UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~October 31, 2020~~April 30, 2021

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to ..

Commission File No. 000-56196

Odyssey Group International, Inc.

(Exact name of registrant as specified in its charter)

Nevada

47-1022125

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

2372 Morse Avenue, Irvine, CA 92614

(Address of principal executive offices, including zip code)

(619) 832-2900

(Registrant’s telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act: None

Title of each Class	Trading Symbol	Name of each exchange on which registered
N/A	N/A	N/A

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

Title of each Class	Trading Symbol	Name of each exchange on which registered
Common Stock ($0.001 par value)	ODYY	OTC

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. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

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

	Large accelerated filer o	Accelerated filer o
	Non-accelerated filer o	Smaller reporting company x
	Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

~~90,570,202~~96,891,168 shares of common stock, par value $.001 per share, outstanding as of ~~December 10, 2020~~June 21, 2021.

ODYSSEY GROUP INTERNATIONAL, INC.

FORM 10-Q

For the Quarter Ended ~~October 31, 2020~~April 30, 2021

INDEX

		Page
PART I. FINANCIAL INFORMATION		31
Item 1	Financial Statements	31
	Balance Sheets	31
	Statements of Operations and Comprehensive Loss	42
	Statements of Stockholders’ Equity (Deficit)	53
	Statements of Cash Flows	64
	Notes to Financial Statements	75
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1417
Item 3	Quantitative and Qualitative Disclosures About Market Risk	1926
Item 4	Controls and Procedures	1926

PART II. OTHER INFORMATION		27
Item 1A	Risk Factors	2127
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	27
Item 6	Exhibits	3227
~~Signature~~Signatures		2228

Part I - FINANCIAL INFORMATION

Item 1 - Financial Statements

Odyssey Group International, Inc.

Balance Sheets

(Unaudited)

October 31, July 31,
2020 2020

Assets
Current assets:
Cash $ 292,756 $ 62,952
Prepaid expenses 102,500 36,667
Total current assets 395,256 99,619

Property and equipment, net of accumulated depreciation of $2,483 and $2,345 827 965
Intangible assets, net of accumulated amortization of $47,500 and $45,000 2,500 5,000
Total assets $ 398,583 $ 105,584

Liabilities and Stockholders' Deficit
Current liabilities:
Accounts payable $ 424,040 $ 269,388
Accrued wages 211,736 211,702
Accrued interest 22,810 14,743
Notes payable, net of unamortized debt discount of $455,024 and $233,770 239,976 211,230
Total current liabilities 898,562 707,063

Long-term debt 50,000 50,000
Total liabilities 948,562 757,063

Shareholders' equity (deficit):
Preferred stock, $0.001 par value, 100,000,000 shares authorized, no shares issued or outstanding – –
Common stock, $0.001 par value, 500,000,000 shares authorized, 90,570,202 and 88,559,978 shares issued and outstanding 90,570 88,560
Additional paid-in-capital 28,921,693 28,110,689
Accumulated deficit (29,562,242 ) (28,850,728 )
Total stockholders' deficit (549,979 ) (651,479 )
Total liabilities and stockholders' deficit $ 398,583 $ 105,584
April 30, July 31,
2021 2020

Assets
Current assets:
Cash $ 1,378,225 $ 62,952
Prepaid expenses 75,000 36,667
Total current assets 1,453,225 99,619

Property and equipment, net of accumulated depreciation of $2,758 and $2,345 552 965
Intangible assets, net of accumulated amortization of $50,000 and $45,000 – 5,000
Total assets $ 1,453,777 $ 105,584

Liabilities and Stockholders' Deficit
Current liabilities:
Accounts payable $ 338,845 $ 269,388
Accrued wages 246,872 211,702
Accrued interest 14,098 14,742
Asset purchase liability 1,125,026 –
Notes payable, net of unamortized beneficial conversion feature, debt discount and closing costs of $616,183 and $233,770 675,847 211,231
Total current liabilities 2,400,688 707,063

Long-term debt – 50,000
Total liabilities 2,400,688 757,063

Shareholders' deficit:
Preferred stock, $0.001 par value, 100,000,000 shares authorized, no shares issued or outstanding – –
Common stock, $0.001 par value, 500,000,000 shares authorized, 101,539,105 and 88,559,978 shares issued and outstanding 101,539 88,560
Additional paid-in-capital 41,784,782 28,110,689
Accumulated deficit (42,833,232 ) (28,850,728 )
Total stockholders' deficit (946,911 ) (651,479 )
Total liabilities and stockholders' deficit $ 1,453,777 $ 105,584
The accompanying notes are an integral part of these financial statements.
1
Odyssey Group International, Inc.
Statements of Operations and Comprehensive Loss
(Unaudited)

For the Three Months Ended
April 30,

For the Nine Months Ended
April 30,

2021 2020 2021 2020

General and administrative expense $ 2,654,320 $ 867,665 $ 3,813,380 $ 2,690,140
In-process research and development 9,440,000 – 9,440,000 –
Loss from operations (12,094,320 ) (867,665 ) (13,253,380 ) (2,690,140 )

Interest expense 357,370 131,610 779,124 326,692
Other income (50,000 ) – (50,000 ) –
Net loss and comprehensive loss $ (12,401,690 ) $ (999,275 ) $ (13,982,504 ) $ (3,016,832 )

Basic and diluted net loss per share $ (0.13 ) $ (0.01 ) $ (0.15 ) $ (0.02 )

Shares used for basic and diluted net loss per share 98,382,540 87,170,622 93,135,527 87,113,296
The accompanying notes are an integral part of these financial statements.
2
Odyssey Group International, Inc.
Statements of Stockholders' Equity (Deficit)
(Unaudited)
Shares Dollars Additional Paid-In Capital Accumulated Deficit Total Equity (Deficit)
Balances, July 31, 2020 88,559,978 $ 88,560 $ 28,110,689 $ (28,850,728 ) $ (651,479 )
Conversion of convertible note payable 214,000 214 106,786 – 107,000
Stock-based compensation – – 130,301 – 130,301
Common stock issued in debt financing 420,000 420 196,980 – 197,400
Common stock issued in equity financing 1,396,224 1,396 248,604 – 250,000
Stock forfeited (20,000 ) (20 ) – – (20 )
Warrants issued in connection with debt and equity financings – – 128,333 – 128,333
Net loss – – – (711,514 ) (711,514 )
Balances, October 31, 2020 90,570,202 90,570 28,921,693 (29,562,242 ) (549,979 )
Common stock issued for services 540,000 540 69,460 – 70,000
Stock-based compensation – – 111,728 – 111,728
Common stock issued to LGH in connection with debt financing 300,000 300 83,700 – 84,000
Common stock issued to LPC in connection with equity financing 200,000 200 34,880 – 35,080
Beneficial conversion feature of LGH financing – – 19,780 – 19,780
Warrants issued in connection with debt and equity financings – – 82,720 – 82,720
Net loss – – – (869,300 ) (869,300 )
Balances, January 31, 2021 91,610,202 91,610 29,323,961 (30,431,542 ) (1,015,971 )
Common stock issued for services 100,000 100 123,150 – 123,250
Stock-based compensation 887,437 – 887,437
Common stock issued in asset purchase agreement 6,000,000 6,000 8,254,000 – 8,260,000
Conversion of convertible note debt financing 298,165 298 245,802 – 246,100
Conversion of convertible note debt financing in connection with LGH 594,000 594 88,506 89,100
Common stock issued in equity financing 1,485,834 1,486 1,213,014 – 1,214,500
Common stock issued in connection with LPC share purchase 1,350,904 1,351 1,185,044 – 1,186,395
Common stock issued in connection with LGH financing 100,000 100 40,865 – 40,965
Warrants issued in connection with debt financings 423,003 423,003
Net loss (12,401,690 ) (12,401,690 )
Balances, April 30, 2021 101,539,105 $ 101,539 $ 41,784,782 $ (42,833,232 ) $ (946,911 )
Shares Dollars Additional Paid-In Capital Accumulated Deficit Total Equity (Deficit)
Balances, July 31, 2019 86,990,400 $ 86,990 $ 23,821,124 $ (24,501,872 ) $ (593,758 )
Stock-based compensation – – 1,048,312 – 1,048,312
Warrants and beneficial conversion feature issued with convertible notes – – 85,430 – 85,430
Net loss – – – (1,416,612 ) (1,416,612 )
Balances, October 31, 2019 86,990,400 86,990 24,954,866 (25,918,484 ) (876,628 )
Stock-based compensation – – 181,874 – 181,874
Common stock issued for services 200,000 200 269,800 – 270,000
Net loss – – – (600,945 ) (600,945 )
Balances, January 31, 2020 87,190,400 87,190 25,406,540 (26,519,429 ) (1,025,699 )
Common stock issued for services 546,708 – 546,708
Warrants and beneficial conversion feature issued with convertible notes – – 250,000 – 250,000
Net loss – – – (999,275 ) (999,275 )
Balances, April 30, 2020 87,190,400 $ 87,190 $ 26,203,248 $ (27,518,704 ) $ (1,228,266 )

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

3

Odyssey Group International, Inc.
Statements of ~~Operations and Comprehensive Loss~~Cash Flows
(Unaudited)

For the Three Months Ended October 31,
2020 2019

General and administrative expense $ 525,269 $ 1,322,721
Loss from operations (525,269 ) (1,322,721 )

Interest expense 186,245 93,891
Net loss and comprehensive loss $ (711,514 ) $ (1,416,612 )

Basic and diluted net loss per share $ (0.01 ) $ (0.02 )

Shares used for basic and diluted net loss per share 90,281,255 86,990,400
For the Nine Months Ended April 30,
2021 2020

Cash flows from operating activities:
Net loss $ (13,982,504 ) $ (3,016,832 )
Adjustments to reconcile net loss to net cash flows used in operating activities:
Depreciation and amortization 5,413 7,915
Stock-based compensation 1,129,446 2,046,895
Stock issued for services 193,250 –
Debt Discount from beneficial conversion feature, warrants closing cost and inducement shares (125,202 ) –
Amortization of beneficial conversion feature, debt discount and closing costs 718,989 352,384
In-process R& D 8,260,000 –
Financing costs paid with stock 169,000 –
Gain on forgiveness of long-term debt (50,000 ) –
(Increase) decrease in prepaid expenses (38,333 ) 158,932
Increase (decrease) in accounts payable 69,457 17,173
Increase in accrued wages 35,170 17,399
Increase in accrued interest 29,056 75,681
Decrease in asset purchase liability 1,125,026 –
Net cash used in operating activities (2,461,232 ) (340,453 )

Cash flows from investing activities: – –

Cash flows from financing activities:
Proceeds from notes payable 1,565,000 200,000
Financing closing costs paid with cash (169,000 ) –
Principal payments made on notes payable (305,470 ) –
Proceeds from equity financing 2,685,975 –
Net cash provided by financing activities 3,776,505 200,000

Increase (decrease) in cash 1,315,273 (140,453 )

Cash:
Beginning of period 62,952 167,095
End of period $ 1,378,225 $ 26,642

Supplemental disclosure of cash flow information
Cash paid for interest $ 30,310 $ –

Supplemental disclosure of non-cash information:
Beneficial conversion feature related to notes payable $ – $ 335,430
Note receivable related to a note payable – 100,000
Common stock issued for conversion of notes payable and related accrued interest 442,200 –
Common stock issued for debt financing commitment shares 197,400 –
Warrants issued in connection with financings 634,056 –
Original issue discount on debt 169,200 –
Stock issued in exchange for closing costs 124,965 –
Beneficial conversion feature recognized 19,780 –

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

4

Odyssey Group International, Inc.
~~Statements of Stockholders' Equity (Deficit)~~
~~(Unaudited)~~
Additional Total
Paid-In Accumulated Equity
Shares Dollars In Capital Deficit (Deficit)
Balances, July 31, 2020 88,559,978 $ 88,560 $ 28,110,689 $ (28,850,728 ) $ (651,479 )
Note payable converted to common stock 214,000 214 106,786 – 107,000
Stock-based compensation – – 130,301 – 130,301
Common stock issued in debt financing 420,000 420 196,980 – 197,400
Common stock issued in equity financing 1,396,224 1,396 248,604 – 250,000
Stock forfeited (20,000 ) (20 ) – – (20 )
Warrants issued in connection with financings – – 128,333 – 128,333
Net loss – – – (711,514 ) (711,514 )
Balances, October 31, 2020 90,570,202 $ 90,570 $ 28,921,693 $ (29,562,242 ) $ (549,979 )
Additional Total
Paid-In Accumulated Equity
Shares Dollars In Capital Deficit (Deficit)
Balances, July 31, 2019 86,990,400 $ 86,990 $ 23,821,124 $ (24,501,872 ) $ (593,758 )
Stock-based compensation – – 1,048,312 – 1,048,312
Warrants and beneficial conversion feature issued with convertible notes – – 85,430 – 85,430
Net loss – – – (1,416,612 ) (1,416,612 )
Balances, October 31, 2019 86,990,400 $ 86,990 $ 24,954,866 $ (25,918,484 ) $ (876,628 )
~~The accompanying notes are an integral part of these financial statements.~~
5
~~Odyssey Group International, Inc.~~
~~Statements of Cash Flows~~
~~(Unaudited)~~
For the Three Months Ended October 31,
2020 2019

Cash flows from operating activities:
Net loss $ (711,514 ) $ (1,416,612 )
Adjustments to reconcile net loss to net cash flows used in operating activities:
Depreciation and amortization 2,638 2,638
Stock-based compensation 130,281 1,048,312
Amortization of beneficial conversion feature 88,333 70,309
Amortization of debt discount and closing costs 82,846 –
Other non-cash interest expense 7,000 –
Changes in operating assets and liabilities:
Increase in prepaid expenses (65,833 ) 82,977
Increase in accounts payable 154,652 1,031
Increase (decrease) in accrued wages 34 (27,013 )
Increase in accrued interest 8,067 23,583
Net cash used in operating activities (303,496 ) (214,775 )

Cash flows from financing activities:
Proceeds from notes payable 315,000 150,000
Financing closing costs paid (31,700 ) –
Proceeds from equity financing 250,000 –
Net cash provided by financing activities 533,300 150,000

Increase (decrease) in cash and cash equivalents 229,804 (64,775 )

Cash and cash equivalents:
Beginning of period 62,952 167,095
End of period $ 292,756 $ 102,320

Supplemental disclosure of non-cash information:
Beneficial conversion feature related to Note payable $ – $ 85,430
Common stock issued for conversion of notes payable $ 107,000 $ –
Common stock issued for debt financing commitment shares $ 197,400 $ –
Warrants issued in connection with financings $ 128,333 $ –
Original issue discount on debt $ 35,000 $ –
~~The accompanying notes are an integral part of these financial statements.~~
6
~~Odyssey Group International, Inc.~~
Notes to Financial Statements
(Unaudited)

Note 1.       Basis of Presentation and Nature of Operations

Basis of Presentation
The accompanying financial information of Odyssey Group International, Inc. is unaudited and has been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). However, such information reflects all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods. The financial information as of July 31, 2020 is derived from our 2020 Annual Report on Form 10-K. The financial statements included herein should be read in conjunction with the financial statements and the notes thereto included in our 2020 Annual Report on Form 10-K filed with the SEC on November 16, 2020. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full year.

