x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE EXCHANGE ACT OF 1934 |
POWER3 MEDICAL PRODUCTS, INC. |
(Exact name of registrant as specified in its charter) |
New York | 65-0565144 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
26022 Budde Road The Woodlands, Texas 77380 | ||
(Address of Principal Executive Offices) |
(281) 298-7944 | ||
( Area Code) |
Large accelerated filer | Accelerated filer |
Non-accelerated filer (Do not check if a smaller reporting company) | Smaller reporting company x |
Page | |||
PART I – FINANCIAL INFORMATION | |||
Item 1. | Financial Statements | 1 | |
Balance Sheets at | 1 | ||
Statements of Operations for the three | 2 | ||
Statements of Stockholders’ Deficit for all years subsequent to May 18, 2004 (date of entering development stage) and the | 3 | ||
Statements of Stockholders’ Deficit – Other Equity Items for all years subsequent to May 18, 2004 (date of entering development stage) and the | 4 | ||
Statements of Cash Flows for the | 5 | ||
Notes to Financial Statements (unaudited) | 6 | ||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 24 | |
Item 4T. | Controls and Procedures | 30 | |
PART II – OTHER INFORMATION | |||
Item 1. | Legal Proceedings | 31 | |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 33 | |
Item 6. | Exhibits | 34 |
Power3 Medical Products, Inc. |
(A Development Stage Entity) |
Balance Sheets |
March 31, | ||||||||
2011 | December 31, | |||||||
(Unaudited) | 2010 | |||||||
Assets | ||||||||
Cash and equivalents | $ | - | $ | - | ||||
Other current assets | - | - | ||||||
Total current assets | - | - | ||||||
Property and equipment, net of accumulated depreciation of $108,577 and $108,461 at March 31, 2011 and December 31, 2010, respectively | 2,012 | 2,128 | ||||||
Deposits | 11,332 | 11,332 | ||||||
Other assets | 100 | 100 | ||||||
Total assets | $ | 13,444 | $ | 13,560 | ||||
Liabilities and stockholders’ deficit | ||||||||
Accounts payable | $ | 1,288,751 | $ | 1,643,510 | ||||
Accounts payable – related party | 525,701 | 525,701 | ||||||
Notes payable – related party | 225,933 | 154,482 | ||||||
Notes payable – in default | 501,000 | 501,000 | ||||||
Notes payable – in default – related party | 80,000 | 80,000 | ||||||
Convertible debentures – in default | 272,176 | 303,853 | ||||||
Derivative liabilities | 629,171 | 1,460,472 | ||||||
Other current liabilities | 819,871 | 788,225 | ||||||
Total current liabilities | 4,342,603 | 5,457,243 | ||||||
Total liabilities | 4,342,603 | 5,457,243 | ||||||
Stockholders’ deficit: | ||||||||
Preferred Stock – $0.001 par value: 50,000,000 shares authorized; 1,500,000 shares issued and outstanding as of March 31, 2011 and December 31, 2010, respectively | 1,500 | 1,500 | ||||||
Common Stock – $0.001 par value: 600,000,000 shares authorized; 513,271,617 and 472,237,565 shares issued and outstanding as of March 31, 2011 and December 31, 2010, respectively | 513,272 | 472,237 | ||||||
Additional paid-in capital | 73,833,040 | 72,994,212 | ||||||
Treasury stock | (16,000 | ) | (16,000 | ) | ||||
Common stock payable | 135,000 | 135,000 | ||||||
Deficit accumulated during development stage | (67,114,471 | ) | (67,349,132 | ) | ||||
Deficit accumulated before entering development stage | (11,681,500 | ) | (11,681,500 | ) | ||||
Total stockholders’ deficit | (4,329,159 | ) | (5,443,683 | ) | ||||
Total liabilities and stockholders’ deficit | $ | 13,444 | $ | 13,560 |
June 30, | ||||||||
2010 | December 31, | |||||||
(Unaudited) | 2009 | |||||||
Assets | ||||||||
Cash and equivalents | $ | 2,541 | $ | - | ||||
Total current assets | 2,541 | - | ||||||
Property and equipment, net of accumulated depreciation of $108,264 and $107,581 at June 30, 2010 and December 31, 2009, respectively | - | 683 | ||||||
Deposits | 11,332 | 5,000 | ||||||
Other assets | 100 | 100 | ||||||
Total assets | $ | 13,973 | $ | 5,783 | ||||
Liabilities and stockholders' deficit | ||||||||
Accounts payable | $ | 1,101,580 | $ | 999,631 | ||||
Accounts payable – related party | 303,118 | 96,507 | ||||||
Notes payable – in default | 451,000 | 451,000 | ||||||
Notes payable – related party | 15,000 | 15,000 | ||||||
Convertible debentures – in default | 351,255 | 351,255 | ||||||
Convertible debentures, net of unamortized discount of $-0- and $21,621 at June 30, 2010 and December 31, 2009, respectively | 50,000 | 28,379 | ||||||
Convertible debentures – related party | 30,000 | 30,000 | ||||||
Derivative liabilities | 3,876,069 | 14,456,424 | ||||||
Other current liabilities | 759,402 | 593,891 | ||||||
Total current liabilities | 6,937,424 | 17,022,087 | ||||||
Total liabilities | 6,937,424 | 17,022,087 | ||||||
Stockholders' deficit: | ||||||||
Preferred Stock – $0.01 par value: 50,000,000 shares authorized; 1,500,000 shares issued and outstanding as of June 30, 2010 and December 31, 2009, respectively | 1,500 | 1,500 | ||||||
Common Stock – $0.001 par value: 600,000,000 shares authorized; 467,797,313 and 434,167,000 shares issued and outstanding as of June 30, 2010 and December 31, 2009, respectively | 467,797 | 434,167 | ||||||
Additional paid-in capital | 72,744,226 | 71,984,083 | ||||||
Treasury stock | (16,000 | ) | (16,000 | ) | ||||
Common stock payable | 135,000 | 135,000 | ||||||
Deficit accumulated during development stage | (68,574,474 | ) | (77,873,554 | ) | ||||
Deficit accumulated before entering development stage | (11,681,500 | ) | (11,681,500 | ) | ||||
Total stockholders' deficit | (6,923,451 | ) | (17,016,304 | ) | ||||
Total liabilities and stockholders' deficit | $ | 13,973 | $ | 5,783 |
Power3 Medical Products, Inc. |
(A Development Stage Entity) |
Statements of Operations |
Period From | ||||||||||||
May 18, 2004 | ||||||||||||
