Marizyme (MRZM) 10-Q 14 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 14, 2018
Details
Registrant Name	MARIZYME INC
Registrant CIK	1,413,754
SEC Form	10-Q
Period End date	Sep. 30, 2018
Fiscal Year End	--12-31
Trading Symbol	marz
Tax Identification Number (TIN)	825,464,863
Number of common stock shares outstanding		19,581,044
Filer Category	Non-accelerated Filer
Current with reporting	Yes
Small Business	true
Emerging Growth Company	true
Ex Transition Period	true
Amendment Flag	false
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Entity File Number	000-53223
Entity Incorporation, State Country Name	Nevada
Entity Address, Address Line One	2950 E. Harmony Rd, Suite 255
Entity Address, City or Town	Fort Collins
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80,528
Entity Address, Address Description	Address of principal executive offices
City Area Code	925
Local Phone Number	400-3123
Phone Fax Number Description	Registrant’s telephone number

BALANCE SHEETS (September 30, 2

BALANCE SHEETS (September 30, 2018 Unaudited) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
ASSETS
Cash	$ 4,915	$ 51,608
Accounts Receivable	0	130,766
Notes Receivable	0	0
Prepaid Expenses	35,000	26,668
Total Current Assets	39,915	209,042
Intangible Assets	28,600,000	0
Investment in Subsidiaries	0	2,610,440
TOTAL ASSETS	28,639,915	2,819,482
LIABILITIES
Accounts Payable	3,000	24,223
Other Current Liabilities	0	628,447
Loans and Notes Payable	77,195	0
Total Current Liabilities	80,195	652,670
Long Term Liabilities	0	0
Total Liabilities	80,195	652,670
STOCKHOLDERS' EQUITY
Common Stock, Value	19,581	1,101
Donated Capital	41,422	41,422
Additional Paid in Capital	58,375,249	29,793,728
Accumulated Deficit	(29,860,531)	(27,653,439)
Treasury Stock	(16,000)	(16,000)
Total Equity	28,559,721	2,166,812
TOTAL LIABILITIES AND EQUITY	$ 28,639,915	$ 2,819,482

BALANCE SHEETS (September 30,_2

BALANCE SHEETS (September 30, 2018 Unaudited) - Parenthetical - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Details
Common Stock, Shares Authorized	75,000,000	75,000,000
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	25,000,000	25,000,000
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares, Issued	19,581,074	19,581,074
Common Stock, Shares, Outstanding	19,581,074	19,581,074

STATEMENTS OF OPERATIONS (Unaud

STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Details
Total Revenue	$ 542	$ 41,171	$ 23,187	$ 71,964
Total Cost of Goods Sold	542	22,082	20,075	34,899
Gross Profit	0	19,088	3,112	37,065
Expenses:
Operating Expenses	46,492	3,639	104,070	14,352
Administrative Expenses	24,130	3,795	83,581	32,615
Total Expenses	70,622	7,434	187,651	46,968
Net Operating Profit (Loss)	(70,622)	11,654	(184,539)	(9,902)
Other Income	0	27,924	0	76,242
Other Expenses	2,195	0	2,195	0
Net Other Income (Expense)	(2,195)	27,924	(2,195)	76,242
Net Income (Loss)	$ (72,817)	$ 39,579	$ (186,733)	$ 66,340

