Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 12, 2024 | |
Cover [Abstract] | ||
Entity Registrant Name | BioCorRx Inc. | |
Entity Central Index Key | 0001443863 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Jun. 30, 2024 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
Entity Common Stock Shares Outstanding | 10,890,521 | |
Entity File Number | 000-54208 | |
Entity Incorporation State Country Code | NV | |
Entity Tax Identification Number | 90-0967447 | |
Entity Address Address Line 1 | 2390 East Orangewood Avenue | |
Entity Address Address Line 2 | Suite 570 | |
Entity Address City Or Town | Anaheim | |
Entity Address State Or Province | CA | |
Entity Address Postal Zip Code | 92806 | |
City Area Code | 714 | |
Local Phone Number | 462-4880 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash | $ 8,365 | $ 65,222 |
Accounts receivable, net | 0 | 740 |
Grant receivable | 109,736 | 76,266 |
Prepaid expenses | 53,909 | 44,891 |
Total current assets | 172,010 | 187,119 |
Property and equipment, net | 38,105 | 50,943 |
Right to use assets | 218,046 | 97,278 |
Other assets: | ||
Patents, net | 8,438 | 9,027 |
Deposits, long term | 41,936 | 44,520 |
Total other assets | 50,374 | 53,547 |
Total assets | 478,535 | 388,887 |
Current liabilities: | ||
Accounts payable and accrued expenses, including related party payables of $1,173,120 and $1,683,453, respectively | 5,330,053 | 4,649,179 |
Lease liability, short term | 38,491 | 122,732 |
Derivative liability | 80,190 | 53,460 |
Notes payable, net of debt discount of $180,599 and $354,730, respectively | 1,000,881 | 606,750 |
Notes payable, related parties, net of debt discount of $0 and $77,295, respectively | 865,353 | 999,088 |
Total current liabilities | 7,314,968 | 6,431,209 |
Long term liabilities: | ||
Economic Injury Disaster loan, long term | 71,754 | 72,466 |
Royalty obligation, net of discount of $4,662,246 and $4,899,354, related parties | 4,059,854 | 3,822,746 |
Lease liability, long term | 179,555 | 10,945 |
Deferred revenue, long term | 0 | 4,045 |
Total liabilities | 11,626,131 | 10,341,411 |
Preferred stock, no par value, 600,000 authorized | ||
Common stock, $0.001 par value; 750,000,000 shares authorized, 9,783,074 and 8,674,029 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively | 9,783 | 8,674 |
Common stock subscribed | 100,000 | 100,009 |
Additional paid in capital | 69,424,316 | 68,149,029 |
Accumulated deficit | (80,557,140) | (78,103,018) |
Total deficit attributable to BioCorRx Inc. | (11,001,425) | (9,823,690) |
Non-controlling interest | (146,171) | (128,834) |
Total deficit | (11,147,596) | (9,952,524) |
Total liabilities and deficit | 478,535 | 388,887 |
Series A Convertible Preferred Stock [Member] | ||
Preferred stock, no par value, 600,000 authorized | ||
Series A convertible preferred stock, no par value; 80,000 designated; 80,000 shares issued and outstanding as of June 30, 2024 and December 31, 2023 | 16,000 | 16,000 |
Series B Convertible Preferred Stock [Member] | ||
Preferred stock, no par value, 600,000 authorized | ||
Series A convertible preferred stock, no par value; 80,000 designated; 80,000 shares issued and outstanding as of June 30, 2024 and December 31, 2023 | $ 5,616 | $ 5,616 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Related party payables | $ 1,173,120 | $ 1,683,453 |
Debt discount on notes payable | 180,599 | 354,730 |
Debt discount, related parties | 0 | 77,295 |
Discount on Royalty obligation related parties | $ 4,662,246 | $ 4,899,354 |
Preferred Stock, Par Value | $ 0 | $ 0 |
Preferred Stock, Shares Authorized | 600,000 | 600,000 |
Common Stock, Par Value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 750,000,000 | 750,000,000 |
Common Stock, Shares Issued | 9,783,074 | 8,674,029 |
Common Stock, Shares Outstanding | 9,783,074 | 8,674,029 |
Convertible Series A Preferred Stock [Member] | ||
Preferred Stock, Par Value | $ 0 | $ 0 |
Preferred Stock, Shares Designated | 80,000 | 80,000 |
Preferred Stock, Shares Issued | 80,000 | 80,000 |
Preferred Stock, Shares Outstanding | 80,000 | 80,000 |
Convertible Series B Preferred Stock [Member] | ||
Preferred Stock, Par Value | $ 0 | $ 0 |
Preferred Stock, Shares Designated | 160,000 | 160,000 |
Preferred Stock, Shares Issued | 160,000 | 160,000 |
Preferred Stock, Shares Outstanding | 160,000 | 160,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||
Revenues, net | $ 4,045 | $ 19,635 | $ 7,665 | $ 60,077 |
Operating expenses: | ||||
Cost of implants and other costs | 0 | 10,376 | 1,667 | 19,052 |
Research and development | 536,362 | 238,419 | 750,196 | 475,806 |
Selling, general and administrative | 830,321 | 711,027 | 1,580,419 | 1,507,076 |
Impairment of intellectual property | 0 | 0 | 0 | 47,980 |
Depreciation and amortization | 6,714 | 6,714 | 13,427 | 13,379 |
Total operating expenses | 1,373,397 | 966,536 | 2,345,709 | 2,063,293 |
Loss from operations | (1,369,352) | (946,901) | (2,338,044) | (2,003,216) |
Other income (expenses): | ||||
Interest expense - related parties | (203,549) | (162,825) | (390,377) | (332,205) |
Interest expense, net | (317,907) | (27,489) | (499,727) | (53,529) |
Loss on settlement of debt | 0 | (34,338) | 0 | (34,338) |
Grant income | 518,667 | 248,006 | 631,630 | 489,155 |
Other miscellaneous income | 138,145 | 0 | 125,059 | 0 |
Total other (expense) income | 135,356 | 23,354 | (133,415) | 69,083 |
Loss before provision for income taxes | (1,233,996) | (923,547) | (2,471,459) | (1,934,133) |
Income taxes | 0 | 0 | 0 | 0 |
Net loss | (1,233,996) | (923,547) | (2,471,459) | (1,934,133) |
Non-controlling interest | 16,650 | 1,106 | 17,337 | 2,040 |
Net loss attributable to BioCorRx Inc. | $ (1,217,346) | $ (922,441) | $ (2,454,122) | $ (1,932,093) |
Net loss per common share, basic and diluted | $ (0.13) | $ (0.11) | $ (0.27) | $ (0.24) |
Weighted average number of common shares outstanding, basic and diluted | 9,459,532 | 8,464,429 | 9,108,695 | 8,105,052 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF Shareholders Equity (UNAUDITED) - USD ($) | Total | Series A Convertible Preferred Stocks | Series B Convertible Preferred Stock | Common Stock [Member] | Common Stock Subscribed | Additional Paid-In Capital | Accumulated Deficit | Noncontrolling Interest | Common stock subscription receivable |
Balance, shares at Dec. 31, 2022 | 80,000 | 160,000 | 7,718,636 | ||||||
Balance, amount at Dec. 31, 2022 | $ (8,201,731) | $ 16,000 | $ 5,616 | $ 7,719 | $ 100,000 | $ 66,130,296 | $ (74,336,105) | $ (125,257) | $ 0 |
Common stock issued for services rendered, shares | 36,660 | ||||||||
Common stock issued for services rendered, amount | 63,144 | 0 | 0 | $ 37 | 0 | 63,107 | 0 | 0 | 0 |
Common stock issued in connection with issuance of promissory notes, shares | 4,285 | ||||||||
Common stock issued in connection with issuance of promissory notes, amount | 6,000 | 0 | 0 | $ 4 | 0 | 5,996 | 0 | 0 | 0 |
Common stock issued in connection with subscription agreement, shares | 342,592 | ||||||||
Common stock issued in connection with subscription agreement, amount | 300,000 | 0 | 0 | $ 343 | 0 | 599,657 | 0 | 0 | (300,000) |
Share-based compensation | 16,074 | 0 | 0 | 0 | 0 | 16,074 | 0 | 0 | 0 |
Net loss | (1,010,586) | $ 0 | $ 0 | $ 0 | 0 | 0 | (1,009,652) | (934) | |
Balance, shares at Mar. 31, 2023 | 80,000 | 160,000 | 8,102,173 | ||||||
Balance, amount at Mar. 31, 2023 | (8,827,099) | $ 16,000 | $ 5,616 | $ 8,103 | 100,000 | 66,815,130 | (75,345,757) | (126,191) | (300,000) |
Balance, shares at Dec. 31, 2022 | 80,000 | 160,000 | 7,718,636 | ||||||
Balance, amount at Dec. 31, 2022 | (8,201,731) | $ 16,000 | $ 5,616 | $ 7,719 | 100,000 | 66,130,296 | (74,336,105) | (125,257) | 0 |
Net loss | (1,934,133) | ||||||||
Warrants issued in connection with issuance of promissory notes | 0 | ||||||||
Balance, shares at Jun. 30, 2023 | 80,000 | 160,000 | 8,519,489 | ||||||
Balance, amount at Jun. 30, 2023 | (8,710,510) | $ 16,000 | $ 5,616 | $ 8,520 | 100,000 | 67,554,849 | (76,268,198) | (127,297) | |
Balance, shares at Mar. 31, 2023 | 80,000 | 160,000 | 8,102,173 | ||||||
Balance, amount at Mar. 31, 2023 | (8,827,099) | $ 16,000 | $ 5,616 | $ 8,103 | 100,000 | 66,815,130 | (75,345,757) | (126,191) | (300,000) |
Common stock issued for services rendered, shares | 35,301 | ||||||||
Common stock issued for services rendered, amount | 62,291 | 0 | 0 | $ 35 | 0 | 62,256 | 0 | 0 | 0 |
Common stock issued in connection with subscription agreement, shares | 174,409 | ||||||||
Common stock issued in connection with subscription agreement, amount | 600,000 | 0 | 0 | $ 174 | 0 | 299,826 | 0 | 0 | 300,000 |
Share-based compensation | 15,953 | 0 | 0 | 0 | 0 | 15,953 | 0 | 0 | 0 |
Net loss | (923,547) | 0 | 0 | $ 0 | 0 | 0 | (922,441) | (1,106) | |
Common stock issued in connection with conversion of promissory notes and accounts payable, shares | 207,606 | ||||||||
Common stock issued in connection with conversion of promissory notes and accounts payable, amount | 361,892 | $ 0 | $ 0 | $ 208 | 0 | 361,684 | 0 | 0 | $ 0 |
Balance, shares at Jun. 30, 2023 | 80,000 | 160,000 | 8,519,489 | ||||||
Balance, amount at Jun. 30, 2023 | (8,710,510) | $ 16,000 | $ 5,616 | $ 8,520 | 100,000 | 67,554,849 | (76,268,198) | (127,297) | |
Balance, shares at Dec. 31, 2023 | 80,000 | 160,000 | 8,674,029 | ||||||
Balance, amount at Dec. 31, 2023 | (9,952,524) | $ 16,000 | $ 5,616 | $ 8,674 | 100,009 | 68,149,029 | (78,103,018) | (128,834) | |
Common stock issued for services rendered, shares | 169,075 | ||||||||
Common stock issued for services rendered, amount | 149,625 | 0 | 0 | $ 169 | 0 | 149,456 | 0 | 0 | |
Common stock issued in connection with issuance of promissory notes, shares | 54,000 | ||||||||
Common stock issued in connection with issuance of promissory notes, amount | 40,217 | 0 | 0 | $ 54 | 0 | 40,163 | 0 | 0 | |
Share-based compensation | 48,450 | 0 | 0 | 0 | 0 | 48,450 | 0 | 0 | |
Net loss | (1,237,463) | 0 | 0 | 0 | 0 | 0 | (1,236,776) | (687) | |
Warrants issued in connection with issuance of promissory notes | 83,552 | $ 0 | $ 0 | $ 0 | 0 | 83,552 | 0 | 0 | |
Balance, shares at Mar. 31, 2024 | 80,000 | 160,000 | 8,897,104 | ||||||
Balance, amount at Mar. 31, 2024 | (10,868,143) | $ 16,000 | $ 5,616 | $ 8,897 | 100,009 | 68,470,650 | (79,339,794) | (129,521) | |
Balance, shares at Dec. 31, 2023 | 80,000 | 160,000 | 8,674,029 | ||||||
Balance, amount at Dec. 31, 2023 | (9,952,524) | $ 16,000 | $ 5,616 | $ 8,674 | 100,009 | 68,149,029 | (78,103,018) | (128,834) | |
Net loss | (2,471,459) | ||||||||
Warrants issued in connection with issuance of promissory notes | 83,552 | ||||||||
Balance, shares at Jun. 30, 2024 | 80,000 | 160,000 | 9,783,074 | ||||||
Balance, amount at Jun. 30, 2024 | (11,147,596) | $ 16,000 | $ 5,616 | $ 9,783 | 100,000 | 69,424,316 | (80,557,140) | (146,171) | |
Balance, shares at Mar. 31, 2024 | 80,000 | 160,000 | 8,897,104 | ||||||
Balance, amount at Mar. 31, 2024 | (10,868,143) | $ 16,000 | $ 5,616 | $ 8,897 | 100,009 | 68,470,650 | (79,339,794) | (129,521) | |
Common stock issued for services rendered, shares | 191,923 | ||||||||
Common stock issued for services rendered, amount | 114,779 | 0 | 0 | $ 192 | 0 | 114,587 | 0 | 0 | |
Common stock issued in connection with subscription agreement, shares | 9,374 | ||||||||
Common stock issued in connection with subscription agreement, amount | 0 | 0 | 0 | $ 9 | (9) | 0 | 0 | 0 | |
Share-based compensation | 30,480 | 0 | 0 | 0 | 0 | 30,480 | 0 | 0 | |
Net loss | (1,233,996) | 0 | 0 | $ 0 | 0 | (1,217,346) | (16,650) | ||
Common stock issued in connection with conversion of promissory notes and accounts payable, shares | 684,673 | ||||||||
Common stock issued in connection with conversion of promissory notes and accounts payable, amount | 809,284 | $ 0 | $ 0 | $ 685 | 0 | 808,599 | 0 | 0 | |
Balance, shares at Jun. 30, 2024 | 80,000 | 160,000 | 9,783,074 | ||||||
Balance, amount at Jun. 30, 2024 | $ (11,147,596) | $ 16,000 | $ 5,616 | $ 9,783 | $ 100,000 | $ 69,424,316 | $ (80,557,140) | $ (146,171) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (2,471,459) | $ (1,934,133) |
Adjustments to reconcile net loss to cash flows used in operating activities: | ||
Depreciation and amortization | 13,427 | 13,379 |
Amortization of discount on royalty obligation | 237,108 | 233,888 |
Amortization of debt discount | 421,925 | 33,262 |
Impairment of intellectual property | 0 | 47,980 |
Amortization of right-of-use asset | 43,242 | 61,259 |
Loss on settlement of debt | 0 | 34,338 |
Other income | (32,405) | 0 |
Stock based compensation | 343,334 | 157,462 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 740 | 22,725 |
Grant receivable | (33,470) | 37,726 |
Prepaid expenses | (9,018) | (44,545) |
Accounts payable and accrued expenses | 1,043,732 | 450,488 |
Deposits | 2,584 | 0 |
Lease liability | (47,236) | (65,380) |
Deferred revenue | (4,045) | (17,347) |
Net cash used in operating activities | (491,541) | (968,898) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from common stock subscription and royalty agreement | 0 | 900,000 |
Payment to Economic Injury Disaster loan | (712) | (686) |
Payment of notes payable - related party | 0 | (35,000) |
Proceeds from notes payable | 200,000 | 50,000 |
Proceeds from notes payable - related party | 235,396 | 183,273 |
Net cash provided by financing activities | 434,684 | 1,097,587 |
Net increase (decrease) in cash | (56,857) | 128,689 |
Cash, beginning of period | 65,222 | 68,615 |
Cash, end of period | 8,365 | 197,304 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 9,279 | 0 |
Taxes paid | 0 | 0 |
Warrants issued in connection with issuance of promissory notes | 83,552 | 0 |
Derivative liability recognized in connection with issuance of promissory notes | 26,730 | 0 |
Common stock issued in connection with conversion of promissory notes and accounts payable | 809,284 | 361,892 |
Common stock issued in connection with subscription agreement | 9 | 0 |
Record right to use assets per ASC 842 | (225,663) | 0 |
Record lease liability per ASC 842 | 225,663 | 0 |
Common stock issued in connection with issuance of promissory notes | $ 40,217 | $ 6,000 |
BUSINESS
BUSINESS | 6 Months Ended |
Jun. 30, 2024 | |
BUSINESS | |
BUSINESS | NOTE 1 - BUSINESS BioCorRx Inc., through its subsidiaries, develops and provides addiction treatment solutions offering a unique approach to the treatment of substance use and other related disorders. The Company also controls BioCorRx Pharmaceuticals Inc., a clinical-stage drug development subsidiary currently seeking FDA approval for BICX104, an implantable naltrexone pellet for the treatment of alcohol and opioid use disorders. BICX102 is an implantable pellet of naltrexone that was the original product candidate being developed under NIDA award number UG3DA047925 (awarded in 2019 and 2020) and BICX104 is another pellet of naltrexone that subsequently became the lead product candidate with minor excipient differences between the BICX102 and BICX104. On October 31, 2020, the Company entered into a written management services agreement with Joseph DeSanto MD, Inc. (“Medical Corporation”) under which the Company provides management and other administrative services to the Medical Corporation. These services include billing, collection of accounts receivable, accounting, management and human resource functions. Pursuant to the management services agreement, a management fee equal to 65% of the Medical Corporation’s gross collected monthly revenue. Through this arrangement, the Company is directing the activities that most significantly impact the financial results of the respective Medical Corporation; however, all clinical treatment decisions are made solely by licensed healthcare professionals. The Company has determined that it is the primary beneficiary, and, therefore, has consolidated the Medical Corporation as variable interest entity (“VIE”). The medical corporation: (i) had not yet generated any revenues and (ii) had no significant assets or liabilities since inception through June 30, 2024. On July 28, 2016, BioCorRx Inc. formed BioCorRx Pharmaceuticals, Inc., a Nevada Corporation, for the purpose of developing certain business lines. In connection with the formation, the sub issued 24.2% ownership to officers of BioCorRx Inc. with the Company retaining 75.8%. In 2018, BioCorRx Pharmaceuticals, Inc. began operating activities (Note 17). |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2024 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES Interim Financial Statements The following (a) condensed consolidated balance sheet as of December 31, 2023, which has been derived from audited financial statements, and (b) the unaudited condensed consolidated interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of results that may be expected for the year ending December 31, 2024. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on April 1, 2024. Basis of presentation The consolidated financial statements include the accounts of: (i) BioCorRx Inc. and its wholly owned subsidiary, Fresh Start Private, Inc., (ii) its majority owned subsidiary, BioCorRx Pharmaceuticals, Inc., and (iii) and the Medical Corporation (“VIE”) (Collectively, “the Company”) under which the Company provides management and other administrative services pursuant to the management services agreement in which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation. Revenue Recognition The Company recognizes revenue in accordance with Financial Accounting Standards Board “FASB” Accounting Standards Codification “ASC” 606. A five-step analysis a must be met as outlined in Topic 606: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations, and (v) recognize revenue when (or as) performance obligations are satisfied. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. The Company has elected the following practical expedients in applying ASC 606: · Unsatisfied Performance Obligations - all performance obligations relate to contracts with a duration of less than one year. The Company has elected to apply the optional exemption provided in ASC 606 and therefore, is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. · Contract Costs - all incremental customer contract acquisition costs are expensed as they are incurred as the amortization period of the asset that the Company otherwise would have recognized is one year or less in duration. · Significant Financing Component - the Company does not adjust the promised amount of consideration for the effects of a significant financing component as the Company expects, at contract inception, that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. · Sales Tax Exclusion from the Transaction Price - the Company excludes from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from the customer. · Shipping and Handling Activities - the Company elected to account for shipping and handling activities as a fulfillment cost rather than as a separate performance obligation. The Company’s net sales are disaggregated by product category. The sales/access fees consist of product sales, which is recognized upon the transfer of promised goods to customers. The project support income is generated from administrative support to Biotechnology research customers, which is recognized upon the transfer of promised services to customers. The distribution rights income consists of the income recognized from the amortization of distribution agreements entered into for its products. The membership/program fees are generated from the Company’s UnCraveRx™ Weight Loss Management Program, which is recognized upon the transfer of promised goods to customers. The following table presents the Company’s net sales by product category for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, 2024 2023 Sales/access fees $ - $ 9,245 Distribution rights income 4,045 8,721 Membership/program fees - 1,669 Net sales $ 4,045 $ 19,635 Six Months Ended June 30, 2024 2023 Sales/access fees $ 2,205 $ 10,255 Project support income - 25,817 Distribution rights income 4,045 17,347 Membership/program fees 1,415 6,658 Net sales $ 7,665 $ 60,077 Deferred revenue The Company licenses proprietary products and protocols to customers under licensing agreements that allow those customers to access the products and protocols in services they provide to their customers during the term of the license agreement. The timing and amount of revenue recognized from license agreements depends upon a variety of factors, including the specific terms of each agreement. Such agreements are reviewed for multiple performance obligations. Performance obligations can include amounts related to initial non-refundable license fees for the use of the Company’s products and protocols and additional royalties on covered services. The Company granted license and sub-license agreements for various regions or States in the United States allowing the licensee to market, distributes and sell solely in the defined license territory, as defined, the products provided by the Company. The agreements are granted for a defined period or perpetual and are effective as long as annual milestones are achieved. Terms for payments for licensee agreements vary from full cash payment to defined terms. In cases where license or sub-license fees are uncollected and deferred; the Company nets those uncollected fees with the deferred