For the Three Months Ended | Through | |||||||||||
March 31, | March 31, | |||||||||||
2011 | 2010 | 2011 | ||||||||||
Net revenue | $ | - | $ | - | $ | 542,249 | ||||||
Operating expenses: | ||||||||||||
Employee compensation and benefits | 31,250 | 34,918 | 31,598,092 | |||||||||
Professional and consulting fees | 382,761 | 245,001 | 18,053,409 | |||||||||
Impairment of goodwill | - | - | 13,371,776 | |||||||||
Other selling, general and administrative expenses | 61,986 | 177,742 | 2,716,134 | |||||||||
Total operating expenses | 475,997 | 457,661 | 65,739,411 | |||||||||
Loss from operations | (475,997 | ) | (457,661 | ) | (65,197,162 | ) | ||||||
Other income: | ||||||||||||
Derivative gain | 752,811 | 10,703,695 | 7,725,815 | |||||||||
Loss on settlement of litigation | - | - | (267,865 | ) | ||||||||
Interest income | - | - | 7,867 | |||||||||
Gain (loss) on settlement of debt | (20,263 | ) | - | 1,562,609 | ||||||||
Interest expense | (21,890 | ) | (49,198 | ) | (5,809,116 | ) | ||||||
Mandatory prepayment penalty | - | - | (420,000 | ) | ||||||||
Other expense | - | - | (194,886 | ) | ||||||||
Total other income | 710,658 | 10,654,497 | 2,604,424 | |||||||||
Net income (loss) | 234,661 | 10,196,836 | (62,592,738 | ) | ||||||||
Deemed dividend | - | - | (1,140,760 | ) | ||||||||
Net income (loss) attributable to common stockholders | $ | 234,661 | $ | 10,196,836 | $ | (63,733,498 | ) | |||||
Net income per share - basic | $ | 0.00 | $ | 0.02 | ||||||||
Net income per share - diluted | $ | 0.00 | $ | 0.02 | ||||||||
Weighted average number of shares outstanding - basic | 486,993,960 | 478,823,366 | ||||||||||
Weighted average number of shares outstanding - diluted | 510,842,272 | 500,029,456 |
Period From | ||||||||||||||||||||
May 18, 2004 | ||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | Through | ||||||||||||||||||
June 30, | June 30, | June 30, | ||||||||||||||||||
2010 | 2009 | 2010 | 2009 | 2010 | ||||||||||||||||
Net revenue | $ | - | $ | 35,711 | $ | - | $ | 168,477 | $ | 542,249 | ||||||||||
- | ||||||||||||||||||||
Operating expenses: | - | |||||||||||||||||||
Employee compensation and benefits | 36,789 | 258,737 | 71,707 | 276,294 | 31,489,286 | |||||||||||||||
Professional and consulting fees | 679,562 | 544,518 | 986,514 | 625,335 | 17,215,283 | |||||||||||||||
Impairment of goodwill | - | - | - | - | 13,371,776 | |||||||||||||||
Other selling, general and administrative expenses | - | 47,102 | 162,848 | 150,534 | 2,349,169 | |||||||||||||||
- | ||||||||||||||||||||
Total operating expenses | 716,351 | 850,357 | 1,221,069 | 1,052,163 | 64,425,514 | |||||||||||||||
- | ||||||||||||||||||||
Loss from operations | (716,351 | ) | (814,646 | ) | (1,221,069 | ) | (883,686 | ) | (63,883,265 | ) | ||||||||||
Other income (expense): | ||||||||||||||||||||
Derivative gain (loss) | (123,340 | ) | 589,693 | 10,580,355 | (156,651 | ) | 4,557,407 | |||||||||||||
Gain on legal settlement | - | - | - | - | 36,764 | |||||||||||||||
Interest income | - | - | - | - | 7,867 | |||||||||||||||
Gain (loss) on settlement of debt | - | (124,295 | ) | - | (1,008,029 | ) | 1,582,872 | |||||||||||||
Interest expense | (23,528 | ) | (137,739 | ) | (60,206 | ) | (314,835 | ) | (5,739,500 | ) | ||||||||||
Mandatory prepayment penalty | - | - | - | - | (420,000 | ) | ||||||||||||||
Other income/(expense) | - | - | - | - | (194,886 | ) | ||||||||||||||
Total other income (expense) | (146,868 | ) | 327,659 | 10,520,149 | (1,479,515 | ) | (169,476 | ) | ||||||||||||
Net income (loss) | (863,219 | ) | (486,987 | ) | 9,299,080 | (2,363,201 | ) | (64,052,741 | ) | |||||||||||
Deemed dividend | - | - | - | (34,103 | ) | (1,140,760 | ) | |||||||||||||
Net income (loss) attributable to common stockholders | $ | (863,219 | ) | $ | (486,987 | ) | $ | 9,299,080 | $ | (2,397,304 | ) | $ | (65,193,501 | ) | ||||||
Net income (loss) per share - basic | $ | (0.00 | ) | $ | (0.00 | ) | $ | 0.02 | $ | (0.01 | ) | |||||||||
Net income (loss) per share - diluted | $ | (0.00 | ) | $ | (0.00 | ) | $ | 0.02 | $ | (0.01 | ) | |||||||||
Weighted average number of shares outstanding - basic | 442,685,225 | 335,461,585 | 440,432,559 | 267,016,937 | ||||||||||||||||
Weighted average number of shares outstanding - diluted | 442,685,225 | 335,461,585 | 459,652,702 | 267,016,937 |
Power3 Medical Products, Inc. |
(A Development Stage Entity) |
Statement of Stockholders’ Deficit |
Additional | ||||||||||||||||||||||||||||||||
Common Stock | Preferred Stock | Paid-in | Other Equity | Accumulated | ||||||||||||||||||||||||||||
Shares | Par Value | Shares | Par Value | Capital | Items (1) | Deficit | Total | |||||||||||||||||||||||||
Balances as of Beginning of Development Stage -- May 18, 2004 | 14,407,630 | $ | 14,407 | 3,870,000 | $ | 3,870 | $ | 14,225,974 | $ | - | $ | (11,681,500 | ) | $ | 2,562,751 | |||||||||||||||||
- | ||||||||||||||||||||||||||||||||
Issued shares for compensation | 27,945,000 | 27,945 | - | - | 25,423,555 | (25,451,500 | ) | - | - | |||||||||||||||||||||||
Issued shares for services | 4,910,000 | 4,910 | - | - | 4,850,090 | (535,000 | ) | - | 4,320,000 | |||||||||||||||||||||||
Issued shares for acquisition of equipment | 15,000,000 | 15,000 | - | - | 13,485,000 | - | - | 13,500,000 | ||||||||||||||||||||||||
Stock option expense | - | - | - | - | 626,100 | (626,100 | ) | - | - | |||||||||||||||||||||||
Issued shares for cash | 242,167 | 242 | - | - | 314,575 | - | - | 314,817 | ||||||||||||||||||||||||
Cancelled shares per cancellation agreement | (160,000 | ) | (160 | ) | - | - | (71,840 | ) | - | - | (72,000 | ) | ||||||||||||||||||||
Issued shares to convert Series A perferred shares to common shares | 3,000,324 | 3,001 | (3,870,000 | ) | (3,870 | ) | 3,377,974 | - | (3,380,975 | ) | (3,870 | ) | ||||||||||||||||||||
