UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
☒ Quarterly Report Pursuant to Section QUARTERLY REPORT PURSUANT TO SECTION 13 orOR 15(d) of The Securities Exchange Act ofOF THE SECURITIES EXCHANGE ACT OF 1934
For The Quarterly Period Ended: the quarterly period ended December 31, 20172021
or
☐ Transition Report Pursuant TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to Section 13 or 15(d) of The Securities Exchange Act of 1934
Commission File Number: 000-29621
NovAccess Global, Inc.
(Exact name of registrant as specified in its charter)
Colorado | 84-1384159 | |
(State or other jurisdiction of | (I.R.S. Employer Identification No.) |
8834 Mayfield Road, Suite C, Chesterland, Ohio 44026
(Address of principal executive offices) (Zip(Zip Code)
(440) 644-1027
(Registrant’s telephone number: (949) 330-8060number, including area code)
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 as amended, during the preceding twelve (12)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. ☒ Yes☒ ☐ No ☐
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). ☒ Yes x ☐ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or 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 ☐ | Smaller reporting company ☒ |
Emerging growth company ☐ |
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. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☐☒ No ☒
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. There were 14,941,697 shares of common stock issued and outstanding as ofon February 9, 2018 was 1,406,800,138.
17, 2022.
Table of Contents
PART I — FINANCIAL INFORMATION | 1 | ||
1 | |||
16 | |||
16 | |||
16 | |||
17 | |||
17 | |||
Item 3. Quantitative and Qualitative Disclosures About Market Risk. | 18 | ||
18 | |||
18 | |||
18 | |||
PART II — OTHER INFORMATION | 19 | ||
19 | |||
19 | |||
19 | |||
19 | |||
19 | |||
19 | |||
20 | |||
21 | |||
Part I — Financial Information
Item 1. Financial Statements.
NOVACCESS GLOBAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| December 31, 2017 | September 30, 2017 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash | $ | 13,207 | $ | 23,056 | ||||
| Accounts receivable | - | 17,125 | ||||||
| Prepaid expenses | 3,818 | 6,967 | ||||||
| Total Current Assets | 17,025 | 47,148 | ||||||
| PROPERTY & EQUIPMENT | ||||||||
| Office & miscellaneous equipment | 29,842 | 29,842 | ||||||
| Machinery & equipment | 1,398 | 1,398 | ||||||
| 31,240 | 31,240 | |||||||
| Less accumulated depreciation | (30,164 | ) | (30,094 | ) | ||||
| Net Property & Equipment | 1,076 | 1,146 | ||||||
| TOTAL ASSETS | $ | 18,101 | $ | 48,294 | ||||
| LIABILITIES AND SHAREHOLDERS’ DEFICIT | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable | $ | 114,302 | $ | 83,870 | ||||
| Credit card payable | 65,175 | 67,521 | ||||||
| Accrued interest on notes payable | 35,659 | 39,206 | ||||||
| Billing in excess of cost | - | 14,955 | ||||||
| Derivative liability | 496,460 | 625,645 | ||||||
| Promissory note, related party | 31,500 | 31,500 | ||||||
| Convertible promissory note, related party | 12,000 | 12,000 | ||||||
| Convertible promissory notes, current portion net of debt discount of $662 and $865, respectively | 132,371 | 92,168 | ||||||
| Total Current Liabilities | 887,467 | 966,865 | ||||||
| LONG TERM LIABILITIES | ||||||||
| Convertible promissory notes, net of debt discount of $5 and $147, respectively | 66,935 | 125,653 | ||||||
| Total Long Term Liabilities | 66,935 | 125,653 | ||||||
| TOTAL LIABILITIES | 954,402 | 1,092,518 | ||||||
| SHAREHOLDERS’ DEFICIT | ||||||||
| Preferred stock 50,000,000 shares authorized, shares issued and outstanding designated as follows: | ||||||||
Preferred Stock Series A, $0.01 par value, 10,000 authorized 5,000 and 5,000 shares issued and outstanding, respectively | 50 | 50 | ||||||
Common stock, no par value; 2,000,000,000 authorized common shares 1,313,848,412 and 1,040,146,548 shares issued and outstanding, respectively | 33,110,194 | 32,935,727 | ||||||
| Additional paid in capital | 5,335,398 | 5,335,398 | ||||||
| Paid in capital, common stock warrants | 3,811,700 | 3,811,700 | ||||||
| Accumulated deficit | (43,193,643 | ) | (43,127,099 | ) | ||||
| TOTAL SHAREHOLDERS’ DEFICIT | (936,301 | ) | (1,044,224 | ) | ||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT | $ | 18,101 | $ | 48,294 | ||||
December 31, 2021 | September 30, 2021 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash | $ | 24,699 | $ | 180,668 | ||||
Employee Advances | - | 380 | ||||||
Prepaid expenses | 11,337 | 27,086 | ||||||
TOTAL ASSETS | $ | 36,036 | $ | 208,134 | ||||
LIABILITIES AND SHAREHOLDERS' DEFICIT | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 172,658 | $ | 143,074 | ||||
Other payable | 66,894 | 66,894 | ||||||
Accrued expenses and interest on notes payable | 410,629 | 356,683 | ||||||
Accrued payroll | 9,791 | 10,712 | ||||||
Deferred compensation | 256,864 | 201,383 | ||||||
License Fees Payable | 40,402 | 40,402 | ||||||
Derivative liability | 2,105,423 | 2,553,979 | ||||||
Derivative liability warrants | 265,968 | 372,643 | ||||||
Due to related party | 86,073 | 82,922 | ||||||
Promissory note payable net of debt discount and debt issuance costs of $140,299 and $395,027, respectively | 359,701 | 104,973 | ||||||
Bridge Loans Payable - related parties | 75,000 | - | ||||||
Loan payable, related party | 12,000 | 12,000 | ||||||
Convertible promissory notes net of debt discount and debt issuance costs of $0 and $69,567, respectively | - | 24,683 | ||||||
Total Current Liabilities | 3,861,403 | 3,970,348 | ||||||
LONG TERM LIABILITIES | ||||||||
Convertible promissory notes | 165,880 | 165,880 | ||||||
Total Long Term Liabilities | 165,880 | 165,880 | ||||||
TOTAL LIABILITIES | 4,027,283 | 4,136,228 | ||||||
SHAREHOLDERS' DEFICIT | ||||||||
Preferred stock 50,000,000 shares authorized, shares issued and outstanding designated as follows: | ||||||||
Preferred Stock Series B, $0.01 par value, 25,000 authorized 25,000 and 25,000 shares issued and outstanding, respectively | 250 | 250 | ||||||
Common stock, 0 par value; 2,000,000,000 authorized common shares 14,651,697 and 14,404,030 shares issued and outstanding, respectively | 41,962,690 | 41,882,535 | ||||||
Additional paid in capital | 5,351,398 | 5,351,398 | ||||||
Paid in capital, common stock warrants | 4,210,960 | 4,210,960 | ||||||
Paid in capital, preferred stock | 5,088,324 | 5,088,324 | ||||||
Accumulated deficit | (60,604,869 | ) | (60,461,561 | ) | ||||
TOTAL SHAREHOLDERS' DEFICIT | (3,991,247 | ) | (3,928,094 | ) | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT | $ | 36,036 | $ | 208,134 | ||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statementsstatements.