STATEMENT OF CHANGES IN STOCKHO

STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Common Stock	Preferred Stock	Additional Paid-in Capital	Donated Capital	Treasury Stock	Retained Earnings	Total
Equity Balance, Starting at Dec. 31, 2015	$ 1,101	$ 0	$ 29,793,728	$ 41,422	$ 0	$ (26,210,221)	$ 3,626,030
Shares Outstanding, Starting at Dec. 31, 2015	1,101,074
Net Income (Loss)	$ 0	0	0	0	0	(872,712)	(872,712)
Shares Outstanding, Ending at Dec. 31, 2016	1,101,074
Equity Balance, Ending at Dec. 31, 2016	$ 1,101	0	29,793,728	41,422	0	(27,082,933)	2,753,318
Delivery of GBSX shares for purchase of GBS India at $.04/sh	0	0	0	0	(16,000)	0	(16,000)
Net Income (Loss)	$ 0	0	0	0	0	(570,506)	(570,506)
Shares Outstanding, Ending at Dec. 31, 2017	1,101,074
Equity Balance, Ending at Dec. 31, 2017	$ 1,101	0	29,793,728	41,422	(16,000)	(27,653,439)	2,166,812
Net Income (Loss)	0	0	0	0	0	(2,020,359)	(2,020,359)
1,000 shares of Preferred Stock Issued	0	$ 1	0	0	0	0	1
1,000 shares of Preferred Stock Issued, shares		1,000
1.5m shares issued for exchange of 1000 preferred shares	$ 1,500	$ (1)	(1,499)	0	0	0	0
1.5m shares issued for exchange of 1000 preferred shares, shares	1,500,000	(1,000)
16.98 m shares issued for purchase of Krillase Enzyme Intangible asset	$ 16,980	$ 0	28,583,020	0	0	0	28,600,000
16.98 m shares issued for purchase of Krillase Enzyme Intangible asset, shares	16,980,000
Net Income (Loss)	$ 0	0	0	0	0	(186,733)	$ (186,733)
Shares Outstanding, Ending at Sep. 30, 2018	19,581,074						1,101,074
Equity Balance, Ending at Sep. 30, 2018	$ 19,581	$ 0	$ 58,375,249	$ 41,422	$ (16,000)	$ (29,860,531)	$ 28,559,721

STATEMENTS OF CASH FLOWS (Unaud

STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash Flow from Operating Activities:
Net Profit (Loss)	$ (186,733)	$ 66,339
Adjustments to reconcile Net Income to Net Cash provided by operations:
Interest Expense	2,195	0
Changes in assets and liabilities:
Accounts Payable	(21,222)	(97,394)
Accounts Receivables		(16,000)
Assets/Liabilities held for resale	92,399	86,447
Prepaid Expenses	(8,333)	(8,987)
Net Cash provided (used) by operating activities	(121,694)	30,406
Cash Flow from Financing Activities:
Third party Notes Payable	75,000	0
Net cash provided (used) by financing activities	75,000	0
Net cash increase (decrease) for period	(46,694)	30,406
Cash and Cash Equivalents, at Carrying Value, Beginning Balance	51,608	11,883
Cash and Cash Equivalents, at Carrying Value, Ending Balance	$ 4,915	$ 42,289

1. Business Overview

1. Business Overview	9 Months Ended
	Sep. 30, 2018
Notes
1. Business Overview	1. Business Overview Marizyme Inc. (“Marizyme” or the “Company”) is a Nevada corporation development-stage biotechnology company dedicated to the commercialization of therapies that address the urgent need of higher mortality and costs in the acute care space. Specifically, Marizyme will initially focus its efforts on developing treatments for disease caused by thrombus (stroke, acute myocardial infarctions or AMI’s and deep vein thrombosis or DVT’s), infections and pain/neurological conditions. Marizyme was formerly known as GBS Enterprises, a software and consulting business focused on serving IBM’s Lotus Notes and Domino market.