revenue for balance sheet presentation. The Company amortizes license fees over the shorter of the economic life of the related contract life or contract terms for each licensee. On October 1, 2019, the Company launched the UnCraveRx™ Weight Loss Management Program. Customers are charged a membership fee and are requested to pay for three training programs at inception. The payments are recorded as deferred revenue until earned. The following table presents the changes in deferred revenue, reflected as current and long term liabilities on the Company’s unaudited condensed consolidated balance sheet: Balance as of December 31, 2023 Short term $ - Long term 4,045 Total as of December 31, 2023 4,045 Net sales recognized (4,045 ) Balance as of June 30, 2024 $ - Deferred Revenue-Grant The Company recognizes grant revenues in the period during which the related research and development costs are incurred. The timing and amount of revenue recognized from reimbursement for research and development costs depends upon the specific terms for the contracted work. Such costs are reviewed for multiple performance obligations which can include amounts related to contracted work performed or as milestones have been achieved. Use of Estimates The preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent 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. Significant estimates include assumptions used in the fair value of other equity and debt instruments, income taxes, loss contingencies, and research and development costs. Accounts Receivable Accounts receivable are recorded at original invoice amount less an allowance for uncollectible accounts that management believes will be adequate to absorb estimated losses on existing balances. Management estimates the allowance based on collectability of accounts receivable and prior bad debt experience. Accounts receivable balances are written off against the allowance upon management’s determination that such accounts are uncollectible. Recoveries of accounts receivable previously written off are recorded when received. The allowance for doubtful accounts was $0 as of June 30, 2024 and December 31, 2023. Financial Accounting Standards Board (“FSAB”) Accounting Standards Codification (“ASC”) 326-20-30-2, Financial Instruments – Credit Losses Trade receivables with certain customers are financial assets analyzed by the Company under the expected credit loss model. To measure expected credit losses, trade receivables are grouped based on shared risk characteristics (i.e., the relevant healthcare industry) and days past due (i.e., delinquency status), while considering the following if applicable: · Customers in relevant healthcare industries share similar risk characteristics associated with the macroeconomic environment of their industry. · The expected credit loss rate is likely to increase as receivables move to older aging buckets. The Company used the following aging categories to estimate the risk of delinquency status: (i) 0 days past due; (ii) 1-30 days past due; (iii) 31-60 days past due; (iv) 61-90 days past due; and (v) over 90 days past due. Fair Value of Financial Instruments The Company calculates the fair value of its assets and liabilities which qualify as financial instruments and includes this additional information in the notes to the consolidated financial statements when the fair value is different than the carrying value of these financial instruments. The estimated fair value of cash, accounts receivable, grant receivable, accounts payable and accrued expenses, and notes payable approximate their carrying amounts due to the relatively short maturity of these instruments. The carrying value of lease liability and royalty obligation also approximates fair value since these instruments bear market rates of interest. None of these instruments are held for trading purposes. See Note 13 and 14 for stock based compensation and other equity instruments. Fair Value Measurements The Company follows the guidance in ASC 820 for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period. The Company also follows ASC 820 for non-financial assets and liabilities that are re-measured and reported at fair value at least annually. The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or that the Company would have paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used to value the assets and liabilities: Level 1: Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2: Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active. Level 3: Unobservable inputs based on the Company’s assessment of the assumptions that market participants would use in pricing the asset or liability. Derivative Financial Instruments The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480 and ASC 815, “Derivatives and Hedging” (“ASC 815”). The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. The fair value of the event of default penalty put option in connection with the issuance of promissory notes was recognized as a derivative liability and debt discount on the unaudited condensed consolidated balance sheet as of June 30, 2024 and December 31, 2023. The following table provides information related to the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023: June 30, 2024 Level 1 Level 2 Level 3 Total Liabilities: Derivative liability $ - $ - $ 80,190 $ 80,190 $ - $ - $ 80,190 $ 80,190 December 31, 2023 Level 1 Level 2 Level 3 Total Liabilities: Derivative liability $ - $ - $ 53,460 $ 53,460 $ - $ - $ 53,460 $ 53,460 Activity for the three and six months ended June 30, 2024 for the derivative liability was as follows: Derivative Liability Fair value as of December 31, 2023 $ 53,460 Fair value at issuance 26,730 Fair value as of March 31, 2024 80,190 Fair value as of June 30, 2024 $ 80,190 Segment Information Accounting Standards Codification subtopic Segment Reporting 280-10 (“ASC 280-10”) establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information for those segments to be presented in interim financial reports issued to stockholders. ASC 280-10 also establishes standards for related disclosures about products and services and geographic areas. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision-making group, in making decisions how to allocate resources and assess performance. The information disclosed herein materially represents all of the financial information related to the Company’s principal operating segment. Long-Lived Assets The Company follows a “primary asset” approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used. Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of the assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. No impairments were recognized for the three and six months ended June 30, 2024 and 2023. Intangible Assets Intangible assets with finite lives are amortized over their estimated useful lives. Intangible assets with indefinite lives are not amortized, but are tested for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. No impairment was recognized for the three and six months ended June 30, 2024 and 2023. Software Development Costs The Company has adopted the provision of ASC 985-20-25, Costs of Software to Be Sold, Leased or Marketed, whereby costs incurred to establish the technological feasibility of a computer software product to be sold, leased or marketed are research and development costs. Research costs are expensed as incurred; costs of producing product masters incurred subsequent to establishing technological feasibility are capitalized; and costs incurred when the product is available for general release to the customers are expensed as incurred. Upgrades and enhancements are capitalized if they result in added functionality which enables the software to perform tasks it was previously incapable of performing. On July 1, 2021, the Company began development of a proprietary cloud based app that will be marketed and commercialized, for which $47,980 of costs have been capitalized. During the six months ended June 30, 2023, the Company wrote off the $47,980 as impairment loss. Property and Equipment Property and equipment are stated at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the asset’s estimated useful life of 5 to 15 years. Expenditures for maintenance and repairs are expensed as incurred. When retired or otherwise disposed, the related carrying value and accumulated depreciation are removed from the respective accounts and the net difference less any amount realized from disposition is reflected in earnings. Leases The Company determines if an arrangement is a lease at inception. Operating lease right-of-use assets (“ROU assets”) and short-term and long-term lease liabilities are included on the face of the consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date over the respective lease term in determining the present value of lease payments. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for as a single lease component. For lease agreements with terms less than 12 months, the Company has elected the short-term lease measurement and recognition exemption, and it recognizes such lease payments on a straight-line basis over the lease term. Net (loss) Per Share The Company accounts for net loss per share in accordance with Accounting Standards Codification subtopic 260-10, Earnings Per Share (“ASC 260-10”), which requires presentation of basic and diluted earnings per share (“EPS”) on the face of the statement of operations for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS. Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during each period. It excludes the dilutive effects of any potentially issuable common shares. The effect of common stock equivalents is anti-dilutive with respect to losses and therefore basic and dilutive is the same. Diluted net loss per share is calculated by including any potentially dilutive share issuances in the denominator. The following securities are excluded from the calculation of weighted average diluted shares at June 30, 2024 and 2023, respectively, because their inclusion would have been anti-dilutive. Six Months Ended June 30, 2024 2023 Shares underlying options outstanding 995,187 882,869 Shares underlying warrants outstanding 1,765,856 850,856 Convertible preferred stock outstanding 240,000 240,000 3,001,043 1,973,725 Advertising The Company follows the policy of charging the costs of advertising to expense as incurred. The Company charged to operations $11,590 and $33,638 as advertising costs for the three months ended June 30, 2024 and 2023, respectively. The Company charged to operations $24,208 and $62,786 as advertising costs for the six months ended June 30, 2024 and 2023, respectively. Grant Income On January 17, 2019, the Company received a Notice of Award from the United States Department of Health and Human Services for a grant from the National Institutes of Health (“NIH”) in support of BICX102/BICX104 from the National Institute on Drug Abuse. BICX102 is an implantable pellet of naltrexone that was the original product candidate and BICX104 is another pellet of naltrexone that subsequently became the lead product candidate with minor excipient differences between the BICX102 and BICX104. The grant provides for (i) $2,842,430 in funding during the first year and (ii) $2,831,838 during the second year subject to the terms and conditions specified in the grant, including satisfactory progress of project and the availability of funds. On August 27, 2021, the Company received a Notice of Award from the United States Department of Health and Human Services for a grant from National Institute on Drug Abuse in support of BICX104. The grant provides for $3,453,367 in funding during the third year subject to the terms and conditions specified in the grant, including satisfactory progress of project and the availability of funds. On March 31, 2022, the Company received a Notice of Award from the United States Department of Health and Human Services for a grant from National Institute on Drug Abuse. The grant provides for $99,431 in additional funding during the third year subject to the terms and conditions specified in the grant, including satisfactory progress of project and the availability of funds. Grant payments received prior to the Company’s performance of work required by the terms of the research grant are recorded as deferred income and recognized as grant income once work is performed and qualifying costs are incurred. On March 1, 2024, the Company’s subsidiary BioCorRx Pharmaceuticals Inc. was awarded a grant of $11,029,977 from the National Institutes of Health’s National Institute on Drug Abuse, ("NIDA"). The grant provides the Company with additional resources for the ongoing research of BICX104, a sustained release naltrexone implant for the treatment of methamphetamine use disorder. The grant provides for (i) $4,131,123 in funding during the first year, (ii) $3,638,268 during the second-year, and (iii) $3,260,586 during the third-year subject to the terms and conditions specified in the grant, including satisfactory progress of project and the availability of funds. Government grants are agreements that generally provide cost reimbursement for certain types of expenditures in return for research and development activities over a contractually defined period. Grant receivables were $109,736 and $76,266 as of June 30, 2024 and December 31, 2023, respectively. Deferred revenues related to the grant were $0 as of June 30, 2024 and December 31, 2023. $518,667 and $248,006 were recorded as grant income for the three months ended June 30, 2024 and 2023, respectively. $631,630 and $489,155 were recorded as grant income for the six months ended June 30, 2024 and 2023, respectively. The F&A indirect costs were $0 as of June 30, 2024 and December 31, 2023. The grant provides for $516,218 in funding for F&A indirect costs. Research and development costs The Company accounts for research and development costs in accordance with the Accounting Standards Codification subtopic 730-10, Research and Development (“ASC 730-10”). Under ASC 730-10, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and developments costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. The Company incurred research and development expenses of $536,362 and $238,419 for the three months ended June 30, 2024 and 2023, respectively. The Company incurred research and development expenses of $750,196 and $475,806 for the six months ended June 30, 2024 and 2023, respectively. Stock Based Compensation Share-based compensation issued to employees is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the requisite service period. The Company measures the fair value of the share-based compensation issued to non-employees at the grant date using the stock price observed in the trading market (for stock transactions) or the fair value of the award (for non-stock transactions), which were considered to be more reliably determinable measures of fair value than the value of the services being rendered. Income Taxes Deferred income tax assets and liabilities are determined based on the estimated future tax effects of net operating loss and credit carry forwards and temporary differences between the tax basis of assets and liabilities and their respective financial reporting amounts measured at the current enacted tax rates. The Company records an estimated valuation allowance on its deferred income tax assets if it is more likely than not that these deferred income tax assets will not be realized. The Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. As of June 30, 2024 and December 31, 2023, the Company has not recorded any unrecognized tax benefits. Variable Interest Entity The Company evaluates all interests in the VIE for consolidation. When the Company’s interests are determined to be variable interests, an assessment is made on whether the Company is deemed to be the primary beneficiary of the VIE. The primary beneficiary of a VIE is required to consolidate the VIE. Accounting Standards Codification (“ASC”) 810, Consolidation, defines the primary beneficiary as the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the VIE which could be potentially significant. Variable interests are considered in making this determination. Where both of these factors are present, the Company is deemed to be the primary beneficiary and the Company consolidates the VIE. Non-Controlling Interest A non-controlling interest should be allocated its share of net income or loss, and its respective share of each component of other comprehensive income, in accordance with ASC 810-10-45-20. Due to a management fee equal to 65% of the Medical Corporation’s gross collected monthly revenue, 65% of the Medical Corporation’s earnings was allocated to the Company, and 35% to the non-controlling interest. Due to the Company’s retaining 75.8% ownership of BioCorRx Pharmaceuticals, Inc., 75.8% of BioCorRx Pharmaceuticals, Inc.’s earnings was allocated to the Company, and 24.2% to the non-controlling interest. See accounting policy “ Variable Interest Entity Royalty Obligations, net The Company accounted for royalty obligations as debt in accordance with ASC 470-10-25 and derived a debt discount, which is amortized using the straight line method over the expected life of the arrangement, which is 15 years. The Company has no obligation to repay the then outstanding balance if during the expected life of 15 years the treatment is discontinued. In order to record the discount of the liability, the Company fair valued the royalty and the difference between fair value of the royalty obligation and the gross projected future payments was $7,171,200 and was recorded as non-cash interest expense over the life of the liability and offset to additional paid in capital at inception. Recent Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which requires disclosure of incremental income tax information within the rate reconciliation and expanded disclosures of income taxes paid, among other disclosure requirements. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company’s management does not believe the adoption of ASU 2023-09 will have a material impact on its financial statements and disclosures. There are other various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company’s financial position, results of operations or cash flows. |
GOING CONCERN AND MANAGEMENTS L
GOING CONCERN AND MANAGEMENTS LIQUIDITY PLANS | 6 Months Ended |
Jun. 30, 2024 | |
GOING CONCERN AND MANAGEMENTS LIQUIDITY PLANS | |
GOING CONCERN AND MANAGEMENT'S LIQUIDITY PLANS | NOTE 3 - GOING CONCERN AND MANAGEMENT’S LIQUIDITY PLANS As of June 30, 2024, the Company had cash of $8,365 and working capital deficit of $7,142,958. During the six months ended June 30, 2024, the Company used net cash in operating activities of $491,541. The Company has not yet generated any significant revenues and has incurred net losses since inception. These conditions raise substantial doubt about the Company’s ability to continue as a going concern for the next twelve-month period since the date of the financial statements were issued. The Company’s primary source of operating funds since inception has been from proceeds from private placements of convertible and other debt and the sale of common stock. The Company intends to raise additional capital through private placements of debt and equity securities, but there can be no assurance that these funds will be available on terms acceptable to the Company, or will be sufficient to enable the Company to fully complete its development activities or sustain operations. If the Company is unable to raise sufficient additional funds, it will have to develop and implement a plan to further extend payables, reduce overhead, or scale back its current business plan until sufficient additional capital is raised to support further operations. There can be no assurance that such a plan will be successful. On March 1, 2024, the Company’s subsidiary BioCorRx Pharmaceuticals Inc. was awarded a grant of $11,029,977 from the National Institutes of Health’s National Institute on Drug Abuse, ("NIDA"). The grant provides the Company with additional resources for the ongoing research of BICX104, a sustained release naltrexone implant for the treatment of methamphetamine use disorder. The grant provides for (i) $4,131,123 in funding during the first year, (ii) $3,638,268 during the second-year, and (iii) $3,260,586 during the third-year subject to the terms and conditions specified in the grant, including satisfactory progress of project and the availability of funds. Government grants are agreements that generally provide cost reimbursement for certain types of expenditures in return for research and development activities over a contractually defined period. During the six months ended June 30, 2024, the Company issued several promissory notes to related parties and received total proceeds of $235,396. The promissory notes bear no interest and are due on demand. During the six months ended June 30, 2024, the Company issued one promissory note to a third party and received total proceeds of $200,000. The promissory note has a stated interest rate of 8% per annum and is due within 9 months. On March 8, 2024, the Company entered into an amendment agreement to a promissory note, which was originally issued to a third party on November 10, 2023. In accordance with the amendment, the parties agreed to modify the amortization payments of the unsecured promissory note. In exchange for the modification, the Company issued 15,000 shares of restricted stock to the debt holder at $1.00 per share for a total value of $15,000. On March 25, 2024, the Company entered into an amendment agreement to a promissory note, which was originally issued to a third party on December 8, 2023. In accordance with the amendment, the parties agreed to modify the amortization payments of the unsecured promissory note. In exchange for the modification, the Company issued 15,000 shares of restricted stock to the debt holder at $0.89 per share for a total value of $13,350. On April 24, 2024, the Company entered into an Exchange Agreement (the “Louis 2024 Exchange Agreement”) with Mr. Lucido, pursuant to which Mr. Lucido agreed to exchange of the promissory note then outstanding of $446,426 and the accrued interest on the promissory note of $7,858 and director fees of $90,000 into the Company’s 460,477 shares of common stock at $1.18 per share. On April 24, 2024, the Company entered into an Exchange Agreement (the “Lourdes 2024 Exchange Agreement”) with Lourdes Felix, the Company’s Chief Executive Officer and Chief Financial Officer, pursuant to which Lourdes Felix agreed to exchange of the director fees of $265,000 into the Company’s 224,196 shares of common stock at $1.18 per share. Accordingly, the accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which contemplate continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent realizable or settlement values. The consolidated financial statements do not include any adjustment that might result from the outcome of this uncertainty. |