NOVACCESS GLOBAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31, 20172021 AND 20162020
(Unaudited)
| Three Months Ended | ||||||||
| December 31, 2017 | December 31, 2016 | |||||||
| SALES | $ | 79,875 | $ | 393,702 | ||||
| COST OF GOODS SOLD | 43,299 | 299,054 | ||||||
| GROSS PROFIT | 36,576 | 94,648 | ||||||
| OPERATING EXPENSES | ||||||||
| Selling, general and administrative expenses | 117,465 | 126,920 | ||||||
| Depreciation and amortization expense | 70 | 31 | ||||||
| TOTAL OPERATING EXPENSES | 117,535 | 126,951 | ||||||
| LOSS FROM OPERATIONS BEFORE OTHER INCOME/(EXPENSES) | (80,959 | ) | (32,303 | ) | ||||
| OTHER INCOME/(EXPENSES) | ||||||||
| Penalties | - | (200 | ) | |||||
| Loss on settlement of debt | (106,160 | ) | - | |||||
| Gain (Loss) on conversion of debt and change in derivative liability | 129,283 | 8,646 | ||||||
| Interest expense | (8,708 | ) | (11,654 | ) | ||||
| TOTAL OTHER INCOME/(EXPENSES) | 14,415 | (3,208 | ) | |||||
| NET LOSS | $ | (66,544 | ) | $ | (35,511 | ) | ||
| BASIC AND DILUTED LOSS PER SHARE | $ | (0.00 | ) | $ | (0.00 | ) | ||
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING BASIC AND DILUTED | 1,170,377,973 | 843,519,778 | ||||||
Three Months Ended | ||||||||
December 31, 2021 | December 31, 2020 | |||||||
OPERATING EXPENSES | ||||||||
Research and development expenses | 42,399 | - | ||||||
Selling, general and administrative expenses | 279,930 | 1,399,890 | ||||||
TOTAL OPERATING EXPENSES | 322,329 | 1,399,890 | ||||||
LOSS FROM OPERATIONS BEFORE OTHER INCOME/(EXPENSES) | (322,329 | ) | (1,399,890 | ) | ||||
OTHER INCOME/(EXPENSES) | ||||||||
Gain on change in derivative liability | 459,026 | 1,562,605 | ||||||
Extinguishment of derivatives | 96,205 | - | ||||||
Interest expense | (376,210 | ) | (7,601 | ) | ||||
TOTAL OTHER INCOME/(EXPENSES) | 179,021 | 1,555,004 | ||||||
NET INCOME (LOSS) | $ | (143,308 | ) | $ | 155,114 | |||
BASIC INCOME (LOSS) PER SHARE | $ | (0.01 | ) | $ | 0.03 | |||
DILUTED INCOME (LOSS) PER SHARE | $ | (0.01 | ) | $ | 0.02 | |||
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING | ||||||||
BASIC | 14,460,284 | 5,816,036 | ||||||
DILUTED | 14,460,284 | 9,354,067 | ||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statementsstatements.
NOVACCESS GLOBAL, INC.
CONDENSED STATEMENTCONSOLIDATED STATEMENTS OF SHAREHOLDERS’SHAREHOLDERS' DEFICIT
FOR THE THREE MONTHS ENDED DECEMBER 31, 20172021 AND 2020
(Unaudited)
| Additional | Stock Options/ | |||||||||||||||||||||||||||||||
| Preferred Stock | Common Stock | Paid-in | Warrants | Accumulated | ||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Paid-in-Capital | Deficit | Total | |||||||||||||||||||||||||
| Balance at September 30, 2017 | 5,000 | $ | 50 | 1,040,146,548 | $ | 32,935,727 | $ | 5,335,398 | $ | 3,811,700 | $ | (43,127,099 | ) | $ | (1,044,224 | ) | ||||||||||||||||
| Common stock issued upon conversion of debt and accrued interest | - | - | 273,701,864 | 174,467 | - | - | - | 174,467 | ||||||||||||||||||||||||
| Net Loss for the three months ended December 31, 2017 | - | - | - | - | - | - | (66,544 | ) | (66,544 | ) | ||||||||||||||||||||||
| Balance at December 31, 2017 (unaudited) | 5,000 | $ | 50 | 1,313,848,412 | $ | 33,110,194 | $ | 5,335,398 | $ | 3,811,700 | $ | (43,193,643 | ) | $ | (936,301 | ) | ||||||||||||||||
Additional | Stock Options/ | Paid in Capital, | ||||||||||||||||||||||||||||||||||||||||||
Preferred Stock, Class A | Preferred Stock, Class B | Common Stock | Paid-in | Warrants | Preferred | Accumulated | ||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Capital | Paid in Capital | Stock | Deficit | Total | ||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | - | $ | - | 25,000.00 | $ | 250 | 1,603,492 | $ | 33,369,424 | $ | 11,710,398 | $ | 4,210,960 | $ | 5,088,324 | $ | (57,949,086 | ) | $ | (3,569,730 | ) | |||||||||||||||||||||||
Common Stock issued for StemVax acquisition - from stock payable | - | - | - | - | 7,500,000 | $ | 6,375,000 | $ | (6,375,000 | ) | - | - | - | - | ||||||||||||||||||||||||||||||
Stock compensation cost | - | - | - | - | 1,800,000 | 846,000 | - | - | - | - | 846,000 | |||||||||||||||||||||||||||||||||
Common Stock issued for services | - | - | - | - | 258,889 | 121,678 | - | - | - | - | 121,678 | |||||||||||||||||||||||||||||||||
Common Stock issued , subscriptions | - | - | - | - | 683,762 | 125,000 | - | - | - | - | 125,000 | |||||||||||||||||||||||||||||||||
Common Stock payable for services | - | - | - | - | - | - | 20,000 | - | - | - | 20,000 | |||||||||||||||||||||||||||||||||
Net Loss | - | - | - | - | - | - | - | - | - | 155,114 | 155,114 | |||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | - | $ | - | 25,000.00 | $ | 250 | 11,846,143 | $ | 40,837,102 | $ | 5,355,398 | $ | 4,210,960 | $ | 5,088,324 | $ | (57,793,972 | ) | $ | (2,301,938 | ) | |||||||||||||||||||||||
Balance at September 30, 2021 | - | $ | - | 25,000.00 | $ | 250 | 14,404,030 | $ | 41,882,535 | $ | 5,351,398 | $ | 4,210,960 | $ | 5,088,324 | $ | (60,461,561 | ) | $ | (3,928,094 | ) | |||||||||||||||||||||||
Stock compensation cost | - | - | - | - | 10,000 | $ | 8,000 | - | - | - | - | $ | 8,000 | |||||||||||||||||||||||||||||||
Common Stock issued for services | - | - | - | - | 36,667 | $ | 21,955 | - | - | - | - | $ | 21,955 | |||||||||||||||||||||||||||||||
Common Stock issued , subscriptions | - | - | - | - | 201,000 | $ | 50,200 | - | - | - | - | $ | 50,200 | |||||||||||||||||||||||||||||||
Net Loss | - | - | - | - | - | - | - | - | - | $ | (143,308 | ) | $ | (143,308 | ) | |||||||||||||||||||||||||||||
Balance at December 31, 2021 | - | $ | - | 25,000.00 | $ | 250 | 14,651,697 | $ | 41,962,690 | $ | 5,351,398 | $ | 4,210,960 | $ | 5,088,324 | $ | (60,604,869 | ) | $ | (3,991,247 | ) | |||||||||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statementsstatements.
