Eastgate Biotech (ETBI) 10-Q 20 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	20-May-15
Document and Entity Information:
Entity Registrant Name	EASTGATE BIOTECH CORP
Entity Central Index Key	1099574
Trading Symbol	etbi
Current Fiscal Year End Date	-19
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		125,414,792
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2015	Dec. 31, 2014
Current
Cash	$28,861	$286,481
Deposits	11,039
Sales tax recoverable	64,298	53,208
Total current assets	104,198	339,689
Other assets
Property & Equipment, net	133,964	143,246
Total other assets	238,162	482,935
Total assets	238,162	482,935
Current liabilities
Accounts payable and accrued liabilities	289,648	299,099
Deferred revenue	65,406
Accrued liabilities related party	360,672	388,675
Deferred rent	3,464	4,200
Accrued interest - related parties	205,495	182,845
Notes payable - related parties	1,032,971	1,006,391
Total current liabilities	1,957,656	1,881,210
Total Liabilities	1,957,656	1,881,210
Commitments and Contingencies
Stockholders' equity (deficit)
Preferred stock:50,000,000 shares authorized at $0.00001 par value no shares issued at March 31, 2015 and December 31, 2014
Common stock: 450,000,000 shares authorized at $0.00001 par value 125,414,792 and 89,635,234 shares issued and outstanding at March 31, 2015 and December 31, 2014 respectively	1,254	896
Additional paid-in capital	7,428,932	5,957,771
Accumulated other comprehensive income	15,180	15,268
Deficit accumulated	-9,164,860	-7,372,210
Total stockholders' equity (deficit)	-1,719,494	-1,398,275
Total liabilities and stockholders' equity (deficit)	$238,162	$482,935

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, par value (in dollars per share)	$0.00	$0.00
Preferred stock, shares issued
Common stock, shares authorized	450,000,000	450,000,000
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, issued	125,414,792	89,635,234
Common stock, outstanding	125,414,792	89,635,234

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Statement [Abstract]
REVENUES
Cost of goods sold
Gross (loss) profit
OPERATING EXPENSES
Professional fees	50,420	49,906
Research & development	396,120	117,697
General and administrative	1,054,275	809,538
Marketing and selling	269,185	4,960
Total Operating Expenses	1,770,000	982,101
LOSS FROM OPERATIONS	-1,770,000	-982,101
Other items
Interest expense	-22,650	-22,114
Total other items	-22,650	-22,114
LOSS BEFORE INCOME TAXES	-1,792,650	-1,004,215
PROVISION FOR INCOME TAXES
NET LOSS	-1,792,650	-1,004,215
BASIC AND DILUTED LOSS PER SHARE (in dollars per share)	($0.01)	($0.03)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED (in shares)	110,011,256	33,416,788
COMPREHENSIVE LOSS A summary of the components of other comprehensive loss for the periods ended is as follows:
Net Loss	-1,792,650	-1,004,215
Other Comprehensive Loss - foreign currency translation	-88	4,955
Comprehensive Loss	($1,792,738)	($999,260)

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss for the period	($1,792,650)	($1,004,215)
Adjustments to reconcile net loss to net cash used in operating activities:
Expenses paid on the Company's behalf by a related party	833	4,938
Common stock issued for services	854,243	268,250
Depreciation	9,282	4,291
Stock options issued	291,427
Changes in operating assets and liabilities:
Accrued interest	22,650	1,502
Prepaid asset	-11,275
Accounts payable	7,129	-83,044
Accrued liabilities related party	303,004	410,180
Sales tax recoverable	-15,687	-14,802
Deferred rent	-408
Deferred revenue	65,406
Cash flows used in operating activities	-266,046	-412,900
CASH FLOWS FROM INVESTING ACTIVITIES
Cash flows used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of capital lease obligation		-10,275
Proceeds from notes payable related party	33,000	65,808
Payments on notes payable related party	-5,536	-9,590
Common stock issued for cash		1,145,500
Cash flows provided by financing activities	27,464	1,191,443
NET INCREASE (DECREASE) IN CASH	-238,582	778,543
Effect of foreign currency translation adjustments	-19,038	4,955
Cash, beginning of the period	286,481	458
Cash, end of the period	28,861	783,956
Supplemental disclosures of cash flow information:
Cash paid for income taxes
Cash paid for interest	44	20,067
Non Cash Financing activities:
Common stock issued to convert liabilities	325,849	1,245,407
Common stock issued - subscription payable		2,000
Common stock issued for placement fees		$10

