UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One)

[X]QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

~~[X]~~

~~QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934~~

For the quarterly period ended ~~March 31,~~June 30, 2021

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

~~[ ]~~

~~TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT~~

For the transition period from __________ to ___________

Commission file number: 333-239640

BIO LAB NATURALS, INC.

(Exact name of registrant as specified in its charter)

Delaware		84-2288662
(State of Incorporation)		(IRS Employer ID Number)

7400 E. Crestline Circle, Suite 130, Greenwood Village, CO80111

(Address of principal executive offices)

(720) 273-0433

(Registrant’s Telephone number)

(Former Address and phone of principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
N/A	N/A	N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to the filing requirements for the past 90 days.

~~Yes~~

Yes[X]

No[ ]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 for Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

~~Yes~~

Yes[X]

No[ ]

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

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

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 to Section 13(a) of the Exchange Act. [ ]

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

~~Yes~~

Yes[ ]

~~[X]~~

No[X]

Indicate the number of share outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of ~~May 5,~~July 30, 2021, there were ~~10,753,504~~10,803,504 shares of the registrant’s common stock, $0.0001 par value, issued and outstanding, not including shares reserved for conversion of notes.

TABLE OF CONTENTS

Page
			~~Page~~
	PART 1I – FINANCIAL INFORMATION

Item 11..	Financial Statements (Unaudited)	2

	Consolidated Balance Sheets– ~~March 31,~~June 30, 2021 and December 31, ~~2020~~2020	2

	Consolidated Statements of Operations– Three and Six months ended ~~March 31,~~June 30, 2021 and ~~2020~~2020	3

	Consolidated Statement of Changes in Stockholders’ Equity– ~~Three~~Six months ended ~~March 31, 2021~~June 30, 2021	4 5

	Consolidated Statements of Cash Flows– ~~Three~~Six months ended ~~March 31,~~June 30, 2021 and ~~2020~~2020	5 6

	Notes to the Financial Statements	6 7


Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1214

Item 3.	Quantitative and Qualitative Disclosures About Market Risk – Not Applicable	1416

Item 4.	Controls and Procedures	1416

	PART II- OTHER INFORMATION

Item 1.	Legal Proceedings – Not Applicable	1517

Item 1A.	Risk Factors	1517

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds – Not Applicable	1517

Item 3.	Defaults Upon Senior Securities – Not Applicable	1517

Item 4.	Mine Safety Disclosures – Not Applicable	1517

Item 5.	Other Information – Not Applicable	1517

Item 6.Exhibits	~~Exhibits~~	1518

	Signatures	1619

~~Table of Contents~~

Table of Contents

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

Bio Lab Naturals, Inc. and Subsidiary

Bio Lab Naturals, Inc. and Subsidiary
Consolidated Balance Sheets

March 31, December 31,
Assets 2021 2020
Current assets (Unaudited) (Audited)
Cash $ 34,741 $ 69,065
Due from other 7,275 —
Deposits 108,150 10,000
    Total current assets 150,166 79,065
    Equipment
Equipment, net of accumulated depreciation, $9,802 and
    $35,291, respectively 76,166 167,672

Total assets $ 226,332 $ 246,737

Liabilities and Stockholders' Equity
    Current liabilities
Accounts payable and accrued liabilities $ 5,759 $ 17,126
Deposit 65,000 —
Note payable 35,000 —
Note payable, related party 30,000 —
    Total current liabilities 135,759 17,126
    Total liabilities 135,759 17,126

Commitments and Contingencies —   —

Stockholders' Equity
Preferred shares, $0.0001 par value, 5,000,000 shares authorized;
    Class A Convertible, deemed par value $0.04 per share; 500,000
      shares issued and outstanding at March 31, 2021 and
      December 31, 2020 50 50
Common shares, $0.0001 par value, 200,000,000 shares authorized;
    10,753,504 shares issued and outstanding at March 31, 2021
      and December 31, 2020 1,075 1,075
Additional paid in capital 35,672,338 35,672,338
Retained (deficit) (35,582,890 ) (35,443,852 )
    Total stockholders' equity 90,573 229,611

Total liabilities and stockholders' equity $ 226,332 $ 246,737

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

Consolidated Balance Sheets

	June 30,			December 31,
Assets	2021			2020
Current assets	(Unaudited)			(Audited)
Cash	$	35,089		$	69,065
Due from other		4,850			0—
Net property on operating lease		112,895			0—
Deposits		0—			10,000
Total current assets		152,834			79,065
Equipment
Equipment, net of accumulated depreciation, $13,563 and
$35,291, respectively		72,405			167,672

Total assets	$	225,239		$	246,737

Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued liabilities	$	75,196		$	17,126
Deferred revenue		9,000			0—
Note payable		35,000			0—
Note payable, related party		30,000			0—
Total current liabilities		149,196			17,126
Total liabilities		149,196			17,126

Commitments and Contingencies		0—			0—

Stockholders' Equity
Preferred shares, $0.0001 par value, 5,000,000 shares authorized;
Class A Convertible, deemed par value $0.04 per share; 500,000
shares issued and outstanding at June 30, 2021 and
December 31, 2020		50			50
Common shares, $0.0001 par value, 200,000,000 shares authorized;
10,803,504 and 10,753,504 shares issued and outstanding,
respectively at June 30, 2021 and December 31, 2020		1,080			1,075
Additional paid in capital		35,749,833			35,672,338
Retained (deficit)		(35,674,920	)		(35,443,852	)
Total stockholders' equity		76,043			229,611

