate coverage against our potential liabilities. Furthermore, our current and potential partners with whom we have collaborative agreements or our future licensees may not be willing to indemnify us against these types of liabilities and may not themselves be sufficiently insured or have a net worth sufficient to satisfy any product liability claims. Claims or losses in excess of any product liability insurance coverage that may be obtained by us could have a material adverse effect on our business, financial condition and results of operations. We do not currently carry recall insurance and we may be subject to significant recall costs in the event of a recall.

We are subject to a variety of laws, rules and regulations in the United States related to the use, storage, handling, discharge and disposal of certain chemical materials such as isocyanates, alcohols, dimethylacetamide, and glycols used in our research and manufacturing process. Any of those regulations could require us to acquire expensive equipment or to incur substantial other expenses to comply with them. If we incur substantial additional expenses, product costs could significantly increase. Our failure to comply with present or future environmental laws, rules and regulations could result in fines, suspension of production or cessation of operations.

If we fail to implement new or improved internal controls over financial reporting as required by Section 404 of the Sarbanes-Oxley Act of 2002, we may not be able to comply with the requirements of Section 404 in a timely

~~manner. This could result in investors losing confidence in the reliability of our financial statements, which could result in a decrease in the value of our common stock.~~

As directed by Section 404 of the Sarbanes-Oxley Act of 2002, the Securities and Exchange Commission adopted rules requiring public companies to include a report of management on the company’s internal control over financial reporting in their annual reports on Form 10-K. This report is required to contain an assessment by management of the effectiveness of such company’s internal controls over financial reporting. Although management has concluded that our internal control over financial reporting was effective as of March 31, 2019, there is a risk that that we may identify previously unknown deficiencies or weaknesses in our internal controls. If we fail to implement required new or improved controls, we may be unable to comply with the requirements of Section 404. This could result in an adverse reaction in the financial markets due to a loss of confidence in the reliability of our financial statements, which could cause the market price of our common stock to decline and make it more difficult for us to finance our operations.

~~Under current rules, we are required to report on the effectiveness of our internal controls for the year ended March 31, 2019.~~

~~Compliance with Regulations Governing Public Company Corporate Governance and Reporting is Complex and Expensive.~~

Many laws and regulations impose obligations on public companies, which have increased the scope, complexity and cost of corporate governance, reporting and disclosure practices. Examples include the Sarbanes-Oxley Act of 2002, The Dodd-Frank Wall Street Reform and Consumer Protection Act, and the SEC’'s requirements for public companies to provide financial statements in interactive data format using the eXtensible Business Reporting Language, or XBRL. Our implementation of certain aspects of these laws and regulations has required and will continue to require substantial management time and oversight and may require us to incur significant additional accounting and legal costs. We continually evaluate and monitor developments with respect to new and proposed rules and cannot predict or estimate the ultimate amount of additional costs we may incur or the timing of such costs. These laws and regulations are also subject to varying interpretations, in many cases due to their lack of specificity, and as a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. Although we are committed to maintaining high standards of corporate governance and public disclosure, if we fail to comply with any of these requirements, legal proceedings may be initiated against us and we may be harmed.

~~Security breaches and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to suffer.~~

In the ordinary course of our business, we may collect and store sensitive data, including intellectual property, our proprietary business information and that of our customers and vendors, including personally identifiable information of our customers and employees, in our data centers and on our networks. Despite our security measures, our information technology and infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance or other disruptions. Any such breach could compromise our networks and the information stored there could be accessed, publicly disclosed, lost or stolen. Any such access, disclosure or other loss of information could result in legal claims or proceedings, liability under laws that protect the privacy of personal information, disrupt our operations, and damage our reputation, which could adversely affect our business.

The medical device industry, in general, is intensely competitive and characterized by rapid innovation and technological advances. Product differentiation and performance, client service, reliability, cost and ease of use are important competitive considerations in the medical device industry. We expect the current high levels of competition and technological change in the medical device industry in general. Most of our competitors have longer operating histories and significantly greater financial, technical, research, marketing, sales, distribution and other resources. In addition, our competitors may have greater name recognition than us and frequently offer discounts as a competitive tactic. There can be no assurance that our current competitors or potential future competitors will not succeed in developing or marketing technologies and products that are more effective or commercially attractive than those that have been and are being developed by us or that would render our technologies and products obsolete or noncompetitive, or that such companies will not succeed in obtaining regulatory approval for, introducing or commercializing any such products prior to us. Any of the above competitive developments could have a material adverse effect on our business, financial condition and results of operations.

We face aggressive cost-containment pressures from governmental agencies and third party payors. There can be no assurances that we will be able to maintain current prices in the face of continuing pricing pressures. Over time, the average price for our products may decline as the markets for these products become more competitive. Any material reduction in product prices could negatively affect our gross margin, necessitating a corresponding increase in unit sales to maintain net sales.

The market price of our common stock has fluctuated significantly to date. During the fiscal year ended March 31, 2019, our stock price ranged from $0.03 to $0.11. The future market price of our common stock may also fluctuate significantly due to:

~~technological innovations by our competitors or development setbacks by us;~~

~~changes in analysts’ estimates of our performance or changes in analysts’ forecasts regarding our industry, competitors or customers;~~

In addition, the stock market in recent years has experienced extreme price and volume fluctuations that have affected the market prices of many medical and biotechnology companies. These fluctuations have often been unrelated or disproportionate to the operating performance of companies in our industry, and could harm the market price of our common stock.

~~Additional authorized shares of our common stock and preferred stock available for issuance may adversely affect the market.~~

We are authorized to issue 50,000,000 shares of our common stock. As of March 31, 2019, there were 21,567,313 shares of common stock issued and 21,490,621 shares of common stock outstanding. As of March 31, 2019, there were 76,692 shares of treasury stock which were acquired prior to the fiscal year ended March 31, 2010. The total number of shares of our common stock issued and outstanding does not include shares reserved in anticipation of the exercise of options and warrants. As of March 31, 2019, we had outstanding stock options and warrants to purchase 9,169,250 shares of our common stock, the exercise price of which range between $0.03 per share to $0.31 per share, and we have reserved shares of our common stock for issuance in connection with the potential exercise thereof. To the extent such options, warrants or additional investment rights are exercised; the holders of our common stock will experience further dilution. Stockholders will also experience dilution upon the exercise of options granted under our stock option plans. In addition, in the event that any future financing or consideration for a future acquisition should be in the form of, be convertible into or exchangeable for, equity securities investors will experience additional dilution. No stock options or warrants were exercised during the fiscal year ended March 31, 2019.

The exercise of the outstanding stock options and warrants will reduce the percentage of common stock held by our current stockholders. Further, the terms on which we could obtain additional capital during the life of the stock options and warrants may be adversely affected, and it should be expected that the holders of the stock options and warrants would exercise them at a time when we would be able to obtain equity capital on terms more favorable than those provided for by such stock options and warrants. As a result, any issuance of additional shares of common stock may cause our current stockholders to suffer significant dilution which may adversely affect the market. In addition to the above referenced shares of common stock which may be issued without stockholder approval, we have 5,000,000 shares of authorized preferred stock, the terms of which may be fixed by our Board, of which 500,000 preferred shares were previously issued, but none are currently outstanding. While we have no present plans to issue any additional shares of preferred stock, our Board has the authority, without stockholder approval, to create and issue one or more series of such preferred stock and to determine the voting, dividend and other rights of holders of such preferred stock. The issuance of any of such series of preferred stock may have an adverse effect on the holders of common stock.

From time to time, certain of our stockholders may be eligible to sell all or some of their shares of common stock by means of ordinary brokerage transactions in the open market pursuant to Rule 144, promulgated under the Securities Act, subject to certain limitations. In general, pursuant to Rule 144, a stockholder (or stockholders whose shares are aggregated) who has satisfied a one year holding period may, under certain circumstances, sell within any three month period a number of securities which does not exceed the greater of 1% of the then outstanding shares of common stock or the average weekly trading volume of the class during the four calendar weeks prior to such sale. Rule 144 also permits, under certain circumstances, the sale of securities, without any limitation, by our stockholders that are non-affiliates that have satisfied a two year holding period. Any substantial sale of our common stock pursuant to Rule 144 or pursuant to any resale prospectus may have material adverse effect on the market price of our securities.

As permitted by Delaware law, our Restated Articles of Organization limit the liability of our directors for monetary damages for breach of a director’s fiduciary duty except for liability in certain instances. As a result of our charter provision and Delaware law, stockholders may have limited rights to recover against directors for breach of fiduciary duty. In addition, our bylaws provide that we shall indemnify our directors, officers, employees and agents if such persons acted in good faith and reasoned that their conduct was in our best interest.

~~The anti-takeover provisions of our Restated Articles of Organization, the Delaware General Corporation Law and our Stockholder Rights Plan may delay, defer or prevent a change of control.~~

Our Board of Directors has the authority to issue up to 4,500,000 shares of preferred stock and to determine the price, rights, preferences and privileges and restrictions, including voting rights, of those shares without any further vote or action by our stockholders. The rights of the holders of common stock will be subject to, and may be harmed by, the rights of the holders of any shares of preferred stock that may be issued in the future. The issuance of preferred stock may delay, defer or prevent a change in control because the terms of any issued preferred stock could potentially prohibit our consummation of any acquisition, reorganization, sale of substantially all of our assets, liquidation or other extraordinary corporate transaction, without the approval of the holders of the outstanding shares of preferred stock. In addition, the issuance of preferred stock could have a dilutive effect on our stockholders.

Our stockholders must give substantial advance notice prior to the relevant meeting to nominate a candidate for director or present a proposal to our stockholders at a meeting. These notice requirements could inhibit a takeover by delaying stockholder action. In addition, our bylaws and Delaware law provide for staggered board members with each member elected for three years. In addition, directors may be removed by stockholders only for cause and by a vote of 80% of the stock.

In addition, we have adopted a stockholder rights plan that may discourage any potential acquirer from acquiring more than 15% of our outstanding common stock since, upon this type of acquisition without approval of our Board of Directors, all other common stockholders will have the right to purchase a specified amount of common stock at a substantial discount from market price.

There can be no assurance that we will be able to successfully take corrective actions if required, nor can there be any assurance that any such corrective actions will not force us to incur significant costs. In addition, there can be no assurance any future recalls will not cause us to face increasing scrutiny from our customers, which could cause us to lose market share or incur substantial costs in order to maintain existing market share. We do not currently carry recall insurance and we may be subject to significant recall costs in the event of a recall.

Political, economic and regulatory influences are subjecting the healthcare industry in the United States to fundamental change. Potential reforms proposed over the last several years have included mandated basic healthcare benefits, controls on healthcare spending through limitations on the growth of private health insurance premiums and Medicare and Medicaid spending, the creation of large insurance purchasing groups and fundamental changes in the healthcare delivery system. In addition, some states in which we operate are also considering various healthcare reform proposals. We anticipate that federal and state governments will continue to review and assess alternative healthcare delivery systems and payment methodologies and public debate of these issues will likely continue in the future. Due to uncertainties regarding the ultimate features of reform initiatives and their enactment and implementation, we cannot predict which, if any, of such reform proposals will be adopted, when they may be adopted or what impact they may have on us, and there can be no assurance that the adoption of reform proposals will not have a material adverse effect on our business, operating results or financial condition. In addition, the actual announcement of reform

proposals and the investment community’s reaction to such proposals, as well as announcements by competitors and third-party payors of their strategies to respond to such initiatives, could produce volatility in the trading and market price of our common stock.

~~Our corporate headquarters, polymer development and manufacturing operations, are located in an approximate 26,000 square foot building, which we lease at 229 Andover Street, Wilmington, MA.~~

We are not a party to any legal proceedings other than ordinary routine litigation incidental to our business which we believe will not have a material affect on our financial position or results of operations.

Our common stock is quoted on the OTCQB tier of The OTC Markets under the ticker symbol “ASNB.” The following table sets forth the high and low sales prices of the common stock for each of the last two fiscal years, as reported on the OTCQB tier of The OTC Markets:

As of August 12, 2019, there were approximately 318 stockholders of record. The last sale price as quoted by the OTCQB tier of The OTC Markets on August 12, 2019, was $0.078 per share. We have never paid a cash dividend on our common stock and do not anticipate the payment of cash dividends in the foreseeable future.

(1)This total includes shares to be issued upon exercise of outstanding options under the AdvanSource 2003 Stock Option Plan (the “2003 Plan”) that has been approved by our stockholders. There were no stock options exercised under the 2003 Plan for the fiscal years ended March 31, 2019 and 2018. As of March 31, 2019 and 2018, there were no shares remaining to be granted under the 2003 Plan.

(2)This total includes shares to be issued upon exercise of outstanding options under the 2017 Non-Qualified Equity Incentive Plan (the “2017 Plan”) that was approved and adopted by our board of directors on August 14, 2017 and authorizes the grant of a total of 7,000,000 shares of our common stock. There were no stock options exercised under the 2017 Plan for the fiscal year ended March 31, ~~2019. As of March 31, 2019, there were 450,000 shares remaining~~2021, originally filed on September 22, 2021 (the “Original Filing”). We are filing this Amendment No. 1 to ~~be granted under~~include the ~~2017 Plan.~~

~~In June 2001,~~information required by Part III and not included in the Board of Directors adopted a share repurchase program authorizing the repurchase of up to 250,000 of our shares of common stock. In June 2004, the Board of Directors authorized the purchase of an additional 500,000 shares of common stock. Since June 2001, a total of 251,379 shares have been repurchased by us under the share repurchase program, leaving 498,621 shares remaining to purchase under the share repurchase program. No repurchases were made during the fiscal years ended March 31, 2019 and 2018. The share repurchase program authorizes repurchases from time to time in open market transactions, through privately negotiated transactions, block transactions or otherwise, at times and prices deemed appropriate by management, is not subject to an expiration date.

