Marizyme (MRZM) 10-Q 14 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 14, 2019
Details
Registrant Name	MARIZYME INC
Registrant CIK	0001413754
SEC Form	10-Q
Period End date	Mar. 31, 2019
Fiscal Year End	--12-31
Trading Symbol	marz
Tax Identification Number (TIN)	825464863
Number of common stock shares outstanding		19,740,302
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	2019
Document Fiscal Period Focus	Q1
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	80528
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

INTERIM BALANCE SHEETIS (Unaudi

INTERIM BALANCE SHEETIS (Unaudited) - USD ($)		Mar. 31, 2019	Dec. 31, 2018
Current Assets:
Cash		$ 191	$ 104
Prepaid Expenses		5,000	20,000
Total Current Assets		5,191	20,104
Long Term Assets:
Intangible Assets - Note 5	[1]	28,600,000	28,600,000
TOTAL ASSETS		28,605,191	28,620,104
Current Liabilities:
Accounts Payable and Accrued Liabilities		95,413	42,780
Total Liabilities		95,413	42,780
STOCKHOLDERS' EQUITY
Common Stock, Value	[2]	19,740	19,740
Donated Capital		41,422	41,422
Additional Paid-in Capital		58,454,704	58,454,704
Treasury Stock		(16,000)	(16,000)
Accumulated Deficit		(29,990,088)	(29,922,542)
Total Equity		28,509,778	28,577,324
TOTAL LIABILITIES AND EQUITY		$ 28,605,191	$ 28,620,104
[1]	Note 5.
[2]	Note 6.

INTERIM BALANCE SHEETIS (Unau_2

INTERIM BALANCE SHEETIS (Unaudited) - Parenthetical - $ / shares		Mar. 31, 2019	Dec. 31, 2018
Details
Common Stock, Shares Authorized	[1]	75,000,000	75,000,000
Common Stock, Par or Stated Value Per Share	[1]	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	[1]	25,000,000	25,000,000
Preferred Stock, Par or Stated Value Per Share	[1]	$ 0.001	$ 0.001
Common Stock, Shares, Issued	[1]	19,740,302	19,740,302
Common Stock, Shares, Outstanding	[1]	19,740,302	19,740,302
[1]	Note 6.

INTERIM STATEMENTS OF OPERATION

INTERIM STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Details
Total Revenue	$ 0	$ 5,553
Total Cost of Goods Sold	0	0
Gross Profit	0	5,553
Expenses:
Consulting fees	34,692	29,108
Director and officer insurance	15,000	10,000
General, office and miscellaneous	1,553	925
Professional fees	15,239	10,700
Travel and entertainment	1,062	0
Total Expenses	67,546	50,732
Net Operating Loss	(67,546)	(45,179)
Other Expense	0	(2,792)
Net Loss and comprehensive loss or the year	$ (67,546)	$ (47,971)
Net Loss per share, basic and diluted	$ 0	$ (0.04)
Weighted average of number of shares of common stock outstanding, basic and diluted	19,740,302	1,101,074

INTERIM STATEMENTS OF EQUITY (U

INTERIM STATEMENTS OF EQUITY (Unaudited) - USD ($)	Common Stock	Additional Paid-in Capital	Donated Capital	Treasury Stock	Retained Earnings	Total
Equity Balance, Starting at Dec. 31, 2017	$ 1,101	$ 29,793,728	$ 41,422	$ (16,000)	$ (27,653,439)	$ 2,166,812
Shares Outstanding, Starting at Dec. 31, 2017	1,101,074
Net Income (Loss)	$ 0	0	0	0	(47,971)	(47,971)
Shares Outstanding, Ending at Mar. 31, 2018	1,101,074
Equity Balance, Ending at Mar. 31, 2018	$ 1,101	29,793,728	41,422	(16,000)	(27,701,410)	2,118,841
Equity Balance, Starting at Dec. 31, 2018	$ 19,740	58,454,704	41,422	(16,000)	(29,922,542)	28,577,324
Shares Outstanding, Starting at Dec. 31, 2018	19,740,302
Net Income (Loss)	$ 0	0	0	0	(67,546)	(67,546)
Shares Outstanding, Ending at Mar. 31, 2019	19,740,302
Equity Balance, Ending at Mar. 31, 2019	$ 19,740	$ 58,454,704	$ 41,422	$ (16,000)	$ (29,990,088)	$ 28,509,778

