UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

———————

FORM 10-Q

———————

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2022

þ

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM __________ TO __________

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2017


OR


¨

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM __________ TO __________

Commission File Number: 000-54129

——————————

EVOLUTIONARY GENOMICS, INC.

(Exact name of small business issuerregistrant as specified in its charter)

Nevada000-5412926-4369698

Nevada

26-4369698

(State of other jurisdiction of

incorporation or organization)

(Commission File Number)

(I.R.S. Employer

Identification No.)


1026 Anaconda4220 Morning Star Drive, Castle Rock, CO80108

(Address of principal executive officesPrincipal Executive Office)

Registrants telephone number, including zip code)area code: (720)900-8666

(720) 900-8666

(Issuer's telephone number)Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered
N/AN/AN/A

Securities registered pursuant to Section 12(g) of the Act: Common Stock, $.001 par value

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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. Yesþ  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). Yesþ  No ¨


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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¨

(Do not check if a smaller

Smaller reporting company þ

reporting company)

Emerging growth company ¨


If an emerging growth company, indicate by checkmark 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 checkmark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨Noþ


As of September 30, 2017,August 8, 2022, the Registrant had 5,881,8986,655,232 shares of common stock, $.001 par value, and 577,063 shares of Series A-1 preferred stock, $.001 par value and 189,337 shares of Series A-2 preferred stock, $.001 par value outstanding. The Registrant’s common stock trades on the OTC Markets under the trading symbol “FNAM”.

EVOLUTIONARY GENOMICS, INC.

 

INDEX






EVOLUTIONARY GENOMICS, INC.

INDEX

Page
Number

Page
Number

PART I.  FINANCIAL INFORMATION

Item 1.

Financial Statements

1

Condensed and Consolidated Balance Sheets as of SeptemberJune 30, 20172022 (unaudited) and December 31, 2016

2021

2

Condensed and Consolidated Statements of Operations, Three and NineSix Months ended SeptemberJune 30, 20172022 and 20162021 (unaudited)

3

Condensed and Consolidated Statements of Stockholders’ Deficit for the Quarterly Periods Ended June 30, 2022 and 2021 (unaudited)

4
Condensed and Consolidated Statements of Cash Flows, NineSix Months ended SeptemberJune 30, 20172022 and 20162021 (unaudited)

4

5

Notes to Condensed and Consolidated Financial Statements

5

6

Item 2.

Management's Discussion and Analysis of Financial Conditions and Results of Operations

13

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

16

19

Item 4.

Controls and Procedures

17

19

PART II. OTHER INFORMATION

Item 1.

Legal Proceedings

18

20

Item 1A.

Risk Factors

18

20

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

18

20

Item 3.

Defaults Upon Senior Securities

18

20

Item 4.

Mine Safety Disclosures.

18

20

Item 5.

Other Information

18

20

Item 6.

Exhibits

18

20







PART I. FINANCIAL STATEMENTS

ITEM 1.FINANCIAL STATEMENTS

ITEM 1.

FINANCIAL STATEMENTS

The accompanying financial statements have been prepared by Evolutionary Genomics, Inc., without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position of the Company as of SeptemberJune 30, 2017 and 20162022 and for the three and six month periods then ended June 30, 2022 and 2021 have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed and consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s December 31, 20162021 audited financial statements. The results of operations for these interim periods are not necessarily indicative of the results for the entire year.




1




Evolutionary Genomics, Inc. and Subsidiary

Condensed and Consolidated Balance Sheets

 

 

 

September 30,

 

 

December 31,

 

 

 

2017

 

 

2016

 

 

 

(unaudited)

 

 

 

 

A S S E T S

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash

 

$

631,058

 

 

$

2,057,548

 

Accounts receivable

 

 

 

 

 

9,289

 

Trading securities

 

 

545,817

 

 

 

64,299

 

Prepaid expenses

 

 

8,399

 

 

 

22,414

 

Total current assets

 

 

1,185,274

 

 

 

2,153,550

 

 

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

175,539

 

 

 

205,726

 

Intangible assets, net

 

 

4,041,447

 

 

 

4,043,398

 

Total non-current assets

 

 

4,216,986

 

 

 

4,249,124

 

Total assets

 

$

5,402,260

 

 

$

6,402,674

 

 

 

 

 

 

 

 

 

 

L I A B I L I T I E S  A N D  S T O C K H O L D E R S '  EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

24,324

 

 

$

46,064

 

Total current liabilities

 

 

24,324

 

 

 

46,064

 

 

 

 

 

 

 

 

 

 

Long-term liabilities

 

 

 

 

 

 

 

 

Deferred tax liability

 

 

1,485,683

 

 

 

1,485,683

 

Total liabilities

 

 

1,510,007

 

 

 

1,531,747

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Stock subject to possible redemption, $0.001 par value, 20,000,000 shares authorized

 

 

 

 

 

 

 

 

Series A-1 Convertible Preferred Stock, $0.001 par value; 600,000 shares authorized, 577,063 shares issued and outstanding; liquidation preference of $3,407,903

 

 

3,029,579

 

 

 

3,029,579

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

 

Common Stock, $0.001 par value; 780,000,000 shares authorized, 5,881,898 shares issued and outstanding

 

 

5,882

 

 

 

5,882

 

Preferred Stock

 

 

378,324

 

 

 

196,549

 

Additional paid-in capital

 

 

12,474,690

 

 

 

12,579,212

 

Accumulated deficit

 

 

(11,996,222

)

 

 

(10,940,295

)

Total stockholders' equity

 

 

862,674

 

 

 

1,841,348

 

Total liabilities and stockholders' equity

 

$

5,402,260

 

 

$

6,402,674

 



         
  June 30,  December 31, 
  2022  2021 
  (unaudited)    
ASSETS        
         
Current assets        
Cash $897,779  $214,009 
Prepaid expenses  26,457   41,792 
Total current assets  924,236   255,801 
         
Non-current assets        
Property and equipment, net  11,327   18,698 
Intangible assets, net  2,154,217   2,657,592 
Total non-current assets  2,165,544   2,676,290 
Total assets $3,089,780  $2,932,091 
         
LIABILITIES AND STOCKHOLDERS' DEFICIT        
         
Current liabilities        
Accounts payable and accrued expenses $93,844  $18,866 
Total current liabilities  93,844   18,866 
         
Long-term liabilities        
Notes payable  3,743,747   3,743,747 
Total liabilities  3,837,591   3,762,613 
         
Commitments and contingencies       
         
Preferred Stock subject to possible redemption, $0.001 par value, 20,000,000 authorized at June 30, 2022 and December 31, 2021        
Series A-1 Convertible Preferred Stock, $0.001 par value; 600,000 shares authorized, 577,063 shares issued and outstanding at June 30, 2022 and December 31, 2021; liquidation preference at June 30, 2022 of $4,557,483  3,029,579   3,029,579 
Series A-2 Convertible Preferred Stock, $0.001 par value; 200,000 shares authorized, 189,337 and 102,860 shares issued and outstanding at June 30, 2022 and December 31, 2021 respectively; liquidation preference at June 30, 2022 of $1,138,937  994,019   540,015 
Total preferred stock subject to possible redemption  4,023,598   3,569,594 
         
Stockholders' deficit        
Preferred Stock - accrued dividends  1,672,822   1,521,796 
Common Stock, $0.001 par value; 780,000,000 shares authorized, 6,655,232 and 5,881,898 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively  6,655   5,882 
Additional paid-in capital  12,482,548   11,949,702 
Accumulated deficit  (18,933,434)  (17,877,496)
Total stockholders' deficit  (4,771,409)  (4,400,116)
Total liabilities and stockholders' deficit $3,089,780  $2,932,091 





The accompanying notes are an integral part of the condensed and consolidated financial statements.


2




Evolutionary Genomics, Inc. and Subsidiary

Condensed and Consolidated Statements of Operations

(unaudited)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service and grant revenue

 

$

 

 

$

31,830

 

 

$

32,690

 

 

$

150,069

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

145,963

 

 

 

126,231

 

 

 

653,344

 

 

 

435,273

 

Salaries and benefits

 

 

62,144

 

 

 

69,437

 

 

 

209,755

 

 

 

194,903

 

General and administrative

 

 

60,253

 

 

 

70,770

 

 

 

210,329

 

 

 

227,633

 

Total operating expenses

 

 

268,360

 

 

 

266,438

 

 

 

1,073,428

 

 

 

857,809

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating (loss)

 

 

(268,360

)

 

 

(234,608

)

 

 

(1,040,738

)

 

 

(707,740

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income

 

 

8,738

 

 

 

3,231

 

 

 

5,468

 

 

 

7,743

 

Realized (loss) gain on the sale of investments

 

 

 

 

 

(1,524

)

 

 

 

 

 

7,175

 

Unrealized gain/(loss) on trading securities

 

 

6,421

 

 

 

(38,156

)

 

 

(20,657

)

 

 

(188,799

)

Total other (expenses)

 

 

15,159

 

 

 

(36,449

)

 

 

(15,189

)

 

 

(173,881

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(253,201

)

 

 

(271,057

)

 

 

(1,055,927

)

 

 

(881,621

)

Preferred stock dividend

 

 

(60,592

)

 

 

(59,688

)

 

 

(181,775

)

 

 

(131,764

)

Net loss attributable to common stockholders

 

$

(313,793

)

 

$

(330,745

)

 

$

(1,237,702

)

 

$

(1,013,385

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share, basic and diluted

 

$

(0.05

)

 

$

(0.06

)

 

$

(0.21

)

 

$

(0.17

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic and diluted

 

 

5,881,898

 

 

 

5,881,898

 

 

 

5,881,898

 

 

 

5,881,898

 

                 
  Three Months Ended  Six Months Ended 
  June 30,  June 30, 
  2022  2021  2022  2021 
             
Revenue $  $  $  $ 
                 
Operating expenses                
Research and development  106,178   136,199   205,267   233,014 
Salaries and benefits  115,686   92,429   209,645   184,859 
General and administrative  309,568   325,079   641,464   649,684 
Total operating expenses  531,432   553,707   1,056,376   1,067,557 
                 
Operating loss  (531,432)  (553,707)  (1,056,376)  (1,067,557)
                 
Other income:                
Investment income  359   6   438   114 
Total other income  359   6   438   114 
Loss before income taxes  (531,073)  (553,701)  (1,055,938)  (1,067,443)
Income taxes            
Net loss  (531,073)  (553,701)  (1,055,938)  (1,067,443)
Preferred stock dividends  (80,251)  (71,392)  (151,026)  (142,784)
Net loss attributable to common stockholders $(611,324) $(625,093) $(1,206,964) $(1,210,227)
                 
Net loss per common share, basic $(0.09) $(0.11) $(0.19) $(0.21)
Net loss per common share, diluted $(0.09) $(0.11) $(0.19) $(0.21)
                 
Weighted average common shares outstanding, basic  6,631,935   5,881,898   6,258,988   5,881,898 
Weighted average common shares outstanding, diluted  6,631,935   5,881,898   6,258,988   5,881,898 






The accompanying notes are an integral part of the condensed and consolidated financial statements.


3




Evolutionary Genomics, Inc. and Subsidiary

Condensed and Consolidated StatementsStatement of Cash Flows

(unaudited)Stockholders' Deficit

 

 

 

For the Nine Months Ended

 

 

 

September 30,

 

 

 

2017

 

 

2016

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(1,055,927

)

 

$

(881,621

)

Adjustments to reconcile net loss to net cash flows from operating activities

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

32,138

 

 

 

28,153

 

Stock-based compensation

 

 

77,253

 

 

 

69,903

 

Realized gain on sale of trading securities

 

 

 

 

 

(7,175

)

Unrealized loss on trading securities

 

 

20,657

 

 

 

188,799

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

9,289

 

 

 

(15,682

)

Prepaid expenses

 

 

14,015

 

 

 

12,580

 

Accounts payable and accrued expenses

 

 

(21,740

)

 

 

(129,279

)

Billings in excess of costs

 

 

 

 

 

(49,982

)

Cash flows from operating activities

 

 

(924,315

)

 

 

(784,304

)

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchase of equipment

 

 

 

 

 

(103,195

)

Proceeds from sale of investments

 

 

 

 

 

1,418,184

 

Proceeds from sale of investment in VetDC, Inc.

 

 

 

 

 

55,000

 

Purchase of trading securities, net

 

 

(502,175

)

 

 

(2,674,245

)

Cash flows from investing activities

 

 

(502,175

)

 

 

(1,304,256

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from issuance of Preferred Stock, net of offering expense

 

 

 

 

 

3,004,033

 

Cash flows from financing activities

 

 

 

 

 

3,004,033

 

 

 

 

 

 

 

 

 

 

Net change in cash

 

 

(1,426,490

)

 

 

915,473

 

 

 

 

 

 

 

 

 

 

Cash, beginning of period

 

 

2,057,548

 

 

 

3,823

 

 

 

 

 

 

 

 

 

 

Cash, end of period

 

$

631,058

 

 

$

919,296

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information

 

 

 

 

 

 

 

 

Preferred stock dividend accretion

 

$

181,775

 

 

$

131,764

 


                         
  Six Months Ended June 30, 2022 
  Common Stock  Preferred  Additional  Accumulated  Stockholders' 
  Shares  Amount  Dividend  Paid-In Capital  Deficit  Deficit 
                   
Balance, December 31, 2021  5,881,898  $5,882  $1,521,796  $11,949,702  $(17,877,496) $(4,400,116)
Common Stock issuance  733,333   733      549,267      550,000 
Stock compensation           56,459      56,459 
Preferred stock dividends        70,775   (70,775)      
Net loss              (524,865)  (524,865)
Balance, March 31, 2022  6,615,231  $6,615  $1,592,571  $12,484,653  $(18,402,361) $(4,318,522)
Option exercise  40,001   40      (40)      
Stock compensation           78,186      78,186 
Preferred stock dividends        80,251   (80,251)      
Net loss              (531,073)  (531,073)
Balance, June 30, 2022  6,655,232  $6,655  $1,672,822  $12,482,548  $(18,933,434) $(4,771,409)



  Six Months Ended June 30, 2021 
  Common Stock  Preferred  Additional  Accumulated  Stockholders' 
  Shares  Amount  Dividend  Paid-In Capital  Deficit  Deficit 
                   
Balance, December 31, 2020  5,881,898  $5,882  $1,236,228  $12,015,552  $(15,083,552) $(1,825,890)
Stock compensation           54,930      54,930 
Preferred stock dividends        71,392   (71,392)      
Net loss              (513,742)  (513,742)
Balance, March 31, 2021  5,881,898  $5,882  $1,307,620  $11,999,090  $(15,597,294) $(2,284,702)
Stock compensation           54,929      54,929 
Preferred stock dividends        71,392   (71,392)      
Net loss              (553,701)  (553,701)
Balance, June 30, 2021  5,881,898  $5,882  $1,379,012  $11,982,627  $(16,150,995) $(2,783,474)



The accompanying notes are an integral part of the condensed and consolidated financial statements.


4



Evolutionary Genomics, Inc. and Subsidiary


Condensed and Consolidated Statements of Cash Flows

For the Six Months ended June 30, 2022 and 2021

(unaudited)

         
  2022  2021 
Cash flows from operating activities:        
Net loss $(1,055,938) $(1,067,443)
Adjustments to reconcile net loss to net cash flows from operating activities        
Depreciation and amortization  510,746   519,408 
Stock-based compensation  134,645   109,859 
Changes in operating assets and liabilities:        
Prepaid expenses  15,335   20,464 
Accounts payable and accrued expenses  74,978   126,069 
Cash flows from operating activities  (320,234)  (291,643)
         
Cash flows from investing activities:        
Cash flows from investing activities      
         
Cash flows from financing activities:        
Proceeds from issuance of Common Stock  550,000    
Proceeds from issuance of Preferred Stock  454,004    
Proceeds from issuance of notes payable     76,395 
Cash flows from financing activities  1,004,004   76,395 
         
Net change in cash  683,770   (215,248)
         
Cash, beginning of period  214,009   215,836 
         
Cash, end of period $897,779  $588 
         
Supplemental cash flow information        
Preferred stock dividend accrual $151,026  $142,784 

The accompanying notes are an integral part of the consolidated financial statements.

EVOLUTIONARY GENOMICS, INC. AND SUBSIDIARY

NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS

SeptemberJUNE 30, 2017 2022 AND 2021

(Unaudited)


Note 1: Business Activity


Evolutionary Genomics, Inc. (the “Company,” “We,” or “Our”) has developed a technology platform, the Adapted Traits Platform (“ATP”), to identify commercially valuable genes that control important traits in animals and plants. We are using the ATP to identify genes to improve crop plant traits such as yield, sugar content, biomass, drought tolerance, and pest/disease resistance. Our platform identifies key genes that have changed successfully to impart new or improved traits.


TheIn the past, the Company performs itsperformed research on behalf of governmental organizations, non-profit foundations and commercial entities and receivesreceived revenue from grants and commercial research contracts. We have not received any revenue from these grant arrangements since early 2020. The Company now focuses on research projects that may lead to long-term licensing arrangements with agricultural seed companies and crop producers as with our soybean and banana projects. These grants/contracts contain fixed-fee arrangementsprojects take several years to develop and may also have licensing provisions upon effective commercialization of research results. Successfulsuccessful commercialization may take many years to produce license royalty payments. OwnershipOur banana project, in cooperation with Dole Food Company is an example that has resulted in notes payable funding for the development phase of intellectual property developedour banana genes and, if successful, may result in research projects varies froma long-term royalty bearing license once the Company retaining no rights to intellectual property, to joint ownership, to the Company retaining all rights.development phase is complete.


During 2014, the Company purchased 75.16% of the outstanding stock of Fona, Inc., (“Fona”) a public shell company. Since Fona was a public shell company which doesdid not constitute a business and the purchase was done in contemplation of a reverse merger, the Company accounted for the payment as a distribution to Fona Inc. shareholders. The Company also entered into an Agreement and Plan of Merger (the “Merger”), which was consummated on October 19, 2015. As a result of the Merger, Evolutionary Genomics, Inc. became a wholly owned subsidiary of Fona. For accounting purposes, the merger was treated as a reverse acquisition with Evolutionary Genomics, Inc. as the acquirer and Fona as the acquired party. Subsequent to the Merger, Fona Inc. was renamed Evolutionary Genomics, Inc. and our subsidiary was renamed from Evolutionary Genomics, Inc. to EG Crop Science, Inc.


On May 9, 2016, we formed ICAM Therapeutics, Inc. (a Delaware corporation) as a wholly owned subsidiary of Evolutionary Genomics, Inc. We have not incurred any transactions in this company nor have we established any business plan for the future.��


Note 2: Summary of Significant Accounting Policies


Basis of presentation: The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the SEC for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X.

The condensed consolidated balance sheet as of December 31, 2021, has been derived from the Company’s audited consolidated financial statements. The unaudited interim financial statements should be read in conjunction with the Company’s 2021 Form 10-K, which contains the Company’s audited financial statements and notes thereto, together with the Management’s Discussion and Analysis of Financial Condition and Results of Operations for the year ended December 31, 2021.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnote disclosures necessary for a comprehensive presentation of financial position, results of operations, and cash flows. It is management's opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation. The interim results for the six months and three months ended June 30, 2022 are not necessarily indicative of the financial condition and results of operations that may be expected for any future interim period or for the fiscal year ending December 31, 2022.

Principals of Consolidation: These condensed and consolidated financial statements include the accounts of Evolutionary Genomics, Inc. and its wholly owned subsidiaries.subsidiary. All material intercompany transactions and balances have been eliminated.


Use of Estimates: The preparation of condensed and consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed and consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates.


EVOLUTIONARY GENOMICS, INC. AND SUBSIDIARY

NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2022 AND 2021

(Unaudited)

Cash: The Company considers all highly liquid investments purchased with an original or remaining maturity of three months or less when purchased to be cash.


Accounts Receivable: Accounts receivable are carried at cost less an allowance for doubtful accounts, if an allowance is deemed necessary. On a periodic basis the Company evaluates its accounts receivable and determines the requirement for an allowance for doubtful accounts based upon the history of past write-offs, collections, and current credit conditions. A receivable is written off when it is determined that all reasonable collection efforts have been exhausted and the potential for recovery is considered remote. The Company recorded no allowance for doubtful accounts as of September 30, 2017 and December 31, 2016. Recoveries of receivables previously written off are recorded when received. The Company does not charge interest on past-due receivables.


Trading Securities: The Company’s short-term investments are comprised of equity securities, treasury bonds and bank certificates of deposit, all of which are classified as trading securities and are carried at their fair value based on the quoted market prices of the securities at September 30, 2017 and December 31, 2016. Net realized and unrealized gains and losses on trading securities are included in net earnings. For purpose of determining realized gains and losses, the cost of securities sold is based on specific identification.





5



EVOLUTIONARY GENOMICS, INC.

NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 (Unaudited)


Property and Equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is provided for by the straight-line method over three- to seven-year estimated useful lives offor software, furniture and fixtures and equipment. Maintenance and repairs are expensed as incurred; major renewals and betterments that extend the useful lives of property and equipment are capitalized. When property and equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is recognized.


Long-Lived Assets: The long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In the event that facts and circumstances indicate that the cost of any long-lived assets may be impaired, an evaluation of recoverability is performed. An impairment is considered to exist if the total estimated undiscounted cash flows are less than the carrying amount of the asset. An impairment loss is measured and recorded to the extent that the carrying amount of the asset exceeds its estimated fair value. No asset impairment was recorded during the ninesix months or three months ended SeptemberJune 30, 20172022 and 2016.2021.


Intangible Assets: Intangible assets include acquired research in progress and patents on the Company’s core technology for gene identification. Patents are amortized over their expected useful life of 20 years using the straight-line method. Acquired research in progress was placed into service on August 19, 2020 in conjunction with the Development and Commercialization Agreement and is an indefinite-lived intangible asset untilbeing amortized over four years consistent with the development is complete at which time the useful lifeterm of the asset will be assigned.Dole agreement using the straight-line method. Costs incurred to renew intangible assets are expensed in the period incurred, while costs incurred to extend the lives of patents are capitalized and amortized over the remaining useful life of the asset.


Revenue Recognition: The Intangible assets held and used by the Company recognizes revenue where persuasive evidenceare reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an arrangement exists, delivery has occurred,asset may not be recoverable. In the priceevent that facts and circumstances indicate that the cost of any intangible assets may be impaired, an evaluation of recoverability is fixed or determinable, and collectabilityperformed. An impairment is reasonably assured. Service revenuesconsidered to exist if the total estimated undiscounted cash flows are generally recognized as fees for service contracts, including payments for Company personnel on a per-day basis and reimbursement for subcontractors and supplies on a cost-incurred basis. Under our milestone-based contracts, consideration associated with at-risk substantive performance milestones is recognized as revenue uponless than the achievementcarrying amount of the related milestone, as defined inasset. NaN impairment was recorded during the respective contracts. All revenue for the ninesix months or three months ended SeptemberJune 30, 20172022 and 2016 was from sources inside the United States, was from contractual research projects and grants, and there was no licensing revenue. The Company recorded no other revenue for the nine months ended September 30, 2017 and 2016.2021.


In our Master Services Agreement with the Bill and Melinda Gates Foundation, we grant them a royalty-free license for use of intellectual property developed in low-income economies and lower-middle-income economies according to the World Bank classification and expressly excludes all of North America and Europe. The Company retains all rights to the use of intellectual property outside of these regions.


Income Taxes: Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Management regularly assesses the likelihood that deferred tax assets will be recovered from future taxable income, and to the extent management believes that it is more likely than not that a deferred tax asset will not be realized, a valuation allowance is established. When a valuation allowance is established, increased or decreased, an income tax charge or benefit is included in the condensed and consolidated financial statements and net deferred tax assets are adjusted accordingly. As of SeptemberJune 30, 20172022 and December 31, 2016,2021, a full valuation allowance has been established on the net deferred tax asset.


Under the Income Tax topic of the ASC, in order to recognize an uncertain tax benefit, the taxpayer must be more likely than not of sustaining the position, and the measurement of the benefit is calculated as the largest amount that is more than 50% likely to be realized upon resolution of the benefit. The Company has no accruals for uncertain tax benefits.


Stock-Based Compensation: The Company accounts for stock option awards in accordance with ASC 718. The estimated grant-date fair value of stock-based awards is expensed over the requisite service period, which is typically equivalent to the vesting term of the award.


The Company’s accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services received follows the provisions of ASC Topic 505-50.718. Accordingly, the measurement date for the fair value of the equity instruments issued is determined at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor’s performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement.



6



EVOLUTIONARY GENOMICS, INC.

NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 (Unaudited)

 

EVOLUTIONARY GENOMICS, INC. AND SUBSIDIARY

NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2022 AND 2021

(Unaudited)


Research and Development: Research and development costs are expensed as incurred. In instances where we enter into agreements with third parties for research and development activities, we may prepay for services at the initiation of the contract. We record the prepayment as a prepaid asset and amortize the asset into research and development expense over the period of time the contracted research and development services are performed.


Net Loss Per Common Share: Basic net (loss) incomeloss per common share excludes any dilutive effects of equity instruments. We compute basic net (loss) income per common share using the weighted average number of common shares outstanding during the period. We compute diluted net (loss) incomeloss per common share using the weighted average number of common shares and common stock equivalents outstanding during the period. For the ninesix and three months ended SeptemberJune 30, 2017,2022, common stock equivalents including 577,063766,400 shares of convertible preferred stock and options for 566,667 shares of common stock and warrants for 110,8841,028,333 shares of common stock were excluded because their effect was anti-dilutive.


Subsequent Events: The Company has evaluated all subsequent events through For the datesix and three months ended June 30, 2021, common stock equivalents including 679,923 shares of this filing.convertible preferred stock and options for 1,081,667 shares of common stock were excluded because their effect was anti-dilutive.


Note 3: New Accounting Standards


Recently AdoptedIssued Accounting Standards


In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements — Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”), which requires management to evaluate, in connection with preparing financial statements for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable) and provide related disclosures. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted. The adoption of this guidance did not have an impact on the condensed and consolidated financial statements.


In November 2014, the FASB issued ASU 2015-17, “Income Taxes (Topic 740) Related to the Balance Sheet Classification of Deferred Taxes,” which will require entities to present deferred tax assets (DTAs) and deferred tax liabilities (DTLs) as non-current in a classified balance sheet. The ASU simplifies the current guidance (ASC 740-10-45-4), which requires entities to separately present DTAs and DTLs as current and non-current in a classified balance sheet. The ASU is effective for annual reporting periods beginning on or after December 15, 2016, and interim periods within those annual periods. Adoption has not had a material impact on the condensed and consolidated financial statements.


In MarchJune 2016, the FASB issued ASU No. 2016-09, "Compensation—Stock Compensation (Topic 718)." This standard makes several modifications2016-13, “Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments,” which requires entities to Topic 718 related to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. ASU 2016-09 also clarifies the statement of cash flows presentationestimate all expected credit losses for certain componentstypes of share-based awards.financial instruments, including trade receivables, held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The standard is effectiveupdated guidance also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. We have adopted this standard and it did not have a material impact onestimating expected credit losses over the condensed and consolidated financial statements.


Recently Issued Accounting Standards


In May 2014, and further amended in August 2015, March 2016 and April 2016, ASUs No. 2014-09, No. 2015-14, No. 2016-08, and No. 2016-10 were issued related to revenue from contracts with customers which supersedes existing revenue recognition guidance. In August 2015, the FASB approved a one year delayentire contractual term of the effectiveinstrument from the date to reporting periods beginning after December 15, 2017, while permitting companies to voluntarily adopt the new standard as of the original effective date. The core principleinitial recognition of the comprehensive new guidance is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. The guidance defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The new standard permits two implementation approaches, one requiring retrospective application of the new standard with restatement of prior years and one requiring prospective application of the new standard with disclosure of results under old standards. The Company will apply the retrospective method and expects incremental disclosures.




7



EVOLUTIONARY GENOMICS, INC.

NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 (Unaudited)


In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We anticipate that there will be no impact as the Company only has month-to-month leases.


In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. This ASU is intended to improve the recognition and measurement of financial instruments. Among other things, this ASU requires certain equity investments to be measured at fair value with changes in fair value recognized in net income.instrument. This guidance is effective for fiscal years beginning after December 15, 2017, and2022, including interim periods therein. The Companywithin that reporting period and is currently assessingnot expected to have an impact on the impact this guidance will have on its condensed andCompany’s consolidated financial statements.


Note 4: Fair Value Measurements


The Company complies with the provisions of ASC 820, in measuring fair value and in disclosing fair value measurements at the measurement date. ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements required under other accounting pronouncements. Fair value is an exit price, representing the amount 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. Fair value measurements also reflect the assumptions market participants would use in pricing an asset or liability based on the best information available. Assumptions include the risks inherent in a particular valuation technique (such as a pricing model) and/or the risks inherent in the inputs to the model.


ASC 820 provides three levels of the fair value hierarchy as described below:


Level 1 Inputs – Quoted prices (unadjusted) in active markets for identical assets or liabilities.


Level 2 Inputs – Observable market-based inputs, other than quoted prices in active markets for identical assets or liabilities.


Level 3 Inputs – Unobservable inputs that are supported by little or no market activity.


When determining the fair value measurements for assets or liabilities required or permitted to be recorded at and/or marked to fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. When possible, the Company looks to active and observable markets to price identical assets. When identical assets are not traded in active markets, the Company looks to market observable data for similar assets.


The following tables summarize the basis used to measure certain financial assets and liabilities at fair value on a recurring basis in the condensed and consolidated balance sheets:


 

 

Total

 

 

Quoted Prices in Active Markets for Identical Items
(Level 1)

 

 

Significant Other Observable Inputs
(Level 2)

 

 

Significant Unobservable Inputs
(Level 3)

 

Balance at December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

Trading securities

 

$

64,299

 

 

$

64,299

 

 

$

 

 

$

 

 

 

$

64,299

 

 

$

64,299

 

 

$

 

 

$

 

Balance at September 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading securities

 

$

545,817

 

 

$

545,817

 

 

$

 

 

$

 

 

 

$

545,817

 

 

$

545,817

 

 

$

 

 

$

 





8



EVOLUTIONARY GENOMICS, INC.

NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 (Unaudited)


The following summarizes the valuation technique for assets and liabilities measured and recorded at fair value:


For the Company’s Level 1 measures, which represent common stock in publicly traded companies, treasury bonds or bank certificates of deposit, fair value is based on the last closing trade occurring on, or closest to, the respective period end date. The carrying value of financial instruments, including cash, receivables, accounts payable, and accrued expenses, approximates their fair value at September 30, 2017 and December 31, 2016 due to the relatively short-term nature of these instruments.


Note 5: 4: Property and Equipment


Property and equipment is comprised of the following:


Schedule of Property and Equipment        

 

September 30,

 

December 31,

 

 June 30, December 31, 

 

2017

 

2016

 

 2022 2021 

Equipment

 

$

432,499

 

$

432,499

 

 $432,499  $432,499 

Software

 

63,179

 

63,179

 

  63,179   63,179 

Furniture and fixtures

 

 

7,987

 

 

 

7,987

 

  7,987   7,987 

 

503,665

 

503,665

 

  503,665   503,665 

Accumulated depreciation

 

 

(328,126

)

 

 

(297,939

)

  (492,338)  (484,967)

Property and equipment, net

 

$

175,539

 

 

$

205,726

 

 $11,327  $18,698 


Depreciation expense for the six months ended June 30, 2022 and 2021 was $7,371 and $16,033, respectively.

Depreciation expense for the ninethree months ended SeptemberJune 30, 20172022 and 20162021 was $30,187$3,686 and $26,202,$8,017, respectively.

EVOLUTIONARY GENOMICS, INC. AND SUBSIDIARY

NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2022 AND 2021

(Unaudited)


Note 6: 5: Intangible Assets


Intangible assets are comprised of the following:


Schedule of Intangible Assets        
 June 30, December 31, 

 

September 30,

 

December 31,

 

 2022 2021 

 

2017

 

2016

 

Acquired research in progress - indefinite lived

 

$

4,016,596

 

$

4,016,596

 

Acquired research in progress - definite lived $4,016,596  $4,016,596 

Patents

 

52,045

 

52,045

 

  52,045   52,045 

Accumulated amortization

 

 

(27,194

)

 

 

(25,243

)

  (1,914,424)  (1,411,049)

Intangible assets, net

 

$

4,041,447

 

 

$

4,043,398

 

 $2,154,217  $2,657,592 


The Company expects to recognize $2,603 of amortization expense related to its acquired research in progress and patents during each ofaccording to the next five years and the remaining $11,836 thereafter. following:

Schedule of Intangible Assets Amortization     
Year Ending  Amortization 
December 31, 2022  $503,376 
December 31, 2023   1,006,751 
December 31, 2024   638,105 
December 31, 2025   2,602 
December 31, 2026   2,602 
Thereafter   781 
    Total  $2,154,217 

Amortization expense for the acquired research in progress and patents during the ninesix months ended SeptemberJune 30, 20172022 and 20162021 was $1,951$503,375.