CONDENSED_FINANCIAL_STATEMENTS

CONDENSED FINANCIAL STATEMENTS	3 Months Ended
	Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
CONDENSED FINANCIAL STATEMENTS	NOTE 1 - CONDENSED FINANCIAL STATEMENTS
	The accompanying financial statements have been prepared by the Eastgate Biotech Corp without audit.  In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at March 31, 2015, and for all periods presented herein have been made.
	Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted.  It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 2014 audited financial statements.  The results of operations for the periods ended March 31, 2015 and 2014 are not necessarily indicative of the operating results for the full years.

GOING_CONCERN

GOING CONCERN	3 Months Ended
	Mar. 31, 2015
Going Concern [Abstract]
GOING CONCERN	NOTE 2 - GOING CONCERN
	The accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern.  However, the Company has accumulated deficit of $9,164,860 as of March 31, 2015.  The Company currently has limited liquidity, and has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time, raising substantial doubt about its ability to continue as a going concern.
	Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses The Company intends to position itself so that it may be able to raise additional funds through the capital markets. In light of management's efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern.

SIGNIFICANT_ACCOUNTING_POLICIE

SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES
	Principles of Consolidation
	The consolidated financial statements include the accounts of Eastgate Biotech Corp. and its wholly-owned subsidiary Eastgate Pharmaceuticals Inc. All intercompany accounts and transactions have been eliminated in consolidation.
	Use of Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
	Cash and Cash Equivalents
	For purposes of the statement of cash flows, the Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes.
	Research and Development Costs
	The Company expenses research and development costs to operations as incurred. Research and development expenses are comprised of costs incurred in performing research and development activities, including employee-related expenses; laboratory supplies and other direct expenses; third-party contractual costs relating to nonclinical studies and related contract manufacturing expenses, development of manufacturing processes and regulatory registration.
	Foreign Currency Translation
	Foreign denominated assets and liabilities of the Company are translated into U.S. dollars at the prevailing exchange rates in effect at the end of the reporting period.  Income statement accounts are translated at a weighted average of exchange rates which were in effect during the period.  Translation adjustments that arise from translating the foreign subsidiary's financial statements from local currency to U.S. currency are recorded in the other comprehensive loss component of stockholders' equity.
	Recent Accounting Pronouncements
	In June 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-10, which eliminated certain financial reporting requirements of companies previously identified as "Development Stage Entities" (Topic 915). The amendments in this ASU simplify accounting guidance by removing all incremental financial reporting requirements for development stage entities. The amendments also reduce data maintenance and, for those entities subject to audit, audit costs by eliminating the requirement for development stage entities to present inception-to-date information in the statements of income, cash flows, and shareholder equity.   Early application of each of the amendments is permitted for any annual reporting period or interim period for which the entity's financial statements have not yet been issued (public business entities) or made available for issuance (other entities). Upon adoption, entities will no longer present or disclose any information required by Topic 915.  The Company has adopted this standard and will not report inception to date financial information.
	The Company has evaluated recent accounting pronouncements and their adoption has not had or is not expected to have a material impact on the Company's financial position or statements.