NOVACCESS GLOBAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED DECEMBER 31, 20172021 AND 20162020
(Unaudited)
| Three Months Ended | ||||||||
| December 31, 2017 | December 31, 2016 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (66,544 | ) | $ | (35,511 | ) | ||
Adjustment to reconcile net loss to net cash (used in) provided by operating activities | ||||||||
| Depreciation & amortization | 70 | 31 | ||||||
| (Gain)/Loss on conversion of debt and change in derivative liability | (129,283 | ) | (8,646 | ) | ||||
| Amortization of debt discount recorded as interest expense | 443 | 5,412 | ||||||
| Loss on settlement of debt | 106,160 | - | ||||||
| Reduction in convertible note principal | - | (2,688 | ) | |||||
| (Increase) Decrease in Change in Assets: | ||||||||
| Contract receivables | 17,125 | 30,800 | ||||||
| Cost in excess of billing | - | (3,599 | ) | |||||
| Prepaid expenses | 3,149 | (17,196 | ) | |||||
| Increase (Decrease) in Change in Liabilities: | ||||||||
| Accounts payable | 28,086 | 63,165 | ||||||
| Accrued expenses | 5,900 | 6,690 | ||||||
| Billing in excess of cost | (14,955 | ) | 71,549 | |||||
| NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | (49,849 | ) | 110,007 | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from convertible promissory notes | 40,000 | - | ||||||
| Payments on convertible promissory notes | - | (20,000 | ) | |||||
| Proceeds from related party promissory notes | - | - | ||||||
| Payments on related party promissory notes | - | - | ||||||
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 40,000 | (20,000 | ) | |||||
| NET INCREASE/(DECREASE) IN CASH | (9,849 | ) | 90,007 | |||||
| CASH, BEGINNING OF PERIOD | 23,056 | 22,172 | ||||||
| CASH, END OF PERIOD | $ | 13,207 | $ | 112,179 | ||||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||
| Interest paid | $ | 2,364 | $ | 2,239 | ||||
| Taxes paid | $ | - | $ | - | ||||
| SUPPLEMENTAL DISCLOSURES OF NON CASH TRANSACTIONS | ||||||||
| Fair value of issuance of common stock upon conversion of debt and accrued interest | $ | 174,467 | $ | 27,927 | ||||
Three Months Ended | ||||||||
December 31, 2021 | December 31, 2020 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net Loss | $ | (143,308 | ) | $ | 155,114 | |||
Adjustment to reconcile net loss to net cash provided by (used in) operating activities | ||||||||
Amortization of debt discount and debt issuance costs recorded as interest expense | 324,295 | - | ||||||
(Gain) Loss on change in derivative liability | (459,026 | ) | (1,562,606 | ) | ||||
Extinguishment of derivatives | (96,205 | ) | - | |||||
Stock compensation expense | 8,000 | 846,000 | ||||||
Stock issued and issuable for services | 21,955 | 121,678 | ||||||
Changes in Assets and Liabilities: | ||||||||
Employee advances | 380 | - | ||||||
Prepaid expenses | 15,749 | - | ||||||
Accounts payable | 29,584 | 128,965 | ||||||
Other payable | - | 1,590 | ||||||
Accrued expenses and interest on notes payable | 53,946 | 18,763 | ||||||
Accrued payroll | (921 | ) | 5,821 | |||||
Deferred compensation | 55,481 | 177,938 | ||||||
License fees payable | - | (10,000 | ) | |||||
NET CASH USED IN OPERATING ACTIVITIES | (190,070 | ) | (116,737 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Stock subscriptions received | 50,200 | 145,000 | ||||||
Due to related party | 3,151 | 3,477 | ||||||
Payments on convertible notes payable | (94,250 | ) | - | |||||
Proceeds from bridge loans payable - related parties | 75,000 | - | ||||||
Payments on related party loan payable | - | (24,109 | ) | |||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 34,101 | 124,368 | ||||||
NET INCREASE (DECREASE) IN CASH | (155,969 | ) | 7,631 | |||||
CASH, BEGINNING OF PERIOD | 180,668 | 178 | ||||||
CASH, END OF PERIOD | $ | 24,699 | $ | 7,809 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||
Interest paid | $ | 54,714 | $ | 1,386 | ||||
Taxes paid | $ | - | $ | - | ||||
SUPPLEMENTAL DISCLOSURES OF NON-CASH TRANSACTIONS | ||||||||
Accrued interest capitalized into convertible notes | $ | - | $ | 1,248 | ||||
Shares issued for StemVax acquisition - from stock payable | $ | - | $ | 6,375,000 | ||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements statements.
NOVACCESS GLOBAL, INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –- UNAUDITED
DECEMBER 31, 20172021 AND 2020
1. ORGANIZATION AND LINE OF BUSINESS
Organization
NovAccess Global Inc. (“NovAccess,” the “Company”) is a Colorado corporation formerly known as Sun River Mining Inc. and XsunX, Inc. The Company was originally incorporated in Colorado on February 25, 1997. Effective September 24, 2003, the Company completed a plan of reorganization and name change to XsunX, Inc. In June 2020, the Company was acquired and changed its name to NovAccess Global Inc.
Line of Business
NovAccess Global Inc. is a biopharmaceutical company that is developing novel immunotherapies to treat brain tumor patients in the United States with plans to expand globally. We specialize in cutting-edge research related to utilizing a patient’s own immune system to attack the cancer. We are filing an Investigational New Drug Application (IND) and working closely with the Food and Drug Administration (FDA) to obtain approval for human clinical trials to determine safety and efficacy of our drug product for brain cancer patients. Once we have successfully completed the clinical trials and proven that the new therapy is safe and efficacious, we plan to commercialize the product. We also have expertise in successfully executing clinical trials, bringing products to market and increasing the market size of products through our advisory board. Our scientists are well versed in immunology, stem cell biology, neuroscience, molecular biology, imaging, small molecules development, gene therapy and other technical assays needed for protein and genetic analysis of cancer cells. |
NovAccess operates as a research and development (R&D) company out of Ohio and California, and our executive management and scientific advisory board provide over 15 years of extensive experience in all aspects of biopharmaceutical R&D and commercialization of drug candidates. We guide our performance by striving to deliver consistently on the following core objectives: (1) Accountability — taking responsibility for providing safe and effective options for patients; (2) Integrity — doing what is ethically right for the patient; (3) Excellence — doing your best and working hard; and (4) Teamwork — bringing together a strong working team to deliver the best products for brain tumor patients.
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all normal recurring adjustments considered necessary for a fair presentation have been included. Operating results for the three months ended December 31, 20172021 are not necessarily indicative of the results that may be expected for the year ended September 30, 2018.2022. For further information refer to the financial statements and footnotes thereto included in the Company’s Form 10-K for the year ended September 30, 2017.2021.
Going Concern
The accompanying unaudited condensed financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets and liabilities and commitments in the normal course of business. The accompanying unaudited condensed financial statements do not reflect any adjustments that might result if the Company is unable to continue as a going concern. During the three months ended December 31, 2017, theThe Company diddoes not generate significant revenue, incurred a net loss of $66,544, and usedhas negative cash inflows from operations, of $49,849. As of December 31, 2017, the Company had a working capital deficiency of $870,442, and a shareholders’ deficit of $936,301. These factors among otherswhich raise substantial doubt about the Company’s ability to continue as a going concern.
The ability of the Company to continue as a going concern and appropriateness of using the going concern basis is dependent upon, among other things, additional cash infusion. The Company has obtained funds from its shareholders and lenders since its inception through the three monthsperiod ended December 31, 2017.2021. Management believes the existing shareholders and the prospective new investors will provide the additional cash needed to meet the Company’s obligations as they become due and will allow the development of its business development efforts in the solar PV industry. business.
NOVACCESS GLOBAL, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
DECEMBER 31, 2021 AND 2020
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
This summary of significant accounting policies of XsunX, Inc.NovAccess is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements.
Basis of Presentation
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary StemVax, LLC. All significant inter-company accounts and transactions between these entities have been eliminated in these condensed consolidated financial statements.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements. Significant estimates made in preparing these consolidated financial statements include the estimate of useful lives of property and equipment, revenue recognition, the deferred tax valuation allowance, the fair value of stock options, and derivative liabilities. Actual results could differ from those estimates.
Cash and Cash Equivalents
For purposes of the statements of cash flows, cash and cash equivalents include cash in banks and money markets with an original maturity of three months or less.
Property and related costs on construction contractsEquipment
Property and equipment are recognizedstated at cost, and are depreciated using the “percentage of completion method” of accounting in accordance with ASC 605-35, Accounting for Performance of Construction-Typestraight line method over its estimated useful lives:
Leasehold improvements | Length of the lease |
Computer software and equipment | 3 Years |
Furniture & fixtures | 5 Years |
Machinery & equipment | 5 Years |
The Company capitalizes property and Certain Production Type Contracts (“ASC 605-35”). Under this method, contract revenuesequipment over $500. Property and related expensesequipment under $500 are recognized over the performance period of the contract in direct proportion to the costs incurred as a percentage of total estimated costs for the entirety of the contract. Revenue is recognized based on the percentage of cost incurred. Costs include all direct materials, subcontractor costs, direct labor and those indirect costs related to contract performance, such as indirect labor, supplies, project planning and preparation, tools and repairs. All un-allocable indirect costs and corporate general and administrative costs are charged to the periods as incurred. However,expensed in the event a loss on a contract is foreseen, the Company will recognize the loss as it is determined.
Stock-Based Compensation
Share-based Payment applies to transactions in which an entity exchanges its equity instruments for goods or services and also applies to liabilities an entity may incur for goods or services that are to follow a fair value of those equity instruments. We are required to follow a fair value approach using an option-pricing model, such as the Black Scholes optionBinomial lattice valuation model, at the date of a stock option grant. The deferred compensation calculated under the fair value method would then be amortized over the respective vesting period of the stock option. This has not had a material impact on our results of operations.