INTERIM STATEMENTS OF CASH FLOW

INTERIM STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash Flow from Operating Activities:
Net loss for the period	$ (67,546)	$ (47,971)
Changes in assets and liabilities:
Prepaid Expenses	15,000	10,000
Accounts Receivable	0	(5,553)
Accounts Payable and Accrued Liabilities	52,633	0
Assets/liabilities Held for Resale	0	21,342
Net Cash used by operating activities	87	(22,182)
Net cash (used) by investing activities	0	0
Net cash (used) by financing activities	0	0
Net cash increase (decrease) for period	87	(22,182)
Cash and Cash Equivalents, at Carrying Value, Beginning Balance	104	51,608
Cash and Cash Equivalents, at Carrying Value, Ending Balance	191	29,426
Supplementary information
Interest paid	0	0
Taxes paid	$ 0	$ 0

Note 1 - COMPANY AND BACKGROUND

Note 1 - COMPANY AND BACKGROUND	3 Months Ended
	Mar. 31, 2019
Notes
Note 1 - COMPANY AND BACKGROUND	Note 1 COMPANY AND BACKGROUND Overview Marizyme, Inc., a Nevada corporation formerly known as GBS Enterprises Incorporated (the “Company,” “Marizyme”, “GBS,” “GBSX,” “MRZM,”, “we,” “us,” “our” or similar expressions), conducted its primary business through its majority owned subsidiary, GBS Software AG (“GROUP”), a German-based public-company. By December 31, 2016, we sold the controlling interest in GROUP and other subsidiaries, keeping only a minority interest in GROUP. On March 21, 2018, we formed a wholly-owned subsidiary named Marizyme, Inc., a Nevada corporation, and merged with it, effectively changing the Company’s name to Marizyme, Inc. On June 1, 2018, we exchanged the shares of GROUP and all the intercompany assets and liabilities for 100% of the shares of X-Assets Enterprises, Inc, a Nevada Corporation. As part of a type-D business restructuring on September 5, 2018, we then distributed the X-Assets shares to our own shareholders on a 1 for 1 basis. Marizyme refocused on the life sciences and seeks technologies to acquire. 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 shares of Common Stock. Krillase is a naturally occurring enzyme that acts to break protein bonds and has applications in dental care, wound healing and thrombosis. The Company’s common stock was historically quoted on the OTC Markets’ OTCQB under the ticker symbol “MRZM.” However, because the Company failed to file its 2014 Annual Report with the Securities and Exchange Commission (the “SEC”), the Company’s common stock since that time has been quoted on the OTC Pink sheets. The Company Filed a Form 10 with the SEC on September 12, 2018 and is now current with its SEC periodic filings. These financial statements have been prepared in accordance with generally accepted principles applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for its next twelve months. Realization values may be substantially different from carrying values as shown and these financial statements do not give effect to adjustments that would be necessary to the carrying values and classifications of assets and liabilities should the Company be unable to continue as a going concern. At March 31, 2019, the Company had not yet achieved profitable operations and had accumulated losses of $29,990,088 since its inception, all of which casts substantial doubt about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management is in the process of executing a strategy based upon a new strategic direction in the life sciences space. We have several technologies in the commercialization phase and in development. We are seeking acquisitions of biotechnology assets in support of this direction. There can be no assurances that management will be successful in executing this strategy.