RELATEDPARTY_TRANSACTIONS

RELATED-PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2015
Related Party Transactions [Abstract]
RELATED-PARTY TRANSACTIONS	NOTE 4 –RELATED-PARTY TRANSACTIONS
	Notes payable – related parties
	The Company has recorded loans from shareholders, amounts due to shareholders for expenses paid on its behalf by shareholders as Notes payable - related parties on the balance sheet. The amounts comprising Notes payable – related parties bear interest ranging from 5 percent per annum to 10 percent per annum, are unsecured and are due and payable upon demand.
	During the three months ended March 31, 2015 the CEO and companies owned by the CEO as well as a company owned by a related party shareholder have advanced cash to the Company of $33,000, and have had expenses paid by the Company of $833 on their behalf.  At March 31, 2015 the Company has repaid $5,536 of related party loans.  During the year ended December 2014 the CEO and companies owned by the CEO as well as a company owned by a related party shareholder have paid for expenses on behalf of the Company of $4,938 and advanced cash to the Company of $190,880.  As of March 31, 2015 and December 31, 2014, the Company owed $205,495 and $182,845 of accrued interest to related parties, respectively, resulting from interest expense of $22,650 and $88,879, respectively.

SALES_TAX_RECOVERABLE

SALES TAX RECOVERABLE	3 Months Ended
	Mar. 31, 2015
Income Tax Disclosure [Abstract]
SALES TAX RECOVERABLE	NOTE 5 –SALES TAX RECOVERABLE
	Sales tax receivable
	The Company recovers sales tax paid, for which returns are filed on annual basis. At March 31, 2015, $64,298 was claimed as recoverable compared to the December 31, 2014 balance of $53,208.  Sales tax recoverable is a result of sales tax paid on eligible expenses.

STOCKHOLDERS_EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2015
Equity [Abstract]
STOCKHOLDERS' EQUITY	NOTE 6 – STOCKHOLDERS' EQUITY
	Common Stock and Warrants
	On January 5, 2015, the Company issued 8,146,225 Units of its securities in satisfaction of accrued liabilities comprised of $325,849 of compensation owed to eight directors and members of management at the price of $0.04 per share.  Each Unit consisted of one share of common stock and a five year warrant to purchase one share of common stock at an exercise price of $0.04 per share.  As a result of this transaction, the Company issued 8,146,225 shares of common stock and 8,146,225 warrants to purchase our common stock.
	In January 2015, the Company issued a total of 3,700,000 shares of common stock to consultants for services rendered at the price of $0.035 per share.
	On February 12, 2015, the Company issued a total of 15,250,000 shares of common stock to employees and consultants for services rendered at the price of $0.0286 per share.
	In March 2015, the Company issued a total of 8,683,333 shares of common stock to consultants for services rendered at the price of $0.033 per share.
	During the quarter ended March 31, 2015, the Company issued a total of 977,233 shares of common stock to consultants for services rendered at the price ranging from $0.06 to $0.50 per share.
	During the quarter ended March 31, 2015, the Company issued 1,770,346 shares of common stock to two officers and an employee as part of their compensation at the price of $0.055 per share.
	As of March 31, 2015, the Company had 25,418,525 warrants to purchase common stock.  All outstanding warrants have a weighted average price of $0.11 per share and have a weighted average remaining life of 4.03 years.
	The following table summarizes warrants that are issued, outstanding and exercisable
						Warrants Issued & Outstanding
	Exercise			Expiration		31-Mar			31-Dec
	Price			Date		2015			2014
	$	0.25		14-Mar-19			3,495,000			3,495,000
	$	0.25		21-Mar-19			3,480,000			3,480,000
	$	0.25		6-Jun-19			2,022,300			2,022,300
	$	0.05		16-Oct-19			150,000			150,000
	$	0.04		31-Dec-19			8,125,000			8,125,000
	$	0.04		5-Jan-20			8,146,225			-
							25,418,525			17,272,300
	Stock Options
	On February 12, 2015, the Company issued a total of 10,375,000 options to purchase shares of common stock to employees and consultants as compensation at an exercise price of $0.0286 per share.  The total fair value of the options at the date of the grant was $291,427.  The options vested immediately and compensation expense of $291,427 was recorded on the  grant date.  The fair value was estimated using the Black-Scholes option pricing model, taking into account the grant date exercise price of $0.0286, an expected life of the option of 2.5 years, an expected volatility of 211.1%, expected dividends on the stock of 0 and a risk-free interest rate for the term of the option of  1.02%.
	The following table summarizes the stock options that are issued, outstanding and exercisable
						Stock Options Issued & Outstanding
	Exercise				Expiration	31-Mar			31-Dec
	Price				Date	2015			2014
		$	0.286		12-Feb-20			10,375,000			0