Stock based compensation | - | - | - | - | - | 8,311,012 | - | 8,311,012 | ||||||||||||||||||||||||
Net reclassification of derivative liabilities | - | - | - | - | (3,347,077 | ) | - | - | (3,347,077 | ) | ||||||||||||||||||||||
Net loss (from May 18, 2004 to December 31, 2004) | - | - | - | - | - | - | (15,236,339 | ) | (15,236,339 | ) | ||||||||||||||||||||||
Balance at December 31, 2004 | 65,345,121 | 65,345 | - | - | 58,884,351 | (18,301,588 | ) | (30,298,814 | ) | 10,349,294 | ||||||||||||||||||||||
Cancelled shares returned from employee | (1,120,000 | ) | (1,120 | ) | - | - | (1,307,855 | ) | - | - | (1,308,975 | ) | ||||||||||||||||||||
Issued shares for compensation | 140,000 | 140 | - | - | 41,860 | - | - | 42,000 | ||||||||||||||||||||||||
Issued shares for services | 850,000 | 850 | - | - | 155,150 | - | - | 156,000 | ||||||||||||||||||||||||
Amortize deferred compensation expense | - | - | - | - | - | 13,222,517 | - | 13,222,517 | ||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | (27,134,865 | ) | (27,134,865 | ) | ||||||||||||||||||||||
Balance at December 31, 2005 | 65,215,121 | 65,215 | - | - | 57,773,506 | (5,079,071 | ) | (57,433,679 | ) | (4,674,029 | ) | |||||||||||||||||||||
Issued shares for services | 2,449,990 | 2,449 | - | - | 311,865 | - | - | 314,314 | ||||||||||||||||||||||||
Issued shares for cash | 2,452,746 | 2,452 | - | - | 222,548 | - | - | 225,000 | ||||||||||||||||||||||||
Issued shares for compensation | 1,253,098 | 1,254 | - | - | 176,763 | - | - | 178,017 | ||||||||||||||||||||||||
Adoption of FAS 123R | - | - | - | - | (475,324 | ) | 475,324 | - | - | |||||||||||||||||||||||
Amortize deferred compensation expense | - | - | - | - | - | 4,603,747 | - | 4,603,747 | ||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | (6,415,969 | ) | (6,415,969 | ) | ||||||||||||||||||||||
Balance at December 31, 2006 | 71,370,955 | 71,370 | - | - | 58,009,358 | - | (63,849,648 | ) | (5,768,920 | ) | ||||||||||||||||||||||
Issued shares for services | 1,810,000 | 1,810 | - | - | 282,390 | - | - | 284,200 | ||||||||||||||||||||||||
Issued shares for conversion of debt | 22,265,224 | 22,264 | - | - | 606,412 | - | - | 628,676 | ||||||||||||||||||||||||
Issued shares for warrants exercised | 5,270,832 | 5,272 | - | - | 336,396 | - | - | 341,668 | ||||||||||||||||||||||||
Issued shares for cash | 7,630,625 | 7,632 | - | - | 992,818 | - | - | 1,000,450 | ||||||||||||||||||||||||
Placement agent fees | - | - | - | - | (58,500 | ) | - | - | (58,500 | ) | ||||||||||||||||||||||
Stock received | - | - | - | - | 100 | - | - | 100 | ||||||||||||||||||||||||
Unreturned shares | 5,000 | 5 | - | - | 4,495 | - | - | 4,500 | ||||||||||||||||||||||||
Deemed dividend | - | - | - | - | 17,635 | - | (17,635 | ) | - | |||||||||||||||||||||||
Net loss | - | - | - | - | - | - | (5,216,288 | ) | (5,216,288 | ) | ||||||||||||||||||||||
Balance at December 31, 2007 | 108,352,636 | 108,353 | - | - | 60,191,104 | - | (69,083,571 | ) | (8,784,114 | ) | ||||||||||||||||||||||
Common stock issued for services | 7,482,910 | 7,483 | - | - | 584,858 | - | - | 592,341 | ||||||||||||||||||||||||
Common stock issued for cash | 7,492,875 | 7,493 | - | - | 639,911 | - | - | 647,404 | ||||||||||||||||||||||||
Common stock issued for conversion of debt | 22,172,536 | 22,173 | - | - | 1,568,626 | - | - | 1,590,799 | ||||||||||||||||||||||||
Common stock issued for lawsuit settlement | 325,000 | 325 | - | - | 30,550 | - | - | 30,875 | ||||||||||||||||||||||||
Issued shares for payables | 2,133,333 | 2,133 | - | - | 186,867 | - | - | 189,000 | ||||||||||||||||||||||||
Common stock held in escrow | 2,000,000 | 2,000 | - | - | 18,000 | (20,000 | ) | - | - | |||||||||||||||||||||||
Preferred stock issued for services | - | - | 1,500,000 | 1,500 | 357,000 | - | - | 358,500 | ||||||||||||||||||||||||
Deemed dividends | - | - | - | - | 12,071 | - | (12,071 | ) | - | |||||||||||||||||||||||
Loss on related party debt conversion | - | - | - | - | (89,049 | ) | - | - | (89,049 | ) | ||||||||||||||||||||||
Common stock payable | - | - | - | - | - | 123,286 | - | 123,286 | ||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | (136,784 | ) | (136,784 | ) | ||||||||||||||||||||||
Balance at December 31, 2008 | 149,959,290 | 149,960 | 1,500,000 | 1,500 | 63,499,938 | 103,286 | (69,232,426 | ) | (5,477,742 | ) | ||||||||||||||||||||||
Common stock issued for conversion of debt | 150,701,039 | 150,701 | - | - | 2,154,621 | (82,944 | ) | - | 2,222,378 | |||||||||||||||||||||||
Common stock payable | - | - | - | - | - | 116,000 | - | 116,000 | ||||||||||||||||||||||||
Common stock issed upon exercise of warrants | 11,789,509 | 11,790 | - | - | 267,042 | - | - | 278,832 | ||||||||||||||||||||||||
Common stock issued for services | 112,201,562 | 112,201 | - | - | 4,403,503 | (14,286 | ) | - | 4,501,418 | |||||||||||||||||||||||
Common stock issued for cash | 11,515,600 | 11,516 | - | - | 73,640 | - | - | 85,156 | ||||||||||||||||||||||||
Return of common stock held in escrow | (800,000 | ) | (800 | ) | - | - | 800 | - | - | - | ||||||||||||||||||||||
Deemed dividends | - | - | - | - | 1,111,054 | - | (1,111,054 | ) | - | |||||||||||||||||||||||
Release of common stock held in escrow | - | - | - | - | 20,000 | 4,000 | - | 24,000 | ||||||||||||||||||||||||
Common stock rescinded for debt | (1,200,000 | ) | (1,200 | ) | - | - | - | (7,056 | ) | - | (8,256 | ) | ||||||||||||||||||||
Common stock contributed for debt payment | - | - | - | - | 276,558 | - | - | 276,558 | ||||||||||||||||||||||||
Options issued for services | - | - | - | - | 176,927 | - | - | 176,927 | ||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | (19,211,574 | ) | (19,211,574 | ) | ||||||||||||||||||||||