Total liabilities and stockholders' equity	$	225,239		$	246,737

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

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Bio Lab Naturals, Inc. and Subsidiary

Consolidated Statements of Operations

(Unaudited)

	Three Months Ended June 30,
	2021			2020
Revenues
Sales	$	125,870		$	0—
Rentals		29,000			0—
Total revenues		154,870			0—

Cost of sales
Purchases		113,335			0—
Cost of sales - other		4,916			4,664
Depreciation - rental		2,895			0—
Depreciation		3,760			8,449
Total cost of sales		124,906			13,113

Gross profit		29,964			(13,113	)

Operating expenses
Consulting fees, related party		92,500			12,500
General and administrative expenses - other		4,870			6,244
Professional fees		23,008			16,237
Total operating expenses		120,378			34,981

Loss from operations		(90,414	)		(48,094	)

Other (expense)
Interest expense, related party		(745	)		0—
Interest expense		(869	)		(251	)
Total other (expense)		(1,614	)		(251	)

Loss before income taxes		(92,028	)		(48,345	)

Income taxes		0—			0—

Net loss	$	(92,028	)	$	(48,345	)

Net loss per common share - basic and diluted		0*			0*

Weighted average number of common shares		10,778,229			8,936,186

* Net loss is less than $0.01 per share.

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

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Bio Lab Naturals, Inc. and Subsidiary

Consolidated Statements of Operations

(Unaudited)

	Six Months Ended June 30,
	2021			2020
Revenues
Sales	$	125,870		$	0—
Rental		29,000			0—
Total revenues		154,870			0—

Cost of sales
Purchases		113,335			0—
Cost of sales - other		14,029			11,058
Depreciation - rental		2,895			0—
Depreciation		7,520			16,898
Total cost of sales		137,779			27,956

Gross profit		17,091			(27,956	)

Operating expenses
Consulting fees, related party		97,500			39,500
Consulting fees		0—			10,500
General and administrative expenses - other		11,248			16,379
Professional fees		64,198			57,015
Total operating expenses		172,946			123,394

Loss from operations		(155,855	)		(151,350	)

Other (expense)
Interest expense, related party		(1,000	)		0—
Interest expense		(1,167	)		(251	)
(Loss) on disposal of assets		(73,046	)		0—
Total other (expense)		(75,213	)		(251	)

Loss before income taxes		(231,068	)		(151,601	)

Income taxes		0—			0—

Net loss	$	(231,068	)	$	(151,601	)

Net loss per common share - basic and diluted	$	(0.02	)	$	(0.02	)

Weighted average number of common shares		10,765,935			8,706,846

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

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Bio Lab Naturals, Inc. and Subsidiary

Consolidated Statement of Changes in Stockholders' Equity

(Unaudited)

	Class A Convertible Preferred $0.0001 Par Value				Common Shares $0.0001 Par Value				Additional Paid-in		Accumulated			Total Stockholders'
	Shares		Amount		Shares		Amount		Capital		(Deficit)			Equity
BALANCES, December 31, 2020		500,000	$	50		10,753,504	$	1,075	$	35,672,338	$	(35,443,852	)	$	229,611
Issuance of shares for services		—		—		50,000		5		77,495		—			77,500
Net loss for the period		—		—		—		—		—		(231,068	)		(231,068	)
BALANCES, June 30, 2021		500,000	$	50		10,803,504	$	1,080	$	35,749,833	$	(35,674,920	)	$	76,043

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

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Bio Lab Naturals, Inc. and Subsidiary

Consolidated Statements of Cash Flows

(Unaudited)

	Six Months Ended June 30,
	2021			2020
OPERATING ACTIVITIES
Net loss	$	(231,068	)	$	(151,601	)
Adjustment to reconcile net loss to net cash flows used
in operating activities
Depreciation		7,520			16,898
Issuance of common shares for services		77,500			12,500
Loss on disposition of asset		73,046			0—
Changes in:
Accounts receivable - net		0—			13,000
Deposits		10,000			(15,000	)
Accounts payable and accrued liabilities		58,070			307
Net cash (used in) operating activities		(2,037	)		(123,896	)

INVESTING ACTIVITIES
Acquisition of property on operating lease		(115,789	)		0—
Proceeds from disposition of asset		9,850			0—
Net cash provided by investing activities		(105,939	)		0—

FINANCING ACTIVITIES
Funds from sales of common shares		0—			262,000
Funds from over subscription		0—			1,125
Funds from deferred revenue		9,000			0—
Funds from deposits		0—			6,250
Funds from loan, net of repayment		35,000			0—
Funds from loan related party, net of repayment		30,000			10,930
Net cash provided by financing activities		74,000			280,305

Net (decrease) in cash		(33,976	)		156,409
Cash at beginning of period		69,065			69,527
Cash at end of period	$	35,089		$	225,936

Supplemental Schedule of Cash Flow Information:
Interest paid	$	2,167		$	0—
Income taxes paid	$	0—		$	0—

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

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Bio Lab Naturals, Inc. and Subsidiary
Consolidated Statements of Operations
(Unaudited)