Significant Accounting Policies
Our significant accounting policies have not changed during the ~~three~~nine months ended ~~October 31, 2020~~April 30, 2021 from those disclosed in our Annual Report on Form 10-K for the year ended July 31, 2020.
Research and Development
Research and development expense is expensed as incurred as a component of General and administrative expense and totaled $565,764 and $608,383 for the three and nine months ended April 30, 2021, respectively, and $0 and $10,000 for the three and nine months ended April 30, 2020, respectively.
In-process Research and Development
In-process research and development is expensed upon purchase and totaled $9,440,000 for the three and nine months ended April 30, 2021, and $0 for the three and nine months ended April 30, 2020. See Note 3 to Notes to Financial Statements for additional information.

Reclassifications
Certain immaterial reclassifications were made to the prior period financial statements to conform to the current period presentation. There was no effect on our Statements of Operations and Comprehensive Loss ~~and Statement~~or Statements of Cash Flows.

Nature of Operations
Our business model is to develop or acquire medical related products, engage third parties to help develop and manufacture such products and then distribute the products through various distribution channels, including third parties. We have ~~product development projects in three~~acquired four different ~~life-saving~~ technologies; the CardioMap® heart monitoring and screening device, the Save a Life choking rescue device and atwo unique neurosteroid drug ~~compound~~compounds intended to treat rare brain ~~disorders.~~disorders and mild brain trauma (concussions). We intend to acquire other technologies and assets and plan to be a trans-disciplinary product development company involved in the discovery, development and commercialization of products and technologies that may be applied over various medical markets.

We plan to license, improve and develop our products and identify and select distribution channels. We intend to establish agreements with distributors to get products to market quickly, as well as to undertake and engage in our own direct marketing efforts. We will determine the most effective method of distribution for each unique product that we include in our portfolio. We will engage third-party research and development firms who specialize in the creation of our products ~~to assist us in the development of our own products~~ and we will apply for trademarks and patents ~~once~~as we ~~have developed~~develop proprietary products.

We are not currently selling or marketing any products, as our products are in ~~late-stage~~various stages of development and Food and Drug Administration ("FDA") clearance or approval to market our products will be required in order to sell in the United States.
5

Note 2.       New Accounting Pronouncements

ASU 2019-12
In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “Income Taxes (Topic 740),” which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the amendments is permitted, including adoption in any interim period for which financial statements have not yet been issued. Depending on the amendment, adoption may be applied on the retrospective, modified retrospective or prospective basis. We do not expect the adoption of ASU 2019-12 to have a material effect on our financial position, results of operations or cash flows.

7
ASU 2020-06
In August 2020, the FASB issued ASU 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40),” which simplifies the accounting for convertible instruments, reduces complexity for preparers and practitioners and improves the decision usefulness and relevance of the information provided to financial statement users. ASU 2020-06 also amends the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. We have not yet determined the impact of adoption this standard on our financial position, results of operations or cash flows.

Note 3.       Asset Purchase Agreement
On January 7, 2021, we entered into an Asset Purchase Agreement (the “APA”) with Prevacus, Inc. (“Prevacus”), pursuant to which we purchased the assets and all of the rights, interests and intellectual property in a certain drug program (PRV-002) for treating mild brain trauma (concussion) and the delivery device (collectively, the “Asset”) in exchange for (i) 7,000,000 shares of our common stock plus (ii) the Milestone Consideration. Prevacus is a related party, as we are party to a Joint Venture and Intellectual Property Purchase Agreement, entered into in June 2019 and its President, Dr. Jacob Vanlandingham, is a member of our Board of Directors.
The Milestone Consideration (“Milestone”) may be earned by Prevacus as follows:
(i) 2,000,000 shares of our Common Stock when the United States Patents are revived in our name by the U.S. Patent and Trademark Office and any international patents that have lapsed also revived in our name by the respective country’s patent offices. The value of shares issued shall not exceed $6,000,000 based on the price of our common stock on the date the payment is due;
(ii) 1,000,000 shares of our common stock upon successful first dosing in a Phase I Clinical Trial for the Asset;
(iii) 2,000,000 shares of our common stock upon the grant and issuance to us of a Patent for the Asset from the U.S. Patent and Trademark Office, the value of which shall not exceed $10,000,000 based on the price of our common stock on the date the payment is due;
(iv) 1,000,000 shares of our common stock upon our receipt of net proceeds of at least $1,000,000 in a Non-Dilutive Financing relating directly to the development of the Asset within one year after the Closing Date or, in the event of any Non-Dilutive Financing submitted prior to the one year anniversary of the Closing Date, the milestone will stay effective until the second year anniversary of the Closing Date;
(v) 2,000,000 shares of our common stock if we sell the Asset to a Third Party resulting in net proceeds to us of at least $50,000,000 after a Phase IB Clinical Trial for which we are the sponsor is complete, but prior to completion of a Phase II Clinical Trial. The value of the 2,000,000 shares related to this milestone shall not exceed $25,000,000 based on the price of our common stock on the date the payment is due;
(vi) 4,000,000 shares of our common stock upon the successful completion of a Phase II Clinical Trial for the Asset that leads to (I) our sale of the Asset to a Third Party resulting in net proceeds to us of at least $50,000,000; or (II) the administration of the first dose in a Phase III Clinical Trial for the Assetfor which we are, or one of our affiliates or licensees is the sponsor; and
(vii) 2,000,000 shares of our common stock after the first dosing in a Phase II Clinical Trial and the successful completion of a Phase 1B human clinical trial.
All Milestone payments shall only be paid once, upon the initial achievement of the particular Milestone event. Odyssey, at its sole and absolute discretion shall determine if any Milestone event has occurred. To extent the related milestones are not achieved, the above-mentioned Milestone payments will terminate and cease to exist, and we will no longer be liable thereunder, if said Milestone is not completed within four years after the Closing Date.
6
On March 1, 2021 (the “Closing Date”), our APA with Prevacus closed and we issued 6,000,000 shares of our common stock valued at the fair market value of $1.18 per share for the stock granted on the date of acquisition for $7,080,000. In addition, 1,000,000 shares of our common stock valued at $1.18 per share for $1,180,000 was recorded as a component of Additional Paid in Capital for the probability of earning the Milestone Consideration of first dosing in a Phase I Clinical Trial. In addition, we withheld 1,000,000 shares of our common stock valued at $1.18 per share, for $1,180,000, in exchange for our payment of certain liabilities of Prevacus. We determined that in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 730 Research and Development (ASC 730-10-25-2(c)) and pursuant to ASC 730-10-25-2(c), intangibles purchased from others for use in particular research and development projects and that have no alternative future use in research and development or otherwise, represent costs of research and development as acquired, and therefore are expensed when incurred.
On March 1, 2021, the date of acquisition, we expensed $9,440,000 as In-process research and development. At April 30, 2021, our Asset purchase liability account balance was $1,125,026. The net change in the Asset purchase liability account will be released as shares at $1.18 per share once all liabilities have been paid.
At April 30, 2021 we have contingent consideration related to the Milestones in the APA entered into March 1, 2021. According to the agreement, we will issue common stock at the fair value at date of meeting the Milestone Consideration (i) and (iii – vii). The fair value of the contingent consideration was reviewed and it was determined that based on the current status of the project (Level 3), the value was zero for the current period ended April 30, 2021 since it is not yet probable that we will meet the future Milestone consideration.
Note 4.       Fair Value

The fair value of financial assets and liabilities are determined utilizing a three-level framework as follows:

Level 1 – Observable inputs, such as unadjusted quoted prices in active markets, for substantially identical assets and liabilities.

Level 2 – Observable inputs other than quoted prices within Level 1 for similar assets and liabilities. These include quoted prices for similar assets and liabilities in active markets, quoted prices for identical assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. If the asset or liability has a specified or contractual term, the input must be observable for substantially the full term of the asset or liability.

Level 3 – Unobservable inputs that are supported by little or no market activity, generally requiring a significant amount of judgment by management.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Further, although we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

We did not have any transfers of assets or liabilities measured at fair value on a recurring basis to or from Level 1, Level 2 or Level 3 during the ~~three~~nine months ended ~~October 31, 2020~~April 30, 2021 or the year ended July 31, 2020.

The carrying values of cash, prepaid expenses, accounts payable and accrued wages approximate their fair value due to their short maturities.

No changes were made to our valuation techniques during the quarter ended ~~October 31, 2020.~~April 30, 2021.
7

Contingent ~~Liability~~Liabilities
At ~~October 31, 2020~~April 30, 2021 and July 31, 2020, we had contingent consideration related to the acquisition of intellectual property, know-how and patents for an anti-choking, life-saving medical device in fiscal 2019. According to the agreement, we will make a one-time cash payment totaling $250,000 upon FDA clearance of the device. The fair value of the contingent consideration is reviewed quarterly and determined based on the current status of the project (Level 3). We determined the value was zero at both periods since it is not yet probable that we will file for FDA clearance.

Fixed-Rate Debt
We have fixed-rate debt that is reported on our Balance Sheets at carrying value less unamortized debt discount and closing costs. The fair value of our fixed rate debt was calculated using a discounted cash flow methodology with estimated current interest rates based on similar risk profile and duration (Level 2). The carrying value, excluding unamortized debt discount and debt issuance costs, and the fair value of our fixed-rate long-term debt was as follows:

October 31, 2020 July 31, 2020
Carrying value $ 695,000 $ 445,000
Fair value $ 694,987 $ 445,000
8
April 30, 2021 July 31, 2020
Carrying value $ 1,292,030 $ 445,000
Fair value $ 1,233,415 $ 445,000

Non-Financial Assets
Non-financial assets, such as Property and equipment and Intangible assets, are measured at fair value on a non-recurring basis when events or circumstances indicate that an impairment may have occurred. If we determine these assets to be impaired, they are reported at fair value as calculated during the period. No non-financial assets were recorded at fair value during the ~~three~~nine months ended ~~October 31, 2020~~April 30, 2021 or the fiscal year ended July 31, 2020.