PREPAID EXPENSES
PREPAID EXPENSES | 6 Months Ended |
Jun. 30, 2024 | |
PREPAID EXPENSES | |
PREPAID EXPENSES | NOTE 4 - PREPAID EXPENSES The Company’s prepaid expenses consisted of the following at June 30, 2024 and December 31, 2023: June 30, December 31, 2024 2023 Prepaid insurance $ 41,820 $ 18,511 Prepaid subscription services 12,089 26,380 $ 53,909 $ 44,891 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2024 | |
PROPERTY AND EQUIPMENT | |
PROPERTY AND EQUIPMENT | NOTE 5 - PROPERTY AND EQUIPMENT The Company’s property and equipment consisted of the following at June 30, 2024 and December 31, 2023: June 30, December 31, 2024 2023 Office equipment $ 45,519 $ 45,519 Computer equipment 5,544 5,544 Manufacturing equipment 101,200 101,200 Leasehold improvement 42,288 42,288 194,551 194,551 Less accumulated depreciation (156,446 ) (143,608 ) $ 38,105 $ 50,943 Depreciation expense charged to operations amounted to $6,419 and $6,420, respectively, for the three months ended June 30, 2024 and 2023. Depreciation expense charged to operations amounted to $12,838 and $12,790, respectively, for the six months ended June 30, 2024 and 2023. |
LEASE
LEASE | 6 Months Ended |
Jun. 30, 2024 | |
LEASE | |
LEASE | NOTE 6 - LEASE Operating leases Prior to 2020, the Company entered into several lease amendments with landlord whereby the Company agreed to lease office space in Anaheim, California. The term expires on January 31, 2025. The lease has escalating payments from $9,905 per month to $11,018 per month. The Company recorded an aggregate value of right to use assets and lease liability of $500,333. On April 9, 2024, the Company and its landlord agreed that the Company would move to a larger space within the building that currently houses its principal executive offices. The Company extended the term of its lease for an additional 60 months beginning approximately May 1, 2024 (upon the landlord's completion of the work on the new space). The extended term expires on April 30, 2029. The extended lease has payments of $4,545 per month. The Company recorded right to use assets and lease liability of $225,663. During the six months ended June 30, 2024, the Company recognized other income of $32,405. Lease liability is summarized below: June 30, December 31, 2024 2023 Total lease liability $ 218,046 $ 133,677 Less: short term portion 38,491 122,732 Long term portion $ 179,555 $ 10,945 Maturity analysis under these lease agreements are as follows: Total 2024 $ 27,272 2025 54,544 2026 54,544 2027 54,544 2028 54,544 2029 and beyond 18,181 Subtotal 263,629 Less: Present value discount (45,583 ) Lease liability $ 218,046 Lease expense for the three and six months ended June 30, 2024 and 2023 was comprised of the following: Three Months Ended June 30, 2024 2023 Operating lease expense $ 18,339 $ 36,402 $ 18,339 $ 36,402 Six Months Ended June 30, 2024 2023 Operating lease expense $ 47,436 $ 72,804 $ 47,436 $ 72,804 During the six months ended June 30, 2024 and 2023, the Company paid $51,430 and $76,926 lease expense in cash, respectively. Weighted-average remaining lease term and discount rate for operating leases are as follows: June 30, December 31, 2024 2023 Weighted-average remaining lease term 4.8 1.0 |
INTELLECTUAL PROPERTY LICENSING
INTELLECTUAL PROPERTY LICENSING RIGHTS | 6 Months Ended |
Jun. 30, 2024 | |
INTELLECTUAL PROPERTY LICENSING RIGHTS | |
INTELLECTUAL PROPERTY/ LICENSING RIGHTS | NOTE 7 - INTELLECTUAL PROPERTY/ LICENSING RIGHTS On October 12, 2018 the Company’s majority owned subsidiary, BioCorRx Pharmaceuticals Inc. acquired six patent families for sustained delivery platforms for the local delivery of biologic and small molecule drugs for an aggregate purchase price of $15,200. Amortization is computed on straight-line method based on estimated useful lives of 13 years. During the three months ended June 30, 2024 and 2023, the Company recorded amortization expense of $295 and $294, respectively. During the six months ended June 30, 2024 and 2023, the Company recorded amortization expense of $589. As of June 30, 2024, the accumulated amortization of these patents was $6,762. The future amortization of the patents are as follows: Year Amount 2024 580 2025 1,169 2026 1,169 2027 1,169 2028 and after 4,351 $ 8,438 |
ACCOUNTS PAYABLE AND ACCRUED EX
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 6 Months Ended |
Jun. 30, 2024 | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | NOTE 8 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consisted of the following as of June 30, 2024 and December 31, 2023: June 30, December 31, 2024 2023 Accounts payable $ 2,830,043 $ 2,473,457 Interest payable on notes payable 1,341,351 1,268,264 Interest payable on notes payable, related parties 547,036 478,920 Deferred insurance 36,734 - Accrual of loss on contingency 394,550 322,000 Interest payable on EIDL loan 5,598 5,675 Payroll payables 17,324 - Accrued stock-based compensation - 43,321 Accrued expenses 157,417 57,542 $ 5,330,053 $ 4,649,179 |
NOTES PAYABLE
NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2024 | |
NOTES PAYABLE | |
NOTES PAYABLE | NOTE 9 - NOTES PAYABLE As of June 30, 2024 and December 31, 2023, the Company had an advance from a third party. The advance bears no interest and is due on demand. The balance outstanding as of June 30, 2024 and December 31, 2023 is $21,480. On September 9, 2021, the Company issued an unsecured promissory note payable to one third party for $200,000 with principal and interest due June 8, 2022, with a stated interest rate of 25% per annum. The balance outstanding as of June 30, 2024 and December 31, 2023 is $200,000. The interest expense during the three months ended June 30, 2024 and 2023 were $12,466. The interest expense during the six months ended June 30, 2024 and 2023 were $24,932 and $24,795, respectively. On October 6, 2022, the Company issued an unsecured promissory note payable to a third party for $100,000 with principal and interest due October 6, 2023, with a stated interest rate of 12.5% per annum. The interest rate was increased to 25% on October 7, 2023 due to default. Under the terms of the note the Company shall pay quarterly interest payments of $3,125. The balance outstanding as of June 30, 2024 and December 31, 2023 was $100,000. The interest expense during the three months ended June 30, 2024 and 2023 was $6,233 and $3,117, respectively. The interest expense during the six months ended June 30, 2024 and 2023 was $12,466 and $6,199, respectively. The Company made an interest payment of $6,250 during the six months ended June 30, 2024 and 2023. As additional consideration for the loan the Company issued 16,500 shares of common stock and valued at $31,350, which was recognized as debt discount. During the three months ended June 30, 2024 and 2023, the Company amortized $0 and $7,816 of debt discount as interest expense. During the six months ended June 30, 2024 and 2023, the Company amortized $0 and $15,546 of debt discount as interest expense. On January 25, 2023, the Company issued an unsecured promissory note payable to a third party for $50,000 with principal and interest due January 25, 2024, with a stated interest rate of 12.5% per annum. The interest rate was increased to 20% on January 26, 2024 due to default. Under the terms of the note the Company shall pay quarterly interest payments of $1,563. The balance outstanding as of June 30, 2024 and December 31, 2023 was $50,000. The interest expense during the three months ended June 30, 2024 and 2023 was $2,493 and $1,558, respectively. The interest expense during the six months ended June 30, 2024 and 2023 was $4,729 and $2,688, respectively. The Company made an interest payment of $1,563 during the six months ended June 30, 2024 and 2023. As additional consideration for the loan the Company issued 4,285 shares of common stock and valued at $6,000, which was recognized as debt discount. During the three months ended June 30, 2024 and 2023, the Company amortized $0 and $1,495 of debt discount as interest expense, respectively. During the six months ended June 30, 2024 and 2023, the Company amortized $395 and $2,580 of debt discount as interest expense, respectively. On September 6, 2023, the Company issued an unsecured promissory note payable to one third party for $150,000 with principal and interest due September 6, 2024, with a stated interest rate of 8% per annum. The third party has the option to select the repayment in cash or in stock of the Company at $2.00 per share. The balance outstanding as of June 30, 2024 and December 31, 2023 was $150,000. The interest expense during the three months ended June 30, 2024 was $2,992. The interest expense during the six months ended June 30, 2024 was $5,984. If the Company fails to make any payment due under the terms of the promissory note, the interest rate shall increase to 15% per annum. In connection with the issuance of the promissory note, the Company issued the warrant that entitles the third party to purchase 150,000 common shares. The warrant shall have a term of three years with an exercise price of $2.00 and shall be equitably adjusted to offset the effect of any stock splits and similar events. The Company allocated the proceeds based on the relative fair value of the debt and the warrants, resulting in the recognition of $88,820 of debt discount on such promissory note. As additional consideration for the debt, the Company issued 18,000 shares of common stock valued at $30,240, which was also recognized as debt discount. During the three months ended June 30, 2024, the Company amortized $29,683 of debt discount as interest expense. During the six months ended June 30, 2024, the Company amortized $59,367 of debt discount as interest expense. On November 10, 2023, the Company issued an unsecured promissory note payable to a third party with principal and interest due August 10, 2024, with a stated interest rate of 8% per annum. The cash proceeds of the promissory note was $200,000, and the principal amount of the promissory note was $220,000. Upon the occurrence of any event of default that has not been cured within 30 calendar days from the date of the event of default, the outstanding balance shall immediately increase to 125% of the outstanding balance immediately prior to the occurrence of the event of default. The fair value of the event of default penalty put option, which was $26,730, was recognized as a derivative liability and debt discount on the consolidated balance sheet at issuance date. The balance outstanding as of June 30, 2024 and December 31, 2023 was $220,000. The interest expense during the three months ended June 30, 2024 was $6,365. The interest expense during the six months ended June 30, 2024 was $10,753. In connection with the issuance of the promissory note, the Company issued the warrant that entitles the third party to purchase 200,000 common shares. The warrant shall have a term of four years with an exercise price of $2.00 and shall be equitably adjusted to offset the effect of any stock splits and similar events. As additional consideration for the debt, the Company issued 24,000 shares of common stock valued at $36,480. The Company allocated the proceeds based on the relative fair value of the debt, the warrants and the stock, resulting in the recognition of $140,355 of debt discount on such promissory note. On March 8, 2024, the Company entered into an amendment agreement to such promissory note. In accordance with the amendment, the parties agreed to modify the amortization payments of the unsecured promissory note. In exchange for the modification, the Company issued 15,000 shares of restricted stock to the debt holder at $1.00 per share for a total value of $15,000, which was recognized as debt discount. During the three months ended June 30, 2024, the Company amortized $64,299 of debt discount as interest expense. During the six months ended June 30, 2024, the Company amortized $122,016 of debt discount as interest expense. On December 8, 2023, the Company issued an unsecured promissory note payable to a third party with principal and interest due September 8, 2024, with a stated interest rate of 8% per annum. The cash proceeds of the promissory note was $200,000, and the principal amount of the promissory note was $220,000. Upon the occurrence of any event of default that has not been cured within 30 calendar days from the date of the event of default, the outstanding balance shall immediately increase to 125% of the outstanding balance immediately prior to the occurrence of the event of default. The fair value of the event of default penalty put option, which was $26,730, was recognized as a derivative liability and debt discount on the consolidated balance sheet at issuance date. The balance outstanding as of June 30, 2024 and December 31, 2023 was $220,000. The interest expense during the three months ended June 30, 2024 was $4,388. The interest expense during the six months ended June 30, 2024 was $8,776. In connection with the issuance of the promissory note, the Company issued the warrant that entitles the third party to purchase 200,000 common shares. The warrant shall have a term of four years with an exercise price of $2.00 and shall be equitably adjusted to offset the effect of any stock splits and similar events. As additional consideration for the debt, the Company issued 24,000 shares of common stock valued at $27,120. The Company allocated the proceeds based on the relative fair value of the debt, the warrants and the stock, resulting in the recognition of $123,270 of debt discount on such promissory note. On March 25, 2024, the Company entered into an amendment agreement to such promissory note. In accordance with the amendment, the parties agreed to modify the amortization payments of the unsecured promissory note. In exchange for the modification, the Company issued 15,000 shares of restricted stock to the debt holder at $0.89 per share for a total value of $13,350, which was recognized as debt discount. During the three months ended June 30, 2024, the Company amortized $56,910 of debt discount as interest expense. During the six months ended June 30, 2024, the Company amortized $107,026 of debt discount as interest expense. On March 14, 2024, the Company issued an unsecured promissory note payable to a third party with principal and interest due December 14, 2024, with a stated interest rate of 8% per annum. The cash proceeds of the promissory note was $200,000, and the principal amount of the promissory note was $220,000. Upon the occurrence of any event of default that has not been cured within 30 calendar days from the date of the event of default, the outstanding balance shall immediately increase to 125% of the outstanding balance immediately prior to the occurrence of the event of default. The fair value of the event of default penalty put option, which was $26,730, was recognized as a derivative liability and debt discount on the consolidated balance sheet at issuance date. The balance outstanding as of June 30, 2024 was $220,000. The interest expense during the three months ended June 30, 2024 was $12,440. The interest expense during the six months ended June 30, 2024 was $13,260. In connection with the issuance of the promissory note, the Company issued the warrant that entitles the third party to purchase 200,000 common shares. The warrant shall have a term of four years with an exercise price of $2.00 and shall be equitably adjusted to offset the effect of any stock splits and similar events. As additional consideration for the debt, the Company issued 24,000 shares of common stock valued at $22,080. The Company allocated the proceeds based on the relative fair value of the debt, the warrants and the stock, resulting in the recognition of $115,419 of debt discount on such promissory note. During the three months ended June 30, 2024, the Company amortized $47,039 of debt discount as interest expense. During the six months ended June 30, 2024, the Company amortized $55,826 of debt discount as interest expense. The interest expense during the three months ended June 30, 2024 and 2023 were $317,907 and $27,489, respectively. The interest expense during the six months ended June 30, 2024 and 2023 were $499,727 and $53,529, respectively. As of June 30, 2024 and December 31, 2023, the accumulated interest on notes payable was $1,341,351 and $1,268,264, respectively, and was included in accounts payable and accrued expenses on the balance sheet. The outstanding notes payables as of June 30, 2024 and December 31, 2023 were summarized as below: June 30, December 31, 2024 2023 Advances from a third party $ 21,480 $ 21,480 Promissory note payable dated September 9, 2021 200,000 200,000 Promissory note payable dated October 6, 2022 100,000 100,000 Promissory note payable dated January 25, 2023 50,000 49,605 Promissory note payable dated September 6, 2023, net of debt discount of $21,529 and $80,896, respectively 128,471 69,104 Promissory note payable dated November 10, 2023, net of debt discount of $28,969 and $135,985, respectively 191,031 84,015 Promissory note payable dated December 8, 2023, net of debt discount of $43,778 and $137,454, respectively 176,222 82,546 Promissory note payable dated March 14, 2024, net of debt discount of $86,323 and $0, respectively 133,677 - $ 1,000,881 $ 606,750 |
NOTES PAYABLE RELATED PARTIES
NOTES PAYABLE RELATED PARTIES | 6 Months Ended |
Jun. 30, 2024 | |
NOTES PAYABLE RELATED PARTIES | |