Three Months Ended March 31,
2021 2020
Sales $ —   $ —

Cost of sales
Cost of sales - other 9,113 6,394
Depreciation 3,760 8,449
    Total cost of sales 12,873 14,843

Gross profit (12,873 ) (14,843 )

Operating expenses
Consulting fees, related party 5,000 27,000
Consulting fees —   10,500
General and administrative expenses - other 6,378 10,134
Professional fees 41,189 40,778
    Total operating expenses 52,567 88,412

Loss from operations (65,440 ) (103,255 )

Other (expense)
Interest expense (552 ) —
(Loss) on disposal of assets (73,046 ) —
    Total other (expense) (73,598 ) —

Loss before income taxes (139,038 ) (103,255 )

Income taxes —   —

Net loss $ (139,038 ) $ (103,255 )

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

Weighted average number of common shares 10,753,504 9,308,566

* Net loss is less than $0.01 per share.

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

~~Table of Contents~~

Bio Lab Naturals, Inc. and Subsidiary
Consolidated Statement of Changes in Stockholders' Equity
(Unaudited)

Class A Convertible Preferred Common Shares
$0.0001 Par Value $0.0001 Par Value Additional Paid-in Accumulated Total Stockholders'
Shares Amount Shares Amount Capital (Deficit) Equity
BALANCES, December 31, 2020 500,000 $ 50 10,753,504 $ 1,075 $ 35,672,338 $ (35,443,852 ) $ 229,611
Net loss for the period — — — — — (139,038 ) (139,038 )
BALANCES, March 31, 2021 500,000 $ 50 10,753,504 $ 1,075 $ 35,672,338 $ (35,582,890 ) $ 90,573

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

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Bio Lab Naturals, Inc. and Subsidiary
Consolidated Statements of Cash Flows
(Unaudited)

Three Months Ended March 31,
2021 2020
OPERATING ACTIVITIES
Net loss $ (139,038 ) $ (103,255 )
Adjustment to reconcile net loss to net cash flows used
in operating activities
Depreciation 3,760 8,449
Loss on disposition of asset 73,046 —
Changes in:
Accounts receivable - net —   13,000
Accounts payable and accrued liabilities (11,367 ) 21,929
Net cash (used in) operating activities (73,599 ) (59,877 )

INVESTING ACTIVITIES —   —
Deposits (98,150 ) (10,000 )
Proceeds from disposition of asset 7,425 —
Net cash (used in) investing activities (90,725 ) (10,000 )

FINANCING ACTIVITIES
Deposit 65,000 —
Funding from loan 35,000 —
Funds from related party, net of repayment 30,000 10,930
Net cash provided by financing activities 130,000 10,930

Net (decrease) in cash (34,324 ) (58,947 )
Cash at beginning of period 69,065 69,527
Cash at end of period $ 34,741 $ 10,580

Supplemental Schedule of Cash Flow Information:
Interest paid $ —   $ —
Income taxes paid $ —   $ —

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

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BIO LAB NATURALS, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

~~March 31,~~June 30, 2021

Note 1 – Organization and History

Vyta Corp (the “Company”) was incorporated in Nevada in June 1996. On August 20, 2010, it changed its state of incorporation to Delaware and on November 5, 2010 it changed its name to Bio Lab Naturals, Inc. On August 20, 2010, the Company executed a redomicile merger with its wholly owned subsidiary Vyta Corp (Delaware), as result of the merger the Company’s corporate domicile moved from Nevada to Delaware.

Prior to 2011, the Company was involved in various business activities and since then the Company has been seeking a business opportunity.

Effective December 31, 2019, the Company entered into a Reorganization Agreement with Prime Time Live, Inc., a Colorado corporation (“PTL”), whereby PTL merged with a newly formed wholly owned subsidiary of the Company, and the subsidiary being the survivor in exchange for the Company issuing one share of its common stock for each share of PTL’s 5,500,000 issued and outstanding shares of common stock.

Note 2 – Summary of Significant Accounting Policies

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Bio Lab Naturals, Inc. and its wholly owned subsidiary. All intercompany balances have been eliminated during consolidation.

Use of Estimates in the Preparation of Consolidated Financial Statements

The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant estimates include the fair value of assets and liabilities, income taxes and the valuation allowances related to accounts receivable, deferred tax assets and contingencies.

Cash and Cash Equivalents

The Company considers all liquid investments purchased with an initial maturity of three months or less to be cash equivalents. Cash and cash equivalents include demand deposits carried at cost which approximates fair value. The Company maintains its cash in institutions insured by the Federal Deposit Insurance Corporation (“FDIC”).

Concentration of Credit Risk

The Company offers its services to a small number of clients. This risk of non-payment by these clients is considered minimal and the Company does not generally obtain collateral for sales. The Company continually monitors the credit standing of its clients.

Accounts Receivable

The Company records accounts receivable at net realizable value. This value includes an appropriate allowance for uncollectible accounts to reflect any loss anticipated on the accounts receivable balances and is charged to other income (expense) in the statements of operations. Management calculates this allowance based on its history of write-offs, the level of past-due accounts based on the contractual terms of the receivables, and the Company’s relationships with, and the economic status of, its clients. At ~~March 31,~~June 30, 2021 and December 31, 2020, there are no allowance for uncollectible accounts.