Note 4.5.       Debt

LGH Investments, LLC
December 2020 Promissory Note
On December 11, 2020, we entered into a Securities Purchase Agreement (the “2020 LGH Agreement ”) with LGH Investments, LLC (“LGH”), pursuant to which we entered into a $165,000 face value convertible promissory note which bore interest at a one-time rate of 8.0% applied to the face value and was due September 11, 2021 (the “2020 Note”). We received $150,000 from the issuance of the 2020 Note and incurred a $15,000 original issue discount and $7,500 closing costs, which were being amortized over the life of the 2020 Note.
The 2020 Note was convertible at a price of $0.15 per share, subject to adjustment as provided in the 2020 Note.
The 2020 LGH Agreement included the issuance of a five-year share purchase warrant exercisable for 470,000 shares of our common stock at a price of $0.35 per share and 200,000 shares of our common stock.
The value of the 470,000 warrants was $82,720 and the value of the 200,000 shares of common stock was $40,000 for a total value of $122,720, which were being amortized over the life of the 2020 Note as closing costs. Additionally, 100,000 shares valued at $44,000 were expensed as financing costs when incurred.
The conversion feature met the criteria for characterization as a beneficial conversion feature and, accordingly, we allocated $19,780 of the proceeds to the beneficial conversion feature, which was also being amortized over the life of the 2020 Note.
On March 5, 2021, LGH notified us of their intent to convert their $165,000 convertible promissory note plus $13,200 of interest. We negotiated with them to convert $89,100 of the total into 594,000 shares of our common stock and paid the remaining $89,100 in cash.
8
April 2021 Promissory Note
On April 5, 2021, we entered into a Securities Purchase Agreement with LGH (“2021 LGH Agreement”) pursuant to which we entered into a $1,050,000 face value convertible promissory note which bears interest at a one-time rate of 8.0% applied to the face value and is due February 5, 2022 (the “2021 Note”). We received $970,000 net cash from the issuance of the 2021 Note and incurred a $50,000 original issue discount and $30,000 closing costs, which are being amortized over the life of the 2021 Note.
The 2021 Note is convertible at a price of $1.00 per share. If an Event of Default occurs as defined in the 2021 Note, the Outstanding Balance shall immediately increase to one hundred twenty percent (120%) of the Outstanding Balance immediately prior to the occurrence of the Event of Default and the conversion price will be $1.00 per share.
The 2021 LGH Agreement included the issuance of a five-year share purchase warrant exercisable for 1,134,000 shares of our common stock at a price of $0.95 per share and 100,000 shares of our common stock.
The value of the 1,134,000 warrants was $877,716, of which $423,003 was allocated as debt discount and the value of the 100,000 shares of common stock was $85,000 of which $40,965 was allocated as the fair value of the common shares, for a total value of $463,968 which is being amortized over the life of the Note.
Labrys Fund, LP
On August 14, 2020, we entered into a Securities Purchase Agreement (the “Labrys SPA”) with Labrys Fund, LP (“Labrys”), pursuant to which Labrys purchased a $350,000 (the “Principal Amount”) Self-Amortization Promissory Note (the “Note”) for $315,000 in cash with an original issuance discount of approximately 10%. In consideration for entering into the Labrys SPA, we issued 420,000 shares (the “Commitment Shares”) of our common stock with a value of $197,400. 350,000 of the Commitment Shares (the “Second Commitment Shares”) will be returned to us if the Note is fully repaid and satisfied on or prior to August 14, 2021 (the “Maturity Date”). The Note bears interest at 12% per year.

Upon the occurrence of any “Event of Default,” the Note is convertible into shares of our common stock at a price per share equal to the closing bid price of the common stock on the trading day immediately preceding the date of conversion (the “Conversion Price”); provided, however, that Labrys may not convert any portion of the Note which would cause Labrys, collectively with its affiliates, to hold more than 4.99% of our issued and outstanding common stock, unless such limit is waived. Labrys may not execute any short sales on any of our common stock at any time while the Note is outstanding.

The Note requires that we reserve from our authorized and unissued common stock a number of shares equal to the greater of: (a) 1,140,000 shares or (b) the sum of (i) the number of shares of common stock issuable upon conversion of or otherwise pursuant to the Note and such additional shares of common stock, if any, as are issuable on account of interest on the Note pursuant to the Labrys SPA issuable upon the full conversion of the Note (assuming no payment of the principal amount or interest) as of any issue date multiplied by (ii) one and a half. We are subject to penalties for failure to timely deliver shares to Labrys following a conversion request.

The Labrys SPA and the Note contain covenants and restrictions common with this type of debt transaction. Furthermore, we are subject to certain negative covenants under the Labrys SPA and the Note, which we believe are customary for transactions of this type. At ~~October 31, 2020,~~April 30, 2021, we were in compliance with all covenants and restrictions.

We paid Alliance ~~Group~~Global Partners, LLP (“A.G.P.”) as a placement agent a fee of $25,200 and other closing costs of $6,500 for total closing costs of $31,700 which are being amortized over the one-year life of the Note.

9
Conversion of Convertible ~~Note~~Notes Payable
On August 14, 2020, we converted a ~~Convertible Promissory Note~~convertible promissory note with a face value of $100,000 and accrued interest of $7,000 into 214,000 shares of our common stock as calculated by the conversion price of the ~~Convertible Promissory Note~~convertible promissory note of $0.50 per share.
In February, March and April 2021, upon maturity, we converted five convertible promissory notes with an aggregate face value of $230,000 and aggregate accrued interest of $16,100 into 298,165 shares of our common stock as calculated by the conversion price of the convertible promissory notes with a weighted average conversion rate of $0.83 per share.
In February 2021, we settled a convertible promissory note with a face value of $20,000 and accrued interest of $1,400 with a cash payment totaling $21,400.
PPP Loan
On February 11, 2021, we received notice that the SBA Paycheck Protection Program loan for $50,000 was forgiven. The $50,000 gain is reflected as Other income on our Statements of Operations for the three and nine months ended April 30, 2021.

Notes Payable
The following notes payable were outstanding:

October 31, 2020 July 31, 2020
Convertible notes with maturities ranging from February 19, 2021 to May 8, 2021 with interest rates of 7% and convertible at $0.80 per share $ 345,000 $ 445,000
Note issued to Labrys due August 14, 2021 with an interest rate of 12% 350,000 –
695,000 445,000
Unamortized debt discount and closing costs 455,024 233,770
$ 239,976 $ 211,230
9
April 30, 2021 July 31, 2020
Convertible notes with maturities in May 2021 with interest rates of 7% and convertible at $0.80 per share $ 95,000 $ 445,000
Note issued to Labrys due August 14, 2021 with an interest rate of 12.0% 147,030 –
Convertible note issued to LGH due February 5, 2022 with an interest rate of 8.0% and convertible at $1.00 per share 1,050,000 –
1,292,030 445,000
Unamortized debt discount and closing costs (616,183 ) 233,770
$ 675,847 $ 211,230

Note ~~5.       Stock-Based Compensation~~6.       Share-based Payments

Stock Options
Stock option activity during the ~~quarter~~nine months ended ~~October 31, 2020~~April 30, 2021 was as follows:

Number of Options
Weighted Average Exercise Price Number of Options Weighted Average Exercise Price
Options outstanding at July 31, 2020 15,000,000 $ 0.25 15,050,000 $ 0.26
Options canceled (15,000,000 ) 0.25 (15,000,000 ) 0.25
Options outstanding at October 31, 2020 – $ –
Options granted 1,000,000 1.18
Options outstanding at April 30, 2021 1,050,000 $ 1.22
On March 1, 2021, as part of the APA and Dr. Vanlandingham’s employment agreement, Dr. Vanlandingham was granted 1,000,000 stock options with a fair market value of $941,000. 250,000 shares vest on signing of closing documents. 250,000 shares vest on Phase 1A first dosing of human, 250,000 shares vest on Phase 1B first dosing of human; and 250,000 shares vest upon Company being accepted on NASDAQ. These amounts are being expensed over the life of the awards and $490,104 was expensed to General and administrative expenses at April 30, 2021.
The foregoing table only includes stock options awarded to employees and others for services rendered to the Company. 600,000 options with an exercise price of $1.25 and a remaining term of 8.15 years issued as consideration for our acquisition of certain intellectual property assets are not reflected in the table above.

Restricted Stock Units (“RSUs”)
~~There was no~~ RSU activity during the ~~quarter~~nine months ended ~~October 31, 2020. At October 31, 2020, there were unvested~~April 30, 2021 was as follows:
RSUs outstanding at July 31, 2020 1,750,000
RSUs issued 4,775,000
RSUs vested (2,113,598 )
RSUs outstanding at April 30, 2021 4,411,402
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In January 2021, we issued RSUs ~~outstanding~~ covering ~~400,000~~4,000,000 shares of our common ~~stock.~~stock, with a value of $720,000, to two officers which vest equally over 36 months. In addition, we issued RSUs covering 50,000 shares of our common stock, with a value of $21,500, to a consultant, which vest equally over 24 months. In April 2021, we issued RSUs covering 50,000 shares of common stock to a consultant, with a value of $43,000 which vests in August 2021. These amounts are being expensed over the life of the awards and of these amounts, $88,465 was expensed to General and administrative expenses at April 30, 2021.
In March and April 2021, we entered into consulting agreements with two medical professionals for our Science Advisory Board and eight individuals for our Sports Advisory Board. In connection with the agreements, we issued RSUs covering 675,000 shares of our common stock which vest 50% upon signing and 50% in one year. These amounts are being expensed over the life of the awards and of these amounts, $241,908 was expensed to General and administrative expenses at April 30, 2021.

Unrecognized Compensation Costs
At ~~October 31, 2020,~~April 30, 2021, we had unrecognized stock-based compensation of ~~$5,387,~~$1,711,522, which will be recognized over the weighted average remaining vesting period of ~~0.25~~1.4 years.
In January 2021, the Compensation Committee agreed to provide Mr. Redmond 5,300,000 shares to replace the common stock shares agreed to in his December 2017 employment agreement that were never issued. The terms and conditions have not been determined but an agreement is under discussion.
Warrants
Warrant activity during the nine months ended April 30, 2021 was as follows:
Number of Warrants Weighted Average Exercise Price
Warrants outstanding at July 31, 2020 44,500 $ 1.50
Warrants issued 3,639,834 0.89
Warrants canceled (36,000 ) 1.50
Warrants outstanding at April 30, 2021 3,648,334 $ 0.89

Note 6.7.       Net Loss Per Share

Basic and diluted net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding for the period. Potentially dilutive common stock and common stock equivalents, including stock options, RSUs and warrants are excluded as they would be antidilutive.

The following anti-dilutive securities were excluded from the calculations of diluted net loss per share:

Three Months Ended October 31, Nine Months Ended April 30,
2020 2019 2021 2020
Options to purchase common stock 375,000 600,000 900,000 400,000
Shares issuable upon conversion of convertible notes and related accrued interest 448,711 712,063 1,183,691 1,355,278
Warrants to purchase common stock 584,500 35,000 3,648,334 50,000
Restricted stock units 1,350,000 1,500,000 2,113,598 750,000
Total potentially dilutive securities 2,758,211 2,847,063 7,845,623 2,555,278
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Note 7.8.       Common Stock Issuances

Conversion of Convertible ~~Note~~Notes Payable
On August 14, 2020, we converted a ~~Convertible Promissory Note~~convertible promissory note with a face value of $100,000 and accrued interest of $7,000 into 214,000 shares of our common stock as calculated by the conversion price of the ~~Convertible Promissory Note~~convertible promissory note of $0.50 per share.

In February, March and April 2021, upon maturity, we converted five convertible promissory notes with an aggregate face value of $230,000 and aggregate accrued interest of $16,100 into 298,165 shares of our common stock as calculated by the conversion price of the convertible promissory notes of $0.83 per share.
Private Placements
In February 2021, we sold a total of 960,834 shares of our common stock to 11 accredited investors for total proceeds of $689,500. Warrants for 960,834 shares our common stock were issued to the investors with an average exercise price of $1.23. The warrants expire six months from the date of closing and have a fair value of $426,273 and are a component of the total proceeds value.
In March 2021, we sold 525,000 Units at $1.00 per unit to 17 accredited investors for total proceeds of $525,000. Each Unit consisted of one share of our common stock and a right to purchase one share of our common stock $2.00. These rights expire one year from the date of closing and have a fair value of $250,950 and are a component of the total proceeds value.
Common Stock issued for Services
In January 2021, we entered into three agreements for consulting services to be provided. We granted the consultants 540,000 shares of our common stock with a value of $88,000 which was expensed as a component of General and administrative expenses.
On February 12, 2021, we entered into an agreement for consulting services to be provided through February 2022. We granted the consultant 75,000 shares of our common stock with a value of $93,750 which was expensed as a component of General and administrative expenses.
On March 1, 2021, we entered into an agreement for consulting services to be provided through February 2022. We granted the consultant 25,000 shares of our common stock with a value of $29,500 which was expensed as a component of General and administrative expenses.
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Lincoln Park Capital Fund
On August 14, 2020, we entered into a Purchase Agreement (the “LPC Purchase Agreement”) with Lincoln Park Capital Fund, LLC (“~~LPC”~~Lincoln Park” or “LPC”). ~~Upon the satisfaction of the conditions~~Pursuant to ~~our right to commence sales under~~ the LPC Purchase Agreement, including the registration of shares of our common stock issuable under the LPC Purchase Agreement in accordance with the RRA (the “Commencement”) and the date of satisfaction of such conditions the “Commencement Date”), we have the right, in our sole discretion, to sell to LPC up to $10,250,000 in shares of our common stock, from time to time over a 36-month period. In consideration for entering into the LPC Purchase Agreement, we issued 793,802 shares of our common stock to LPC.
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Upon entering into the LPC Purchase Agreement, we sold 602,422 shares of our common stock to LPC in an initial purchase for a total purchase price of $250,000. Thereafter, and subject to the conditions of the LPC Purchase Agreement and RRA, on any business day and subject to certain customary conditions, we may direct LPC to purchase to up to 200,000 shares of our common stock (such purchases, “Regular Purchases”). The amount of a Regular Purchase may increase up to 100,000 shares of common stock under certain circumstances based on the market price of the common stock. There are no limits on the price per share that LPC may pay to purchase common stock under the LPC Purchase Agreement, provided that LPC’s committed obligation under any Regular Purchase shall not exceed $50,000 unless the median aggregate dollar value of the volume of shares of common stock during the 20 consecutive trading day period ending on the date of the applicable Regular Purchase equals or exceeds $100,000, in which case LPC’s committed obligation under such single Regular Purchase shall not exceed $500,000.

In addition, if we have directed LPC to purchase the full amount of common stock available as a Regular Purchase on a given day, we may direct LPC to purchase additional amounts as “accelerated purchases” and “additional accelerated purchases” as set forth in the LPC Purchase Agreement. The purchase price of shares of our common stock will be based on the then prevailing market prices of such shares at the time of sale. The LPC Purchase Agreement limits our sale of shares of common stock to LPC, and LPC’s purchase or acquisition of common stock from us, to an amount of common stock that, when aggregated with all other shares of our common stock then beneficially owned by LPC would result in LPC having beneficial ownership, at any single point in time, of more than 4.99% of the then total outstanding shares of our common stock.