NOTES PAYABLE-RELATED PARTIES | NOTE 10 - NOTES PAYABLE-RELATED PARTIES As of June 30, 2024 and December 31, 2023, the Company had advances from Kent Emry (Chairman of the Company). The balance outstanding as of June 30, 2024 and December 31, 2023 was $1,500. On January 22, 2013, the Company issued an unsecured promissory note payable to Kent Emry (Chairman of the Board) for $200,000 due January 1, 2018, with a stated interest rate of 12% per annum beginning three months from issuance, payable monthly. Principal payments were due starting February 1, 2015 at $6,650 per month. The lender has an option to convert the note to licensing rights for the State of Oregon. The Company currently is in default of the principal and interest. The balance outstanding as of June 30, 2024 and December 31, 2023 was $163,610. On September 9, 2021, the Company issued an unsecured promissory note payable to Kent Emry for $500,000 with principal and interest due June 8, 2022, with a stated interest rate of 25% per annum. The balance outstanding as of June 30, 2024 and December 31, 2023 is $500,000. The interest expense during the three months ended June 30, 2024 and 2023 were $31,164. The interest expense during the six months ended June 30, 2024 and 2023 were $62,328 and $61,986, respectively. If the Company fails to make any payment due under the terms of the promissory note, the Company shall issue a warrant to Kent Emry to which the number of common shares that Kent Emry has the right to purchase equals 119,617 common shares. The warrant shall have a term of three years with an exercise price of $4.14 and shall be equitably adjusted to offset the effect of any stock splits and similar events. On June 8, 2022, the Company issued the warrant that entitles Kent Emry to purchase 119,617 common shares due to the loan default. The fair value of the warrant on June 8, 2022 was $214,975, which the Company recognized as interest expense - related party. Since September 2022, the Company had received an aggregate of $296,426 advances from Louis C Lucido, a member of the Company’s Board of Directors. On August 29, 2023, the Company issued an unsecured promissory note payable to Louis C Lucido for $150,000 with principal and interest due August 29, 2024, with a stated interest rate of 8% per annum. The promissory note, together with all accrued interest, shall be converted into common shares at a conversion price of $2.00 per share on or before August 29, 2024. The interest expense during the three months ended June 30, 2024 was $789. The interest expense during the six months ended June 30, 2024 was $3,781. In connection with the issuance of the promissory note, the Company issued the warrant that entitles Mr. Lucido to purchase 150,000 common shares. The warrant shall have a term of three years with an exercise price of $2.00 and shall be equitably adjusted to offset the effect of any stock splits and similar events. The Company allocated the proceeds based on the relative fair value of the debt and the warrants, resulting in the recognition of $87,724 of debt discount on such promissory note. As additional consideration for the debt, the Company issued 18,000 shares of common stock valued at $29,340, which was also recognized as debt discount. During the three months ended June 30, 2024, the Company amortized $48,110 of debt discount as interest expense. During the six months ended June 30, 2024, the Company amortized $77,295 of debt discount as interest expense. On April 24, 2024, the Company entered into an Exchange Agreement (the “Louis 2024 Exchange Agreement”) with Mr. Lucido, pursuant to which Mr. Lucido agreed to exchange of the promissory note then outstanding of $446,426 and the accrued interest on the promissory note of $7,858 and director fees of $90,000 into the Company’s 460,477 shares of common stock at a price of $1.18 per share based on the underlying market value of the common stock at the date of issuance. As of June 30, 2024 and December 31, 2023, the outstanding balance of advances from Mr. Lucido and promissory notes issued to Mr. Lucido was $0 and $275,000, respectively. On November 1, 2022, the Company issued an unsecured promissory note payable to Louis C Lucido for $300,000 with principal and interest due November 1, 2023, with a stated interest rate of 5% per annum. Under the terms of the note the Company shall pay quarterly interest payments of $3,750. On April 3, 2023, the Company entered into the Louis 2023 Exchange Agreement, pursuant to which Mr. Lucido agreed to exchange of the promissory note then outstanding of $300,000 and the accrued interest on the promissory note of $13,892 into the Company’s 183,606 shares of common stock at a price of $1.71 per share based on the underlying market value of the common stock at the date of issuance, resulting in the recognition of $34,338 of loss on settlement of debt. The balance outstanding as of June 30, 2024 and December 31, 2023 was $0. As the Company failed to make a payment due under the terms of the promissory note, the stated interest rate of the note was increased to 20% on February 1, 2023. The interest expense during the three months ended June 30, 2024 and 2023 was $0 and $7,687, respectively. The interest expense during the six months ended June 30, 2024 and 2023 was $0 and $11,386, respectively. As additional consideration for the loan the Company issued 33,000 shares of common stock and valued at $59,400, which was recognized as debt discount. During the three months ended June 30, 2024 and 2023, the Company amortized $0 and $488, respectively, of debt discount as interest expense. During the six months ended June 30, 2024 and 2023, the Company amortized $0 and $15,135, respectively, of debt discount as interest expense. As of June 30, 2024 and December 31, 2023, the Company owed $200,243 and $136,273 advances to Lourdes Felix. The interest expense – related parties during the three months ended June 30, 2024 and 2023 were $203,549 and $162,825, respectively, which includes the amortization of royalty obligations as interest expense of $118,554 (see Note 12). The interest expense – related parties during the six months ended June 30, 2024 and 2023 were $390,377 and $332,205, respectively, which includes the amortization of royalty obligations as interest expense of $237,108 and $233,888, respectively (see Note 12). As of June 30, 2024 and December 31, 2023, the accumulated interest on related parties notes payable was $547,036 and $478,920, respectively, and was included in accounts payable and accrued expenses on the balance sheet. The outstanding notes payables to related parties as of June 30, 2024 and December 31, 2023 were summarized as below: |
ECONOMIC INJURY DISASTER LOAN
ECONOMIC INJURY DISASTER LOAN | 6 Months Ended |
Jun. 30, 2024 | |
ECONOMIC INJURY DISASTER LOAN | |
ECONOMIC INJURY DISASTER LOAN | NOTE 11 - ECONOMIC INJURY DISASTER LOAN On July 17, 2020, the Company executed the standard loan documents required for securing a loan from SBA under its Economic Injury Disaster Loan assistance program in light of the impact of the COVID-19 pandemic on the Company’s business. Pursuant to the loan agreement, the principal amount of the Economic Injury Disaster Loan (“EIDL”) is $74,300, with proceeds to be used for working capital purposes. The EIDL loan is secured by the tangible and intangible personal property of the Company. In accordance with the terms of the note: (i) interest accrues at the rate of 3.75% per annum, (ii) installment payments, including principal and interest, of $363 monthly, will begin thirty (30) months from the date of the promissory note, (iii) the balance of principal and interest will be payable over thirty (30) years from the date of the promissory note and (iv) SBA is granted a continuing security interest in and to any and all tangible and intangible personal property of the Company to secure payment and performance of all debts, liabilities and obligations of Borrower to SBA. On April 28, 2020, the Company received $5,000 from the SBA as an advance on the EIDL, and the advance was forgiven during the prior period. The interest expense during the three months ended June 30, 2024 and 2023 was $695. The interest expense during the six months ended June 30, 2024 and 2023 was $1,390 and $1,382, respectively. As of June 30, 2024 and December 31, 2023, the accumulated interest on EIDL Loan was $5,598 and $5,675, respectively. During the six months ended June 30, 2024 and 2023, the Company made interest payment of $1,466 and $1,492, respectively. The future principal payments are as follows: Year Amount 2024 $ - 2025 - 2026 16 2027 1,598 2028 and after 70,140 $ 71,754 |
ROYALTY OBLIGATIONS NET
ROYALTY OBLIGATIONS NET | 6 Months Ended |
Jun. 30, 2024 | |
ROYALTY OBLIGATIONS NET | |
ROYALTY OBLIGATIONS, NET | NOTE 12 - ROYALTY OBLIGATIONS, NET In March 2019, the Company entered into two Subscription and Royalty Agreements (the “Subscription and Royalty Agreements”). One was with Louis and Carolyn Lucido CRT LLC, managed by Mr. Lucido, a member of the Company’s Board of Directors and the other one was with the J and R Galligan Revocable Trust, managed by Mr. Galligan, a holder of between 15% and 20% of the Company’s shares of common stock and a member of the Company’s Board of Directors. Pursuant to the Subscription and Royalty Agreements: (i) each party would purchase shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”), in the aggregate amount of $3,000,000 at a purchase price of $15.00 per share (the “Purchase Price”), for a total of 200,000 shares of Common Stock; and (ii) the Company shall pay each (a) a total of $37.50 from the gross revenue derived from each of its weight loss treatments sold in the United States starting on the first (1st) day that the first unit of the treatment is sold (the “Initial Sales Date”) and ending on the third (3rd) anniversary of the Initial Sales Date; and (b) a total of $25.00 from the gross revenue derived from each of its weight loss treatments sold in the United States starting on the day following the third (3rd) anniversary of the Initial Sales Date and ending on the fifteenth (15th) anniversary of the Initial Sales Date (the “Royalty”). The Company accounted for this transaction as debt in accordance with ASC 470-10-25 and derived a debt discount, which is amortized using the straight line method over the expected life of the arrangement, which is 15 years. The Company has no obligation to repay the then outstanding balance if during the expected life of 15 years the treatment is discontinued. In order to record the discount of the liability, the Company fair valued the royalty and the difference between fair value of the royalty obligation and the gross projected future payments was $7,171,200 and was recorded as non-cash interest expense over the life of the liability and offset to additional paid in capital at inception. During the three months ended June 30, 2024 and 2023, the Company amortized $118,554 as interest expense. During the six months ended June 30, 2024 and 2023, the Company amortized $237,108 and $233,888 as interest expense, respectively. |
STOCKHOLDERS EQUITY (DEFICIT)
STOCKHOLDERS EQUITY (DEFICIT) | 6 Months Ended |
Jun. 30, 2024 | |
STOCKHOLDERS EQUITY (DEFICIT) | |
STOCKHOLDERS' EQITY DEFICIT | NOTE 13 - STOCKHOLDERS’ EQUITY/(DEFICIT) Convertible Preferred stock The Company is authorized to issue 600,000 shares of preferred stock with no par value. As of June 30, 2024 and December 31, 2023 and 2022, the Company had 80,000 shares of Series A preferred stock and 160,000 shares of Series B preferred stock issued and outstanding. As of June 30, 2024 and December 31, 2023, each share of Series A preferred stock is entitled to one thousand (1,000) votes and is convertible into one share of common stock. 30,000 shares of Series A Preferred Stock are owned by management. The Series A Preferred Stock is not entitled to dividends and there are no liquidation rights associated with Series A. Each share of Series A Preferred Stock may be converted, at the option of the holder, into one (1) fully paid and nonassessable share of Common Stock, par value $0.001. As of June 30, 2024 and December 31, 2023, each share of Series B stock is entitled to two thousand (2,000) votes and is convertible into one share of common stock. 120,000 shares of Series B Preferred Stock are owned by management. The Series B Preferred Stock is not entitled to dividends and there are no liquidation rights associated with Series B. Each share of Series B Preferred Stock may be converted, at the option of the holder, into one (1) fully paid and nonassessable share of Common Stock, par value $0.001. Common stock Six months ended June 30, 2023 During the six months ended June 30, 2023, the Company issued an aggregate of 71,961 shares of its common stock for services rendered valued at $125,435 based on the underlying market value of the common stock at the date of issuance, among which 33,697 shares valued at $58,949 were issued to the board of directors for board compensation. During the six months ended June 30, 2023, the Company issued an aggregate of 342,592 shares of its common stock pursuant to the Lucido 2023 Subscription Agreement and the Galligan 2023 Subscription Agreement (as defined in Note 15). The common shares were recorded at a price of $1.75 per shares for gross proceeds to the Company of $600,000. During the six months ended June 30, 2023, the Company issued an aggregate of 174,409 shares of its common stock pursuant to the 2023 Q2 Subscription Agreement (as defined in Note 14). The common shares were recorded at a price of $1.72 per shares for gross proceeds to the Company of $300,000. During the six months ended June 30, 2023, the Company issued 183,606 shares of its common stock in connection with conversion of promissory notes (see Note 10). The 183,606 shares of common stock were valued at an aggregate value of $313,892, resulting in $34,338 of loss on settlement of debt recognized for the difference between the fair value of common stock issued and the carrying value of the debt. During the six months ended June 30, 2023, the Company also issued 24,000 shares of its common stock in connection with conversion of accounts payable of $48,000. The 24,000 shares of common stock were valued at an aggregate value of $48,000. During the six months ended June 30, 2023, the Company issued 4,285 shares as additional consideration for the issuance of a promissory note (see Note 9). The 4,285 shares of common stock were valued at an aggregate value of $6,000. Six months ended June 30, 2024 During the six months ended June 30, 2024, the Company issued an aggregate of 360,998 shares of its common stock for services rendered valued at $264,404 based on the underlying market value of the common stock at the date of issuance, among which 121,918 shares valued at $85,154 were issued to the board of directors for board compensation. During the six months ended June 30, 2024, the Company issued an aggregate of 30,000 shares as consideration to the holders of promissory notes entering into the amended agreements to the promissory notes (see Note 9). The 30,000 shares of common stock were valued at an aggregate value of $28,350. The Company also issued 24,000 shares as additional consideration for the issuance of one promissory note (see Note 9). The 24,000 shares of common stock were valued at a value of $11,867. During the six months ended June 30, 2024, the Company issued 460,477 shares of its common stock at $1.18 per share in connection with conversion of the promissory note then outstanding of $446,426 and the accrued interest on the promissory note of $7,858 and director fees of $90,000. During the six months ended June 30, 2023, the Company also issued 224,196 shares of its common stock at $1.18 per share in connection with conversion of director fees of $265,000. During the six months ended June 30, 2024, the Company issued 9,374 shares of its common stock in connection with the 2023 Q4 Lucido Subscription Agreement (as defined below) and the 2023 Q4 Galligan Subscription Agreement (as defined below). As of June 30, 2024 and December 31, 2023, the Company had 9,783,074 shares and 8,674,029 shares of common stock issued and outstanding, respectively. |
STOCK OPTIONS AND WARRANTS
STOCK OPTIONS AND WARRANTS | 6 Months Ended |
Jun. 30, 2024 | |
STOCK OPTIONS AND WARRANTS | |
STOCK OPTIONS AND WARRANTS | NOTE 14 - STOCK OPTIONS AND WARRANTS Options On November 13, 2014, our Board of Directors authorized and approved the adoption of the Plan effective November 13, 2014 (2014 Stock Option Plan) under which an aggregate of 20% 290,879 shares) of the issued and outstanding shares may be issued. The plan shall terminate ten years after the plan’s adoption by the board of directors. We granted an aggregate 145,000 stock options. As of June 30, 2024, an aggregate total of 145,879 can still be granted under the plan. On June 15, 2016, our board of Directors authorized and approved the adoption of the Equity Incentive Plan effective June 15, 2016 (2016 Equity Incentive Plan) under which an aggregate of 656,250 shares may be issued. The plan shall terminate ten years after the plan’s adoption by the board of directors. We granted an aggregate of 330,350 stock options. As June 30, 2024, an aggregate total of 325,900 options can still be granted under the plan. On May 15, 2018, the Board of Directors approved and adopted the BioCorRx Inc. 2018 Equity Incentive Plan (2018 Stock Option Plan) under which an aggregate of 450,000 shares may be issued. The plan shall terminate ten years after the plan’s adoption by the board of directors. The Company has granted an aggregate of 380,008 stock options. As of June 30, 2024, an aggregate total of 69,992 options can still be granted under the plan. On April 22, 2022, the Board of Directors approved and adopted the BioCorRx Inc. 2022 Equity Incentive Plan (2022 Stock Option Plan) under which an aggregate of 695,000 shares may be issued. The plan shall terminate ten years after the plan’s adoption by the board of directors. The Company has granted an aggregate of 190,960 stock options. As of June 30, 2024, an aggregate total of 504,040 options can still be granted under the plan. During the six months ended June 30, 2024, the Company approved the grant of 122,911 stock options to two directors valued at $75,135. The term of the options was five years, and the options vested immediately. Option valuation models require the input of highly subjective assumptions. The fair value of stock-based payment awards was estimated using the Black-Scholes option model with a volatility figure derived from using the Company’s historical stock prices. The Company accounts for the expected life of options based on the contractual life of options for non-employees. For employees, the Company accounts for the expected life of options in accordance with the “simplified” method, which is used for “plain-vanilla” options, as defined in the accounting standards codification. The risk-free interest rate was determined from the implied yields of U.S. Treasury zero-coupon bonds with a remaining life consistent with the expected term of the options. In applying the Black-Scholes option pricing model, the Company used the following assumptions during the six months ended June 30, 2024: 2024 Risk-free interest rate 3.93%-4.33 % Expected term (years) 5.00 Expected volatility 149.49%-153.16 % Expected dividends 0.00 The following table summarizes the stock option activity for the six months ended June 30, 2024: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding at December 31, 2023 891,443 $ 7.41 3.0 $ - Expired (19,167 ) 6.92 Grants 122,911 0.67 4.8 - Outstanding at June 30, 2024 995,187 $ 6.59 2.8 $ - Exercisable at March 31, 2024 994,979 $ 6.59 2.8 $ - The aggregate intrinsic value in the preceding tables represents the total pretax intrinsic value, based on options with an exercise price less than the Company’s stock price of $0.49 as of June 30, 2024, which would have been received by the option holders had those option holders exercised their options as of that date. The following table presents information related to stock options at June 30, 2024: Options Outstanding Options Exercisable Weighted Weighted Average Exercisable Average Exercise Number of Remaining Life Number of Remaining Life Price Options In Years Options In Years $ 0.01-2.50 515,713 2.8 515,713 2.8 2.51-5.00 54,474 1.5 54,474 1.5 5.01 and up 425,000 3.0 424,792 3.0 995,187 2.8 994,979 2.8 The stock-based compensation expense related to option grants were $30,480 and $15,953 during the three months ended June 30, 2024 and 2023, respectively. The stock-based compensation expense related to option grants were $78,930 and $32,027 during the six months ended June 30, 2024 and 2023, respectively. As of June 30, 2024, no stock-based compensation related to options remains unamortized. Warrants During the six months ended June 30, 2024, the Company issued one promissory note to a third parties and issued warrants that entitle the holder to purchase an aggregate of 200,000 common stock in connection with the issuance of the promissory notes. The exercise price was $2.00. The expiration date was 4 years from the date of issuance. The fair value of the warrant was $83,552. In applying the Black-Scholes option pricing model, the Company used the following assumptions in 2024: Risk-free interest rate 4.38 % Expected term (years) 4.00 Expected volatility 157.11 % Expected dividends 0.00 The following table summarizes the changes in warrants outstanding and the related prices for the shares of the Company’s common stock: Warrants Outstanding Warrants Exercisable Weighted Weighted Weighted Average Weighted Average Average Remaining Average Remaining Exercise Number Contractual Exercise Number Contractual Price Outstanding Life (Years) Price Exercisable Life (Years) $ 3.16 1,765,856 2.3 $ 3.16 1,765,856 2.3 $ 3.16 1,765,856 2.3 $ 3.16 1,765,856 2.3 The following table summarizes the warrant activity for the six months ended June 30, 2024: Weighted Average Exercise Number of Price Per Shares Share Outstanding at December 31, 2023 1,565,856 $ 3.31 Grants 200,000 2.00 Outstanding at June 30, 2024 1,765,856 $ 3.16 Exercisable at June 30, 2024 1,765,856 $ 3.16 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2024 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 15 - RELATED PARTY TRANSACTIONS On July 28, 2016, the Company formed BioCorRx Pharmaceuticals, Inc. for the purpose of developing certain business lines. In connection with the formation, the newly formed sub issued 24.2% ownership to current or former officers of the Company, with the Company retaining 75.8%. In 2018, BioCorRx Pharmaceuticals, Inc. began limited operations and there were no operations prior to that. On September 22, 2021, BioCorRx Inc. and BioCorRx Pharmaceuticals, Inc. entered into a Inter-Company License Agreement whereby the Company granted to BioCorRx Pharmaceuticals an exclusive, perpetual and sub-licensable license to use all patented or unpatented inventions, discoveries and other intellectual property owned by the Company related to BICX101, BICX102, BICX104 and any other naltrexone pellets (implants) being developed or that will be developed for FDA approval and commercialization in support of products in the fields of substance use disorder, weight loss and other indications identified including but not limited to pain management, obsessive compulsive disorders, and other addictive behaviors. The licensing fee is payable by BioCorRx Pharmaceuticals starting in the calendar year of the first commercial sale of licensed products and is the percentage of gross sales (less certain amounts) equal to the Company’s ownership interest in BioCorRx Pharmaceuticals. In addition, the Company will invoice BioCorRx Pharmaceuticals for certain management, administrative and corporate services, and facilities and equipment that the Company will provide to BioCorRx Pharmaceuticals. Expenses will be allocated based on actual utilization or appropriate and reasonable methods for the relevant expense. On December 10, 2015, the Company entered into a royalty agreement with Alpine Creek Capital Partners LLC (“Alpine Creek”). The Company is in the business of selling a distinct implementation of the Beat Addiction Recovery Program, a two-tiered comprehensive MAT program, which includes a counseling program, coupled with its proprietary Naltrexone Implant (the “Treatment”). On or about January 1, 2021, Mr. Galligan, acquired from Alpine Creek the rights to the subscription and royalty agreement by and between the Company and Alpine Creek. As of June 30, 2024 and December 31, 2023, the Company’s related party payable was $1,173,120 and $1,683,453, which comprised of compensation payable and interest payable to directors. |
CONCENTRATIONS
CONCENTRATIONS | 6 Months Ended |
Jun. 30, 2024 | |
CONCENTRATIONS | |
CONCENTRATIONS | NOTE 16 - CONCENTRATIONS Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash and trade receivables. The Company places its cash and temporary cash investments with high credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit. The Company’s revenues earned from sale of products and services for the three months ended June 30, 2024 included 100% from three customers of the Company’s total revenues. The Company’s revenues earned from sale of products and services for the three months ended June 30, 2023 included 66% from two customers of the Company’s total revenues. The Company’s revenues earned from sale of products and services for the six months ended June 30, 2024 included 89% from six customers of the Company’s total revenues. The Company’s revenues earned from sale of products and services for the six months ended June 30, 2023 included 72% from two customers of the Company’s total revenues. At June 30, 2024, the Company has no accounts receivable. At December 31, 2023, one customer accounted for 100% of the Company’s total accounts receivable with an amount of $740. |
NON CONTROLLING INTEREST
NON CONTROLLING INTEREST | 6 Months Ended |
Jun. 30, 2024 | |
NON CONTROLLING INTEREST | |
NON-CONTROLLING INTEREST | NOTE 17 - NON-CONTROLLING INTEREST On July 28, 2016, the Company formed BioCorRx Pharmaceuticals, Inc., a Nevada Corporation, for the purpose of developing certain business lines. In connection with the formation, the, the newly formed sub issued 24.2% ownership to current or former officers of the Company with the Company retaining 75.8%. From inception through December 31, 2017, there were no significant transactions. In 2018, BioCorRx Pharmaceuticals, Inc. began operations. On October 31, 2020, the Company entered into a written management services agreement with Joseph DeSanto MD, Inc. (“Medical Corporation”) under which the Company provides management and other administrative services to the Medical Corporation. These services include billing, collection of accounts receivable, accounting, management and human resource functions. Pursuant to the management services agreement, a management fee equal to 65% of the Medical Corporation’s gross collected monthly revenue. Through this arrangement, the Company is directing the activities that most significantly impact the financial results of the respective Medical Corporation; however, all clinical treatment decisions are made solely by licensed healthcare professionals. The Company has determined that it is the primary beneficiary, and, therefore, has consolidated the Medical Corporation as variable interest entity (“VIE”). The medical corporation: (i) had not yet generated any revenues and (ii) had no significant assets or liabilities since inception through June 30, 2024. A reconciliation of the BioCorRx Pharmaceuticals, Inc. and Joseph DeSanto MD, Inc. non-controlling loss attributable to the Company: Net loss attributable to the non-controlling interest for the three months ended June 30, 2024: BioCorRx Pharmaceuticals, Inc. Joseph DeSanto MD Net loss $ (67,251 ) $ (1,072 ) Average Non-controlling interest percentage of profit/losses 24.2 % 35.0 % Net loss attributable to the non-controlling interest $ (16,275 ) $ (375 ) Net loss attributable to the non-controlling interest for the three months ended June 30, 2023: BioCorRx Pharmaceuticals, Inc. Joseph DeSanto MD Net loss $ (1,849 ) $ (1,881 ) Average Non-controlling interest percentage of profit/losses 24.2 % 35.0 % Net loss attributable to the non-controlling interest $ (448 ) $ (658 ) Net loss attributable to the non-controlling interest for the six months ended June 30, 2024: BioCorRx Pharmaceuticals, Inc. Joseph DeSanto MD Net loss $ (68,800 ) $ (1,964 ) Average Non-controlling interest percentage of profit/losses 24.2 % 35.0 % Net loss attributable to the non-controlling interest $ (16,650 ) $ (687 ) Net loss attributable to the non-controlling interest for the six months ended June 30, 2023: BioCorRx Pharmaceuticals, Inc. Joseph DeSanto MD Net loss $ (3,296 ) $ (3,550 ) Average Non-controlling interest percentage of profit/losses 24.2 % 35.0 % Net loss attributable to the non-controlling interest $ (798 ) $ (1,242 ) The following table summarizes the changes in non-controlling interest for the six months ended June 30, 2024: Balance, December 31, 2023 $ (128,834 ) Net loss attributable to the non-controlling interest (17,337 ) Balance, June 30, 2024 (146,171 ) The following table summarizes the changes in non-controlling interest for the six months ended June 30, 2023: Balance, December 31, 2022 $ (125,257 ) Net loss attributable to the non-controlling interest (2,040 ) Balance, June 30, 2023 (127,297 ) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and contingencies | |
COMMITMENTS AND CONTINGENCIES | NOTE 18 - COMMITMENTS AND CONTINGENCIES Royalty agreement Alpine Creek Capital Partners LLC On December 10, 2015, the Company entered into a royalty agreement with Alpine Creek Capital Partners LLC (“Alpine Creek”). The Company is in the business of selling a distinct implementation of the Beat Addiction Recovery Program, a two-tiered comprehensive MAT program, which includes a counseling program, coupled with its proprietary Naltrexone Implant (the “Treatment”). In consideration for the payment, with the exception of treatments conducted in certain territories, the Company will pay Alpine Creek fifty percent (50%) of the Company’s gross profit for each Treatment sold in the United States that includes procurement of the Company’s implant product until the Company has paid Alpine Creek $1,215,000. In the event that the Company has not paid Alpine Creek $1,215,000 within 24 months of the Effective Date, then the Company shall continue to pay Alpine Creek fifty percent (50%) for each Treatment following the Effective Date until the Company has paid Alpine Creek an aggregate of $1,620,000, with the exception of treatments conducted in certain territories. The remaining total consideration is $1,531,926 as of June 30, 2024 and December 31, 2023. Upon the Company’s satisfaction of these obligations, the Company shall pay Alpine Creek $100 for each treatment sold in the United States that includes procurement of the Company’s implant product, into perpetuity. As of June 30, 2024 and December 31, 2023, the amount of royalty due and owed is $91. On any other proprietary implant distribution, that excludes the “treatment”, for alcohol and opioid addiction and for which no other payment is due, the Company shall pay 2.5% of the Company’s gross profit for implant distribution not to exceed $100 per sale. On or about January 1, 2021, Mr. Galligan acquired from Alpine Creek the rights to the royalty agreement by and between the Company and Alpine Creek. As of June 30, 2024 and December 31, 2023, there are no payments due. BICX Holding Company LLC Effective September 30, 2019, the Company entered into a Conversion Agreement (the “Conversion Agreement”) with BICX Holding Company LLC (“BICX”), an entity controlled by Alpine Creek, pursuant to which the parties agreed to the conversion (the “Conversion”) of the Senior Secured Convertible Promissory Note in the principal amount of $4,160,000 (the “Note”), which was issued by the Company to the Investor on June 10, 2016, into 2,227,575 shares of the Company’s common stock (the “Conversion Shares”). In accordance with the Conversion Agreement, the Company cannot enter into any agreement to issue or announce the issuance or proposed issuance of any shares of common stock or common stock equivalents at an issuance price below $2.00 per share. Pursuant to the Conversion Agreement, BICX has agreed that the Total Interest Payment (as defined in the Conversion Agreement) that would have been due under the Note, in the amount of $1,138,157, will be reflected on the Company’s financial statements as an amount due and owing to the Investor to be repaid within twelve (12) months of the closing of the Public Offering, or if the Public Offering is terminated or abandoned prior to closing, then on or before such date that is no later than twelve (12) months from the date of such termination or abandonment. As of June 30, 2024, the Public Offering has not yet been abandoned by the Company. Charles River Laboratories, Inc. On May 24, 2019, the Company entered into a Master Services Agreement (the “MSA”) with Charles River Laboratories, Inc. (“Charles River”). Pursuant to the MSA, Charles River will be conducting studies with regard to BICX102/BICX104. Studies will be conducted pursuant to Statements of Work entered into by the Company and Charles River. On May 30, 2019, the Company and Charles River entered into two separate Statements of Work pursuant to which Charles River is conducting a total of six studies. The Company will pay Charles River the total amended consideration of $3,024,476 for these six studies. The remaining commitment to Charles River is $28,936. Orange County Research Center On January 11, 2022, the Company entered into a Master Clinical Trial Agreement (the “MCTA”) with Memorial Research Medical Clinic dba Orange County Research Center (the “OCRC”). Researchers at the OCRC will perform Phase 1 clinical trial with BICX104. The total consideration the Company will pay MCTA for the Phase 1 clinical trial is $657,640. Pursuant to a Task Order entered into in February 2022 the first payment owed to the OCRC equaling approximately $145,000 will be invoiced monthly as services are rendered. As of June 30, 2024, $0 was due to OCRC. The MCTA will terminate upon either party giving 30 days’ written notice (provided, in the case of the OCRC, it has performed all Task Orders or they have been terminated by the Company for good cause). The Company can suspend a clinical trial for any reason and the OCRC can suspend a clinical trial if it deems, using good medical judgment, it is appropriate to do so. The total consideration paid to OCRC as of June 30, 2024 is $503,089. Agreements As of May 14, 2021, the Company has entered into four consulting agreements. In compensation for services: (i) one consultant shall receive a renumeration amount of $10,000-$12,500 per month and has earned 1% of the Company’s majority owned subsidiary, BioCorRx Pharmaceuticals as of May 7, 2021 based on FDA clearance of Company’s IND application; consulting agreement terminated in April 2021 (ii) one consultant shall receive common stock equivalent to $1,375 on the last day of each month; (iii) two consultants shall receive common stock equivalent to $3,750 on the last day of each month; and (iv) one consultant shall receive a remuneration amount of $3,500 per month. As of June 30, 2024, one 24-month consulting agreement for services which the consultant shall receive a one-time grant of 3,000 shares of common stock and common stock equivalent to $1,417 on the last day of each month. The Company initiated litigation in 2019 based on a claim that Pellecome and Dr. Orbeck utilized the Company’s confidential information to advance their own weight loss product. The Company dismissed this litigation without prejudice in July 2021. On March 30, 2022, the court entered judgment in favor of Pellecome as an individual defendant whereby the Company was ordered to pay Pellecome total costs and attorneys’ fees of $235,886. Pursuant to the judgment, this amount is accruing interest at the rate of ten percent (10%) per annum from October 6, 2021 (the date of the original award of attorneys’ fees by the court which was followed by a number of filings by each party through February 2022). The Company has not yet paid any amount to Pellecome. On May 27, 2022, the Company filed a notice of appeal with California Superior Court for Orange County regarding the March 30, 2022 judgment entered in favor of Pellecome. On February 2, 2023, the Company filed a motion requesting the California Superior Court for Orange County reverse and remand its prior ruling, including reversing the granting of Pellecome $222,933 in attorney’s fees. On October 4, 2023 the Court of Appeal of the State of California upheld the March 30, 2022 judgement in favor of Pellecome whereby $222,933 was awarded in attorney’s fees. On January 5, 2024 the California Superior Court for Orange County entered an amended judgement of $332,503 in favor of Pellecome for costs and attorneys’ fees, in addition to the $332,503 judgement the Company owes accrued interest of $57,412. As of June 30, 2024 The Company has accrued $322,503 as a loss contingency for this matter. On January 5, 2024 the Company’s board of directors appointed Lou Lucido as Interim President through January 31, 2024, and transitioned to President on February 1, 2024. Mr. Lucido will remain a member of the Board of Directors, with an annual compensation of $200,000 to be paid in equity. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2024 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 19 - SUBSEQUENT EVENTS Subsequent to June 30, 2024, the Company issued an aggregate of 57,447 shares of its common stock for the Company’s President stock compensation and consulting services valued at $29,875. On July 2, 2024, the Company entered into three stock grant award agreements with (i) the Company’s CEO and CFO, (ii) one Director and Consultant of the Company’s subsidiary, and (iii) one Consultant of the Company’s subsidiary and issued an aggregate of 950,000 shares of its common stock valued at 446,500. On July 11, 2024, the Company entered into two promissory note amendment agreements. In accordance with the agreements, the debt holder agreed to modify the amortization of payments and in exchange for the modification the Company issued an aggregate of 100,000 shares of common stock to the debt holder valued at $52,000. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Interim Financial Statements | The following (a) condensed consolidated balance sheet as of December 31, 2023, which has been derived from audited financial statements, and (b) the unaudited condensed consolidated interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of results that may be expected for the year ending December 31, 2024. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on April 1, 2024. |
Basis of Presentation | The consolidated financial statements include the accounts of: (i) BioCorRx Inc. and its wholly owned subsidiary, Fresh Start Private, Inc., (ii) its majority owned subsidiary, BioCorRx Pharmaceuticals, Inc., and (iii) and the Medical Corporation (“VIE”) (Collectively, “the Company”) under which the Company provides management and other administrative services pursuant to the management services agreement in which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation. |
Revenue Recognition | The Company recognizes revenue in accordance with Financial Accounting Standards Board “FASB” Accounting Standards Codification “ASC” 606. A five-step analysis a must be met as outlined in Topic 606: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations, and (v) recognize revenue when (or as) performance obligations are satisfied. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. The Company has elected the following practical expedients in applying ASC 606: · Unsatisfied Performance Obligations - all performance obligations relate to contracts with a duration of less than one year. The Company has elected to apply the optional exemption provided in ASC 606 and therefore, is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. · Contract Costs - all incremental customer contract acquisition costs are expensed as they are incurred as the amortization period of the asset that the Company otherwise would have recognized is one year or less in duration. · Significant Financing Component - the Company does not adjust the promised amount of consideration for the effects of a significant financing component as the Company expects, at contract inception, that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. · Sales Tax Exclusion from the Transaction Price - the Company excludes from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from the customer. · Shipping and Handling Activities - the Company elected to account for shipping and handling activities as a fulfillment cost rather than as a separate performance obligation. The Company’s net sales are disaggregated by product category. The sales/access fees consist of product sales, which is recognized upon the transfer of promised goods to customers. The project support income is generated from administrative support to Biotechnology research customers, which is recognized upon the transfer of promised services to customers. The distribution rights income consists of the income recognized from the amortization of distribution agreements entered into for its products. The membership/program fees are generated from the Company’s UnCraveRx™ Weight Loss Management Program, which is recognized upon the transfer of promised goods to customers. The following table presents the Company’s net sales by product category for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, 2024 2023 Sales/access fees $ - $ 9,245 Distribution rights income 4,045 8,721 Membership/program fees - 1,669 Net sales $ 4,045 $ 19,635 Six Months Ended June 30, 2024 2023 Sales/access fees $ 2,205 $ 10,255 Project support income - 25,817 Distribution rights income 4,045 17,347 Membership/program fees 1,415 6,658 Net sales $ 7,665 $ 60,077 |
Deferred revenue | The Company licenses proprietary products and protocols to customers under licensing agreements that allow those customers to access the products and protocols in services they provide to their customers during the term of the license agreement. The timing and amount of revenue recognized from license agreements depends upon a variety of factors, including the specific terms of each agreement. Such agreements are reviewed for multiple performance obligations. Performance obligations can include amounts related to initial non-refundable license fees for the use of the Company’s products and protocols and additional royalties on covered services. The Company granted license and sub-license agreements for various regions or States in the United States allowing the licensee to market, distributes and sell solely in the defined license territory, as defined, the products provided by the Company. The agreements are granted for a defined period or perpetual and are effective as long as annual milestones are achieved. Terms for payments for licensee agreements vary from full cash payment to defined terms. In cases where license or sub-license fees are uncollected and deferred; the Company nets those uncollected fees with the deferred revenue for balance sheet presentation. The Company amortizes license fees over the shorter of the economic life of the related contract life or contract terms for each licensee. On October 1, 2019, the Company launched the UnCraveRx™ Weight Loss Management Program. Customers are charged a membership fee and are requested to pay for three training programs at inception. The payments are recorded as deferred revenue until earned. The following table presents the changes in deferred revenue, reflected as current and long term liabilities on the Company’s unaudited condensed consolidated balance sheet: Balance as of December 31, 2023 Short term $ - Long term 4,045 Total as of December 31, 2023 4,045 Net sales recognized (4,045 ) Balance as of June 30, 2024 $ - |
Deferred Revenue-Grant | The Company recognizes grant revenues in the period during which the related research and development costs are incurred. The timing and amount of revenue recognized from reimbursement for research and development costs depends upon the specific terms for the contracted work. Such costs are reviewed for multiple performance obligations which can include amounts related to contracted work performed or as milestones have been achieved. |
Use of Estimates | The preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent 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. Significant estimates include assumptions used in the fair value of other equity and debt instruments, income taxes, loss contingencies, and research and development costs. |
Accounts Receivable | Accounts receivable are recorded at original invoice amount less an allowance for uncollectible accounts that management believes will be adequate to absorb estimated losses on existing balances. Management estimates the allowance based on collectability of accounts receivable and prior bad debt experience. Accounts receivable balances are written off against the allowance upon management’s determination that such accounts are uncollectible. Recoveries of accounts receivable previously written off are recorded when received. The allowance for doubtful accounts was $0 as of June 30, 2024 and December 31, 2023. Financial Accounting Standards Board (“FSAB”) Accounting Standards Codification (“ASC”) 326-20-30-2, Financial Instruments – Credit Losses Trade receivables with certain customers are financial assets analyzed by the Company under the expected credit loss model. To measure expected credit losses, trade receivables are grouped based on shared risk characteristics (i.e., the relevant healthcare industry) and days past due (i.e., delinquency status), while considering the following if applicable: · Customers in relevant healthcare industries share similar risk characteristics associated with the macroeconomic environment of their industry. · The expected credit loss rate is likely to increase as receivables move to older aging buckets. The Company used the following aging categories to estimate the risk of delinquency status: (i) 0 days past due; (ii) 1-30 days past due; (iii) 31-60 days past due; (iv) 61-90 days past due; and (v) over 90 days past due. |
Fair Value of Financial Instruments | The Company calculates the fair value of its assets and liabilities which qualify as financial instruments and includes this additional information in the notes to the consolidated financial statements when the fair value is different than the carrying value of these financial instruments. The estimated fair value of cash, accounts receivable, grant receivable, accounts payable and accrued expenses, and notes payable approximate their carrying amounts due to the relatively short maturity of these instruments. The carrying value of lease liability and royalty obligation also approximates fair value since these instruments bear market rates of interest. None of these instruments are held for trading purposes. See Note 13 and 14 for stock based compensation and other equity instruments. |
Fair Value Measurements | The Company follows the guidance in ASC 820 for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period. The Company also follows ASC 820 for non-financial assets and liabilities that are re-measured and reported at fair value at least annually. The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or that the Company would have paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used to value the assets and liabilities: Level 1: Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2: Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active. Level 3: Unobservable inputs based on the Company’s assessment of the assumptions that market participants would use in pricing the asset or liability. |
Derivative Financial Instruments | The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480 and ASC 815, “Derivatives and Hedging” (“ASC 815”). The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. The fair value of the event of default penalty put option in connection with the issuance of promissory notes was recognized as a derivative liability and debt discount on the unaudited condensed consolidated balance sheet as of June 30, 2024 and December 31, 2023. The following table provides information related to the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023: June 30, 2024 Level 1 Level 2 Level 3 Total Liabilities: Derivative liability $ - $ - $ 80,190 $ 80,190 $ - $ - $ 80,190 $ 80,190 December 31, 2023 Level 1 Level 2 Level 3 Total Liabilities: Derivative liability $ - $ - $ 53,460 $ 53,460 $ - $ - $ 53,460 $ 53,460 Activity for the three and six months ended June 30, 2024 for the derivative liability was as follows: Derivative Liability Fair value as of December 31, 2023 $ 53,460 Fair value at issuance 26,730 Fair value as of March 31, 2024 80,190 Fair value as of June 30, 2024 $ 80,190 |
Segment Information | Accounting Standards Codification subtopic Segment Reporting 280-10 (“ASC 280-10”) establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information for those segments to be presented in interim financial reports issued to stockholders. ASC 280-10 also establishes standards for related disclosures about products and services and geographic areas. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision-making group, in making decisions how to allocate resources and assess performance. The information disclosed herein materially represents all of the financial information related to the Company’s principal operating segment. |
Long-Lived Assets | The Company follows a “primary asset” approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used. Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of the assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset. No impairments were recognized for the three and six months ended June 30, 2024 and 2023. |
Intangible Assets | Intangible assets with finite lives are amortized over their estimated useful lives. Intangible assets with indefinite lives are not amortized, but are tested for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. No impairment was recognized for the three and six months ended June 30, 2024 and 2023. |
Software Development Costs | The Company has adopted the provision of ASC 985-20-25, Costs of Software to Be Sold, Leased or Marketed, whereby costs incurred to establish the technological feasibility of a computer software product to be sold, leased or marketed are research and development costs. Research costs are expensed as incurred; costs of producing product masters incurred subsequent to establishing technological feasibility are capitalized; and costs incurred when the product is available for general release to the customers are expensed as incurred. Upgrades and enhancements are capitalized if they result in added functionality which enables the software to perform tasks it was previously incapable of performing. On July 1, 2021, the Company began development of a proprietary cloud based app that will be marketed and commercialized, for which $47,980 of costs have been capitalized. During the six months ended June 30, 2023, the Company wrote off the $47,980 as impairment loss. |
Property and Equipment | Property and equipment are stated at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the asset’s estimated useful life of 5 to 15 years. Expenditures for maintenance and repairs are expensed as incurred. When retired or otherwise disposed, the related carrying value and accumulated depreciation are removed from the respective accounts and the net difference less any amount realized from disposition is reflected in earnings. |
Leases | The Company determines if an arrangement is a lease at inception. Operating lease right-of-use assets (“ROU assets”) and short-term and long-term lease liabilities are included on the face of the consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date over the respective lease term in determining the present value of lease payments. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for as a single lease component. For lease agreements with terms less than 12 months, the Company has elected the short-term lease measurement and recognition exemption, and it recognizes such lease payments on a straight-line basis over the lease term. |
Net (loss) Per Share | The Company accounts for net loss per share in accordance with Accounting Standards Codification subtopic 260-10, Earnings Per Share (“ASC 260-10”), which requires presentation of basic and diluted earnings per share (“EPS”) on the face of the statement of operations for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS. Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during each period. It excludes the dilutive effects of any potentially issuable common shares. The effect of common stock equivalents is anti-dilutive with respect to losses and therefore basic and dilutive is the same. Diluted net loss per share is calculated by including any potentially dilutive share issuances in the denominator. The following securities are excluded from the calculation of weighted average diluted shares at June 30, 2024 and 2023, respectively, because their inclusion would have been anti-dilutive. Six Months Ended June 30, 2024 2023 Shares underlying options outstanding 995,187 882,869 Shares underlying warrants outstanding 1,765,856 850,856 Convertible preferred stock outstanding 240,000 240,000 3,001,043 1,973,725 |
Advertising | The Company follows the policy of charging the costs of advertising to expense as incurred. The Company charged to operations $11,590 and $33,638 as advertising costs for the three months ended June 30, 2024 and 2023, respectively. The Company charged to operations $24,208 and $62,786 as advertising costs for the six months ended June 30, 2024 and 2023, respectively. |
Grant Income | On January 17, 2019, the Company received a Notice of Award from the United States Department of Health and Human Services for a grant from the National Institutes of Health (“NIH”) in support of BICX102/BICX104 from the National Institute on Drug Abuse. BICX102 is an implantable pellet of naltrexone that was the original product candidate and BICX104 is another pellet of naltrexone that subsequently became the lead product candidate with minor excipient differences between the BICX102 and BICX104. The grant provides for (i) $2,842,430 in funding during the first year and (ii) $2,831,838 during the second year subject to the terms and conditions specified in the grant, including satisfactory progress of project and the availability of funds. On August 27, 2021, the Company received a Notice of Award from the United States Department of Health and Human Services for a grant from National Institute on Drug Abuse in support of BICX104. The grant provides for $3,453,367 in funding during the third year subject to the terms and conditions specified in the grant, including satisfactory progress of project and the availability of funds. On March 31, 2022, the Company received a Notice of Award from the United States Department of Health and Human Services for a grant from National Institute on Drug Abuse. The grant provides for $99,431 in additional funding during the third year subject to the terms and conditions specified in the grant, including satisfactory progress of project and the availability of funds. Grant payments received prior to the Company’s performance of work required by the terms of the research grant are recorded as deferred income and recognized as grant income once work is performed and qualifying costs are incurred. On March 1, 2024, the Company’s subsidiary BioCorRx Pharmaceuticals Inc. was awarded a grant of $11,029,977 from the National Institutes of Health’s National Institute on Drug Abuse, ("NIDA"). The grant provides the Company with additional resources for the ongoing research of BICX104, a sustained release naltrexone implant for the treatment of methamphetamine use disorder. The grant provides for (i) $4,131,123 in funding during the first year, (ii) $3,638,268 during the second-year, and (iii) $3,260,586 during the third-year subject to the terms and conditions specified in the grant, including satisfactory progress of project and the availability of funds. Government grants are agreements that generally provide cost reimbursement for certain types of expenditures in return for research and development activities over a contractually defined period. Grant receivables were $109,736 and $76,266 as of June 30, 2024 and December 31, 2023, respectively. Deferred revenues related to the grant were $0 as of June 30, 2024 and December 31, 2023. $518,667 and $248,006 were recorded as grant income for the three months ended June 30, 2024 and 2023, respectively. $631,630 and $489,155 were recorded as grant income for the six months ended June 30, 2024 and 2023, respectively. The F&A indirect costs were $0 as of June 30, 2024 and December 31, 2023. The grant provides for $516,218 in funding for F&A indirect costs. |
Research and development costs | The Company accounts for research and development costs in accordance with the Accounting Standards Codification subtopic 730-10, Research and Development (“ASC 730-10”). Under ASC 730-10, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and developments costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. The Company incurred research and development expenses of $536,362 and $238,419 for the three months ended June 30, 2024 and 2023, respectively. The Company incurred research and development expenses of $750,196 and $475,806 for the six months ended June 30, 2024 and 2023, respectively. |
Stock Based Compensation | Share-based compensation issued to employees is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the requisite service period. The Company measures the fair value of the share-based compensation issued to non-employees at the grant date using the stock price observed in the trading market (for stock transactions) or the fair value of the award (for non-stock transactions), which were considered to be more reliably determinable measures of fair value than the value of the services being rendered. |
Income Taxes | Deferred income tax assets and liabilities are determined based on the estimated future tax effects of net operating loss and credit carry forwards and temporary differences between the tax basis of assets and liabilities and their respective financial reporting amounts measured at the current enacted tax rates. The Company records an estimated valuation allowance on its deferred income tax assets if it is more likely than not that these deferred income tax assets will not be realized. The Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. As of June 30, 2024 and December 31, 2023, the Company has not recorded any unrecognized tax benefits. |
Variable Interest Entity | The Company evaluates all interests in the VIE for consolidation. When the Company’s interests are determined to be variable interests, an assessment is made on whether the Company is deemed to be the primary beneficiary of the VIE. The primary beneficiary of a VIE is required to consolidate the VIE. Accounting Standards Codification (“ASC”) 810, Consolidation, defines the primary beneficiary as the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the VIE which could be potentially significant. Variable interests are considered in making this determination. Where both of these factors are present, the Company is deemed to be the primary beneficiary and the Company consolidates the VIE. |
Non-Controlling Interest | A non-controlling interest should be allocated its share of net income or loss, and its respective share of each component of other comprehensive income, in accordance with ASC 810-10-45-20. Due to a management fee equal to 65% of the Medical Corporation’s gross collected monthly revenue, 65% of the Medical Corporation’s earnings was allocated to the Company, and 35% to the non-controlling interest. Due to the Company’s retaining 75.8% ownership of BioCorRx Pharmaceuticals, Inc., 75.8% of BioCorRx Pharmaceuticals, Inc.’s earnings was allocated to the Company, and 24.2% to the non-controlling interest. See accounting policy “ Variable Interest Entity |
Royalty Obligations, net | The Company accounted for royalty obligations as debt in accordance with ASC 470-10-25 and derived a debt discount, which is amortized using the straight line method over the expected life of the arrangement, which is 15 years. The Company has no obligation to repay the then outstanding balance if during the expected life of 15 years the treatment is discontinued. In order to record the discount of the liability, the Company fair valued the royalty and the difference between fair value of the royalty obligation and the gross projected future payments was $7,171,200 and was recorded as non-cash interest expense over the life of the liability and offset to additional paid in capital at inception. |
Recent Accounting Pronouncements | In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which requires disclosure of incremental income tax information within the rate reconciliation and expanded disclosures of income taxes paid, among other disclosure requirements. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company’s management does not believe the adoption of ASU 2023-09 will have a material impact on its financial statements and disclosures. There are other various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company’s financial position, results of operations or cash flows. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of net sales | Three Months Ended June 30, 2024 2023 Sales/access fees $ - $ 9,245 Distribution rights income 4,045 8,721 Membership/program fees - 1,669 Net sales $ 4,045 $ 19,635 Six Months Ended June 30, 2024 2023 Sales/access fees $ 2,205 $ 10,255 Project support income - 25,817 Distribution rights income 4,045 17,347 Membership/program fees 1,415 6,658 Net sales $ 7,665 $ 60,077 |
Schedule of changes in deferred revenue | Balance as of December 31, 2023 Short term $ - Long term 4,045 Total as of December 31, 2023 4,045 Net sales recognized (4,045 ) Balance as of June 30, 2024 $ - |
Schedule of assets and liabilities measured at fair value on a recurring basis | June 30, 2024 Level 1 Level 2 Level 3 Total Liabilities: Derivative liability $ - $ - $ 80,190 $ 80,190 $ - $ - $ 80,190 $ 80,190 December 31, 2023 Level 1 Level 2 Level 3 Total Liabilities: Derivative liability $ - $ - $ 53,460 $ 53,460 $ - $ - $ 53,460 $ 53,460 |
Schedule of derivative liability | Derivative Liability Fair value as of December 31, 2023 $ 53,460 Fair value at issuance 26,730 Fair value as of March 31, 2024 80,190 Fair value as of June 30, 2024 $ 80,190 |
Schedule of weighted average diluted shares | Six Months Ended June 30, 2024 2023 Shares underlying options outstanding 995,187 882,869 Shares underlying warrants outstanding 1,765,856 850,856 Convertible preferred stock outstanding 240,000 240,000 3,001,043 1,973,725 |
PREPAID EXPENSES (Tables)
PREPAID EXPENSES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
PREPAID EXPENSES | |
Schedule of prepaid expenses | June 30, December 31, 2024 2023 Prepaid insurance $ 41,820 $ 18,511 Prepaid subscription services 12,089 26,380 $ 53,909 $ 44,891 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
PROPERTY AND EQUIPMENT | |
Schedule of property and equipment | June 30, December 31, 2024 2023 Office equipment $ 45,519 $ 45,519 Computer equipment 5,544 5,544 Manufacturing equipment 101,200 101,200 Leasehold improvement 42,288 42,288 194,551 194,551 Less accumulated depreciation (156,446 ) (143,608 ) $ 38,105 $ 50,943 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
LEASE | |
Schedule of lease liability | June 30, December 31, 2024 2023 Total lease liability $ 218,046 $ 133,677 Less: short term portion 38,491 122,732 Long term portion $ 179,555 $ 10,945 |
Schedule of maturity analysis under lease agreements | Total 2024 $ 27,272 2025 54,544 2026 54,544 2027 54,544 2028 54,544 2029 and beyond 18,181 Subtotal 263,629 Less: Present value discount (45,583 ) Lease liability $ 218,046 |
Schedule of lease expense | Three Months Ended June 30, 2024 2023 Operating lease expense $ 18,339 $ 36,402 $ 18,339 $ 36,402 Six Months Ended June 30, 2024 2023 Operating lease expense $ 47,436 $ 72,804 $ 47,436 $ 72,804 |
Schedule of Weighted-average remaining lease term | June 30, December 31, 2024 2023 Weighted-average remaining lease term 4.8 1.0 |
INTELLECTUAL PROPERTY LICENSI_2
INTELLECTUAL PROPERTY LICENSING RIGHTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
INTELLECTUAL PROPERTY LICENSING RIGHTS | |
Schedule of future amortization of intellactual property | Year Amount 2024 580 2025 1,169 2026 1,169 2027 1,169 2028 and after 4,351 $ 8,438 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | |
Schedule of accounts payable and accrued expenses | June 30, December 31, 2024 2023 Accounts payable $ 2,830,043 $ 2,473,457 Interest payable on notes payable 1,341,351 1,268,264 Interest payable on notes payable, related parties 547,036 478,920 Deferred insurance 36,734 - Accrual of loss on contingency 394,550 322,000 Interest payable on EIDL loan 5,598 5,675 Payroll payables 17,324 - Accrued stock-based compensation - 43,321 Accrued expenses 157,417 57,542 $ 5,330,053 $ 4,649,179 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
NOTES PAYABLE | |
Schedule of outstanding notes payable | June 30, December 31, 2024 2023 Advances from a third party $ 21,480 $ 21,480 Promissory note payable dated September 9, 2021 200,000 200,000 Promissory note payable dated October 6, 2022 100,000 100,000 Promissory note payable dated January 25, 2023 50,000 49,605 Promissory note payable dated September 6, 2023, net of debt discount of $21,529 and $80,896, respectively 128,471 69,104 Promissory note payable dated November 10, 2023, net of debt discount of $28,969 and $135,985, respectively 191,031 84,015 Promissory note payable dated December 8, 2023, net of debt discount of $43,778 and $137,454, respectively 176,222 82,546 Promissory note payable dated March 14, 2024, net of debt discount of $86,323 and $0, respectively 133,677 - $ 1,000,881 $ 606,750 |
NOTES PAYABLE RELATED PARTIES (
NOTES PAYABLE RELATED PARTIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
NOTES PAYABLE RELATED PARTIES | |
Schedule of outstanding notes payable related party | June 30, December 31, 2024 2023 Advances from Kent Emry $ 1,500 $ 1,500 Advances from Louis C Lucido - 125,000 Advances from Lourdes Felix 200,243 136,273 Promissory notes payables to Kent Emry 663,610 663,610 Promissory note payable to Louis C Lucido, net of debt discount of $0 and $77,295, respectively - 72,705 $ 865,353 $ 999,088 |
ECONOMIC INJURY DISASTER LOAN (
ECONOMIC INJURY DISASTER LOAN (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
ECONOMIC INJURY DISASTER LOAN | |
Schedule of future principle payments | Year Amount 2024 $ - 2025 - 2026 16 2027 1,598 2028 and after 70,140 $ 71,754 |
STOCK OPTIONS AND WARRANTS (Tab
STOCK OPTIONS AND WARRANTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
STOCK OPTIONS AND WARRANTS | |
Scheule of Black-Scholes option pricing model | 2024 Risk-free interest rate 3.93%-4.33 % Expected term (years) 5.00 Expected volatility 149.49%-153.16 % Expected dividends 0.00 Risk-free interest rate 4.38 % Expected term (years) 4.00 Expected volatility 157.11 % Expected dividends 0.00 |
Schedule of stock options activity | Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding at December 31, 2023 891,443 $ 7.41 3.0 $ - Expired (19,167 ) 6.92 Grants 122,911 0.67 4.8 - Outstanding at June 30, 2024 995,187 $ 6.59 2.8 $ - Exercisable at March 31, 2024 994,979 $ 6.59 2.8 $ - |
Schedule of information regarding stock options | Options Outstanding Options Exercisable Weighted Weighted Average Exercisable Average Exercise Number of Remaining Life Number of Remaining Life Price Options In Years Options In Years $ 0.01-2.50 515,713 2.8 515,713 2.8 2.51-5.00 54,474 1.5 54,474 1.5 5.01 and up 425,000 3.0 424,792 3.0 995,187 2.8 994,979 2.8 |
Schedule of changes in warrants outstanding and the related prices | Warrants Outstanding Warrants Exercisable Weighted Weighted Weighted Average Weighted Average Average Remaining Average Remaining Exercise Number Contractual Exercise Number Contractual Price Outstanding Life (Years) Price Exercisable Life (Years) $ 3.16 1,765,856 2.3 $ 3.16 1,765,856 2.3 $ 3.16 1,765,856 2.3 $ 3.16 1,765,856 2.3 |
Schedule of warrant activity | Weighted Average Exercise Number of Price Per Shares Share Outstanding at December 31, 2023 1,565,856 $ 3.31 Grants 200,000 2.00 Outstanding at June 30, 2024 1,765,856 $ 3.16 Exercisable at June 30, 2024 1,765,856 $ 3.16 |
NON CONTROLLING INTEREST (Table
NON CONTROLLING INTEREST (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
NON CONTROLLING INTEREST | |
Schedule of net loss attributable to non-controlling interest | BioCorRx Pharmaceuticals, Inc. Joseph DeSanto MD Net loss $ (67,251 ) $ (1,072 ) Average Non-controlling interest percentage of profit/losses 24.2 % 35.0 % Net loss attributable to the non-controlling interest $ (16,275 ) $ (375 ) BioCorRx Pharmaceuticals, Inc. Joseph DeSanto MD Net loss $ (1,849 ) $ (1,881 ) Average Non-controlling interest percentage of profit/losses 24.2 % 35.0 % Net loss attributable to the non-controlling interest $ (448 ) $ (658 ) BioCorRx Pharmaceuticals, Inc. Joseph DeSanto MD Net loss $ (68,800 ) $ (1,964 ) Average Non-controlling interest percentage of profit/losses 24.2 % 35.0 % Net loss attributable to the non-controlling interest $ (16,650 ) $ (687 ) BioCorRx Pharmaceuticals, Inc. Joseph DeSanto MD Net loss $ (3,296 ) $ (3,550 ) Average Non-controlling interest percentage of profit/losses 24.2 % 35.0 % Net loss attributable to the non-controlling interest $ (798 ) $ (1,242 ) |
Schedule of changes in non controlling interest | Balance, December 31, 2023 $ (128,834 ) Net loss attributable to the non-controlling interest (17,337 ) Balance, June 30, 2024 (146,171 ) Balance, December 31, 2022 $ (125,257 ) Net loss attributable to the non-controlling interest (2,040 ) Balance, June 30, 2023 (127,297 ) |
BUSINESS (Details Narrative)
BUSINESS (Details Narrative) | Jul. 28, 2016 |
BioCorRx Pharmaceuticals, Inc [Member] | |
Management fee | 24.20% |
Series A Convertible Preferred Stock [Member] | |
Equity issued ownership | 75.80% |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
SIGNIFICANT ACCOUNTING POLICIES | ||||
Sales/access fees | $ 0 | $ 9,245 | $ 2,205 | $ 10,255 |
Project support income | 0 | 25,817 | 0 | 25,817 |
Distribution rights income | 4,045 | 8,721 | 4,045 | 17,347 |
Membership/program fees | 1,669 | 1,415 | 6,658 | |
Net sales | $ 4,045 | $ 19,635 | $ 7,665 | $ 60,077 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
SIGNIFICANT ACCOUNTING POLICIES | ||
Deferred revenue, short term | $ 0 | |
Deferred revenue, Long term | 4,045 | |
Long term | $ 0 | $ 4,045 |
Net sales recognized | $ (4,045) |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative liability | $ 80,190 | $ 53,460 |
Total Derivative liability | 80,190 | 53,460 |
Level 1 [Member] | ||
Derivative liability | 0 | |
Total Derivative liability | 0 | |
Level 2 [Member] | ||
Derivative liability | 0 | |
Total Derivative liability | 0 | |
Level 3 [Member] | ||
Derivative liability | 80,190 | 53,460 |
Total Derivative liability | $ 80,190 | $ 53,460 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES (Details 3) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Fair value as of December 31, 2023 | $ 80,190 | $ 53,460 |
Fair value at issuance | 80,190 | $ 53,460 |
Derivative Liabilities [Member] | ||
Fair value as of December 31, 2023 | 53,460 | |
Fair value at issuance | 26,730 | |
Fair value as of March 31, 2024 | 80,190 | |
Fair value as of June 30, 2024 | $ 80,190 |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES (Details 4) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
SIGNIFICANT ACCOUNTING POLICIES | ||
Shares underlying options outstanding | $ 995,187 | $ 882,869 |
Shares underlying warrants outstanding | 1,765,856 | 850,856 |
Convertible preferred stock outstanding | 240,000 | 240,000 |
Total | 3,001,043 | 1,973,725 |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jul. 02, 2021 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | May 01, 2024 | Jan. 17, 2019 | |
Allowance for doubtful accounts | $ 0 | $ 0 | $ 0 | |||||
Advertising costs | 11,590 | $ 33,638 | 24,208 | $ 62,786 | ||||
Impairment of intellectual property | $ 47,980 | 0 | 0 | $ 0 | 47,980 | |||
Aging categories to estimate risk, description | The Company used the following aging categories to estimate the risk of delinquency status: (i) 0 days past due; (ii) 1-30 days past due; (iii) 31-60 days past due; (iv) 61-90 days past due; and (v) over 90 days past due | |||||||
Impairment loss | 47,980 | |||||||
Grant funding during the first year | $ 4,131,123 | $ 2,842,430 | ||||||
Grant funding | 11,029,977 | |||||||
Grant funding during the second year | 3,638,268 | 2,831,838 | ||||||
Grant funding during the third year | $ 3,260,586 | 3,453,367 | ||||||
Grant additional funding during the third year | $ 99,431 | |||||||
Grant receivables | 109,736 | $ 109,736 | 76,266 | |||||
Deferred income | 0 | 0 | ||||||
Grant income | 518,667 | 248,006 | 631,630 | 489,155 | ||||
F & A indirect costs | 0 | 0 | $ 0 | |||||
Grant funding indirect cost | 516,218 | |||||||
Research and development expenses | $ 536,362 | $ 238,419 | $ 750,196 | $ 475,806 | ||||
Ownership percentage | 50% | |||||||
Royalty obligations description | The Company accounted for royalty obligations as debt in accordance with ASC 470-10-25 and derived a debt discount, which is amortized using the straight line method over the expected life of the arrangement, which is 15 years. The Company has no obligation to repay the then outstanding balance if during the expected life of 15 years the treatment is discontinued | |||||||
Description of Non-Controlling Interest | Due to a management fee equal to 65% of the Medical Corporation’s gross collected monthly revenue, 65% of the Medical Corporation’s earnings was allocated to the Company, and 35% to the non-controlling interest | |||||||
Royalty obligations, net | $ 7,171,200 | |||||||
Minimum [Member] | ||||||||
Property plant and equipment estimated useful lives | 5 years | |||||||
Maximum [Member] | ||||||||
Property plant and equipment estimated useful lives | 15 years |
GOING CONCERN AND MANAGEMENTS_2
GOING CONCERN AND MANAGEMENTS LIQUIDITY PLANS (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | ||||
Mar. 08, 2024 | Apr. 24, 2024 | Mar. 25, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Working capital deficit | $ (7,142,958) | |||||
Accrued interest | $ 57,412 | |||||
Common stock price per share | $ 0.001 | $ 0.001 | ||||
Cash | $ 8,365 | |||||
Net cash used in operating activities | (491,541) | $ (968,898) | ||||
Gross Proceeds | 235,396 | |||||
Mr Lucido [Member] | ||||||
Promissory note outstanding | $ 446,426 | |||||
Professional fees | 90,000 | |||||
Accrued interest | $ 7,858 | |||||
Common stock shares issued | 460,477 | |||||
Common stock price per share | $ 1.18 | |||||
Lourdes Felix [Member] | ||||||
Professional fees | $ 265,000 | |||||
Common stock shares issued | 224,196 | |||||
Common stock price per share | $ 1.18 | |||||
Investors [Member] | ||||||
Common stock shares issued | 15,000 | 15,000 | ||||
Gross Proceeds | $ 15,000 | $ 13,350 | ||||
Exercise price | $ 1 | $ 0.89 | ||||
Unsecured Promissory Note Related Third Party [Member] | ||||||
Issued Notes payable | $ 200,000 | |||||
Notes payable interest rate | 8% | |||||
February 22, 2024 [Member] | ||||||
Description of funding | The grant provides for (i) $4,131,123 in funding during the first year, (ii) $3,638,268 during the second-year, and (iii) $3,260,586 during the third-year subject to the terms and conditions specified in the grant, including satisfactory progress of project and the availability of funds | |||||
Awarded a grant | $ 11,029,977 |
PREPAID EXPENSES (Details)
PREPAID EXPENSES (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
PREPAID EXPENSES | ||
Prepaid insurance | $ 41,820 | $ 18,511 |
Prepaid subscription services | 12,089 | 26,380 |
Total | $ 53,909 | $ 44,891 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Property and equipment, gross | $ 194,551 | $ 194,551 |
Less accumulated depreciation | (156,446) | (143,608) |
Property and equipment, net | 38,105 | 50,943 |
Office Equipment [Member] | ||
Property and equipment, gross | 45,519 | 45,519 |
Computer Equipment [Member] | ||
Property and equipment, gross | 5,544 | 5,544 |
Manufacturing Equipment [Member] | ||
Property and equipment, gross | 101,200 | 101,200 |
Leasehold improvement [Member] | ||
Property and equipment, gross | $ 42,288 | $ 42,288 |
PROPERTY AND EQUIPMENT (Detai_2
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
PROPERTY AND EQUIPMENT | ||||
Depreciation expense | $ 6,419 | $ 6,420 | $ 12,838 | $ 12,790 |
LEASES (Details)
LEASES (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
LEASE | ||
Total lease liability | $ 218,046 | $ 133,677 |
Less: short term portion | 38,491 | 122,732 |
Long term portion | $ 179,555 | $ 10,945 |
LEASES (Details 1)
LEASES (Details 1) | Jun. 30, 2024 USD ($) |
LEASE | |
2024 | $ 27,272 |
2025 | 54,544 |
2026 | 54,544 |
2027 | 54,544 |
2028 | 54,544 |
2029 and beyond | 18,181 |
Subtotal | 263,629 |
Less: present value discount | (45,583) |
Lease liability | $ 218,046 |
LEASES (Details 2)
LEASES (Details 2) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
LEASE | ||||
Operating lease expense | $ 18,339 | $ 36,402 | $ 47,436 | $ 72,804 |
Total lease expense | $ 18,339 | $ 36,402 | $ 47,436 | $ 72,804 |
LEASES (Details 3)
LEASES (Details 3) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
LEASE | ||
Weighted-average remaining lease term | 4 years 9 months 18 days | 1 year |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 6 Months Ended | ||
Apr. 09, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | |
Right to use assets and lease liability | $ 500,333 | ||
Total lease expense | 51,430 | $ 76,926 | |
Monthly lease payments | $ 4,545 | ||
Right to use assets and lease liability | $ 225,663 | ||
Expiry date | Apr. 30, 2029 | ||
Recognized other income | 32,405 | ||
Minimum [Member] | Lease Agreement [Member] | |||
Total lease expense | 9,905 | ||
Maximum [Member] | Lease Agreement [Member] | |||
Total lease expense | $ 11,018 |
INTELLECTUAL PROPERTY LICENSI_3
INTELLECTUAL PROPERTY LICENSING RIGHTS (Details) | Jun. 30, 2024 USD ($) |
INTELLECTUAL PROPERTY LICENSING RIGHTS | |
2024 | $ 580 |
2025 | 1,169 |
2026 | 1,169 |
2027 | 1,169 |
2028 and after | 4,351 |
Total future amortization of the patents | $ 8,438 |
INTELLECTUAL PROPERTY LICENSI_4
INTELLECTUAL PROPERTY LICENSING RIGHTS (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Oct. 12, 2018 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Intellectual Property [Member] | |||||
Amortization expense | $ 295 | $ 294 | $ 589 | $ 589 | |
Accumulated amortization | $ 6,762 | $ 6,762 | |||
Naltrexone Implant Formulation [Member] | Australia from Trinity Compound Solutions [Member] | |||||
Patent acquired | $ 15,200 | ||||
Estimated useful lives | 13 years |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | ||
Accounts payable | $ 2,830,043 | $ 2,473,457 |
Interest payable on notes payable | 1,341,351 | 1,268,264 |
Interest payable on notes payable, related parties | 547,036 | 478,920 |
Deferred insurance | 36,734 | 0 |
Accrual of loss on contingency | 394,550 | 322,000 |
Interest payable on EIDL loan | 5,598 | 5,675 |
Accrued stock-based compensation | 0 | 43,321 |
Payroll payables | 17,324 | |
Accrued expenses | 157,417 | 57,542 |
Account payable accrued expenses | $ 5,330,053 | $ 4,649,179 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
NOTES PAYABLE | ||
Advances from a third party | $ 21,480 | $ 21,480 |
Promissory note payable dated September 9, 2021 | 200,000 | 200,000 |
Promissory note payable dated October 6, 2022, | 100,000 | 100,000 |
Promissory note payable dated January 25, 2023 | 50,000 | 49,605 |
Promissory note payable dated September 6, 2023, net of debt discount of $21,529 and $80,896, respectively | 128,471 | 69,104 |
Promissory note payable dated November 10, 2023, net of debt discount of $28,969 and $135,985, respectively | 191,031 | 84,015 |
Promissory note payable dated December 8, 2023, net of debt discount of $43,778 and $137,454, respectively | 176,222 | 82,546 |
Promissory note payable dated March 14, 2024, net of debt discount of $86,323 and $0, respectively | 133,677 | 0 |
Total Outstanding notes payable | $ 1,000,881 | $ 606,750 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||
Mar. 14, 2024 | Mar. 08, 2024 | Dec. 08, 2023 | Nov. 10, 2023 | Sep. 06, 2023 | Oct. 06, 2022 | Sep. 09, 2021 | Mar. 25, 2024 | Jan. 25, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Advances from a third party | $ 21,480 | $ 21,480 | $ 21,480 | |||||||||||
Interest payable on notes payable | 1,341,351 | 1,341,351 | 1,268,264 | |||||||||||
Promissory Notes payable | 200,000 | 200,000 | 200,000 | |||||||||||
Interest expense | 317,907 | $ 27,489 | 499,727 | $ 53,529 | ||||||||||
Interest payment | 9,279 | 0 | ||||||||||||
Notes payable, net of debt discounts | $ 1,000,881 | $ 1,000,881 | $ 606,750 | |||||||||||
Common stock price per shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||
Common stock value | $ 9,783 | $ 9,783 | $ 8,674 | |||||||||||
September 9, 2021 [Member] | Third Party [Member] | ||||||||||||||
Interest rate during period | 25% | |||||||||||||
Unsecured promissory note payable | $ 200,000 | |||||||||||||
Promissory Notes payable | 200,000 | 200,000 | 200,000 | |||||||||||
Interest expense | 12,466 | 12,466 | 24,932 | 24,795 | ||||||||||
October 6, 2022 [Member] | Third Party [Member] | ||||||||||||||
Interest rate during period | 12.50% | |||||||||||||
Promissory Notes payable | 100,000 | 100,000 | 100,000 | |||||||||||
Interest expense | 6,233 | 3,117 | 12,466 | 6,199 | ||||||||||
Promissory note issued | $ 100,000 | |||||||||||||
Interest payment | $ 3,125 | 6,250 | 6,250 | |||||||||||
Common stock issued | 26,730 | |||||||||||||
Common stock value | $ 31,350 | |||||||||||||
Debt discount interest expense | 0 | 0 | 15,546 | |||||||||||
January 25, 2023 [Member] | Third Party [Member] | ||||||||||||||
Interest rate during period | 12.50% | |||||||||||||
Interest rate increased | 20% | |||||||||||||
Promissory Notes payable | 50,000 | 50,000 | 50,000 | |||||||||||
Interest expense | 2,493 | $ 1,558 | 4,729 | 2,688 | ||||||||||
Promissory note issued | $ 50,000 | |||||||||||||
Interest payment | $ 1,563 | 1,563 | 1,563 | |||||||||||
Common stock issued | 4,285 | |||||||||||||
Common stock value | $ 6,000 | |||||||||||||
Debt discount interest expense | 395 | $ 2,580 | ||||||||||||
September 6, 2023 [Member] | Third Party [Member] | ||||||||||||||
Interest rate during period | 8% | |||||||||||||
Interest rate increased | 15% | |||||||||||||
Promissory Notes payable | 150,000 | 150,000 | 150,000 | |||||||||||
Interest expense | 2,992 | 5,984 | ||||||||||||
Warrant exercise price | $ 2 | |||||||||||||
Warrant issued | 150,000 | |||||||||||||
Promissory note issued | $ 150,000 | |||||||||||||
Notes payable, net of debt discounts | $ 88,820 | |||||||||||||
Common stock issued | 18,000 | |||||||||||||
Common stock value | $ 30,240 | |||||||||||||
Debt discount interest expense | 29,683 | 59,367 | ||||||||||||
November 10, 2023 [Member] | Third Party [Member] | ||||||||||||||
Interest rate during period | 8% | |||||||||||||
Promissory Notes payable | $ 220,000 | 220,000 | 220,000 | 220,000 | ||||||||||
Interest expense | 6,365 | 10,753 | ||||||||||||
Warrant exercise price | $ 2 | |||||||||||||
Warrant issued | 200,000 | |||||||||||||
Promissory note issued | $ 200,000 | |||||||||||||
Notes payable, net of debt discounts | 140,355 | |||||||||||||
Derivative liability and debt discount | $ 26,730 | |||||||||||||
Common stock issued | 15,000 | 24,000 | ||||||||||||
Common stock price per shares | $ 1 | |||||||||||||
Common stock value | $ 15,000 | $ 36,480 | ||||||||||||
Debt discount interest expense | 64,299 | 122,016 | ||||||||||||
December 8, 2023 [Member] | Third Party [Member] | ||||||||||||||
Interest rate during period | 8% | |||||||||||||
Promissory Notes payable | $ 220,000 | 220,000 | 220,000 | $ 220,000 | ||||||||||
Interest expense | 4,388 | 8,776 | ||||||||||||
Warrant exercise price | $ 2 | |||||||||||||
Warrant issued | 200,000 | |||||||||||||
Promissory note issued | $ 200,000 | |||||||||||||
Notes payable, net of debt discounts | 123,270 | |||||||||||||
Derivative liability and debt discount | $ 26,730 | |||||||||||||
Common stock issued | 24,000 | 15,000 | ||||||||||||
Common stock price per shares | $ 0.89 | |||||||||||||
Common stock value | $ 27,120 | $ 13,350 | ||||||||||||
Debt discount interest expense | 56,910 | 107,026 | ||||||||||||
March 14 2024 [Member] | Third Party [Member] | ||||||||||||||
Interest rate during period | 8% | |||||||||||||
Promissory Notes payable | $ 220,000 | 220,000 | 220,000 | |||||||||||
Interest expense | 12,440 | 13,260 | ||||||||||||
Warrant exercise price | $ 2 | |||||||||||||
Warrant issued | 200,000 | |||||||||||||
Promissory note issued | $ 200,000 | |||||||||||||
Notes payable, net of debt discounts | 115,419 | |||||||||||||
Derivative liability and debt discount | $ 26,730 | |||||||||||||
Common stock issued | 24,000 | |||||||||||||
Common stock value | $ 22,080 | |||||||||||||
Debt discount interest expense | $ 47,039 | $ 55,826 |
NOTES PAYABLE RELATED PARTIES_2
NOTES PAYABLE RELATED PARTIES (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Outstanding notes payables to related parties | $ 865,353 | $ 999,088 |
Lourdes Felix [Member] | ||
Advances from Related parties | 200,243 | 136,273 |
Kent Emry [Member] | ||
Advances from Related parties | 1,500 | 1,500 |
Notes payable to related parties | 663,610 | 663,610 |
Louis C Lucido [Member] | ||
Advances from Related parties | 0 | 125,000 |
Notes payable to related parties | $ 0 | $ 72,705 |
NOTES PAYABLE RELATED PARTIES_3
NOTES PAYABLE RELATED PARTIES (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||
Apr. 03, 2023 | Nov. 01, 2022 | Jun. 08, 2022 | Sep. 09, 2021 | Apr. 24, 2024 | Aug. 29, 2023 | Sep. 30, 2022 | Jan. 22, 2013 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Interest expense - related parties | $ 203,549 | $ 162,825 | $ 390,377 | $ 332,205 | |||||||||
Interest expense amortization | $ 118,554 | 118,554 | $ 237,108 | 233,888 | |||||||||
Common stock shares exchanged | 30,000 | ||||||||||||
Accrued Interest | $ 57,412 | ||||||||||||
Common stock price per shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||
Loss on settlement of debt | $ 0 | (34,338) | $ 0 | (34,338) | |||||||||
Interest expense | 317,907 | 27,489 | 499,727 | 53,529 | |||||||||
Notes payable | 146,426 | 146,426 | |||||||||||
Accumulated Interest Notes Payable | 547,036 | 547,036 | $ 478,920 | ||||||||||
Louis Lucido [Member] | |||||||||||||
Unsecured promissory notes | $ 300,000 | $ 296,426 | |||||||||||
Outstanding Balance | 20,000 | 20,000 | 20,000 | ||||||||||
Interest rate during period | 5% | ||||||||||||
Interest payment | $ 3,750 | ||||||||||||
Outstanding Promissory Note | $ 300,000 | 0 | |||||||||||
Accrued Interest | $ 13,892 | ||||||||||||
Common stock shares issued | 183,606 | 33,000 | |||||||||||
Common stock price per shares | $ 1.71 | ||||||||||||
Interest expense | 0 | 7,687 | 0 | 11,386 | |||||||||
Stock issued during period, value | $ 59,400 | ||||||||||||
Debt discount interest expense | 0 | 488 | 0 | 15,135 | |||||||||
Proceed from advances | 146,426 | ||||||||||||
Louis Lucido [Member] | August 29,2023 [Member] | |||||||||||||
Unsecured promissory notes | $ 150,000 | ||||||||||||
Outstanding Balance | 150,000 | 150,000 | |||||||||||
Interest rate during period | 8% | ||||||||||||
Common stock shares issued | 18,000 | ||||||||||||
Interest expense | 789 | 3,781 | |||||||||||
Stock issued during period, value | $ 29,340 | ||||||||||||
Debt discount interest expense | 48,110 | 77,295 | |||||||||||
Conversion Price | $ 2 | ||||||||||||
Purchase common shares | 150,000 | ||||||||||||
Exercise Price | $ 2 | ||||||||||||
Debt discount | $ 87,724 | ||||||||||||
Louis Lucido [Member] | April 24, 2024 [Member] | |||||||||||||
Common stock shares exchanged | 460,477 | ||||||||||||
Market price | $ 1.18 | ||||||||||||
Outstanding Balance of notes | 0 | 0 | 275,000 | ||||||||||
Accrued Interest | $ 7,858 | ||||||||||||
Director fees | 90,000 | ||||||||||||
Outstanding principal balance on issuance of promissory note | $ 446,426 | ||||||||||||
Lourdes Felix [Member] | |||||||||||||
Due to related party | 200,243 | 200,243 | 136,273 | ||||||||||
Common stock price per shares | $ 1.18 | ||||||||||||
Kent Emry [Member] | |||||||||||||
Unsecured promissory notes | $ 500,000 | $ 200,000 | |||||||||||
Fair value of warrant | $ 214,975 | ||||||||||||
Interest rate during period | 25% | ||||||||||||
Interest rate | 12% | ||||||||||||
Interest expense | 31,164 | $ 31,164 | 62,328 | $ 61,986 | |||||||||
Notes payable | 500,000 | 500,000 | 500,000 | ||||||||||
Due from related party | 1,500 | 1,500 | 1,500 | ||||||||||
Principal payments (monthly) | $ 6,650 | ||||||||||||
Outstanding principal balance on issuance of promissory note | $ 163,610 | $ 163,610 | $ 163,610 | ||||||||||
Warrant issue | 119,617 | 119,617 | 119,617 | ||||||||||
Warrant exercise price | $ 4.14 |
ECONOMIC INJURY DISASTER LOAN_2
ECONOMIC INJURY DISASTER LOAN (Details) | Jun. 30, 2024 USD ($) |
ECONOMIC INJURY DISASTER LOAN | |
2024 | $ 0 |
2025 | 0 |
2026 | 16 |
2027 | 1,598 |
2028 and after | 70,140 |
Total | $ 71,754 |
ECONOMIC INJURY DISASTER LOAN_3
ECONOMIC INJURY DISASTER LOAN (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Accumulated interest on EIDL Loan | $ 5,598 | $ 5,598 | $ 5,675 | ||
Interest expense | 317,907 | $ 27,489 | 499,727 | $ 53,529 | |
April 28, 2020 [Member] | |||||
Advances from SBA | 5,000 | ||||
Economic Injury Disaster Loan assistance program [Member] | |||||
Interest expense | $ 695 | $ 695 | $ 1,390 | 1,382 | |
July 17, 2020 [Member] | Economic Injury Disaster Loan assistance program [Member] | |||||
Balance of principal and interest payable (Period) description | the balance of principal and interest will be payable over thirty (30) years from the date of the promissory note | ||||
Proceeds from EIDL loan | $ 74,300 | ||||
Interest rate | 3.75% | ||||
Payments of interest | $ 1,466 | $ 1,492 | |||
Monthly payments of principal and interest | $ 363 |
ROYALTY OBLIGATIONS NET (Detail
ROYALTY OBLIGATIONS NET (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Interest expense amortization | $ 118,554 | $ 118,554 | $ 237,108 | $ 233,888 |
Non-cash interest expense | $ 7,171,200 | |||
Expected life of the arrangement | 15 years | |||
Royalty agreements description | each party would purchase shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”), in the aggregate amount of $3,000,000 at a purchase price of $15.00 per share (the “Purchase Price”), for a total of 200,000 shares of Common Stock; and (ii) the Company shall pay each (a) a total of $37.50 from the gross revenue derived from each of its weight loss treatments sold in the United States starting on the first (1st) day that the first unit of the treatment is sold (the “Initial Sales Date”) and ending on the third (3rd) anniversary of the Initial Sales Date; and (b) a total of $25.00 from the gross revenue derived from each of its weight loss treatments | |||
Ownership percentage | 50% | |||
Minimum [Member] | Joseph Galligan [Member] | ||||
Ownership percentage | 15% | |||
Maximum [Member] | Joseph Galligan [Member] | ||||
Ownership percentage | 20% |
STOCKHOLDERS EQUITY (DEFICIT) (
STOCKHOLDERS EQUITY (DEFICIT) (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Preferred stock, shares authorized | 600,000 | 600,000 | 600,000 | |||||
Common Stock, Shares Issued | 9,783,074 | 9,783,074 | 8,674,029 | |||||
Common Stock, Shares Outstanding | 9,783,074 | 9,783,074 | 8,674,029 | |||||
Common share issued for conversion of promissory notes | 30,000 | |||||||
Loss on settlement of debt | $ 0 | $ (34,338) | $ 0 | $ (34,338) | ||||
Common share issued for services, value | 28,350 | |||||||
Common stock issued for services rendered, amount | $ 114,779 | $ 149,625 | $ 62,291 | $ 63,144 | ||||
Accrued Interest | $ 57,412 | |||||||
Board of Directors [Member] | ||||||||
Common Stock, Shares Issued | 24,000 | 4,285 | 24,000 | 4,285 | ||||
Common share issued for services | 360,998 | 71,961 | ||||||
Common share issued for conversion of promissory notes | 121,918 | 33,697 | ||||||
Rendered Value | $ 264,404 | $ 125,435 | ||||||
Common share issued for services, value | 85,154 | 58,949 | ||||||
Common stock issued for services rendered, amount | $ 11,867 | 6,000 | ||||||
Subscription Agreement [Member] | ||||||||
Gross Proceeds | $ 600,000 | |||||||
Common stock issued | 342,592 | |||||||
Price per shares | $ 1.75 | |||||||
Q2 Subscription Agreement [Member] | ||||||||
Received from related party | $ 300,000 | |||||||
Common stock issued | 174,409 | |||||||
Price per shares | $ 1.72 | |||||||
Q4 Lucido Subscription Agreement [Member] | ||||||||
Common stock issued | 9,374 | |||||||
Series A Convertible Preferred Stock [Member] | ||||||||
Preferred stock Series, shares issued | 80,000 | 80,000 | 80,000 | 80,000 | ||||
Preferred stock Series, shares outstanding | 80,000 | 80,000 | 80,000 | 80,000 | ||||
Description of Convertible preferred stock | each share of Series A preferred stock is entitled to one thousand (1,000) votes and is convertible into one share of common stock. 30,000 shares of Series A Preferred Stock are owned by management. The Series A Preferred Stock is not entitled to dividends and there are no liquidation rights associated with Series A. Each share of Series A Preferred Stock may be converted, at the option of the holder, into one (1) fully paid and nonassessable share of Common Stock, par value $0.001 | |||||||
Series B Convertible Preferred Stock [Member] | ||||||||
Preferred stock Series, shares issued | 160,000 | 160,000 | 160,000 | 160,000 | ||||
Preferred stock Series, shares outstanding | 160,000 | 160,000 | 160,000 | 160,000 | ||||
Description of Convertible preferred stock | each share of Series B stock is entitled to two thousand (2,000) votes and is convertible into one share of common stock. 120,000 shares of Series B Preferred Stock are owned by management. The Series B Preferred Stock is not entitled to dividends and there are no liquidation rights associated with Series B. Each share of Series B Preferred Stock may be converted, at the option of the holder, into one (1) fully paid and nonassessable share of Common Stock, par value $0.001 | |||||||
Common Stocks [Member] | ||||||||
Accounts payable | $ 48,000 | $ 48,000 | ||||||
Common share issued for conversion of accounts payable | 24,000 | |||||||
Common share issued for conversion of promissory notes | 460,477 | 183,606 | ||||||
Common share issued for conversion of director fee | 224,196 | |||||||
Loss on settlement of debt | $ (34,338) | |||||||
Common share issued for conversion, value | 313,892 | |||||||
Common share issued for conversion of accounts payable, value | 48,000 | |||||||
Director fees | $ 90,000 | $ 265,000 | ||||||
Accrued Interest | $ 7,858 | |||||||
Price per shares | $ 1.18 | $ 1.18 | ||||||
Outstanding principal balance on exchange of promissory note | $ 446,426 | $ 446,426 |
STOCK OPTIONS AND WARRANTS (Det
STOCK OPTIONS AND WARRANTS (Details) | 6 Months Ended |
Jun. 30, 2024 | |
Expected term (years) | 5 years |
Expected dividends | 0% |
Warrants [Member] | |
Risk-free interest rate | 4.38% |
Expected term (years) | 4 years |
Expected volatility | 157.11% |
Expected dividends | 0% |
Minimum [Member] | |
Risk-free interest rate | 3.93% |
Expected volatility | 149.49% |
Maximum [Member] | |
Risk-free interest rate | 4.33% |
Expected volatility | 153.16% |
STOCK OPTIONS AND WARRANTS (D_2
STOCK OPTIONS AND WARRANTS (Details 1) | 6 Months Ended |
Jun. 30, 2024 USD ($) $ / shares shares | |
Number of Shares | |
Outstanding, Beginning | shares | 891,443 |
Expired | shares | (19,167) |
Grants | shares | 122,911 |
Outstanding, Ending | shares | 995,187 |
Exercisable at Ending | shares | 994,979 |
Weighted Average Exercise Price | |
Outstanding, Beginning | $ / shares | $ 7.41 |
Expired | $ / shares | 6.92 |
Grants | $ / shares | 0.67 |
Outstanding, Ending | $ / shares | 6.59 |
Exercisable at Ending | $ / shares | $ 6.59 |
Weighted Average Remaining Contractual Term | |
Outstanding, Beginning | 3 years |
Grants | 4 years 9 months 18 days |
Outstanding at Ending | 2 years 9 months 18 days |
Exercisable at Ending | 2 years 9 months 18 days |
Aggregate Intrinsic Value | |
Outstanding at Ending | $ | $ 0 |
Exercisable at Ending | $ | $ 0 |
STOCK OPTIONS AND WARRANTS (D_3
STOCK OPTIONS AND WARRANTS (Details 2) | 6 Months Ended |
Jun. 30, 2024 shares | |
Exercisable, Number of Options | 994,979 |
Options Exercisable [Member] | |
Exercisable, Number of Options | 994,979 |
Weighted average remaining life in years | 2 years 9 months 18 days |
Options Exercisable [Member] | 0.01-2.50 [Member] | |
Exercisable, Number of Options | 515,713 |
Weighted average remaining life in years | 2 years 9 months 18 days |
Options Exercisable [Member] | 2.51-5.00 [Member] | |
Exercisable, Number of Options | 54,474 |
Weighted average remaining life in years | 1 year 6 months |
Options Exercisable [Member] | 5.01 And Up [Member] | |
Exercisable, Number of Options | 424,792 |
Weighted average remaining life in years | 3 years |
Options Outstanding [Member] | |
Weighted average remaining life in years | 2 years 9 months 18 days |
Number of options | 995,187 |
Options Outstanding [Member] | 0.01-2.50 [Member] | |
Weighted average remaining life in years | 2 years 9 months 18 days |
Number of options | 515,713 |
Options Outstanding [Member] | 2.51-5.00 [Member] | |
Weighted average remaining life in years | 1 year 6 months |
Number of options | 54,474 |
Options Outstanding [Member] | 5.01 And Up [Member] | |
Weighted average remaining life in years | 3 years |
Number of options | 425,000 |
STOCK OPTIONS AND WARRANTS (D_4
STOCK OPTIONS AND WARRANTS (Details 3) | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Exercisable, Number of Options | 994,979 |
Warrants Outstanding [Member] | |
Exercise price | $ / shares | $ 3.16 |
Weighted average remaining life in years | 2 years 3 months 18 days |
Number of outstanding | 1,765,856 |
Warrants Outstanding [Member] | 3.16 [Member] | |
Exercise price | $ / shares | $ 3.16 |
Weighted average remaining life in years | 2 years 3 months 18 days |
Number of outstanding | 1,765,856 |
Warrants Exercisable [Member] | |
Exercisable, Number of Options | 1,765,856 |
Exercise price | $ / shares | $ 3.16 |
Weighted average remaining life in years | 2 years 3 months 18 days |
Warrants Exercisable [Member] | 3.16 [Member] | |
Exercisable, Number of Options | 1,765,856 |
Exercise price | $ / shares | $ 3.16 |
Weighted average remaining life in years | 2 years 3 months 18 days |
STOCK OPTIONS AND WARRANTS (D_5
STOCK OPTIONS AND WARRANTS (Details 4) | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Outstanding, Beginning | 891,443 |
Granted | 122,911 |
Outstanding, Ending | 995,187 |
Exercisable at Ending | 994,979 |
Outstanding, Beginning | $ / shares | $ 7.41 |
Weighted Average Exercise Price, Granted | $ / shares | 0.67 |
Outstanding, Ending | $ / shares | $ 6.59 |
Warrants [Member] | |
Outstanding, Beginning | 1,565,856 |
Granted | 200,000 |
Outstanding, Ending | 1,765,856 |
Exercisable at Ending | 1,765,856 |
Outstanding, Beginning | $ / shares | $ 3.31 |
Weighted Average Exercise Price, Granted | $ / shares | 2 |
Outstanding, Ending | $ / shares | 3.16 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 3.16 |
STOCK OPTIONS AND WARRANTS (D_6
STOCK OPTIONS AND WARRANTS (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Apr. 04, 2023 | Mar. 29, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Stock price | $ 0.49 | $ 0.49 | ||||
Warrant exercise price | $ 4 | $ 4 | ||||
Stock compensation expense | $ 30,480 | $ 15,953 | $ 78,930 | $ 32,027 | ||
Common stock shares issued | 30,000 | |||||
Granted | 122,911 | |||||
Warrants [Member] | ||||||
Granted | 200,000 | |||||
DeCsepel 2022 Subscription Agreement | Warrants [Member] | ||||||
Purchase of common stock, shares | 200,000 | |||||
Aggregate warrant amount | $ 83,552 | $ 83,552 | ||||
Exercise price | $ 2 | |||||
Plan termination term | 4 years | |||||
2014 Equity Incentive Plan [Member] | ||||||
Common stock shares issued | 290,879 | |||||
Granted | 145,000 | |||||
Option grantable | 145,879 | 145,879 | ||||
Percent of issued and outstanding shares | 20% | |||||
2016 Equity Incentive Plan [Member] | ||||||
Common stock shares issued | 656,250 | |||||
Granted | 330,350 | |||||
Option grantable | 325,900 | 325,900 | ||||
2018 Equity Incentive Plan [Member] | ||||||
Common stock shares issued | 450,000 | |||||
Granted | 380,008 | |||||
Option grantable | 69,992 | 69,992 | ||||
2022 Equity Incentive Plan [Member] | ||||||
Common stock shares issued | 695,000 | |||||
Granted | 190,960 | |||||
Option grantable | 504,040 | 504,040 | ||||
Consultant [Member] | ||||||
Granted | 122,911 | |||||
Stock option | $ 75,135 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 1 Months Ended | ||
Jul. 28, 2016 | Jun. 30, 2024 | Dec. 31, 2023 | |
Related party payables | $ 1,173,120 | $ 1,683,453 | |
BioCorRx Pharmaceuticals [Member] | |||
Ownership percentage held by Company | 75.80% |
CONCENTRATIONS (Details Narrati
CONCENTRATIONS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Sales Revenue [Member] | Customer Three [Member] | |||||
Concentration risk, percentage | 100% | ||||
Sales Revenue [Member] | One Customer [Member] | |||||
Concentration risk, percentage | 100% | ||||
Accounts receivable, net | $ 740 | ||||
Sales Revenue [Member] | Six Customer [Member] | |||||
Concentration risk, percentage | 89% | ||||
Accounts Receivable [Member] | Customer Two [Member] | |||||
Concentration risk, percentage | 66% | 72% |
NON CONTROLLING INTEREST (Detai
NON CONTROLLING INTEREST (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Net loss attributable to the non-controlling interest | $ (17,337) | $ (2,040) | ||
BioCorRx Pharmaceuticals, Inc [Member] | ||||
Net loss | $ (67,251) | $ (1,849) | $ (68,800) | $ (3,296) |
Average Non-controlling interest percentage of profit/losses | 24.20% | 24.20% | 24.20% | 24.20% |
Net loss attributable to the non-controlling interest | $ (16,275) | $ (448) | $ (16,650) | $ (798) |
Joseph DeSanto MD [Member] | ||||
Net loss | $ (1,072) | $ (1,881) | $ (1,964) | $ (3,550) |
Average Non-controlling interest percentage of profit/losses | 35% | 35% | 35% | 35% |
Net loss attributable to the non-controlling interest | $ (375) | $ (658) | $ (687) | $ (1,242) |
NON CONTROLLING INTEREST (Det_2
NON CONTROLLING INTEREST (Details 1) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
NON CONTROLLING INTEREST | ||
Beginning Balance | $ (128,834) | $ (125,257) |
Net loss attributable to the non-controlling interest | (17,337) | (2,040) |
Ending Balance | $ (146,171) | $ (127,297) |
NON CONTROLLING INTEREST (Det_3
NON CONTROLLING INTEREST (Details Narrative) | 1 Months Ended | |
Oct. 31, 2020 | Jul. 28, 2016 | |
BioCorRx Pharmaceuticals, Inc [Member] | ||
Ownership percentage held by company | 75.80% | |
Ownership percentage held by former officers | 24.20% | |
Joseph DeSanto MD [Member] | ||
Descirption of management services agreement | a management fee equal to 65% of the Medical Corporation’s gross collected monthly revenue |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | ||||||||
Jan. 05, 2024 | Oct. 04, 2023 | Feb. 02, 2023 | Jan. 11, 2022 | Apr. 24, 2024 | May 30, 2019 | Jun. 30, 2024 | Dec. 31, 2023 | Sep. 30, 2019 | Dec. 10, 2015 | |
First payment owed | $ 145,000 | $ 0 | ||||||||
Accrued Interest | 57,412 | |||||||||
Recognized loss on contingency | (322,503) | |||||||||
Consultant remuneration per month | 3,500 | |||||||||
Costs and attorneys' fees | $ 332,503 | |||||||||
Compensation for services, description | As of May 14, 2021, the Company has entered into four consulting agreements. In compensation for services: (i) one consultant shall receive a renumeration amount of $10,000-$12,500 per month and has earned 1% of the Company’s majority owned subsidiary, BioCorRx Pharmaceuticals as of May 7, 2021 based on FDA clearance of Company’s IND application; consulting agreement terminated in April 2021 (ii) one consultant shall receive common stock equivalent to $1,375 on the last day of each month; (iii) two consultants shall receive common stock equivalent to $3,750 on the last day of each month; and (iv) one consultant shall receive a remuneration amount of $3,500 per month | |||||||||
Charles River Laboratories, Inc. [Member] | ||||||||||
Remaining commitment | $ 28,936 | |||||||||
Payment of amended consideration | $ 3,024,476 | |||||||||
BICX Holding Company LLC [Member] | ||||||||||
Common stock issued upon convertible debt | 2,227,575 | |||||||||
Convertible Promissory Note | $ 4,160,000 | |||||||||
Conversion agreement description | Pursuant to the Conversion Agreement, BICX has agreed that the Total Interest Payment (as defined in the Conversion Agreement) that would have been due under the Note, in the amount of $1,138,157, will be reflected on the Company’s financial statements as an amount due and owing to the Investor to be repaid within twelve (12) months of the closing of the Public Offering, or if the Public Offering is terminated or abandoned prior to closing, then on or before such date that is no later than twelve (12) months from the date of such termination or abandonment. As of June 30, 2024, the Public Offering has not yet been abandoned by the Company | |||||||||
Issuance price | $ 2 | |||||||||
Orange County Research Center [Member] | ||||||||||
Consideration amount | $ 657,640 | $ 503,089 | ||||||||
Pellecome [Member] | ||||||||||
Attorney's fees | $ 235,886 | |||||||||
Attorney's fees received or awarded | $ 222,933 | $ 222,933 | ||||||||
Interest rate | 10% | |||||||||
Pellecome [Member] | January 5, 2024 [Member] | ||||||||||
Attorney's fees received or awarded | $ 332,503 | |||||||||
Consultant [Member] | ||||||||||
Renumeration amount | $ 1,417 | |||||||||
Issue of common stock to consultant | 3,000 | |||||||||
Alpine Creek [Member] | ||||||||||
Royalty due | $ 91 | $ 91 | ||||||||
Total consideration amount | 1,531,926 | $ 1,531,926 | ||||||||
Payables to Alpine Creek | $ 1,215,000 | |||||||||
Paid to Alpine Creek | $ 1,620,000 | |||||||||
Payable commitment description | On any other proprietary implant distribution, that excludes the “treatment”, for alcohol and opioid addiction and for which no other payment is due, the Company shall pay 2.5% of the Company’s gross profit for implant distribution not to exceed $100 per sale. On or about January 1, 2021, Mr. Galligan acquired from Alpine Creek the rights to the royalty agreement by and between the Company and Alpine Creek. As of June 30, 2024 and December 31, 2023, there are no payments due | |||||||||
Payable per treatment sold | $ 100 | |||||||||
Profit holding percentage | 50% | |||||||||
Mr Lucido [Member] | ||||||||||
Accrued Interest | $ 7,858 | |||||||||
Mr Lucido [Member] | January 5 2024 [Member] | ||||||||||
Annual compensation | $ 200,000 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 6 Months Ended | |||
Jun. 30, 2024 | Jul. 11, 2024 | Jul. 02, 2024 | Dec. 31, 2023 | |
Common stock share issued | 9,783,074 | 8,674,029 | ||
Common stock value | $ 9,783 | $ 8,674 | ||
Amendment Agreements [Member] | Subsequent Event [Member] | ||||
Common stock share issued | 100,000 | |||
Common stock value | $ 52,000 | |||
Three Stock Grant Award Agreements [Member] | Subsequent Event [Member] | ||||
Common stock share issued | 950,000 | |||
Common stock value | $ 446,500 | |||
President [Member] | ||||
Common share issued for services | 57,447 | |||
Common stock value | $ 29,875 |