Balance at December 31, 2009 | 434,167,000 | 434,167 | 1,500,000 | 1,500 | 71,984,083 | 119,000 | (89,555,054 | ) | (17,016,304 | ) | ||||||||||||||||||||||
Common stock issued upon exercise of warrants | 36,799,358 | 36,799 | - | - | 197,735 | - | - | 234,534 | ||||||||||||||||||||||||
Common stock issued for services | 13,573,456 | 13,573 | - | - | 518,671 | - | - | 532,244 | ||||||||||||||||||||||||
Vesting of common stock issued for services | - | - | - | - | 280,000 | - | - | 280,000 | ||||||||||||||||||||||||
Common stock rescinded or canceled | (12,302,249 | ) | (12,302 | ) | - | - | 12,302 | - | - | - | ||||||||||||||||||||||
Imputed interest on no-interest loans | - | - | - | - | 1,421 | - | - | 1,421 | ||||||||||||||||||||||||
Net income | - | - | - | - | - | - | 10,524,422 | 10,524,422 | ||||||||||||||||||||||||
Balance at December 31, 2010 | 472,237,565 | $ | 472,237 | 1,500,000 | $ | 1,500 | $ | 72,994,212 | $ | 119,000 | $ | (79,030,632 | ) | $ | (5,443,683 | ) | ||||||||||||||||
Common stock issued for services | 16,986,799 | 16,987 | - | - | 287,687 | - | - | 304,674 | ||||||||||||||||||||||||
Common stock issued for settlement of debt and litigation | 27,747,253 | 27,748 | - | - | 463,914 | - | - | 491,662 | ||||||||||||||||||||||||
Common stock issued for cash | 300,000 | 300 | - | - | 2,700 | - | - | 3,000 | ||||||||||||||||||||||||
Common stock rescinded or canceled | (4,000,000 | ) | (4,000 | ) | - | - | 4,000 | - | - | - | ||||||||||||||||||||||
Imputed interest on no-interest loans | - | - | - | - | 2,037 | - | - | 2,037 | ||||||||||||||||||||||||
Settlement of derivative liability | - | - | - | - | 78,490 | - | - | 78,490 | ||||||||||||||||||||||||
Net income | - | - | - | - | - | - | 234,661 | 234,661 | ||||||||||||||||||||||||
Balance at March 31, 2011 (unaudited) | 513,271,617 | $ | 513,272 | 1,500,000 | $ | 1,500 | $ | 73,833,040 | $ | 119,000 | $ | (78,795,971 | ) | $ | (4,329,159 | ) |
Additional | ||||||||||||||||||||||||||||||||
Common Stock | Preferred Stock | Paid-in | Other Equity | Accumulated | ||||||||||||||||||||||||||||
Shares | Par Value | Shares | Par Value | Capital | Items (1) | Deficit | Total | |||||||||||||||||||||||||
Balances as of Beginning of Development Stage — May 18, 2004 | 14,407,630 | 14,407 | 3,870,000 | 3,870 | 14,225,974 | - | (11,681,500 | ) | 2,562,751 | |||||||||||||||||||||||
- | ||||||||||||||||||||||||||||||||
Issued shares for compensation | 27,945,000 | 27,945 | - | - | 25,423,555 | (25,451,500 | ) | - | - | |||||||||||||||||||||||
Issued shares for services | 4,910,000 | 4,910 | - | - | 4,850,090 | (535,000 | ) | - | 4,320,000 | |||||||||||||||||||||||
Issued shares for acquisition of equipment | 15,000,000 | 15,000 | - | - | 13,485,000 | - | - | 13,500,000 | ||||||||||||||||||||||||
Stock option expense | - | - | - | - | 626,100 | (626,100 | ) | - | - | |||||||||||||||||||||||
Issued shares for cash | 242,167 | 242 | - | - | 314,575 | - | - | 314,817 | ||||||||||||||||||||||||
Cancelled shares per cancellation agreement | (160,000 | ) | (160 | ) | - | - | (71,840 | ) | - | - | (72,000 | ) | ||||||||||||||||||||
Issued shares to convert Series A perferred shares to common shares | 3,000,324 | 3,001 | (3,870,000 | ) | (3,870 | ) | 3,377,974 | - | (3,380,975 | ) | (3,870 | ) | ||||||||||||||||||||
Stock based compensation | - | - | - | - | - | 8,311,012 | - | 8,311,012 | ||||||||||||||||||||||||
Net reclassification of derivative liabilities | - | - | - | - | (3,347,077 | ) | - | - | (3,347,077 | ) | ||||||||||||||||||||||
Net loss (from May 18, 2004 to December 31, 2004) | - | - | - | - | - | - | (15,236,339 | ) | (15,236,339 | ) | ||||||||||||||||||||||
Balance at December 31, 2004 | 65,345,121 | 65,345 | - | - | 58,884,351 | (18,301,588 | ) | (30,298,814 | ) | 10,349,294 | ||||||||||||||||||||||
Cancelled shares returned from employee | (1,120,000 | ) | (1,120 | ) | - | - | (1,307,855 | ) | - | - | (1,308,975 | ) | ||||||||||||||||||||
Issued shares for compensation | 140,000 | 140 | - | - | 41,860 | - | - | 42,000 | ||||||||||||||||||||||||
Issued shares for services | 850,000 | 850 | - | - | 155,150 | - | - | 156,000 | ||||||||||||||||||||||||
Amortize deferred compensation expense | - | - | - | - | - | 13,222,517 | - | 13,222,517 | ||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | (27,134,865 | ) | (27,134,865 | ) | ||||||||||||||||||||||
Balance at December 31, 2005 | 65,215,121 | 65,215 | - | - | 57,773,506 | (5,079,071 | ) | (57,433,679 | ) | (4,674,029 | ) | |||||||||||||||||||||
Issued shares for services | 2,449,990 | 2,449 | - | - | 311,865 | - | - | 314,314 | ||||||||||||||||||||||||
Issued shares for cash | 2,452,746 | 2,452 | - | - | 222,548 | - | - | 225,000 | ||||||||||||||||||||||||
Issued shares for compensation | 1,253,098 | 1,254 | - | - | 176,763 | - | - | 178,017 | ||||||||||||||||||||||||
Adoption of FAS 123R | - | - | - | - | (475,324 | ) | 475,324 | - | - | |||||||||||||||||||||||
Amortize deferred compensation expense | - | - | - | - | - | 4,603,747 | - | 4,603,747 | ||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | (6,415,969 | ) | (6,415,969 | ) | ||||||||||||||||||||||
Balance at December 31, 2006 | 71,370,955 | 71,370 | - | - | 58,009,358 | - | (63,849,648 | ) | (5,768,920 | ) | ||||||||||||||||||||||
Issued shares for services | 1,810,000 | 1,810 | - | - | 282,390 | - | - | 284,200 | ||||||||||||||||||||||||
Issued shares for conversion of debt | 22,265,224 | 22,264 | - | - | 606,412 | - | - | 628,676 | ||||||||||||||||||||||||
Issued shares for warrants exercised | 5,270,832 | 5,272 | - | - | 336,396 | - | - | 341,668 | ||||||||||||||||||||||||
Issued shares for cash | 7,630,625 | 7,632 | - | - | 992,818 | - | - | 1,000,450 | ||||||||||||||||||||||||