Note 2 - INTERIM REPORTING

Note 2 - INTERIM REPORTING	3 Months Ended
	Mar. 31, 2019
Notes
Note 2 - INTERIM REPORTING	Note 2 INTERIM REPORTING While the information presented in the accompanying interim three-month financial statements is unaudited, it includes all adjustments, which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in accordance with accounting principles generally accepted in the United States of America. These interim financial statements follow the same accounting policies and methods of their application as the Company’s December 31, 2018 annual financial statements. All adjustments are of a normal recurring nature. It is suggested that these interim financial statements be read in conjunction with the Company’s December 31, 2018 annual financial statements. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that can be expected for the year ended December 31, 2019.

Note 3 - SUMMARY OF SIGNIFICANT

Note 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2019
Notes
Note 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Note 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES There have been no changes in the accounting policies that effect these interim financial statements from the accounting policies disclosed in the notes to the audited annual financial statements for the year ended December 31, 2018.

Note 4 - RECENT ACCOUNTING PRON

Note 4 - RECENT ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Mar. 31, 2019
Notes
Note 4 - RECENT ACCOUNTING PRONOUNCEMENTS	Note 4 RECENT ACCOUNTING PRONOUNCEMENTS The Company adopts new pronouncements relating 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 yet effective but recently issued would, if adopted, have a material effect on the accompanying financial statements.

Note 5 - INTANGIBLE ASSETS

Note 5 - INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2019
Notes
Note 5 - INTANGIBLE ASSETS	Note 5 INTANGIBLE ASSETS 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 shares of Common Stock. Krillase is a naturally occurring enzyme that acts to break protein bonds and has applications in dental care, wound healing and thrombosis. The transaction was recorded at the fair value of the shares. No amortization has been recorded as the patents are not yet in a position to produce cash flows.

Note 6 - CONVERTIBLE NOTE PAYAB

Note 6 - CONVERTIBLE NOTE PAYABLE	3 Months Ended
	Mar. 31, 2019
Notes
Note 6 - CONVERTIBLE NOTE PAYABLE	Note 6 CONVERTIBLE NOTE PAYABLE On July 7, 2018 the Company issued a convertible note for $75,000. The note accrued interest at 12% interest, calculated monthly, due January 3, 2019 and convertible into common stock at the discretion of the noteholder at $0.50 per share. On December 30, 2018, the noteholder converted the principal and interest owing of $79,614 into 159,228 shares of common stock.

Note 7 - CAPITAL STOCK

Note 7 - CAPITAL STOCK	3 Months Ended
	Mar. 31, 2019
Notes
Note 7 - CAPITAL STOCK	Note 7 CAPITAL 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. As of March 31, 2019, there were 19,581,044 shares of common stock outstanding. On May 14,2018, 1,000 shares of preferred stock was issued to the CEO for services valued at $1. The preferred stock had voting rights of 80% at shareholder meetings. On July 27, 2018, the Company completed a reverse stock split of 1 new share for 29 shares of the Company’s issued and outstanding common stock. These financial statements give retroactive effect to this transaction. On September 12, 2018, 16,980,000 common shares were issued to acquire patents and all rights, title and interest in Krillase technology and 1,500,000 shares were issued to the CEO in exchange for the 1,000 shares of preferred stock. On December 30, 2018, 159,228 shares of common stock was issued on conversion of convertible debt of $79,614. There were no equity transactions during the three months ended March 31, 2019. Options and warrants. No options or warrants were outstanding as at March 31, 2019.

Note 8 - COMMITMENTS

Note 8 - COMMITMENTS	3 Months Ended
	Mar. 31, 2019
Notes
Note 8 - COMMITMENTS	Note 8 COMMITMENTS On September 14, 2018, the Company signed a 3-year employment agreement with its CEO, Mr Handley, with a base salary of $490,000 and bonuses of up to 55% of his base salary at the sole discretion of the Board of Directors. However, he resigned on March 28, 2019 and the agreement is no longer in force.

Note 9 - SUBSEQUENT EVENTS

Note 9 - SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2019
Notes
Note 9 - SUBSEQUENT EVENTS	Note 9 SUBSEQUENT EVENTS Subsequent to March 31, 2019, the Company sold $125,000 of its common stock to two investors in a private placement exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), pursuant to Regulation D under the Securities Act. In this private placement, the Company sold 113,637 shares priced at $1.10 per share and included a three-year warrant to purchase one additional share for each share purchased in the private placement at an exercise price of $3.00 per share. If the price of the Company’s common stock reaches $4.00 for 20 consecutive days, the company has the right to buy back the warrant for $0.01 per share if the investor elects not to exercise the warrant to acquire the additional shares.

Note 1 - COMPANY AND BACKGROU_2

Note 1 - COMPANY AND BACKGROUND (Details)	3 Months Ended
	Mar. 31, 2019
Details
Entity Incorporation, State Country Name	Nevada
Entity Information, Former Legal or Registered Name	GBS Enterprises Incorporated

Note 6 - CONVERTIBLE NOTE PAY_2

Note 6 - CONVERTIBLE NOTE PAYABLE (Details)	3 Months Ended
	Mar. 31, 2019USD ($)
Details
Debt Instrument, Issuance Date	Jul. 7, 2018
Debt Instrument, Issuer	Company
Debt Instrument, Description	convertible note
Debt Instrument, Face Amount	$ 75,000
Debt Instrument, Interest Rate, Stated Percentage	12.00%
Debt Instrument, Maturity Date	Jan. 3, 2019
Debt Instrument, Convertible, Terms of Conversion Feature	convertible into common stock at the discretion of the noteholder at $0.50 per share

Note 7 - CAPITAL STOCK (Details

Note 7 - CAPITAL STOCK (Details) - USD ($)		3 Months Ended
		Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Common Stock, Shares Authorized	[1]	75,000,000	75,000,000
Preferred Stock, Shares Authorized	[1]	25,000,000	25,000,000
Common Stock, Par or Stated Value Per Share	[1]	$ 0.001	$ 0.001
Preferred Stock, Par or Stated Value Per Share	[1]	$ 0.001	$ 0.001
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number		0
Sale of Stock, Transaction 1
Sale of Stock, Transaction Date		May 14, 2018
Sale of Stock, Description of Transaction		1,000 shares of preferred stock was issued to the CEO
Sale of Stock, Transaction 2
Sale of Stock, Transaction Date		Jul. 27, 2018
Sale of Stock, Description of Transaction		Company completed a reverse stock split of 1 new share for 29 shares of the Company’s issued and outstanding common stock
Sale of Stock, Transaction 3
Sale of Stock, Transaction Date		Sep. 12, 2018
Sale of Stock, Description of Transaction		16,980,000 common shares were issued to acquire patents and all rights, title and interest in Krillase technology
Stock Issued, fair value		$ 16,980,000
Sale of Stock, Transaction 4
Sale of Stock, Transaction Date		Sep. 12, 2018
Sale of Stock, Description of Transaction		1,500,000 shares were issued to the CEO in exchange for the 1,000 shares of preferred stock
Stock Issued, fair value		$ 1,500,000
Sale of Stock, Transaction 5
Sale of Stock, Transaction Date		Dec. 30, 2018
Sale of Stock, Description of Transaction		159,228 shares of common stock was issued on conversion of convertible debt
Stock Issued, fair value		$ 79,614
Shares, Issued		159,228
Common Stock
Shares, Outstanding		19,740,302	19,740,302	1,101,074	1,101,074
[1]	Note 6.

Note 9 - SUBSEQUENT EVENTS (Det

Note 9 - SUBSEQUENT EVENTS (Details) - Subsequent Event	3 Months Ended
	Mar. 31, 2019shares
Subsequent Event, Description	Company sold $125,000 of its common stock to two investors in a private placement
Sale of Stock, Description of Transaction	Company sold $125,000 of its common stock
Shares, Issued	125,000