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 7– SUBSEQUENT EVENTS
	In accordance with ASC 855 Company management reviewed all material events through the date of this report and determined that there are no material subsequent events to report except as described below:

SIGNIFICANT_ACCOUNTING_POLICIE1

SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation
	The consolidated financial statements include the accounts of Eastgate Biotech Corp. and its wholly-owned subsidiary Eastgate Pharmaceuticals Inc. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents
	For purposes of the statement of cash flows, the Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes.
Research and Development Costs	Research and Development Costs
	The Company expenses research and development costs to operations as incurred. Research and development expenses are comprised of costs incurred in performing research and development activities, including employee-related expenses; laboratory supplies and other direct expenses; third-party contractual costs relating to nonclinical studies and related contract manufacturing expenses, development of manufacturing processes and regulatory registration.
Foreign Currency Translation	Foreign Currency Translation
	Foreign denominated assets and liabilities of the Company are translated into U.S. dollars at the prevailing exchange rates in effect at the end of the reporting period.  Income statement accounts are translated at a weighted average of exchange rates which were in effect during the period.  Translation adjustments that arise from translating the foreign subsidiary's financial statements from local currency to U.S. currency are recorded in the other comprehensive loss component of stockholders' equity.
Recent Accounting Pronouncements	Recent Accounting Pronouncements
	In June 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-10, which eliminated certain financial reporting requirements of companies previously identified as "Development Stage Entities" (Topic 915). The amendments in this ASU simplify accounting guidance by removing all incremental financial reporting requirements for development stage entities. The amendments also reduce data maintenance and, for those entities subject to audit, audit costs by eliminating the requirement for development stage entities to present inception-to-date information in the statements of income, cash flows, and shareholder equity.   Early application of each of the amendments is permitted for any annual reporting period or interim period for which the entity's financial statements have not yet been issued (public business entities) or made available for issuance (other entities). Upon adoption, entities will no longer present or disclose any information required by Topic 915.  The Company has adopted this standard and will not report inception to date financial information.
	The Company has evaluated recent accounting pronouncements and their adoption has not had or is not expected to have a material impact on the Company's financial position or statements.

STOCKHOLDERS_EQUITY_Tables

STOCKHOLDERS' EQUITY (Tables)	3 Months Ended
	Mar. 31, 2015
Equity [Abstract]
Schedule of summarizes warrants that are issued, outstanding and exercisable						Warrants Issued & Outstanding
	Exercise			Expiration		31-Mar			31-Dec
	Price			Date		2015			2014
	$	0.25		14-Mar-19			3,495,000			3,495,000
	$	0.25		21-Mar-19			3,480,000			3,480,000
	$	0.25		6-Jun-19			2,022,300			2,022,300
	$	0.05		16-Oct-19			150,000			150,000
	$	0.04		31-Dec-19			8,125,000			8,125,000
	$	0.04		5-Jan-20			8,146,225			-
							25,418,525			17,272,300
Schedule of stock options that are issued, outstanding and exercisable						Stock Options Issued & Outstanding
	Exercise				Expiration	31-Mar			31-Dec
	Price				Date	2015			2014
		$	0.286		12-Feb-20			10,375,000			0

GOING_CONCERN_Detail_Textuals

GOING CONCERN (Detail Textuals) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Going Concern [Abstract]
Accumulated deficit	($9,164,860)	($7,372,210)

RELATEDPARTY_TRANSACTIONS_Deta

RELATED-PARTY TRANSACTIONS (Detail Textuals) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Related Party Transaction [Line Items]
Accrued interest to related parties	$205,495	$182,845
Notes payable - related parties
Related Party Transaction [Line Items]
Notes payable - related parties interest bearing percentage, minimum	5.00%
Notes payable - related parties interest bearing percentage, maximum	10.00%
Advanced cash received by related party shareholder	33,000	190,880
Expenses paid by company on behalf of related party	833	4,938
Repayment of related party loans	5,536
Accrued interest to related parties	205,495	182,845
Interest expense	$22,650	$88,879