~~Our Board of Directors approved the adoption of a stockholder rights plan (the “Rights Plan”) under which all stockholders of record~~Original Filing as of February 8, 2008 will receive rights to purchase shares of a new series of preferred stock (the “Rights”). The Rights will be distributed as a dividend. Initially, the Rights will attach to, and trade with, our common stock. Subject to the terms, conditions and limitations of the Rights Plan, the Rights will become exercisable if (among other things) a person or group acquires 15% or more of our common stock. Upon such an event, and payment of the purchase price, each Right (except those held by the acquiring person or group) will entitle the holder to acquire shares of the Company’s common stock (or the economic equivalent thereof) having a value equal to twice the purchase price. Our Board of Directors may redeem the Rights prior to the time they are triggered. In the event of an unsolicited attempt to acquire us, the Rights Plan is intended to facilitate the full realization of our stockholder value and the fair and equal treatment of all of our stockholders. The Rights Plan will not prevent a takeover attempt. Rather, it is intended to guard against abusive takeover tactics and encourage anyone seeking to acquire us to negotiate with the Board of Directors. Wewe did not ~~adopt the Rights Plan in response to any particular proposal.~~

We have never declared or paid any cash dividends on our common stock and do not expect to pay any dividends for the foreseeable future. We currently intend to retain any future earnings to fund the operation, development and expansionfile a definitive proxy statement within 120 days of our ~~business. Any future determination to pay dividends will be at the sole discretion of our Board of~~

Directors and will depend upon a number of factors, including our results of operations, capital requirements, financial condition, future prospects, contractual arrangements, restrictions imposed by applicable law, any limitations on payments of dividends present in our current and future debt arrangements, and other factors our Board of Directors may deem relevant.

This Report on Form 10-K contains certain statements that are “forward-looking” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Litigation Reform Act”). These forward looking statements and other information are based on our beliefs as well as assumptions made by us using information currently available.

The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “will,” “should” and similar expressions, as they relate to us, are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended or using other similar expressions.

In accordance with the provisions of the Litigation Reform Act, we are making investors aware that such forward-looking statements, because they relate to future events, are by their very nature subject to many important factors that could cause actual results to differ materially from those contemplated by the forward-looking statements contained in this Report on Form 10-K. For example, we may encounter competitive, technological, financial and business challenges making it more difficult than expected to continue to develop and market our products; the market may not accept our existing and future products; we may not be able to retain our customers; we may be unable to retain existing key management personnel; and there may be other material adverse changes in our operations or business. Certain important factors affecting the forward-looking statements made herein also include, but are not limited to (i) continued downward pricing pressures in our targeted markets, (ii) the continued acquisition of our customers by certain of our competitors, and (iii) continued periods of net losses, which could require us to find additional sources of financing to fund operations, implement our financial and business strategies, meet anticipated capital expenditures and fund research and development costs. In addition, assumptions relating to budgeting, marketing, product development and other management decisions are subjective in many respects and thus susceptible to interpretations and periodic revisions based on actual experience and business developments, the impact of which may cause us to alter our marketing, capital expenditure or other budgets, which may in turn affect our financial position and results of operations. For all of these reasons, the reader is cautioned not to place undue reliance on forward-looking statements contained herein, which speak only as of the date hereof. In addition, you should read and carefully consider the Risk Factors discussed in Part I, Item 1A of this Form 10-K. We assume no responsibility to update any forward-looking statements as a result of new information, future events, or otherwise except as required by law.

We develop advanced polymer biomaterials which provide critical characteristics in the design and development of medical devices. Our biomaterials are used in devices that are designed for treating a broad range of anatomical sites and disease states. Our business model leverages our proprietary materials science technology and manufacturing expertise in order to expand our product sales and royalty and license fee income.

Our fiscal year ends on March 31. Reference in this annual report on Form 10-K to a fiscal year is reference to the fiscal year ended March 31. For example, references to “fiscal 2019” or our “2019 fiscal year” refer to the fiscal year ended March 31, ~~2019.~~

Our significant accounting policies are summarized in Note 2 to our financial statements. However, certain of our accounting policies require the application of significant judgment by our management, and such judgments are reflected in the amounts reported in our financial statements. In applying these policies, our management uses its judgment to determine the appropriate assumptions to be used in the determination of estimates. Those estimates are based on our historical experience, terms of existing contracts, our observance of market trends, information provided by our strategic partners and information available from other outside sources, as appropriate. Actual results may differ significantly from the estimates contained in our financial statements. Our critical accounting policies are as follows:

~~Revenue Recognition.~~ We adopted the Accounting Standard Codification (“ASC”) 606, “Revenue from Contracts with Customers” as of April 1, 2018, using the modified retrospective method, and concluded that, consistent with prior reporting, we have two separate revenue streams: (i) product sales, and (ii) royalty and licensing revenues. Results for reporting periods after April 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with legacy accounting guidance under ASC 605, “Revenue Recognition.” The adoption of ASC 606 had no impact upon adoption, to our net income for the year ended March 31, 2019.

ASC 606 defines a five-step process to recognize revenues at the time and in an amount that reflects the consideration expected to be received for the performance obligations that have been provided. ASC 606 defines contracts as written, oral and through customary business practice. Under this definition, the Company considers contracts to be created at the time that an order to purchase product is agreed upon regardless of whether or not there is a written contract or when a contract is entered into for licensing and royalties.

We have two separate and distinct performance obligations offered to our customers: a product sales performance obligation and a licensing and royalty performance obligation. These performance obligations are related to separate revenue streams and at no point are they combined into a single transaction.

We generate the majority of our revenue from product sales, and to a lesser extent from fees generated from licensing and royalty arrangements primarily with two customers. Our revenue related to product sales is recognized upon shipment, provided that a purchase order has been received or a contract has been executed, there are no uncertainties regarding customer acceptance, the sales price is fixed or determinable and collection is deemed reasonably assured. If uncertainties regarding customer acceptance exist, we recognize revenues when those uncertainties are resolved and title has been transferred to the customer. Amounts collected or billed prior to satisfying the above revenue recognition criteria are recorded as deferred revenue. Our revenue related to licensing and royalty arrangements is recognized in accordance with the terms of the arrangements which typically provide for quarterly payment of exclusivity fees and royalties earned on the sale of customer products on a quarterly basis.

~~Accounts Receivable Valuation.~~ We perform various analyses to evaluate accounts receivable balances and record an allowance for bad debts based on the estimated collectability of the accounts such that the amounts reflect estimated net realizable value. Account balances are charged off against the allowance after significant collection efforts have been made and potential for recovery is not considered probable.

~~Inventory Valuation.~~ We value our inventory at the lower of our actual cost or the current estimated market value. We regularly review inventory quantities on hand and inventory commitments with suppliers and record a provision for excess and obsolete inventory based primarily on our historical usage for the prior twelve-month period. Although we make every effort to ensure the accuracy of our forecasts of future product demand, any significant unanticipated change in demand or technological developments could have a significant impact on the value of our inventory and our reported operating results.

~~Long-Lived Assets.~~ We evaluate our long-lived assets, which includes property and equipment, for impairment as events and circumstances indicate that the carrying amount may not be recoverable. We evaluated the realizability of our long-lived assets based primarily on reviews of results of sales of similar assets and independent appraisals. As a result of the indicators of impairment described above, we evaluated the recoverability of our property and equipment as of March 31, 2019 and 2018 and determined that there existed no impairment of our long-lived assets.

~~Stock-Based Compensation.~~ We make certain assumptions in order to value our stock-based compensation. The valuation of employee stock options is an inherently subjective process, since market values are generally not available for long-term, non-transferable employee stock options. Accordingly, an option pricing model is utilized to derive an estimated fair value. In calculating the estimated fair value of our stock options we use the

~~Black-Scholes pricing model, which requires the consideration of the following six variables for purposes of estimating fair value:~~

~~the grant date price of our common stock, which is issuable upon exercise of the option;~~

~~the expected dividends on our common stock (we do not anticipate paying dividends in the foreseeable future); and~~

2021. We are also required to estimate the level of pre-vesting award forfeitures expected to occur and record compensation expense only for those awards that are ultimately expected to vest. This requirement applies to all awards that are not yet vested. Due to the limited number of unvested options outstanding, the majority of which are held by executives and members of our Board of Directors, we have estimated a zero forfeiture rate. We will revisit this assumption periodically and as changes in the composition of our option pool dictate.

Changes in the inputs and assumptions, as described above, can materially affect the estimated fair value of our share-based awards. We anticipate the amount of stock-based compensation to increase in the future as additional options are granted. As of March 31, 2019, there was $0 of unrecognized compensation cost related to stock option awards.

Total revenues for the fiscal year ended March 31, 2019 were approximately $3,346,000 as compared with approximately $2,918,000 for the comparable prior year period, an increase of approximately $428,000, or 14.7%.

Product sales of our biomaterials for the fiscal year ended March 31, 2019 were approximately $2,408,000 as compared with approximately $1,859,000 for the comparable prior year period, an increase of approximately $549,000, or 29.5%. The increase is due to increased product sales to new and existing customers, with continuing purchases from our three largest customers. Although we anticipate continuing purchases from our significant customers, in addition to continuing product sales to other existing and new customers, there can be no assurances that product sales will improve over those realized during the fiscal year ended March 31, 2019.

License, royalty and development fees for the fiscal year ended March 31, 2019 were approximately $938,000 as compared with approximately $1,059,000 for the comparable prior year period, a decrease of approximately $121,000 or 11.4%. We have agreements to license our proprietary biomaterial technology to medical device manufacturers and develop biomaterials for incorporation into medical devices under development by our customers. Royalties are earned when these manufacturers sell medical devices which use our biomaterials. We have two customers that represent approximately 93% of our license and royalty fees in the aggregate. The decrease in our license and royalty fees is primarily a result of a one-time payment received from one of our significant customers of approximately $188,000 for revenues earned during the fiscal year ended March 31, 2018. The decrease during the fiscal year ended March 31, 2019 was offset by normal contractual increases from our other major licensing customer.

For the fiscal year ended March 31, 2019, two customers represented approximately 24% and 11% of revenues, respectively. For the fiscal year ended March 31, 2018, four customers represented approximately 34%, 11%, 11% and 10%, respectively, of our revenues.

Gross profit on total revenues for the fiscal year ended March 31, 2019 was approximately $2,469,000, or 73.8% of total revenues, compared with approximately $2,119,000, or 72.6% of total revenues, for the comparable prior year period. The increase in gross profit dollars and gross profit as a percentage of total revenues is primarily due to the increase in product sales.

Gross profit on product sales for the fiscal year ended March 31, 2019 was approximately $1,531,000, or 63.6% of product sales, compared with approximately $1,060,000, or 57.0% of product sales, for the comparable prior year period. The increase in gross profit dollars and gross profit as a percentage of total revenues is due to the increase in

Research and development expenses for the fiscal year ended March 31, 2019 were approximately $345,000 as compared with approximately $375,000 for the comparable prior year period, a decrease of approximately $30,000 or 8.0%. Our research and development efforts are focused on developing new applications for our biomaterials. Research and development expenditures consisted primarily of the salaries of full time employees and related expenses, outside services and operating supplies in support of new product development activities. Management believes its current research and development resources meet the needs of our customers and internal development needs.

Selling, general and administrative expenses for the fiscal year ended March 31, 2019 were approximately $1,373,000 as compared with approximately $1,563,000 for the comparable prior year period, a decrease of approximately $190,000 or 12.2%. The decrease is primarily due to stock-based compensation costs incurred during the fiscal year ended March 31, 2018 in connection with the granting of non-qualified stock options to two employees, a consultant and the members of the board of directors.

Interest expense for the fiscal year ended March 31, 2019 was approximately $417,000 as compared to approximately $383,000 for the comparable prior year period. During the fiscal years ended March 31, 2019 and 2018, interest expense is composed primarily of interest accrued in connection with the financing obligation.

~~As of March 31, 2019, we had cash of approximately $172,000, an increase of approximately $52,000 when compared with a balance of approximately $120,000 as of March 31, 2018.~~

During the fiscal year ended March 31, 2019, we had net cash of $81,000 provided by operating activities as compared with net cash of $108,000 provided by operating activities for the comparable prior year period. Our uses of cash for operating activities have primarily consisted of salaries and wages for our employees; facility and facility-related costs, material and overhead costs used in production, laboratory supplies and materials, and professional fees. The sources of our cash flows from operating activities have consisted primarily of payments received from customers on the sale of polymer products and fees earned on license, royalty and development agreements. Net cash flows provided by operating activities decreased by approximately $27,000, as compared to the comparable prior year period, primarily due to i) increase in accounts receivable from product sales; (ii) decrease in accounts payable; and (iii) decrease in customer advances. The cash used in operating activities was offset by (i) the net income realized during the current period; and (ii) an increase in collection of fees from royalties and licenses.

During the fiscal year ended March 31, 2019, we had net cash of $24,000 used in investing activities for the purchase of production equipment as compared to net cash of $10,000 used during the fiscal year ended March 31, 2018 for the purchase of laboratory equipment.

During the year ended March 31, 2019 and 2018, we had net cash of $5,000 and $5,000 used in financing activities due to the repayments of a portion of our related party promissory note entered into with our executive vice president.

~~There were no options or warrants exercised during the fiscal years ended March 31, 2019 and 2018.~~

On December 22, 2011, we entered into an agreement with an independent third-party under which we sold and leased back our land and building generating gross proceeds of $2,000,000. The initial minimum lease term is 15 years. At the end of the initial minimum lease term, we have the option to renew the lease for three periods of five years each. Under the terms of the lease, we have provided, as collateral, a security interest in all furnishings, fixtures and equipment owned and used by us, having a net book value of approximately $0 as of March 31, 2019. For accounting purposes, the provision of such collateral constitutes continuing involvement with the associated property. Due to this continuing involvement, this sale-leaseback transaction is accounted for under the financing method, rather than as a completed sale. Under the financing method, we include the sales proceeds received as a financing obligation. The building, building improvements and land remain on the balance sheet and the building and building improvements will continue to be depreciated over their remaining useful lives. Payments made under the lease are applied as payments of imputed interest and deemed principal on the underlying financing obligation.

The ability to attract additional capital investments in the future will depend on many factors, including the availability of credit, rate of revenue growth, the expansion of selling and marketing and research and development activities, and the timing of new product introductions and enhancements to existing products. We believe that as of

March 31, 2019 our cash position and anticipated cash flows from our fiscal 2020 operations should be sufficient to fund our working capital and research and development activities for at least the next twelve months.

The accompanying consolidated financial statements have been prepared on a going concern basis which implies we will continue to meet our obligations for the next twelve months as of the date these financial statements are issued.

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. For the year ended March 31, 2019, we reported net income of approximately $334,000, positive cash flows from operations of approximately $81,000 and working capital of approximately $118,000.

Management believes that substantial doubt of our ability to meet our obligations for the next twelve months from the date these financial statements were first made available has been alleviated due to, but not limited to, i) certain arrangements entered into during the physical year ended March 31, 2019 with three of our significant customers which provide inventory purchase financing and long-term commitments for continued product purchase; ii) continued growth of product sales from our current customer base and new customers; and iii) stable to increasing license fees and royalties pursuant to long-term contracts and arrangements.

However, management cannot provide any assurances that we will be successful in accomplishing any of our plans. Management also cannot provide any assurance as to unforeseen circumstances that could occur at any time within the next twelve months or thereafter which could increase our need to raise additional capital on an immediate basis.

~~However, based upon our evaluation, management believes that we are a going concern.~~

Any potential future sale of equity or debt securities may result in dilution to our stockholders, and we cannot be certain that additional public or private financing will be available in amounts or on terms acceptable to us, or at all. If we are required to raise additional financing, but are unable to obtain such financing, we may be required to delay, reduce the scope of, or eliminate one or more aspects of our operations or business development activities.

As of March 31, 2019, we did not have any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our financial condition, results of operations, liquidity, capital expenditures or capital resources.

Item 9.~~Changes In and Disagreements with Accountants on Accounting and Financial Disclosure~~

~~The certificates of our principal executive officer and principal financial and accounting officer attached as Exhibits 31.1 and 31.2 to this Annual Report on Form 10-K include, in paragraph 4 of such~~filing currently dated certifications ~~information concerning our disclosure controls and procedures, and internal control over financial reporting. Such certifications~~

~~should be read in conjunction with the information contained in this Item 9A for a more complete understanding of the matters covered by such certifications.~~

Our management, with the participation of our chief executive officer, evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2019. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), means controls and other procedures of a company that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its chief executive officer and chief financial officer, as appropriate, to allow timely decisions to be made regarding required disclosure. It should be noted that any system of controls and procedures, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the system are met and that management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on this evaluation, our chief executive officer concluded that our disclosure controls and procedures as of March 31, 2019 were not effective at the reasonable assurance level due to limited resources in the finance and accounting functions. We intend to take appropriate and reasonable steps to make improvements to remediate these deficiencies.

Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934). A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles. Internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the interim or annual financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

~~Our management, with the participation~~ of our Chief Executive Officer ~~conducted an evaluation~~(Exhibits 31.1, 31.2, and 32.1), as required under Sections 302 and 906 of the ~~effectiveness~~Sarbanes-Oxley Act of ~~our internal control over financial reporting~~2002.

No changes have been made to the Original Filing other than the furnishing of the exhibits as set forth in Item 15 herein. This Amendment No. 1 continues to speak as of ~~March 31, 2019 based on~~ the ~~framework in~~~~Internal Control Integrated Framework~~~~issued by the Committee of Sponsoring Organizations~~Original Filing date of the ~~Treadway Commission. Based on this assessment, our management concluded that, as of March 31, 2019, our internal control over financial reporting was effective.~~

~~This annual report on~~ Form 10-K, does not ~~include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management's report was~~reflect events that may have occurred subsequent to the Original Filing date, and does not ~~subject to attestation by our registered public accounting firm pursuant to Securities and Exchange Commission rules that permit us to provide only management's report~~modify or update in ~~this annual report.~~

~~Changes~~any way disclosures made in ~~Internal Control Over Financial Reporting~~

~~There were no changes to our internal control over financial reporting during~~ the ~~fourth quarter ended March 31, 2019 that has materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.~~Form 10-K.

~~AdvanSource Biomaterials~~EKIMAS Corporation ~~(“AdvanSource”)~~ is currently comprised of ~~four directors.~~one director. Our ~~directors~~director and named executive officer, ~~their ages~~his age and ~~positions,~~position, as well as certain biographical information of ~~these individuals, are~~this individual, is set forth below. The ~~ages~~age of the ~~individuals are~~individual is provided as of ~~July 31, 2019.~~September 22, 2021.

There are no family relationships between ~~any~~our director ~~executive officer, or person nominated or chosen to become a director or~~and executive officer.

Mr. Adams has been our director since May 1999. Mr. Adams was appointed as our President and Chief Executive Officer on August 7, 2006. From April 1, 2006 until August 7, 2006, Mr. Adams was our Vice President of Regulatory Affairs and Business Development. Prior to April 2006, Mr. Adams was the Vice President of PLC Systems, Inc. Prior to joining PLC Systems in September 2000, Mr. Adams was Vice President of Assurance Medical, Inc. Prior to joining Assurance Medical in June 1999, Mr. Adams was the Chief Operating Officer and Vice President of Regulatory Affairs and Quality Assurance of CardioTech from June 1998 to May 1999. From November 1994 through June 1998, Mr. Adams served as the Vice President of Cytyc Corporation. Mr. Adams received a BS from the University of Massachusetts.

Our Board has concluded that Mr. Adams is an appropriate person to represent management on our Board of Directors given his position as our Chief Executive Officer, his tenure with us, which dates back to June 1998, his professional credentials, and his standing in the medical community, including expertise in regulatory and operational matters as they relate to the development, production, marketing and sales of medical devices.

On October 9, 2020, Mr. Mark Tauscher notified the Board of Directors that he would be retiring and resigning his position as our Executive Vice President of Commercial Operations in June 2016. Ms. Carroll has also held the positions of Senior Vice President of Commercial Operations from March 2010 through May 2016; Vice President of Sales and Marketing from January 2009 through February 2010; and Director of Sales and Marketing and Global Sales from February 2008 through December 2008 for us. From 2000 through 2008, Ms. Carroll held various business development, sales and marketing management positions with Memry Corporation. Ms. Carroll received her BS in Organizational Leadership from Quinnipiac University.

Mr. O’Neill has been our director since May 2004 and was appointed as Chairman on August 7, 2006. Mr. O’Neill is currently the Dean of the Sawyer Business School at Suffolk University in Boston, Massachusetts. From 1969 through 1999, Mr. O’Neill held the positions of Executive Vice President of the Corporation, President of Corporate Business Development, and Chief Financial Officer for Polaroid Corporation. He was also Senior Financial Analyst at Ford Motor Company. Mr. O’Neill was a Trustee at the Dana Farber Cancer Institute, and is a former member of the Massachusetts Bar Association, a member of the Board of Directors ~~of the Greater Boston Chamber of Commerce, and serves on~~effective October 9, 2020. On October 11, 2020, Mr. Michael L. Barretti notified the Board of Directors that he would be retiring and resigning his position as a member of ~~Concord Camera. He earned a BA at Boston College in mathematics, a MBA in finance from Wayne State University, and a JD from Suffolk University Law School.~~

~~Our~~the Board of Directors has concluded that Mr. O’Neill is uniquely qualified to serve as a director and Chairman of our Board based on his past and current leadership and executive roles, financial skills and overall business judgment.

~~Mr. Barretti has been our director since January 1998.~~effective October 11, 2020. On June 30, 2013, Mr. Barretti retired as the Director of Executive Education and professor of marketing at Suffolk University in Boston. Mr. Barretti has been the President of Cool Laser Optics, Inc., a company which commercializes optical technology specific to the medical laser industry, since July 1996. From September 1994 to July 1996, Mr. Barretti was Vice President of Marketing for Cynosure, Inc.,

a manufacturer of medical and scientific lasers. From June 1987 to September 1994, Mr. Barretti was a principal and served as Chief Executive Officer of NorthFleet Management Group, a marketing management firm serving the international medical device industry. From January 1991 to May 1994, Mr. Barretti also acted as President of Derma-Lase, Inc., the U.S. subsidiary of a Glasgow, Scotland supplier of solid-state laser technologies to the medical field. Mr. Barretti received his BA from St. Johns University and an MBA from Suffolk University. Mr. Barretti is retired as a United States Marine Corps officer.

Our Board of Directors has concluded that Mr. Barretti is uniquely qualified to serve as a director based on his experience and leadership roles with medical device companies; his tenure with us, which dates back to January 1998; and marketing expertise at both the corporate and academic levels.

~~Mr. Tauscher has been our director since~~ October 2010. From December 1999 to April 2015, Mr. Tauscher was the President, Chief Executive Officer and director of PLC Systems Inc., and was appointed as its former Chairman of the Board on June 2013. Mr. Tauscher has also served as President, Chief Executive Officer and a director of PLC Medical Systems, Inc. since January 2001. Prior to joining PLC Systems Inc. and PLC Medical Systems, Inc., from November 1988 to December 1999, Mr. Tauscher served as Executive Vice President of Sales and Marketing at Quinton Instrument Company, a developer, manufacturer and marketer of cardiology products, medical devices and fitness equipment. From November 1996 to November 1998, Mr. Tauscher served as Division President of Marquette Medical Systems, Medical Supplies. From May 1994 to November 1996, Mr. Tauscher served as General Manager of Hewlett-Packard, Medical Supplies. Mr. Tauscher earned a BS from Southern Illinois University.

Our Board of Directors has concluded that Mr. Tauscher is uniquely qualified to serve as a director based on his 30 years of medical industry experience, inside perspective of the day-to-day operations of a medical device company, and his past and current leadership and executive roles.

~~The Board appointed~~13, 2020, Mr. William J. O’Neill, Jr.~~, an independent director,~~ notified the Board of Directors that he would be retiring and resigning his position as the chairman and member of the Board of Directors effective October 13, 2020. These resignations were not a result of any disagreements with the Company on any matters relating to the Company’s operations, policies or practices.

On October 14, 2020, the Board appointed Mr. Michael F. Adams, our chief executive officer, to serve as the Chairman of the Board of Directors. The Board has elected to separate the Chairman function from that of the Chief Executive Officer, who serves as our principal executive officer, due to a belief that separating these functions, and empowering an independent director to chair the Board meetings, will result in increased Board oversight of management activities.sole director.

Pursuant to procedures set forth in our bylaws, our nominating committee will consider stockholder nominations for directors if we receive timely written notice, in proper form, of the intent to make a nomination at a meeting of stockholders. To be timely, the notice must be received within the time frame identified in our bylaws. To be in proper form, the notice must, among other matters, include each nominee’s written consent to serve as a director if elected, a description of all arrangements or understandings between the nominating stockholder and each nominee and information about the nominating stockholder and each nominee. These requirements are detailed in our bylaws, which were filed as Appendix D to our definitive proxy statement on Schedule 14A as filed with the SEC on August 30, 2007. A copy of our bylaws will be provided upon written request to the Chief Executive Officer at ~~AdvanSource Biomaterials~~EKIMAS Corporation, ~~229 Andover~~95 Washington Street, ~~Wilmington,~~Canton, MA ~~01887.~~02021.

We have adopted a ~~code~~Code of ~~ethics~~Ethics that ~~applies~~allows for us to ensure that our disclosure controls and procedures remain effective. Our Code also defines the standard of conduct expected by our chief executive officer and ~~chief financial officer. The code of ethics is posted on our website at www.advbiomaterials.com. We intend to include on our website any amendments to, or waivers from, a provision~~director. A copy of our ~~code~~Code of ~~ethics that applies to our chief executive officer or chief financial officer that relates~~Ethics will be furnished without charge to any ~~element of the code of ethics definition enumerated in Item 406 of Regulation S-K.~~person upon written request. Requests should be sent to: Chief Executive Officer, EKIMAS Corporation, 95 Washington Street, Canton, MA 02021.

Section 16(a) of the Securities Exchange Act of 1934 requires our executive officers, directors and persons who beneficially own more than 10% of a registered class of our securities to file reports of ownership and changes in ownership with the SEC. Based solely on a review of copies of such forms submitted to us, we believe that all persons subject to the requirements of Section 16(a) filed such reports on a timely basis in fiscal ~~2019.~~2021.

Our Board of Directors has long believed that good corporate governance is important to ensure that ~~AdvanSource is managed~~we manage our company for the long-term benefit of stockholders. During the past year, our Board of Directors has continued to review our governance practices in light of the Sarbanes-Oxley Act of 2002 and recently revised SEC rules and regulations. ~~This section describes key~~We intend to implement internal corporate governance guidelines and practices ~~that we have adopted. Complete~~

~~copies of the corporate governance~~and will make such guidelines ~~committee charters~~ and ~~code of ethics described below are~~practices available on ~~our~~its website at www.advbiomaterials.com, and any amendments to any of the foregoing corporate governance documents or any waivers of our code of ethics will be posted on our website. Alternatively, you can request a copy of any of these documents by writing to the Chief Executive Officer, AdvanSource Biomaterials Corporation, 229 Andover Street, Wilmington, MA 01887.www.rocketfuelblockchain.com, when implemented.

The Board has adopted corporate governance guidelines to assist the Board in the exercise of its duties and responsibilities and to serve in our best interests and those of our stockholders. These guidelines, which provide a framework for the conduct of the Board’s business, include that:

~~the principal responsibility of the directors is to oversee our management;~~

~~directors have full and free access to management and, as necessary and appropriate, independent advisors.~~

We currently have no separate audit, compensation, or nominating committees. The ~~Audit Committee was established in accordance with Section 3(a)(58)(A) of the Exchange Act. The~~entire Board ~~has designated, from among its members, Mr. William J. O’Neill, Jr. as the member of the Audit Committee. The primary functions of the Audit Committee are to represent~~oversees our (i) audits and ~~assist the Board of Directors with the oversight of:~~

~~appointing, approving the compensation of, and assessing the independence of our independent auditors;~~

~~overseeing the work of our independent auditors, including through the receipt and consideration of certain reports from the independent auditors;~~

~~reviewing and discussing with management and the independent auditors our annual and quarterly financial statements and related disclosures;~~

~~coordinating the Board of Director’s oversight of our internal control over financial reporting, disclosure controls and procedures and code of conduct and ethics;~~

~~establishing procedures for the receipt and retention of accounting related complaints and concerns;~~

~~meeting independently with our internal accounting staff, independent auditors and management; and~~

~~The Board of Directors has determined that Mr. O’Neill is an “audit committee financial expert” as defined in Item 407(d)(5)~~auditing procedures; (ii) ~~of Regulation S-K.~~

During the fiscal year ended March 31, 2019, the Audit Committee met four (4) times. The responsibilities of the Audit Committee are set forth in its written charter, which is posted on our website at www.advbiomaterials.com under the “Investor Relations – Corporate Governance” section.

~~The Compensation Committee consists of Mr. Michael L. Barretti. The Compensation Committee is responsible for implementing our~~ compensation philosophies and objectives, ~~establishing~~establishment of remuneration levels for our executive ~~officers~~officer, and ~~implementing~~implementation of our incentive programs, including our equity compensation plans. The Board of Directors has determined that Mr. Barretti is a “Non-Employee” director as defined in Rule 16b-3 of the Exchange Act, and an “Outside” director as defined in Section 162(m) of the Internal Revenue Code, as amended. The Compensation Committee met once during fiscal 2019.

Compensation is paid to our executive officers in both fixed and discretionary amounts which are established by the Board of Directors based on existing contractual agreements and the determinations of the Compensation Committee. Pursuant to its charter, the responsibilities of the Compensation Committee are (i) to assist the Board of Directors in discharging its responsibilities in respect of compensation of our senior executive officers; (ii) review and analyze the appropriateness and adequacy of our annual, periodic or long-term incentive compensation programs and other benefit plans and administer those compensation programs and benefit plans;programs; and (iii) ~~review and recommend compensation for directors, consultants and advisors. Except for the delegation~~identification of ~~authority to the Chief Executive~~

~~Officer to grant certain de minimus equity compensation awards to our non-executive employees, the Compensation Committee has not delegated any of its responsibilities to any other person.~~

~~The Nominating/Corporate Governance Committee consists of Mr. Mark R. Tauscher. The Nominating/Corporate Governance Committee’s responsibilities include identifying~~ individuals qualified to become Board ~~members; recommending~~members and recommendation to ~~the Board the~~our shareholders of persons to be nominated for election as directors and to each of the Board’s committees; and reviewing and making recommendations to the Board with respect to management succession planning. The Nominating/Corporate Governance Committee did not meet independently during the fiscal year ended March 31, 2019. The responsibilities of the Nominating/Corporate Governance Committee are set forth in its written charter, which is posted on our website at www.advbiomaterials.com under the “Investors – Corporate Governance” section.directors.

The following table provides information concerning compensation for services rendered to us in all capacities for the fiscal years ended March 31, ~~2019~~2021 and ~~2018~~2020 by our named executive officer and former named executive officer.

(1)The amount reported in this column for the named executive officers represents the grant date fair value of equity awards determined in accordance with the accounting standards for stock-based compensation.

(2)All other compensation includes, but is not limited to, premiums paid by us for medical, dental, disability and group term life insurance for the named executive officer and former named executive officer.

(3)~~Salary for Mr. Adams includes approximately $106,000 earned but unpaid salary for the fiscal year ended March 31, 2018.~~

(4)All other compensation of Mr. Adams is composed of approximately i) $13,000 and $13,000 for premiums paid by us for medical and dental insurance, and ii) $3,000 and $3,000 in premiums paid by us for disability and life insurance during the fiscal years ended March 31, 2019 and 2018, respectively.

(5)All other compensation of Ms. Carroll is composed of approximately i) $13,000 and $13,000 for premiums paid by us for medical and dental insurance, ii) $3,000 and $3,000 in premiums paid by us for disability and life insurance and iii) $3,000 and $3,000 for 401k matching contributions during the fiscal years ended March 31, 2019 and 2018, respectively.

Employment ~~Agreements;~~Agreements and Change in Control ~~and Severance Provisions~~Provision

We entered into an employment agreement with Michael F. Adams on September 13, 2006, effective August 7, 2006 (the “Adams Agreement”).

The Adams Agreement ~~provides~~provided for Mr. Adams to serve as our President & Chief Executive Officer. Pursuant to the terms of the Adams Agreement, as amended on July 10, 2007, Mr. Adams’ annual base salary was initially set at $290,000, effective April 1, 2007. The Adams Agreement ~~provides~~provided for Mr. Adams’ salary to be reviewed annually by

the ~~Board. Additionally, Mr. Adams may also be entitled~~Board of Directors and the opportunity to receive an annual bonus payment in an amount, if any, to be determined by the Compensation Committee of the Board. In May 2010, the Compensation Committee of the Board of Directors approved an increase in Mr. Adams’ annual base salary to $320,000, retroactive to April 1, 2010. ~~There was no~~In August 2019, the Compensation Committee of the Board of Directors approved an increase in Mr. Adams’ annual base salary to $325,000. In December 2019, the Board of Directors approved a bonus to be awarded to Mr. Adams ~~during~~in the ~~fiscal years ended March 31, 2019 and 2018.~~approximate amount of $151,000.

The ~~term of the~~ Adams Agreement expired on August 6, 2008. The Company did not renew the Adams Agreement at the end of the initial term; however, the Adams agreement provides that lacking any express agreement between the parties at the end of the Employment Period, the Adams Agreement shall be deemed to continue on a month-to-month basis. As a result, the Adams Agreement currently continues on a month-to-month basisprovided for, among several normal and ~~is subject to all of the~~customary terms and conditions of the Adams Agreement. We and Mr. Adams each have the right to terminate the Adams Agreement at any time, with or without cause, as defined below, upon 30 days prior written notice. In the event that we terminate the applicable Adams Agreement without cause, or Mr. Adams terminates hisfor employment ~~for good reason following~~agreements, a change in control as defined below, or we fail to renew the Adams Agreement within two years following the occurrence of a change in control, Mr. Adams will be entitled to receive severance equal to 2.0 times his annual base salary at termination. In such event, Mr. Adams will be bound by a non-compete covenant for one year following termination of his employment.

~~Good Reason.~~ “Good Reason” shall mean, during the nine month period following a Change in Control, (1) a good faith determination by the chief executive officer that as a result of such Change in Control he is not able to discharge his duties effectively or (2) without the chief executive officer’s express written consent, the occurrence of any of the following circumstances: (a) the assignment to the chief executive officer of any duties inconsistent (exceptprovision in the ~~nature~~event of ~~a promotion) with the position in the Company that he held immediately prior~~certain occurrences, including but not limited to, the Change in Control or a substantial adverse alteration in the nature or status of his position or responsibilities or the conditions of his employment from those in effect immediately prior to the Change in Control; (b) a reduction by the Company in the Base Salary as in effect on the date of the Change in Control; (c) the Company’s requiring the chief executive officer to be based more than 25 miles from the Company’s offices at which he was principally employed immediately prior to the date of the Change in Control except for required travel on the Company’s business to an extent substantially consistent with his present business travel obligations; or (d) the failure by the Company to continue in effect any material compensation or benefit plan in which the chief executive officer participates immediately prior to the Change in Control unless an equitable arrangement (embodied in an ongoing substitute or alternative plan) has been made with respect to such plan, or the failure by the Company to continue the chief executive officer’s participation therein (or in such substitute or alterative plan) on a basis not materially less favorable, both in terms of the amount of benefits provided and the level of his participation relative to other participants, than existed at the time of the Change in Control. The chief executive officer’s continued employment shall not constitute consent to, or a waiver of rights with respect to, any circumstance constituting Good Reason hereunder.

~~Change in Control.~~ A “Change in Control” shall occur or be deemed to have occurred only if any of the following events occur: (i) any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), (other than any majority owned subsidiary thereof, the Company, any trustee or other fiduciary holding securities under an employee benefit plan of the Company, any trustee or other fiduciary of a trust treated for federal income tax purposes as a grantor trust of which the Company is the grantor, or any corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportion as their ownership of stock of the Company) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities on any matter which could come before its stockholders for approval; (ii) individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board, provided that any person becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board (other than an election or nomination of an individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of the directors of the Company, as such terms are used in Rule 14a-11 of Regulation 14A under the Exchange Act) shall be, for purposes of this Agreement, considered as though such person were a member of the Incumbent Board; (iii) the stockholders of the Company approve a merger or consolidation of the Company with any other corporation, other than (A) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being convertedour entering into voting securities of the surviving entity) more than 80% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation or (B) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no “person” (as hereinabove defined) acquires more than 50% of the combined voting power of the Company’s then outstanding securities; or (iv)

~~the stockholders of the Company approve a plan of complete liquidation of the Company or~~ an agreement for the sale or disposition by ~~the Company~~us of all or substantially all of our assets. Given that the ~~Company’s assets.~~

~~Cause.~~ ~~“Cause” shall mean any~~Asset Sale qualified as a change in control as set forth in the Adams Agreement, Mr. Adams was eligible for a change in control payment of $650,000, which payment was made in February 2020. Although Mr. Adams’ employment agreement was terminated on January 31, 2020, the ~~following:~~

misconduct of the chief executive officer during the course of his employment which is materially injurious to the Company and which is brought to the attention of the chief executive officer promptly after discovery by the Company, including but not limited to, theft or embezzlement from the Company, the intentional provision of services to competitors of the Company, or improper disclosure of proprietary information, but not including any act or failure to act by the chief executive officer that he believed in good faith to be proper conduct not adverse to his duties hereunder;

~~willful disregard or neglect by the chief executive officer of his duties or of the Company’s interests that continues after being brought to the attention of the chief executive officer;~~

~~unavailability, except~~Asset Sale closing date, as provided for in ~~Section 3.5 of~~ the ~~Employment~~Adams Agreement, ~~(Disability or Death), of the~~Mr. Adams continued as tour chief executive officer and sole director pursuant to ~~substantially perform~~a consulting agreement agreed to by the ~~duties provided for herein;~~

~~conviction of a fraud or felony or any criminal offense involving dishonesty, breach of trust or moral turpitude during the chief executive officer’s employment;~~

~~the chief executive officer’s breach of any~~then members of the ~~material terms~~Board of the Employment Agreement (including the failure of the chief executive officer to discharge his duties in a highly competent manner) or any other agreements executed in connection with the Employment Agreement.Directors.

The following table describes the estimated incremental compensation upon (i) termination by us of the Chief Executive Officer without Cause, (ii) termination for Good Reason by the Chief Executive Officer following a Change in Control, or (iii) failure by us to renew the Employment Agreement within two years following the occurrence of a Change in Control. The estimated incremental compensation assumes the triggering event had occurred on March 31, 2019. Benefits generally available to all employees are not included in the table. The actual amount of compensation can only be determined at the time of termination or change in control. No other named executive officer in fiscal 2019 is entitled to receive any payments upon termination or a change of control.

(1)~~Lump-sum payment equal to 2.0 times Mr. Adams’ base salary of $320,000 per annum, the base salary then in effect as of March 31, 2019.~~

(2)~~Represents estimated out-of-pocket COBRA health insurance premium expenses incurred by the Chief Executive Officer over the six-month period following termination to be reimbursed by us.~~

(3)Represents estimated life insurance premiums to be paid by us on behalf of the Chief Executive Officer after termination. We shall continue in full force and effect, at our expense, the life insurance benefits provided in the Employment Agreement for a period of 12 months after termination of the Chief Executive Officer’s employment or until the Chief Executive Officer becomes employed, whichever occurs first.

~~During the year ended March 31, 2019, there were no exercises of option awards by the named executive officers.~~

Beneficial ownership has been determined in accordance with Rule 13d-3 under the Securities Exchange Act of 1934. Under this rule, certain shares may be deemed to be beneficially owned by more than one person, if, for example, persons share the power to vote or the power to dispose of the shares. In addition, shares are deemed to be beneficially owned by a person if the person has the right to acquire shares, for example, upon exercise of an option or warrant, within 60 days of ~~July 31, 2019.~~September 22, 2021. In computing the percentage ownership of any person, the amount of shares is deemed to include the amount of shares beneficially owned by such person, and only such person, by reason of such acquisition rights. As a result, the percentage of outstanding shares of any person as shown in the following table does not necessarily reflect the person’s actual voting power at any particular date.

(1)~~Unless otherwise indicated, the business address of the stockholders named in the table above is AdvanSource Biomaterials Corporation, Inc. 229 Andover Street, Wilmington, MA 01887.~~

(2)Based on 28,340,621 outstanding shares as of July 31, 2019, which includes 6,850,000 shares which may be purchased within 60 days of July 31, 2019 upon the exercise of stock options by the named beneficial owners.

(3)~~Includes 3,050,000 shares of common stock, which may be purchased within 60 days of July 31, 2019 upon the exercise of stock options.~~

(4)~~Includes 1,500,000 shares of common stock, which may be purchased within 60 days of July 31, 2019 upon the exercise of stock options.~~

(5)~~Includes 875,000 shares of common stock, which may be purchased within 60 days of July 31, 2019 upon the exercise of stock options.~~

(6)~~Includes 875,000 shares of common stock, which may be purchased within 60 days of July 31, 2019 upon the exercise of stock options.~~

(7)~~Includes 550,000 shares of common stock, which may be purchased within 60 days of July 31, 2019 upon the exercise of stock options.~~

Item 13.~~Certain Relationships~~Effective February 1,, 2020, Mr. Adams, served as our chief executive officer as a non-employee consultant and ~~Related Transactions, and Director Independence~~

~~On April 26, 2016, we entered into Promissory Notes in the aggregate principal amount~~he is also holder of ~~$50,000 (the “Notes”) with Khristine Carroll,~~approximately 11.5% of our Executive VP of Commercial Operations and an affiliate of Michael Adams, our Chief Executive Officer (the “Affiliate”) (collectively, the “Investors”). The Notes were initially due on May 25, 2016 and are currently being extended for consecutive monthly periods as mutually agreed upon by the parties and provided for by the terms of the Notes. The Notes bear interest at the rate of 10% per annum and all principal and accrued interest, if any, is due on demand. During the fiscal years ended March 31, 2019 and 2018, we repaid $5,000 and $5,000 of principal to Ms. Carroll. As of March 31, 2019 and 2018, the principal balance outstanding ~~was $40,000 and $45,000, respectively.~~common stock. During the fiscal year ended March 31, ~~2019~~2021, Mr. Adams earned approximately $76,000 in consulting fees and ~~2018, we recorded interest expense of~~was reimbursed approximately ~~$4,000~~$29,000 for office expenses and ~~$4,000, respectively, on the Notes.~~car allowance. As of March 31, ~~2019~~2021, there was approximately $17,000 payable to Mr. Adams in consideration of his consulting services and ~~2018 our accrued interest outstanding was $0~~reimbursable expense and ~~$0, respectively.~~allowances.

On December 5, 2016, we entered into an additional Promissory Note in the principal amount of $100,000 (the “Second Note”) with the Affiliate. The Second Note bears interest at the rate of 12% per annum, provides for a $3,000 commitment fee, which fee was paid in February 2017. Additionally, all principal and accrued interest, if any, which is due on demand, has been extended for consecutive month-to-month periods as mutually agreed to by the parties. As of March 31, 2019 and 2018, the principal balance outstanding was $100,000 and $100,000, respectively. During the fiscal year ended March 31, 2019 and 2018 we recorded interest expense of $12,000 and $12,000, respectively, on the Second Note. As of March 31, 2019 and 2018, our accrued interest outstanding was $0 and $0, respectively.

Transactions with related parties, including, but not limited to, members of the Board of Directors, are reviewed and approved by all members of the Board of Directors. In the event a transaction with a member of the Board is contemplated, the Director having a beneficial interest in the transaction is not allowed to participate in the decision-making and approval process. The policies and procedures surrounding the review, approval or ratification of related party transactions are not in writing, nevertheless, such reviews, approvals and ratifications of related party transactions are documented in the minutes of the meetings of the Board of Directors and any such transactions are committed to writing between the related party and us in an executed engagement agreement.

We are not currently subject to listing requirements of ~~Directors~~any national securities exchange or inter-dealer quotation system which has ~~adopted director independence guidelines~~requirements that ~~are consistent with the definitions of “independence” as set forth in Section 301~~a majority of the ~~Sarbanes-Oxley Act~~Board be “independent” and, as a result, we are not at this time required to have our Board comprised of ~~2002, Rule 10A-3 under the Securities Exchange Act~~a majority of ~~1934, as amended (the “Exchange Act”). In accordance with these guidelines, the~~“Independent Directors.” Our Board ~~of Directors has reviewed and considered facts and circumstances relevant to the independence of each~~is currently composed of our ~~directors and director nominees and has determined that, each of our non-management directors qualifies as “independent.”~~chief executive officer.

The Board ~~met one time~~did not meet during the fiscal year ended March 31, 2019. Each director attended this meeting of the Board and of committees of the Board on which he served during fiscal 2019. The non-management members of the Board met, without any members of management present, at the scheduled Board of Directors meeting. The members of the Board and its committees did not act by unanimous written consent during the year ended March 31, 2019 pursuant2021.

to Delaware law. We do not have a formal policy regarding attendance at the Annual Meeting by directors, but we strongly encourage all directors to attend the Annual Meeting when an Annual Meeting is held.

On October 9, 2020, Mr. Mark Tauscher notified the Board of Directors ~~has an Audit Committee, Compensation Committee~~that he would be retiring and ~~Nominating/Corporate Governance Committee. The membership~~resigning his position as a member of ~~each, as of July 31, 2019, is indicated in~~ the ~~table below.~~

~~The~~ Board of Directors ~~has determined~~effective October 9, 2020. On October 11, 2020, Mr. Michael L. Barretti notified the Board of Directors that ~~all~~he would be retiring and resigning his position as a member of the ~~members~~Board of ~~each committee are independent pursuant~~Directors effective October 11, 2020. On October 13, 2020, Mr. William J. O’Neill, Jr. notified the Board of Directors that he would be retiring and resigning his position as the chairman and member of the Board of Directors effective October 13, 2020. These resignations were not a result of any disagreements with the Company on any matters relating to the ~~requirements~~Company’s operations, policies or practices.

We currently have no separate audit, compensation, or nominating committees. The entire Board oversees our (i) audits and auditing procedures; (ii) compensation philosophies and objectives, establishment of remuneration levels for our executive officer, and implementation of our incentive programs; and (iii) identification of individuals qualified to become Board members and recommendation to our shareholders of persons to be nominated for election as ~~contemplated by Rule 10A-3 under the Exchange Act.~~directors.

We did not provide any Board compensation during the ~~approximate annual compensation of AdvanSource non-employee directors for~~ fiscal 2019, which consisted of annual cash retainers, including amounts associated with serving as Chairman of the Board and member of the Audit committee, and equity awards in the form of options pursuant to the 2003 Stock Option Plan and the 2017 Non-Qualified Equity Incentive Plan. Employee directors do not receive any separate compensation for their service on the Board.year ended March 31, 2021.

(1)The amount reported in this column for the non-employee directors represents the grant date fair value of equity awards determined in accordance with the accounting standards for stock-based compensation.

We did not incur any fees related to audits from Liggett & Webb, P.A. during the fiscal year ended March 31, 2021.

Audit Fees. This category consists of fees billed for professional services rendered for the audit of our annual financial statements and review of financial statements included in our quarterly reports and other professional services provided in connection with regulatory filings.

Other Audit Related Fees. This category consists of fees billed for professional services rendered for services other than those described herein asAudit Fees or Tax Fees.

Tax Fees. This category consists of fees billed for professional services for tax compliance, tax advice and tax planning. These services include assistance regarding federal and state tax compliance and acquisitions.

Pre-Approval Policies and Procedures. The ~~Audit Committee~~Board of Directors has the authority to approve all audit and non-audit services that are to be performed by our independent registered public accounting firm. Generally, we may not engage our independent registered public accounting firm to render audit or non-audit services unless the service is specifically approved in advance by the ~~Audit Committee~~Board of Directors (or a properly delegated subcommittee thereof).

(1)~~Financial Statements: For a list of financial statements which are filed as part of this Form 10-K, See Item 8, page 22.~~

~~REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM~~

~~To the Stockholders and Board of Directors of AdvanSource Biomaterials Corporation~~

~~Wilmington, Massachusetts~~

~~Opinion on the Financial Statements~~

We have audited the accompanying balance sheet of AdvanSource Biomaterials Corporation (the “Company”) as of March 31, 2019 and 2018 and the related statements of operations, stockholders’ equity, and cash flows for each of the two years in the period ended March 31, 2019 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of March 31, 2019 and 2018 and the results of its operations and its cash flows for each of the two years ended March 31, 2019 and 2018, in conformity with accounting principles generally accepted in the United States of America.

~~Basis for Opinion~~

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

~~/s/ RBSM LLP~~ *

~~We have served as the Company’s auditors since 2016~~

~~New York, NY~~

~~August 22, 2019~~	Filed herewith.

F-1

~~AdvanSource Biomaterials Corporation~~SIGNATURES

~~Balance Sheets~~

~~(In thousands, except per share and per share amounts)~~

	~~March 31, 2019~~	~~March 31, 2018~~
~~ASSETS~~
~~Current assets:~~
~~Cash~~	`$172`	`$120`
~~Accounts receivable-trade, net of allowance of $5 as of March 31, 2019 and 2018~~	`483`	`202`
~~Accounts receivable-other~~	`185`	`368`
~~Inventories, net~~	`248`	`297`
~~Prepaid expenses and other current assets~~	`3`	`4`
~~Total current assets~~	`1,091`	`991`
~~Property, plant and equipment, net~~	`1,791`	`1,823`
~~Deferred financing costs, net~~	`52`	`59`
~~Other assets~~	`47`	`47`
~~Total assets~~	`$2,981`	`$2,920`
~~LIABILITIES AND STOCKHOLDERS' DEFICIT~~
~~Current liabilities:~~
~~Accounts payable~~	`$467`	`$544`
~~Accrued expenses~~	`342`	`265`
~~Customer advance~~	`24`	`295`
~~Related party notes payable~~	`140`	`145`
~~Deferred revenue~~	`-`	`13`
~~Total current liabilities~~	`973`	`1,262`
~~Long-term liabilities:~~
~~Long-term financing obligation~~	`1,986`	`1,986`
~~Accrued interest on financing obligation~~	`168`	`175`
~~Total long-term liabilities~~	`2,154`	`2,161`
~~Total liabilities~~	`3,127`	`3,423`

~~Commitments and contingencies (See Note 9 and 10)~~	`-`	`-`

~~Stockholders' deficit:~~
~~Preferred stock; $.001 par value; 5,000,000 shares authorized; no shares issued and outstanding as of March 31, 2019 and 2018~~	`-`	`-`
~~Common stock; $.001 par value; 50,000,000 shares authorized; 21,567,313 shares issued; and 21,490,621 shares outstanding as of March 31, 2019 and 2018~~	`21`	`21`
~~Additional paid-in capital~~	`38,427`	`38,404`
~~Accumulated deficit~~	`(38,564)`	`(38,898)`
~~Treasury stock, 76,692 shares at cost as of March 31, 2019 and 2018~~	`(30)`	`(30)`
~~Total stockholders' deficit~~	`(146)`	`(503)`
~~Total liabilities and stockholders' deficit~~	`$2,981`	`$2,920`

~~The accompanying notes are an integral part of these financial statements.~~

F-2

~~AdvanSource Biomaterials Corporation~~

~~Statements of Operations~~

~~(In thousands, except per share amounts)~~

	~~For the Year Ended March 31, 2019~~	~~For the Year Ended March 31, 2018~~
~~Revenues:~~
~~Product sales~~	`$2,408`	`$1,859`
~~License and royalty fees~~	`938`	`1,059`
~~Total revenues~~	`3,346`	`2,918`
~~Cost of sales~~	`877`	`799`
~~Gross profit~~	`2,469`	`2,119`
~~Operating expenses:~~
~~Research, development and regulatory~~	`345`	`375`
~~Selling, general and administrative~~	`1,373`	`1,563`
~~Total operating expenses~~	`1,718`	`1,938`
~~Income from operations~~	`751`	`181`
~~Interest expense~~	`(417)`	`(383)`
~~Net income (loss) before provision for income taxes~~	`334`	`(202)`
~~Provision for income taxes~~	`-`	`-`
~~Net income (loss)~~	`$334`	`$(202)`

~~Net income (loss) per common share:~~
~~Basic~~	`$0.02`	`$(0.01)`
~~Diluted~~	`$0.01`	`$(0.01)`

~~Shares used in computing net income (loss) per common share:~~
~~Basic~~	`21,491`	`21,491`
~~Diluted~~	`23,096`	`21,491`

~~The accompanying notes are an integral part of these financial statements.~~

F-3

~~AdvanSource Biomaterials Corporation~~

~~Statements of Stockholders’ Deficit~~

~~For the Years Ended March 31, 2019 and 2018~~

~~(In thousands)~~

~~Common Stock Outstanding~~

~~Shares~~

~~Amount~~

~~Additional Paid-in Capital~~

~~Accumulated Deficit~~

~~Treasury Stock~~

~~Total Stockholders' Deficit~~

~~Balance at March 31, 2017~~

21,491

$21

$38,104

$(38,696)

$(30)

$(601)

~~Stock-based compensation~~

300

~~Net income (loss)~~

(202)

~~Balance at March 31, 2018~~

21,491

21

38,404

(38,898)

(30)

(503)

~~Stock-based compensation~~

23

~~Net income (loss)~~

334

~~Balance at March 31, 2019~~

21,491

$21

$38,427

$(38,564)

$(30)

$(146)

~~The accompanying notes are an integral part of these financial statements.~~

F-4

~~AdvanSource Biomaterials Corporation~~

~~Statements of Cash Flows~~

~~(In thousands)~~

	~~For the Year Ended March 31, 2019~~	~~For the Year Ended March 31, 2018~~
~~Cash flows from operating activities:~~
~~Net income (loss)~~	`$334`	`$(202)`
~~Adjustments to reconcile net income (loss) to net cash flows provided by operating activities:~~
~~Depreciation~~	`56`	`52`
~~Amortization of deferred financing costs~~	`7`	`7`
~~Provision for inventory reserves~~	`-`	`(30)`
~~Stock-based compensation~~	`23`	`300`
~~Changes in assets and liabilities:~~
~~Accounts receivable-trade~~	`(281)`	`(108)`
~~Accounts receivable-other~~	`183`	`(229)`
~~Inventories~~	`49`	`(78)`
~~Prepaid expenses and other current assets~~	`1`	`1`
~~Accounts payable~~	`(77)`	`94`
~~Accrued expenses~~	`70`	`13`
~~Customer advance~~	`(271)`	`288`
~~Deferred revenue~~	`(13)`	`-`
~~Net cash flows provided by operating activities~~	`81`	`108`
~~Cash flows from investing activities:~~
~~Purchase of equipment~~	`(24)`	`(10)`
~~Net cash flows used in investing activities~~	`(24)`	`(10)`
~~Cash flows from financing activities:~~
~~Repayment of related party notes payable~~	`(5)`	`(5)`
~~Net cash flows used in financing activities~~	`(5)`	`(5)`
~~Net change in cash~~	`52`	`93`
~~Cash at beginning of year~~	`120`	`27`
~~Cash at end of year~~	`$172`	`$120`

~~Supplemental disclosure of cash flow information:~~
~~Income taxes paid~~	`$-`	`$-`
~~Interest paid~~	`$382`	`$373`

~~The accompanying notes are an integral part of these financial statements.~~

F-5

~~ADVANSOURCE BIOMATERIALS CORPORATION~~

~~NOTES TO FINANCIAL STATEMENTS~~

1.~~Nature of Business~~

AdvanSource Biomaterials Corporation (“AdvanSource”) develops advanced polymer materials which provide critical characteristics in the design and development of medical devices. Our biomaterials are used in devices that are designed for treating a broad range of anatomical sites and disease states. Our business model leverages our proprietary materials science technology and manufacturing expertise in order to expand product sales and royalty and license fee income.

Our technology, notably products such as ChronoFlex®, HydroMed™, and HydroThane™, which have been developed to overcome a wide range of design and functional challenges such as the need for dimensional stability, ease of manufacture and demanding physical properties to overcoming environmental stress cracking and providing heightened lubricity for ease of insertion. Our new product extensions customize proprietary polymers for specific customer applications in a wide range of device categories.

~~Our corporate, development and manufacturing operations are located in Wilmington, Massachusetts.~~

~~Fiscal Year~~

~~Our fiscal year ends on March 31. References herein to fiscal 2019 and/or fiscal 2018 refer to the fiscal years ended March 31, 2019 and/or 2018, respectively.~~

2.~~Liquidity~~

~~However, based upon our evaluation, management believes that we are a going concern.~~

3.~~Summary of Significant Accounting Policies~~

~~Accounting Principles~~

~~The financial statements and accompanying notes are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”).~~

~~Use of Accounting Estimates~~

The preparation of financial statements in conformity with U.S. GAAP (“GAAP”) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

~~Cash~~

~~Cash includes cash on hand, is deposited at one area bank and may exceed federally insured limits at times.~~

F-6

~~ADVANSOURCE BIOMATERIALS CORPORATION~~

~~NOTES TO FINANCIAL STATEMENTS~~

~~Revenue Recognition~~

We adopted the Accounting Standard Codification (“ASC”) 606, “Revenue from Contracts with Customers” as of April 1, 2018, using the modified retrospective method, and concluded that, consistent with prior reporting, we have two separate revenue streams: (i) product sales, and (ii) royalty and licensing revenues. Results for reporting periods after April 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with legacy accounting guidance under ASC 605, “Revenue Recognition.” The adoption of ASC 606 had no impact upon adoption, to our net income for the year ended March 31, 2019.

~~Research, Development and Regulatory Expense~~

Research, development and regulatory expenditures for the years ended March 31, 2019 and 2018 were approximately $345,000 and $375,000, respectively, and consisted primarily of salaries and related costs and are expensed as incurred. We had two full time research and development employees that work on a variety of projects, including production support.

~~Advertising Costs~~

Advertising costs are expensed as incurred or at the first time the advertising takes place. We incurred advertising costs of approximately $1,000 and $1,000 for the years ended March 31, 2019 and 2018, respectively.

~~Loss Per Share~~

Basic loss per common share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted loss per common share are based upon the weighted-average common shares outstanding during the period plus additional weighted-average common equivalent shares outstanding during the period. Common equivalent shares result from the assumed exercise of outstanding stock options and warrants, the proceeds of which are then assumed to have been used to repurchase outstanding common stock using the treasury stock method. In addition, the numerator is adjusted for any changes in loss that would result from the assumed conversion of potential shares. Potentially dilutive shares, which were excluded from the diluted loss per share calculations because the effect would be antidilutive or the options exercise prices were greater than the average market price of the common shares, were 7,563,556 and 7,413,750 shares for the fiscal years ended March 31, 2019 and 2018, respectively.

~~Accounts Receivable~~

We perform various analyses to evaluate accounts receivable balances and record an allowance for bad debts based on the estimated collectability of the accounts such that the amounts reflect estimated net realizable value. Account balances are charged off against the allowance after significant collection efforts have been made and potential for recovery is not considered probable. As of March 31, 2019 and 2018, our allowance for doubtful accounts was $5,000 and $5,000, respectively.

F-7

~~ADVANSOURCE BIOMATERIALS CORPORATION~~

~~NOTES TO FINANCIAL STATEMENTS~~

~~Inventories~~

We value our inventory at the lower of our actual cost or the current estimated market value. We regularly review inventory quantities on hand and inventory commitments with suppliers and records a provision for excess and obsolete inventory based primarily on our historical usage. During the fiscal years ended March 31, 2019 and 2018, we provided additional net amounts of approximately $11,000 and $16,000, respectively, for excess and obsolete inventory. During the fiscal year ended March 31, 2019 and 2018, we disposed of certain obsolete inventory items in the aggregate amount of approximately $42,000 and $46,000, respectively. As of March 31, 2019 and 2018, our allowance for obsolete and excess inventory was approximately $81,000 and $112,000, respectively.

Although we make every effort to ensure the accuracy of our forecasts of future product demand, any significant unanticipated change in demand or technological developments could have a significant impact on the value of our inventory and our reported operating results.

~~Property and Equipment~~

Property and equipment are stated at cost. Equipment is depreciated using the straight-line method over the estimated useful lives of the assets, ranging from three to seven years. Building improvements are amortized using the straight-line method over the remaining estimated life of the building at the time the improvement is put into service. Our building is depreciated using the straight-line method over 40 years. Land is not depreciated. Expenditures for repairs and maintenance are charged to expense as incurred. We record construction in process in the appropriate asset category and commence depreciation upon completion and commencement of use of the asset. Equipment purchased pursuant to capital lease obligations, primarily computer equipment, is recorded at cost and depreciated on a straight-line basis over the life of the lease.

~~Deferred Financing Costs~~

We have capitalized certain costs related to the issuance of debt. These costs are amortized to interest expense on a straight-line basis over the term of the debt. During the fiscal years ended March 31, 2019 and 2018, amortization expense related to deferred financing costs were $7,000 and $7,000, respectively.

~~Income Taxes~~

The provision for income taxes includes federal, state, local and foreign taxes. Income taxes are accounted for under the liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences between the financial statement carrying amounts and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the temporary differences are expected to be recovered or settled. We evaluate the realizability of our deferred tax assets and establish a valuation allowance when it is more likely than not that all or a portion of deferred tax assets will not be realized.

We account for uncertain tax positions using a “more-likely-than-not” threshold for recognizing and resolving uncertain tax positions. The evaluation of uncertain tax positions is based on factors including, but not limited to, changes in tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, new audit activity and changes in facts or circumstances related to a tax position. We evaluate this tax position on a quarterly basis. We also accrue for potential interest and penalties, if applicable, related to unrecognized tax benefits in income tax expense. (See Note 7).

~~Impairment of Long-Lived Assets~~

We evaluate our long-lived assets, which include property and equipment, for impairment as events and circumstances indicate that the carrying amount may not be recoverable. We evaluate the realizability of our long-lived assets based on reviews of results of sales of similar assets and independent appraisals. As a result of the continued operating losses described above, we evaluated the recoverability of our property and equipment as of March 31, 2019 and 2018 and determined that there existed no impairment of long-lived assets.

F-8

~~ADVANSOURCE BIOMATERIALS CORPORATION~~

~~NOTES TO FINANCIAL STATEMENTS~~

~~Stock-Based Compensation~~

Stock-based compensation is measured at the grant date based on the estimated fair value of the award and is recognized as an expense over the requisite service period. The valuation of employee stock options is an inherently subjective process, since market values are generally not available for long-term, non-transferable employee stock options. Accordingly, the Black-Scholes option pricing model is utilized to derive an estimated fair value. The Black-Scholes pricing model requires the consideration of the following six variables for purposes of estimating fair value:

~~the stock option exercise price;~~

~~the expected term of the option;~~

~~the grant date price of our common stock, which is issuable upon exercise of the option;~~

~~the expected volatility of our common stock;~~

~~the expected dividends on our common stock (we do not anticipate paying dividends in the foreseeable future); and~~

~~the risk free interest rate for the expected option term.~~

~~Expected Dividends.~~ We have never declared or paid any cash dividends on any of our capital stock and do not expect to do so in the foreseeable future. Accordingly, we use an expected dividend yield of zero to calculate the grant-date fair value of a stock option.

~~Expected Volatility.~~ The expected volatility is a measure of the amount by which our stock price is expected to fluctuate during the expected term of options granted. We determine the expected volatility solely based upon the historical volatility of our common stock over a period commensurate with the option’s expected term. We do not believe that the future volatility of our common stock over an option’s expected term is likely to differ significantly from the past.

~~Risk-Free Interest Rate.~~ ~~The risk-free interest rate is the implied yield available on U.S. Treasury zero-coupon issues with a remaining term equal to the option’s expected term on the grant date.~~

~~Expected Term.~~ For option grants subsequent to the adoption of the fair value recognition provisions of the accounting standards, the expected life of stock options granted is based on the actual vesting date and the end of the contractual term.

~~Stock Option Exercise Price and Grant Date Price of Common Stock.~~ ~~The closing market price of our common stock on the date of grant.~~

We are required to estimate the level of award forfeitures expected to occur and record compensation expense only for those awards that are ultimately expected to vest. This requirement applies to all awards that are not yet vested. Due to the limited number of unvested options outstanding, the majority of which are held by executives and members of our Board of Directors, we have estimated a zero forfeiture rate. We will revisit this assumption periodically and as changes in the composition of the option pool dictate.

~~Fair Value of Financial Instruments~~

~~We follow Accounting Standards Codification 820-10 (“ASC 820-10”),~~~~“Fair Value Measurements and Disclosures,”~~ for fair value measurements. ASC 820-10 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The standard provides a consistent definition of fair value, which focuses on an exit price, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard also prioritizes, within the measurement of fair value, the use of market-based information over entity specific information and establishes a three-level hierarchy for fair value measurement based on the nature of inputs used in the valuation of an asset or liability as of the measurement date.

The hierarchy established under ASC 820-10 gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under ASC 820-10 are described below:

Level 1 - Pricing inputs are quoted prices available in active markets for identical investments as of the reporting date. As required by ASC 820-10, we do not adjust the quoted price for these investments, even in situations where we hold a large position and a sale could reasonably impact the quoted price.

F-9

~~ADVANSOURCE BIOMATERIALS CORPORATION~~

~~NOTES TO FINANCIAL STATEMENTS~~

Level 2 - Pricing inputs are quoted prices for similar investments, or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data. Level 2 includes investments valued at quoted prices adjusted for legal or contractual restrictions specific to these investments.

Level 3 - Pricing inputs are unobservable for the investment, that is, inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Level 3 includes investments that are supported by little or no market activity.

~~Recent Accounting Pronouncements~~

~~We have evaluated all issued but not yet effective accounting pronouncements and determined that, other than the following, they are either immaterial or not relevant to us.~~

In February 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) “ASU 2016 - 02 Leases” intended to improve financial reporting about leasing transactions. The ASU affects all companies and other organizations that lease assets such as real estate, office equipment and manufacturing equipment. The ASU will require organizations that lease assets - referred to as “lessees” - to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases.

Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current Generally Accepted Accounting Principles (GAAP), the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP - which requires only capital leases to be recognized on the balance sheet - the new ASU will require both types of leases to be recognized on the balance sheet. The ASU also will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The accounting by organizations that own the assets leased by the lessee - also known as lessor accounting - will remain largely unchanged from current GAAP. However, the ASU contains some targeted improvements that are intended to align, where necessary, lessor accounting with the lessee accounting model and with the updated revenue recognition guidance issued in 2014. The ASU on leases will take effect for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other organizations, the ASU on leases will take effect for fiscal years beginning after December 15, 2019, and for interim periods within fiscal years beginning after December 15, 2020. It is not anticipated that this updated guidance will have a material impact on our results of operations, cash flows or financial condition.

In January 2016, the FASB issued “ASU 2016 - 01 Recognition and Measurement of Financial Assets and Financial Liabilities,” intended to improve the recognition and measurement of financial instruments. The ASU affects public and private companies, not-for-profit organizations, and employee benefit plans that hold financial assets or owe financial liabilities. The new guidance makes targeted improvements to existing GAAP by:

Requiring equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income;

~~Requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes;~~

Requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements;

~~Eliminating the requirement to disclose the fair value of financial instruments measured at amortized cost for organizations that are not public business entities;~~

Eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; and

Requiring a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments.

F-10

~~ADVANSOURCE BIOMATERIALS CORPORATION~~

~~NOTES TO FINANCIAL STATEMENTS~~

The ASU on recognition and measurement will take effect for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. For private companies, not-for-profit organizations, and employee benefit plans, the standard becomes effective for fiscal years beginning after December 15, 2018, and for interim periods within fiscal years beginning after December 15, 2019. The ASU permits early adoption of the own credit provision (referenced above). Additionally, it permits early adoption of the provision that exempts private companies and not-for-profit organizations from having to disclose fair value information about financial instruments measured at amortized cost. We adopted this guidance effective April 1, 2018 and determined that the implementation did not have a material impact on our results of operations, cash flows or financial condition.

In April 2016, the FASB issued “ASU 2016 - 10 Revenue from Contract with Customers (Topic 606): identifying Performance Obligations and Licensing.” The amendments in this Update do not change the core principle of the guidance in Topic 606. Rather, the amendments in this Update clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. Topic 606 includes implementation guidance on (a) contracts with customers to transfer goods and services in exchange for consideration and (b) determining whether an entity’s promise to grant a license provides a customer with either a right to use the entity’s intellectual property (which is satisfied at a point in time) or a right to access the entity’s intellectual property (which is satisfied over time). The amendments in this Update are intended to render more detailed implementation guidance with the expectation to reduce the degree of judgement necessary to comply with Topic 606. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. We adopted this guidance on April 1, 2018, using the modified retrospective method, and concluded that, consistent with prior reporting, we have two separate revenue streams: (i) product sales, and (ii) royalty and licensing revenues. Results for reporting periods after April 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with legacy accounting guidance under ASC 605, “Revenue Recognition.” The adoption of ASC 606 had no impact upon adoption, to our net income for the year ended March 31, 2019.

In November 2016, the FASB issued ASU 2016-20, an amendment to ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU addressed several areas related to contracts with customers. This topic is not yet effective and will become effective with Topic 606. We are currently evaluating the impact this topic will have on our financial statements.

In January 2017, the FASB issued ASU 2017-04, an amendment to Topic 350, “Intangibles – Goodwill and Other.” An entity no longer will determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Because these amendments eliminate Step 3 2 from the goodwill impairment test, they should reduce the cost and complexity of evaluating goodwill for impairment. An entity should apply the amendments in this Update on a prospective basis. The amendments in this Update are effective for Goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact this guidance will have on its financial statements.

On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a federal corporate tax rate decrease from 35% to 21% for tax years beginning after December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of foreign earnings. We have estimated our provision for income taxes in accordance with the Tax Act and guidance available as of the date of this filing but have kept the full valuation allowance.

On December 22, 2017, Staff Accounting Bulletin No. 118 ("SAB 118") was issued to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The deferred tax expense recorded in connection with the remeasurement of deferred tax assets is a provisional amount and a reasonable estimate at December 31, 2017 based upon the best information currently available. The ultimate impact may differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and actions the Company may take as a result of the Tax Act. Any subsequent adjustment to these amounts will be

F-11

~~ADVANSOURCE BIOMATERIALS CORPORATION~~

~~NOTES TO FINANCIAL STATEMENTS~~

~~recorded to current tax expense in the quarter of 2018 when the analysis is complete. The accounting is expected to be complete when the 2018 corporate return is filed in 2019.~~

4.~~Related Party Transactions~~

On April 26, 2016, we entered into Promissory Notes in the aggregate principal amount of $50,000 (the “Notes”) with Khristine Carroll, our Executive VP of Commercial Operations and an affiliate of Michael Adams, our Chief Executive Officer (the “Affiliate”) (collectively, the “Investors”). The Notes were initially due on May 25, 2016 and are currently being extended for consecutive monthly periods as mutually agreed upon by the parties and provided for by the terms of the Notes. The Notes bear interest at the rate of 10% per annum and all principal and accrued interest, if any, is due on demand. During the fiscal years ended March 31, 2019 and 2018, we repaid $5,000 and $5,000 of principal to Ms. Carroll. As of March 31, 2019 and 2018, the aggregate principal balance outstanding was $40,000 and $45,000, respectively. During the fiscal year ended March 31, 2019 and 2018, we recorded interest expense of approximately $4,000 and $4,000, respectively, on the Notes. As of March 31, 2019 and 2018 our accrued interest outstanding was $0 and $0, respectively. On June 26, 2019, we repaid the principal balance outstanding of $15,000 on Ms. Carroll’s promissory note.

5.~~Inventories~~

~~Inventories, net of allowance for obsolete and excess inventory, are stated at the lower of cost (first in, first out) or market and consist of the following:~~

~~(in thousands)~~	~~March 31, 2019~~	~~March 31, 2018~~
~~Raw materials~~	`$136`	`$215`
~~Work in progress~~	`66`	`64`
~~Finished goods~~	`127`	`130`
	`329`	`409`
~~Less: allowance for obsolete and excess inventory~~	`(81)`	`(112)`
~~Total inventories, net~~	`$248`	`$297`

During the fiscal years ended March 31, 2019 and 2018, we provided additional net amounts of approximately $11,000 and $16,000, respectively, for excess and obsolete inventory. During the fiscal year ended March 31, 2019 and 2018, we disposed of certain obsolete inventory items in the aggregate amount of approximately $42,000 and $46,000, respectively.

6.~~Property, Plant and Equipment~~

~~Property, plant and equipment consist of the following:~~

~~(in thousands)~~	~~March 31, 2019~~	~~March 31, 2018~~
~~Land~~	`$500`	`$500`
~~Building~~	`2,705`	`2,705`
~~Machinery, equipment and tooling~~	`1,248`	`1,224`
~~Furniture, fixtures and office equipment~~	`285`	`285`
~~Office equipment under capital lease~~	`13`	`13`
	`4,751`	`4,727`
~~Less: accumulated depreciation~~	`(2,960)`	`(2,904)`
	`$1,791`	`$1,823`

~~Depreciation expense for the fiscal years ended March 31, 2019 and 2018 was approximately $56,000 and $52,000, respectively.~~

F-12

~~ADVANSOURCE BIOMATERIALS CORPORATION~~

~~NOTES TO FINANCIAL STATEMENTS~~

7.~~Income Taxes~~

~~As of March 31, 2019 and 2018, we had no material unrecognized tax benefits and no adjustments to liabilities or operations were required.~~

~~Tax years 2014 through 2019 are subject to examination by the federal and state taxing authorities. There are no income tax examinations currently in process.~~

~~Reconciliation between our effective tax rate and the United States statutory rate is as follows:~~

	~~For the Year Ended March 31, 2019~~	~~For the Year Ended March 31, 2018~~
~~Expected federal tax rate~~	`21.0%`	`34.0%`
~~State income taxes, net of federal tax benefit~~	`5.5%`	`5.5%`
~~Non-deductible expenses~~	`5.3%`	`(67.7%)`
~~Effect of tax rate decrease~~	`0.0%`	`9.3%`
~~Utilization of net operating losses~~	`(31.8%)`	`18.9`
~~Effective tax rate~~	`0.0%`	`0.0%`

~~Significant components of our deferred tax assets and deferred tax liabilities consist of the following:~~

~~(in thousands)~~	~~March 31, 2019~~	~~March 31, 2018~~
~~Deferred Tax Assets:~~
~~Net operating loss carryforwards~~	`$5,869`	`$9,318`
~~Tax credit carryforward~~	`152`	`169`
~~Inventory and receivable allowances~~	`23`	`46`
~~Accrued expenses deductible when paid~~	`35`	`45`
~~Deferred tax assets~~	`6,079`	`9,578`
~~Deferred Tax Liabilities:~~
~~Depreciation and amortization~~	`(153)`	`(172)`
~~Deferred tax liabilities~~	`(153)`	`(172)`
~~Net deferred tax assets~~	`5,926`	`9,406`
~~Valuation allowance~~	`(5,926)`	`(9,406)`
~~Net deferred tax assets~~	`$-`	`$-`

Deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amounts and the tax basis of the assets and liabilities using the enacted tax rate in effect in the years in which the differences are expected to reverse. A 100% valuation allowance has been recorded against the deferred tax asset as it is more likely than not, based upon our analysis of all available evidence, that the tax benefit of the deferred tax asset will not be realized. The gross deferred tax asset, and the related valuation allowance, both decreased by approximately $3,350,000 due to the reduction in the Federal corporate income tax rate from 35% to 21%. The balance of the decrease in the valuation allowance resulted from the utilization of net operating losses.

As of March 31, 2019, we have the following unused net operating loss and tax credit carryforwards available to offset future federal and state taxable income, both of which expire at various times as noted below:

F-13

~~ADVANSOURCE BIOMATERIALS CORPORATION~~

~~NOTES TO FINANCIAL STATEMENTS~~

~~(in thousands)~~	~~Net Operating Losses~~	~~Investment & Research Credits~~	~~Expiration Dates~~
~~Federal~~	`$26,400`	`$138`	~~2022 to 2039~~
~~State~~	`$5,915`	`$244`	~~2034 to 2039~~

Approximately $1,400,000 of the above Federal net operating loss carryforwards relate to stock compensation. The related tax benefit of approximately $578,000 will be credited to additional paid-in capital upon realization.

8.~~Promissory Notes~~

On April 26, 2016, we entered into Promissory Notes in the aggregate principal amount of $50,000 (the “Notes”) with Khristine Carroll, our Executive VP of Commercial Operations and an affiliate of Michael Adams, our Chief Executive Officer (the “Affiliate”) (collectively, the “Investors”). The Notes were initially due on May 25, 2016 and are currently being extended for consecutive monthly periods as mutually agreed upon by the parties and provided for by the terms of the Notes. The Notes bear interest at the rate of 10% per annum and all principal and accrued interest, if any, is due on demand. During the fiscal years ended March 31, 2019 and 2018, we repaid $5,000 and $5,000 of principal to Ms. Carroll. As of March 31, 2019 and 2018, the principal balance outstanding was $40,000 and $45,000, respectively. During the fiscal year ended March 31, 2019 and 2018, we recorded interest expense of approximately $4,000 and $4,000, respectively, on the Notes. As of March 31, 2019 and 2018 our accrued interest outstanding was $0 and $0, respectively. On June 26, 2019, we repaid the principal balance outstanding of $15,000 on Ms. Carroll’s promissory note.

9.~~Long-Term Financing Obligation~~

On December 22, 2011, we entered into an agreement with an independent third-party under which we sold and leased back our land and building generating gross proceeds of $2,000,000. Pursuant to a lease agreement, the initial minimum lease term is 15 years. At the end of the initial minimum lease term, we have the option to renew the lease for three periods of five years each. We provided, as collateral, a security interest in all furnishings, fixtures and equipment owned and used by us, having a net book value of approximately $0 as of March 31, 2019. For accounting purposes, the provision of such collateral constitutes continuing involvement with the associated property. Due to this continuing involvement, this sale-leaseback transaction is accounted for under the financing method, rather than as a completed sale. Under the financing method, we include the sales proceeds received as a financing obligation. As of March 31, 2019 and 2018, the total financing obligation was $1,986,000 and $1,986,000, respectively, and accrued

F-14

~~ADVANSOURCE BIOMATERIALS CORPORATION~~

~~NOTES TO FINANCIAL STATEMENTS~~

interest on financing obligation was approximately $168,000 and $175,000, respectively. Through December 2018, interest on the financing obligation exceeds the minimum lease payments, accordingly the principal remains constant through that date.

After December 2018, the minimum lease payment exceeded interest and principal, accordingly, reduced the excess of minimum lease payment over interest. The building, building improvements and land remain on the balance sheet and the building and building improvements will continue to be depreciated over their remaining useful lives. Payments made under the lease are applied as payments of imputed interest and deemed principal on the underlying financing obligation. The future minimum lease payments as of March 31, 2019 are as follows:

~~(in thousands)~~
~~Fiscal Years Ending March 31,~~
~~2020~~	`$369`
~~2021~~	`380`
~~2022~~	`391`
~~2023~~	`403`
~~2024~~	`415`
~~Thereafter~~	`805`
	`$2,763`

10.~~Contingencies~~

We are not a party to any legal proceedings, other than ordinary routine litigation incidental to our business, which we believe will not have a material effect on our financial position or results of operations.

11.~~Concentration of Credit Risk and Major Customers and Suppliers~~

For the fiscal year ended March 31, 2019, two customers represented approximately 24% and 11% of revenues, respectively. For the fiscal year ended March 31, 2018, three customers represented approximately 31%, 19% and 13%, respectively, of our revenues.

As of March 31, 2019, we had accounts receivable-trade of approximately $61,000, or 13%, due from one customer. As of March 31, 2018, we had accounts receivable-trade of approximately $102,000, or 51%, due from three customers.

During the fiscal year ended March 31, 2019, four vendors represented approximately $171,000, or 68%, of material purchases used in the production process. During the fiscal year ended March 31, 2018, two vendors represented, in the aggregate, $233,000, or 70%, of material purchases used in the production process.

12.~~Stockholders’ Deficit~~

~~Preferred Stock~~

We have authorized 5,000,000 shares, $0.001 par value, Preferred Stock (the Preferred Stock”) of which 500,000 shares have been issued and redeemed, therefore are not considered outstanding. In addition, 500,000 shares of Preferred Stock have been designated as Series A Junior Participating Preferred Stock (the “Junior Preferred Stock”) with the designations and the powers, preferences and rights, and the qualifications, limitations and restrictions specified in the Certificate of Designation of the Junior Preferred Stock filed with the Delaware Department of State on January 28, 2008. Such number of shares may be increased or decreased by resolution of the Board of Directors; provided, that no decrease shall reduce the number of shares of Junior Preferred Stock to a number less than the number of shares then outstanding plus the number of shares reserved for issuance upon the exercise of outstanding options, rights or warrants or upon the conversion of any outstanding securities issued by us that is convertible into Junior Preferred Stock. As of March 31, 2017, there was no Junior Preferred Stock issued or outstanding.

~~Common Stock Options and Warrants~~

On July 22, 2015, we engaged the services of a financial and strategic advisor whose services include, but are not limited to, financial advice, strategic advice and investment banking services. In connection with this engagement, we

F-15

~~ADVANSOURCE BIOMATERIALS CORPORATION~~

~~NOTES TO FINANCIAL STATEMENTS~~

agreed to compensate the investment bankers approximately $4,000 per quarter for a one-year period and we issued them a warrant to purchase 830,500 shares of our common stock at an exercise price of $0.301 per share, the approximate fair value of our common stock on the date of the engagement. The warrant is exercisable at any time until July 21, 2025. The warrant was valued at approximately $28,000 using the Black-Scholes model and treated as permanent equity.

~~There were no exercises of options or warrants by employees and consultants during the fiscal years ended March 31, 2017 and 2016.~~

~~Treasury Stock and Other Transactions~~

In June 2001, the Board of Directors adopted a share repurchase program authorizing the repurchase of up to 250,000 of our shares of common stock. In June 2004, the Board of Directors authorized the purchase of an additional 500,000 shares of common stock. Since June 2001, we have repurchased a total of 251,379 shares under the share repurchase program, leaving 498,621 shares remaining to purchase under the share repurchase program. No repurchases were made during the years ended March 31, 2017 and 2016. The share repurchase program authorizes repurchases from time to time in open market transactions, through privately negotiated transactions, block transactions or otherwise, at times and prices deemed appropriate by management, and is not subject to an expiration date.

~~Stockholder Rights Plan~~

Our Board of Directors approved the adoption of a stockholder rights plan (the “Rights Plan”) under which all stockholders of record as of February 8, 2008 will receive rights to purchase shares of the Junior Preferred Stock (the “Rights”). The Rights will be distributed as a dividend. Initially, the Rights will attach to, and trade with, our common stock. Subject to the terms, conditions and limitations of the Rights Plan, the Rights will become exercisable if (among other things) a person or group acquires 15% or more of our common stock. Upon such an event, and payment of the purchase price, each Right (except those held by the acquiring person or group) will entitle the holder to acquire shares of our common stock (or the economic equivalent thereof) having a value equal to twice the purchase price. Our Board of Directors may redeem the Rights prior to the time they are triggered. In the event of an unsolicited attempt to acquire us, the Rights Plan is intended to facilitate the full realization of our stockholder value and the fair and equal treatment of all of our stockholders. The Rights Plan does not prevent a takeover attempt.

13.~~Stock Based Compensation~~

In October 2003, our shareholders approved the AdvanSource 2003 Stock Option Plan (the “2003 Plan”), which authorizes the issuance of 3,000,000 shares of common stock. Under the terms of the Plan, the exercise price of Incentive Stock Options issued under the Plan must be equal to the fair market value of the common stock at the date of grant. In the event that Non-Qualified Options are granted under the Plan, the exercise price may be less than the fair market value of the common stock at the time of the grant (but not less than par value). Total shares of common stock registered under the 2003 Plan are 7,000,000 shares. Normally, options granted expire ten years from the grant date.

F-16

~~ADVANSOURCE BIOMATERIALS CORPORATION~~

~~NOTES TO FINANCIAL STATEMENTS~~

~~Activity under the 2003 Plan for the fiscal years ended March 31, 2019 and 2018 are as follows:~~

	~~Options Outstanding~~	~~Weighted-Average Exercise Price per Share~~	~~Weighted-Average Remaining Contractual Term in Years~~	~~Aggregate Intrinsic Value~~ ~~(in thousands)~~
~~Options outstanding as of April 1, 2018~~	`1,813,750`	`$0.21`	`3.00`	`$-`
~~Granted~~	`-`	`-`
~~Exercised~~	`-`	`-`
~~Cancelled or forfeited~~	`(25,000)`	`$0.42`
~~Options outstanding as of March 31, 2019~~	`1,788,750`	`$0.20`	`2.03`	`$20`
~~Options exercisable as of March 31, 2019~~	`1,788,750`	`$0.20`	`2.03`	`$20`
~~Options vested or expected to vest as of March 31, 2019~~	`1,788,750`	`$0.20`	`2.03`	`$20`

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the closing price of the common stock on March 31, 2019 of $0.09 and the exercise price of each in-the-money option) that would have been received by the option holders had all option holders exercised their options on March 31, 2019. There were no stock options exercised under the 2003 Plan for the fiscal years ended March 31, 2019 and 2018. As of March 31, 2019 and 2017, there were no shares remaining to be granted under the 2003 Plan.

For the fiscal years ended March 31, 2019 and 2018, we recorded stock-based compensation expense for options pursuant to the 2003 Plan in the amount of $0 and approximately $0, respectively. As of March 31, 2019, we had $0 of unrecognized compensation cost related to stock options.

On August 14, 2017, our board of directors approved and adopted the 2017 Non-Qualified Equity Incentive Plan (the “2017 Plan”), which authorized the grant of non-qualified stock options exercisable into a maximum of 7,000,000 shares of our common stock. Under the terms of the 2017 Plan, the exercise price of stock options issued under the 2017 Plan must be equal to the fair market value of the common stock at the date of grant. Options granted expire ten years from the grant date. From August 17, 2017 through December 13, 2018, the board of directors approved the grant of stock options to certain directors, employees and a consultant which were immediately vested and exercisable into a total of 6,550,000 shares of our common stock. In determining the fair value of the 2017 Stock Options, we utilized the Black-Scholes pricing model utilizing the following assumptions:

	~~August 17, 2017 Option Grants~~	~~August 16, 2018 Option Grants~~	~~December 13, 2018 Option Grants~~
~~Total shares granted~~	`5,600,000`	`750,000`	`200,000`
~~Option exercise price per share~~	`$0.06`	`$0.040`	`$0.060`
~~Grant date fair market value per share~~	`$0.06`	`$0.046`	`$0.059`
~~Expected term of option in years~~	`10.0`	`2.00`	`1.00`
~~Expected volatility~~	`100%`	`100%`	`100%`
~~Expected dividend rate~~	`0.00%`	`0.00%`	`0.00%`
~~Risk free interest rate~~	`1.00%`	`0.00%`	`2.69%`

~~Accordingly, we recorded stock-based compensation of approximately $23,000 and $300,000 during the fiscal year ended March 31, 2019 and 2018, respectively.~~

14.~~Benefit Plans and Employment Agreements of Executive Officers~~

We established the AdvanSource 401(k) Retirement Savings Plan under Section 401(k) of the Internal Revenue Code. All full-time employees who are twenty-one years of age are eligible to participate on the beginning of the first month after 30 days of employment. Our contributions are discretionary. We made matching contributions of approximately $8,000 and $8,000 during the fiscal years ended March 31, 2019 and 2018, respectively.

On August 7, 2006, we appointed Michael F. Adams as our Chief Executive Officer and President. Mr. Adams has been one of our directors since May 1999 and became our Vice President of Regulatory Affairs and Business Development on April 1, 2006. We entered into an employment agreement with Mr. Adams (the “Adams Agreement”) on September 13, 2006. Under the terms of the Adams Agreement, we agreed to employ Mr. Adams for two years at an annual base salary of $290,000, as amended, which is subject to annual review by our Board of Directors. During the Employment Period, as defined in the Adams Agreement, Mr. Adams may receive an annual bonus to be determined at the sole discretion of the Compensation Committee of the Board of Directors. We did not renew the

F-17

~~ADVANSOURCE BIOMATERIALS CORPORATION~~

~~NOTES TO FINANCIAL STATEMENTS~~

Adams Agreement at the end of the initial term, however, the Adams agreement provides that lacking any express agreement between the parties at the end of the Employment Period, the Adams Agreement shall be deemed to continue on a month-to-month basis. As a result, the Adams Agreement currently continues on a month-to-month basis and is subject to all of the terms and conditions of the Adams Agreement. Either party has the right to terminate the Adams Agreement upon 30 days written notice. Mr. Adams is eligible for participation in all executive benefit programs, including health insurance, life insurance, and stock-based compensation. If Mr. Adams’ employment is terminated without cause, we are obligated to (i) pay Mr. Adams an amount equal to two times his annual base salary upon such termination, (ii) provide Mr. Adams with health insurance benefits for a period of 18 months after such termination, of which the premiums for the first six months after such termination shall be paid by us, and (iii) provide Mr. Adams life insurance benefits for one year after such termination at our expense.

During the fiscal year ended March 31, 2010, the Compensation Committee of the Board of Directors approved an increase in Mr. Adams’ annual base salary to $320,000. There was no bonus awarded to Mr. Adams during the fiscal years ended March 31, 2019 and 2018.

15.~~Subsequent Events~~

We evaluated all events or transactions that occurred after the balance sheet date through the date when we filed these financial statements and we determined that we did not have any other material recognizable subsequent events.

F-18

S ~~IGNATURES~~

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: ~~August~~September 22, ~~2019~~ 2021	~~AdvanSource Biomaterials~~EKIMAS Corporation
	~~By:~~
	By:	/s/ Michael F. Adams
		Michael F. Adams Chief Executive Officer ~~and President~~

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Dated: ~~August~~September 22, ~~2019~~ 2021		/s/ Michael F. Adams
		Michael F. Adams Chief Executive Officer ~~and President~~ (Principal Executive Officer)
~~Dated: August 22, 2019~~		~~/s/~~W~~illiam J. O’Neill~~
~~Dated: August 22, 2019~~		~~William J. O’Neill, Jr.~~ ~~Chairman~~
~~Dated: August 22, 2019~~		~~/s/ Michael L. Barretti~~
~~Dated: August 22, 2019~~		~~Michael L. Barretti~~ ~~Director~~
~~Dated: August 22, 2019~~		~~/s/ Mark Tauscher~~
~~Dated: August 22, 2019~~		~~Mark Tauscher~~ ~~Director~~

(Mark One)
x ☒		ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
		SECURITIES EXCHANGE ACT OF 1934
~~For the fiscal year ended March 31, 2019~~

~~Issuer’s telephone number~~~~(978) 657-0075~~
~~Securities registered under Section 12(b) of the Exchange Act:~~
Common Stock, $.001 par value per share			None
Title of each class	~~None~~	Name of each exchange on which registered

q☐ Large Accelerated Filer		q☐ Accelerated Filer
☐ qNon-accelerated Filer		x☒ Smaller reporting company

~~PART I~~
~~Item 1.~~	~~Business~~	3
~~Item 1A.~~	~~Risk Factors~~	7
~~Item 1B.~~	~~Unresolved Staff Comments~~	16
~~Item 2.~~	~~Properties~~	16
~~Item 3.~~	~~Legal Proceedings~~	16
~~Item 4.~~	~~Mine Safety Disclosures~~	16
~~PART II~~
~~Item 5.~~	~~Market Information for Registrant’s Common Equity, Related Stockholder Matters~~ ~~and Issuer Purchases of Equity Securities~~	16
~~Item 6.~~	~~Selected Financial Data~~	18
~~Item 7.~~	~~Management’s Discussion and Analysis of Financial Condition and Results of Operations~~	18
~~Item 7A.~~	~~Quantitative and Qualitative Disclosures About Market Risk.~~	22
~~Item 8.~~	~~Financial Statements and Supplementary Data~~	22
~~Item 9.~~	~~Changes In and Disagreements With Accountants on Accounting and Financial Disclosure~~	22
~~Item 9A.~~	~~Controls and Procedures~~	22
~~Item 9B.~~	~~Other Information~~	23
~~PART III~~
~~Item 10.~~	~~Directors, Executive Officers and Corporate Governance~~	24
~~Item 11.~~	~~Executive Compensation~~	27
~~Item 12.~~	~~Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters~~	30
~~Item 13.~~	~~Certain Relationships and Related Transactions, and Director Independence~~	31
~~Item 14.~~	~~Principal Accounting Fees and Services~~	32
~~PART IV~~

~~Item 15.~~	~~Exhibits, Financial Statement Schedules~~	33

	~~Fiscal Year 2019~~
	~~High~~	~~Low~~
~~4th Quarter~~	`$0.11`	`$0.05`
~~3rd Quarter~~	`0.09`	`0.05`
~~2nd Quarter~~	`0.10`	`0.04`
~~1st Quarter~~	`0.08`	`0.03`

	~~Fiscal Year 2018~~
	~~High~~	~~Low~~
~~4th Quarter~~	`$0.060`	`0.035`
~~3rd Quarter~~	`0.010`	`0.035`
~~2nd Quarter~~	`0.010`	`0.046`
~~1st Quarter~~	`0.060`	`0.038`

☐		TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
		SECURITIES EXCHANGE ACT OF 1934

~~Plan Category~~	~~Number of securities to be issued upon exercise of outstanding options, warrants and rights~~		~~Weighted average exercise price of outstanding options, warrants and rights~~	~~Number of securities remaining available for future issuance~~
~~Equity compensation plans approved by stockholders~~	`1,788,750`	~~(1)~~	`$0.024`	`m-`
~~Equity compensation plans approved by board of directors~~	`6,550,000`	~~(2)~~	`0.058`	`450,000`
	`8,338,750`			`450,000`

		~~Page~~
~~Report of RBSM LLP, Independent Registered Public Accounting Firm~~		~~F-1~~
~~Balance Sheets at March 31, 2019 and 2018~~		~~F-2~~
~~Statements of Operations for the years ended March 31, 2019 and 2018~~		~~F-3~~
~~Statements of Stockholders’ Deficit for the years ended March 31, 2019 and 2018~~		~~F-4~~
~~Statements of Cash Flows for the years ended March 31, 2019 and 2018~~		~~F-5~~
~~Notes to Financial Statements~~		~~F-6~~

Name	Age	Position
Michael F. Adams	62 65	Director ~~President~~ and Chief Executive Officer
~~Khristine L. Carroll~~

Named Executive Officer	Fiscal Year	Salary ($)		Bonus ($)		Option Awards ($)		All Other Compensation ($)			Total ($)
Michael F. Adams President & Chief Executive Officer	2021	$	-	$	-	$	-	$	76,000	(1)	$	76,000
	2020		353,000		151,000		-		670,000	(1)		1,174,000

Former Named Executive Officer
Khristine L. Carroll Executive Vice President – Commercial Operations	2021	$	-	$	-	$	-	$	-		$
	2020		217,000		75,000		-		20,000	(2)		312,000

	(1)	Effective February 1, 2020, Mr. Adams was engaged as our chief executive officer on a consultative basis. All other compensation represents the consulting fees earned by Mr. Adams during the fiscal year ended March 31, 2021.
	(1)	All other compensation of Mr. Adams is composed of approximately i) $18,000 for premiums paid by us for medical and dental insurance, and ii) $2,000 in premiums paid by us for disability and life insurance during the fiscal year ended March 31, 2020. All other compensation also included a $650,000 change in control payment resulting from the Asset Sale having a closing date of January 31, 2020. The change in control payment was made in February 2020.
	(2)	All other compensation of Ms. Carroll is composed of approximately i) $17,000 for premiums paid by us for medical and dental insurance, ii) $2,000 in premiums paid by us for disability and life insurance and iii) $3,000 for 401k matching contributions during the fiscal year ended March 31, 2020.

~~Named Executive Officer~~	~~Salary ($)~~		~~COBRA Premiums (2)~~	~~Life Insurance Premiums (3)~~	~~Other~~
~~Michael F. Adams~~	`$640,000`	~~(1)~~	`$-`	`$1,000`	`$-`

~~Named Executive Officers~~ None.	~~Number of Securities Underlying Unexercised Options Exercisable~~	~~Number of Securities Underlying Unexercised Options Unexercisable~~	~~Option Exercise Price~~	~~Option Expiration Date~~
~~Michael F. Adams~~ ~~President and Chief Executive Officer~~	`200,000`	`-`	`$0.31`	~~8/5/2019~~
	`250,000`	`-`	`$0.29`	~~7/1/2020~~
	`300,000`	`-`	`$0.06`	~~9/4/2023~~
	`2,500,000`	`-`	`$0.06`	~~8/17/2027~~
	`3,250,000`	`-`

~~Khristine L. Carroll~~ ~~Executive Vice President – Commercial Operations~~	`150,000`	`-`	`$0.27`	~~10/14/2019~~
	`100,000`	`-`	`$0.06`	~~9/4/2023~~
	`500,000`	`-`	`$0.06`	~~8/17/2027~~
	`750,000`	`-`	`$0.04`	~~8/16/2028~~
	`1,500,000`	`-`

Name and Address of Beneficial Owner (1)	Amount and Nature of Beneficial Ownership		Percentage of Class (2)
Michael F. Adams		3,255,317		11.5	%
Current executive officer and director as a group (1 person)		3,255,317		11.5	%

~~Name and Address~~	(1)	Unless otherwise indicated, the business address of ~~Beneficial Owner (1)~~	~~Amount and Nature of Beneficial Ownership~~	~~Percentage of Class (2)~~ the stockholders named in the table above is EKIMAS Corporation, Inc. 95 Washington Street, Canton, MA 02021.
~~Michael F. Adams (3)~~		`3,859,934`	`13.6%`
~~Khristine L. Carroll (4)~~	(2)	`1,785,309`	`6.3%`
~~Michael L. Barretti (5)~~		`875,115`	`3.1%`
~~William J. O'Neill, Jr. (6)~~		`875,000`	`3.1%`
~~Mark R. Tauscher (7)~~		`550,000`	`1.9%`
~~Current executive officer and directors~~Based on 28,262,371 outstanding shares as ~~a group (5 persons) (8)~~		`7,945,358`	`28.0%`
			of September 22, 2021.

Exhibit Number:	Exhibit Title:
10.37* 31.1*	~~2017 Non-Qualified Incentive Equity Plan dated August 14, 2017 as previously file on Current Report on Form 8-K on August 22, 2017.~~
31.1**		Certification of Principal Executive Officer pursuant to Section 302 Sarbanes-Oxley Act of 2002
31.2**	Certification of Principal Financial and Accounting Officer pursuant to Section 302 Sarbanes-Oxley Act of 2002
32.1**	Certification of Principal Executive, Financial and Accounting Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS**		~~XBRL Instance Document.~~
101.SCH**		~~XBRL Taxonomy Extension Schema Document.~~
101.CAL**		~~XBRL Taxonomy Extension Calculation Linkbase Document.~~
101.LAB**		~~XBRL Taxonomy Extension Label Linkbase Document.~~
101.PRE**		~~XBRL Taxonomy Extension Presentation Linkbase Document.~~
101.DEF**		~~XBRL Taxonomy Extension Definition Linkbase Document.~~

~~Directors~~	~~Audit~~	~~Compensation~~	~~Nominating/Corporate Governance~~
~~William J. O'Neill, Jr.~~	X
~~Michael L. Barretti~~		X
~~Mark R. Tauscher~~			X

~~Name~~Item 14. ~~(in thousands~~)	Principal Accounting Fees ~~Earned or Paid in Cash~~and Services	~~Option Awards (1)~~	~~All Other Compensation~~	~~Total~~
~~William J. O’Neill, Jr.~~	`$5`	`$-`	`$-`	`$5`
~~Michael L. Barretti~~	`4`	`-`	`-`	`4`
~~Mark R. Tauscher~~	`4`	`-`	`-`	`4`

Fee Category	Years Ended March 31,
(in thousands)	2019	2018
Audit fees	`$46`	`$43`
Other audit related fees	`-`	`-`
Tax fees	`3`	`3`
Total fees	`$49`	`$46`

Fee Category	Years Ended March 31,
(in thousands)	2021		2020
Audit fees	$	20	$	38
Other audit related fees		-		-
Tax fees		-		3
Total fees	$	20	$	49