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BIO LAB NATURALS, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

~~March 31,~~June 30, 2021

Leases

Capital Leases

~~Equipment~~The Company follows the provisions of Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), and incremental direct costs directly related to lease origination activity are expensed.

New lease transactions can be structured as direct financing leases that are non-cancelable "net" leases, contain "hell-or-high-water" provisions under which the lessee must make all lease payments regardless of any defects in the property, and which require the lessee to maintain, service and insure the property against casualty loss and pay all property, sales and other taxes. The re-lease of property that has come off lease may be accounted for as a sales-type lease or as an operating lease, depending on the terms of the re-lease. Leased property that comes off lease and is re-marketed through a sale to the lessee or a third party is accounted for as sale of leased property.

For leases that qualify as direct financing leases, the aggregate lease payments receivable and estimated residual value, if any, are recorded net of unearned income as net investment in leases. The unearned income is recognized as direct finance income on an internal rate of return method calculated to achieve a level yield on the Company’s investment over the lease term. There are no costs or expenses related to direct financing leases since lease income is recorded on a net basis.

For leases that qualify as sales-type leases, the Company recognizes profit or loss at lease inception to the extent the fair value of the property leased differs from the Company's carrying value. The difference between the discounted value of the aggregate lease payments receivable and the property cost, less the discounted value of the residual, if any, and any initial direct costs is recorded as sales-type lease income. For balance sheet purposes, the aggregate lease payments receivable and estimated residual value, if any, are recorded net of unearned income as net investment in leases. Unearned income is recognized as direct finance income over the lease term on an internal rate of return method.

The residual value is an estimate for accounting purposes of the fair value of the lease property at lease termination. The estimates are reviewed periodically to ensure reasonableness, however, the amounts the Company may ultimately realize could differ from the estimated amounts.

The Company has no leases that qualify as capital leases at and during the three and six months ended June 30, 2021.

Operating Leases

Lease contracts which do not meet the criteria of capital leases are accounted for as operating leases. Property on operating leases is recorded at the lower of cost or fair value and depreciated on a straight-line basis over the estimated useful life of the property. Rental income is recorded on a straight-line basis over the lease term. See Note 5 – Leases.

Equipment

Equipment is recorded at cost and consists of screen video and related equipment. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. When equipment is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation of equipment is over the estimated useful life of five to ten years using the straight-line method for consolidated financial statement purposes. At ~~March 31,~~June 30, 2021 and December 31, 2020, there were capitalized costs of ~~$76,166~~$72,405 and $ $167,672, respectively. Depreciation expense for the three months ended ~~March 31,~~June 30, 2021 and 2020 was $3,760 and $8,449, respectively and for the six months ended June 30, 2021 and 2020 was $7,520 and $16,898, respectively.

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BIO LAB NATURALS, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

June 30, 2021

During the ~~three~~six months ended ~~March 31,~~June 30, 2021, the Company sold a used screen for $14,700 and as a result reported a loss on the disposition of ~~its~~ asset in the amount of $73,046.

Revenue recognition

The Company follows the provisions of ~~Accounting Standards Update (“ASU”)~~ASU No. 2014 - 09, Revenue from Contracts with Customers (Topic 606), using the full retrospective transition method. The Company’s adoption of ASU 2014 - 09 did not have a material impact on the amount and timing of revenue recognized in its consolidated financial statements.

Under ASU 2014 - 09, the Company recognizes revenue when control of the promised services is transferred to clients, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services.

The Company derives its revenues from the rendering of entertainment rental services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its contracts:

Identify the contract with a client;

Identify the performance obligations in the contract;

Determine the transaction price;

Allocate the transaction price to performance obligations in the contract; and

Recognize revenue as the performance obligation is satisfied.

Impairment of Long-Lived Assets

In accordance with authoritative guidance on accounting for the impairment or disposal of long-lived assets, as set forth in Topic 360 of the ASC, the Company assesses the recoverability of the carrying value of its long-lived assets when events occur that indicate an impairment in value may exist. An impairment loss is indicated if the sum of the expected undiscounted future net cash flows is less than the carrying amount of the assets. If this occurs, an impairment loss is recognized for the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets.

Other Comprehensive Loss

The Company has no material components of other comprehensive loss and accordingly, net loss is equal to comprehensive loss for the period.

Income Taxes

The Company uses the liability method of accounting for income taxes under which deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the accounting bases and the tax bases of the Company’s assets and liabilities. The deferred tax assets and liabilities are

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~~BIO LAB NATURALS, INC. AND SUBSIDIARY~~

~~Notes to Consolidated Financial Statements~~

~~March 31, 2021~~

computed using enacted tax rates in effect for the year in which the temporary differences are expected to reverse.

The Company's deferred income taxes include certain future tax benefits. The Company records a valuation allowance against any portion of those deferred income tax assets when it believes, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred income tax asset will not be realized.

The Company has adopted ASC guidance regarding accounting for uncertainty in income taxes. This guidance clarifies the accounting for income taxes by prescribing the minimum recognition threshold an

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BIO LAB NATURALS, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

June 30, 2021

income tax position is required to meet before being recognized in the consolidated financial statements and applies to all income tax positions. Each income tax position is assessed using a two-step process. A determination is first made as to whether it is more likely than not that the income tax position will be sustained, based upon technical merits, upon examination by the taxing authorities. If the income tax position is expected to meet the more likely than not criteria, the benefit recorded in the consolidated financial statements equals the largest amount that is greater than 50% likely to be realized upon its ultimate settlement. At ~~March 31,~~June 30, 2021 and December 31, 2020, there were no uncertain tax positions that required accrual.