NOVACCESS GLOBAL, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
DECEMBER 31, 2021 AND 2020
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Net Earnings (Loss) per Share Calculations
Net earnings (Loss) per share dictates the calculation of basic earnings (loss) per share and diluted earnings per share. Basic earnings (loss) per share are computed by dividing by the weighted average number of common shares outstanding during the year. Diluted net earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include the effect of stock options and stock basedstock-based awards (Note 4), plus the assumed conversion of convertible debt (Note(Notes 4 and 5).
For the Three Months Ended | ||||||||
December 31, | ||||||||
2021 | 2020 | |||||||
Gain (Loss) to common shareholders (Numerator) | $ | (143,308 | ) | $ | 155,114 | |||
Basic weighted average number of common shares outstanding (Denominator) | 14,460,284 | 5,816,036 | ||||||
Diluted weighted average number of common shares outstanding (Denominator) | 14,460,284 | 9,354,067 | ||||||
Diluted weighted average number of shares for the three months ended December 31, 2017,2021 is the same as basic weighted average number of shares because the Company calculated the dilutive impact of the convertible debt of $211,306, which is convertible into shares of common stock. The convertible debt was not included in the calculation ofhad a net loss per share, because their impact was anti-dilutive.
The Company calculated the dilutive impact of the outstanding stock options of 1,500,000, and thehas included shares issuable from convertible debt of $223,045, which is convertible into shares of common stock. The stock options and$219,952 for the convertible debt was not included in the calculation of net earnings per share,three months ended December 31, 2020, because their impact was antidilutive. on the income per share is dilutive.
The Company also included shares issuable from 2,000,000 options issued to compensate our former directors for serving on the board without compensation in fiscal 2019 for the three months ended December 31, 2020, because their impact on the income per share is dilutive.
Fair Value of Financial Instruments
Fair Value of Financial Instruments, requires disclosure of the fair value information, whether or not recognized in the balance sheet, where it is practicable to estimate that value. As of December 31, 2017,2021, the balances reported for cash, prepaid expenses, accounts payable, accrued expenses approximate the fair value because of their short maturities.
We adopted ASCAccounting Standards Codification (“ASC”) Topic 820 for financial instruments measured as fair value on a recurring basis. ASC Topic 820 defines fair value, an established a framework for measuring fair value in accordance with accounting principles generally accepted in the United States and expands disclosures about fair value measurements.
Fair value is defined as 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. ASC Topic 820 established a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include:
● | Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; |
● | Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and |
● | Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
NOVACCESS GLOBAL, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
DECEMBER 31, 2021 AND 2020
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
We measure certain financial instruments at fair value on a recurring basis. AssetsThe Company had no assets that are required to be valued on a recurring basis as of December 31 and September 30, 2021. The Company had liabilities that are required to be measured at fair value on a recurring basis are as follows at December 31 2017:and September 30, 2021:
| Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
| Liabilities | ||||||||||||||||
| Derivative Liability | $ | 496,460 | $ | - | $ | - | $ | 496,460 | ||||||||
| Total Liabilities measured at fair value | $ | 496,460 | $ | - | $ | - | $ | 496,460 | ||||||||
Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | $ | - | $ | - | $ | - | $ | - | ||||||||
Liabilities: | ||||||||||||||||
Derivative Liability at fair value as of September 30, 2021 | $ | 2,553,979 | $ | - | $ | - | $ | 2,553,979 | ||||||||
Derivative Liability warrants at fair value as of September 30, 2021 | $ | 372,643 | $ | - | $ | - | $ | 372,643 | ||||||||
Derivative Liability at fair value as of December 31, 2021 | $ | 2,105,423 | $ | - | $ | - | $ | 2,105,423 | ||||||||
Derivative Liability warrants at fair value as of December 31, 2021 | $ | 265,968 | $ | - | $ | - | $ | 265,968 | ||||||||
The following is a reconciliation of the derivative liability for which Level 3 inputs were used in determining the approximate fair value:
| Balance as of September 30, 2017 | $ | 625,645 | ||
| Fair value of derivative liabilities issued | 98 | |||
| Net Loss on change in derivative liability and conversion of debt | (129,283 | ) | ||
| Ending balance as of December 31, 2017 | $ | 496,460 |
Derivative Liability | Derivative Liability Warrants | |||||||
Balance as of September 30, 2021 | 2,553,979 | 372,643 | ||||||
Extinguishment of derivatives | (96,205 | ) | - | |||||
Net (Gain)/Loss on change in fair value of derivative liability | (352,351 | ) | (106,675 | ) | ||||
Ending balance as of December 31, 2021 | $ | 2,105,423 | $ | 265,968 | ||||
NOVACCESS GLOBAL, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
DECEMBER 31, 2021 AND 2020
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Recent Accounting Pronouncements
In May 2016, FASB2021, the Financial Accounting Standards Board (“FASB”) issued accounting standards update ASU-2016-12, Revenue from (“ASU”) 2021-04—Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts with Customers (Topic 606) – Narrow-Scope Improvementsin Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options, to clarify and Practical Expedients.reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. The amendments do not change the core revenue recognition principle in Topic 606. The amendments provide clarifying guidance in certain narrow areas and add some practical expedients. These amendmentsthis ASU are effective at the same time Topic 606 is effective. Topic 606 is effective for public and nonpublic entities for annual reporting periodsfiscal years beginning after December 15, 2017,2021, and interim periods with fiscal years beginning after December 15, 2021. Early adoption is permitted, including adoption in an interim reporting periods therein.period. The Company is currently evaluating the impacteffects of the adoption of ASU 2016-12No. 2021-04 on the Company’sits consolidated financial statements.
In August 2016, FASB issued accounting standards update ASU-2016-15, “Statement of Cash Flows” (Topic 230) – Classification of Certain Cash Receipts and Cash Payments”,Payments, to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this ASU are effective for public and nonpublic entities for fiscal years beginning after December 15, 2018, and interim periods with fiscal years beginning after December 15, 2019. Early adoption iswas permitted, including adoption in an interim period. The Company is currently evaluatinghas evaluated the impact of the adoption of ASU 2016-15, which had no effect on the Company’s financial statements.
In August 2017, FASB issued accounting standards update ASU-2017-12, “D” (Topic 815) – “Targeted Improvements to Accounting for Hedging Activities”, to require an entity to present the earnings effect of the hedging instrument in the same statement line item in which the earnings effect of the hedged item is reported. The amendments in this update are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods with the fiscal years beginning after December 15, 2020. Early adoption was permitted in any interim period after issuance of the update. The Company has evaluated the impact of the adoption of ASU 2017-12, which had no effect on the Company’s financial statements.
In June 2018, FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost (that is, the period of time over which share-based payment awards vest and the pattern of cost recognition over that period). The new guidance is effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The Company has evaluated the impact of the adoption of ASU 2018-07, which had no effect on the Company’s financial statements.
In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this Update modify certain disclosure requirements of fair value measurements and are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption was permitted. The Company has evaluated the impact of the adoption of ASU 2018-13, which had no effect on the Company’s financial statements.
Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying condensed financial statements.
At December 31, 2017,2021, the Company’s authorized stock consisted of 2,000,000,000 shares of common stock, with no par value. Effective August 25, 2020, we filed articles of amendment to our articles of incorporation with the Colorado Secretary of State to effectuate a 1-for-1,000 reverse stock split of the Company’s outstanding shares of common stock.
The Company is also authorized to issue 50,000,000 shares of preferred stock with a par value of $0.01 per share of which 10,000 shares have been designated as Series A Preferred Stock.share. The rights, preferences and privileges of the holders of the preferred stock are determined by the Board of Directors prior to issuance of such shares.