2. Basis of Presentation and Go

2. Basis of Presentation and Going Concern	9 Months Ended
	Sep. 30, 2018
Notes
2. Basis of Presentation and Going Concern	2. Basis of Presentation and Going Concern These unaudited financial statements have been prepared following the requirements of the Securities and Exchange Commission (“SEC”) and accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim reporting. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s interim financial information. The consolidated balance sheet as of September 30, 2018 was derived from the audited annual consolidated financial statements but does not include all disclosures required by GAAP. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2017 contained in the Company’s Form 10 (“Form 10”) filed with the Securities and Exchange Commission (“SEC”) on September 12, 2018 as amended on October 23, 2018. Going Concern The Company has not generated revenue to date from its newly acquired biotechnology business and has incurred substantial losses and negative cash flows from operations since its inception. These factors raise substantial doubt about the Company’s ability to continue as going concern for a period of 12 months from the release of the accompanying consolidated financial statements. The accompanying financial statements have been prepared under the assumption that the Company will continue as a going concern within one year of the issuance of these consolidated financial statements, contemplates the realization of assets and satisfaction of liabilities in the normal course of business and do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the inability of the Company to continue as a going concern. As of September 30, 2018, Marizyme had $4,915 in cash. Net cash used in operating activities was $(121,694) for the nine months ended September 30, 2018. Net loss for the nine months ended September 30, 2018 was $(186,733). The Company has funded its operations through issuances of debt, common and preferred stock. On September 12, 2018, we consummated an asset acquisition with ACB Holding AB, Reg. No. 559119-5762, a Swedish corporation, to acquire all right, title and interest in their Krillase technology in exchange for 16.98 million unregistered shares of the Company’s common stock (“Common Stock”). These shares were issued to certain individuals and entities set forth in the asset purchase agreement. Krillase is a naturally occurring extract of protease enzymes that acts to break protein bonds and has potential applications in dental care, wound healing and thrombolysis. The Company will be required to raise additional capital within the next year to continue the development and commercialization of its current product candidates and to continue to fund operations at its current cash expenditure levels. The Company cannot be certain that additional funding will be available on acceptable terms, or at all. Any debt financing, if available, may involve restrictive covenants that impact the Company’s ability to conduct business. If the Company is unable to raise additional capital when required or on acceptable terms, the Company may have to (i) significantly delay, scale back or discontinue the development and/or commercialization of one or more product candidates; (ii) seek collaborators for product candidate at an earlier stage than otherwise would be desirable and on terms that are less favorable than might otherwise be available; or (iii) relinquish or otherwise dispose of rights to technologies, product candidates or products that the Company would otherwise seek to develop or commercialize ourselves on unfavorable terms.

3. Summary of Significant Accou

3. Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2018
Notes
3. Summary of Significant Accounting Policies	3. Summary of Significant Accounting Policies There have been no changes in the accounting policies form those disclosed in the audited financial statements for the year ended December 31, 2017.

4. Recent Accounting Pronouncem

4. Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2018
Notes
4. Recent Accounting Pronouncements	4. Recent Accounting Pronouncements The Company adopts new pronouncements related to generally accepted accounting principles applicable to the Company as they are issued, which may be in advance of their effective date. Management does not believe that any pronouncement not effective but recently issues would, if adopted, have a material effect on the accompanying financial statements.

5. Debt

5. Debt	9 Months Ended
	Sep. 30, 2018
Notes
5. Debt	5. Debt On July 2, 2018 the Company issued a note payable for $75,000 received in cash. The note is unsecured, accrues 1% interest per month and is due and payable in full on January 3, 2019. On the due date, the note may be converted into Common Stock at the discretion of the noteholder at $0.50 per share.

6. Stockholder's Equity

6. Stockholder's Equity	9 Months Ended
	Sep. 30, 2018
Notes
6. Stockholder's Equity	6. Stockholder’s Equity Common and Preferred Stock The Company has authorized capital of 75,000,000 shares of Common Stock and 25,000,000 shares of “blank check” preferred stock, each with a par value of $0.001. On July 27, 2018 we completed a 1:29 reverse split of our Common Stock resulting in a total of 1,101,074 shares of Common Stock outstanding. These financial statements give retroactive effect to this stock consolidation. On April 4, 2018 the Board of Directors agreed to create and issue 1,000 shares of Series A Non-Convertible Preferred Stock to the CEO, Mr. Nicholas P. DeVito, immediately prior to the resignations of Mr. Ott, Mr. Moore, and Mr. Shihadah. The Series A Non-Convertible Preferred Stock represent eighty percent (80%) of all the votes entitled to be voted at any annual or special meeting of the stockholders of the Corporation or action by written consent of the stockholders. Each outstanding share of the Series A Non-Convertible Preferred Stock represents its proportionate share of the 80% which is allocated to the outstanding shares of Series A Non-Convertible Preferred Stock. On September 12, 2018, we consummated an asset acquisition with ACB Holding AB, Reg. No. 559119-5762, a Swedish corporation, to acquire all right, title and interest in their Krillase technology in exchange for 16.98 million unregistered shares of Common Stock. The shares were issued to certain individuals and entities set forth in the asset purchase agreement which resulted in a change of control of the Company. Effective September 13, 2018, Mr. Nicholas DeVito has resigned from the Board of Directors and as our Chief Executive Officer. Pursuant to a Mutual Release Agreement, Mr. DeVito has agreed to exchange his 1,000 Preferred Series A shares for 1,500,000 shares of Common Stock in MRZM and those preferred shares have been returned.