Amortization expense for the acquired research in progress and $1,951, respectively.patents during the three months ended June 30, 2022 and 2021 was $251,688.


In its merger completed on October 19, 2015, the Company acquired research in progress. The value of the acquired research in progress was based upon several factors including, evaluation of other intangible assets, the purchase price, estimated future cash flows, and the amounts expended on the research to date. Acquired research in progress is an indefinite lived intangible asset until the development phase is complete, at which time a useful life of the asset will be determined. The research in progress was the identification and validation of genes to provide pest and disease resistance to soybean plants performed by EG I, LLC. The research had beenplants. With the banana development project contract in process since November 2010place and the expected marketing of our soybean genes in fall-2022, the Company expects to complete the research and placeplaced this asset in service in late 2018.on August 19, 2020. Additional costs to complete the soybean research are expected to be approximately $250,424,$33,000, which will be expensed as incurred. The timing and cost of additional research may vary from these estimates as the success of the research is subject to many factors outside of the Company’s control. If this research is

EVOLUTIONARY GENOMICS, INC. AND SUBSIDIARY

NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2022 AND 2021

(Unaudited)

Note 6: Notes Payable

Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”): On February 22, 2021, the Company received $76,395 in proceeds from the PPP, which was created under the Coronavirus Aid, Relief and Economic Security Act (CARES). Under the program, the Company applied for and received forgiveness of the debt in the year ended December 31, 2021. The forgiveness was recorded as loan forgiveness in other income on the condensed and consolidated statements of operations in the year ended December 31, 2021.

SBA Economic Injury Disaster Loan: On June 5, 2020, the Company received $150,000 in proceeds from the SBA’s EIDL Program. On July 20, 2021, the Company received a $7,000 SBA EIDL Advance which has been forgiven and, on July 14, 2021, the Company received a $50,000 increase in the SBA EIDL Loan. Installment payments, including interest at the rate of 3.75% per annum, of $1,020 monthly over thirty years from the date of the original promissory note will begin on December 5, 2022. The Company granted to the SBA a continuing security interest in all tangible and intangible personal property. The Company may not completed within a reasonable timeframe or within estimated costs, future licensing revenue and the financial conditionmake any distribution of assets of the Company could be significantly impacted.





9



EVOLUTIONARY GENOMICS, INC.

NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS

Septemberto any shareholder without the written consent of the SBA. As of June 30, 2017 (Unaudited)2022, the Company recognized $13,510 of accrued interest on the note.

 


Dole Food Company:

On August 19, 2020, the Company entered into a Development and Commercialization Agreement (“DCA”) with Dole Food Company (“Dole”) for the development of our banana genes. The DCA provides for payments from Dole to the Company of $800,000 upon execution, $800,000 by the twelve-month anniversary, $250,000 by the thirty-six month anniversary and $250,000 by the forty-eight month anniversary. Dole also reimburses the Company for costs incurred at the University of Wisconsin-Madison (“UW”) not to exceed $2,200,000 in coordination with the Standard Research Agreement that the Company entered into with UW on September 18, 2020. The agreement with UW includes payments from the Company to UW in the amount of $2,159,719 over the two-year expected term of the project. If the UW research is successful, Dole expects to incur costs of approximately $750,000 to perform field trials.

The DCA also specifies that the Company will execute notes payable to Dole for the funding that Dole is providing up to $5,050,000. Upon receipt of $800,000 on August 26, 2020, $800,000 on July 28, 2021, $1,295,831 on December 29, 2020 and $647,916 on September 29, 2021, the Company executed the notes under this DCA and recorded them as long-term notes payable for financial statement purposes. The notes are non-interest bearing and allow Dole to offset fifty percent of future royalty payments to the Company by reducing the amount of principal due on these notes. Other than this offset of future royalty payments, repayment of principal and interest is only required in the case of termination of the DCA by Dole for cause.

Note 7: Stockholders’ Equity and Warrants


The Amended and Restated Certificate of Incorporation of the Company dated October 19, 2015 authorized the issuance of 800,000,000 shares of all classes of stock including 780,000,000 shares of Common Stock having a par value of $0.001$0.001 per share and 20,000,000 shares of Preferred Stock having a par value of $0.001$0.001 per share, 600,000 of which were designated as Series A-1 Convertible Preferred Stock (“Series A-1”) and 200,000 of which were designated as Series A-2 Convertible Preferred Stock (“Series A-2”). The Board of Directors, without a vote of the shareholders, is authorized to issue additional shares of Preferred Stock in series and to establish the characteristics thereof. During the six months ended June 30, 2022, the Company issued 733,333 shares of Common Stock and received $550,000 of proceeds and issued 86,477 shares of Series A-2 and received $454,004 of proceeds.


Liquidation: Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, the holders of the Series A-1 and Series A-2 shall be entitled to receive out of the assets of the Company for each share of Series A-1 and Series A-2 an amount equal to its stated value, $5.25$5.25 per share as of SeptemberJune 30, 2017,2022 and December 31, 2021, plus any accrued but unpaid dividends before any distribution or payment shall be made to the holders of any other class or series of stock of the Company that ranks junior to the Series A-1.A-1 and Series A-2. The holders shall be entitled to convert their shares of Series A-1 and Series A-2 into Common Stock at any time prior to the consummation of a Liquidation. This is considered a contingent redemption feature.


10 

EVOLUTIONARY GENOMICS, INC. AND SUBSIDIARY

NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2022 AND 2021

(Unaudited)

Conversion: The holders of Series A-1 and Series A-2 may convert their shares into shares of Common Stock, at the option of the holder, on a one-share-for-one-share basis and shall be subject to certain adjustments at any time.


Optional Redemption; Sinking Fund Account: The Company may elect to redeem some or all of the then outstanding shares of Series A-1, (i) for cash in an amount equal to the liquidation preference per share, $5.25$5.25 per share as of SeptemberJune 30, 2017,2022, subject to adjustment and (ii) by issuing one share, subject to adjustment, of Common Stock for each share of Series A-1 and Series A-2 outstanding being redeemed. 50% of all licensing fees received by the Company will be deposited into a separate sinking fund for use in an optional redemption. As of SeptemberJune 30 2017,2022, no licensing revenue has been received under these provisions and no sinking fund account has been established.


Dividends: The Company shall pay to the holders of the Series A-1 and Series A-2 dividends at the rate of 8%8% per annum.annum and the Company has accrued these dividends since issuance of the Series A-1 and Series A-2. The dividend amount shall accrue and shall be payable in shares of Common Stock upon the conversion of the Series A-1 and Series A-2, or upon the redemption of the Series A-1.A-1 and Series A-2. No dividends shall be paid on any Common Stock of the Company or any capital stock of the Company that ranks junior to the Series A-1 and Series A-2 until dividends of Series A-1 and Series A-2 been paid. As of SeptemberJune 30, 2017,2022, there were $378,324$1,672,822 in accrued stock dividends.


Voting: The holders of the Series A-1 and Series A-2 are entitled to vote on all matters submitted to the stockholders for a vote on an as-if-converted to Common Stock basis, with all stockholders voting as a single class.


Warrants: As of September 30, 2017 and December 31, 2016, the Company had outstanding warrants to purchase 110,884 and 113,479 shares, respectively of the Company’s Common Stock. The following table summarizes the status of the Company’s aggregate warrants outstanding:


 

 

Number of Warrants

 

 

Weighted Average Exercise Price

 

 

Weighted Average Remaining Term(Years)

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2016

 

 

113,479

 

 

$

6.60

 

 

 

4.78

 

Granted

 

 

 

 

 

 

 

 

 

Exercised

 

 

 

 

 

 

 

 

 

Expired

 

 

 

 

 

 

 

 

 

Balance, December 31, 2016

 

 

113,479

 

 

$

6.60

 

 

 

3.78

 

Granted

 

 

 

 

 

 

 

 

 

Exercised

 

 

 

 

 

 

 

 

 

Expired

 

 

(2,595

)

 

 

6.60

 

 

 

 

Balance, September 30, 2017

 

 

110,884

 

 

$

6.60

 

 

 

3.13

 





10



EVOLUTIONARY GENOMICS, INC.

NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017 (Unaudited)

 


Note 8: Stock-Based Compensation


The Company grants stock-based instruments under the 2015 Stock Incentive Plan (“Plan”) for which 1,400,000 shares of the Company’s Common Stock has been reserved. The Plan allows for the issuance of incentive stock options and non-qualified stock options with a maximum contractual term of 10 years. Shares and options that are cancelled reload inare available for reissuance under the Plan for future issuance.Plan. For the ninesix months ended SeptemberJune 30, 20172022 and 2016,2021, the Company recorded compensation costs for incentive stock options of $77,253$134,645 and $69,903,109,859, respectively. For three months ended June 30, 2022 and 2021, the Company recorded compensation costs for stock options of $78,186 and $54,929. Stock options are generally issued with an exercise price at or above the estimated per-share value of the Company’s Common Stock. The Company granted no133,333 and 0 options during the ninesix months ended SeptemberJune 30, 20172022 and 380,000 options at exercises prices of $3.00 and $3.50 per share during the nine months ended September 30, 2016.2021, respectively.


Management has valued the options at their date of grant utilizing the Black-Scholes option pricing model. As of the issuance of the outstanding options, there was not a public market for the Company’s shares. Accordingly, the Company utilized the value obtained in equity transactions with unrelated parties to estimate the fair value of the Company’s Common Stock on the date of grant. Volatility of the underlying common shares was determined based on the historical volatility for similar companies that are actively traded in the public marketsCompany’s for a term consistent with the expected life of the options. The risk-free interest rate used in the calculations is based on the implied yield available on U.S. Treasury issues with an equivalent term approximating the expected life of the options on the date of the grant. Due to the lack of sufficient historical activity, the expected lifeterm of the options was estimated using the formula set forth in Securities and Exchange Commission SAB 107.


The fair value of the share option awards was estimated using the Black-Scholes method based on the following weighted-average assumptions:

Schedule Weighted Average Assumptions
Volatility154%
Expected Term5.5 years
Dividend Rate0%
Risk Free Rate2.56%

11 

EVOLUTIONARY GENOMICS, INC. AND SUBSIDIARY

NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2022 AND 2021

(Unaudited)

The following table summarizes the status of the Company’s aggregate stock options granted:


Schedule of Stock Option Activity                 
  Number of Options Weighted Average Exercise Price Weighted Average Remaining Term (Years) Total Intrinsic Value 

 

Number of Options

 

Weighted Average Exercise Price

 

Weighted Average Remaining Term(Years)

 

Total Intrinsic Value

 

         

 

 

 

 

 

 

 

 

 

Balance, January 1, 2016

 

 

186,667

 

$

0.55

 

7.39

 

 

 

 

Balance, January 1, 2021   1,081,667  $1.74   6.67     

Granted

 

 

380,000

 

3.21

 

10.00

 

 

 

              

Exercised

 

 

 

 

 

 

 

              

Cancelled

 

 

 

 

 

 

 

 

 

 

 

 

              

 

 

 

 

 

 

 

 

 

 

                 

Balance, December 31, 2016

 

 

566,667

 

 

$

2.33

 

 

 

7.95

 

 

 

 

Balance, December 31, 2021   1,081,667  $1.74   5.67     

 

 

 

 

 

 

 

 

 

 

                 

Exercisable at December 31, 2016

 

 

216,667

 

 

$

0.89

 

 

 

5.91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2017

 

 

566,667

 

$

2.33

 

7.95

 

 

 

Balance, January 1, 2022   1,081,667  $1.74   5.67     

Granted

 

 

 

 

 

 

 

   133,333  $0.83   9.73     

Exercised

 

 

 

 

 

 

 

   (186,667) $0.55        

Cancelled

 

 

 

 

 

 

 

 

 

 

 

 

              

 

 

 

 

 

 

 

 

 

 

                 

Balance, September 30, 2017

 

 

566,667

 

 

$

2.33

 

 

 

7.20

 

 

$

84,000

 

Balance, June 30, 2022   1,028,333  $1.84   6.73  $ 

 

 

 

 

 

 

 

 

 

 

                 

Exercisable at September 30, 2017

 

 

333,334

 

 

$

1.71

 

 

 

6.29

 

 

$

84,000

 

Exercisable at June 30, 2022   681,665  $2.13   5.95  $ 


During each of the ninesix months and three months ended SeptemberJune 30, 20172022 and 2016,2021, options for 116,667 and 0 shares vested, respectively.vested. As of SeptemberJune 30, 2017,2022 there was $145,062$144,111 of unrecognized compensation cost related to share-based compensation arrangements that will be recognized overthrough the next 20 months.year ending December 31, 2023.




11



EVOLUTIONARY GENOMICS, INC.

NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS

SeptemberDuring the six months ended June 30, 2017 (Unaudited)2022, options for 186,667 shares at an exercise price of $0.55 per share were exercised using the cashless method of providing existing shares resulting in the issuance of 40,001 net new shares.

 


Note 9: Commitments and Contingencies


Officer Indemnification: Under the Company’s organizational documents, the Company’s officers, employees, and directors are indemnified against certain liabilities arising out of the performance of their duties. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. However, based on experience, the Company expects any risk of loss to be remote. The Company also has an insurance policy for its directors and officers to insure them against liabilities arising from their performance in their positions with the Company.


12 

EVOLUTIONARY GENOMICS, INC. AND SUBSIDIARY

NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2022 AND 2021

(Unaudited)

Lease Commitments: The Company leases its operating facility and pays its rent in monthly installments. The lease was renewed in June 2016 for a period of twelve months and monthly rentals for the period of July 1, 2016 through SeptemberJune 30, 20172022 are $2,378$2,378 per month which continues on a month-to-month basis. There is no minimum lease commitment as of SeptemberJune 30, 2017.2022. Renewals after June 30, 2017 are by mutual agreement. The Company’s rent expense for the ninesix months ended SeptemberJune 30, 20172022 and 20162021 was $21,401$11,890 and $20,884,$14,267, respectively.


Royalty: Effective March 1, 2012, the Company entered into an Agreement for Contract Services with SmithBucklin Corporation (the “Contractor”) on behalf of the United Soybean Board. The contract includes the payment of certain royalties, as defined in the Agreement.


The Company is obligated to pay royalties to the United Soybean Board of 10% of the sale of products derived from the soybean genes that were the subject of the research performed by the Contractor or from royalties received by the Company from the sale of products by a third party not to exceed 150% of the total amount paid to the Contractor under this Agreement. The Company has recognized to date grant revenue from the contract of $262,400$262,400 as of SeptemberJune 30, 2017,2022, thus limiting any future royalties as of SeptemberJune 30, 20172022 to a total of $393,600.$393,600. The Company has not accrued or paid any royalties under the terms of the Agreement as of and during the ninesix months ended SeptemberJune 30, 2017 and 20162022 because it has not received any revenue from the sale of products to date.

Other Commitments: On September 18, 2020, the Company entered into a Standard Research Agreement with WCIC for the development of our banana genes. The agreement includes payments from the Company in the amount of $2,159,719 over the 2 two-year expected term of the project. These costs have been and will be reimbursed, in the form of notes payable by Dole in accordance with our DCA. On April 18, 2022, the Company entered into a Standard Research Agreement with UW for the testing of banana plants for resistance to TR4 Panama Disease. The agreement includes payments from the Company in the amount of $143,124 over the twelve-month expected term of the project. In the six months ended June 30, 2022, the Company paid $85,874 under this contract and was fully reimbursed by Dole.


Note 10: Related Parties and Transactions


Steve B. Warnecke: Mr. Warnecke is the Company’s Chief Executive Officer and Chairman of the Board and owns, directly or indirectly, 1,932,0881,841,374 shares or 29.9%24.81% of the Common Stock outstanding as of SeptemberJune 30, 2017.2022.


VetDC, Inc.: VetDC, Inc., a Delaware C corporation, is focused on developing pet therapeutic products and is related to the Company through common ownership and management. During the year ended December 31, 2016, the Company sold all of its remaining shares of VetDC, Inc.


Note 11: Concentrations


Revenue and Account Receivable Concentrations: The Company is dependent on a relatively few sources of revenue from grants and commercial research contracts. For the nine months ended September 30, 2017, the Company had one customer that represented all gross service revenue. As of December 31, 2016, 100% of the Company’s accounts receivable were due from one customer. As of September 30, 2017 and December 31, 2016, the maximum exposure to credit losses for this customer was $0 and $9,289, respectively. Loss of this customer without acquisition of additional customers could significantly impact the Company’s revenue.


Considerations of Credit Risk: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable.cash. The Company maintains its cash balances at high-credit, quality financial institutions. The balances, at times, may exceed federally insured limits. The

Note 12: Liquidity

As of June 30, 2022, the Company routinely monitorshad $897,779 in operating cash and expects that our operating expenses for the credit quality of its customers.next twelve months will be $840,000. Management believes the Company’s existing cash balances along with contractually obligated future funding from our current agreement with Dole are sufficient to provide the necessary liquidity to meet our obligations as they come due over the next year.




12



12 
ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 


ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


Caution Regarding Forward-Looking Information

 

This report includes “forward-looking statements” that are subject to risks, uncertainties and other factors. All statements other than statements of historical fact are statements that could be deemed forward-looking statements including continued compliance with government regulations, changing legislation or regulatory environments; any statements of expectation or belief and any statements of assumptions underlying any of the foregoing. These risks, uncertainties and other factors, and the general risks associated with the businesses of the Company described in the reports and other documents filed with the SEC, could cause actual results to differ materially from those referred to in the forward-looking statements. The Company cautions readers not to rely on these forward-looking statements. All forward-looking statements are based on information currently available to the Company and are qualified in their entirety by this cautionary statement. The Company anticipates that subsequent events and developments may cause its views to change. The information contained in this report speaks as of the date hereof and the Company has or undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise unless required by law.


Company Overview


Evolutionary Genomics, Inc. (the "registrant" or "Company") was incorporated under the laws of the state of Minnesota in November 1990 under the name Fonahome Corporation. On March 24, 2009, the ArticlesCompany reincorporated in the state of Merger of Fonahome Corporation, a Minnesota Corporation, intoNevada and merged with its wholly owned subsidiary, Fona, Inc., a Nevada Corporation, were filedadopting the surviving company’s name, Fona, Inc. and simultaneously adopted the capital structure of Fona, Inc., which includes total authorized capital stock of 800,000,000 shares, of which 780,000,000 are common stock and 20,000,000 are blank check preferred stock. The preferred stock may be issued from time to time in one or more series with such designations, preferences and relative participating, optional or other special rights and qualifications, limitations or restrictions thereof, as shall be stated in the Nevada Secretaryresolutions adopted by the Corporation’s Board providing for the issuance of State. such preferred stock or series thereof.

On SeptemberJune 6, 2014, Evolutionary Genomics, Inc., a Delaware corporation (“EG”), EG I, LLC (“EG I”) andmerged with Fona, Inc., treated as a Nevada corporation (“Fona”), Fona Merger Sub, Inc., a Delaware corporation (“Sub”) and Fona Merger Sub, LLC, a Colorado limited liability company (“Sub LLC”), entered into an Agreement and Plan of Merger as amended by the Amended and Restated Agreement and Plan of Merger dated March 2, 2015 (the “Merger Agreement”), pursuant to which, on October 19, 2015 Sub mergedreverse acquisition with EG and Sub LLC merged with EG I, with each EG and EG I surviving as wholly owned subsidiaries of Fona. On October 19, 2015, Fona changed its name to Evolutionary Genomics, Inc. as the acquirer and Fona as the acquired party. Subsequent to the Merger, Fona, Inc. was renamed Evolutionary Genomics, Inc. and our subsidiary was renamed from Evolutionary Genomics, Inc. to EG Crop Science, Inc. On May 9, 2016, we formed ICAM Therapeutics, Inc. (a Delaware corporation) as a wholly owned subsidiary of Evolutionary Genomics, Inc. We have not incurred any transactions in this company nor have we established any business plan for the future.

The Company maintains headquarters at the office of its Chief Executive Officer. The Company maintains a website at www.evolgen.com. The Company is not required to deliver an annual report to security holders and at this time does not anticipate the distribution of such a report. The Company will file reports with the SEC.


On August 14, 2000, the Company was issued patent number 6274319, titled “Methods to identify evolutionarily significant changes in polynucleotide and polypeptide sequences in domestic plants and animals”. On SeptemberJune 1, 2004, the Company was issued patent number 6743580, titled “Methods for producing transgenic plants containing evolutionarily significant polynucleotides”. These patents are for the core Adapted Traits Platform that we use for the discovery of genes in humans, animals and commercial crops. The Company has applied the Adapted Traits Platform in research projects including identifying genes believed to be responsible for increases in yield in corn, increases in yield in rice, salt tolerance and sugar content in tomatoes and pest/disease resistance in soybeans, bananas and multiple other crops.


In the past century, agriculture has been characterized by enhanced productivity, the use of synthetic fertilizers and pesticides, selective breeding, mechanization, water contamination, and farm subsidies. Proponents of organic farming such as Sir Albert Howard argued in the early 20th century that the overuse of pesticides and synthetic fertilizers damages the long-term fertility of the soil. While this feeling lay dormant for decades, as environmental awareness has increased in the 21st century there has been a movement towards sustainable agriculture by some farmers, consumers, and policymakers.

Advances in genetic research and modification of crop species hashave led to increased yield, drought tolerance and disease/pest resistance. These advances have also led to an increased concentration within the providers of seed to the industry.and production companies. The top seed companies control much of the implementation of new seedplant varieties through patents and licensing agreements. Genetic traits providers, like Evolutionary Genomics, identify and develop genes that impact traits of interest to the industry and market those genes to these seed companies.

13 


Business Model

Evolutionary Genomics’ primary source of revenue to date hasthrough June 30, 2020 had been contract services revenue and notes payable funding for research performed by Evolutionary Genomics on behalf of other commercial entities and grant income received from governmental agencies, industry associations and grant making foundations for research performed. Ownership of the intellectual property developed can varyin these projects varies from Evolutionary Genomics retaining all intellectual property rights to retaining none of the developed intellectual property for the crop that is the subject of the project. In addition to the revenue resulting from contract services and grants,revenue for research, Evolutionary Genomics has entered into licensing agreements for the commercial useintends to continue to pursue grant funding from governmental agencies, industry associations and grant making foundations. These sources of intellectual property that we have developed. funding are often subject to limitations in available funds, funding priorities in areas other than our area of focus, political uncertainties, long approval processes and competition with other research proposals.

Licensing revenue can be lump sum payments, milestone payments upon achievement of defined goals and/or percentages of revenue for products sold by licensee. These payments are often many years after completion of gene identification project as licensees engage in significant additional testing including field trials prior to integration into licensee commercial germplasm lines. There can be no guarantee that these licensing agreements will result in any additional revenue for Evolutionary Genomics as further development of licensed intellectual property is mostly controlled by the licensee.




13




The goal of the grant funded research projects was to discover genetic intellectual properties with commercial value. Evolutionary Genomics’ soybean pest resistance project is a multiple year illustration of the evolution of a project from concept through marketing to seed companies. The project has yielded identified genes for pest resistance in soybeans with partial validation complete. Evolutionary Genomics has partially completed two generation, whole plant validation testing but has decided to postpone further testing indefinitely to focus resources on our banana project. The Company has extended this soybean pest resistance research to other crops including beans, tomatoes, cotton and maize and has identified candidate genes. Further research on these crops is dependent on revenue from our banana project or additional capital funding. If we are able to complete additional validation testing, we intend to market these genes to the seed industry.

Our banana pest resistance project is another project illustration. We identified a gene (FusR1) in bananas that appears to confer resistance to Fusarium Fungus which leads to Panama Disease. We marketed the gene to banana companies and, in August 2020, executed a Development and Commercialization Agreement (“DCA”) with Dole Food Company (“Dole”) which includes three years of development work funded by Dole and the framework for a long-term licensing relationship. While Dole is supplying significant funding for the three-year development of this banana gene in the form of promissory notes, there can be no assurance that this development work will lead to licensing revenue as there are many risks involved in genetic trait development.

Evolutionary Genomics’ Business Strategy

The single most valuable step in the process of crop improvement is the identification of the key genes among the 30,000 or more in the genome that has the desired impact. The Company has identified pest/disease resistance genes in bananas, soybeans and other commercially valuable crops. If validation testing of these genes is successful, we will market them to the industry. This strategy requires Evolutionary Genomics to incur significant research costs prior to any confirmation of commercial viability and there can be no guarantee that the desired results can be achieved or that commercialization can be reached.

During the 1950s the global banana industry was devastated by a disease (caused by Fusarium fungus) that effectively wiped out the predominate variety of commercial bananas know as Gros Michel leading to the development of the Cavendish banana, which makes up well over 90% of the commercial banana market today. Cavendish was resistant to the strain of Fusarium that wiped out the Gros Michel variety but, in recent years, is being challenged by a new race of Fusarium that threatens to, once again, devastate the global banana industry. This crisis is imminent and has no solution. The recent emergence of Panama Disease TR4 in the Western Hemisphere makes a swift solution to the crisis even more urgent. A substantial part of the banana market consists of exports from Central and South America to the United States.

14 

In 2018, the Company began a project to identify genes in wild banana relatives that are resistant to Fusarium. We have previously used our technology to identify genes in common beans and, in our project for the Bill and Melinda Gates Foundation in common beans, proved that these genes provided increased resistance to Fusarium fungus. We used our platform to isolate a banana gene that controls Fusarium Wilt (FW), aka Panama Disease, Tropical Race 4. The gene, which we have named FusR1 (Fusarium Resistance 1), is a native gene in Musa species, including cultivated bananas. We have found that, for all FW-resistant banana cultivars/species that we have tested, one version of our gene exists while, in all FW-sensitive banana cultivars/species that we have tested, there is a different version of FusR1. And notably, a third version exists in semi-resistant varieties that has allowed us to identify the particular nucleotide changes that are crucial for resistance to Fusarium Wilt.

We have successfully introduced FusR1 into cultivated bananas using a gene transformation approach, particularly the Fusarium-sensitive Cavendish cultivar, and are now testing those banana plants for their level of resistant to Fusarium Wilt. Initial tests indicate some resistance has been achieved but many more events must be tested to reach conclusions. We believe that, given the threat of possible extinction for Cavendish, rapid approaches are not only warranted but essential and minimally genetically edited bananas will be accepted depending upon how the gene transfer is accomplished. Transfer of this native banana gene to cultivated bananas can also be accomplished with CRISPR technology, which allows a targeted, gene transfer and which, as compared to more traditional genetic editing techniques, minimizes potential side effects. We believe that Cavendish bananas can be rendered Fusarium Wilt resistant by changing only a few base pairs. These sorts of minimal changes have been allowed by the USDA and FDA in several crops. Even in Europe, use of CRISPR technology has gained some traction.

On June 26, 2019, we filed a United States patent application titled IDENTIFICATION AND RESISTANCE GENES FROM WILD RELATIVES OF BANANA AND THEIR USES IN CONTROLLING PANAMA DISEASE. We are awaiting review of these patents by the United States Patent Office. In December 2021, we filed patents in Europe, Africa, South and Central America, Australia and Asia.

On August 19, 2020, the Company entered into a Development and Commercialization Agreement (“DCA”) with Dole Food Company for the development of plant varieties within the Musa genus of the Musaceae family (including the Cavendish variety of banana) that exhibit resistance to Fusarium Wilt Tropical Race 4 (popularly known as Panama Disease). Subject to compliance with various provisions of the agreement, the agreement includes partial working capital funding from Dole to the Company through 2024. In addition to working capital funding, Dole reimburses the Company for the development of banana plants and Dole will incur additional costs for the commercialization of plants upon successful completion of the development portion of this project. From the effective date of the agreement, the Company has received $1,600,000 of working capital funding and $1,943,747 of reimbursement of development costs pursuant to this agreement. Per the Agreement, 50% of future royalties may be offset with the research funding provided by Dole. In the event that Dole terminates the agreement for material breach by the Company or the Company’s bankruptcy, the Company must repay all funding provided by Dole within six months of termination. The parties have agreed to negotiate the terms of the long-term license agreement upon successful completion of the development portion of this project.

During 2021 and the six months ended June 30, 2022, the University of Wisconsin was able to successfully transform banana plants using our FusR1 gene and we currently have banana plants from multiple gene constructs growing in greenhouses and undergoing resistance testing. During 2022, in accordance with our DCA with Dole, we are engaged in testing on these plants to determine if our FusR1 gene successfully conferred resistance to Fusarium and Panama Disease and initial testing indicates some resistance. Upon successful completion of validation testing and field trials by Dole, under the terms of the agreement with Dole, we expect to negotiate a long-term royalty contract for the commercialization of banana plants using our genes. This licensing arrangement will likely be exclusively with Dole and contain royalty payments based on the number of plants and/or hectares of plants. Even if EG’s genes are proven to be effective, it is difficult to predict the future revenue stream that any licensing arrangement can generate and will be heavily dependent upon the speed with which Panama Disease spreads throughout the world necessitating a solution and any changes in the price of bananas based on supply and demand. Many articles are available in the public realm detailing the significance of the disease and the spread throughout the world.

Since bananas are seedless, they are propagated by clones which allows for very rapid production of plants. An initial batch of 100 successful plants can generate a secondary propagation of over 15,000 plants in one year (enough for 10 hectares) and 15 million in the next generation. There are over 400,000 hectares of banana production in Latin America from Mexico to Peru. Adoption of the new variety will be dependent upon its effectiveness and the infection rate of Panama disease.

15 

There are many risks associated with achieving these desired results including but not limited to:

-We may not be able to adequately establish patent protection for our intellectual property or others may have competing claims.
-Others may develop competitive approaches to compete with our genes.
-Our genes may cause unforeseen and undesirable changes beyond the pest resistance such as yield degradation or changes in the appearance or taste of the fruit.
-Our genes may fail to deliver the desired results of resistance to Fusarium.
-Global regulations and/or consumer preference may prevent the successful commercial launch of bananas with genetics changed using our methods.
-We will be dependent on others for the successful production and marketing of bananas with our genes and many factors will be outside of our control.
-Our expected future royalty revenue will be highly dependent upon the successful execution of the banana development project in the DCA with Dole and the negotiation of a long-term royalty licensing agreement.

While Panama Disease 1) is potentially existential to the banana industry, 2) has no known treatment and 3) is not yet widespread, Black Sigatoka Disease is a different disease that is very wide-spread and is treated with toxins at a cost of up to $2,300 per hectare per year. We spent the last two years researching wild banana plants to identify a gene that could potentially be used to develop plants that are resistant to Black Sigatoka with no or reduced use of toxins. On October 21, 2021, we filed a United States patent application titled IDENTIFICATION AND RESISTANCE GENES FROM WILD RELATIVES OF BANANA AND THEIR USES IN CONTROLLING BLACK SIGATOKA DISEASE. We are awaiting review of these patents by the United States Patent Office. We are in the early stages of developing this gene and others are working on competing approaches. There is no guarantee that this will lead to commercial success. Like our FusR1 project, transformation and validation can be very expensive and we will need funding from either grants or potential customers or additional capital from investors, none of which can be assured.

On April 29, 2014, the United States Patent and Trademark Office issued to the Company patent 8,710,300 titled EXPRESSION OF DIRIGENT GENE EG261 AND ITS ORTHOLOGS AND PARALOGS ENHANCES PATHOGEN RESISTANCE IN PLANTS on April 29, 2014PLANTS. On December 5, 2017 and March 3, 2020, the United States Patent and Trademark Office issued additional patents which extended the previous patent 9,605,274 titled DIRIGENT GENE EG261 AND ITS ORTHOLOGS AND PARALOGS AND THEIR USES FOR PATHOGEN RESISTANCE IN PLANTS on March 28, 2017. On July 25, 2017 we received issuance of Chinese patent ZL201380039727.4 which is similar to US patent number 9,605,274 and we imminently expect the issuance of a similar patent in Canada. Evolutionary Genomics has also filed other international patents on EG261 and engaged in discussions with seed companies regarding further validationinclude additional variations of the effectivenessgene. We have filed additional patents in multiple countries that are at various stages of EG261. Basedprocessing. On January 18, 2022, the Company filed a patent application on information receivedits second soybean pest/disease resistance gene, EG19, and has included that gene in those discussions, Evolutionary Genomics has engaged in aits ongoing two generation, whole plant validation trial of EG261, EG19 (another soybean pest resistance gene) and a synthetic gene with the University of Missouri.research. The Company has also discovered additional candidate genes that may impact pathogen resistance in multiple crops and genes that may impact fiber length in cotton.resistance. There can be no assurance that any of these genes will be proven effective in validation testing or lead to licensing agreements or revenuerevenue.

We entered into a Service Agreement with the Wisconsin Crop Innovation Center (“WCIC”) under which they have transformed soybeans using our genes and this strategy will require Evolutionary Genomicshelped to incur significantestablish the right combinations to achieve a range of expression. WCIC grew events from seven constructs of EG261 and EG19 in their greenhouses. The testing of these T2 generation seedlings at the University of Missouri is partially complete but we have indefinitely suspended work on these genes to focus our resources on our banana projects. If we resume these projects and results from the whole plant validation trials confirm the findings of the University of Wisconsin-Madison for EG261 and the effectiveness of the new gene, EG19, the Company intends to enter negotiations for a long-term research costscollaboration and licensing agreement with seed companies. The testing phase includes field trials which may proceed for several years prior to generating licensing revenue. There are many risks in this process including some that are outside of Evolutionary Genomics’ control and there can be no guarantee that we will ever generate any confirmation of commercial viability.revenue from these potential agreements.


Evolutionary Genomics intends to pursue grant funding from governmental agencies, industry associations and grant making foundations but these sources of funding are often subject to limitations in available funds, funding priorities in areas other than the our area of focus, political uncertainties, long approval processes and competition with other research proposals. If such funding is not available, Evolutionary Genomics may incur the costs of these projects with the prospect of revenue uncertain and likely many years in the future.


Evolutionary Genomics has no registered trademarks. The Company had threetwo full time employees and one part timepart-time employee as of SeptemberJune 30, 20172022 and leases its operating facility on a month-to-month basis after September 30, 2017. Evolutionary Genomics is not currently involved in or aware of any threatened or actual legal proceedings.


16 

Unaudited Results of Operations


 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

Amount

 

 

Percent of Revenue

 

 

Amount

 

 

Percent of Revenue

 

 

Amount

 

 

Percent of Revenue

 

 

Amount

 

 

Percent of Revenue

 

Service and grant revenue

 

$

 

 

 

N/A

 

 

$

31,830

 

 

 

100.0

%

 

$

32,690

 

 

 

100.0

%

 

$

150,069

 

 

 

100.0

%

Research and development

 

 

145,963

 

 

 

N/A

 

 

 

126,231

 

 

 

396.6

%

 

 

653,344

 

 

 

1998.6

%

 

 

435,273

 

 

 

290.0

%

Salaries and benefits

 

 

62,144

 

 

 

N/A

 

 

 

69,437

 

 

 

218.1

%

 

 

209,755

 

 

 

641.6

%

 

 

194,903

 

 

 

129.9

%

General and administrative

 

 

60,253

 

 

 

N/A

 

 

 

70,770

 

 

 

222.3

%

 

 

210,329

 

 

 

643.4

%

 

 

227,633

 

 

 

151.7

%

Total operating expenses

 

 

268,360

 

 

 

N/A

 

 

 

266,438

 

 

 

837.1

%

 

 

1,073,428

 

 

 

3283.7

%

 

 

857,809

 

 

 

571.6

%

Operating (loss)

 

 

(268,360

)

 

 

N/A

 

 

 

(234,608

)

 

 

-737.1

%

 

 

(1,040,738

)

 

 

-3183.7

%

 

 

(707,740

)

 

 

-471.6

%

Other income and (expenses)

 

 

15,159

 

 

 

N/A

 

 

 

(36,449

)

 

 

-114.5

%

 

 

(15,189

)

 

 

-46.5

%

 

 

(173,881

)

 

 

-115.9

%

Net loss

 

$

(253,201

)

 

 

N/A

 

 

$

(271,057

)

 

 

-851.6

%

 

$

(1,055,927

)

 

 

-3230.1

%

 

$

(881,621

)

 

 

-587.5

%

Preferred stock dividend

 

 

(60,592

)

 

 

N/A

 

 

 

(59,688

)

 

 

-187.5

%

 

 

(181,775

)

 

 

-556.1

%

 

 

 

 

 

0.0

%

Net loss attributable to common stockholders

 

$

(313,793

)

 

 

N/A

 

 

$

(330,745

)

 

 

-1039.1

%

 

$

(1,237,702

)

 

 

-3786.2

%

 

$

(881,621

)

 

 

-587.5

%


Service and Grant Revenue


Service revenue decreased $31,830, or 100%, to $0 for the three months ended September 30, 2017 from $31,830 for the three months ended September 30, 2016. The decrease was primarily due to decreased revenue recognized from the State of Colorado grant which is complete.


Service revenue decreased $117,379, or 78.2%, to $32,690 for the nine months ended September 30, 2017 from $150,069 for the nine months ended September 30, 2016. The decrease was primarily due to decreased revenue recognized from Bill and Melinda Gates Foundation and from the State of Colorado grant, both of which are complete.




14



  Three Months Ended June 30,  Six Months Ended June 30, 
  2022  2021  2022  2021 
  Amount  Percent of Revenue  Amount  Percent of Revenue  Amount  Percent of Revenue  Amount  Percent of Revenue 
Revenue $   N/A  $   N/A  $   N/A  $   N/A 
Research and development  106,178   N/A   136,199   N/A   205,267   N/A   233,014   N/A 
Salaries and benefits  115,686   N/A   92,429   N/A   209,645   N/A   184,859   N/A 
General and administrative  309,568   N/A   325,079   N/A   641,464   N/A   649,684   N/A 
Total operating expenses  531,432   N/A   553,707   N/A   1,056,376   N/A   1,067,557   N/A 
Operating loss  (531,432)  N/A   (553,707)  N/A   (1,056,376)  N/A   (1,067,557)  N/A 
Other income  359   N/A   6   N/A   438   N/A   114   N/A 
Income taxes     N/A      N/A      N/A      N/A 
Net loss $(531,073)  N/A  $(553,701)  N/A  $(1,055,938)  N/A  $(1,067,443)  N/A 
Preferred stock dividend  (80,251)  N/A   (71,392)  N/A   (151,026)  N/A   (142,784)  N/A 
Net loss attributable to common stockholders $(611,324)  N/A  $(625,093)  N/A  $(1,206,964)  N/A  $(1,210,227)  N/A 

 


Operating Expenses


Operating expenses increased $1,922,decreased $11,181, or 0.7%,1.0% to $268,360$1,056,376 for the threesix months ended SeptemberJune 30, 20172022 from $266,438$1,067,557 for the threesix months ended SeptemberJune 30, 2016. Operating expenses consist of research and development expense, salaries and benefits and general and administrative expense.2021. Changes in these items are described below.


Operating expenses increased $215,619,decreased $22,275, or 25.1%,4.0% to $1,073,428$531,432 for the ninethree months ended SeptemberJune 30, 20172022 from $857,809$553,707 for the ninethree months ended SeptemberJune 30, 2016 and were 3,283.7% of revenue for the nine months ended September 30, 2017 compared to 571.6% of revenue for the nine months ended September 30, 2016. Operating expenses consist of research and development expense, salaries and benefits and general and administrative expense.2021. Changes in these items are described below.below


Research and Development


Research and development increased $19,732,decreased $27,747, or 15.6%11.9%, to $145,963$205,267 for the six months ended June 30, 2022 from $233,014 for the six months ended June 30, 2021. The decrease was primarily due to lower costs on our soybean project partially offset by increased patent costs.

Research and development decreased $30,021, or 22.0%, to $106,178 for the three months ended SeptemberJune 30, 20172022 from $126,231$136,199 for the three months ended SeptemberJune 30, 2016.2021. The decrease was primarily due to lower soybean project costs.

Salaries and Benefits

Salaries and benefits increased $24,786, or 13.4%, to $209,645 for the six months ended June 30, 2022 from $184,859 for the six months ended June 30, 2021. The increase was primarily due to increased legalstock compensation costs.


ResearchSalaries and developmentbenefits increased $218,071,$23,257, or 50.1%25.2%, to $653,344$115,686 for the ninethree months ended SeptemberJune 30, 20172022 from $435,273$92,429 for the ninethree months ended SeptemberJune 30, 2016.2021. The increase was primarily due to increased costs on our pest resistance projects. As a percentage of revenue, researchstock compensation costs.

17 

General and developmentAdministrative

General and administrative expenses were 1,998.6%decreased $8,220, or 1.3%, to $641,464 for the ninesix months ended SeptemberJune 30, 2017 compared to 290.0% of revenue2022 from $649,684 for the ninesix months ended SeptemberJune 30, 2016.


Salaries and Benefits


Salaries and benefits decreased $7,293, or 10.5%, to $62,144 for the three months ended September 30, 2017 from $69,437 for the three months ended September 30, 2016.2021. The decrease was primarily due to lower stock compensation expenses in the three months ended September 30, 2017 compared to the three months ended September 30, 2016.insurance costs.


Salaries and benefits increased $14,852, or 7.6%, to $209,755 for the nine months ended September 30, 2017 from $194,903 for the nine months ended September 30, 2016. The increase was primarily due to raises for employees and increased costs of health insurance. As a percentage of revenue, salaries and benefits were 641.6% for the nine months ended September 30, 2017 compared to 129.9% of revenue for the nine months ended September 30, 2016.


General and Administrative


General and administrative expenses decreased $10,517,$15,511, or 14.9%4.8%, to $60,253$309,568 for the three months ended SeptemberJune 30, 20172022 from $70,770$325,079 for the three months ended SeptemberJune 30, 2016.2021. The decrease was primarily due to decreased professional fees.fees and insurance costs.


General and administrative expenses decreased $17,304, or 7.6%, to $210,329 for the nine months ended September 30, 2017 from $227,633 for the nine months ended September 30, 2016. The decrease was primarily due to decreased professional fees. As a percentage of revenue, general and administrative expenses were 643.4% for the nine months ended September 30, 2017 compared to 151.7% of revenue for the nine months ended September 30, 2016.


Other Income and (Expenses)


Total net other income increased $51,608,$324, or 141.6%284.2%, to $15,159$438 for the threesix months ended SeptemberJune 30, 20172022 from $(36,449)$114 for the threesix months ended SeptemberJune 30, 2016.2021. The increase was primarily due to unrealized gains on trading securities compared to unrealized losses in the prior period.increased interest income.


Total net other expenses decreased $158,692,income increased $353, or 91.3%5,883.3%, to $15,189$359 for the ninethree months ended SeptemberJune 30, 20172022 from $173,881$6 for the ninethree months ended SeptemberJune 30, 2016.2021. The increase was primarily due to increased interest income.

Net Loss

Net loss decreased $11,505, or 1.1%, to $1,055,938 for the six months ended June 30, 2022 from $1,067,443 for the six months ended June 30, 2021. The decrease was primarily due to lower unrealized losses on trading securities. As a percentage of revenue, other expenses was 46.5% for the nine months ended September 30, 2017 compared to 115.9% of revenue for the nine months ended September 30, 2016.soybean project costs and lower insurance costs partially offset by increased patent expense and stock compensation costs.




15




Income Taxes


The Company records a valuation allowance for certain temporary differences for which it is more likely than not that it will not receive future tax benefits. It assesses its past earnings history and trends, sales backlogs, and projections of future net income. The Company recorded a valuation allowance for the entire amount of the net deferred tax asset because of our history of net losses and its decision that it is unlikely to recognize sufficient net income to realize the benefit of these assets over time until such time that the Company has had a reasonable history of net income. We will continue to review this valuation allowance and make adjustments as appropriate.


As of December 31, 2016 and 2015, the Company maintained federal net operating loss (“NOL”) carry-forwards of $5,195,000 and $4,322,000, respectively. Use of NOL carry-forwards are limited by the provisions of section 382 of the Internal Revenue Code. As of December 31, 2016, we also maintained a general business tax credit carryover of approximately $254,000 related to our qualifying research and development activities. The NOL carry-forwards and tax credits expire in the years 2027 through 2035.


Net (Loss)


Net (loss)loss decreased $17,752,$22,628, or 6.6%4.1%, to $253,201$531,073 for the three months ended SeptemberJune 30, 20172022 from $271,057$553,701 for the three months ended SeptemberJune 30, 2016.2021. The decrease was primarily due to unrealized gains on trading securitieslower soybean project costs, professional fees and decreased professional feesinsurance costs partially offset by increased costs on our pest resistance projects and increased wagesstock compensation costs.


Net (loss) increased $174,306, or 19.8%, to $1,055,927 for the nine months ended September 30, 2017 from $881,621 for the nine months ended September 30, 2016. The increase was primarily due to increased costs on our pest resistance projects and decreased revenue partially offset by decreased unrealized losses on trading securities.


Financial Condition


The Company’s working capital decreased $946,536increased $593,457 to $1,160,950$830,392 as of SeptemberJune 30, 20172022 from $2,107,486$236,935 as of December 31, 2016 primarily due the net loss from operations.


Liquidity and Capital Resources


The Company has historically financed operations through cash flows from operations and equity transactions. Net cash used in operating activities was $924,315 for the nine months ended September 30, 2017 compared to $784,304 for the nine months ended September 30, 2016. The $140,011, or 17.9%, increase was2021 primarily due to the increased net lossproceeds received from stock issuances, which was partially offset smaller decreasesby the operating loss.

Liquidity

As of June 30, 2022, the Company had $897,779 in operating cash used to reduce accounts payable and accrued expenses. Net cash flows used for investing activities decreased to $502,175expects that our operating expenses for the ninenext twelve months ended September 30, 2017will be $840,000. Management believes the Company’s existing cash balances along with contractually obligated future funding from $1,304,256 forour current agreement with Dole are sufficient to provide the nine months ended September 30, 2016 primarilynecessary liquidity to meet our obligations as they come due toover the decreased purchases of trading securities (treasury bonds and bank certificates of deposit). We expect to use proceeds from the sale of these treasury bonds and bank certificates of deposit to fund operations and working capital needs. Net cash provided from financing activities was none for the nine months ended September 30, 2017 compared to $3,004,033 for the nine months ended September 30, 2016 due to the issuance of preferred stock during the nine months ended September 30, 2016.next year.


Off-Balance Sheet Arrangements


The Company has no off-balance sheet arrangements that have a material current effect, or that are reasonably likely to have a material future effect, on its financial condition, changes in financial condition, revenue or expenses, results of operations, liquidity, capital expenditures, or capital resources.


Contractual Obligations


The Company leases its operating facility and pays its rent in monthly installments. The lease was renewed in June 2016 for a period of twelve months and monthly rentals for the period of July 1, 2016 through SeptemberJune 30, 20172022 are $2,378 per month which continues on a month-to-month basis. There is no minimum lease commitment as of SeptemberJune 30, 2017.2022. Renewals after June 30, 2017 are by mutual agreement. The Company’s rent expense for the ninesix months ended June 30, 2022 and 2021 was $11,890 and $14,267, respectively.

The Company is obligated to pay royalties to the United Soybean Board of 10% of the sale of products derived from the soybean genes that were the subject of the research performed by the Contractor or from royalties received by the Company from the sale of products by a third party not to exceed 150% of the total amount paid to the Contractor under this Agreement. The Company has recognized to date grant revenue from the contract of $262,400 as of June 30, 2022, thus limiting any future royalties as of June 30, 2022 to a total of $393,600. The Company has not accrued or paid any royalties under the terms of the Agreement as of and during the six months ended June 30, 2022 because it has not received any revenue from the sale of products to date.

On September 18, 2020, the Company entered into a Standard Research Agreement with WCIC for the development of our banana genes. The agreement includes payments from the Company in the amount of $2,159,719 over the two-year expected term of the project. These costs will be reimbursed, in the form of notes payable by Dole in accordance with our DCA.

On April 18, 2022, the Company entered into a Standard Research Agreement with UW for the testing of banana plants for resistance to TR4 Panama Disease. The agreement includes payments from the Company in the amount of $143,124 over the twelve-month expected term of the project. In the six months ended June 30, 20172022, the Company paid $85,874 under this contract and 2016 was $14,267 and $13,750, respectively.fully reimbursed by Dole.

ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


Not required by smaller reporting companies.




16



ITEM 4.CONTROLS AND PROCEDURES

 


ITEM 4.

CONTROLS AND PROCEDURES


(a) Evaluation of disclosure controls and procedures.


Under the supervision and with the participation of theThe Company’s management including the principal executive officeris responsible for establishing and principalmaintaining adequate internal control over financial officer, as of the end of the period covered by this report, the Company conducted an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures, asreporting (as defined in Rule 13a-15(e) and 15d-15(e)13a-15(f) under the Exchange Act. The Company’s disclosure controls and procedures areAct). Our internal control over financial reporting is a process designed to provide reasonable assurance that the information required to be included in the Company’s reports to the Commission is recorded, processed, summarized and reported within the time periods specified in Commission rules and forms and to provide reasonable assurance that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. Based on this evaluation, the Company’s principal executive officer and principal financial officer concluded that, as of the period covered by this report, the Company’s disclosure controls and procedures are not effective at these reasonable assurance levels for the reasons stated below.


Our internal control system is designed to provide reasonable cost-effective assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States. There is no assurance that our disclosure controls or our

Because of its inherent limitations, internal controlscontrol over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can prevent all errors. Anprovide only reasonable assurance of achieving their control objectives. Furthermore, smaller reporting companies such as the Company face additional limitations. Smaller reporting companies employ fewer individuals and find it difficult to properly segregate duties. Often, one or two individuals control every aspect of our operation and are in a position to override any system of internal control. Additionally, smaller reporting companies tend to utilize general accounting software packages that lack a rigorous set of software controls.

Our management, with the participation of the Chief Executive Officer, evaluated the effectiveness of our internal control system, no matter how well designed and operated, has inherent limitations, includingover financial reporting as of June 30, 2022. In making this assessment, our management used the possibilitycriteria set forth by the Committee of human error. BecauseSponsoring Organizations of the inherent limitationsTreadway Commission (COSO) in a cost-effectiveInternal Control — 2013 Integrated Framework. Based on this evaluation, our management, with the participation of the President, concluded that, as of June 30, 2022, our internal control system, misstatementsover financial reporting was not effective due to error may occurthe material weaknesses in the system of internal control described below.

Specifically, management identified the following control deficiencies: (1) the Company has not properly segregated duties as one or two individuals initiate, authorize, and complete all transactions. The Company has not be detected. We monitor our disclosure controlsimplemented measures that would prevent the individuals from overriding the internal control system. (2) The Company has installed accounting software that does not prevent erroneous or unauthorized changes to previous reporting periods and internal controls and make modifications as we believe appropriate given our financial resourcesdoes not provide an adequate audit trail of entries made in the accounting software. (3) Due to the size of the Company and limited level of activities. Our intent in this regard is that our disclosure controls and our internal controls will improve as systems change and conditions warrant.personnel, the Company has not hired an individual with technical accounting expertise within the accounting function.


(b) Changes in internal controls.


Our Certifying Officers have indicated that there were no changes in our internal controls over financial reporting or other factors during the three months ending September 30, 2017, that could significantly affect such controls subsequent to the date of his evaluation, and there were no such control actions with regard to significant deficiencies and material weaknesses.


19 



17




PART II. OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS


ITEM 1.

LEGAL PROCEEDINGS


None.


ITEM 1A.RISK FACTORS

RISK FACTORSImpacts of COVID-19 on our business


Not requiredThe impact of a novel strain of coronavirus (COVID-19), and measures to prevent its spread are affecting the macroeconomic environment and while the full impact is uncertain, our business and results of operations could be materially adversely affected. The impact on our business will depend on a number of factors such as the duration and extent of COVID-19, governmental actions, changes in consumer behavior, responses of our third-party business partners and general economic activity.

We are attempting to conduct business as usual to the extent possible and are complying with the applicable orders issued by smaller reporting companies.the Governor of Colorado. The Company has been granted the status of essential operations and our staff continues to work in our lab.

The impact of the COVID-19 outbreak may also exacerbate other risks discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K, any of which could have a material effect on us.

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


ITEM 2.None

UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF PROCEEDS


During the three months ended September 30, 2017, the Company issued no additional shares of stock.

ITEM 3.DEFAULTS UPON SENIOR SECURITIES


ITEM 3.

DEFAULTS UPON SENIOR SECURITIES


None.

ITEM 4.MINE SAFETY DISCLOSURES


ITEM 4.

MINE SAFETY DISCLOSURES


Not applicable.

ITEM 5.OTHER INFORMATION


ITEM 5.

OTHER INFORMATION


None.


ITEM 6.

EXHIBITS


31.1

ITEM 6.
EXHIBITS

 

31.1

Rule 13a-14(a)/15d-14(a) Certification

31.2

R31.2

Ruleule 13a-14(a)/15d-14(a) Certification

32.1

32.1

Section 1350 Certification

101.INS

101

Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File

because its XBRL tags are embedded within the Inline XBRL document)
101.SCHInline XBRL Taxonomy Extension Schema Document
101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEFInline XBRL Taxonomy Extension Definition Linkbase Document
101.LABInline XBRL Taxonomy Extension Label Linkbase Document
101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document
104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)






20 



18



SIGNATURES


SIGNATURES


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


EVOLUTIONARY GENOMICS, INC.

BY:

/s/ Steve B Warnecke

Steve B Warnecke

Chief Executive Officer and Chief Financial Officer

November 13, 2017

August 8, 2022





21





19