NOVACCESS GLOBAL, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
DECEMBER 31, 2017, the Company issued 273,701,864 shares of common stock upon conversion of principal in the amount of $58,860, plus accrued interest of $9,447, with an aggregate fair value loss on settlement of debt of $106,160.2021 AND 2020
3. CAPITAL STOCK (Continued)
Preferred Stock
As of December 31, 2017,2021 the Company had 25,000 shares of issued and outstanding Series B Preferred Stock following the conversion of 5,000 shares of Series A Preferred Stock. The Series A shares were originally issued in consideration for the contribution of services by Tom Djokovich, the former President and Chief Executive Officer, to the Company valued at 50 dollars, which the Board deemed full and fair consideration. Because of such issuance, Mr. Djokovich had the ability to influence and determine stockholder votes. On March 18, 2020, the Company, Mr. Djokovich, and TN3, LLC, a Wyoming limited liability company owned by Daniel G. Martin (“TN3”), entered into a Stock Purchase Agreement (the “Agreement”). Pursuant to the Agreement, Mr. Djokovich agreed to sell his 5,000 shares of Series A Preferred Stock to TN3 in a private sale for cash. The holder of the Series A Preferred Stock could cast votes equal to not less than 60% of the total outstanding voting power of the Company on all matters voted on by the shareholders of the Company. On September 4, 2020, the Company issued 25,000 shares of unregistered Series B Convertible Preferred stock, $0.01 par value per share to TN3 in exchange for the redemption of 5,000 shares of Series A preferred stock. Each share of outstanding Series B Preferred Stock entitles the holder to cast 40,000 votes. Each share of Series B Preferred Stock is convertible at the option of the holder into 10,000 common shares. In the event of any voluntary or involuntary liquidation, dissolution, or winding-up of the Corporation, the holders of shares of Series B Preferred Stock shall be paid out based on an as converted basis. Dividend for Series B Preferred Stock shall be declared on an as converted basis.
Common Stock
Effective August 25, 2020, we filed articles of amendment to our articles of incorporation with the Colorado Secretary of State to effectuate a 1-for-1,000 reverse stock split of the Company’s outstanding shares of common stock.
During the period ended December 31, 2021, the Company issued 147,667 shares of common stock. 36,667 shares were issued to various vendors for services provided; 101,000 shares were issued in relation to stock subscriptions; and 10,000 shares were issued to related parties (please refer to Note 12 for more details).
During the period ended December 31, 2020, the Company issued 10,242,651 shares of common stock. 258,889 shares were issued to various vendors for services provided; 683,762 shares were issued in relation to stock subscriptions; and 9,300,000 shares were issued to related parties.
4. CONVERTIBLE PROMISSORY NOTES
As of December 31, 2021, the outstanding convertible promissory notes are summarized as follows:
| Convertible Promissory Notes, net of debt discount | $ | 211,306 | ||||||
Convertible Promissory Notes | $ | 165,880 | ||||||
| Less current portion | 144,371 | - | ||||||
| Total long-term liabilities | $ | 66,935 | $ | 165,880 | ||||
Maturities of long-term debt for the next threefour years are as follows:
| Year Ending | ||||
| September 30, | ||||
| 2019 | $ | - | ||
| 2020 | - | |||
| 2021 | 66,935 | |||
| $ | 66,935 | |||
Year Ending | ||||
September 30, | ||||
2023 | 165,880 | |||
| $ | 165,880 |
NOVACCESS GLOBAL, INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –- UNAUDITED
DECEMBER 31, 20172021 AND 2020
4. CONVERTIBLE PROMISSORY NOTES (Continued)
On November 20, 2014, the Company issued a 10% unsecured convertible promissory note (the “November Note”) for the principal sum of up to $400,000 plus accrued interest on any advanced principal funds. The November Note matures eighteen months from each advance. The November Note may be converted by the lender into shares of common stock of the Company at the lesser of $.0125$12.50 per share or (b) fifty percent (50%) of the lowest trade prices following issuance of the November Note or (c) the lowest effective price per share granted to any person or entity. On November 20, 2014, the lender advanced $50,000 to the Company under the November Note at inception. On various dates from February 18, 2015 through September 30, 2016, the lender advanced an additional $350,000 under the November Note. During the three monthsperiod ended December 31, 2017,2021, the Company issued 273,701,864 shares of common stock upon conversion of $58,860 in principal, plus accrued interest of $9,447, with a fair value loss of $106,160.and lender agreed to extend the maturity date for the outstanding balance to June 30, 2023. As of December 31, 2017,2021, there remains an aggregate outstanding principal balance of $66,940. During the three months ended December 31, 2017, the Company recognized debt amortization as interest expense in the amount of $142.$50,880.
On May 10, 2017, the Company issued a 10% unsecured convertible promissory note (the “May Note”) for the principal sum of up to $150,000 plus accrued interest on any advanced principal funds. The Lenderlender may pay additional consideration at the Lenderslender’s discretion. The Company received a tranche in the amount of $25,000 upon execution of the May Note. On various dates, the Company received additional tranches in the aggregate sum of $90,000. The principal balance at December 31, 2017 was $115,000. The May Note maturesmatured twelve months from each tranche. Within thirty (30) days prior to the maturity date, the Lenderlender may extend the maturity date to sixty (60) months. During the period ended December 31, 2021, the Company and lender agreed to extend the maturity date for all tranches of the note to June 30, 2023. The May Note may be converted by the lender into shares of common stock of the Company at the lesser of $.01$10 per share or (b) fifty percent (50%) of the lowest trade price of common stock recorded on any trade day after the effective date, or (c) the lowest effective price per share granted to any person or entity. As of December 31, 2021, the balance remaining on the May Note was $115,000.
On June 2, 2021, the Company issued a 12% unsecured convertible promissory note (the “June Note”) for the principal sum of $55,500 plus accrued interest. The June Note matures on June 2, 2022. The June Note may be converted by the lender into shares of common stock of the Company at sixty-one percent (61%) of the lowest trade price of common stock recorded during the fifteen (15) trading days prior to conversion. On October 5, 2021 the Company paid the balance of this note to the lender including accrued interest and prepayment settlement fee of $17,520. The Company recorded amortization of debt discount related to the conversion feature of the May Note, along with derivative liability at inception. During$36,493 and amortization of debt issuance costs of $1,458, both of which were recognized as interest expense during the three months ended December 31, 2017,2021. The Company also recognized a gain of $59,915 on the extinguishment of this convertible note during the three months ended December 31, 2021. As of December 31, 2021, the balance of the June Note was $0.
On July 6, 2021, the Company recognizedissued a 12% unsecured convertible promissory note (the “July Note”) for the principal sum of $38,750 plus accrued interest. The July Note matures on July 6, 2022. The July Note may be converted by the lender into shares of common stock of the Company at sixty-one percent (61%) of the lowest trade price of common stock recorded during the fifteen (15) trading days prior to conversion. On December 30, 2021 the Company paid the balance of this note to the lender including accrued interest and prepayment settlement fee of $16,936. The Company recorded amortization of debt discount of $29,620 and amortization of debt issuance costs of $1,996, both of which were recognized as interest expense during the three months ended December 31, 2021. The Company also recognized a gain of $36,289 on the extinguishment of this convertible note during the three months ended December 31, 2021. As of December 31, 2021, the balance of the June Note was $0.
On August 20, 2021, the Company issued a 10% unsecured promissory note (the “August note”) for the principal sum of $500,000 plus accrued interest. The August Note matures on February 20, 2022, unless extended for up to an additional six months. The August Note may be converted, only following an event of default, and therefore not included in summary of convertibles note, by the lender into shares of common stock of the Company at the lesser of 90% (representing a 10% discount) multiplied by the lowest trading price during the previous twenty (20) trading day period ending on the issuance date, or during the previous twenty (20) trading day period. The Company recorded amortization of debt discount of $200,007 related to derivative portion of the August Note and amortization of debt issuance costs of $37,250, both of which were recognized as interest expense during the three months ended December 31, 2021, as well as $17,470 amortization of debt discount representing commitment fee, recorded as commitment fee expense in the amountconsolidated statement of $301.operations for the three months ended December 31, 2021. As of December 31, 2021, the balance of the August Note was $500,000, which is the total of initial debt discount of $391,319, initial debt issuance costs of $74,500 and initial debt discount representing a commitment fee of $34,181.
NOVACCESS GLOBAL, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
DECEMBER 31, 2021 AND 2020
4. CONVERTIBLE PROMISSORY NOTES (Continued)
We evaluated the financing transactions in accordance with ASC Topic 815, Derivatives and Hedging, and determined that the conversion feature of the convertible promissory notes was not afforded the exemption for Servicesconventional convertible instruments due to Related Partyits variable conversion rate. The note has no explicit limit on the number of shares issuable so they did not meet the conditions set forth in current accounting standards for equity classification. The Company elected to recognize the notes under paragraph 815-15-25-4, whereby there would be a separation into a host contract and derivative instrument. The Company elected to initially and subsequently measure the notes in their entirety at fair value, with changes in fair value recognized in earnings. The Company recorded a derivative liability representing the imputed interest associated with the embedded derivative. The derivative liability is adjusted periodically according to the stock price fluctuations based upon the Binomial lattice model calculation.
The convertible notes issued and described in Note 4 above, do not have fixed settlement provisions because their conversion prices are not fixed. The conversion feature has been characterized as a derivative liability to be re-measured at the end of every reporting period with the change in value reported in the statement of operations.
We record the full value of the derivative as a liability at issuance with an offset to valuation discount, which will be amortized over the life of the notes.
At December 31, 2021, the fair value of the derivative liability was $2,105,423.
For purpose of determining the fair market value of the derivative liability for the embedded conversion, the Company used Binomial lattice valuation model. The significant assumptions used in the Binomial lattice valuation of the derivatives are as follows:
Risk free interest rate | Between 0.05%and 0.73% | |
Stock volatility factor | Between 103.0% and 325.0% | |
Months to Maturity | 0 - 5 years | |
Expected dividend yield | NaN |
5. CONVERTIBLE PROMISSORY NOTES – RELATED PARTY
As of March 31, 2016, Company issued the remaining unsecured Convertible Promissory Notes (the “Notes”) in the amount of $12,000 to a Board member (the “Holder”) in exchange for retention as a director during the fiscal year ending September 30, 2014. The Note can be converted into shares of common stock by the Holder for $0.0045$4.50 per share. The Note matured on October 1, 2015, and bore a one-time interest charge of $1,200 which was applied to the principal on October 1, 2014. So long as any shares issuable under a conversion are subject to transfer and sale restrictions imposed pursuant to SEC Rule 144 of the Rules promulgated under the Securities Act of 1933, the Company shall, upon written request by Holder, file Form S-8, if applicable, with the U.S. Securities and Exchange commission to register the issued.
6. WARRANTS
On August 20, 2021, for value received in connection with the issuance of the August Note (see note 4 for more details), the Company issued 1,000,000 warrants to the lender with an exercise price of $1.50 per share with a five-year exercise period.
At December 31, 2021 and September 30, 2021, the fair value of the derivative liability warrants was $265,968 and $372,643, respectively.
For the purpose of determining the fair market value of the derivative liability for the embedded conversion, the Company used Black Scholes optionthe Binomial lattice valuation model. The significant assumptions used in the Black ScholesBinomial lattice valuation of the derivativederivatives are as follows:
Risk free interest rate | 1.26% | |
Stock volatility factor | 139% | |
Months to Maturity | 5 years | |
Expected dividend yield | NaN |
NOVACCESS GLOBAL, INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS –- UNAUDITED
DECEMBER 31, 20172021 AND 2020
7. OPTIONS
On June 2, 2020, the Company issued 2,000,000,000 options to purchase common stock at an exercise price of $0.01 per share (adjusted for the August 2020 stock split). These options will be exercisable on a cashless basis for a period of ten years from August 25, 2020. The purpose of the options is to compensate our directors for serving on the board without compensation in fiscal 2019. It is difficult to assess the value of the options given the highly limited trading in our common stock, the fact that the options shares have not been and are not expected to be registered for resale and will be restricted, and the speculative nature of the Company’s future business plans. However, we estimated the value of the services provided by each of our directors during 2019 and believe that the value of the options to be issued to each of our resigning directors approximates that amount.
At December 31, 2021, the weighted average remaining contractual life of options outstanding:
December 31, 2021 | ||||||||||||||
Weighted | ||||||||||||||
Average | ||||||||||||||
Remaining | ||||||||||||||
Exercisable | Options | Options | Contractual | |||||||||||
Prices | Outstanding | Exercisable | Life (years) | |||||||||||
| $ | 0.01 | 2,000,000 | 2,000,000 | 8.42 | ||||||||||
8. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued liabilities consisted of the following at December 31, 2021 and September 30, 2021:
12/31/2021 | 9/30/2021 | |||||||
Trade accounts payable | $ | 172,658 | $ | 143,074 | ||||
Credit cards payable | 66,894 | 66,894 | ||||||
Accrued liabilities | 410,629 | 356,683 | ||||||
Accrued payroll | 9,791 | 10,712 | ||||||
Deferred compensation | 256,864 | 201,383 | ||||||
License Fees Payable | 40,402 | 40,402 | ||||||
| 957,238 | 819,148 | |||||||
9. BRIDGE LOANS PAYABLE - RELATED PARTIES
During the period ended December 31, 2021, the Company’s CEO, CFO as well as one of the Company’s service providers, each advanced funds to the Company for operating expenses in the total amount of $75,000. The notes are payable on demand with a five business day written notice and bear interest at a rate of 10% per annum. The Company may prepay all or any part of the balance owed without penalty. In the event of the default, the notes will bear additional interest at a rate of 12% per annum. As of December 31, 2021, no payments of principal or interest had been made.
10. DUE TO RELATED PARTY
During the periods ended December 31, 2021, Innovest Global, Inc. (Innovest) advanced funds to the Company for operating expenses in the amount of $86,073. As of December 31, 2021, the amount has not been reimbursed to Innovest. Our Chairman Daniel Martin was the CEO of Innovest when the funds were advanced. Imputed interest is calculated on an annual basis at the market rate and is estimated to equal $516 as of December 31, 2021.
11. COMMITMENTS AND CONTINGENCIES
There are no material pending legal proceedings to which we are a party to, nor are there any such proceedings known to be contemplated by governmental authorities. None of our directors, officers, or affiliates is involved in a proceeding adverse to our business or has a material interest adverse to our business.
NOVACCESS GLOBAL, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
DECEMBER 31, 2021 AND 2020
12. RELATED PARTY TRANSACTIONS
On September 4, 2020, the Company entered into a management services agreement (the “Agreement”) with TN3, LLC. Pursuant to the Agreement, TN3 will provide NovAccess with office space in Chesterland, Ohio and management, administrative, marketing, bookkeeping and IT services for a fee of $30,000 a month. The initial term of the Agreement is three years, with subsequent one-year renewals. During the three months ended December 31, 2021, $40,000 was paid to TN3 in relation to this Agreement with the balance of $340,852 reported as the outstanding payable amount.
TN3 holds all of our outstanding preferred stock and is owned by Daniel G. Martin, our chief executive officer at the time of this transaction, and the sole member of our board of directors as of the period ended December 31, 2021.
On October 4, 2021, the Company issued 10,000 shares of common stock to Neil J. Laird to compensate him for serving as our chief financial officer. The stock-based compensation expense in the amount of $8,000 was reported on the Company’s financial statements for the three months ended December 31, 2022.
13. SUBSEQUENT EVENTS
Management has evaluated subsequent events as of February 17, 2022, the date the consolidated financial statement datestatements were available to be issued according to the requirements of ASC TOPIC 855 and has the following subsequent events to report.topic 855.
On January 11, 2018, XsunX, Inc. (the “Company”) issued a 10% unsecured convertible promissory note (the “Note”), and31, 2022, NovAccess entered into a Securities Purchase Agreementpreferred stock redemption agreement (the “Purchase Agreement”“Agreement”) with an accredited investorTN3, LLC (“TN3”), Mr. Daniel G. Martin, Irvin Consulting, LLC (“IC”), and Dr. Dwain Morris-Irvin. Mr. Martin is our chairman of the board and owns TN3. Dr. Irvin is our chief executive officer and owns IC.
TN3 owns 25,000 shares of our Series B Convertible Preferred Stock, $0.01 par value per share (the “Lender”“Shares”). Each Share is convertible at the option of TN3 into 10,000 shares of our common stock and entitles TN3 to cast 40,000 votes on any action presented to our shareholders. Pursuant to the Agreement, we will redeem 24,400 of the Shares and IC will purchase 600 of the Shares.
To redeem the preferred shares, we will pay TN3 a total of $250,000 over a period of ten months, with payment accelerated if the company raises significant capital. Currently, we owe TN3 $340,852 (see note 12 for more details) under a management services agreement. Pursuant to the Agreement, TN3 will agree to forgo these amounts and the parties will terminate the management agreement. IC will pay NovAccess $6,000 to reimburse the company for IC’s share of the purchase price.
In addition to the cash payments, we will issue to TN3 1,502,670 unregistered common shares, which is equal to 10% of the outstanding common stock of NovAccess on the date the Agreement was signed. Pursuant to their terms, the Shares are convertible into 250,000,000 shares of common stock. IC will pay NovAccess $1,223 to reimburse the company for IC’s share of the common stock portion of the purchase price.
Upon completion of the redemption, Mr. Martin will resign from the NovAccess board and be replaced by Dr. Irvin and John Cassarini. In addition, IC will own 600 Shares but there will be no other shares of NovAccess preferred stock outstanding.
Subsequent to the fiscal quarter ended December 31, 2021, 290,000 shares of common stock were issued by the Company for investment in the Company by various private investors.
On February 15, 2022, NovAccess Global Inc. (“NovAccess” or the “company”), entered into a securities purchase agreement (the “SPA”) with AJB Capital Investments, LLC (“AJB”) and issued a promissory note in the principal amount of $52,000$250,000 (the “Note”“note”) which transactionsto AJB pursuant to the SPA. The loan closed uponand was funded on February 16, 2022. NovAccess will use the advancedproceeds of the principal amount on January 16, 2018. The Note matures on October 20, 2018. The Company has the right to redeem a portion or all amounts outstanding under the Note prior to one hundred and eighty-one days from issuance of the Note under a variable redemption rate premium. After one hundred and eighty days the holder may convert into shares of common stock at a conversion price to be 65% of the average of the two lowest dollar volume weighted average price (“VWAP”) occurring during the fifteen trading days preceding any conversion date by Holder. Upon closing of the transaction, the Company agreed to allow the Investor to retain $2,000 of the advanced sumloan for Lenders legal expenses. The Lender agreed that so long as the Note remains outstanding, the Lender, and the Lenders affiliates, will not enter into or effect “short sales” transactions of the common stock which would established a short position with respect to the common shares of the Company.general working capital purposes.
NOVACCESS GLOBAL, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
DECEMBER 31, 2021 AND 2020
13. SUBSEQUENT EVENTS (Continued)
The note has an original issuance discount of 10% of the principal and bears interest at 10% a year. The note is due on August 15, 2022 but may be extended for six months by NovAccess. NovAccess may prepay the note at any time without penalty. Under the terms of the note, NovAccess may not sell a significant portion of its assets without the approval of AJB, may not issue additional debt that is not subordinate to AJB, must comply with the company’s reporting requirements under the Securities Exchange Act of 1934, and must maintain the listing of the company’s common stock on the OTC Market or other exchange, among other restrictions and requirements. NovAccess’ failure to make required payments under the note or to comply with any of these covenants, among other matters, would constitute an event of default. Upon an event of default under the SPA or note, the note will bear interest at 20%, AJB may immediately accelerate the note due date, AJB may convert the amount outstanding under the note into shares of NovAccess common stock at a discount to the market price of the stock, and AJB will be entitled to its costs of collection, among other penalties and remedies.
NovAccess provided customary representations and covenants to AJB in the SPA. NovAccess’ breach of any representation or failure to comply with the covenants would constitute an event of default. Also pursuant to the SPA, NovAccess paid AJB a commitment fee of 300,000 unregistered shares of the company’s common stock (the “commitment fee shares”). If, after August 15, 2022 and before August 15, 2023, AJB has been unable to sell the commitment fee shares for $150,000, then AJB may require NovAccess to issue additional shares or pay cash in the amount of the shortfall. However, if NovAccess pays the note off before August 15, 2022, then the company may redeem 150,000 of the commitment shares for one dollar. Pursuant to the SPA, NovAccess also issued to AJB a common stock purchase warrant (the “warrant”) to purchase 500,000 shares of the company’s common stock for $1.50 a share. The warrant expires on February 15, 2027. NovAccess agreed to register the shares issuable upon exercise of the warrant no later than August 15, 2023. NovAccess entered into a security agreement with AJB (the “security agreement”) pursuant to which NovAccess granted to AJB a security interest in all of the company’s assets, including the equity of StemVax, LLC, securing NovAccess’ obligations under the SPA, note and warrant.
Item 2. Management’sManagement’s Discussion and Analysis of Financial Condition and Results of Operations.
Cautionary Statement Concerning Forward-Looking Statements
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements of historical fact,and the related notes included elsewhere in this Quarterly Report on Form 10-Q10-Q. In addition to historical consolidated financial information, the following discussion and analysis contains forward-looking statements. The presentation of future aspects of XsunX, Inc. (“XsunX”, the “Company” or “issuer”) found in these statements is subject to a number ofthat involve risks, uncertainties and uncertainties that could cause actual results to differ materially from those reflected in such statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. Without limiting the generality of the foregoing, words such as “may”, “will”, “expect”, “believe”, “anticipate”, “intend”, or “could” or the negative variations thereof or comparable terminology are intended to identify forward-looking statements.assumptions. Our actual results could differ materially from those anticipated by these forward-looking statements as a result of many factors, including those discussed under “Item 1A:Item 1A. Risk Factors” inFactors of our Form 10-K for the Company’s Annual Report on Form 10-K.fiscal year ended September 30, 2021.
We undertake no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.of this report. Readers should carefully review the factors described in other documents the Companythat NovAccess files from time to time with the Securities and Exchange Commission, including the Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K and Form 10-K/A filed by the Company and any Current Reports on Form 8-K filed by the Company.SEC.
Results of the Company’s results of operationsOperations for the periods presented. DueFirst Quarter of Fiscal 2022 Ended December 31, 2021 Compared to the Company’s change in primary business focus and new business opportunities these historical results may not necessarily be indicativeFirst Quarter of results to be expected for any future period. As such, future results of the Company may differ significantly from previous periods.
Revenue and Cost of Sale
The Company generated revenues in the three months ended December 31, 2017 and 2016 of $79,875 and $393,702 respectively. The decrease inno revenue during the three months ended December 31, 2017 was attributable to delays in commercial customer project financing that created a delay in our ability to close sales timely, and the election by a commercial canopy customer to postpone the project start date from the fourth quarter of 2017 to the first quarter of 2018. We anticipate that through our marketing efforts purchase interest, and sales, for our solar carport and energy storage systems will continue to improve and provide us with increased project flow that may result in more consistent period to period revenue growth results.
Research and $299,054, respectively. Thedevelopment expenses
In the first quarter of 2022 the Company incurred $42,399 in research and development expenses related to date has had minimal revenueactivities performed by Dr. Christopher Wheeler and cost of sales and anticipates continuingDr. Dwain K. Morris-Irvin related to generate revenues while workingpreparing the application to increase sales volumes as it matures the scope of the Company’s capabilities and brand awareness.obtain FDA approval to start human clinical trials for StemVax Glioblast (SVX-GB).
Selling, General and Administrative Expenses:
Selling, Generalgeneral and Administrativeadministrative (SG&A) expenses decreased by $9,455$1,119,960 during the three months ended December 31, 2017first quarter of fiscal 2022 to $117,465$279,930 as compared to $126,920$1,399,890 for the three months ended December 31, 2016.first quarter of fiscal 2021. The decrease in SG&A expenses was related primarily due to the Company experiencingrecognizing $846,000 in stock compensation expense in connection with the issuance of stock to our chief executive officer in fiscal 2021, as well as a decrease of $111,841 in administrative costs. Management expects SG&Aprofessional fees and outside services due to change in providers and timing of investors relations services, partially offset by increases in accounting and legal fees. Payroll expenses also decreased by $79,261 in fiscal 2022 due to increasea $50,000 bonus accrual for our CEO in future periods as the Company continuesfiscal 2021, outsourcing CFO services and allocating a portion of our CEO compensation to expand its marketing, sales,research and service efforts.development expenses in fiscal 2022.
Other Income/(Expenses):
Other net income decreased by $1,375,983 from other income of $1,555,004 for the three months ended December 31, 2017 was $70, comparedfirst quarter of fiscal 2021 to $31other income of $179,021 for the three months ended December 31, 2016.
Net Loss:
For the first quarter of fiscal 2022, our net loss was $179,021 as compared to a net income of $155,114 for the first quarter of fiscal 2021. The decrease in the amountnet income of $4,969, and$298,120 was due to a decrease in penalties of $200.net other income associated with the net change in derivative instruments estimated each period and increase in interest expense and other financing costs partially offset by a decrease in SG&A expenses in 2022.
Liquidity and Capital Resources
We had a working capital deficit atas of December 31, 20172021 of $870,442, as$3,825,367, compared to a working capital deficit of $919,717$3,762,214 as of September 30, 2017.2021. The decreaseincrease of $63,153 in working capital deficit of $49,275 was primarily the result of a decrease in cash, accounts receivable, prepaid expenses, accrued expenses, billing in excess of cost, convertible notes, and derivative liability withand cash, partially offset by an increase in accounts payable.payable, accrued expenses, and deferred compensation.
For the first quarter of fiscal 2022, our cash flow used by operating activities was $(49,849) for the three months ended December 31, 2017, as$190,070, compared to cash flowsflow provided inby operating activities of $110,007$116,737 for the three months ended December 31, 2016.first quarter of fiscal 2021. The net increase of $73,333 in cash flow used by operating activities was primarily due to a decreaselower gain on change in income.derivative liabilities and lower stock issuances partially offset by changes in assets and liabilities.
There was no cash flow provided by (usedby/(used in) investing activities for the three months ended December 31, 2017 and 2016 were $0, respectively.first quarter of fiscal 2022 or 2021.
Cash used in financing activities for the three months ended December 31, 2017 was $40,000, as compared to $0flow provided by financing activities was $34,101 for the three months endedfirst quarter of fiscal 2022, compared to cash used by financing activities of $124,368 during the first quarter of 2021. The decrease in cash flow provided by financing activities was primarily the result of repayment of certain convertible debt partially offset by cash provided by new borrowings as well as lower cash inflow from subscriptions.
The Company will need to raise additional funds to finance its ongoing operations, complete its Investigational New Drug (IND) application to the FDA and to make payments under its loan agreements. We expect this will require approximately $3.0 million through December 31, 2016. Our2022. We plan to raise this capital needs have primarily been met fromthrough the proceedsissuance of private placements, convertible notes, and initial revenues resulting from our change in business operations focused on the sale, design, and installation of Solar Photovoltaic (PV), and managed Energy Storage Systems (ESS) for commercial and industrial real-estate in in the period.
Off-Balance Sheet Arrangements
We do not have any off balance sheetrelationships with unconsolidated entities or financial partnerships such as entities often referred to as structured finance or special purpose entities that would have been established for the purpose of facilitating off-balance-sheet arrangements or for other contractually narrow or limited purposes. As a result, we are not exposed to any financing, liquidity, market or credit risk that are reasonably likely to have a current or future effect on our financial condition, revenues, result of operations, liquidity or capital expenditures.could arise if we had engaged in such relationships.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Because NovAccess is a “smaller reporting company” as defined by the Securities and Exchange Commission (the “SEC”) we are not required to provide quantitative and qualitative disclosures about market risk.
Item 4. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
Our management team, with the participation of our chief executive officer, Dwain K. Morris-Irvin, and chief financial officer, Neil J. Laird, evaluated the effectiveness of ourthe design and operation of NovAccess’ disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e)under the Securities Exchange Act) as of the Exchange Act).December 31, 2021. Based upon this evaluation, our chief executive officerMessrs. Morris-Irvin and chief financial officerLaird concluded that ourthe Company’s disclosure controls and procedures were not effective as of December 31, due to the existence of a material weakness in internal control over financial reporting primarily as a result of an audit adjustment relating to accounting for certain derivatives and other income. To remediate the issue, we are effectiveretaining an external accounting consulting firm to ensure that information required to be disclosed byassist us with the review and reporting of complex and unusual transactions.
Changes in the reports that we file or submitInternal Control Over Financial Reporting
Our senior management team is responsible for establishing and maintaining adequate internal control over financial reporting, defined under the Exchange Act is: (i) recorded, processed, summarizedas a process designed by, or under the supervision of, our principal executive and reported, within the time periods specified in the Commission’s rules and forms, and (ii) accumulated and communicated to our management, including our chief executive officer and chiefprincipal financial officer,officers, or personpersons performing similar functions, as appropriateand effected by our board, senior management and other personnel, to allow timely decisionsprovide reasonable assurance regarding required disclosure.
Because of its inherent limitations, internal control over Financial Reporting
Other than as reported above under Evaluation of Disclosure Controls and Procedures to address the material weakness, there were no changes in our internal control over financial reporting identified in connection with the evaluation required by the Securities Exchange Act that occurred during our secondfirst fiscal quarter that hashave materially affected, or isare reasonably likely to materially affect, our internal controlscontrol over financial reporting.
Part II - OTHER INFORMATION— Other Information
Item 1. Legal Proceedings.
We are not involved in any legal proceedings.
Item 1A. Risk FactorsFactors.
Please refer to the risk factors previously disclosed in the Registrant’slisted under Item 1A. Risk Factors of our Form 10-K filed withfor the Securities and Exchange Commission dated December 20, 2017. fiscal year ended September 30, 2021 for information relating to certain risk factors applicable to NovAccess.
Item 2. Unregistered Sales of Equity Securities and Use of ProceedsProceeds.
During the three months endedquarter end of December 31, 2017, the Company2021, we issued 273,701,864147,667 unregistered shares of our common stock upon partial conversionfor capital raising and compensatory purposes as described in more detail below.
On October 4, 2021, we issued 10,000 unregistered shares of a convertible notes in principal in the amountour common shares to Neil J. Laird to compensate him for serving as our chief financial officer. The issuance of $58,860, plus the accrued interest of $9,447.
On October 4, 2021 we issued 10,000 unregistered shares of our common stock to Letzhangout, LLC for accounting services provided to NovAccess. On October 4 and November 17, 2021, we issued 8,889 and 17,778 shares, respectively, of our unregistered shares to Satya Chillara, an employee of Darrow Associates, for investor relations services provided to NovAccess. The issuances of shares to our service providers were exempt from registration under Section 4(a)(2) of the Securities Act.
During the quarter end of December 31, 2021, we offered unregistered shares of our common stock in connection with the foregoing issuance.
Item 3. Defaults Upon Senior SecuritiesSecurities.
During the quarter ended December 31, 2021, NovAccess was not in material default with respect to any its indebtedness.
Item 4. Mining andMine Safety DisclosuresDisclosures.
We are not engaged in mining operations.
Item 5. Other informationInformation.
We have disclosed on Form 8-K all reportable events that occurred in the Company authorized the issuance of 49,519,014 shares of common stock upon the conversion of $8,560 of principal, and $1,344 of accrued interest to the holder of a 10% convertible note originally issued November 20, 2014. The securities above were offered and sold pursuant to an exemption from the registration requirements under Section 4(a) 2 of the Securities Act since among other things the transactions did not involve a public offering.quarter ended December 31, 2021.
Item 6. ExhibitsExhibits.
Exhibit | Description | |
31.1 | ||
31.2 | ||
32.1 | Certification Pursuant to Section 906 of the Sarbanes-Oxley Act | |
101 | The following materials from the NovAccess Global Inc. Quarterly Report on Form 10-Q for the period ended December 31, 2021, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets at December 31, 2021 and September 30, 2021, (ii) the Condensed Consolidated Statements of Operations for the Three Months Ended December 31, 2021 and December 31, 2020, (iii) the Condensed Consolidated Statements of Shareholders’ Deficit for the Three Months Ended December 31, 2021 and 2020, (iv) the Condensed Consolidated Statements of Cash Flows for the Three Months Ended December 31, 2021 and December 31, 2020, and (v) Related Notes to the Condensed Consolidated Financial Statements. | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL | |
Signatures
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrantregistrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
NovAccess Global Inc. | |
Date: February 17, 2022 | /s/ Dwain K. Morris-Irvin |
Dwain K. Morris-Irvin, Chief Executive Officer | |
(Principal Executive Officer) | |
Date: February 17, 2022 | /s/ Neil J. Laird |
Neil J. Laird, Chief Financial Officer | |
(Principal |