Placement agent fees | - | - | - | - | (58,500 | ) | - | - | (58,500 | ) | ||||||||||||||||||||||
Stock received | - | - | - | - | 100 | - | - | 100 | ||||||||||||||||||||||||
Unreturned shares | 5,000 | 5 | - | - | 4,495 | - | - | 4,500 | ||||||||||||||||||||||||
Deemed dividend | - | - | - | - | 17,635 | - | (17,635 | ) | - | |||||||||||||||||||||||
Net loss | - | - | - | - | - | - | (5,216,288 | ) | (5,216,288 | ) | ||||||||||||||||||||||
Balance at December 31, 2007 | 108,352,636 | 108,353 | - | - | 60,191,104 | - | (69,083,571 | ) | (8,784,114 | ) | ||||||||||||||||||||||
Common stock issued for services | 7,482,910 | 7,483 | - | - | 584,858 | - | - | 592,341 | ||||||||||||||||||||||||
Common stock issued for cash | 7,492,875 | 7,493 | - | - | 639,911 | - | - | 647,404 | ||||||||||||||||||||||||
Common stock issued for conversion of debt | 22,172,536 | 22,173 | - | - | 1,568,626 | - | - | 1,590,799 | ||||||||||||||||||||||||
Common stock issued for lawsuit settlement | 325,000 | 325 | - | - | 30,550 | - | - | 30,875 | ||||||||||||||||||||||||
Issued shares for payables | 2,133,333 | 2,133 | - | - | 186,867 | - | - | 189,000 | ||||||||||||||||||||||||
Common stock held in escrow | 2,000,000 | 2,000 | - | - | 18,000 | (20,000 | ) | - | - | |||||||||||||||||||||||
Preferred stock issued for services | - | - | 1,500,000 | 1,500 | 357,000 | - | - | 358,500 | ||||||||||||||||||||||||
Deemed dividends | - | - | - | - | 12,071 | - | (12,071 | ) | - | |||||||||||||||||||||||
Loss on related party debt conversion | - | - | - | - | (89,049 | ) | - | - | (89,049 | ) | ||||||||||||||||||||||
Common stock payable | - | - | - | - | - | 123,286 | - | 123,286 | ||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | (136,784 | ) | (136,784 | ) | ||||||||||||||||||||||
Balance at December 31, 2008 | 149,959,290 | 149,960 | 1,500,000 | 1,500 | 63,499,938 | 103,286 | (69,232,426 | ) | (5,477,742 | ) | ||||||||||||||||||||||
Common stock issued for conversion of debt | 150,701,039 | 150,701 | - | - | 2,154,621 | (82,944 | ) | - | 2,222,378 | |||||||||||||||||||||||
Common stock payable | - | - | - | - | - | 116,000 | - | 116,000 | ||||||||||||||||||||||||
Common stock issed upon exercise of warrants | 11,789,509 | 11,790 | - | - | 267,042 | - | - | 278,832 | ||||||||||||||||||||||||
Common stock issued for services | 112,201,562 | 112,201 | - | - | 4,403,503 | (14,286 | ) | - | 4,501,418 | |||||||||||||||||||||||
Common stock issued for cash | 11,515,600 | 11,516 | - | - | 73,640 | - | - | 85,156 | ||||||||||||||||||||||||
Return of common stock held in escrow | (800,000 | ) | (800 | ) | - | - | 800 | - | - | - | ||||||||||||||||||||||
Deemed dividends | - | - | 1,111,054 | - | (1,111,054 | ) | - | |||||||||||||||||||||||||
Release of common stock held in escrow | - | - | 20,000 | 4,000 | - | 24,000 | ||||||||||||||||||||||||||
Common stock rescinded for debt | (1,200,000 | ) | (1,200 | ) | - | - | (7,056 | ) | - | (8,256 | ) | |||||||||||||||||||||
Common stock contributed for debt payment | - | - | - | - | 276,558 | - | - | 276,558 | ||||||||||||||||||||||||
Options issued for services | - | - | - | - | 176,927 | - | - | 176,927 | ||||||||||||||||||||||||
Net loss | - | - | - | - | - | (19,211,574 | ) | (19,211,574 | ) | |||||||||||||||||||||||
Balance at December 31, 2009 | 434,167,000 | 434,167 | 1,500,000 | 1,500 | 71,984,083 | 119,000 | (89,555,054 | ) | (17,016,304 | ) | ||||||||||||||||||||||
Common stock issued upon exercise of warrants | 36,799,358 | 36,799 | - | - | 197,735 | - | - | 234,534 | ||||||||||||||||||||||||
Common stock issued for services | 9,133,204 | 9,133 | - | - | 410,106 | - | - | 419,239 | ||||||||||||||||||||||||
Vesting of common stock issued for services | - | - | - | - | 140,000 | - | - | 140,000 | ||||||||||||||||||||||||
Common stock rescinded or canceled | (12,302,249 | ) | (12,302 | ) | - | - | 12,302 | - | - | - | ||||||||||||||||||||||
Net income | - | - | - | - | - | - | 9,299,080 | 9,299,080 | ||||||||||||||||||||||||
Balance at June 30, 2010 | 467,797,313 | $ | 467,797 | $ | 1,500,000 | $ | 1,500 | $ | 72,744,226 | $ | 119,000 | $ | (80,255,974 | ) | $ | (6,923,451 | ) |
Power3 Medical Products, Inc. |
(A Development Stage Entity) |
Statement of Stockholders’ Deficit -- Other Equity Items |
Deferred Compensation Expense | Treasury Stock | Stock Held in Escrow | Common Stock Payable | Total | ||||||||||||||||
Balances as of Beginning of Development Stage -- May 18, 2004 | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Issued shares for compensation | (25,451,500 | ) | - | - | - | (25,451,500 | ) | |||||||||||||
Issued shares for services | (535,000 | ) | - | - | - | (535,000 | ) | |||||||||||||
Stock option expense | (626,100 | ) | - | - | - | (626,100 | ) | |||||||||||||
Stock based compensation | 8,311,012 | - | - | - | 8,311,012 | |||||||||||||||
Balance at December 31, 2004 | (18,301,588 | ) | - | - | - | (18,301,588 | ) | |||||||||||||
Amortize deferred compensation expense | 13,222,517 | - | - | - | 13,222,517 | |||||||||||||||
Balance at December 31, 2005 | (5,079,071 | ) | - | - | - | (5,079,071 | ) | |||||||||||||
Adoption of FAS 123R | 475,324 | - | - | - | 475,324 | |||||||||||||||
Amortize deferred compensation expense | 4,603,747 | - | - | - | 4,603,747 | |||||||||||||||
Balance at December 31, 2006 | - | - | - | - | - | |||||||||||||||
Balance at December 31, 2007 | - | - | - | - | - | |||||||||||||||
Stock held in escrow | - | - | (20,000 | ) | - | (20,000 | ) | |||||||||||||
Common stock payable | - | - | - | 123,286 | 123,286 | |||||||||||||||
Balance at December 31, 2008 | - | - | (20,000 | ) | 123,286 | 103,286 | ||||||||||||||
Common stock issued for conversion of debt | - | 7,056 | - | (90,000 | ) | (82,944 | ) | |||||||||||||