The LPC Purchase Agreement contains customary representations, warranties, covenants, closing conditions and indemnification and termination provisions. LPC has covenanted not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of our common stock. The LPC Purchase Agreement does not limit our ability to raise capital from other sources in our sole discretion; provided, however, that we shall not enter into any “Variable Rate Transaction” as defined in the LPC Purchase Agreement, including the issuance of any floating conversion rate or variable priced equity-like securities, but excluding any “At-the-Market” offering with a registered broker-dealer, until the later of (i) the 36-month anniversary of the date of the LPC Purchase Agreement, and (ii) the 36-month anniversary of the Commencement Date (if the Commencement has occurred), in either case irrespective of any earlier termination of the LPC Purchase Agreement. The LPC Purchase Agreement may be terminated by us at any time and at our discretion without any cost to us.

In connection with the LPC transaction, we engaged A.G.P. as a placement agent to help raise capital. A.G.P. introduced us to LPC, for which we agreed to pay A.G.P. a fee of 8% of the amount of the funds received from LPC, which totaled $20,000 in the quarter ended October 31, 2020. A.G.P. will also receive a fee totaling 8% of any additional funds raised pursuant to the LPC Purchase Agreement.

In addition, and in consideration for the service provided in connection with Labrys and LPC, we granted warrants that were immediately exercisable for a total of 550,000 shares of our common stock at $0.50 per share to A.G.P. and two partners of A.G.P. The warrants had a value of $220,000 and expire August 6, 2024. Of the $220,000, $91,667 was netted against the LPC equity transaction and $128,333 was recorded as debt closing costs related to the Labrys transaction and is being amortized over the one-year life of the note.

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Shares purchased by LPC, including the initial purchase, are summarized below:

Purchase Date
Number of Shares Purchased
Average
Purchase Price
per Share
Total Purchase Price Remaining Purchase Availability
August 14, 2020 602,422 $ 0.410 $ 250,000 $ 10,000,000
January 2021 200,000 0.175 35,080 9,964,920
February 2021 330,106 0.626 206,798 9,758,122
March 2021 1,020,798 0.960 979,597 8,778,525
2,153,326 $ 1,221,475
We paid A.G.P. a fee of $97,718 in connection with the 1,550,904 shares purchased in 2021.
The following table sets forth the remaining amount of gross proceeds we would receive from additional sales of our stock ~~to LPC~~ under the LPC Purchase Agreement at varying purchase ~~prices:~~prices as of April 30, 2021:

Assumed Average
Purchase Price
Per Share

Number of
Shares
to be Sold if
Full Purchase⁽¹⁾
Percentage of
Outstanding Shares Owned
After Giving Effect
to the Shares Sold⁽²⁾ Proceeds from
the Sale of Shares
to LPC⁽¹⁾
$0.10 18,668,942 18.4% $ 1,866,984
0.25 18,668,942 18.4    4,667,236
0.30⁽³⁾ 18,668,942 18.4    5,600,683
0.50 18,668,942 18.4    9,334,471
1.00 10,000,000 11.3    10,000,000
1.50    6,666,667 8.3 10,000,000
Assumed Average
Purchase Price
Per Share Number of
Shares
to be Sold if
Full Purchase⁽¹⁾ Percentage of
Outstanding Shares Owned
After Giving Effect
to the Shares Sold⁽²⁾ Proceeds from
the Sale of Shares
to LPC⁽¹⁾
$0.10 17,118,038 17% $ 3,183,279
0.25 17,118,038 17% 5,750,984
0.81⁽³⁾ 10,837,685 12% 10,250,000
1.00 8,778,525 10% 10,250,000
1.25 7,022,820 9% 10,250,000
1.50 5,852,350 8% 10,250,000

(1) Although the Purchase Agreement provides that we may sell up to an additional ~~$10,000,000~~$8,778,525 of our common stock to LPC, depending on the assumed average price per share, we may or may not be able to ultimately sell to Lincoln Park a number of shares of our common stock with a total value of ~~$10,000,000.~~$10,000,000 as the maximum number of shares to be sold totals 20,065,166. Following purchases and issuances made to date, 17,118,038 shares remained as of April 30, 2021.
(2) The numerator is based on the maximum number of shares purchased at the corresponding assumed purchase price plus the ~~1,396,224~~2,153,326 shares ~~already~~ owned by ~~LPC.~~LPC at April 30, 2021. The denominator is based on ~~90,570,202~~96,391,168 shares outstanding as of ~~October 31, 2020~~April 30, 2021 plus the number of shares assumed purchased. The table does not give effect to the prohibition contained in the LPC Purchase Agreement that prevents us from selling to LPC the number of shares such that, after giving effect to such sale, LPC and its affiliates would beneficially own more than 4.99% of the then outstanding shares of our common stock. Assuming the closing stock price of $0.30 per share on October 31, 2020 and the 4.99% limitation mentioned above, the total number of additional shares we could sell to LPC would be 1,891,039 for proceeds of $567,312.
(3) The closing price of our common stock on ~~October 31, 2020.~~April 30, 2021.


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Note 8.9.        Related Party Transactions

Due to Officers and Executives
The following amounts were due to ~~an officer and an executive~~our officers and were included in Accounts payable on our Balance Sheets:

October 31, 2020 July 31, 2020 April 30, 2021 July 31, 2020
Joseph M. Redmond, CEO $ – $ 2,304 $ 574 $ 2,304
Christine Farrell, Controller 20,000 25,598
Christine Farrell, CFO 803 25,598
$ 20,000 $ 27,902 $ 1,377 $ 27,902
The $1,377 is for reimbursement of accrued expenses due the officers.

The amount of salary due to Mr. Redmond for his services was included in Accrued wages on our Balance Sheets and was as follows:

Balance at July 31, 2020 $ 183,846 $ 183,846
Salary accrued – –
Salary paid – –
Balance at October 31, 2020 $ 183,846
Balance at April 30, 2021 $ 183,846

Accrued wages on our balance sheet is $246,872 and includes accrued wages and payroll taxes payable, which includes $10,769 of increased officer wages for our CEO and CFO, per their employment agreements entered into on January 21, 2021.
Related Party Transaction
On March 1, 2021, as part of the APA and Dr. Vanlandingham’s employment agreement, Dr. Vanlandingham was granted 1,000,000 stock options with a fair market value of $941,000. 250,000 shares vest on signing of closing documents. 250,000 shares vest on Phase 1A first dosing of human, 250,000 shares vest on Phase 1B first dosing of human; and 250,000 shares vest upon Company being accepted on NASDAQ. These amounts are being expensed over the life of the awards and $490,104 was expensed to General and administrative expenses at April 30, 2021.
Note 9.10.       Going Concern

We did not recognize any revenues for the year ended July 31, 2020 or the ~~quarter~~nine months ended ~~October 31, 2020~~April 30, 2021 and we had an accumulated deficit of ~~$29,562,242~~$42,833,232 as of ~~October 31, 2020.~~April 30, 2021. For the foreseeable future, we expect to experience continuing operating losses and negative cash flows from operations. Cash available at ~~October 31, 2020~~April 30, 2021 of ~~$292,756~~$1,378,225 may not provide enough working capital to meet our current operating expenses through ~~December 10, 2021.~~June 21, 2022.

The operating deficit indicates substantial doubt about our ability to continue as a going concern. Our continued existence depends on the success of our efforts to raise additional capital necessary to meet our obligations as they come due and to obtain sufficient capital to execute our business plan. We may obtain capital primarily through issuances of debt or equity or entering into collaborative arrangements with corporate partners. There can be no assurance that we will be successful in completing additional financing or collaboration transactions or, if financing is available, that it can be obtained on commercially reasonable terms. If we are not able to obtain the additional financing on a timely basis, we may be required to further scale down or perhaps even cease operations.

The issuance of additional equity securities could result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, would increase our liabilities and future cash commitments. Our financial statements do not include adjustments that might result from the outcome of this uncertainty.

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Additionally, as the novel coronavirus (“COVID-19”) pandemic continues to severely impact the U.S. and global economy, our business may be impacted in a variety of ways. Political, legal or regulatory actions as a result of the COVID-19 pandemic in jurisdictions where we may plan to manufacture, source or distribute products have created supply disruptions which could affect our plans, and may cause additional supply disruptions or shortages in the future. We cannot currently predict the frequency, duration or scope of these governmental actions and supply disruptions. For example, several countries, including India and China, have increased or instituted new restrictions on the export of medical or pharmaceutical products that we distribute or use in our business, including key components or raw materials. Governmental authorities in many countries, including the U.S., are enacting legislative or regulatory changes to address the impact of the pandemic, which may restrict or require changes in our operations, increase our costs, or otherwise adversely affect our operations.

12
If we are unable to raise additional capital by ~~December 10, 2021,~~June 21, 2022, we will adjust our current business plan. Due to the unknown and volatile nature of the stock price and trading volume of our common stock, is it is difficult to predict the timing and amount of availability pursuant to our equity line of credit with LPC (see Note 7.8 above). Given our recurring losses, negative cash flow, accumulated deficit, and the impact of COVID-19, there is substantial doubt about our ability to continue as a going concern.

Note ~~10.~~11. Subsequent ~~Event~~Events

~~On December 4, 2020,~~Conversion of Convertible Notes Payable
In May 2021, upon maturity, we converted four convertible promissory notes with an aggregate face value of $95,000 and accrued interest of $6,650 into 127,063 shares of our ~~registration statement on S-1 that was filed on November 23, 2020, was declared effective~~common stock as calculated by the Securities and Exchange Commission. The final prospectus was filed on December 8, 2020. The registration statement contains one prospectus which is incorporated by reference into this filing and is available in electronic form throughconversion price of the ~~Securities and Exchange Commission EDGAR system. We have not sold any shares under the prospectus.~~convertible promissory notes of $0.80 per share.

Private Placement
In June 2021, we sold 500,000 shares of our common stock at $0.59 per share along with a five-year share purchase warrant exercisable for 500,000 shares of our common stock at a price of $1.00 per share for total an aggregate purchase price of $295,000 to an accredited investor which also provided certain consulting services to the Company. The purchase price was paid with $250,000 cash and the satisfaction of $45,000 of amounts due to the investor for its consulting services.

Treasury Shares
In June, 2021, Green Energy Alternatives, Inc. returned 5,300,000 shares of stock to our common stock treasury, as the company is no longer in business.

1316

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

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This quarterly report on Form 10-Q contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical fact, included in this report regarding our strategy, future operations, future financial position, future revenues, projected costs, prospects and plans and objectives of management are forward-looking statements. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

We have based these forward-looking statements on our current expectations and projections about future events. Although we believe that the expectations underlying our forward-looking statements are reasonable, these expectations may prove to be incorrect, and all of these statements are subject to risks and uncertainties. Therefore, you should not place undue reliance on our forward-looking statements. You should understand that the following important factors could affect our future results and could cause those results or other outcomes to differ materially from those expressed or implied in our forward-looking statements:
We have based these forward-looking statements on our current expectations and projections about future events. Although we believe that the expectations underlying our forward-looking statements are reasonable, these expectations may prove to be incorrect, and all of these statements are subject to risks and uncertainties. Therefore, you should not place undue reliance on our forward-looking statements. You should understand that the following important factors could affect our future results and could cause those results or other outcomes to differ materially from those expressed or implied in our forward-looking statements:
· our limited operating history and no revenues, on which to evaluate our ability to achieve our business objective and projected cash needs and our expected future revenues, operations and expenditures;
· our potential ability to obtain additional financing on favorable terms;
· our public securities’ potential liquidity and trading;
· the extent to which we acquire or invest in businesses, products, and technologies; the scope, progress, results and costs of our clinical trials of our drug candidates and medical devices;
· our ability to successfully integrate our acquired products and technologies into our business, including the possibility that the expected benefits of the transactions will not be fully realized by us or may take longer to realize than expected;
· the safety and efficacy of our product candidates;
· the progress and timing of clinical trials;
· the costs, timing, and outcome of regulatory review of our product candidates;
· the timing of submissions to, and decisions made by the U.S. Food and Drug Administration (FDA) and other regulatory agencies, related to our product candidates to the satisfaction of the FDA and such other regulatory agencies;
· our ability to obtain, maintain and successfully enforce adequate patent and other intellectual property or regulatory exclusivity protection of our product candidates and the ability to operate our business without infringing the intellectual property rights of others;
· the costs of preparing, filing, and prosecuting patent applications and maintaining, enforcing, and defending intellectual property-related claims;
· the emergence of competing technologies and other adverse market developments;
· the impact of COVID-19 pandemic;
· changes in accounting standards; and
· the other risks and uncertainties discussed herein, in our annual report on form 10-K filed with the SEC on November 16, 2020 and our other filings with the SEC.

Many possible events or factors could affect our future financial results and performance and could cause actual results or performance to differ materially from those expressed, including those risks and uncertainties described in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended July 31, 2020 (“2020 Annual Report”) and those described from time to time in our future reports filed with the Securities and Exchange Commission (the “SEC”). We believe these risks and uncertainties could cause actual results or events to differ materially from the forward-looking statements that we make. Should one or more of these risks and uncertainties materialize, or should underlying assumptions, projections or expectations prove incorrect, actual results, performance or financial condition may vary materially and adversely from those anticipated, estimated or expected. Our forward-looking statements do not reflect the potential impact of future acquisitions, mergers, dispositions, joint ventures or investments that we may make. We do not assume any obligation to update any of the forward-looking statements contained herein, whether as a result of new information, future events or otherwise, except as required by law. In the light of these risks and uncertainties, the forward-looking events and circumstances discussed in this report may not occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements.