Goodwill

In accordance with generally accepted accounting principles, goodwill cannot be amortized, however, it must be tested annually for impairment. This impairment test is calculated at the reporting unit level. The goodwill impairment test has two steps. The first identifies potential impairments by comparing the fair value of a reporting unit with its book value, including goodwill. If the fair value of the reporting unit exceeds the carrying amount, goodwill is not impaired and the second step is not necessary. If the carrying value exceeds the fair value, the second step calculates the possible impairment loss by comparing the implied fair value of goodwill with the carrying amount. If the implied goodwill is less than the carrying amount, a write-down is recorded. Management tests goodwill each year for impairment, or when facts or circumstances indicate impairment has occurred. See Note 4 – Fair Value Measurements.

Loss per Share

Basic net loss per common share of stock is calculated by dividing net loss available to common stockholders by the weighted-average number of common shares outstanding during each period. Diluted net loss per common share is calculated by dividing net loss by the weighted-average number of common shares outstanding, including the effect of other dilutive securities. The Company’s had no potentially dilutive securities issued as of and during the three and six months ended ~~March 31,~~June 30, 2021 and 2020.

Equity Based Payments

The Company recognizes compensation cost for equity-based awards based on estimated fair value of the award and records capitalized cost or compensation expense over the requisite service period.

Off-Balance Sheet Arrangements

As part of its ongoing business, the Company has not participated in transactions that generate relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities (SPEs), which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. For the period through ~~March 31,~~June 30, 2021, the Company has not been involved in any unconsolidated SPE transactions.

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~~BIO LAB NATURALS, INC. AND SUBSIDIARY~~

~~Notes to Consolidated Financial Statements~~

~~March 31, 2021~~

Subsequent Events

The Company evaluates events and transactions after the balance sheet date but before the consolidated financial statements are issued.

Note 3 – Going Concern and Managements’ Plan

The Company’s consolidated financial statements for the ~~three~~six months ended ~~March 31,~~June 30, 2021 have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. The Company reported a net loss for the three and six months ended ~~March 31,~~June 30, 2021 of ~~$139,038~~$92,028 and $231,068, respectively and an accumulated deficit of ~~$35,582,890~~$35,674,920 at ~~March 31,~~June 30, 2021.

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BIO LAB NATURALS, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

June 30, 2021

The Company’s significant operating losses raise substantial doubt about its ability to continue as a going concern within one year after the date of the issuance of these consolidated financial statements. The future success of the Company is dependent on its ability to attract additional capital and ultimately, upon its ability to develop future profitable operations. There can be no assurance that the Company will be successful in obtaining such financing, or that it will attain positive cash flow from operations. However, management believes that actions presently being taken to raise additional capital as more fully disclosed in these consolidated financial statements provides the opportunity for the Company to continue as a going concern.

Note 4 – Fair Value Measurements

The Company applies the authoritative guidance applicable to all financial assets and liabilities required to be measured and reported on a fair value basis, as well as to non-financial assets and liabilities measured at fair value on a non-recurring basis, including impairments of long-lived assets. The fair value of an asset or liability is the amount that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Observable inputs are inputs that market participants would use in valuing the asset or liability based on market data obtained from sources independent of the Company. Unobservable input are inputs that reflect the Company’s assumptions of what market participants would use in valuing the asset or liability based on the information available in the circumstances.

Financial and non-financial assets and liabilities are classified within the valuation hierarchy based upon the lowest level of input that is significant to the fair value measurement. The Company’s policy is to recognize transfers in and out of the fair value hierarchy as of the end of the reporting period in which the event or change in circumstances caused the transfer. The Company has consistently applied the valuation techniques discussed below in all periods presented. The hierarchy is organized into three levels based on the reliability of the inputs as follows:

Level 1: Quoted prices in active markets for identical assets or liabilities; or

Level 2: Quoted prices in active markets for similar assets and liabilities and inputs, quoted prices for identical or similar assets or liabilities in markets that are not active and model-derived valuations whose inputs or significant value drivers are observable; or

Level 3: Unobservable pricing inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions.

The Company did not measure the financial or non-financial assets and liabilities at ~~March 31,~~June 30, 2021 as there was no event or significant change within the valuation hierarchy during the ~~three~~six months ended ~~March 31,~~June 30, 2021.

Note 5 – Net property on operating leases

The Company’s rental income consists of the income derived from an operating lease on a semi-truck video screen unit commencing on April 5, 2021 for a period of twelve month at a total lease amount of $119,000 payable at the rate of $9,000 per month with an initial lease payment of $20,000. The lessee has the option to purchase the unit in the amount of $116,000 at the expiration of the lease. During the three and six months ended June 30, 2021, the Company recognized rental income in the amount of $29,000.

At June 30, 2021, there were net property on operating lease capitalized costs of $112,895 and during the three and six months ended June 30, 2021, the Company recognized depreciation expense of $2,895.

