Marizyme (MRZM) 10-Q 15 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 15, 2020
Details
Registrant Name	MARIZYME INC
Registrant CIK	0001413754
Fiscal Year End	--12-31
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
Document Transition Report	false
Entity File Number	000-53223
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	82-5464863
Entity Address, Address Line One	109 Ambersweet Way, #401
Entity Address, City or Town	Davenport
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33897
Entity Address, Address Description	Address of principal executive offices
City Area Code	732
Local Phone Number	723-7395
Phone Fax Number Description	Registrant’s telephone number
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Shell Company	false
Entity Ex Transition Period	true
Entity Common Stock, Shares Outstanding		20,163,939
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1

INTERIM BALANCE SHEETS (Unaudit

INTERIM BALANCE SHEETS (Unaudited) - USD ($)		Mar. 31, 2020	Dec. 31, 2019
Current Assets:
Cash		$ 60	$ 90
Total Current Assets		60	90
Long Term Assets:
Intangible Assets - Note 4	[1]	28,600,000	28,600,000
Patents in Process		13,000	13,000
Total Long Term Assets		28,613,000	28,613,000
TOTAL ASSETS		28,613,060	28,613,090
Current Liabilities:
Accounts Payable and Accrued Liabilities		395,500	270,218
Total Liabilities		395,500	270,218
STOCKHOLDERS' EQUITY
Common Stock, Value, Issued		19,984	19,859
Donated Capital		41,422	41,422
Additional Paid-in Capital		59,624,105	59,278,172
Treasury Stock		(16,000)	(16,000)
Accumulated Deficit		(31,451,951)	(30,980,581)
Total Stockholders' Equity		28,217,560	28,342,872
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$ 28,613,060	$ 28,613,090
[1]	Note 4.

INTERIM BALANCE SHEETS (Unaud_2

INTERIM BALANCE SHEETS (Unaudited) - Parenthetical - $ / shares		Mar. 31, 2020	Dec. 31, 2019
Details
Common Stock, Shares Authorized		75,000,000	75,000,000	[1]
Common Stock, Par or Stated Value Per Share	[1]	$ 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		19,983,939	19,858,939
Common Stock, Shares, Outstanding		19,983,939	19,858,939
[1]	See Note 6.

INTERIM STATEMENTS OF OPERATION

INTERIM STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Details
Total Revenue	$ 0	$ 0
Total Cost of Goods Sold	0	0
Gross Profit	0	0
Expenses:
Operating Expenses	455,902	34,692
General and Administrative	15,468	15,569
Total Expenses	471,370	50,261
Net Operating Loss	(471,370)	(50,261)
Other Income	0	0
Other Expenses	0	0
Net Loss and Comprehensive Loss for the year	$ (471,370)	$ (50,261)
Net Loss per share, basic and diluted	$ (0.02)	$ 0
Weighted average number of shares of common stock outstanding, basic and diluted	19,887,021	19,740,302

INTERIM STATEMENTS OF EQUITY (U

INTERIM STATEMENTS OF EQUITY (Unaudited) - USD ($)	Common Stock	Preferred Stock	Additional Paid-in Capital	Donated Capital	Treasury Stock	Retained Earnings	Total
Equity Balance, Starting at Dec. 31, 2018	$ 19,740	$ 0	$ 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	0	(67,546)	(67,546)
Shares Outstanding, Ending at Mar. 31, 2019	19,740,302	0
Equity Balance, Ending at Mar. 31, 2019	$ 19,740	$ 0	58,454,704	41,422	(16,000)	(29,990,088)	28,509,778
Equity Balance, Starting at Dec. 31, 2019	$ 19,859	$ 0	59,278,172	41,422	(16,000)	(30,580,581)	28,342,872
Shares Outstanding, Starting at Dec. 31, 2019	19,858,939	0
Stock Issued During Period, Value, New Issues	$ 125	$ 0	124,875	0	0	0	125,000
Stock Issued During Period, Shares, New Issues	125,000
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture	$ 0	0	221,058	0	0	0	221,058
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	0
Net Income (Loss)	$ 0	$ 0	0	0	0	(471,370)	(471,370)
Shares Outstanding, Ending at Mar. 31, 2020	19,983,939	0
Equity Balance, Ending at Mar. 31, 2020	$ 19,984	$ 0	$ 59,624,105	$ 41,422	$ (16,000)	$ (31,051,951)	$ 28,217,560

INTERIM STATEMENTS OF CASH FLOW

INTERIM STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash Flow from Operating Activities:
Net Loss for the period	$ (471,370)	$ (67,546)
Adjustments to reconcile Net Loss to to Net Cash used by operations:
Stock Based Compensation	346,058	0
Changes in assets and liabilities:
Prepaid Expenses	0	15,000
Accounts Payable and Accrued Liabilities	125,282	52,633
Net Cash used by Operating Activities	(30)	87
Net Cash provided (used) by Investing Activities	0	0
Net Cash provided (used) by Financing Activities	0	0
Net cash increase (decrease) for period	(30)	87
Cash and Cash Equivalents, at Carrying Value, Beginning Balance	90	104
Cash and Cash Equivalents, at Carrying Value, Ending Balance	60	191
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, 2020
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. Beginning after the X-Assets share distribution, Marizyme refocused on the life sciences and began to seek 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, $0.001 par value per share (the “Common Stock”) is currently quoted on the OTC Markets under the ticker symbol “MRZM.” 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, 2020, the Company had not yet achieved profitable operations and had accumulated losses of $31,451,951 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, 2020
Notes
Note 2 - INTERIM REPORTING	Note 2 - INTERIM REPORTING While the information presented in the accompanying interim nine-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, 2019 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, 2019 annual financial statements. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that can be expected for the year ended December 31, 2020.

Note 3 - SUMMARY OF SIGNIFICANT

Note 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2020
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, 2019.

Note 4 - RECENT ACCOUNTING PRON

Note 4 - RECENT ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Mar. 31, 2020
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, 2020
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. During 2019, we incurred legal and filing fees of $13,000 associated with a patent application for pharmaceutical compositions and methods for the treatment of thrombosis. The patent is pending.

Note 6 - CAPITAL STOCK

Note 6 - CAPITAL STOCK	3 Months Ended
	Mar. 31, 2020
Notes
Note 6 - CAPITAL STOCK	Note 6 - 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, 2020, there were 19,983,939 shares of Common Stock outstanding. The following transactions in the Company’s capital stock were completed in the quarter ended March 31, 2020: On January 9, 2020, the Company issued 250,000 shares units. The following transactions in the Company’s capital stock were completed in the year ended December 31, 2019: On June 12, 2019, the Company issued 90,910 share units at $1.10 each for gross proceeds of $100,000 and it issued 27,727 share units at $0.9016 for gross proceeds of $25,000. Each unit consist of one share of common stock and one warrant, which allows the holder to purchase one common share of capital stock for a period of three years at a price of $3.00 per share. The following transactions in the Company’s capital stock were completed in the year ended December 31, 2018: 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 were issued on conversion of convertible debt of $79,614. Options The following stock options were granted during the past two years: i) ii) iii) As at March 31, 2020, the number of option outstanding and exercisable are as follows including weighted average inputs used in calculating stock-based compensation: Exercise price # of options outstanding # of options exercisable Term Volatility Risk Free Interest Rate Dividend Rate Remaining life $1.50 265,000 265,000 10 yrs 196.63% 2.60 Nil 8.76 yrs. $1.01 2,450,000 920,000 10 yrs 204.19% 1.91 Nil 9.29 yrs. $1.01 250,000 75,000 10 yrs 219.21% 1.66 Nil 9.78 yrs. $1.05 * 2,965,000 1,260,000 9.28 yrs * *Weighted Average Warrants On June 12, 2019 as part of a financing, the Company issued Warrants to purchase 113,637 shares at a strike price of $3 for a period of three years. All these warrants are still outstanding as at March 31, 2020.

Note 7 - COMMITMENTS

Note 7 - COMMITMENTS	3 Months Ended
	Mar. 31, 2020
Notes
Note 7 - COMMITMENTS	Note 7 - COMMITMENTS On July 13, 2019 the Company signed a consulting agreement with an individual to advise the Board of Directors. The individual receives $30,000 per month through July 13, 2022 and received an option to purchase 500,000 shares of Common Stock at a strike price of $1.01which vest monthly through July 13, 2021. These options are included in the Note 6 options above. On November 7, 2019 the Company signed a 5 year exclusive distribution agreement with Somahlutions, LLC to distribute their DuraGraft products in Europe, South America and other territories. On December 16, 2019, Marizyme signed a definitive agreement to purchase all the assets of Somahlutions and its related companies subject to raising $10 Million.

Note 8 - SUBSEQUENT EVENTS

Note 8 - SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2020
Notes
Note 8 - SUBSEQUENT EVENTS	Note 8 - SUBSEQUENT EVENTS On April 6, 2020, the company issued 160,000 shares of Common Stock to a consultant who exercised 160,000 options in lieu of $161,600 in accounts payable. On April 6, 2020, the company issued 5,000 shares of Common Stock to James Sapirstein who exercised 5,000 options in exchange for $5,050 in cash. On April 6, 2020 the company issued 15,000 shares of Common Stock to Patricia Wakeford in exchange for services rendered.