SALES_TAX_RECOVERABLE_Detail_T

SALES TAX RECOVERABLE (Detail Textuals) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Sales tax recoverable	$64,298	$53,208

STOCKHOLDERS_EQUITY_Summarizes

STOCKHOLDERS' EQUITY - Summarizes warrants that are issued, outstanding and exercisable (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Class of Warrant or Right [Line Items]
Exercise Price	$0.11
Warrants Issued & Outstanding	25,418,525	17,272,300
14-Mar-19
Class of Warrant or Right [Line Items]
Exercise Price	$0.25
Expiration Date	14-Mar-19
Warrants Issued & Outstanding	3,495,000	3,495,000
21-Mar-19
Class of Warrant or Right [Line Items]
Exercise Price	$0.25
Expiration Date	21-Mar-19
Warrants Issued & Outstanding	3,480,000	3,480,000
6-Jun-19
Class of Warrant or Right [Line Items]
Exercise Price	$0.25
Expiration Date	6-Jun-19
Warrants Issued & Outstanding	2,022,300	2,022,300
16-Oct-19
Class of Warrant or Right [Line Items]
Exercise Price	$0.05
Expiration Date	16-Oct-19
Warrants Issued & Outstanding	150,000	150,000
31-Dec-19
Class of Warrant or Right [Line Items]
Exercise Price	$0.04
Expiration Date	31-Dec-19
Warrants Issued & Outstanding	8,125,000	8,125,000
5-Jan-20
Class of Warrant or Right [Line Items]
Exercise Price	$0.04
Expiration Date	5-Jan-20
Warrants Issued & Outstanding	8,146,225

STOCKHOLDERS_EQUITY_Summarizes1

STOCKHOLDERS' EQUITY - Summarizes stock options that are issued, outstanding and exercisable (Details 1) (Employee Stock Option, USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price	$0.29
Expiration Date	12-Feb-20
Stock Options Issued & Outstanding (in shares)	10,375,000	0

STOCKHOLDERS_EQUITY_Detail_Tex

STOCKHOLDERS' EQUITY (Detail Textuals) (USD $)	3 Months Ended	0 Months Ended	1 Months Ended		0 Months Ended
	Mar. 31, 2015	Feb. 12, 2015	Mar. 31, 2015	Jan. 31, 2015	Jan. 05, 2015
					Director
Stockholders Equity Note [Line Items]
Weighted average life	4 years 11 days
Number of warrants to purchase common stock	25,418,525		25,418,525
Exercise price	$0.11		$0.11
Employee and Consultant
Stockholders Equity Note [Line Items]
Shares issued for services rendered (in shares)		15,250,000
Price per share		$0.03
Employee and Consultant | Employee Stock Option
Stockholders Equity Note [Line Items]
Number of options issued to purchase shares		10,375,000
Exercise price of options		$0.03
Fair value of options at date of grant		$291,427
Share based compensation		291,427
Fair value estimation method		Black-Scholes option pricing model
Grant date exercise price		$0.03
Expected life of option		2 years 6 months
Expected volatility		211.10%
Expected dividends on stock		0.00%
Risk free interest rate		1.02%
Consultant
Stockholders Equity Note [Line Items]
Shares issued for services rendered (in shares)	977,233		8,683,333	3,700,000
Price per share	$0.03		$0.03	$0.04
Consultant | Minimum
Stockholders Equity Note [Line Items]
Price per share	$0.06		$0.06
Consultant | Maximum
Stockholders Equity Note [Line Items]
Price per share	$0.50		$0.50
Officer
Stockholders Equity Note [Line Items]
Shares issued for services rendered (in shares)	1,770,346
Price per share	$0.06		$0.06
Number of officers	2		2
Common stock and warrant unit
Stockholders Equity Note [Line Items]
Number of units issued					8,146,225
Proceeds from issuance of warrants					$325,849
Number of directors and members					8
Units issue price					0.04
Number of common stock in each unit					1
Weighted average life					5 years
Issued shares of common stock					8,146,225
Number of warrants to purchase common stock					8,146,225