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BIO LAB NATURALS, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

~~March 31,~~June 30, 2021

Note 56 – Debt

Promissory Notes

On March 1, 2021, an individual loaned the Company $35,000 in exchange for an unsecured promissory note that included interest at the rate of ten percent (10%) per annum on the unpaid principal balance with any unpaid principal and interest due on or before March 1, 2022. Interest is due and payable on the 1^st of each month. At ~~March 31,~~June 30, 2021, the Company owes $30,000 in ~~principal plus $297 in accrued interest.~~principal.

Related Party

On March 1, 2021, an affiliate of an officer of the Company, loaned the Company $30,000 in exchange for an unsecured promissory note that included interest at the rate of ten percent (10%) per annum on the unpaid principal balance with any unpaid principal and interest due on or before March 1, 2022. At ~~March 31,~~June 30, 2021, the Company owes $30,000 in ~~principal plus $255 in accrued interest. See Note 8 - Related Party Transactions.~~principal.

Note 67 – Stockholders’ Equity

Preferred Shares

Class A Convertible

At ~~March 31,~~June 30, 2021 and December 31, 2020, there are a total of 500,000 shares of Class A Convertible shares of preferred stock (“Class A”) issued and outstanding. The Class A shares provide that when voting as a single class, the shares shall have the votes and the voting power at all times to be at least 60% of the voting power of the Company. Further, the holders of the Class A shares at their discretion and subject to a change of control and to the qualification by application to either NASQAD or NYSE Emerging Markets, can convert their one share of Class A into two shares of the ~~Company’s~~Company's common stock, subject to adjustment. In addition, the holder of the shares of Class A is entitled to a liquidation preference of the Company senior to all other securities of the Company.

Common Shares

The Company’s capital stock at ~~March 31,~~June 30, 2021 consists of 200,000,000 authorized shares of $0.0001 par value common stock. At ~~March 31, 2020~~June 30, 2021 and December 31, 2020, there were a total of 10,803,504 and 10,753,504 shares of common stock issued and outstanding, respectively.

During the three months ended June 30, 2021, the Company issued 50,000 shares of its common stock in exchange for services valued at $77,500 or $1.55 per share. See Note 9 – Related Party Transactions.

Note 78 – Equity Based Payments

The Company accounts for equity-based payment accruals under authoritative guidance as set forth in the Topics of the ASC. The guidance requires all equity-based payments to employees and non-employees, including grants of employee and non-employee stock options and warrants, to be recognized in the consolidated financial statements based at their fair values.

2014 Stock Incentive Plan

Effective January 15, 2020, the Company’s adopted its 2020 Stock Option and Award Plan (the “2020 Stock Incentive Plan”). Under the 2020 Stock Incentive Plan, the Board of Directors may grant options or purchase rights to purchase common stock to officers, employees, and other persons who provide services to the Company or any related company. The participants to whom awards are granted, the type of awards granted, the number of shares covered for each award, and the purchase price, conditions and other terms of each

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BIO LAB NATURALS, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

June 30, 2021

award are determined by the Board of Directors, except that the term of the options shall not exceed 10 years. A total of 2 million shares of the ~~Company’s~~Company's common stock are subject to the 2020 Stock Incentive Plan.

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~~BIO LAB NATURALS, INC. AND SUBSIDIARY~~

~~Notes to Consolidated Financial Statements~~

~~March 31, 2021~~

The shares issued for the 2020 Stock Incentive Plan may be either treasury or authorized and unissued shares. During the ~~three~~six months ended ~~March 31,~~June 30, 2021, the Company granted no options under the 2020 Stock Incentive Plan.

Note 89 – Related Party Transactions

Due to Related Parties

During the three months ended ~~March 31, 2021,~~June 30, 2020, the Company ~~borrowed $30,000 from~~repaid an affiliate of one of its officers ~~in exchange for~~$10,000 toward an unsecured convertible promissory ~~note.~~

note by issuing 80,000 shares of its common stock values at $0.125 per share and at June 30, 2020, owed $4,200 on the debt.

During the three months ended ~~March 31,~~June 30, 2020, the Company ~~borrowed $14,200 from~~repaid an affiliate of one of its officers ~~in exchange~~$200 and at June 30, 2020, the Company owed affiliates of two of its officers $0.

Equity for ~~an unsecured convertible promissory note.~~

~~Consulting Fees~~

Services

During the three months ended ~~March 31,~~June 30, 2021, the Company issued 50,000 shares of its common stock to an officer/director in exchange for services valued at $77,500.

During the three months ended June 30, 2020, the Company issued 100,000 shares of its common stock to two of its board members in exchange for services valued at $12,500.

Consulting Fees

During the three months ended June 30, 2021, the Company incurred consulting fees in the total amount of ~~$5,000~~$15,000 to an officer and an affiliate of one of its officers.

~~During the three months ended March 31, 2020, the Company incurred consulting fees in the amount of $27,000 to an officer and an affiliate of one of its officers.~~

~~Note 9 – Subsequent Events~~

~~Lease/Purchase Agreement~~

During April 2021, the Company entered into a twelve (12) month operating lease transaction pursuant with ASC 840 whereby a customer of the Company is leasing the Company’s newly refurbished trailer for a total amount of $119,000 that includes an initial payment of $20,000 plus $9,000 per month, for eleven (11) months, beginning June 1, 2021. At the expiration of the lease, the customer has the option to purchase the trailer for an amount of $116,000.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Forward-Looking Statements and Associated Risks.