Note 6 - CAPITAL STOCK_ Share-b

Note 6 - CAPITAL STOCK: Share-based Payment Arrangement, Option, Activity (Tables)	3 Months Ended
	Mar. 31, 2020
Tables/Schedules
Share-based Payment Arrangement, Option, Activity	Exercise price # of options outstanding # of options exercisable Term Volatility Risk Free Interest Rate Dividend Rate Remaining life $1.50 265,000 265,000 10 yrs 196.63% 2.60 Nil 8.76 yrs. $1.01 2,450,000 920,000 10 yrs 204.19% 1.91 Nil 9.29 yrs. $1.01 250,000 75,000 10 yrs 219.21% 1.66 Nil 9.78 yrs. $1.05 * 2,965,000 1,260,000 9.28 yrs * *Weighted Average

Note 1 - COMPANY AND BACKGROU_2

Note 1 - COMPANY AND BACKGROUND (Details)	3 Months Ended
	Mar. 31, 2020
Details
Entity Incorporation, State or Country Code	NV
Entity Information, Former Legal or Registered Name	GBS Enterprises Incorporated

Note 6 - CAPITAL STOCK (Details

Note 6 - CAPITAL STOCK (Details) - USD ($)		3 Months Ended
		Mar. 31, 2020	Dec. 31, 2019		Mar. 31, 2019	Dec. 31, 2018	Jul. 27, 2018
Common Stock, Shares Authorized		75,000,000	75,000,000	[1]
Preferred Stock, Shares Authorized		25,000,000	25,000,000
Common Stock, Par or Stated Value Per Share	[1]	$ 0.001	$ 0.001
Sale of Stock, Transaction 1
Sale of Stock, Transaction Date		Jun. 12, 2019
Sale of Stock, Description of Transaction		Company issued 90,910 share units
Stock Issued During Period, Shares, New Issues		90,910
Sale of Stock, Price Per Share		$ 1.10
Stock Issued		$ 100,000
Common Stock, Terms of Conversion		Each unit consist of one share of common stock and one warrant, which allows the holder to purchase one common share of capital stock for a period of three years at a price of $3.00 per share.
Sale of Stock, Transaction 2
Sale of Stock, Transaction Date		Jun. 12, 2019
Sale of Stock, Description of Transaction		it issued 27,727 share units
Stock Issued During Period, Shares, New Issues		27,727
Sale of Stock, Price Per Share		$ 0.9016
Stock Issued		$ 25,000
Common Stock, Terms of Conversion		Each unit consist of one share of common stock and one warrant, which allows the holder to purchase one common share of capital stock for a period of three years at a price of $3.00 per share.
Sale of Stock, Transaction 3
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 4
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 5
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 During Period, Shares, New Issues		16,980,000
Sale of Stock, Transaction 6
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		$ 1,500,000
Sale of Stock, Transaction 7
Sale of Stock, Transaction Date		Dec. 30, 2018
Sale of Stock, Description of Transaction		159,228 shares of Common Stock were issued on conversion of convertible debt
Stock Issued		$ 79,614
Shares, Issued		159,228
Common Stock
Shares, Outstanding		19,983,939	19,858,939		19,740,302	19,740,302	1,101,074
Stock Issued During Period, Shares, New Issues		125,000
[1]	See Note 6.

Note 6 - CAPITAL STOCK_ Share_2

Note 6 - CAPITAL STOCK: Share-based Payment Arrangement, Option, Activity (Details)	3 Months Ended
	Mar. 31, 2020$ / sharesshares
Option #1
Exercise price | $ / shares	$ 1.50
# of options outstanding	265,000
# of options exercisable	265,000
Term	10 years
Volatility	196.63%
Risk Free Interest Rate	2.60%
Dividend Rate	0.00%
Remaining life	0 years
Option #2
Exercise price | $ / shares	$ 1.01
# of options outstanding	2,450,000
# of options exercisable	920,000
Term	10 years
Volatility	204.19%
Risk Free Interest Rate	1.91%
Dividend Rate	0.00%
Remaining life	0 years
Option #3
Exercise price | $ / shares	$ 1.01
# of options outstanding	250,000
# of options exercisable	75,000
Term	10 years
Volatility	219.21%
Risk Free Interest Rate	1.66%
Dividend Rate	0.00%
Remaining life	0 years
Option #4
Exercise price | $ / shares	$ 1.05	[1]
# of options outstanding	2,965,000	[1]
# of options exercisable	1,260,000	[1]
Term		[1]
Volatility		[1]
Risk Free Interest Rate		[1]
Dividend Rate		[1]
Remaining life	9 years 3 months 11 days	[1]
[1]	Weighted Average

Note 8 - SUBSEQUENT EVENTS (Det

Note 8 - SUBSEQUENT EVENTS (Details)	3 Months Ended
	Mar. 31, 2020
Event #1
Subsequent Event, Date	Apr. 6, 2020
Subsequent Event, Description	the company issued 160,000 shares of Common Stock to a consultant
Event #2
Subsequent Event, Date	Apr. 6, 2020
Subsequent Event, Description	the company issued 5,000 shares of Common Stock to James Sapirstein
Event #3
Subsequent Event, Date	Apr. 6, 2020
Subsequent Event, Description	the company issued 15,000 shares of Common Stock to Patricia Wakeford