Common stock payable | - | - | - | 116,000 | 116,000 | |||||||||||||||
Common stock issued for services | - | - | - | (14,286 | ) | (14,286 | ) | |||||||||||||
Return of common stock held in escrow | - | (16,000 | ) | 16,000 | - | - | ||||||||||||||
Release of common stock held in escrow | - | - | 4,000 | - | 4,000 | |||||||||||||||
Common stock rescinded for debt | - | (7,056 | ) | - | - | (7,056 | ) | |||||||||||||
Balance at December 31, 2009 | - | (16,000 | ) | - | 135,000 | 119,000 | ||||||||||||||
Balance at December 31, 2010 | $ | - | $ | (16,000 | ) | $ | - | $ | 135,000 | $ | 119,000 | |||||||||
Balance at March 31, 2011 (unaudited) | $ | - | $ | (16,000 | ) | $ | - | $ | 135,000 | $ | 119,000 |
Deferred Compensation Expense | Treasury Stock | Stock Held in Escrow | Common Stock Payable | Total | ||||||||||||||||
Balances as of beginning of development stage May 18, 2004 | - | - | - | - | - | |||||||||||||||
Issued shares for compensation | (25,451,500 | ) | - | - | - | (25,451,500 | ) | |||||||||||||
Issued shares for services | (535,000 | ) | - | - | - | (535,000 | ) | |||||||||||||
Stock option expense | (626,100 | ) | - | - | - | (626,100 | ) | |||||||||||||
Stock based compensation | 8,311,012 | - | - | - | 8,311,012 | |||||||||||||||
Balance at December 31, 2004 | (18,301,588 | ) | - | - | - | (18,301,588 | ) | |||||||||||||
Amortize deferred compensation expense | 13,222,517 | - | - | - | 13,222,517 | |||||||||||||||
Balance at December 31, 2005 | (5,079,071 | ) | - | - | - | (5,079,071 | ) | |||||||||||||
Adoption of FAS 123R | 475,324 | - | - | - | 475,324 | |||||||||||||||
Amortize deferred compensation expense | 4,603,747 | - | - | - | 4,603,747 | |||||||||||||||
Balance at December 31, 2006 | - | - | - | - | - | |||||||||||||||
Balance at December 31, 2007 | - | - | - | - | - | |||||||||||||||
Stock held in escrow | - | - | (20,000 | ) | - | (20,000 | ) | |||||||||||||
Common stock payable | - | - | - | 123,286 | 123,286 | |||||||||||||||
Balance at December 31, 2008 | - | - | (20,000 | ) | 123,286 | 103,286 | ||||||||||||||
Common stock issued for conversion of debt | - | 7,056 | - | (90,000 | ) | (82,944 | ) | |||||||||||||
Common stock payable | - | - | - | 116,000 | 116,000 | |||||||||||||||
Common stock issued for services | - | - | - | (14,286 | ) | (14,286 | ) | |||||||||||||
Return of common stock held in escrow | - | (16,000 | ) | 16,000 | - | - | ||||||||||||||
Release of common stock held in escrow | - | - | 4,000 | - | 4,000 | |||||||||||||||
Common stock rescinded for debt | - | (7,056 | ) | - | - | (7,056 | ) | |||||||||||||
Balance at December 31, 2009 | - | (16,000 | ) | - | 135,000 | 119,000 | ||||||||||||||
Balance at June 30, 2010 | $ | - | $ | (16,000 | ) | $ | - | $ | 135,000 | $ | 119,000 |
Power3 Medical Products, Inc. |
(A Development Stage Entity) |
Statements of Cash Flows |
Period From | ||||||||||||
May 18, 2004 | ||||||||||||
For the Three Months Ended | Through | |||||||||||
March 31, | March 31, | |||||||||||
2011 | 2010 | 2011 | ||||||||||
(unaudited) | ||||||||||||
Cash flows from operating activities | ||||||||||||
Net income (loss) | $ | 234,661 | $ | 10,196,836 | $ | (52,068,316 | ) | |||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||||||
Gain on conversion of financial instruments | - | - | (1,579,670 | ) | ||||||||
Impairment of goodwill | - | - | 13,371,776 | |||||||||
Impairment of intangible assets | - | - | 179,788 | |||||||||
Loss on previously capitalized lease | - | - | 34,243 | |||||||||
Loss on settlement of litigation and debt | 20,263 | - | 629,521 | |||||||||
Amortization of debt discounts and deferred finance costs | - | 21,747 | 4,027,056 | |||||||||
Change in derivative liability, net of bifurcation | (752,811 | ) | (10,703,695 | ) | (19,567,866 | ) | ||||||
Stock issued for compensation and services | 304,674 | 70,000 | 40,094,179 | |||||||||
Debt issued for compensation and services | - | - | 1,028,927 | |||||||||
Stock issued for settlement of litigation and debt | - | - | 30,875 | |||||||||
Depreciation expense | 116 | 683 | 109,458 | |||||||||
Release of stock held in escrow | - | - | 24,000 | |||||||||
Other non-cash items | 2,037 | - | (30,054 | ) | ||||||||
Changes in operating assets and liabilities: | ||||||||||||
Prepaid expenses and other current assets | - | - | 186,084 | |||||||||
Deposits and other assets | - | - | 10,933 | |||||||||
Accounts payable and other liabilities | 116,609 | 188,025 | 5,398,035 | |||||||||
Net cash used in operating activities | (74,451 | ) | (226,404 | ) | (8,121,031 | ) | ||||||
Cash flows from investing activities | ||||||||||||
Increase in property and equipment | - | - | (147,158 | ) | ||||||||
Increase in other assets | - | - | (179,786 | ) | ||||||||
Net cash used in investing activities | - | - | (326,944 | ) | ||||||||
Cash flows from financing activities | ||||||||||||
Proceeds from sale of common stock | 3,000 | - | 2,352,327 | |||||||||
Borrowings on notes payable | - | - | 3,838,430 | |||||||||
Borrowings on notes payable – related party | 71,451 | - | 475,791 | |||||||||
Principal payments on notes payable | - | - | (122,478 | ) | ||||||||
Principal payments on notes payable – related party | - | - | (47,300 | ) | ||||||||
Proceeds from exercise of warrants | - | 234,534 | 747,900 | |||||||||
Stock rescinded for debt | - | - | - | |||||||||
Proceeds from issuance of convertible debt, warrants, and rights net of issuance cost | - | - | 1,200,709 | |||||||||
Net cash provided by financing activities | 74,451 | 234,534 | 8,445,379 | |||||||||
Net increase (decrease) in cash and equivalents | - | 8,130 | (2,596 | ) | ||||||||
Cash and equivalents, beginning of period | - | - | 2,596 | |||||||||
