| Basis of Presentation, Organization, Nature and Continuance of Operations, Recent Accounting Standards and Earnings (Loss) Per Share | Note 1. Basis of Presentation, Organization,
Overview of Operations, Liquidity, Recent Accounting Standards and Earnings (Loss) Per Share Basis of Presentation The accompanying unaudited interim consolidated financial
statements of RenovaCare, Inc. and Subsidiary (the “ Company SEC U.S. GAAP The accompanying unaudited interim Consolidated Financial
Statements have been prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect amounts
reported in the Consolidated Financial Statements and accompanying disclosures. Actual results may differ from those estimates. The accompanying
unaudited interim consolidated financial statements have been prepared on the same basis as the audited financial statements and include
all adjustments (including normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of
the Company’s consolidated financial position as of March 31, 2021, results of operations, stockholders’ equity and cash flows
for the three months ended March 31, 2021 and 2020. The Company did not record an income tax provision during the periods presented due
to net taxable losses. The results of operations for any interim period are not necessarily indicative of the results of operations for
the entire year. Organization RenovaCare, Inc. was incorporated on July 14, 1983
in the State of Utah under the name Far West Gold, Inc., and changed its domicile to Nevada in 1997. On January 7, 2014, the Company changed
its name at the time from “Janus Resources, Inc.” to “RenovaCare, Inc.” so as to more fully reflect its current
operations and business, and changed its trading symbol to “RCAR” effective as of January 9, 2014. The Company has an authorized capital of 500,000,000
shares of $0.00001 par value common stock, of which 87,352,364 shares are outstanding as of March 31, 2021, and 10,000,000 shares of $0.0001
par value preferred stock, of which none are outstanding. Overview of Operations RenovaCare, Inc., through its wholly owned subsidiary,
RenovaCare Sciences Corp. is a development-stage company focusing on the research, development and commercialization of autologous (using
a patient’s own cells) cellular therapies that can be used for medical and aesthetic applications. On July 12, 2013, the Company completed the acquisition
of its flagship technologies (collectively, the “ CellMist TM The CellMist™
System is a cell isolation procedure that enzymatically renders stem cells from the patient’s own skin or other tissues. The resulting
stem cell suspension is administered topically with our SkinGun™ spray device as a cell therapy onto wounds including burns
to facilitate healing. In August 2019, the Company was awarded a continuation
of a patent allowing the Company’s novel solution sprayer device (the “ SkinGun TM encompassing improvements to
the SkinGun™, expanding its potential application beyond the surgical setting into the field, and allowing the use of liquid suspension
solutions to include drugs, hormones, and other useful agents. Improvements in the design and efficiency of the CellMist™
System including a closed, automated cell isolation device and the SkinGun™ spray device are in development with StemCell Systems
(Berlin, Germany), the Company’s R&D innovation partner. The Company is adapting its core technologies for possible use in other
clinical indications. The Company is also developing the cell isolation and spray gun devices as stand-alone 510 (k)-cleared products
for isolation of cells from other tissues and spraying other solutions of medical importance. The Company does not have any commercialized products.
The Company's activities have consisted principally of performing research and development activities and raising capital to support such
activities. The Company has enlisted the assistance of several Contract Manufacturing Organizations (CMO) to manufacture clinical supplies
including components of the CellMist System™ and the electronic SkinGun™ spray devices in compliance with FDA’s guidance
for current Good Manufacturing Practices (cGMP) and Contract Research Organizations (CRO) to test and validate the Company’s products
and processes and to conduct clinical trials that evaluate initially the safety and feasibility of an autologous skin cell therapy using
the Company’s products to facilitate burn wound healing. These development activities are subject to significant risks and uncertainties,
including possible failure of preclinical and clinical testing. The Company has not generated any revenue and has sustained recurring
losses and negative cash flows from operations since inception. The Company expects to incur losses as it continues development of its
products and technologies and expects that it will need to raise additional capital through partnerships or the sale of its securities
to accomplish its business plan. Failing to secure such additional funding before achieving sustainable revenue and profit from operations
poses a significant risk. The Company's ability to fund the development of its cellular therapies depends on the amount and timing of
cash receipts from future financing activities. There can be no assurance as to the availability or terms upon which such financing and
capital might be available. Additionally, there is significant uncertainty relating to the full impact of the COVID-19 pandemic on the
Company’s operations and capital requirements. Should financing when needed be unavailable or prohibitively expensive or the COVID-19
pandemic continue, it may adversely affect the Company’s ability to (i) retain employees and consultants; (ii) obtain additional
financing on terms acceptable to the Company, if at all; (iii) delay regulatory submissions and approvals; (iv) delay, limit or preclude
the Company from securing clinical study sites; (v) delay, limit or preclude the Company from achieving technology or product development
goals, milestones, or objectives; and (vi) preclude or delay entry into joint venture or partnership arrangements. The occurrence of any
one or more of such events may affect the Company’s ability to continue on its pathway to commercialization of its technology or
products. Liquidity As of March 31, 2021, the Company had $5,607,845 of
cash on hand and cash equivalents, and working capital of $5,303,836. As a result, the Company believes it currently has sufficient cash
to meet its funding requirements over the next twelve months following the issuance of this Quarterly Report on Form 10-Q. However, the
Company has experienced and continues to experience negative cash flows from operations, as well as an ongoing requirement for substantial
additional capital investment. The Company expects that it may need to raise additional capital to accomplish its business plan over the
next several years. There can be no assurance as to the availability or terms upon which such financing and capital might be available.
See “Overview of Operations” above. Additionally, there is significant uncertainty relating
to the full impact of the COVID-19 pandemic on the Company’s operations and capital requirements. Should financing when needed be
unavailable or prohibitively expensive or the COVID-19 pandemic continue, it may adversely affect the Company’s ability to (i) retain
employees and consultants; (ii) obtain additional financing on terms acceptable to the Company, if at all; (iii) delay regulatory submissions
and approvals; (iv) delay, limit or preclude the Company from the operation of clinical study sites and testing laboratories; (v) delay,
limit or preclude the Company from achieving technology or product development goals, milestones, or objectives; and (vi) preclude or
delay entry into joint venture or partnership arrangements. The occurrence of any one or more of such events may affect the Company’s
ability to continue on its pathway to commercialization of its technology or products. Recent Accounting Standards Any reference in these notes to applicable accounting
guidance is meant to refer to the authoritative non-governmental US GAAP as found in the Financial Accounting Standards Board's Accounting
Standards Codification. The Company reviews new accounting standards as issued.
Although some of these accounting standards issued or effective after the end of the Company’s previous fiscal year may be applicable,
the Company has not identified any standards that the Company believes merit further discussion other than as discussed above. The Company
believes that none of the new standards will have a significant impact on the financial statements. Earnings (Loss) Per Share The Company presents both basic and diluted earnings
per share ("EPS") amounts. Basic EPS is calculated by dividing net income (loss) by the weighted average number of common shares
outstanding during the period presented. Diluted EPS amounts are based upon the weighted average number of common and common equivalent
shares outstanding during the period presented. The Company has not included the effects of warrants, stock options and convertible debt
on net loss per share because to do so would be antidilutive. Following is the computation of basic and diluted
net loss per share for the three months ended March 31, 2021 and 2020:
Three Months Ended
March 31,
2021 2020
Basic and Diluted EPS Computation
Numerator:
Loss available to common stockholders' $ (517,242 ) $ (1,174,753 )
Denominator:
Weighted average number of common shares outstanding 87,352,364 87,352,364
Basic and diluted EPS $ (0.01 ) $ (0.01 )
The shares listed below were not included in the computation of diluted losses
per share because to do so would have been antidilutive for the periods presented:
Stock options 3,164,999 2,938,071
Warrants 12,296,912 13,106,912
Total shares not included in the computation of diluted losses per share 15,461,911 16,044,983 |