This Form 10-Q contains certain statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements contained in this Form 10-Q that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as “may,” “will, “expect,” “believe,” “anticipate,” “estimate,” “continue” or comparable terminology are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors, many of which are not within our control. These factors include but are not limited to economic conditions generally and in the industries in which we may participate; competition within our chosen industry, including competition from much larger competitors; technological advances and failure to successfully develop business relationships.

Based on our financial history since inception, our auditor has expressed substantial doubt as to our ability to continue as a going concern. As reflected in the accompanying financial statements, as of ~~March 31,~~June 30, 2021, we had an accumulated deficit totaling ~~$(35,582,890)~~$(35,674,920). This raises substantial doubts about our ability to continue as a going concern.

Our plan of operations for the next 12 months is as follows:

The Company has been continuing its business and ~~as a result~~due to the lessening impact of ~~COVID-19~~COVD-19 experienced ~~no sales~~increased revenues during the three months ended ~~March 31, 2021 and 2020. However,~~June 30, 2021. Also, management has now been able to reconnect with event services business relationships ~~as a result of the impact from COVID-19 lessening~~ and the normal demand for the event services business. Therefore, the Company now expects, without any new or additional steps, additional revenues to be generated during the ~~second~~third quarter of 2021 and continued operational status.

2^nd ~~Quarter 2021~~	~~Marketing and Operations~~	~~$50,041~~

3^rd ~~Quarter 2021~~	~~Marketing and Operations~~	~~$18,559~~

4^th ~~Quarter 2021~~	~~Marketing and Operations~~	~~$70,290~~

1^st ~~Quarter 2022~~	~~Marketing and Operations~~	~~$82,694~~

3^rd Quarter 2021	Marketing and Operations	$	50,041

4^th Quarter 2021	Marketing and Operations	$	18,559

1^st Quarter 2021	Marketing and Operations	$	70,290

2^nd Quarter 2022	Marketing and Operations	$	90,523

Results of HISTORICAL Operations

For the Three Months Ended ~~March 31,~~June 30, 2021 Compared to the Three Months Ended ~~March 31,~~June 30, 2020

During the three months ended ~~March 31,~~June 30, 2021 and 2020 we recognized ~~no sales.~~total revenues of $154,870 and $0, respectively. The Company expects to generate revenues in the ~~second~~third quarter of 2021 and for the next 12 months. The increase in revenues was the result of a twelve-month operating lease as well as the sale of a LED Video screen unit.

Gross profit ~~loss~~ for the three months ended ~~March 31, 2021~~June 30, 2020 was ~~$(12,873)~~$29,964 compared to ~~$(14,843)~~gross loss of ($13,113) for ~~three months ended March 31, 2020.~~the prior period. The ~~decrease~~increase in gross profit ~~loss~~ of ~~$2,000 pertained primarily~~$43,077 was due to ~~a decrease~~an increase in cost of ~~sales.~~sales of $111,793 and the related increase in revenues of 154,870.

During the three months ended ~~March 31,~~June 30, 2021, we recognized ~~$52567~~$120,378 in operating expenses compared to ~~$88,412~~$34,981 for the ~~three months ended March 31, 2020.~~prior period. The ~~change results primarily from~~increase of $85,397 was due to an increase in consulting and professional fees of $86,771 as a result of the Company’s audits and filings with the OTC Markets and a decrease in ~~consulting fees~~general & administrative expense - other of $1,374 as the result of a decrease in filing fees.

For the Six Months Ended June 30, 2021 Compared to the Six Months Ended June 30, 2020

During the six months ended June 30, 2021 and ~~general~~2020 we recognized total revenues of $154,870 and ~~administrative expenses~~$0, respectively. The increase in revenues of $154,870 was the result of a new operating lease as well as the sale of a LED Video screen unit.

Gross profit for the ~~current~~six months ended June 30, 2021 was $17,091 as compared to gross loss of ($27,956) for the prior period. The increase in gross profit of $45,047 was due to an increase in cost of sales of $109,823 and the related increase in revenues of 154,870.

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During the six months ended June 30, 2021, we recognized $172,946 in operating expenses compared to $123,394 for the prior period. The increase of $49,552 was due to an increase in consulting and professional fees of $54,683 as a result of the Company’s audits, use of consultants and filings with the OTC Markets and a decrease in general & administrative expense - other of $5,131 as a result of a decrease in filing fees.

LIQUIDITY AND CAPITAL RESOURCES

Operating Activities

During the ~~three~~six months ended ~~March 31,~~June 30, 2021, the Company used cash flows from operational activities of ~~$73,599~~$2,037 that was adjusted by non-cash items of: deprecation in the amount of ~~$3,760 and~~$10,415, a loss on the disposition of asset in the amount of ~~$73,046.~~$73,046 and issuance of common shares for services in the amount of $77,500.

Investing Activities

During the ~~three~~six months ended ~~March 31,~~June 30, 2021, the Company ~~deposited~~expended funds ~~for the refurbish of its trailer and the purchase of a new screen for resale~~to acquire property on an operating lease in the amount of ~~$50,000 and $58,150, respectively~~$115,789 as well as received proceeds from the sale of its used screen in the amount of ~~$7,425.~~$9,850.

Financing Activities

During the ~~three~~six months ended ~~March 31,~~June 30, 2021, the Company borrowed funds in the amount of $65,000 and received ~~a deposit~~deferred revenue on ~~the sale of a new screen~~an operating lease in the amount of ~~$65,000.~~$9,000.

In order for us to continue as a going concern, we will need to obtain additional debt or equity financing and look for companies with cash flow positive operations that we can acquire. There can be no assurance that we will be able to secure additional debt or equity financing, that we will be able to acquire cash flow positive operations, or that, if we are successful in any of those actions, those actions will produce adequate cash flow to enable us to meet all our future obligations. Most of our existing financing arrangements are short-term. If we are unable to obtain additional debt or equity financing, we may be required to significantly reduce or cease operations.

Going Concern

We have approximately ~~$40,000~~$21,000 in cash as of ~~May 5,~~July 26, 2021 and have incurred operating losses and limited cash flows from operations since inception. As of ~~March 31,~~June 30, 2021, we had accumulated deficit of ~~$(35,582,890)~~$(35,674,920) and we will require additional working capital to fund operations through 2021 and beyond. These factors, among others, raise substantial doubt about our ability to continue as a going concern. Our financial statements included in this Form 10-Q do not include any adjustments related to recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should we be unable to continue as a going concern. The audited financial statements included in the Company’s recent annual report on Form 10-K have been prepared assuming that we will continue as a going concern and do not include any adjustments that might result if we cease to continue as a going concern.

Based on our financial history since inception, in their report on the financial statements for the period ended December 31, 2020, our independent registered public accounting firm has expressed substantial doubt as to

our ability to continue as a going concern. There is no assurance that any revenue will be realized in the future.

There can be no assurance that we will have adequate capital resources to fund planned operations or that any additional funds will be available to us when needed or at all, or, if available, will be available on favorable terms or in amounts required by us. If we are unable to obtain adequate capital resources to fund operations, we may be required to delay, scale back or eliminate some or all of our operations, which may have a material adverse effect on our business, results of operations and ability to operate as a going concern.

Short Term

On a short-term basis, we have not generated revenues sufficient to cover our growth-oriented operations plan. Based on prior history, we may continue to incur losses until such a time that our revenues are sufficient to cover our operating expenses and growth-oriented operations plan. As a result, we may need additional capital in the form of equity or loans, none of which is committed as of this filing.

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Capital Resources

We have only common stock as our capital resource, and our assets, including cash.

We have no material commitments for capital expenditures within the next year, however, as operations are expanded substantial capital will be needed to pay for expansion and working capital.

Need for Additional Financing

We have limited funds, and such funds may not be adequate to carry out our business plan in the event production industry. Our ultimate success depends upon our ability to raise additional capital. We are investigating the availability, sources, and terms that might govern the acquisition of additional capital.

We have no commitment at this time for additional capital. If we need additional capital, we have no assurance that funds will be available from any source or, if available, that they can be obtained on terms acceptable to us. If not available, our operations will be limited to those that can be financed with our existing capital.

Off Balance Sheet Arrangements

None

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time period 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 in our reports filed or submitted under the Securities Exchange Act of 1934 is accumulated and communicated to management including our principal executive officer/principal financial officer as appropriate, to allow timely decisions regarding required disclosure.

Management has carried out an evaluation of the effectiveness of the design and operation of our Company’s disclosure controls and procedures. Due to the lack of personnel and outside directors, management

acknowledges that there are deficiencies in these controls and procedures. The Company anticipates that with further resources, the Company will expand both management and the board of directors with additional officers and independent directors in order to provide sufficient disclosure controls and procedures.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) or 15d-15(f)) during the quarter ended ~~March 31,~~June 30, 2021 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

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PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 1A. RISK FACTORS

There have been no material changes with respect to risk factors previously disclosed in the Company’s Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission on March 1, 2021.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURE

Not Applicable.

ITEM 5. OTHER INFORMATION

Not Applicable.

ITEM 6. EXHIBITS

Exhibits. The following is a complete list of exhibits filed as part of this Form 10-Q. Exhibit numbers correspond to the numbers in the Exhibit Table of Item 601 of Regulation S-K.

31.1	Certification of Chief Executive Officer Pursuant to Rule 13a–14(a) or 15d-14(a) of the Securities Exchange Act of 1934
31.2	Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934
32.1	Certification of Chief Executive Officer under Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Chief Financial Officer under Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document ~~(1)~~- the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document ~~(1)~~
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document ~~(1)~~
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document ~~(1)~~
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document ~~(1)~~
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document ~~(1)~~
104	Cover Page Interactive Data File (formatted as an Inline XBRL document and included in Exhibit 101)

~~(1)~~

Pursuant to Rule 406T of Regulation S-T, this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	BIO LAB NATURALS, INC.
	(Registrant)

Dated: ~~May 5,~~July 30, 2021	By:	/s/ W. Edward Nichols
		W. Edward Nichols
		(Chief Executive Officer, Principal Executive
		Officer)

Dated: ~~May 5,~~July 30, 2021	By:	/s/ Darrell Avey
		Darrell Avey
		(Chief Financial Officer, Principal Accounting
		Officer)