Cash and equivalents, end of period | $ | - | $ | 8,130 | $ | - | ||||||
Supplemental disclosure of cash flow information | ||||||||||||
Cash paid for interest | - | - | 59,840 | |||||||||
Cash paid for income taxes | - | - | - | |||||||||
Schedule of non-cash financing activities | ||||||||||||
Stock for conversion of debt – related party | - | - | 2,227,759 | |||||||||
Stock for subscriptions receivable | - | - | - | |||||||||
Warrants exercised for subscriptions receivable | - | - | - | |||||||||
Stock issued for common stock payable | - | - | - | |||||||||
Exchange of debt – related party | - | - | 214,075 | |||||||||
Exchange of convertible notes for stock | - | - | 2,525,070 | |||||||||
Stock issued for settlement of litigation and debt | 471,399 | 98,207 | 1,543,333 | |||||||||
Deemed dividend | - | - | 1,140,760 | |||||||||
Exchange of convertible preferred stock for common stock | - | - | 3,380,975 | |||||||||
Preferred stock issued for payables | - | - | 358,500 | |||||||||
Stock held in escrow | - | - | 20,000 | |||||||||
Stock contributed for debt payment | - | - | 276,558 | |||||||||
Return of stock held in escrow | - | - | 16,800 | |||||||||
Cashless exercise of warrants | - | - | 32,507 | |||||||||
Stock rescinded for debt | - | - | 8,256 | |||||||||
Stock rescinded or canceled | 4,000 | 12,302 | 16,302 | |||||||||
Settlement of derivative liability | 78,490 | - | 78,490 |
Period From | ||||||||||||
May 18, 2004 | ||||||||||||
For the Six Months Ended | Through | |||||||||||
June 30, | June 30, | |||||||||||
2010 | 2009 | 2010 | ||||||||||
(unaudited) | ||||||||||||
Cash flows from operating activities | ||||||||||||
Net income (loss) | $ | 9,299,080 | $ | (2,363,201 | ) | $ | (64,052,741 | ) | ||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||||||
(Gain) loss on conversion of financial instruments | - | 1,008,029 | (1,579,670 | ) | ||||||||
Impairment of goodwill | - | - | 13,371,776 | |||||||||
Impairment of intangible assets | - | - | 179,788 | |||||||||
Loss on previously capitalized lease | - | - | 34,243 | |||||||||
Amortization of debt discounts and deferred finance costs | 21,747 | 209,104 | 4,005,561 | |||||||||
Change in derivative liability, net of bifurcation | (10,580,355 | ) | 156,651 | (3,403,506 | ) | |||||||
Stock issued for compensation and services | 461,032 | 603,761 | 38,626,049 | |||||||||
Debt issued for compensation and services | - | - | 1,028,927 | |||||||||
Stock issued for settlement of lawsuit | - | - | 30,875 | |||||||||
Depreciation expense | 683 | 10,211 | 108,265 | |||||||||
Release of stock held in escrow | - | - | 24,000 | |||||||||
Other non-cash items | - | - | (34,933 | ) | ||||||||
Changes in operating assets and liabilities: | ||||||||||||
Prepaid expenses and other current assets | - | (18,939 | ) | 186,084 | ||||||||
Deposits and other assets | (6,332 | ) | (149 | ) | 17,265 | |||||||
Accounts payable and other liabilities | 572,152 | 338,348 | 3,952,826 | |||||||||
Net cash used in operating activities | (231,993 | ) | (56,185 | ) | (7,505,191 | ) | ||||||
Cash flows from investing activities | ||||||||||||
Increase in property and equipment | - | (52,500 | ) | (142,508 | ) | |||||||
Increase in other assets | - | - | (179,786 | ) | ||||||||
Net cash used in investing activities | - | (52,500 | ) | (322,294 | ) | |||||||
Cash flows from financing activities | ||||||||||||
Proceeds from sale of common stock | - | 35,000 | 2,349,327 | |||||||||
Borrowings on notes payable – related party | - | 8,256 | 95,376 | |||||||||
Borrowings on notes payable | - | 20,000 | 3,838,430 | |||||||||
Principal payments on notes payable – related party | - | - | (47,300 | ) | ||||||||
Principal payments on notes payable | - | - | (122,478 | ) | ||||||||
Proceeds from exercise of warrants | 234,534 | - | 513,366 | |||||||||
Stock rescinded for debt | - | (8,256 | ) | - | ||||||||
Proceeds from issuance of convertible debt, warrants, and rights net of issuance cost | - | 64,666 | 1,200,709 | |||||||||
Net cash provided by financing activities | 234,534 | 119,666 | 7,827,430 | |||||||||
Net increase (decrease) in cash and equivalents | 2,541 | 10,981 | (55 | ) | ||||||||
Cash and equivalents, beginning of period | - | 8,331 | 10,927 | |||||||||
Cash and equivalents, end of period | $ | 2,541 | $ | 19,312 | $ | 10,872 | ||||||
Supplemental disclosure of cash flow information | ||||||||||||
Cash paid for interest | - | - | 59,840 | |||||||||
Cash paid for income taxes | - | - | - | |||||||||
Schedule of non-cash financing activities | ||||||||||||
Stock for conversion of debt – related party | - | 661,101 | 2,227,759 | |||||||||
Stock for subscriptions receivable | - | 170,000 | - | |||||||||
Warrants exercised for subscriptions receivable | - | 4,166 | - | |||||||||
Stock issued for common stock payable | - | 22,286 | - | |||||||||
Exchange of debt – related party | - | - | 214,075 | |||||||||
Exchange of convertible notes for stock | - | - | 2,525,070 | |||||||||
Stock issued for settlement of payables | 98,207 | - | 876,881 | |||||||||
Deemed dividend | - | 34,103 | 1,140,760 | |||||||||
Exchange of convertible preferred stock for common stock | - | - | 3,380,975 | |||||||||
Preferred stock issued for payables | - | - | 358,500 | |||||||||
Stock held in escrow | - | 20,000 | 20,000 | |||||||||
Stock contributed for debt payment | - | 244,417 | 276,558 | |||||||||
Return of stock held in escrow | - | 16,000 | 16,800 | |||||||||
Cashless exercise of warrants | 32,374 | - | 32,507 | |||||||||
Stock rescinded for debt | - | - | 8,256 | |||||||||
Stock rescinded or canceled | 12,302 | - | 12,302 |
Asset | June 30, 2010 | December 31, 2009 | March 31, 2011 | December 31, 2010 | ||||||||||||