17
Overview

Our business model is to develop or acquire medical related products, engage third parties to manufacture such products and then distribute the products through various distribution channels, including third parties. We have made ~~significant~~ investments in ~~three~~four different life saving technologies: the CardioMap® heart monitoring and screening device; the Save a Life choking rescue device; ~~and~~ a unique neurosteroid drug compound intended to treat rare brain ~~disorders.~~disorders; and a drug compound intended to tread mild traumatic brain disorder (concussion).

We intend to acquire other technologies and assets and plan to be a trans-disciplinary product development company involved in the discovery, development and commercialization of products and technologies that may be applied over various medical markets. We intend to license, improve and develop our products and identify and select distribution channels. We intend to establish agreements with distributors to get products to market quickly, as well as to undertake and engage in our own direct marketing efforts. We will determine the most effective method of distribution for each unique product that we include in our portfolio. We intend to engage third-party research and development firms who specialize in the creation of our products to assist us in the development of our own products We intend to apply for trademarks and patents once we have developed proprietary products.

We are not currently selling or marketing any products. Our products are in ~~late-stage~~various stages of development and Food and Drug Administration ("FDA") clearance or approval to market our products will be required in order to sell them in the United States.

Recent Funding

Private Placements
In February 2021, we sold a total of 960,834 shares of our common stock to 11 accredited investors for total proceeds of $689,500. Warrants for 960,834 shares our common stock were issued to the investors with an average exercise price of $1.23. The warrants expire six months from the date of closing and have a fair value of $426,273.
In March 2021, we sold 525,000 Units at $1.00 per unit to 17 accredited investors for total proceeds of $525,000. Each Unit consisted of one share of our common stock and a right to purchase one share of our common stock $2.00. These rights expire one year from the date of closing and have a fair value of $250,950.
In June 2021, we sold 500,000 shares of our common stock at $0.59 per share along with a five-year share purchase warrant exercisable for 500,000 shares of our common stock at a price of $1.00 per share for total an aggregate purchase price of $295,000 to an accredited investor which also provided certain consulting services to the Company. The purchase price was paid with $250,000 cash and the satisfaction of $45,000 of amounts due to the investor for its consulting services.
LGH
On December 11, 2020, we entered into a Securities Purchase Agreement (“2020 LGH Agreement”) with LGH Investments, LLC (“LGH”), pursuant to which we entered into a $165,000 face value convertible promissory note which bore interest at a one-time rate of 8.0% applied to the face value and was due September 11, 2021 (the “2020 Note”). We received $150,000 from the issuance of the 2020 Note and incurred a $15,000 original issue discount and $7,500 of closing costs, which were being amortized over the life of the note.
On March 5, 2021, LGH notified us of their intent to convert their $165,000 convertible promissory note plus $13,200 of interest. We negotiated with them to convert $89,100 of the total into 594,000 shares of our common stock and paid the remaining $89,100 in cash.
On April 5, 2021, we entered into a Securities Purchase Agreement (“2021 LGH Agreement”) with LGH pursuant to which we entered into a $1,050,000 face value convertible promissory note which bears interest at a one-time rate of 8.0% applied to the face value and is due February 5, 2022 (the “2021 Note”). We received $1,000,000 net cash from the issuance of the 2021 Note and incurred a $50,000 original issue discount and $30,000 closing costs, which are being amortized over the life of the 2021 Note. See Note 5 of Notes to Financial Statements for additional information.
The value of the 1,134,000 warrants was $877,716, of which $423,003 was allocated as debt discount and the value of the 100,000 shares of common stock was $85,000 of which $40,965 was allocated as the fair value of the common shares, for a total value of $463,968 which is being amortized over the life of the Note.
18
Labrys and Lincoln Park
In August 2020, we entered into two funding ~~arrangements.~~arrangements as follows:

One with Labrys Fund, LP, which provided us with $315,000 of cash in exchange for a $350,000 promissory note and 420,000 shares of our common stock. See Note 4.5 of Notes to Financial Statements for additional information.
14

The second arrangement was with Lincoln Park Capital Fund, LLC (“Lincoln Park” or ”LPC”) pursuant to which Lincoln Park agreed to purchase up to $10,250,000 worth of our common stock over a 36-month period in exchange for 793,802 shares of our common stock with a value of $369,118. Lincoln Park made an initial purchase of 602,422 shares of our common stock for ~~$250,000.~~$250,000, and additional purchases through June 21, 2021 for a total of 2,153,326 shares for $1,471,475. See Note 7.8 of Notes to Financial Statements for additional information.

On December 4, 2020, our registration statement on Form S-1 ~~that was filed on November 23, 2020,~~for the registration of shares to be sold to Lincoln Park was declared effective by the Securities and Exchange Commission. The final prospectus was filed on December 8, 2020. The registration statement contains one prospectus which is incorporated by reference into this filing and is available in electronic form through the Securities and Exchange Commission EDGAR system. We have not sold any shares under the prospectus.
We intend to use the proceeds from ~~both~~all of the ~~Labrys and Lincoln Park~~ agreements for general corporate purposes, including for working capital, capital expenditures and for funding additional preclinical development and potentially future clinical development of our pipeline candidates.
Asset Purchase Agreement
On January 7, 2021, we entered into an Asset Purchase Agreement (the “APA”) with Prevacus, Inc. (“Prevacus”), pursuant to which we will purchase the assets and all of the rights, interests and intellectual property in a certain drug program (PRV-002) for treating mild brain trauma (concussion) and the delivery device (the “Asset”) in exchange for (i) 7,000,000 shares of our common stock plus (ii) the Milestone Consideration, if any.
On March 1, 2021, our APA with Prevacus closed and we issued 6,000,000 shares of our common stock valued at the fair market value of $1.18 per share for the stock granted on the date of acquisition for $7,080,000. In addition, 1,000,000 shares of our common stock valued at $1.18 per share for $1,180,000 was recorded as a component of Additional Paid in Capital for the probability of earning the Milestone Consideration of first dosing in a Phase I Clinical Trial. In addition, we withheld 1,000,000 shares of our common stock valued at $1.18 per share, for $1,180,000, in exchange for our payment of certain liabilities of Prevacus. We determined that in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 730 Research and Development (ASC 730-10-25-2(c)) and pursuant to ASC 730-10-25-2(c), intangibles purchased from others for use in particular research and development projects and that have no alternative future use in research and development or otherwise, represent costs of research and development as acquired, and therefore are expensed when incurred. On March 1, 2021, the date of acquisition, we expensed $9,440,000 as In-process research and development. At April 30, 2021, our Asset purchase liability account balance was $1,125,026. The net change in the Asset purchase liability account will be released as shares at $1.18 per share once all liabilities have been paid.
19

Going Concern

Substantial doubt exists as to our ability to continue as a going concern based on the facts that we may not have adequate working capital to finance our day-to-day operations and we do not have any sources of revenue. We had an accumulated deficit of ~~$29,562,242~~$42,833,232 as of ~~October 31, 2020~~April 30, 2021 and cash of ~~$292,756.~~$1,378,225. Management’s plans include engaging in further research and development and raising additional capital in the short term to fund such activities through sales of its common stock. Our continued existence depends on the success of our efforts to raise additional capital necessary to meet our obligations as they come due and to obtain sufficient capital to execute our business plan.

We may obtain capital primarily through issuances of debt or equity or entering into collaborative arrangements with corporate partners. There can be no assurance that we will be successful in completing additional financing or collaboration transactions or, if financing is available, that it can be obtained on commercially reasonable terms. If we are not able to obtain additional financing on a timely basis, we may be required to further scale down or cease the operation of our business. The issuance of additional equity securities by us could result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments. Our financial statements do not include adjustments that might result from the outcome of this uncertainty.

For the foreseeable future, we expect to experience continuing operating losses and negative cash flows from operations as our management executes our current business plan. The cash of ~~$292,756~~$1,378,225 available at ~~October 31, 2020,~~April 30, 2021, may not provide enough working capital to meet our current operating expenses through ~~December 10, 2021.~~June 21, 2022.

If we are unable to raise additional capital by ~~December 10, 2021,~~June 21, 2022, we will adjust our current business plan. Due to the unknown and volatile nature of the stock price and trading volume of our common stock, is it is difficult to predict the timing and amount of availability pursuant to our equity line of credit with LPC (see Note 7.8 of Notes to Financial Statements). Given our recurring losses, negative cash flow, accumulated deficit, and the impact of COVID-19, there is substantial doubt about our ability to continue as a going concern.

Impact of COVID-19

The COVID-19 global pandemic has had an unfavorable impact on our business operations. Mandatory closures of businesses imposed by the federal, state and local governments to control the spread of the virus are disrupting the operations of our management, business and finance teams. In addition, the COVID-19 outbreak has adversely affected the U.S. and global economies and financial markets, which may result in a long-term economic downturn that could negatively affect future performance and our ability to secure additional debt or equity funding.

Significant Accounting Policies and Use of Estimates

During the ~~three~~nine months ended ~~October 31, 2020,~~April 30, 2021, there were no significant changes to our significant accounting policies and estimates are described in Note 2. Summary of Significant Accounting Policies included in Part II, Item 8. of our Annual Report on Form 10-K for the year ended July 31, 2020, which was filed with the Securities and Exchange Commission on November 16, 2020.


1520

Results of Operations

We do not currently sell or market any products and we did not have any revenue in the ~~three-month~~three or nine-month periods ended ~~October 31, 2020~~April 30, 2021 or ~~2019.~~2020. We will commence actively marketing products after the products and drugs in development have been FDA cleared or approved, but there can be no assurance, however, that we will be successful in obtaining FDA clearance or approval for our products.

Three Months Ended October 31, $ % Three Months Ended April 30, $ % Nine Months Ended April 30, $ %
2020 2019 Change Change 2021 2020 Change Change 2021 2020 Change Change
General and administrative expense $ 525,269 $ 1,322,721 797,452 (60% ) $ 2,654,320 867,665 $ 1,786,655 206% 3,813,380 2,690,140 $ 1,123,240 42%
In-process research and development 9,440,000 – 9,440,000 100% 9,440,000 – 9,440,000 100%
Net operating Loss 12,094,320 867,665 11,226,655 1294% 13,253,380 2,690,140 10,563,240 393%
Loss from operations (525,269 ) (1,322,721 ) (797,452 ) (60% ) (12,094,320 ) (867,665 ) (11,226,655 ) 1294% (13,253,380 ) (2,690,140 ) (10,563,240 ) 393%
Interest expense 186,245 93,891 92,354 98% 357,370 131,610 225,670 172% 779,124 326,692 452,432 138%
Other income (50,000 ) – (50,000 ) 100% (50,000 ) – (50,000 ) 100%
Net loss $ (711,514 ) $ (1,416,612 ) (705,098 ) (50% ) (12,401,690 ) (999,275 ) (11,402,415 ) 1141% (13,982,504 ) (3,016,832 ) (10,965,672 ) 363%
Basic and diluted net loss per share $ (0.01 ) $ (0.02 ) (0.01 ) (50% ) (0.13 ) (0.01 ) (0.12 ) 1200% (0.15 ) 0.03 (0.12 ) 400%

General and Administrative Expense

Our General and administrative expense includes salaries and related benefits for employees in finance, accounting, sales, administrative and research and development activities, as well as stock-based compensation, costs related to maintaining compliance as a public company and legal and professional fees.

The ~~decrease~~changes in General and administrative expense ~~was~~in the three and nine months ended April 30, 2021 as compared to the same periods of 2020 were due to ~~a $918,032~~the following:
Three months ended April 30, 2021 compared to three months ended April 30, 2020 Nine months ended April 30, 2021 compared to nine months ended April 30, 2020
Increase (decrease) in:
Board and stock expense $ 677,428 $ (310,750 )
Business development and investor relations 540,706 605,636
Consulting fees (430,317 ) (577,311 )
Financing fees 94,912 161,718
Insurance expense 27,022 56,863
Legal and professional fees 62,998 327,303
Research and development 565,764 598,383
Wages 210,340 228,597
Other 37,802 32,801
$ 1,786,655 $ 1,123,240
21
Board Stock expense increased in the three months ended April 30, 2021 compared to April 30, 2020, due to the granting of RSUs to our officers, our Science and Sports Advisory Boards, as well as options granted in connection with the Prevacus APA that closed on March 1, 2021. The decrease in board ~~and~~ stock expense for the nine months ended April 30, 2021 compared to April 30, 2021, was due to the vesting of ~~restricted stock units~~Board RSU’s in the ~~2019 period~~first quarter 2021. Business development and investor relations increase in the three and nine months ended April 30, 2021 compared to April 30, 2020 as a ~~$10,000 decrease~~result of the issuance of common stock and fees for services rendered. Consulting fees decreased for the three and nine months ended April 30, 2021 primarily due to grants of RSU’s and stock issued to consultants in the three and nine months ended April 30, 2020 not incurred in the three and nine months ended April 30, 2021. Financing fees increased for the three and nine months ended April 30, 2021 due to expenses related to the debt and equity financings during the periods. Research and development increased in the three and nine months ended April 30,2021, primarily due to research and development of the PRV-002 and Save a Life projects. Wages increased for the three and nine months ended April 30, 2021 due to the increased headcount in fiscal 2021.
In-process Research and Development
In-process research and development in the three and nine month periods ended April 30, 2021 included $9,440,000 of in-process research and development expense ~~offset by a $240,000 increase~~ in ~~financing expense and a $93,061 increase in legal and professional fees related~~connection with the Prevacus APA that closed on March 1, 2021. See Note 3 to ~~our agreements with Labrys and Lincoln Park, and a $20,393 increase in payroll expense.~~Notes to Financial Statements for additional information.
Interest Expense

Interest expense includes interest on debt outstanding, as well as the amortization of unamortized debt issuance costs and debt closing costs. Certain information regarding debt outstanding was as follows:

Three Months Ended October 31, Three Months Ended April 30, Nine Months Ended April 30,
2020 2019 2021 2020 2021 2020
Weighted average debt outstanding $ 656,957 $ 334,783 $ 573,977 $ 440,638 $ 532,667 $ 352,030
Weighted average interest rate 9.5% 7.0% 8.90% 7.00% 8.90% 7.00%

The ~~increase~~increases in interest expense for the ~~three-month period~~three and nine months ended ~~October 31, 2020~~April 30, 2021, compared to the same ~~period~~periods of ~~2019 was~~2020 were due to the increased average debt outstanding and higher average interest rates due to the issuance of debt to Labrys in August 2020 and to LGH in December 2020 and April 2021, as discussed above, as well as ~~an $82,846~~a $330,103 and a $718,989 increase, respectively, in amortization of debt discount, ~~and closing costs and an $18,204 increase in amortization of~~ beneficial conversion feature ~~offset in part by the conversion of a $100,000 note payable also in August 2020.~~and closing costs.

Net Loss

Net loss ~~decreased~~increased in the ~~three-month period~~three and nine months ended ~~October 31, 2020~~April 30, 2021 compared to the same period of ~~2019~~the prior year was due to ~~the decrease in~~increased General and administrative expense ~~partially offset by the increase in Interest~~and interest expense as discussed ~~above.~~above, primarily due to the $9,440,000 in-process research and development expense incurred with the Prevacus agreement.


1622

Liquidity and Capital Resources

The following table sets forth the primary sources and uses of cash:

Three Months Ended October 31, Nine Months Ended April 30,
2020 2019 2021 2020
Net cash used in operating activities $ (303,496 ) $ (214,775 ) $ (2,461,232 ) $ (340,453 )
Net cash provided by financing activities 533,300 150,000 3,776,505 200,000

To date, we have financed our operations primarily through debt financing and limited sales of our common stock. Our ability to continue to access capital could be affected adversely by various factors, including general market and other economic conditions, interest rates, the perception of our potential future earnings and cash distributions, any unwillingness on the part of lenders to make loans to us and any deterioration in the financial position of lenders that might make them unable to meet their obligations to us. If these conditions continue and we cannot raise funds through a public or private debt financing, or an equity offering, our ability to grow our business may be negatively affected. In such case, we may need to suspend the creation of new products until market conditions improve.

Convertible Notes
At ~~October 31, 2020,~~April 30, 2021, we had 10four convertible notes outstanding with ~~a total~~an aggregate principal balance of ~~$345,000,~~$95,000, unamortized debt discount of ~~$145,437~~$2,696 and accrued interest of ~~$13,969.~~$6,462. The notes bear interest at 7.0% annually and ~~the entire outstanding principal, together with accrued interest~~ are due ~~between February 19, 2021 and~~in May 8, 2021, unless converted before such date. At the option of the holder, the principal amount of the notes and any accrued interest may be converted into shares of our common stock at a conversion price of $1.00 per share, or at a 10% discount to the closing price on the day of conversion, but not lower than $0.80 per share. At maturity, we have the right to either pay off the notes and any accrued interest or convert the notes and any accrued interest into shares of our common stock.

In May 2021, upon maturity, we converted the four convertible promissory notes with an aggregate face value of $95,000 and aggregate accrued interest of $6,650 into 127,063 shares of our common stock as calculated by the conversion price of the convertible promissory notes of $0.80 per share.
Conversion of Convertible ~~Note~~Notes Payable
On August 14, 2020, we ~~provided notice to~~converted a ~~noteholder that we elected to convert their Convertible Promissory Note at the conversion price~~convertible promissory note with a face value of ~~$0.50 per share as determined in accordance with the terms~~$100,000 and accrued interest of ~~the related agreement. Accordingly, the number of~~$7,000 into 214,000 shares of our common stock ~~was determined~~as calculated by ~~dividing (i) the sum of the outstanding principal and accrued interest on the Note of $100,000 and $7,000, respectively, by (ii)~~ the conversion price of the convertible promissory note of $0.50 per ~~share, resulting in~~share.
In February, March and April 2021, upon maturity, we converted five convertible promissory notes with an aggregate face value of $230,000 and aggregate accrued interest of $16,100 into 298,165 shares of our common stock as calculated by the conversion price of the convertible promissory notes with a weighted average conversion rate of $0.83 per share.
23
LGH Promissory Notes
December 2020 Promissory Note
On December 11, 2020, we entered into a Securities Purchase Agreement with LGH Investments, LLC, pursuant to which we entered into a $165,000 face value convertible promissory note which bore interest at a one-time rate of 8.0% applied to the face value and was due September 11, 2021 (. We received $142,500 net cash from the issuance of ~~214,000~~the 2020 Note and incurred a $15,000 original issue discount and $7,500 closing costs, which were being amortized over the life of the 2020 Note. The 2020 Note was convertible at a price of $0.15 per share.
The 2020 LGH Agreement included the issuance of a five-year share purchase warrant exercisable for 470,000 shares of our common stock at a price of $0.35 per share and 200,000 shares of our common stock.
The value of the 470,000 warrants was $82,720 and the value of the 200,000 shares of common stock was $40,000 for a total value of $112,720, which were being amortized over the life of the 2020 Note as closing costs. Additionally, 100,000 shares valued at $44,000 were expensed as financing costs when incurred.
The conversion feature met the criteria for characterization as a beneficial conversion feature and, accordingly, we allocated $19,780 of the proceeds to the beneficial conversion feature, which was also being amortized over the life of the 2020 Note.
On March 5, 2021, LGH notified us of their intent to convert their $165,000 convertible promissory note plus $13,200 of interest. We negotiated with them to convert $89,100 of the total into 594,000 shares of our common stock and paid the remaining $89,100 in cash.
April 2021 Promissory Note
On April 5, 2021, we entered into a 2021 LGH Agreement with LGH pursuant to which we entered into a $1,050,000 face value convertible promissory note which bears interest at a one-time rate of 8.0% applied to the face value and is due February 5, 2022. We received $1,000,000 net cash from the issuance of the 2021 Note and incurred a $50,000 original issue discount and $30,000 closing costs, which are being amortized over the life of the 2021 Note.
The 2021 Note is convertible at a price of $1.00 per share. If an Event of Default occurs as defined in the 2021 Note, the Outstanding Balance shall immediately increase to one hundred twenty percent (120%) of the Outstanding Balance immediately prior to the occurrence of the Event of Default and the conversion price will be $1.00 per share.
The 2021 LGH Agreement included the issuance of a five-year share purchase warrant exercisable for 1,134,000 shares of our common stock at a price of $0.95 per share and 100,000 shares of our common stock.
The value of the 1,134,000 warrants was $877,716, of which $423,003 was allocated as debt discount and the value of the 100,000 shares of common stock was $85,000 of which $40,965 was allocated as the fair value of the common shares, for a total value of $463,968 which is being amortized over the life of the Note.
24

Labrys Note Payable
On August 14, 2020, we entered into a Securities Purchase Agreement (the “Labrys SPA”) with Labrys Fund, LP (“Labrys”), pursuant to which Labrys purchased a $350,000 (the “Principal Amount”) Self-Amortization Promissory Note (the “Note”) for $315,000 in cash with an original issuance discount of approximately 10%. In consideration for entering into the Labrys SPA, we issued 420,000 shares (the “Commitment Shares”) of our common stock. 350,000 of the Commitment Shares (the “Second Commitment Shares”) will be returned to us if the Note is fully repaid and satisfied on or prior to August 14, ~~2021 (the “Maturity Date”).~~2021. The Note bears interest at 12% per year.

~~Upon the occurrence~~See Note 5. of ~~any “Event of Default” as defined in the Note, the Note is convertible into shares of our common stock at a price per share equal~~Notes to ~~the closing bid price of the common stock on the trading day immediately preceding the date of conversion (the “Conversion Price”);~~ ~~provided, however~~, that Labrys may not convert any portion of the Note which would cause Labrys, collectively with its affiliates, to hold more than 4.99% of our issued and outstanding common stock, unless such limit is waived. Labrys may not execute any short sales on any of our common stock at any time while the Note is outstanding.Financial Statements for additional information.

~~The~~Settlement of Convertible Promissory Note requires that we reserve from our authorized and unissued common stock a number of shares equal to the greater of: (a) 1,140,000 shares or (b) the sum of (i) the number of shares of common stock issuable upon conversion of or otherwise pursuant to the Note and such additional shares of common stock, if any, as are issuable on account of interest on the Note pursuant to the Labrys SPA issuable upon the full conversion of the Note (assuming no payment of the principal amount or interest) as of any issue date ~~multiplied by~~ ~~(ii) one and a half. We are subject to penalties for failure to timely deliver shares to Labrys following a conversion request.~~
17
The Labrys SPA and the Note contain covenants and restrictions common with this type of debt transaction. Furthermore, we are subject to certain negative covenants under the Labrys SPA and the Note, which we believe are customary for transactions of this type. At October 31, 2020, we were in compliance with all covenants and restrictions.
In ~~connection~~February 2021, we settled a convertible promissory note with ~~the Labrys transaction, we engaged Alliance Group Partners, LLP (“A.G.P.”) as~~ a ~~placement agent. In exchange for their services, we paid A.G.P. $25,200 in~~face value of $20,000 and accrued interest of $1,400 with cash ~~and we also paid $6,500 in cash for Labrys’ legal fees in connection with the transaction.~~totaling $21,400.

PPP Note
On ~~May 8, 2020,~~February 11, 2021, we received ~~loan proceeds in~~notice that the ~~amount of $50,000 under the~~SBA Paycheck Protection Program ~~(“PPP”).~~loan for $50,000 was forgiven. The ~~PPP, established~~$50,000 gain is reflected as ~~part~~Other income on our Statements of the Coronavirus Aid, Relief and Economic Security Act, provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The loans and accrued interest are forgivable after eight weeks as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The unforgiven portion of the PPP loan, if any, is payable over two years at an interest rate of 1%, with a deferral of paymentsOperations for the ~~first six months. We used the proceeds for purposes consistent with the PPP~~three and ~~anticipate that this PPP Note will be forgiven.~~nine months ended April 30, 2021.

Stock ~~Sale~~Sales to Lincoln Park
On August 14, 2020, we entered into a Purchase Agreement ~~(the “LPC Purchase Agreement”)~~ and a Registration Rights Agreement ~~(the “RRA”)~~ with Lincoln Park Capital Fund, ~~LLC (“LPC”). Upon the satisfaction of the conditions~~LLC. Pursuant to ~~our right to commence sales under~~ the LPC Purchase Agreement, including the registration of shares of Common Stock issuable under the LPC Purchase Agreement in accordance with the RRA (the “Commencement”) and the date of satisfaction of such conditions the “Commencement Date”), we have the right, in our sole discretion, to sell to LPC up to $10,250,000 in shares of our common stock, from time to time over a 36-month period. In consideration for entering into the LPC Purchase Agreement, we issued 793,802 shares to LPC.

On December 4, 2020, our registration statement on Form S-1 that was filed on November 23, 2020, was declared effective by the Securities and Exchange Commission. The final prospectus was filed on December 8, 2020. The registration statement contains one prospectus which is incorporated by reference into this filing and is available in electronic form through the Securities and Exchange Commission EDGAR system. We have not sold any shares under the prospectus.
Upon entering into the LPC Purchase Agreement, ~~and RRA,~~ we sold 602,422 shares of our common stock to LPC in an initial purchase for a total purchase price of $250,000. ~~Thereafter, and subject~~From January 1, 2021 to ~~the conditions of the LPC Purchase Agreement and RRA, on any business day and subject to certain customary conditions,~~June 21, 2021, we may direct LPC to purchase to up to 200,000 shares of our common stock (such purchases, “Regular Purchases”). The amount of a Regular Purchase may increase up to 100,000 shares of common stock under certain circumstances based on the market price of the common stock. There are no limits on the price per share that LPC may pay to purchase common stock under the LPC Purchase Agreement, provided that LPC’s committed obligation under any Regular Purchase shall not exceed $50,000 unless the median aggregate dollar value of the volume of shares of common stock during the 20 consecutive trading day period ending on the date of the applicable Regular Purchase equals or exceeds $100,000, in which case LPC’s committed obligation under such single Regular Purchase shall not exceed $500,000.
~~In addition, if we have directed LPC to purchase the full amount of common stock available as a Regular Purchase on a given day, we may direct LPC to purchase~~sold an additional amounts as “accelerated purchases” and “additional accelerated purchases” as set forth in the LPC Purchase Agreement. The purchase price of shares of our common stock will be based on the then prevailing market prices of such shares at the time of sale. The LPC Purchase Agreement limits our sale of1,550,904 shares of our common stock to LPC and LPC’s purchase or acquisition of our common stock, to an amount of common stock that, when aggregated with all other shares of our common stock then beneficially owned by LPC would result in LPC having beneficial ownership, at any single point in time, of more than 4.99% of the thenfor total ~~outstanding shares of our common stock.~~proceeds $1,221,475.

~~The LPC Purchase Agreement contains customary representations, warranties, covenants, closing conditions and indemnification and termination provisions. LPC has covenanted not~~As of June 21, 2021, there was $8,778,525 remaining purchase availability. We paid A.G.P. $97,718 related to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of the Company’s common stock. The LPC Purchase Agreement does not limit the Company’s ability to raise capital from other sources at its sole discretion; provided, however, that we shall not enter into any “Variable Rate Transaction” as defined in the LPC Purchase Agreement, including the issuance of any floating conversion rate or variable priced equity-like securities, but excluding any “At-the-Market” offering with a registered broker-dealer, until the later of (i) the 36-month anniversary of the date of the LPC Purchase Agreement, and (ii) the 36-month anniversary of the Commencement Date (if the Commencement has occurred), in either case irrespective of any earlier termination of the LPC Purchase Agreement. The LPC Purchase Agreement may be terminated by us at any time at our discretion without any cost to us.these purchases.

See Notes 8 of Notes to Financial Statements for additional information.

18
In connection with the LPC transaction, we engaged A.G.P. as a placement agent to help raise capital. A.G.P. introduced us to LPC, for which we agreed to pay A.G.P. a fee of 8% of the amount of the funds received from LPC, which totaled $20,000 in the quarter ended October 31, 2020. A.G.P. will also receive a fee totaling 8% of any additional funds raised pursuant to the LPC Purchase Agreement.
In addition, and in consideration for the services provided related to both Labrys and LPC, we granted warrants that were immediately exercisable for a total of 550,000 shares of our common stock at $0.50 per share to A.G.P. and two partners of A.G.P. The warrants had a value of $220,000 and expire August 6, 2024. Of the $220,000, $91,667 was netted against the LPC equity transaction and $128,333 was recorded as debt closing costs related to the Labrys transaction and is being amortized over the one-year life of the note.
Inflation

Inflation did not have a material impact on our business and results of operations during the periods being reported on.

Off Balance Sheet Arrangements

We do not have any ~~material~~ off balance sheet arrangements.

25
Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are a smaller reporting company and are not required to provide information under this item.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Management, with the participation of the Company’s Chief Executive Officer and Chief Accounting Officer, evaluated the effectiveness of our disclosure controls and procedures as of ~~July 31, 2020.~~April 30, 2021. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives. Based on the evaluation of our disclosure controls and procedures as of ~~October 31, 2020,~~April 30, 2021, our Chief Executive Officer and Chief Accounting Officer concluded that, as of such date, as a result of the material weaknesses in internal control over financial reporting that are described below in ~~Management's~~Management’s Report on Internal Control Over Financial Reporting, our disclosure controls and procedures were not effective.

As previously reported in our Annual Report on Form 10-K for the fiscal year ended July 31, 2020 management identified the following material weaknesses in internal control over financial reporting:

Insufficient Resources: We have an inadequate number of personnel with requisite expertise in the key functional areas of finance and accounting.

Inadequate Segregation of Duties: We have an inadequate number of personnel to properly implement segregation of duties control procedures.

We are committed to improving our internal control over financial reporting and (1) will continue to use third-party specialists to address shortfalls in staffing and to assist us with accounting and finance responsibilities; (2) will increase the frequency of independent reconciliations of significant accounts, which will mitigate the lack of segregation of duties until there are sufficient personnel; and (3) may consider appointing additional outside directors and audit committee members in the future.

19
In light of the material weakness described above, prior to the filing of this Form 10-Q for the period ended ~~October 31, 2020,~~April 30, 2021, management determined that key quarterly controls were performed timely and also performed additional procedures, including validating the completeness and accuracy of the underlying data used to support the amounts reported in the quarterly financial statements. These control activities and additional procedures have allowed us to conclude that, notwithstanding the material weaknesses, the financial statements in this Form 10-Q fairly present, in all material respects, our financial position, results of operations, and cash flows for the periods presented in conformity with United States GAAP.

Changes in Internal Control Over Financial Reporting
There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the period covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.



2026

PART II - OTHER INFORMATION

~~Item 1A.~~ ~~Risk Factors~~
Item 1A. Risk Factors

There have been no material changes during the ~~three-month period~~nine months ended ~~October 31, 2020~~April 30, 2021 to the risk factors discussed in our Annual Report on Form 10-K for the year ended July 31, 2020. If any of the identified risks actually occur, our business, financial condition and results of operations could suffer. The trading price of our common stock could decline and you may lose all or part of your investment in our common stock. The risks and uncertainties described in our Annual Report on Form 10-K for the year ended July 31, 2020 are not the only ones we face. Additional risks that we currently do not know about or that we currently believe to be immaterial may also impair our business operations.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
In February 2021, we sold a total of 960,834 shares of our common stock to 11 accredited investors for total proceeds of $689,500. Warrants for 960,834 shares our common stock were issued to the investors with an average exercise price of $1.23. The warrants expire six months from the date of closing and have a fair value of $426,273.
In March 2021, we sold 525,000 Units at $1.00 per unit to 17 accredited investors for total proceeds of $525,000. Each Unit consisted of one share of our common stock and a right to purchase one share of our common stock $2.00. These rights expire one year from the date of closing and have a fair value of $250,950.
In February, March and April 2021, upon maturity, we converted convertible promissory notes with a face value of $230,000 and accrued interest of $16,100 into 298,165 shares of our common stock as calculated by the conversion price of the convertible promissory notes of $0.83 per share.
In issuing these shares, we relied on an exemption from the registration requirements of the Securities Act of 1933 provided by Section 4(a)(2) of the Securities Act of 1933.
Item 6. Exhibits

The following exhibits are filed herewith and this list constitutes the exhibit index.

Exhibit Number Exhibit Description
3110.1 ~~Rule 13(a)-14(a)/15(d)-14(a)~~ Prevacus Asset Agreement. Incorporated by reference to Form 8-K filed with the SEC on March 2, 2021
10.2 Securities Purchase Agreement with LGH Investments, LLC. Incorporated by reference to Form 8-K filed with the SEC on April 7, 2021
10.3 LGH Investments, LLC Settlement Agreement
31.1 Certification of Chief Executive Officer ~~and~~pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934
31.2 Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934
3232.1 ~~Section 1350~~ Certification of Chief Executive Officer ~~and~~pursuant to Section 1350
32.2 Certification of Chief Financial Officer pursuant to Section 1350
101.INS XBRL Instances Document
101.SCH XBRL Taxonomy Extension Schema Document
101.CAL XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF XBRL Taxonomy Extension Definition Linkbase Document
101.LAB XBRL Taxonomy Extension Label Linkbase Document
101.PRE XBRL Taxonomy Extension Presentation Linkbase Document

* Management or compensatory agreement.

2127

~~SIGNATURE~~SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized, as of ~~December 10, 2020.~~June 21, 2021.

ODYSSEY GROUP INTERNATIONAL, INC.

By:    /s/ Joseph Michael Redmond
Joseph Michael Redmond
Chief Executive Officer, ~~Chief Financial Officer,~~ President and Director
(Principal Executive Officer)
By:    /s/ Christine M. Farrell
Christine M. Farrell
Chief Financial Officer ~~and~~
(Principal Financial and Accounting Officer)

2228

	October 31,			July 31,
	2020			2020

Assets
Current assets:
Cash	$	292,756		$	62,952
Prepaid expenses		102,500			36,667
Total current assets		395,256			99,619

Property and equipment, net of accumulated depreciation of $2,483 and $2,345		827			965
Intangible assets, net of accumulated amortization of $47,500 and $45,000		2,500			5,000
Total assets	$	398,583		$	105,584

Liabilities and Stockholders' Deficit
Current liabilities:
Accounts payable	$	424,040		$	269,388
Accrued wages		211,736			211,702
Accrued interest		22,810			14,743
Notes payable, net of unamortized debt discount of $455,024 and $233,770		239,976			211,230
Total current liabilities		898,562			707,063

Long-term debt		50,000			50,000
Total liabilities		948,562			757,063

Shareholders' equity (deficit):
Preferred stock, $0.001 par value, 100,000,000 shares authorized, no shares issued or outstanding		–			–
Common stock, $0.001 par value, 500,000,000 shares authorized, 90,570,202 and 88,559,978 shares issued and outstanding		90,570			88,560
Additional paid-in-capital		28,921,693			28,110,689
Accumulated deficit		(29,562,242	)		(28,850,728	)
Total stockholders' deficit		(549,979	)		(651,479	)
Total liabilities and stockholders' deficit	$	398,583		$	105,584

	April 30,			July 31,
	2021			2020

Assets
Current assets:
Cash	$	1,378,225		$	62,952
Prepaid expenses		75,000			36,667
Total current assets		1,453,225			99,619

Property and equipment, net of accumulated depreciation of $2,758 and $2,345		552			965
Intangible assets, net of accumulated amortization of $50,000 and $45,000		–			5,000
Total assets	$	1,453,777		$	105,584

Liabilities and Stockholders' Deficit
Current liabilities:
Accounts payable	$	338,845		$	269,388
Accrued wages		246,872			211,702
Accrued interest		14,098			14,742
Asset purchase liability		1,125,026			–
Notes payable, net of unamortized beneficial conversion feature, debt discount and closing costs of $616,183 and $233,770		675,847			211,231
Total current liabilities		2,400,688			707,063

Long-term debt		–			50,000
Total liabilities		2,400,688			757,063

Shareholders' deficit:
Preferred stock, $0.001 par value, 100,000,000 shares authorized, no shares issued or outstanding		–			–
Common stock, $0.001 par value, 500,000,000 shares authorized, 101,539,105 and 88,559,978 shares issued and outstanding		101,539			88,560
Additional paid-in-capital		41,784,782			28,110,689
Accumulated deficit		(42,833,232	)		(28,850,728	)
Total stockholders' deficit		(946,911	)		(651,479	)
Total liabilities and stockholders' deficit	$	1,453,777		$	105,584

	For the Three Months Ended April 30,						For the Nine Months Ended April 30,
	2021			2020			2021			2020


General and administrative expense	$	2,654,320		$	867,665		$	3,813,380		$	2,690,140
In-process research and development		9,440,000			–			9,440,000			–
Loss from operations		(12,094,320	)		(867,665	)		(13,253,380	)		(2,690,140	)

Interest expense		357,370			131,610			779,124			326,692
Other income		(50,000	)		–			(50,000	)		–
Net loss and comprehensive loss	$	(12,401,690	)	$	(999,275	)	$	(13,982,504	)	$	(3,016,832	)


Basic and diluted net loss per share	$	(0.13	)	$	(0.01	)	$	(0.15	)	$	(0.02	)

Shares used for basic and diluted net loss per share		98,382,540			87,170,622			93,135,527			87,113,296

	Shares			Dollars			Additional Paid-In Capital		Accumulated Deficit			Total Equity (Deficit)
Balances, July 31, 2020		88,559,978		$	88,560		$	28,110,689	$	(28,850,728	)	$	(651,479	)
Conversion of convertible note payable		214,000			214			106,786		–			107,000
Stock-based compensation		–			–			130,301		–			130,301
Common stock issued in debt financing		420,000			420			196,980		–			197,400
Common stock issued in equity financing		1,396,224			1,396			248,604		–			250,000
Stock forfeited		(20,000	)		(20	)		–		–			(20	)
Warrants issued in connection with debt and equity financings		–			–			128,333		–			128,333
Net loss		–			–			–		(711,514	)		(711,514	)
Balances, October 31, 2020		90,570,202			90,570			28,921,693		(29,562,242	)		(549,979	)
Common stock issued for services		540,000			540			69,460		–			70,000
Stock-based compensation		–			–			111,728		–			111,728
Common stock issued to LGH in connection with debt financing		300,000			300			83,700		–			84,000
Common stock issued to LPC in connection with equity financing		200,000			200			34,880		–			35,080
Beneficial conversion feature of LGH financing		–			–			19,780		–			19,780
Warrants issued in connection with debt and equity financings		–			–			82,720		–			82,720
Net loss		–			–			–		(869,300	)		(869,300	)
Balances, January 31, 2021		91,610,202			91,610			29,323,961		(30,431,542	)		(1,015,971	)
Common stock issued for services		100,000			100			123,150		–			123,250
Stock-based compensation								887,437		–			887,437
Common stock issued in asset purchase agreement		6,000,000			6,000			8,254,000		–			8,260,000
Conversion of convertible note debt financing		298,165			298			245,802		–			246,100
Conversion of convertible note debt financing in connection with LGH		594,000			594			88,506					89,100
Common stock issued in equity financing		1,485,834			1,486			1,213,014		–			1,214,500
Common stock issued in connection with LPC share purchase		1,350,904			1,351			1,185,044		–			1,186,395
Common stock issued in connection with LGH financing		100,000			100			40,865		–			40,965
Warrants issued in connection with debt financings								423,003					423,003
Net loss										(12,401,690	)		(12,401,690	)
Balances, April 30, 2021		101,539,105		$	101,539		$	41,784,782	$	(42,833,232	)	$	(946,911	)

	For the Three Months Ended October 31,
	2020			2019


General and administrative expense	$	525,269		$	1,322,721
Loss from operations		(525,269	)		(1,322,721	)

Interest expense		186,245			93,891
Net loss and comprehensive loss	$	(711,514	)	$	(1,416,612	)


Basic and diluted net loss per share	$	(0.01	)	$	(0.02	)

Shares used for basic and diluted net loss per share		90,281,255			86,990,400

	For the Nine Months Ended April 30,
	2021			2020

Cash flows from operating activities:
Net loss	$	(13,982,504	)	$	(3,016,832	)
Adjustments to reconcile net loss to net cash flows used in operating activities:
Depreciation and amortization		5,413			7,915
Stock-based compensation		1,129,446			2,046,895
Stock issued for services		193,250			–
Debt Discount from beneficial conversion feature, warrants closing cost and inducement shares		(125,202	)		–
Amortization of beneficial conversion feature, debt discount and closing costs		718,989			352,384
In-process R& D		8,260,000			–
Financing costs paid with stock		169,000			–
Gain on forgiveness of long-term debt		(50,000	)		–
(Increase) decrease in prepaid expenses		(38,333	)		158,932
Increase (decrease) in accounts payable		69,457			17,173
Increase in accrued wages		35,170			17,399
Increase in accrued interest		29,056			75,681
Decrease in asset purchase liability		1,125,026			–
Net cash used in operating activities		(2,461,232	)		(340,453	)


Cash flows from investing activities:		–			–

Cash flows from financing activities:
Proceeds from notes payable		1,565,000			200,000
Financing closing costs paid with cash		(169,000	)		–
Principal payments made on notes payable		(305,470	)		–
Proceeds from equity financing		2,685,975			–
Net cash provided by financing activities		3,776,505			200,000

Increase (decrease) in cash		1,315,273			(140,453	)

Cash:
Beginning of period		62,952			167,095
End of period	$	1,378,225		$	26,642


Supplemental disclosure of cash flow information
Cash paid for interest	$	30,310		$	–

Supplemental disclosure of non-cash information:
Beneficial conversion feature related to notes payable	$	–		$	335,430
Note receivable related to a note payable		–			100,000
Common stock issued for conversion of notes payable and related accrued interest		442,200			–
Common stock issued for debt financing commitment shares		197,400			–
Warrants issued in connection with financings		634,056			–
Original issue discount on debt		169,200			–
Stock issued in exchange for closing costs		124,965			–
Beneficial conversion feature recognized		19,780			–

							Additional					Total
							Paid-In		Accumulated			Equity
	Shares			Dollars			In Capital		Deficit			(Deficit)
Balances, July 31, 2020		88,559,978		$	88,560		$	28,110,689	$	(28,850,728	)	$	(651,479	)
Note payable converted to common stock		214,000			214			106,786		–			107,000
Stock-based compensation		–			–			130,301		–			130,301
Common stock issued in debt financing		420,000			420			196,980		–			197,400
Common stock issued in equity financing		1,396,224			1,396			248,604		–			250,000
Stock forfeited		(20,000	)		(20	)		–		–			(20	)
Warrants issued in connection with financings		–			–			128,333		–			128,333
Net loss		–			–			–		(711,514	)		(711,514	)
Balances, October 31, 2020		90,570,202		$	90,570		$	28,921,693	$	(29,562,242	)	$	(549,979	)

	(i)	2,000,000 shares of our Common Stock when the United States Patents are revived in our name by the U.S. Patent and Trademark Office and any international patents that have lapsed also revived in our name by the respective country’s patent offices. The value of shares issued shall not exceed $6,000,000 based on the price of our common stock on the date the payment is due;

	(ii)	1,000,000 shares of our common stock upon successful first dosing in a Phase I Clinical Trial for the Asset;

	(iii)	2,000,000 shares of our common stock upon the grant and issuance to us of a Patent for the Asset from the U.S. Patent and Trademark Office, the value of which shall not exceed $10,000,000 based on the price of our common stock on the date the payment is due;

	(iv)	1,000,000 shares of our common stock upon our receipt of net proceeds of at least $1,000,000 in a Non-Dilutive Financing relating directly to the development of the Asset within one year after the Closing Date or, in the event of any Non-Dilutive Financing submitted prior to the one year anniversary of the Closing Date, the milestone will stay effective until the second year anniversary of the Closing Date;

	(v)	2,000,000 shares of our common stock if we sell the Asset to a Third Party resulting in net proceeds to us of at least $50,000,000 after a Phase IB Clinical Trial for which we are the sponsor is complete, but prior to completion of a Phase II Clinical Trial. The value of the 2,000,000 shares related to this milestone shall not exceed $25,000,000 based on the price of our common stock on the date the payment is due;

	(vi)	4,000,000 shares of our common stock upon the successful completion of a Phase II Clinical Trial for the Asset that leads to (I) our sale of the Asset to a Third Party resulting in net proceeds to us of at least $50,000,000; or (II) the administration of the first dose in a Phase III Clinical Trial for the Assetfor which we are, or one of our affiliates or licensees is the sponsor; and

	(vii)	2,000,000 shares of our common stock after the first dosing in a Phase II Clinical Trial and the successful completion of a Phase 1B human clinical trial.

	October 31, 2020		July 31, 2020
Carrying value	$	695,000	$	445,000
Fair value	$	694,987	$	445,000

	April 30, 2021		July 31, 2020
Carrying value	$	1,292,030	$	445,000
Fair value	$	1,233,415	$	445,000

	October 31, 2020		July 31, 2020
Convertible notes with maturities ranging from February 19, 2021 to May 8, 2021 with interest rates of 7% and convertible at $0.80 per share	$	345,000	$	445,000
Note issued to Labrys due August 14, 2021 with an interest rate of 12%		350,000		–
		695,000		445,000
Unamortized debt discount and closing costs		455,024		233,770
	$	239,976	$	211,230

	April 30, 2021			July 31, 2020
Convertible notes with maturities in May 2021 with interest rates of 7% and convertible at $0.80 per share	$	95,000		$	445,000
Note issued to Labrys due August 14, 2021 with an interest rate of 12.0%		147,030			–
Convertible note issued to LGH due February 5, 2022 with an interest rate of 8.0% and convertible at $1.00 per share		1,050,000			–
		1,292,030			445,000
Unamortized debt discount and closing costs		(616,183	)		233,770
	$	675,847		$	211,230

	Number of Options			Weighted Average Exercise Price		Number of Options			Weighted Average Exercise Price
Options outstanding at July 31, 2020		15,000,000		$	0.25		15,050,000		$	0.26
Options canceled		(15,000,000	)		0.25		(15,000,000	)		0.25
Options outstanding at October 31, 2020		–		$	–
Options granted							1,000,000			1.18
Options outstanding at April 30, 2021							1,050,000		$	1.22

RSUs outstanding at July 31, 2020	1,750,000
RSUs issued	4,775,000
RSUs vested	(2,113,598	)
RSUs outstanding at April 30, 2021	4,411,402

	Number of Warrants			Weighted Average Exercise Price
Warrants outstanding at July 31, 2020		44,500		$	1.50
Warrants issued		3,639,834			0.89
Warrants canceled		(36,000	)		1.50
Warrants outstanding at April 30, 2021		3,648,334		$	0.89

	Three Months Ended October 31,				Nine Months Ended April 30,
	2020		2019		2021		2020
Options to purchase common stock		375,000		600,000		900,000		400,000
Shares issuable upon conversion of convertible notes and related accrued interest		448,711		712,063		1,183,691		1,355,278
Warrants to purchase common stock		584,500		35,000		3,648,334		50,000
Restricted stock units		1,350,000		1,500,000		2,113,598		750,000
Total potentially dilutive securities		2,758,211		2,847,063		7,845,623		2,555,278

Purchase Date	Number of Shares Purchased		Average Purchase Price per Share		Total Purchase Price		Remaining Purchase Availability
August 14, 2020		602,422	$	0.410	$	250,000	$	10,000,000
January 2021		200,000		0.175		35,080		9,964,920
February 2021		330,106		0.626		206,798		9,758,122
March 2021		1,020,798		0.960		979,597		8,778,525
		2,153,326			$	1,221,475

Assumed Average Purchase Price Per Share	Number of Shares to be Sold if Full Purchase⁽¹⁾		Percentage of Outstanding Shares Owned After Giving Effect to the Shares Sold⁽²⁾	Proceeds from the Sale of Shares to LPC⁽¹⁾
$0.10		18,668,942	18.4%	$	1,866,984
0.25		18,668,942	18.4		4,667,236
0.30⁽³⁾		18,668,942	18.4		5,600,683
0.50		18,668,942	18.4		9,334,471
1.00		10,000,000	11.3		10,000,000
1.50		6,666,667	8.3		10,000,000

(1)	Although the Purchase Agreement provides that we may sell up to an additional ~~$10,000,000~~$8,778,525 of our common stock to LPC, depending on the assumed average price per share, we may or may not be able to ultimately sell to Lincoln Park a number of shares of our common stock with a total value of ~~$10,000,000.~~$10,000,000 as the maximum number of shares to be sold totals 20,065,166. Following purchases and issuances made to date, 17,118,038 shares remained as of April 30, 2021.
(2)	The numerator is based on the maximum number of shares purchased at the corresponding assumed purchase price plus the ~~1,396,224~~2,153,326 shares ~~already~~ owned by ~~LPC.~~LPC at April 30, 2021. The denominator is based on ~~90,570,202~~96,391,168 shares outstanding as of ~~October 31, 2020~~April 30, 2021 plus the number of shares assumed purchased. The table does not give effect to the prohibition contained in the LPC Purchase Agreement that prevents us from selling to LPC the number of shares such that, after giving effect to such sale, LPC and its affiliates would beneficially own more than 4.99% of the then outstanding shares of our common stock. Assuming the closing stock price of $0.30 per share on October 31, 2020 and the 4.99% limitation mentioned above, the total number of additional shares we could sell to LPC would be 1,891,039 for proceeds of $567,312.
(3)	The closing price of our common stock on ~~October 31, 2020.~~April 30, 2021.

Balance at July 31, 2020	$	183,846	$	183,846
Salary accrued		–		–
Salary paid		–		–
Balance at October 31, 2020	$	183,846
Balance at April 30, 2021			$	183,846

	Three Months Ended October 31,						$			%			Three Months Ended April 30,						$			%		Nine Months Ended April 30,						$			%
	2020			2019			Change			Change			2021			2020			Change			Change		2021			2020			Change			Change
General and administrative expense	$	525,269		$	1,322,721			797,452			(60%	)	$	2,654,320			867,665		$	1,786,655			206%		3,813,380			2,690,140		$	1,123,240			42%
In-process research and development														9,440,000			–			9,440,000			100%		9,440,000			–			9,440,000			100%
Net operating Loss														12,094,320			867,665			11,226,655			1294%		13,253,380			2,690,140			10,563,240			393%
Loss from operations		(525,269	)		(1,322,721	)		(797,452	)		(60%	)		(12,094,320	)		(867,665	)		(11,226,655	)		1294%		(13,253,380	)		(2,690,140	)		(10,563,240	)		393%
Interest expense		186,245			93,891			92,354			98%			357,370			131,610			225,670			172%		779,124			326,692			452,432			138%
Other income														(50,000	)		–			(50,000	)		100%		(50,000	)		–			(50,000	)		100%
Net loss	$	(711,514	)	$	(1,416,612	)		(705,098	)		(50%	)		(12,401,690	)		(999,275	)		(11,402,415	)		1141%		(13,982,504	)		(3,016,832	)		(10,965,672	)		363%
Basic and diluted net loss per share	$	(0.01	)	$	(0.02	)		(0.01	)		(50%	)		(0.13	)		(0.01	)		(0.12	)		1200%		(0.15	)		0.03			(0.12	)		400%

	Three months ended April 30, 2021 compared to three months ended April 30, 2020			Nine months ended April 30, 2021 compared to nine months ended April 30, 2020
Increase (decrease) in:
Board and stock expense	$	677,428		$	(310,750	)
Business development and investor relations		540,706			605,636
Consulting fees		(430,317	)		(577,311	)
Financing fees		94,912			161,718
Insurance expense		27,022			56,863
Legal and professional fees		62,998			327,303
Research and development		565,764			598,383
Wages		210,340			228,597
Other		37,802			32,801
	$	1,786,655		$	1,123,240

Exhibit Number		Exhibit Description
3110.1		~~Rule 13(a)-14(a)/15(d)-14(a)~~ Prevacus Asset Agreement. Incorporated by reference to Form 8-K filed with the SEC on March 2, 2021
10.2		Securities Purchase Agreement with LGH Investments, LLC. Incorporated by reference to Form 8-K filed with the SEC on April 7, 2021
10.3		LGH Investments, LLC Settlement Agreement
31.1		Certification of Chief Executive Officer ~~and~~pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934
31.2		Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934
3232.1		~~Section 1350~~ Certification of Chief Executive Officer ~~and~~pursuant to Section 1350
32.2		Certification of Chief Financial Officer pursuant to Section 1350
101.INS		XBRL Instances Document
101.SCH		XBRL Taxonomy Extension Schema Document
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		XBRL Taxonomy Extension Label Linkbase Document
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document



	ODYSSEY GROUP INTERNATIONAL, INC.

	By:	/s/ Joseph Michael Redmond
		Joseph Michael Redmond
		Chief Executive Officer, ~~Chief Financial Officer,~~ President and Director
		(Principal Executive Officer)


	By:	/s/ Christine M. Farrell
		Christine M. Farrell
		Chief Financial Officer ~~and~~
		(Principal Financial and Accounting Officer)