7. Accrued Liabilities

7. Accrued Liabilities	9 Months Ended
	Sep. 30, 2018
Notes
7. Accrued Liabilities	7. Accrued Liabilities The Company’s accrued expenses consist of the following: Legal and Accounting - $3,000

8. Related Party Transactions

8. Related Party Transactions	9 Months Ended
	Sep. 30, 2018
Notes
8. Related Party Transactions	8. Related Party Transactions Pursuant to a Mutual Release Agreement, Mr. DeVito has agreed to exchange his 1,000 Preferred Series A shares for 1,500,000 shares of Common Stock in MRZM and those preferred shares have been returned.

9. ASSETS AND LIABILITIES HELD

9. ASSETS AND LIABILITIES HELD FOR SALE	9 Months Ended
	Sep. 30, 2018
Notes
9. ASSETS AND LIABILITIES HELD FOR SALE	9. ASSETS AND LIABILITIES HELD FOR SALE On May 4, 2018 Marizyme signed an Assignment and Assumption Agreement with X-Assets Enterprises, Inc., a Nevada Corporation (“X-Assets”). We agreed to transfer assets and liabilities to X-Assets on September 1, 2018. To reflect that transaction we identified those assets and liabilities on our December 31, 2017 Balance Sheet as Assets Held for Sale and Liabilities Held for Sale. The assets include an accounts receivable valued at $130,766 and the GROUP shares valued at $2,610,440. The investment represented 23.9% of the outstanding shares of GROUP. The fair value was determined using the net book equity per share as the shares were very lightly traded in the public market. The liabilities include a current payable valued at $628,447. On September 1, 2018 all of the Assets and Liabilities Held for Sale were transferred to our subsidiary X-Assets. On September 5, 2018, we distributed 1,101,074 shares of X-Assets – reflecting 100% of the shares of this subsidiary to all of the stockholders of Marizyme on a 1 for 1 basis. As a result of the distribution, on September 30, 2018 this asset has $0 value to Marizyme. Its original value was determined by net equity, values not in the public domain, and there was no impairment required.

1. Business Overview (Details)

1. Business Overview (Details)	9 Months Ended
	Sep. 30, 2018
Details
Entity Information, Former Legal or Registered Name	GBS Enterprises

5. Debt (Details)

5. Debt (Details)	9 Months Ended
	Sep. 30, 2018USD ($)
Details
Debt Instrument, Issuance Date	Jul. 2, 2018
Debt Instrument, Description	note payable
Debt Instrument, Face Amount	$ 75,000
Debt Instrument, Collateral	unsecured
Debt Instrument, Interest Rate, Stated Percentage	1.00%
Debt Instrument, Maturity Date	Jan. 3, 2019
Debt Instrument, Convertible, Terms of Conversion Feature	On the due date, the note may be converted into Common Stock at the discretion of the noteholder at $0.50 per share

6. Stockholder's Equity (Detail

6. Stockholder's Equity (Details) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Details
Common Stock, Shares Authorized	75,000,000	75,000,000
Preferred Stock, Shares Authorized	25,000,000	25,000,000
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Shares, Outstanding	1,101,074

7. Accrued Liabilities (Details

7. Accrued Liabilities (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Details
Legal and Accounting fees payable	$ 3,000	$ 24,223

9. ASSETS AND LIABILITIES HEL_2

9. ASSETS AND LIABILITIES HELD FOR SALE (Details)	Sep. 30, 2018USD ($)
Details
Assets held for sale, Accounts Receivable	$ 130,766
Assets held for sale, GROUP Shares	2,610,440
Liabilities held for sale, Current Payable	628,447
Liabilities held for sale, Impairment	$ 0