Computers and Related Devices | $ | 15,884 | $ | 15,884 | $ | 18,209 | $ | 18,209 | ||||||||
Less: Accumulated Depreciation | (15,884 | ) | (15,201 | ) | (16,197 | ) | (16,081 | ) | ||||||||
Total | -0- | 683 | 2,012 | 2,128 | ||||||||||||
Lab Equipment | 92,380 | 92,380 | 92,380 | 92,380 | ||||||||||||
Less: Accumulated Depreciation | (92,380 | ) | (92,380 | ) | (92,380 | ) | (92,380 | ) | ||||||||
Total | -0- | -0- | -0- | -0- | ||||||||||||
Total Property and Equipment, Net | $ | -0- | $ | 683 | $ | 2,012 | $ | 2,128 |
Liability | March 31, 2011 | December 31, 2010 | ||||||
Accrued Interest | $ | 384,507 | $ | 382,759 | ||||
Accrued Payroll Taxes | 23,574 | 23,574 | ||||||
Accrued Compensation and Salaries | 411,331 | 380,081 | ||||||
Other Accrued Expenses and Liabilities | 459 | 1,811 | ||||||
Total | $ | 819,871 | $ | 788,225 |
Liability | June 30, 2010 | December 31, 2009 | ||||||
Accrued interest and interest payable | $ | 362,689 | $ | 312,252 | ||||
Accrued payroll taxes | 17,416 | 21,464 | ||||||
Accrued compensation and salaries payable | 373,585 | 258,364 | ||||||
Other accrued expenses and liabilities | 5,712 | 1,811 | ||||||
Total | $ | 759,402 | $ | 593,891 |
June 30, 2010 | December 31, 2009 | |||||||
Common stock warrants | $ | 2,355,541 | $ | 10,267,167 | ||||
Embedded conversion features – convertible promissory notes and debentures | 1,520,528 | 4,189,257 | ||||||
Total | $ | 3,876,069 | $ | 14,456,424 |
March 31, 2011 | December 31, 2010 | |||||||
Common Stock Warrants | $ | 169,328 | $ | 513,028 | ||||
Convertible Promissory Notes and Debentures | 459,843 | 947,444 | ||||||
Total | $ | 629,171 | $ | 1,460,472 |
Dividend Yield | Expected Volatility | Risk-Free Interest Rate | Remaining Contractual Life (Years) | |||||||||||||
Common Stock Warrants | 0 | % | 111.9 | % | 1.09 | % | 2.06 | |||||||||
Convertible Promissory Notes and Debentures | 0 | % | 114.0 | % | 2.24 | % | 5.00 |
March 31, 2011 | December 31, 2010 | |||||||
Notes Payable | $ | -0- | $ | -0- | ||||
Notes Payable – Related Party | 225,933 | 154,482 | ||||||
Notes Payable – in Default | 501,000 | 501,000 | ||||||
Less: Unamortized Discount | -0- | -0- | ||||||
Total | 501,000 | 501,000 | ||||||
Notes Payable – in Default – Related Party | 80,000 | 80,000 | ||||||
Total Notes Payable, Net | $ | 806,933 | $ | 735,482 |
June 30, 2010 | December 31, 2009 | |||||||
Notes Payable – in Default | $ | 451,000 | $ | 451,000 | ||||
Notes Payable – Related Party | 15,000 | 15,000 | ||||||
Total Notes Payable, Net of Discount | $ | 466,000 | $ | 466,000 |
March 31, 2011 | December 31, 2010 | |||||||
Convertible Debentures – in Default | $ | 272,176 | $ | 303,853 | ||||
Total Convertible Debentures, Net | $ | 272,176 | $ | 303,853 |
June 30, 2010 | December 31, 2009 | |||||||
Convertible Debentures | $ | 50,000 | $ | 50,000 | ||||
Less: Unamortized Discount | -0- | (21,621 | ) | |||||
Total | 50,000 | 28,379 | ||||||
Convertible Debentures – in Default | 351,255 | 351,255 | ||||||
Convertible Debentures – Related Party | 30,000 | 30,000 | ||||||
Total Convertible Debentures, Net of Unamortized Discount | $ | 431,255 | $ | 409,634 |
Level 1 | Level 2 | Level 3 | ||||||||||
Derivative liabilities – March 31, 2011 | -0- | -0- | $ | 629,171 | ||||||||
Derivative liabilities – December 31, 2010 | -0- | -0- | $ | 1,460,472 |
Derivative Liabilities | ||||
Balance, December 31, 2009 | $ | 14,456,424 | ||
Purchases, sales, issuances and settlements (net) | (12,995,952 | ) | ||
Balance, December 31, 2010 | 1,460,472 | |||
Purchases, sales, issuances and settlements (net) | (831,301 | ) | ||
Balance, December 31, 2010 | $ | 629,171 |
● | our ability to fund future growth and implement our business strategy; |
● | our dependence on a limited number of business partners for substantially all of our revenue; |
● | projections of our future revenue, results of operations and financial condition; |
● | anticipated deployment, capabilities and uses of our products and our product development activities and product innovations; |
● | the importance of proteomics as a major focus of biology research; |
● | competition and consolidation in the markets in which we compete; |
● | existing and future collaborations and partnerships; |
● | the utility of biomarker discoveries; |
● | our belief that biomarker discoveries may have diagnostic and/or therapeutic utility; |
● | our ability to comply with applicable government regulations; |
● | our ability to expand and protect our intellectual property portfolio; |
● | the condition of the securities and capital markets; |
● | general economic and business conditions, either nationally or internationally or in the jurisdictions in which we are doing business; |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Exhibit No. | Exhibit | |||
31.1 | Certification of Chief Executive Officer of the registrant required by Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended | |||
31.2 | Certification of Chief Financial Officer of the registrant required by Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended | |||
32.1 | Certification of Chief Executive Officer and Chief Financial Officer of the registrant required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended |
POWER3 MEDICAL PRODUCTS, INC. | |
Date: | |
Helen R. Park | |
Chief Executive Officer |
Exhibit | Exhibit Description | |||
31.1 | Certification of Chief Executive Officer required by Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended | |||
31.2 | Certification of Chief Financial Officer required by Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended | |||
32.1 | Certification of Chief Executive Officer and Chief Financial Officer required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended |