Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Nov. 23, 2020 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Boston Therapeutics, Inc. | |
Entity Central Index Key | 0001473579 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 111,131,373 | |
Entity Filer Number | 000-54586 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | DE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash | $ 52,113 | $ 6,701 |
Prepaid expenses and other current assets | 4,468 | 12,662 |
Inventory, net | 3,774 | 3,909 |
Total current assets | 60,355 | 23,272 |
Property and equipment, net | 509 | |
Total assets | 60,355 | 23,781 |
Current liabilities: | ||
Accounts payable | 450,597 | 458,175 |
Accounts payable – related party | 302,302 | 152,302 |
Accrued expenses and other current liabilities | 940,636 | 963,263 |
Accrued expenses – related party | 1,444,587 | 1,495,905 |
Deferred revenue | 104,782 | 104,782 |
Convertible note payable, related party, net of discount | 1,402,000 | 1,402,000 |
Convertible note payable | 200,000 | 250,000 |
Notes payable – related parties | 2,198,429 | 1,948,429 |
Note payable – marketing agreement | 450,000 | 450,000 |
Derivative liability | 5,902 | 9,451 |
Warrant liability | 359,751 | 461,744 |
Total current liabilities | 7,858,986 | 7,696,051 |
Total liabilities | 7,858,986 | 7,696,051 |
COMMITMENTS AND CONTINGENCIES (Note 13) | ||
Stockholders' deficit: | ||
Preferred stock, value | ||
Series A preferred stock | 83 | 83 |
Common stock, $0.001 par value, 2,000,000,000 shares authorized, 111,131,373 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively. | 111,131 | 111,131 |
Additional paid-in capital | 19,322,864 | 19,322,864 |
Accumulated deficit | (27,232,709) | (27,106,348) |
Total stockholders' deficit | (7,798,631) | (7,672,270) |
Total liabilities and stockholders' deficit | $ 60,355 | $ 23,781 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized | 5,000,000 | 5,000,000 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, issued | 111,131,373 | 111,131,373 |
Common stock, outstanding | 111,131,373 | 111,131,373 |
Series A Preferred stock | ||
Preferred stock, shares designated | 150,000 | 150,000 |
Preferred Stock, issued | 82,500 | 82,500 |
Preferred stock, outstanding | 82,500 | 82,500 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Revenue | $ 3,093 | $ 4,085 |
Operating expenses: | ||
Direct expenses | 4,902 | 6,912 |
Research and development | 488,450 | |
Sales and marketing | 541 | 30,941 |
General and administrative | 131,361 | 213,701 |
Total operating expenses | 136,804 | 740,004 |
Operating loss | (133,711) | (735,919) |
Other income (expenses): | ||
Interest expense | (98,192) | (85,602) |
Change in fair value of warrant liability | 101,993 | (136,605) |
Change in fair value of derivative liabilities | 3,549 | 6,246 |
Total other income (expenses) | 7,350 | (215,961) |
Net loss | $ (126,361) | $ (951,880) |
Net loss per share- basic and diluted | $ 0 | $ (0.01) |
Weighted average shares outstanding basic and diluted | 111,131,373 | 111,131,373 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Stockholders’ Deficit (Unaudited) - USD ($) | Common Stock | Preferred Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2018 | $ 110,131 | $ 83 | $ 19,156,138 | $ (23,412,269) | $ (4,145,917) |
Balance, shares at Dec. 31, 2018 | 110,131,373 | 82,500 | |||
Stock based compensation | 13,593 | 13,593 | |||
Issuance of common stock in exchange for consulting services | $ 1,000 | 21,900 | 22,900 | ||
Issuance of common stock in exchange for consulting services (in shares) | 1,000,000 | ||||
Net loss | (951,880) | (951,880) | |||
Balance at Mar. 31, 2019 | $ 111,131 | $ 83 | 19,191,631 | (24,364,149) | (5,061,304) |
Balance, shares at Mar. 31, 2019 | 111,131,373 | 82,500 | |||
Balance at Dec. 31, 2019 | $ 111,131 | $ 83 | 19,322,864 | (27,106,348) | (7,672,270) |
Balance, shares at Dec. 31, 2019 | 111,131,373 | 82,500 | |||
Net loss | (126,361) | (126,361) | |||
Balance at Mar. 31, 2020 | $ 111,131 | $ 83 | $ 19,322,864 | $ (27,232,709) | $ (7,798,631) |
Balance, shares at Mar. 31, 2020 | 111,131,373 | 82,500 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (126,361) | $ (951,880) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 509 | 38,856 |
Stock-based compensation | 13,593 | |
Amortization of discount on debt and deferred financing costs | 23,094 | |
Change in fair value of warrant liability | (101,993) | 136,605 |
Change in fair value of derivative liabilities | (3,549) | (6,246) |
Issuance of common stock for consulting services | 22,900 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 384 | |
Inventory | 135 | (6,624) |
Prepaid expenses and other current assets | 8,194 | 472,077 |
Accounts payable | (7,578) | 41,433 |
Accounts payable – related party | 150,000 | |
Accrued expenses | (193,604) | |
Accrued expenses – related party | 119,659 | 161,460 |
Net cash used in operating activities | (154,588) | (54,348) |
Cash flows from investing activities: | ||
Net cash provided by investing activities | ||
Cash flows from financing activities: | ||
Cash received from issuance of related party notes payable | 250,000 | 50,000 |
Repayments of convertible notes payable | (50,000) | |
Net cash provided by financing activities | 200,000 | 50,000 |
Net (decrease) increase in cash | 45,412 | (4,348) |
Cash, beginning of period | 6,701 | 12,467 |
Cash, end of period | 52,113 | 8,119 |
Cash paid during the period for: | ||
Interest | 7,627 | |
Income taxes |
General Organization and Busine
General Organization and Business | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL ORGANIZATION AND BUSINESS | 1. GENERAL ORGANIZATION AND BUSINESS Boston Therapeutics, Inc. (the "Company") was formed as a Delaware corporation on August 24, 2009 under the name Avanyx Therapeutics, Inc. On November 10, 2010, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Boston Therapeutics, Inc., a New Hampshire corporation ("BTI") providing for the merger of BTI into the Company with the Company being the surviving entity (the "Merger"), the issuance by the Company of 4,000,000 shares of common stock to the stockholders of BTI in exchange for 100% of the outstanding common stock of BTI, and the change of the Company's name to Boston Therapeutics, Inc. On February 12, 2018, the Company acquired CureDM Group Holdings LLC ("CureDM"), for 47,741,140 shares of common stock of which 25,000,000 were delivered at closing and 22,741,140 were to be delivered in four equal tranches of 5,685,285 each upon the achievement of specific milestones. See Note 12. The Company's primary business is the development, manufacture and commercialization of therapeutic drugs with a focus on complex carbohydrate chemistry to address unmet medical needs in diabetes and inflammatory diseases. We have brought one product, SUGARDOWN®, to market and have begun to make initial sales. We are currently focused on the development of two additional drug products: BTI-320, a non-systemic, non-toxic, tablet for reduction of post-meal blood glucose in people living with diabetes that is fully developed, and IPOXYN, an injectable anti-necrosis, anti-hypoxia drug that we are currently developing. Due to the lack of adequate funding, the Company has not done any work with respect to IPOXYN to date. Going Concern The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has limited cash resources, recurring cash used in operations and operating losses history. As shown in the accompanying consolidated financial statements, the Company has an accumulated deficit of approximately $27.2 million as of March 31, 2020 and used cash in operations of $154,588 during the three months ended March 31, 2020. These factors among others, raise substantial doubt about the Company's ability to continue as a going concern. The Company has incurred recurring operating losses since inception as it has worked to bring its SUGARDOWN ® ® There can be no assurance that we will be successful in accomplishing our objectives. Without such additional capital, we may be required to cease operations. The accompanying financial statements do not include any adjustments that might result should the Company be unable to continue as a going concern. |
Summary of Significant Accounti
Summary of Significant Accounting Practices | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES Basis of Presentation The financial statements have been prepared in conformity with accounting principles generally accepting in the United States of America ("US GAAP"). Principles of Consolidation The consolidated financial statements include the Company and its wholly owned subsidiary, CureDM, from the date of acquisition. All significant intercompany transactions are eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP 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. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of 90 days or less at the time of acquisition to be cash equivalents. The Company maintains its cash in institutions insured by the Federal Deposit Insurance Corporation. The Company had no cash equivalents at March 31, 2020 and December 31, 2019. Revenue Recognition For revenue from product sales, the Company recognizes revenue in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 606 ("ASC 606"). A five-step analysis must be met as outlined in ASC 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 defers any revenue for which the product has not been delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required. The Company generates revenues from sales of SUGARDOWN®. In practice, the Company has not experienced or granted significant returns of product. Shipping fees charged to customers are included in revenue and shipping costs are included in costs of sales. The Company generates revenue from royalties pursuant to a licensing and manufacturing agreement with Advance Pharmaceutical Company Limited ("APC"), whereby the licensee sells and distributes territory licensed products, excluding those manufactured and supplied by the Company in the territory. APC is a related party as a director and significant stockholder of the Company is an owner and director of APC. The Company did not recognize any revenue from royalties from APC during the three months ended March 31, 2020 and 2019 respectively. Accounts Receivable Accounts receivable is stated at the amount management expects to collect from outstanding balances. Management establishes a reserve for doubtful accounts based on its assessment of the current status of individual accounts. Balances that remain outstanding after management has used reasonable collection efforts are written off against the allowance. There were no allowances for doubtful accounts as of March 31, 2020 and December 31, 2019. Inventory Inventory consists of raw materials, work-in-process and finished goods of SUGARDOWN®. Inventories are stated at the lower of cost (weighted average cost method) or market, not in excess of net realizable value. The Company adjusts the carrying value of its inventory for excess and obsolete inventory. The Company continues to monitor the valuation of its inventory. Property and Equipment Property and equipment is depreciated using the straight-line method over the following estimated useful lives: Asset Category Estimated Useful Life Office Furniture and Equipment 5 years Computer Equipment and Software 3 years The Company begins to depreciate assets when they are placed in service. The costs of repairs and maintenance are expensed as incurred; major renewals and betterments are capitalized. Upon sale or retirement, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the statement of operations. For the three months ended March 31, 2020 and 2019, the Company recorded depreciation expense of $509 and $406, respectively. Intangible Assets Intangible assets consist of identifiable finite-lived assets acquired in business acquisitions. Acquired intangible assets are recorded at fair value on the date of acquisition and are amortized over their economic useful lives on a straight line basis. Impairment of Long-lived Assets The Company reviews long-lived assets, which include the Company's intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying amounts of the assets may not be fully recoverable. Future undiscounted cash flows of the underlying assets are compared to the assets' carrying values. Adjustments to fair value are made if the sum of expected future undiscounted cash flows is less than book value. To date, no adjustments for impairment have been made. The Company performed its impairment review of intangible assets for the year ended December 31, 2019 and concluded that intangibles were impaired at December 31, 2019. The Company recorded impairment of intangibles in the amount of $367,181 for the year ended December 31, 2019. The Company has no intangible assets at March 31, 2020. Loss per Share Basic net loss per share is computed based on the net loss for the period divided by the weighted average actual shares outstanding during the period. Diluted net loss per share is computed based on the net loss for the period divided by the weighted average number of common shares and common equivalent shares outstanding during each period unless the effect of such common equivalent shares would be anti-dilutive. Common stock equivalents represent the dilutive effect of the assumed exercise of certain outstanding stock options using the treasury stock method. The weighted average number of common shares for the three months ended March 31, 2020 did not include 9,184,000, 38,458,320, 39,046,937 and 8,250,000 for options, warrants and shares to be issued upon conversion of notes payable and Series A Preferred Stock, respectively, because of their anti-dilutive effect. The weighted average number of common shares for the three months ended March 31, 2019 did not include 9,594,000, 38,583,320, 39,516,617 and 8,250,000 for options, warrants and shares to be issued upon conversion of notes payable and Series A Preferred Stock, respectively, because of their anti-dilutive effect. Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or be settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion of the gross deferred tax asset will not be realized. The Company records interest and penalties related to income taxes as a component of provision for income taxes. The Company did not recognize any interest and penalty expense for the three months ended March 31, 2020 and 2019. Advertising Costs Advertising costs are expensed as incurred and are reported as a component of operating expenses in the sales and marketing expenses in the statements of operations. The Company did not incur any advertising costs for either three month period ended March 31, 2020 and 2019, respectively. Research and Development Costs Research and development expenditures are charged to the statement of operations as incurred. Such costs include proprietary research and development activities, purchased research and development, and expenses associated with research and development contracts, whether performed by the Company or contracted with independent third parties. Fair Value of Financial Instruments Fair values determined by Level 1 inputs utilize observable data such as quoted prices in active markets. Fair values determined by Level 2 inputs utilize data points other than quoted prices in active markets that are observable either directly or indirectly. Fair values determined by Level 3 inputs utilize unobservable data points in which there is little or no market data, which require the reporting entity to develop its own assumptions. The Company's financial instruments consist of cash, accounts receivable, prepaid expenses, accounts payable, accrued expenses, and notes payable. The carrying value of cash, accounts receivable, prepaid expenses, accounts payable and accrued expenses approximates fair value due to their short-term nature using level 1 and level 2 inputs as defined above. The carrying value of the notes payable as of March 31, 2020 and December 31, 2019, evaluated using level 2 inputs defined above based on quoted market prices on rates available to the Company for debt with similar terms and maturities, approximates the fair value. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk are principally cash. The Company places its cash and cash equivalents in highly rated financial institutions. The Company maintains cash balances with financial institutions that occasionally exceed federally insured limits. The Company has not experienced any losses related to these balances, and management believes its credit risk to be minimal. Convertible Instruments U.S. GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. An exception to this rule is when the host instrument is deemed to be conventional, as that term is described under applicable ASC 480-10. When the Company has determined that the embedded conversion options should not be bifurcated from their host instruments, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. Common Stock Purchase Warrants and Other Derivative Financial Instruments The Company classifies as equity any contracts that (i) require physical settlement or net-share settlement or (ii) provide the Company with a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement) providing that such contracts are indexed to the Company's own stock. The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the Company's control) or (ii) gives the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). The Company assesses classification of its common stock purchase warrants and other free standing derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required. The Company's free standing derivatives consisted of warrants to purchase common stock that were issued in connection with the issuance of debt and of embedded conversion options with senior convertible debentures. The Company evaluated these derivatives to assess their proper classification in the balance sheet as of March 31, 2020 and December 31, 2019 using the applicable classification criteria enumerated under ASC 815-Derivatives and Hedging. The Company determined that certain embedded conversion and/or exercise features do not contain fixed settlement provisions. The convertible debentures contain a conversion feature such that the Company could not ensure it would have adequate authorized shares to meet all possible conversion demands. As such, the Company was required to record the debt and warrant derivatives which do not have fixed settlement provisions as liabilities and mark to market all such derivatives to fair value at the end of each reporting period. Stock-Based Compensation Stock–based compensation, including grants of employee and non-employee stock options and modifications to existing stock options, is recognized in the income statement based on the estimated fair value of the awards . The determination of the fair value of share-based payment awards utilizing the Black-Scholes model is affected by the stock price and a number of assumptions, including expected volatility, expected life, risk-free interest rate and expected dividends. The expected life of the awards is estimated based on the simplified method. The risk-free interest rate assumption is based on observed interest rates appropriate for the terms of our awards. The dividend yield assumption is based on history and expectation of paying no dividends. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Stock-based compensation expense is recognized in the financial statements on a straight-line basis over the requisite service period, based on awards that are ultimately expected to vest. The Company grants stock options to non-employee consultants from time to time in exchange for services performed for the Company. Equity instruments granted to non- employees are subject to periodic revaluation over their vesting terms. In general, the options vest over the contractual period of the respective consulting arrangement and, therefore, the Company revalues the options periodically and records additional compensation expense related to these options over the remaining vesting period. Recent Accounting Pronouncements In February 2016, the FASB established ASC Topic 842, Leases (Topic 842), by issuing ASU No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use (ROU) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations. The Company adopted the new standard on January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company has elected the 'package of practical expedients', which permit it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter is not applicable to the Company. The new standard did not have a material effect on the Company's consolidated Financial statements as the Company does not have any leases that meet the requirements for recognition. There are various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to have a material impact on the Company's financial position, results of operations or cash flows. |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORY | 3. INVENTORY Inventory consist of material, labor and manufacturing overhead and are recorded at the lower of cost, using the weighted average cost method, or net realizable value. The components of inventory at March 31, 2020 and December 31, 2019, net of inventory reserves, were as follows: 2020 2019 Finished goods $ 3,774 $ 3,909 The Company periodically reviews quantities of inventory on hand and compares these amounts to expected usage of each particular product or product line. The Company records, as a charge to cost of sales, any amounts required to reduce the carrying value to net realizable value. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | 4. INTANGIBLE ASSETS The SUGARDOWN® technology and patent applications, which were obtained through the acquisition of BTI in 2010, were being amortized on a straight-line basis over their estimated useful lives of 14 years. The BTI-420 technology and patent applications, which were obtained through the acquisition of CureDM in 2018, were being amortized on a straight-line basis over their estimated useful lives of 5 years. Intangible assets consist of the following at March 31, 2020 and December 31, 2019: 2020 2019 SUGARDOWN® technology and patent applications $ 1,134,122 $ 1,134,122 Less accumulated amortization (1,134,122 ) (1,134,122 ) Intangible assets, net $ - $ - Amortization expense was $0 and $38,450 for the three months ended March 31, 2020 and 2019, respectively. The Company performed its impairment review of intangible assets for the year ended December 31, 2019 and concluded that intangibles were impaired at December 31, 2019. The Company recorded impairment of intangibles in the amount of $367,181 for the year ended December 31, 2019. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 5. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES The following table represents the major components of accrued expenses and other current liabilities at March 31, 2020 and December 31, 2019: 2020 2019 Accrued payroll $ 188,716 $ 188,716 Professional fees 62,054 89,027 Accrued consulting fees 400,000 400,000 Interest 96,376 92,003 Accrued expense reimbursement and other 193,490 193,517 Total $ 940,636 $ 963,263 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company measures the fair value of financial assets and liabilities based on the guidance of ASC 820 "Fair Value Measurements and Disclosures" which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 - quoted prices in active markets for identical assets or liabilities Level 2 - quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 - inputs that are unobservable based on an entity's own assumptions, as there is little, if any, related market activity (for example, cash flow modeling inputs based on assumptions) Financial liabilities as of March 31, 2020 measured at fair value on a recurring basis are summarized below: March 31, Quoted Prices Significant Significant Derivative liability $ 5,902 $ — $ — $ 5,902 Warrant liability 359,751 — — 359,751 Total $ 365,653 $ — $ — $ 365,653 Financial liabilities as of December 31, 2019 measured at fair value on a recurring basis are summarized below: December 31, Quoted Prices Significant Significant Derivative liability $ 9,451 $ — $ — $ 9,451 Warrant liability 461,744 — — 461,744 Total $ 471,195 $ — $ — $ 471,195 The Company determined that certain conversion/exercise option related to a convertible note and issued warrants did not have fixed settlement provisions and are deemed to be derivative financial instruments, since the conversion/exercise prices was subject to reset adjustment should the Company issue any option to acquire the Company's common stock lower than the conversion /exercise price. Accordingly, the Company was required to record such conversion/exercise options as a liability and mark such derivative to fair value each reporting period. Such instrument was classified within Level 3 of the valuation hierarchy. The fair value of the conversion/exercise options were calculated using a Black-Scholes formula with the following weighted average assumptions during the three months ended March 31, 2020 and the year ended December 31, 2019. No options were converted or exercised during the year ended December 31, 2019 or for the three month period ended March 31, 2020. The risk-free interest rate is the United States Treasury rate on the measurement date having a term equal to the remaining contractual life of the instrument. The volatility is a measure of the amount by which the Company's share price has fluctuated or is expected to fluctuate. The dividend yield is 0% as the Company has not made any dividend payment and has no plans to pay dividends in the foreseeable future. Level 3 liabilities are valued using unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the derivative liabilities. For fair value measurements categorized within Level 3 of the fair value hierarchy, the Company's Chief Financial Officer, who reports to the Chief Executive Officer, determine its valuation policies and procedures. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company's Chief Financial Officer and are approved by the Chief Executive Officer. Level 3 financial liabilities consist of the derivative liabilities for which there is no current market for these securities such that the determination of fair value requires significant judgment or estimation. Changes in fair value measurements categorized within Level 3 of the fair value hierarchy are analyzed each period based on changes in estimates or assumptions and recorded as appropriate. Significant observable and unobservable inputs include stock price, exercise price, annual risk free rate, term, and expected volatility, and are classified within Level 3 of the valuation hierarchy. An increase or decrease in volatility or interest free rate, in isolation, can significantly increase or decrease the fair value of the derivative liabilities. Changes in the values of the derivative liabilities are recorded as a component of other income (expense) on the Company's statements of operations. The following tables set forth a summary of the changes in the fair value of the Company's Level 3 financial liabilities that are measured at fair value on a recurring basis using significant unobservable input for the three months ended March 31, 2020 and 2019: Debt Warrant Derivative Liability Balance, December 31, 2019 $ 9,451 $ 461,744 Aggregate amount of derivative instruments issued — — Transferred in due to conversions — — Change in fair value of derivative liabilities (3,549 ) (101,993 ) Balance, March 31, 2020 $ 5,902 $ 359,751 Debt Warrant Derivative Liability Balance, December 31, 2018 $ 54,242 $ 925,806 Aggregate amount of derivative instruments issued — — Transferred in due to conversions — — Change in fair value of derivative liabilities (6,246 ) 136,605 Balance, March 31, 2019 $ 47,996 $ 1,062,411 |
Convertible Notes Payable
Convertible Notes Payable | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES PAYABLE | 7. CONVERTIBLE NOTES PAYABLE In August and September 2016, the Company issued senior convertible debentures for an aggregate of $1,600,000 (the "Convertible Debentures") in exchange for an aggregate net cash proceeds of $1,327,300, net of financing costs. The Convertible Debentures have a stated interest rate of 6% per annum payable quarterly beginning June 30, 2017 and were due two years from the date of issuance, the latest due September 15, 2018 and are convertible into shares of the Company's common stock at the option of the holder at a conversion price of $0.075 with certain anti-dilutive (reset) provisions and are subject to forced conversion if either i) the volume weighted average common stock price for each of any 10 consecutive trading days equals or exceeds $0.50, or (ii) the Company's elects to lists a class of securities on a national securities exchange. As long as the convertible notes remain outstanding, the Company is restricted from incurring any indebtedness or liens, except as permitted (as defined), amend its charter in any matter that materially effects rights of noteholders, repay or repurchase more than de minimis number of shares of common stock other than conversion or warrant shares, repay or repurchase all or any portion of any indebtedness or pay cash dividends. In connection with the issuance of the Convertible Debentures, the Company issued an aggregate of 16,000,000 warrants to purchase the Company's common stock at $0.10 per share, expiring five years from the date of issuance, the latest being September 15, 2021. These warrants contain a cashless exercise and certain anti-dilutive (reset) provisions. The Company determined that certain conversion/exercise option related to a convertible note and issued warrants did not have fixed settlement provisions and are deemed to be derivative financial instruments due to price protection features present in the conversion/ exercise price that are not consistent with a fixed for fixed model. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivative as of the issuance date of the debenture and warrants and to re-measure the derivatives at fair value as of each subsequent reporting date. The Company recognized the value attributable to the conversion feature of the convertible debenture and issued warrants of $2,203,336 and together with financing costs of $272,700 (aggregate of $2,476,036) as a discount against the notes up to $1,600,000 with the excess of $876,036 charged to current period interest. The Company valued the conversion option and the warrants using the Black-Scholes pricing model as described in Note 6. The debt discount was amortized over the note's maturity period as interest expense. During the first quarter of 2020, the Company paid the note of one of the two remaining investors of $50,000. The Company also paid accrued interest on that note totaling $7,627 For the three months ended March 31, 2020 and 2019, the Company amortized $0 and $30,332, respectively, of debt discount to operations as interest expense. Convertible notes payable consist of the following at March 31, 2020 and December 31, 2019: 2020 2019 Principal balance $ 200,000 $ 250,000 Debt discount — — Deferred finance costs — — Outstanding, net of debt discount $ 200,000 $ 250,000 |
Marketing Agreement
Marketing Agreement | 3 Months Ended |
Mar. 31, 2020 | |
Marketing Agreement [Abstract] | |
MARKETING AGREEMENT | 8. MARKETING AGREEMENT On June 26, 2018, the Company entered into a License Agreement with Level Brands, Inc. (NYSE: LEVB), an innovative licensing, marketing and brand management company with a focus on lifestyle-based products which includes an exclusive license to the kathy ireland kathy ireland As compensation, the Company will provide Level Brands with the following: ● A marketing fee of $850,000, for development of video content and an electronic press kit which will be used ongoing to support product marketing. This fee is paid with a promissory note of $450,000 and a number of shares of stock of the Company valued at $400,000, based on the closing price on the day prior to the effective date; ● Quarterly fees for the first two years of up to $100,000 and issuance of 100,000 shares each quarter, based on sales volumes. The Company has the right to make all the stock payments in cash; and ● a royalty of 5% of the gross licensed marks sales up to $10,000,000, 7.5% royalty on sales from $10,000,000 to $50,000,0000 and 10% on sales over $50,000,000, payable monthly as well as a 1% of all revenue for all Company products as of the date hereof. The Note Payable of $450,000 bears interest at 8% and matures December 31, 2019, unless the Company raises $750,000 through Level Brands prior to that date in which case the Note is to be repaid in full including accrued interest. Accrued interest at March 31, 2020 and December 31, 2019 totaled $63,493 and $54,493, respectively. As of March 31, 2020, the Company has not issued the $400,000 of common stock. Level Brands sued the Company for non-performance under the contract. The matter was taken to arbitration with both parties claiming non performance under the contract. In October 2019, the arbitration was dismissed without prejudice. See Note 12. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | 9. STOCKHOLDERS' EQUITY The Company is authorized to issue up to 5,000,000 shares of its $0.001 par value preferred stock and up to 2,000,000,000 shares of its $0.001 par value common stock. During the year ended December 31, 2013, the Company amended its certificate of incorporation to increase the number of common shares from 100,000,000 to 200,000,000. The amendment went into effect September 7, 2013. On January 9, 2018, the Company's Board of Directors voted to approve an increase in authorized common stock shares outstanding from 200 million shares to 2 billion shares of the Company's common stock. This increase was approved by the shareholders in the first quarter of 2018. Series A Preferred Stock The Company has designated 150,000 shares of its preferred stock as Series A Preferred Stock. Each share of Series A Preferred Stock has a stated value of $10. The Series A Preferred Stock is convertible into shares of the Company's common stock by dividing the stated value by a conversion price of $0.10 per share. The Series A Preferred Stock shall have voting rights on an as converted basis (subject to limitations) and liquidation preference for each share of Series A Preferred Stock at an amount equal to the stated value per share. As of March 31, 2020 and December 31, 2019, the Company has 82,500 shares of Series A Preferred Stock outstanding. On August 14, 2017, the Company entered into Securities Purchase Agreements with two accredited investors. In connection with these agreements, the Company issued 45,000 shares of Series A Preferred Stock and warrants to acquire 9,000,000 shares of common stock. The shares of Series A Preferred Stock are convertible, at any time at the option of the holder, into an aggregate of 4,500,000 shares of the Company's common stock. The Warrants shall be exercisable for a period of five years at an exercise price of $0.15 per share. The Company recognized the value attributable to the conversion feature of the issued warrants of $650,421 as a charge against additional paid in capital up to $450,000 with the excess of $200,421 charged to change in fair value of warrant liability during the year ended December 31, 2017. The Company valued the warrants using the Black-Scholes pricing model as described in Note 6. On October 24, 2017, the Company entered into Securities Purchase Agreements with an accredited investor. In connection with the agreement, the Company issued 10,000 shares of Series A Preferred Stock and warrants to acquire 2,000,000 shares of common stock. The shares of Series A Preferred Stock are convertible, at any time at the option of the holder, into an aggregate of 1,000,000 shares of the Company's common stock. The Warrants shall be exercisable for a period of five years at an exercise price of $0.15 per share. The Company recognized the value attributable to the conversion feature of the issued warrants of $93,312 as a charge against additional paid in capital. The Company valued the warrants using the Black-Scholes pricing model as described in Note 6. On February 2, 2018, the Company entered into Securities Purchase Agreements with four accredited investors. In connection with these agreements, the Company issued 27,500 shares of Series A Preferred Stock and warrants to acquire 5,500,000 shares of common stock in consideration of $275,000. The shares of Series A Preferred Stock are convertible, at any time at the option of the holder, into an aggregate of 2,750,000 shares of the Company's common stock. The Warrants shall be exercisable for a period of five years at an exercise price of $0.15 per share. The Company recognized the value attributable to the conversion feature of the issued warrants of $226,833 as a charge against additional paid in capital. The Company valued the warrants using the Black-Scholes pricing model as described in Note 6. Common Stock On January 10, 2019, the Company issued 1,000,000 shares of its common stock in exchange for consulting services amounting to $22,900 pursuant to a consulting agreement entered into and approved by the Board of Directors on November 23, 2018. Common Stock Warrants The Company accounts for warrants as either equity instruments or liabilities depending on the specific terms of the warrant agreement. As of March 31, 2020, the Company had 38,458,320 warrants outstanding which are all classified as equity instruments and are fully exercisable. The following tables summarize the Company's common stock warrants activity for the three months ended March 31, 2020 and 2019: Warrants Weighted Aggregate Outstanding as of December 31, 2019 38,458,320 $ 0.16 $ — Granted — — — Exercised — — — Forfeited/Canceled — — — Outstanding as of March 31, 2020 38,458,320 $ 0.16 $ — Warrants Weighted Aggregate Outstanding as of December 31, 2018 38,999,990 $ 0.17 $ — Granted — — — Exercised — — — Forfeited/Canceled (416,670 ) 1.00 — Outstanding as of March 31, 2019 38,583,320 $ 0.16 $ — The aggregate intrinsic value represents the pretax intrinsic value, based on the warrants with an exercise price less than the Company's stock price of $0.01 as of March 31, 2020, which would have been received by the warrant holders had those warrant holders exercised their warrants as of that date. |
Stock Option Plan and Stock-Bas
Stock Option Plan and Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK OPTION PLAN AND STOCK-BASED COMPENSATION | 10. STOCK OPTION PLAN AND STOCK-BASED COMPENSATION During the year ended December 31, 2010, the Company adopted a stock option plan entitled "The 2010 Stock Plan" (2010 Plan) under which the Company may grant options to purchase up to 5,000,000 shares of common stock. On September 7, 2013, the 2010 plan was amended to increase the number of shares of common stock issuable under the 2010 Plan to 7,500,000. As of March 31, 2020 and December 31, 2019, there were 250,000 and 250,000 options outstanding under the 2010 Plan, respectively. During the year ended December 31, 2011, the Company adopted a non-qualified stock option plan entitled "2011 Non-Qualified Stock Plan" (2011 Plan) under which the Company may grant options to purchase 2,100,000 shares of common stock. In December 2012, the 2011 Plan was amended to increase the number of shares of common stock issuable under the 2011 Plan to 12,000,000 shares. During the period ended March 31, 2013, the 2011 Plan was amended to increase the number of shares of common stock issuable under the 2011 Plan to 17,500,000. As of March 31, 2020 and December 31, 2019, there were 8,934,000 and 8,934,000 options outstanding under the 2011 Plan. Under the terms of the stock plans, the Board of Directors shall specify the exercise price and vesting period of each stock option on the grant date. Vesting of the options is typically three to four years and the options typically expire in five to ten years. On March 1, 2018 the Board of Directors approved a reduction in the exercise price of 6,000,000 stock options issued to the Company's CEO on August 22, 2016. The First tranche of 2,000,000 will be exercisable at $0.10 per share and the second and third tranches of 2,000,000 will be exercisable at $0.15 per share. The remainder of the terms remain unchanged. On August 22, 2016, the Company granted 6,000,000 options to purchase its common shares to its new CEO as a part of his employment agreement. The options consist of 3 separate tranches with different exercise prices and vest upon reaching certain milestones. All 6 million options have a five year life. The first 2,000,000 shares have an exercise price of $0.20 per share and vest upon the Company raising at least $1 million in financing. The second 2,000,000 shares carry an exercise price of $0.40 per share and vest upon the Company raising $5 million in financing. The third 2,000,000 shares carry an exercise price of $0.60 per share and vest upon the Company entering into a significant corporate alliance for substantial marketing and selling of the Company's product portfolio. In addition, the Company amended 1,500,000 stock options previously granted to the new CEO to extend the expiration date to August 22, 2026. These options were all previously vested. No stock options were issued under either plan during the three months ended March 31, 2020 or 2019. For the three months ended March 31, 2020 and 2019, the Company recorded stock-based compensation expense of $0 and $13,593, respectively, in connection with share-based payment awards. As of March 31, 2020 and 2019, there was $0 and $131,398, respectively of unrecognized compensation expense related to non-vested stock option awards. The following table summarizes the Company's stock option activity during the three months ended March 31, 2020: Shares Exercise Weighted Outstanding as of December 31, 2019 9,184,000 $ 0.10 – 1.21 $ 0.36 Granted — — — Exercised — — — Options forfeited/cancelled — — — Outstanding as of March 31, 2020 9,184,000 $ 0.10 – 1.21 $ 0.36 The following table summarizes the Company's stock option activity during the three months ended March 31, 2019: Shares Exercise Weighted Outstanding as of December 31, 2018 9,594,000 $ 0.10 – 1.21 $ 0.36 Granted — — — Exercised — — — Options forfeited/cancelled 100,000 0.10 0.10 Outstanding as of March 31, 2019 9,494,000 $ 0.10 – 1.21 $ 0.37 The following table summarizes information about stock options that are vested or expected to vest at March 31, 2020: Options Outstanding Exercisable Options Exercise Price Number of Options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Number of Options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value $ 0.10 3,500,000 $ 0.10 3.54 $ — 3,500,000 $ 0.10 3.79 $ — 0.15 4,000,000 0.15 1.40 — — 0.15 — 0.18 934,000 0.18 3.23 — 934,000 0.18 3.23 — 0.20 150,000 0.20 4.99 — 150,000 0.20 4.99 — 0.37 58,000 0.37 2.43 — 58,000 0.37 2.43 — 0.42 63,000 0.42 0.75 — 63,000 0.42 0.75 — 0.69 100,000 0.69 3.95 — 100,000 0.69 3.95 — 1.21 379,000 1.21 3.78 — 379,000 1.21 3.78 — $ 0.10-1.21 9,184,000 $ 0.29 3.35 $ — 5,184,000 $ 0.27 3.35 $ — The following table sets forth the status of the Company's non-vested stock options as of March 31, 2020 and December 31, 2019: Number of Weighted- Non-vested as of December 31, 2019 4,000,000 $ 0.50 Granted — — Forfeited — — Vested — — Non-vested as of March 31, 2020 4,000,000 $ 0.50 The weighted-average remaining contractual life for options exercisable at March 31, 2019 is 3.35 years. At March 31, 2020 the Company has 8,566,000 and 7,250,000 options available for grant under the 2011 Plan and 2010 Plan, respectively. The aggregate intrinsic value for fully vested, exercisable options was $0 at March 31, 2020. The aggregate intrinsic value of options exercised during the three months ended March 31, 2020 was $0 as no options were exercised. The actual tax benefit realized from stock option exercises during the three months ended March 31, 2019 was $0 as no options were exercised. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 11 RELATED PARTY TRANSACTIONS Through December 31, 2011, a founder of the company and significant shareholder, Dr. David Platt advanced $257,820 to the Company to fund start-up costs and operations. Advances by Dr. Platt carry an interest rate of 6.5% and were due on June 29, 2013. On May 7, 2012, Dr. Platt and the Company's former President and also a significant shareholder entered into promissory notes to advance to the Company an aggregate of $40,000. The notes accrue interest at 6.5% per year and were due June 30, 2013. The outstanding notes of $297,820 were amended each year to extend the maturity dates. Effective June 30, 2015, the outstanding notes for Dr. Platt were amended to extend the maturity dates to June 30, 2017. During 2017, the Company made principal payments totaling $20,000 to the former President of the Company, reducing the total balance of the outstanding notes to $277,820. As of March 31, 2020 and December 31, 2019, the remaining notes to Dr. Platt are in default and are classified as current liabilities. On June 24, 2011, the Company entered into a definitive Licensing and Manufacturing Agreement (the "Agreement") with Advance Pharmaceutical Company Ltd. ("Advance Pharmaceutical"), a Hong Kong-based privately-held company. Under terms of the Agreement, the Company manufactures and supplies product in bulk for Advance Pharmaceutical. Advance Pharmaceutical is responsible for the packaging, marketing and distribution of SUGARDOWN® in certain territories within Asia. In addition, APC is able to purchase the SUGARDOWN product directly from the US manufacturer and sell it within APC's distribution area. In these situations, the Company is entitled to royalty payments from APC of 10% of the total sales price paid upon shipment of the product. Advance Pharmaceutical, through a wholly owned subsidiary, has purchased an aggregate 1,799,800 shares of the Company's common stock in conjunction with the Company's private placement offerings during the years ended December 31, 2012 and 2011. The shares were purchased on the same terms as the other participants acquiring shares in the respective offerings. Conroy Chi-Heng Cheng is a director of Advance Pharmaceutical and joined the Company's Board in December 2013. No revenue was generated pursuant to the Agreement for the three months ended March 31, 2020 or 2019. In December 2013, the Board of Directors agreed to indemnify Dr. Platt for legal costs incurred in connection with an arbitration (now concluded) initiated before the American Arbitration Association by Galectin Therapeutics, Inc. (formerly named Pro-Pharmaceuticals, Inc.) for which Dr. Platt previously served as CEO and Chairman. Galectin sought to rescind or reform the Separation Agreement entered into with Dr. Platt upon his resignation from Galectin to remove a $1.0 million milestone payment which Dr. Platt asserted he was entitled to receive and to be repaid all separation benefits paid to Dr. Platt. The Company initially capped the amount for which it would indemnify Dr. Platt at $150,000 in December 2013 and Dr. Platt agreed to reimburse the indemnification amounts paid by the Company should he prevail in the arbitration. The Board decided to indemnify Dr. Platt after considering a number of factors, including the scope of the Company's existing indemnification obligations to officers and directors and the potential impact of the arbitration on the Company. In May 2014, the Board approved a $50,000 increase in indemnification support, solely for the payment of outside legal expenses. The Company recorded a total of $182,697 in costs associated with Dr. Platt's indemnification, of which $119,401 was expensed in the year ended December 31, 2013 and of which $63,296 was expensed in the year ended December 31, 2014. In July 2014, the arbitration was concluded in favor of Dr. Platt, confirming the effectiveness of the separation agreement and payment was made to Dr. Platt in July 2014. On March 2, 2015, the Board of Directors voted to reduce the amount that Dr. Platt was required to reimburse the Company to $82,355 and to offset this amount against interest accrued in respect of the outstanding note payable to Dr. Platt. In addition, the Board determined that Dr. Platt would be charged interest related to the $182,697 indemnification payment since funds were received by Dr. Platt in July 2014. The Board of Directors concluded the foregoing constituted complete satisfaction of Dr. Platt's indemnification by the Company. Accordingly, the Company recorded the reduction in accrued interest through equity during the year ended December 31, 2015. As of March 31, 2020 and December 31, 2019, $86,065 and $80,815, respectively, of accrued interest in connection with the related party promissory notes, had been included in accrued expenses and other current liabilities on the accompanying balance sheet. During September 2015, the Company entered into a securities purchase agreement with CJY. Pursuant to this agreement, the Company issued to CJY a convertible promissory note in the principal amount of $750,000. The Note was amended during the fourth quarter of 2015 to $1,200,000. During 2016, the Note was amended to $1,752,000. This Note provided necessary bridge financing to the Company prior to a financing of $1,600,000 completed in the third quarter of 2016. Interest accrues at the rate of 10% per annum and is due upon maturity of the note in August 2018. The Company may prepay this Note and any accrued interest at any time. At any time amounts outstanding under the CJY Note are convertible into the Company's common stock, in whole or in part, at the option of the lender, at a conversion price of $0.05 per share. A beneficial conversion feature of $1,642,000 was calculated and capped at the value of the note pursuant to ASC 470 - 20. The beneficial conversion feature was fully amortized during 2018. No amortization was recorded during the three months ended March 31, 2020 and 2019, respectively. On October 6, 2017, in accordance with the terms of the Securities Purchase Agreement, CJY Holdings converted $500,000 of Notes in exchange for 10,000,000 shares of the Company's common stock. The cost basis for the shares issued was $0.05. Upon conversion, a loss on extinguishment of $15,354 was charged to additional paid in capital. On October 16, 2017, CJY holdings converted an additional $50,000 of the Notes along with $150,000 of accrued interest into 4,000,000 shares of the Company's common stock. The cost basis for the shares issued was $0.05. Upon conversion, a loss on extinguishment of $155,459 was charged to additional paid in capital. The CJY Holdings Notes are currently in default and are classified as current liabilities. On April 26, 2017, Boston Therapeutics, Inc. (the "Company") entered into Securities Purchase Agreement with CJY Holdings Limited ("CJY") providing for the sale by the Company to CJY of 6% Subordinated Convertible Debenture in an amount of up to $1,000,000 (the "Debentures"). In addition to the Debentures, CJY will also receive stock purchase warrants (the "Warrants") to acquire 500,000 shares of common stock of the Company for every $50,000 in Debentures purchased. The Warrants are exercisable for five years at an exercise price of $0.10 and may be exercised on a cashless basis. The Company may only use the proceeds for the payment of services or materials associated with clinical trials. The Company closed on $200,000 in financing and issued the related Debentures and Warrants under this agreement on April 26, 2017. The Debentures bear interest at 6% per annum and mature two years from issuance. CJY may elect to convert all or part of the Debentures, plus accrued interest, at any time into shares of common stock of the Company at a conversion price of $0.10 per share. Interest on the Debentures is payable in cash or shares of common stock at $0.10 per share quarterly commencing June 30, 2017. The conversion price is subject to adjustment for stock dividends and stock splits. In addition, if after the original issue date of the Debentures, either (i) the volume weighted average price equals or exceeds $0.50 for 10 consecutive trading days or (ii) the Company elects to list a class of securities on a national securities exchange, the Company may cause CJY to convert all or part of the then outstanding principal amount of the Debentures plus, accrued but unpaid interest, liquidated damages and other amounts owed. CJY agreed to restrict its ability to convert the Debentures and exercise the Warrants and receive shares of common stock such that the number of shares of common stock held by CJY after such conversion or exercise does not exceed 4.99% of the then issued and outstanding shares of common stock. A beneficial conversion feature of $186,939 was calculated and capped at the value of the note pursuant to ASC 470 - 20. The Company recorded amortization of the beneficial conversion feature as interest expense in the amount of $0 and $23,094 during the three months ended March 31, 2020 and 2019, respectively. In connection with this borrowing, the Company also issued warrants to purchase 2,000,000 shares of the Company's common stock at $0.10 per share. Convertible notes payable – related party consist of the following at March 31, 2020 and December 31, 2019: 2020 2019 Principal balance $ 1,402,000 $ 1,402,000 Debt discount - - Outstanding, net of debt $ 1,402,000 $ 1,402,000 On June 12, 2018, the Company issued a note payable for $100,000 to World Technology East II Limited ("WTE2"). WTE2 is a Hong Kong company owned by Carl W. Rausch, the Company's former CEO. The WTE2 Note is an unsecured obligation of the Company. Principal and interest under the WTE2 Note is due and payable June 12, 2019, however, in the event that the Company raises in excess of $1,000,000 in equity financing, then the Company will use part of its proceeds to pay off the WTE2 Note. During the fourth quarter of 2018, the Company increased the amount of the note payable to $174,500 with borrowings of $44,500 on October 4, $15,000 on November 5 and $15,000 on December 7. During the first quarter of 2019, the Company increased the amount of the note payable to $224,500 with borrowings of $30,000 on January 17 and $20,000 on February 11. During the second quarter of 2019, the Company increased the amount of the note payable to $324,500 with borrowings of $50,000 on April 4 and $50,000 on May 31. On July 31, 2019, the Company borrowed $50,000 increasing the total amount of notes payable to $374,500. On November 18, 2019, the Company borrowed $30,000 increasing the total amount of notes payable to $404,500 which remain outstanding at December 31, 2019. The notes payable are due on various dates through November 18, 2020 including $224,500 which came due on during 2019 and the first quarter of 2020 and are currently in default and are classified as current liabilities. Interest accrues on the WTE2 Notes at the rate of 10.0% per annum. Accrued interest at March 31, 2020 and December 31, 2019 totaled $47,628 and $37,516, respectively. On September 26, 2018, the Company issued a note payable for $305,937 to CJY Holdings, Ltd ("CJY"). CJY is a Hong Kong company owned by Conroy Chi- Heng Cheng, a director of the Company. The CJY Note is an unsecured obligation of the Company. Principal and interest under the CJY Note is due and payable September 26, 2019. During the second quarter of 2019, the Company increased the amount of the note payable to $595,081 with a borrowing of $289,144 on April 12. During the third quarter of 2019, the Company increased the amount of the note payable to $947,108 with a borrowing of $157,671 on July 2 and $194,356 on July 31. During the third quarter of 2019, the Company increased the amount of the note payable to $1,266,108 with a borrowing of $319,000 on November 29. The notes are due on various dates through October 29, 2020, including the $305,937 note which was due on September 26, 2019 and is currently in default. Interest accrues on the CJY Note at the rate of 10% per annum. Accrued interest at March 31, 2020 and December 31, 2019 totaled $118,448 and $80,546, respectively. Notes payable-related party consist of the following at March 31, 2020 and December 31, 2019: 2020 2019 Founder $ 277,821 $ 277,821 CJY Holdings Ltd 1,516,108 1,266,108 World Technology East Ltd II 404,500 404,500 $ 2,198,429 $ 1,948,429 Included in accounts payable at both March 31, 2020 and December 31, 2019 are amounts due shareholders, officers and directors of the Company in the amounts of $302,302 and $152,302, respectively. Included in accrued expenses at both March 31, 2020 and December 31, 2019 are amounts due shareholders, officers and directors of the Company in the amounts of $1,444,587 and $1,495,905, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 12. COMMITMENTS AND CONTINGENCIES Pending litigation In March 2019, we were served with notification of complaint filed by CureDM Inc. as agent for the members of CureDM Group Holdings, LLC filed with the Supreme Court of the State of New York County of New York regarding breach of contract and other matters relating to their desire to unwind the acquisition of CureDM Group Holdings LLC according to the original Contribution Agreement. The complaint was withdrawn by CureDM, Inc. in December 2019. The Company is continuing to work with the representatives from CureDM Inc. to settle this claim and unwind the Contribution Agreement. In addition to the above matter, we are also in a dispute with Level Brands, Inc. regarding a License Agreement dated June 21, 2018 (JAMS Ref. No.: 1220061261). The Company filed an Answer to Complaint and Counter-complaint on June 25, 2019. Both parties are claiming non-performance under the License Agreement. The matter was scheduled for arbitration in October 2019. In October 2019, the arbitration was dismissed without prejudice. On October 16, 2019 the Company received a Summons and Complaint filed by Microcap Headlines Inc. against the Company in the Supreme Court of the United States of New York County of Suffolk claiming damages of $18,000 and the costs and disbursements of the action. The Company filed an Answer on November 15, 2019. The Company intends to vigorously defend against the claim. Leases The Company leased office space at 354 Merrimack Street, Lawrence, MA 01843 on a month to month basis. The Company ended the lease on August 31, 2019. No further obligation exists. The Company recognized rent expense of $0 and $1,200 for the three months ended March 31, 2020 and 2019, respectively. Contingent share liability On February 12, 2018, the Company entered into a Contribution Agreement with the members of CureDM Group Holdings, LLC, a limited liability company, all of which except five are accredited investors ("CureDM Group Members") pursuant to which the CureDM Group Members agreed to contribute 100% of the outstanding securities of CureDM Group in exchange for an aggregate of 47,741,140 shares of common stock of the Company (the "BTHE Contribution Shares") of which 25,000,000 BTHE Contribution Shares were delivered at closing and 22,741,140 BTHE Contribution Shares (the "Milestone BTHE Shares") shall be delivered in four equal tranches of 5,685,285 BTHE Contribution Shares each upon the achievement of specific milestones (the "CureDM Group Contribution"). The closing of the CureDM Group Contribution occurred on February 12, 2018. Under the agreement, BTI was to use its best efforts to secure a binding commitment to close an equity financing with net proceeds of at least $1,000,000 within 180 days after the closing date. The use of the equity financing proceeds would be designated as working capital for at least, but not limited to the synthesis of HIP2B clinical material. In the event the equity financing is not closed by the required date, then, if both BTI and CureDM, Inc. mutually agree, (i) this Acquisition Agreement will then be null and void and have no further force and effect and all other rights and liabilities of the parties will terminate without any liability of any party to any other party and (ii) each party shall have released the other party. Further, if such event occurs, the CureDM Members will return all shares to BTI for cancellation. Subsequent to June 30, 2018, the 180 day time period elapsed and the Company did not raise the required funding. The Company believes the milestones noted above will not be achieved and that the Milestone BTHE Shares will not be issued. Therefore, the Company has not established a contingent liability to recognize the milestone shares obligations. Employment Agreement The Company entered into an Employment Agreement with Carl W. Rausch pursuant to which Mr. Rausch was engaged as the Chief Executive Officer of the Company for a period of three years. Mr. Rausch was initially required to relocate from Hong Kong to the United States. However, due to his continued efforts in Hong Kong, the Company and Mr. Rausch, in March 2017, have amended the employment agreement to remove the provision requiring Mr. Rausch to relocate to the United States. Mr. Rausch received a signing bonus of $60,000 and an annual salary of $224,000, which will be increased to $264,000 upon Mr. Rausch relocating to the United States. Further, upon the Company being listed on a national exchange, Mr. Rausch's salary will be increased by $20,000. The Company granted Mr. Rausch a Stock Option (the "Rausch Option") to acquire an aggregate of 6,000,000 shares of common stock of the Company, exercisable for five (5) years, subject to vesting. The Rausch Option shall be earned and vested in three equal tranches of 2,000,000 upon the Company raising $1,000,000 in financing, the Company raising $5,000,000 in financing and the Company entering into a significant corporate alliance for substantial marketing and selling of the Company's product portfolio. The initial tranche shall be exercisable at $0.20 per share, the second tranche will be $0.40 per share and the third tranche shall be $0.60 per share, which such vesting is subject to Mr. Rausch's continued employment as an executive with the Company as of the vesting date. In addition, as additional consideration for Mr. Rausch's commitment to the Company, the stock options previously granted to Mr. Rausch shall be amended to extend the expiration date to the ten year anniversary of signing date and such options shall be considered fully vested. Mr. Rausch shall be entitled to certain raises and milestones subject to the achievement of certain milestones to be agreed upon. In the event the Employment Agreement is terminated prior to the expiration of the term by the Company without cause or by Mr. Rausch with good reason, the Company shall pay Mr. Rausch an amount equal to Mr. Rausch's accrued but unpaid base salary and earned but unpaid bonus prior to the termination date, reimbursement for any reimbursable business expenses and Mr. Rausch's salary for a period of one year. On December 12, 2019, Mr. Rausch resigned as the Chief Executive Officer and Board Chairman. In January 2020, Mr. Rausch agreed to remain a paid advisor to the Company. Under the agreement, Mr. Rausch's options were not canceled as a result of his voluntary termination On March 1, 2018 the Board of Directors approved a reduction in the exercise price of 6,000,000 stock options issued to the Company's CEO on August 22, 2016. The First tranche of 2,000,000 will be exercisable at $0.10 per share and the second and third tranches of 2,000,000 will be exercisable at $0.15 per share. The remainder of the terms remain unchanged. On February 12, 2018, Loraine Upham was appointed as Chief Operating Officer. The Company and Ms. Upham entered into an Executive Retention Agreement pursuant to which Ms. Upham was engaged as Chief Operating Officer with an annual salary of $200,000. However, Ms. Upham's salary shall accrue until the Company has raised a minimum of $1,250,000. Ms. Upham is eligible for bonuses as determined by the Board of Directors. These include a bonus of $20,000 is to be paid upon the Company successfully raising $1,250,000 through the sale of equity; an annual performance bonus based on milestones related to clinical progress, partnering and fund raising success to be established by the Board of Directors or the Compensation Committee, if in existence on an annual basis. In addition, Ms. Upham received a stock option to purchase 4,000,000 shares of common stock under the Company's Amended and Restated 2011 Stock Incentive Plan, vesting over three (3) years, one third on the first anniversary of the effective date and the balance in equal quarterly installments. The exercise price of the initial tranche of options (1,333,334 shares) shall be $0.06 per share, the second tranche (1,333,333 shares) shall be $0.10 per share and the final tranche (1,333,333 shares) shall be $0.20 per share. The term of the options is five years. Ms. Upham resigned from the Company on November 30, 2018. As a result of her resignation all of her stock options were terminated and returned to the option pool. Her accrued salary and vacation of $188,716 will be paid once the funding is obtained. Consulting Agreement On April 1, 2018, the Company entered into a Corporate Advisory Agreement with a consultant. Services commenced May 1, 2018 for a term of one year with an option to renew for an additional six months. Compensation pursuant to the agreement is as follows: (1) a monthly fee of $6,500 paid in cash, and (2) 3,000,000 shares of restricted common stock of which 1,400,000 shares were deliverable upon execution of the agreement and the remaining 1,600,000 delivered in monthly installments of 400,000 shares as long as the agreement has not been terminated. Included in accrued expenses is the monthly fee totaling $110,500 and the fair value of the shares of common stock totaling $211,600, as the shares have not been issued as of March 31, 2020. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 13. SUBSEQUENT EVENTS The Company has evaluated events and transactions that occurred from March 31, 2020 through the date of the filing for possible disclosure and recognition in the financial statements. On April 2, 2020, the company borrowed $200,000 from a related party. The Note bears interest at 10% and is due in twelve months. On May 20, 2020, the Company borrowed $50,000 from a related party. The Note bears interest at 10% and is due in twelve months. On June 10, 2020, the Company borrowed $60,000 from a related party. The Note bears interest at 10% and is due in twelve months. On June 30, 2020, the Company borrowed $20,000 from a related party. The Note bears interest at 10% and is due in twelve months. On July 10, 2020, the Company borrowed $80,000 from a related party. The Note bears interest at 10% and is due in twelve months. On August 4, 2020, the Company borrowed $150,000 from a related party. The Note bears interest at 10% and is due in twelve months. |
Summary of Significant Accoun_2
Summary of Significant Accounting Practices (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The financial statements have been prepared in conformity with accounting principles generally accepting in the United States of America ("US GAAP"). |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the Company and its wholly owned subsidiary, CureDM, from the date of acquisition. All significant intercompany transactions are eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of 90 days or less at the time of acquisition to be cash equivalents. The Company maintains its cash in institutions insured by the Federal Deposit Insurance Corporation. The Company had no cash equivalents at March 31, 2020 and December 31, 2019. |
Revenue Recognition | Revenue Recognition For revenue from product sales, the Company recognizes revenue in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 606 ("ASC 606"). A five-step analysis must be met as outlined in ASC 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 defers any revenue for which the product has not been delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required. The Company generates revenues from sales of SUGARDOWN®. In practice, the Company has not experienced or granted significant returns of product. Shipping fees charged to customers are included in revenue and shipping costs are included in costs of sales. The Company generates revenue from royalties pursuant to a licensing and manufacturing agreement with Advance Pharmaceutical Company Limited ("APC"), whereby the licensee sells and distributes territory licensed products, excluding those manufactured and supplied by the Company in the territory. APC is a related party as a director and significant stockholder of the Company is an owner and director of APC. The Company did not recognize any revenue from royalties from APC during the three months ended March 31, 2020 and 2019 respectively. |
Accounts Receivable | Accounts Receivable Accounts receivable is stated at the amount management expects to collect from outstanding balances. Management establishes a reserve for doubtful accounts based on its assessment of the current status of individual accounts. Balances that remain outstanding after management has used reasonable collection efforts are written off against the allowance. There were no allowances for doubtful accounts as of March 31, 2020 and December 31, 2019. |
Inventory | Inventory Inventory consists of raw materials, work-in-process and finished goods of SUGARDOWN®. Inventories are stated at the lower of cost (weighted average cost method) or market, not in excess of net realizable value. The Company adjusts the carrying value of its inventory for excess and obsolete inventory. The Company continues to monitor the valuation of its inventory. |
Property and Equipment | Property and Equipment Property and equipment is depreciated using the straight-line method over the following estimated useful lives: Asset Category Estimated Useful Life Office Furniture and Equipment 5 years Computer Equipment and Software 3 years The Company begins to depreciate assets when they are placed in service. The costs of repairs and maintenance are expensed as incurred; major renewals and betterments are capitalized. Upon sale or retirement, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the statement of operations. For the three months ended March 31, 2020 and 2019, the Company recorded depreciation expense of $509 and $406, respectively. |
Intangible Assets | Intangible Assets Intangible assets consist of identifiable finite-lived assets acquired in business acquisitions. Acquired intangible assets are recorded at fair value on the date of acquisition and are amortized over their economic useful lives on a straight line basis. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company reviews long-lived assets, which include the Company's intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying amounts of the assets may not be fully recoverable. Future undiscounted cash flows of the underlying assets are compared to the assets' carrying values. Adjustments to fair value are made if the sum of expected future undiscounted cash flows is less than book value. To date, no adjustments for impairment have been made. The Company performed its impairment review of intangible assets for the year ended December 31, 2019 and concluded that intangibles were impaired at December 31, 2019. The Company recorded impairment of intangibles in the amount of $367,181 for the year ended December 31, 2019. The Company has no intangible assets at March 31, 2020. |
Loss per Share | Loss per Share Basic net loss per share is computed based on the net loss for the period divided by the weighted average actual shares outstanding during the period. Diluted net loss per share is computed based on the net loss for the period divided by the weighted average number of common shares and common equivalent shares outstanding during each period unless the effect of such common equivalent shares would be anti-dilutive. Common stock equivalents represent the dilutive effect of the assumed exercise of certain outstanding stock options using the treasury stock method. The weighted average number of common shares for the three months ended March 31, 2020 did not include 9,184,000, 38,458,320, 39,046,937 and 8,250,000 for options, warrants and shares to be issued upon conversion of notes payable and Series A Preferred Stock, respectively, because of their anti-dilutive effect. The weighted average number of common shares for the three months ended March 31, 2019 did not include 9,594,000, 38,583,320, 39,516,617 and 8,250,000 for options, warrants and shares to be issued upon conversion of notes payable and Series A Preferred Stock, respectively, because of their anti-dilutive effect. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or be settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion of the gross deferred tax asset will not be realized. The Company records interest and penalties related to income taxes as a component of provision for income taxes. The Company did not recognize any interest and penalty expense for the three months ended March 31, 2020 and 2019. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and are reported as a component of operating expenses in the sales and marketing expenses in the statements of operations. The Company did not incur any advertising costs for either three month period ended March 31, 2020 and 2019, respectively. |
Research and Development Costs | Research and Development Costs Research and development expenditures are charged to the statement of operations as incurred. Such costs include proprietary research and development activities, purchased research and development, and expenses associated with research and development contracts, whether performed by the Company or contracted with independent third parties. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair values determined by Level 1 inputs utilize observable data such as quoted prices in active markets. Fair values determined by Level 2 inputs utilize data points other than quoted prices in active markets that are observable either directly or indirectly. Fair values determined by Level 3 inputs utilize unobservable data points in which there is little or no market data, which require the reporting entity to develop its own assumptions. The Company's financial instruments consist of cash, accounts receivable, prepaid expenses, accounts payable, accrued expenses, and notes payable. The carrying value of cash, accounts receivable, prepaid expenses, accounts payable and accrued expenses approximates fair value due to their short-term nature using level 1 and level 2 inputs as defined above. The carrying value of the notes payable as of March 31, 2020 and December 31, 2019, evaluated using level 2 inputs defined above based on quoted market prices on rates available to the Company for debt with similar terms and maturities, approximates the fair value. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk are principally cash. The Company places its cash and cash equivalents in highly rated financial institutions. The Company maintains cash balances with financial institutions that occasionally exceed federally insured limits. The Company has not experienced any losses related to these balances, and management believes its credit risk to be minimal. |
Convertible Instruments | Convertible Instruments U.S. GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. An exception to this rule is when the host instrument is deemed to be conventional, as that term is described under applicable ASC 480-10. When the Company has determined that the embedded conversion options should not be bifurcated from their host instruments, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. |
Common Stock Purchase Warrants and Other Derivative Financial Instruments | Common Stock Purchase Warrants and Other Derivative Financial Instruments The Company classifies as equity any contracts that (i) require physical settlement or net-share settlement or (ii) provide the Company with a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement) providing that such contracts are indexed to the Company's own stock. The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the Company's control) or (ii) gives the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). The Company assesses classification of its common stock purchase warrants and other free standing derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required. The Company's free standing derivatives consisted of warrants to purchase common stock that were issued in connection with the issuance of debt and of embedded conversion options with senior convertible debentures. The Company evaluated these derivatives to assess their proper classification in the balance sheet as of March 31, 2020 and December 31, 2019 using the applicable classification criteria enumerated under ASC 815-Derivatives and Hedging. The Company determined that certain embedded conversion and/or exercise features do not contain fixed settlement provisions. The convertible debentures contain a conversion feature such that the Company could not ensure it would have adequate authorized shares to meet all possible conversion demands. As such, the Company was required to record the debt and warrant derivatives which do not have fixed settlement provisions as liabilities and mark to market all such derivatives to fair value at the end of each reporting period. |
Stock-Based Compensation | Stock-Based Compensation Stock–based compensation, including grants of employee and non-employee stock options and modifications to existing stock options, is recognized in the income statement based on the estimated fair value of the awards . The determination of the fair value of share-based payment awards utilizing the Black-Scholes model is affected by the stock price and a number of assumptions, including expected volatility, expected life, risk-free interest rate and expected dividends. The expected life of the awards is estimated based on the simplified method. The risk-free interest rate assumption is based on observed interest rates appropriate for the terms of our awards. The dividend yield assumption is based on history and expectation of paying no dividends. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Stock-based compensation expense is recognized in the financial statements on a straight-line basis over the requisite service period, based on awards that are ultimately expected to vest. The Company grants stock options to non-employee consultants from time to time in exchange for services performed for the Company. Equity instruments granted to non- employees are subject to periodic revaluation over their vesting terms. In general, the options vest over the contractual period of the respective consulting arrangement and, therefore, the Company revalues the options periodically and records additional compensation expense related to these options over the remaining vesting period. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB established ASC Topic 842, Leases (Topic 842), by issuing ASU No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use (ROU) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations. The Company adopted the new standard on January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company has elected the 'package of practical expedients', which permit it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter is not applicable to the Company. The new standard did not have a material effect on the Company's consolidated Financial statements as the Company does not have any leases that meet the requirements for recognition. There are various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to have a material impact on the Company's financial position, results of operations or cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Practices (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of useful lives of property and equipment | Asset Category Estimated Useful Life Office Furniture and Equipment 5 years Computer Equipment and Software 3 years |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of components of inventory | 2020 2019 Finished goods $ 3,774 $ 3,909 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | 2020 2019 SUGARDOWN® technology and patent applications $ 1,134,122 $ 1,134,122 Less accumulated amortization (1,134,122 ) (1,134,122 ) Intangible assets, net $ - $ - |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of components of accrued expenses and other current liabilities | 2020 2019 Accrued payroll $ 188,716 $ 188,716 Professional fees 62,054 89,027 Accrued consulting fees 400,000 400,000 Interest 96,376 92,003 Accrued expense reimbursement and other 193,490 193,517 Total $ 940,636 $ 963,263 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair value on a recurring basis | March 31, Quoted Prices Significant Significant Derivative liability $ 5,902 $ — $ — $ 5,902 Warrant liability 359,751 — — 359,751 Total $ 365,653 $ — $ — $ 365,653 December 31, Quoted Prices Significant Significant Derivative liability $ 9,451 $ — $ — $ 9,451 Warrant liability 461,744 — — 461,744 Total $ 471,195 $ — $ — $ 471,195 |
Schedule of changes in the Company's Level 3 financial liabilities | Debt Warrant Derivative Liability Balance, December 31, 2019 $ 9,451 $ 461,744 Aggregate amount of derivative instruments issued — — Transferred in due to conversions — — Change in fair value of derivative liabilities (3,549 ) (101,993 ) Balance, March 31, 2020 $ 5,902 $ 359,751 Debt Warrant Derivative Liability Balance, December 31, 2018 $ 54,242 $ 925,806 Aggregate amount of derivative instruments issued — — Transferred in due to conversions — — Change in fair value of derivative liabilities (6,246 ) 136,605 Balance, March 31, 2019 $ 47,996 $ 1,062,411 |
Convertible Notes Payable (Tabl
Convertible Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of convertible notes payable | 2020 2019 Principal balance $ 200,000 $ 250,000 Debt discount — — Deferred finance costs — — Outstanding, net of debt discount $ 200,000 $ 250,000 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of common stock warrants activity | Warrants Weighted Aggregate Outstanding as of December 31, 2019 38,458,320 $ 0.16 $ — Granted — — — Exercised — — — Forfeited/Canceled — — — Outstanding as of March 31, 2020 38,458,320 $ 0.16 $ — Warrants Weighted Aggregate Outstanding as of December 31, 2018 38,999,990 $ 0.17 $ — Granted — — — Exercised — — — Forfeited/Canceled (416,670 ) 1.00 — Outstanding as of March 31, 2019 38,583,320 $ 0.16 $ — |
Stock Option Plan and Stock-B_2
Stock Option Plan and Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of activity under stock plans | Shares Exercise Weighted Outstanding as of December 31, 2019 9,184,000 $ 0.10 – 1.21 $ 0.36 Granted — — — Exercised — — — Options forfeited/cancelled — — — Outstanding as of March 31, 2020 9,184,000 $ 0.10 – 1.21 $ 0.36 Shares Exercise Weighted Outstanding as of December 31, 2018 9,594,000 $ 0.10 – 1.21 $ 0.36 Granted — — — Exercised — — — Options forfeited/cancelled 100,000 0.10 0.10 Outstanding as of March 31, 2019 9,494,000 $ 0.10 – 1.21 $ 0.37 |
Schedule of information about stock options vested or expected to vest | Options Outstanding Exercisable Options Exercise Price Number of Options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Number of Options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value $ 0.10 3,500,000 $ 0.10 3.54 $ — 3,500,000 $ 0.10 3.79 $ — 0.15 4,000,000 0.15 1.40 — — 0.15 — 0.18 934,000 0.18 3.23 — 934,000 0.18 3.23 — 0.20 150,000 0.20 4.99 — 150,000 0.20 4.99 — 0.37 58,000 0.37 2.43 — 58,000 0.37 2.43 — 0.42 63,000 0.42 0.75 — 63,000 0.42 0.75 — 0.69 100,000 0.69 3.95 — 100,000 0.69 3.95 — 1.21 379,000 1.21 3.78 — 379,000 1.21 3.78 — $ 0.10-1.21 9,184,000 $ 0.29 3.35 $ — 5,184,000 $ 0.27 3.35 $ — |
Schedule of non-vested stock options | Number of Weighted- Non-vested as of December 31, 2019 4,000,000 $ 0.50 Granted — — Forfeited — — Vested — — Non-vested as of March 31, 2020 4,000,000 $ 0.50 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of convertible notes payable | 2020 2019 Principal balance $ 1,402,000 $ 1,402,000 Debt discount - - Outstanding, net of debt $ 1,402,000 $ 1,402,000 |
Schedule of notes payable related party | 2020 2019 Founder $ 277,821 $ 277,821 CJY Holdings Ltd 1,516,108 1,266,108 World Technology East Ltd II 404,500 404,500 $ 2,198,429 $ 1,948,429 |
General Organization and Busi_2
General Organization and Business (Details) | Feb. 12, 2018Tranchesshares | Nov. 10, 2010shares | Mar. 31, 2020USD ($) |
General Organization and Business (Textual) | |||
Accumulated deficit | $ | $ 27,200,000 | ||
Net cash used in operating activities | $ | 154,588 | ||
Cash in hand | $ | $ 52,113 | ||
Related party, description | The Company was advanced $250,000 through the issuance of 10% notes payable to a related party during the first quarter of 2020. The Company was advanced $330,000 through the issuance of 10% notes payable to a related party during the second quarter of 2020. The Company was advanced $230,000 through the issuance of 10% notes payable to a related party during the third quarter of 2020. Management anticipates that cash resources will be sufficient to fund our planned operations into the fourth quarter of 2020. | ||
Contribution Agreement [Member] | CureDM Group Holdings, LLC [Member] | |||
General Organization and Business (Textual) | |||
Number of shares issued | 47,741,140 | ||
Number of shares issued at time of delivered | 25,000,000 | ||
Number of shares issued at time of milestone | 22,741,140 | ||
Number of shares issued per tranche | 5,685,285 | ||
Number of tranches for delivered | Tranches | 4 | ||
Boston Therapeutics, Inc. [Member] | Agreement and Plan of Merger [Member] | |||
General Organization and Business (Textual) | |||
Common stock issued to shareholders | 4,000,000 | ||
Percentage of outstanding common stock | 100.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Practices (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Office Furniture and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Computer Equipment and Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Practices (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Summary of Significant Accounting Practices (Textual) | |||
Depreciation expense | $ 509 | $ 406 | |
Impairment of intangibles assets | $ 367,181 | ||
Series A Preferred Stock [Member] | |||
Summary of Significant Accounting Practices (Textual) | |||
Anti-dilutive weighted average number of common shares | 8,250,000 | 8,250,000 | |
Stock Options [Member] | |||
Summary of Significant Accounting Practices (Textual) | |||
Anti-dilutive weighted average number of common shares | 9,184,000 | 9,594,000 | |
Warrants [Member] | |||
Summary of Significant Accounting Practices (Textual) | |||
Anti-dilutive weighted average number of common shares | 38,458,320 | 38,583,320 | |
Convertible Debt Securities [Member] | |||
Summary of Significant Accounting Practices (Textual) | |||
Anti-dilutive weighted average number of common shares | 39,046,937 | 39,516,617 |
Inventory (Details)
Inventory (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 3,774 | $ 3,909 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
SUGARDOWN® technology and patent applications | $ 1,134,122 | $ 1,134,122 |
Less accumulated amortization | (1,134,122) | (1,134,122) |
Intangible assets, net |
Intangible Assets (Details Text
Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Intangible Assets (Textual) | |||
Useful lives of intangible assets | 14 years | ||
Amortization expense | $ 0 | $ 38,450 | |
Amortized method | Straight-line | ||
Impairment of intangibles assets | $ 367,181 | ||
Estimated useful lives | 5 years |
Accrued Expenses and other Cu_3
Accrued Expenses and other Current Liabilities (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Accrued payroll | $ 188,716 | $ 188,716 |
Professional fees | 62,054 | 89,027 |
Accrued consulting fees | 400,000 | 400,000 |
Interest | 96,376 | 92,003 |
Accrued expense reimbursement and other | 193,490 | 193,517 |
Total | $ 940,636 | $ 963,263 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative liability | $ 5,902 | $ 9,451 |
Warrant liability | 359,751 | 461,744 |
Total | 365,653 | 471,195 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Derivative liability | ||
Warrant liability | ||
Total | ||
Significant Other Observable Inputs (Level 2) [Member] | ||
Derivative liability | ||
Warrant liability | ||
Total | ||
Significant Unobservable Inputs (Level 3) [Member] | ||
Derivative liability | 5,902 | 9,451 |
Warrant liability | 359,751 | 461,744 |
Total | $ 365,653 | $ 471,195 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Derivative [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at beginning | $ 9,451 | $ 54,242 |
Aggregate amount of derivative instruments issued | ||
Transferred in due to conversions | ||
Change in fair value of derivative liabilities | (3,549) | (6,246) |
Balance at ending | 5,902 | 47,996 |
Warrant liability [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at beginning | 461,744 | 925,806 |
Aggregate amount of derivative instruments issued | ||
Transferred in due to conversions | ||
Change in fair value of derivative liabilities | 101,993 | 136,605 |
Balance at ending | $ 359,751 | $ 1,062,411 |
Convertible Notes Payable (Deta
Convertible Notes Payable (Details) - Convertible notes payable [Member] - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Principal balance | $ 200,000 | $ 250,000 |
Debt discount | ||
Deferred finance costs | ||
Outstanding, net of debt discount | $ 200,000 | $ 250,000 |
Convertible Notes Payable (De_2
Convertible Notes Payable (Details Textual) | 1 Months Ended | 2 Months Ended | 3 Months Ended | |||||
Aug. 31, 2018Investors | Aug. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Mar. 31, 2020USD ($)Investors$ / sharesshares | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Sep. 15, 2018$ / shares | Jun. 30, 2017 | |
Convertible Notes Payable (Textual) | ||||||||
Payment to investors | $ 50,000 | |||||||
Accrued interest | $ 63,493 | $ 54,493 | ||||||
Investor [Member] | Warrant [Member] | ||||||||
Convertible Notes Payable (Textual) | ||||||||
Expire period | 5 years | |||||||
Convertible Debentures [Member] | ||||||||
Convertible Notes Payable (Textual) | ||||||||
Warrants issued | shares | 16,000,000 | |||||||
Share price (in dollars per share) | $ / shares | $ 0.10 | |||||||
Warrants, exercisable date | Sep. 15, 2021 | |||||||
Maturity term | 5 years | |||||||
Convertible Debentures [Member] | Investor [Member] | ||||||||
Convertible Notes Payable (Textual) | ||||||||
Convertible debentures, maturity date | Aug. 31, 2019 | |||||||
Number of investors | Investors | 2 | |||||||
6% Convertible Debt [Member] | ||||||||
Convertible Notes Payable (Textual) | ||||||||
Proceeds from issuance of convertible notes payable | $ 1,327,300 | $ 1,327,300 | ||||||
Convertible debentures, interest rate | 6.00% | |||||||
Convertible debentures, conversion price | $ / shares | $ 0.075 | |||||||
Description of conversion feature | Certain anti-dilutive (reset) provisions and are subject to forced conversion if either i) the volume weighted average common stock price for each of any 10 consecutive trading days equals or exceeds $0.50, or (ii) the Company's elects to lists a class of securities on a national securities exchange. | Certain anti-dilutive (reset) provisions and are subject to forced conversion if either i) the volume weighted average common stock price for each of any 10 consecutive trading days equals or exceeds $0.50, or (ii) the Company's elects to lists a class of securities on a national securities exchange. | ||||||
Convertible debenture, conversion feature | $ 2,203,336 | |||||||
Debt issuance cost including discount on debt | 2,476,036 | |||||||
Debt discount | 272,700 | |||||||
Excess of interest charged | 876,036 | |||||||
Amortization of debt discount | 0 | $ 30,332 | ||||||
Debt face amount | $ 1,600,000 | $ 1,600,000 | ||||||
Excess of discount | 1,600,000 | |||||||
6% Convertible Debt [Member] | Investor [Member] | ||||||||
Convertible Notes Payable (Textual) | ||||||||
Accrued interest | $ 7,627 | |||||||
Number of investors | Investors | 2 |
Marketing Agreement (Details)
Marketing Agreement (Details) - USD ($) | Jun. 26, 2018 | Mar. 31, 2020 |
Marketing Agreement (Textual) | ||
Quarterly fees, description | Quarterly fees for the first two years of up to $100,000 and issuance of 100,000 shares each quarter, based on sales volumes. | |
Level Brands, Inc. [Member] | 8% Note Payable Due on December 31, 2019 [Member] | ||
Marketing Agreement (Textual) | ||
Face amount | $ 450,000 | |
Proceeds from notes payable | $ 750,000 | |
Matures date | Dec. 31, 2019 | |
Interest rate | 8.00% | |
Level Brands, Inc. [Member] | License Agreement [Member] | ||
Marketing Agreement (Textual) | ||
Description of agreement term | The initial term of the License Agreement is seven years, with an automatic two-year extension unless either party notifies the other of non-renewal at least 90 days prior to the end of the then current term. | |
Marketing fee | $ 850,000 | |
Repayments of promissory note | 450,000 | |
Number of shares issued, value | $ 400,000 | |
Description of royalty percentage | A royalty of 5% of the gross licensed marks sales up to $10,000,000, 7.5% royalty on sales from $10,000,000 to $50,000,0000 and 10% on sales over $50,000,000, payable monthly as well as a 1% of all revenue for all Company products as of the date hereof. |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Warrants | ||
Outstanding as of beginning | 38,458,320 | 38,999,990 |
Granted | ||
Exercised | ||
Forfeited/Canceled | (416,670) | |
Outstanding as of end | 38,458,320 | 38,583,320 |
Weighted Average Exercise Price | ||
Outstanding as of beginning | $ 0.16 | $ 0.17 |
Granted | ||
Exercised | ||
Forfeited/Canceled | 1 | |
Outstanding as of end | $ 0.16 | $ 0.16 |
Aggregate Intrinsic Value | ||
Outstanding as of beginning | ||
Granted | ||
Exercised | ||
Forfeited/Canceled | ||
Outstanding as of end |
Stockholders' Equity (Details T
Stockholders' Equity (Details Textual) - USD ($) | Jan. 10, 2019 | Feb. 02, 2018 | Oct. 24, 2017 | Aug. 14, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2013 | Mar. 31, 2020 | Dec. 31, 2019 |
Preferred stock, authorized | 5,000,000 | 5,000,000 | |||||||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||||||
Common stock, authorized | 2,000,000,000 | 2,000,000,000 | |||||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||||||
Common stock, outstanding | 111,131,373 | 111,131,373 | |||||||
Maximum [Member] | |||||||||
Increased number of common stock | 200,000,000 | ||||||||
Increase in authorized common stock shares | 2,000,000,000 | ||||||||
Minimum [Member] | |||||||||
Increased number of common stock | 100,000,000 | ||||||||
Increase in authorized common stock shares | 200,000,000 | ||||||||
Warrant [Member] | |||||||||
Common stock, outstanding | 38,583,320 | ||||||||
Number of shares issued | 5,500,000 | ||||||||
Warrant exercisable term (in years) | 5 years | ||||||||
Warrants exercise price (in dollars per share) | $ 0.15 | ||||||||
Number of shares issued on debt conversion | 2,750,000 | ||||||||
Stock price | $ 0.01 | ||||||||
Warrants outstanding fully exercisable | 38,458,320 | ||||||||
Securities Purchase Agreements [Member] | Two Accredited Investors [Member] | Warrant [Member] | |||||||||
Value of shares converted | $ 650,421 | ||||||||
Number of shares issued | 9,000,000 | ||||||||
Warrant charge against additional paid in capital | 450,000 | ||||||||
Change in fair value of warrant liability | $ 200,421 | ||||||||
Securities Purchase Agreement [Member] | Accredited Investors [Member] | Warrant [Member] | |||||||||
Number of shares issued | 2,000,000 | ||||||||
Warrant exercisable term (in years) | 5 years | ||||||||
Warrants exercise price (in dollars per share) | $ 0.15 | ||||||||
Consulting Agreement [Member] | |||||||||
Number of shares issued for services | 1,000,000 | ||||||||
Amount of shares issued for services | $ 22,900 | ||||||||
Series A Preferred Stock [Member] | |||||||||
Designated shares of preferred stock | 150,000 | ||||||||
Preferred stock stated value | $ 10 | ||||||||
Conversion price per share (in dollars per share) | $ 0.10 | ||||||||
Preferred stock, outstanding | 82,500 | 82,500 | |||||||
Number of shares issued | 27,500 | ||||||||
Amount warrants issued | $ 226,833 | ||||||||
Aggregate value of conversion of units | $ 275,000 | ||||||||
Series A Preferred Stock [Member] | Securities Purchase Agreements [Member] | Two Accredited Investors [Member] | |||||||||
Number of shares converted | 4,500,000 | ||||||||
Number of shares issued | 45,000 | ||||||||
Warrant exercisable term (in years) | 5 years | ||||||||
Warrants exercise price (in dollars per share) | $ 0.15 | ||||||||
Series A Preferred Stock [Member] | Securities Purchase Agreement [Member] | Accredited Investors [Member] | |||||||||
Number of shares issued | 10,000 | ||||||||
Amount warrants issued | $ 93,312 | ||||||||
Number of shares issued on debt conversion | 1,000,000 |
Stock Option Plan and Stock-B_3
Stock Option Plan and Stock-Based Compensation (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding | ||
Granted | ||
Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding | ||
Outstanding as of beginning | 9,184,000 | 9,594,000 |
Granted | ||
Exercised | ||
Options forfeited/cancelled | 100,000 | |
Outstanding as of end | 9,184,000 | 9,494,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercise Price per Share | ||
Granted | ||
Exercised | ||
Options forfeited/cancelled | $ 0.10 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | ||
Outstanding as of beginning | 0.36 | 0.36 |
Granted | ||
Exercised | ||
Options forfeited/cancelled | 0.10 | |
Outstanding as of end | 0.36 | 0.37 |
Stock Option [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercise Price per Share | ||
Outstanding as of beginning | 0.10 | 0.10 |
Outstanding as of end | 0.10 | 0.10 |
Stock Option [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercise Price per Share | ||
Outstanding as of beginning | 1.21 | 1.21 |
Granted | ||
Exercised | ||
Outstanding as of end | $ 1.21 | $ 1.21 |
Stock Option Plan and Stock-B_4
Stock Option Plan and Stock-Based Compensation (Details 1) | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Exercise Price $0.10 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Options Outstanding | |
Number of Options | shares | 3,500,000 |
Weighted Average Exercise Price Per Share | $ / shares | $ 0.10 |
Weighted Average Remaining Contractual Life (Years) | 3 years 6 months 14 days |
Aggregate Intrinsic Value | $ | |
Number of Options | shares | 3,500,000 |
Weighted Average Exercise Price Per Share | $ / shares | $ 0.10 |
Weighted Average Remaining Contractual Life (Years) | 3 years 9 months 14 days |
Aggregate Intrinsic Value | $ | |
Exercise Price $0.15 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Options Outstanding | |
Number of Options | shares | 4,000,000 |
Weighted Average Exercise Price Per Share | $ / shares | $ 0.15 |
Weighted Average Remaining Contractual Life (Years) | 1 year 4 months 24 days |
Aggregate Intrinsic Value | $ | |
Number of Options | shares | |
Weighted Average Exercise Price Per Share | $ / shares | $ 0.15 |
Aggregate Intrinsic Value | $ | |
Exercise Price $0.18 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Options Outstanding | |
Number of Options | shares | 934,000 |
Weighted Average Exercise Price Per Share | $ / shares | $ 0.18 |
Weighted Average Remaining Contractual Life (Years) | 3 years 2 months 23 days |
Aggregate Intrinsic Value | $ | |
Number of Options | shares | 934,000 |
Weighted Average Exercise Price Per Share | $ / shares | $ 0.18 |
Weighted Average Remaining Contractual Life (Years) | 3 years 2 months 23 days |
Aggregate Intrinsic Value | $ | |
Exercise Price $0.20 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Options Outstanding | |
Number of Options | shares | 150,000 |
Weighted Average Exercise Price Per Share | $ / shares | $ 0.20 |
Weighted Average Remaining Contractual Life (Years) | 4 years 11 months 26 days |
Aggregate Intrinsic Value | $ | |
Number of Options | shares | 150,000 |
Weighted Average Exercise Price Per Share | $ / shares | $ 0.20 |
Weighted Average Remaining Contractual Life (Years) | 4 years 11 months 26 days |
Aggregate Intrinsic Value | $ | |
Exercise Price $0.37 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Options Outstanding | |
Number of Options | shares | 58,000 |
Weighted Average Exercise Price Per Share | $ / shares | $ 0.37 |
Weighted Average Remaining Contractual Life (Years) | 2 years 5 months 5 days |
Aggregate Intrinsic Value | $ | |
Number of Options | shares | 58,000 |
Weighted Average Exercise Price Per Share | $ / shares | $ 0.37 |
Weighted Average Remaining Contractual Life (Years) | 2 years 5 months 5 days |
Aggregate Intrinsic Value | $ | |
Exercise Price $0.42 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Options Outstanding | |
Number of Options | shares | 63,000 |
Weighted Average Exercise Price Per Share | $ / shares | $ 0.42 |
Weighted Average Remaining Contractual Life (Years) | 9 months |
Aggregate Intrinsic Value | $ | |
Number of Options | shares | 63,000 |
Weighted Average Exercise Price Per Share | $ / shares | $ 0.42 |
Weighted Average Remaining Contractual Life (Years) | 9 months |
Aggregate Intrinsic Value | $ | |
Exercise Price $0.69 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Options Outstanding | |
Number of Options | shares | 100,000 |
Weighted Average Exercise Price Per Share | $ / shares | $ 0.69 |
Weighted Average Remaining Contractual Life (Years) | 3 years 11 months 12 days |
Aggregate Intrinsic Value | $ | |
Number of Options | shares | 100,000 |
Weighted Average Exercise Price Per Share | $ / shares | $ 0.69 |
Weighted Average Remaining Contractual Life (Years) | 3 years 11 months 12 days |
Aggregate Intrinsic Value | $ | |
Exercise Price $1.21 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Options Outstanding | |
Number of Options | shares | 379,000 |
Weighted Average Exercise Price Per Share | $ / shares | $ 1.21 |
Weighted Average Remaining Contractual Life (Years) | 3 years 9 months 11 days |
Aggregate Intrinsic Value | $ | |
Number of Options | shares | 379,000 |
Weighted Average Exercise Price Per Share | $ / shares | $ 1.21 |
Weighted Average Remaining Contractual Life (Years) | 3 years 9 months 11 days |
Aggregate Intrinsic Value | $ | |
Exercise Price $0.10 - $1.21 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Options Outstanding | |
Number of Options | shares | 9,184,000 |
Weighted Average Exercise Price Per Share | $ / shares | $ 0.29 |
Weighted Average Remaining Contractual Life (Years) | 3 years 4 months 6 days |
Aggregate Intrinsic Value | $ | |
Number of Options | shares | 5,184,000 |
Weighted Average Exercise Price Per Share | $ / shares | $ 0.27 |
Weighted Average Remaining Contractual Life (Years) | 3 years 4 months 6 days |
Aggregate Intrinsic Value | $ |
Stock Option Plan and Stock-B_5
Stock Option Plan and Stock-Based Compensation (Details 2) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Non-vested as of beginning | shares | 4,000,000 |
Granted | shares | |
Forfeited | shares | |
Vested | shares | |
Non-vested as of end | shares | 4,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Non-vested as of beginning | $ / shares | $ 0.50 |
Granted | $ / shares | |
Forfeited | $ / shares | |
Vested | $ / shares | |
Non-vested as of end | $ / shares | $ 0.50 |
Stock Option Plan and Stock-B_6
Stock Option Plan and Stock-Based Compensation (Details Textual) - USD ($) | Aug. 22, 2016 | Sep. 07, 2013 | Dec. 31, 2012 | Mar. 31, 2020 | Mar. 31, 2013 | Dec. 31, 2019 | Mar. 01, 2018 | Dec. 31, 2011 | Dec. 31, 2010 |
Stock Option Plan and Stock-Based Compensation (Textual) | |||||||||
Weighted average fair value of stock options granted (in dollars per share) | |||||||||
Stock-based compensation expense | $ 0 | $ 13,593 | |||||||
Weighted average remaining contractual life for options exercisable | 3 years 4 months 6 days | ||||||||
Aggregate intrinsic value exercisable | $ 0 | ||||||||
Aggregate intrinsic value exercised | 0 | ||||||||
Tax benefit realized | 0 | ||||||||
Non-Vested Stock Option [Member] | |||||||||
Stock Option Plan and Stock-Based Compensation (Textual) | |||||||||
Unrecognized compensation expense | $ 0 | $ 131,398 | |||||||
Employment Agreement [Member] | Carl W. Rausch [Member] | |||||||||
Stock Option Plan and Stock-Based Compensation (Textual) | |||||||||
Expiration period | 5 years | ||||||||
Expiration date | Aug. 22, 2026 | ||||||||
Options available for grant | 6,000,000 | 6,000,000 | |||||||
Additional options available for grant | 1,500,000 | ||||||||
Employment Agreement [Member] | Carl W. Rausch [Member] | Tranche One [Member] | |||||||||
Stock Option Plan and Stock-Based Compensation (Textual) | |||||||||
Exercise price (in dollars per share) | $ 0.20 | $ 0.10 | |||||||
Financing amount | $ 1,000,000 | ||||||||
Options available for grant | 2,000,000 | 2,000,000 | |||||||
Employment Agreement [Member] | Carl W. Rausch [Member] | Tranche Two [Member] | |||||||||
Stock Option Plan and Stock-Based Compensation (Textual) | |||||||||
Exercise price (in dollars per share) | $ 0.40 | $ 0.15 | |||||||
Financing amount | $ 5,000,000 | ||||||||
Options available for grant | 2,000,000 | 2,000,000 | |||||||
Employment Agreement [Member] | Carl W. Rausch [Member] | Tranche Three [Member] | |||||||||
Stock Option Plan and Stock-Based Compensation (Textual) | |||||||||
Exercise price (in dollars per share) | $ 0.60 | $ 0.15 | |||||||
Options available for grant | 2,000,000 | 2,000,000 | |||||||
2011 Stock Plan [Member] | |||||||||
Stock Option Plan and Stock-Based Compensation (Textual) | |||||||||
Increased number of common stock | 12,000,000 | 17,500,000 | |||||||
Options outstanding | 8,934,000 | 8,934,000 | |||||||
Options available for grant | 8,566,000 | 2,100,000 | |||||||
2010 Stock Plan [Member] | |||||||||
Stock Option Plan and Stock-Based Compensation (Textual) | |||||||||
Increased number of common stock | 7,500,000 | ||||||||
Options outstanding | 250,000 | 250,000 | |||||||
Options available for grant | 7,250,000 | 5,000,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - CJY Holdings Limited [Member] - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
Principal balance | $ 1,402,000 | $ 1,402,000 |
Debt discount | ||
Outstanding, net of debt | $ 1,402,000 | $ 1,402,000 |
Related Party Transactions (D_2
Related Party Transactions (Details 1) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Notes payable – related parties | $ 2,198,429 | $ 1,948,429 |
Founder [Member] | ||
Notes payable – related parties | 277,821 | 277,821 |
CJY Holdings Ltd [Member] | ||
Notes payable – related parties | 1,516,108 | 1,266,108 |
World Technology East Ltd II [Member] | ||
Notes payable – related parties | $ 404,500 | $ 404,500 |
Related Party Transactions (D_3
Related Party Transactions (Details Textual) - USD ($) | May 31, 2019 | Jun. 12, 2018 | Oct. 16, 2017 | Oct. 06, 2017 | Apr. 26, 2017 | May 07, 2012 | Nov. 18, 2019 | Dec. 31, 2017 | Sep. 30, 2015 | Jul. 31, 2014 | May 31, 2014 | Jun. 24, 2011 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 31, 2019 | Jun. 30, 2019 | Jun. 12, 2019 | Apr. 04, 2019 | Feb. 11, 2019 | Jan. 17, 2019 | Dec. 31, 2018 | Dec. 07, 2018 | Nov. 05, 2018 | Oct. 04, 2018 | Dec. 31, 2016 | Sep. 30, 2016 | Mar. 02, 2015 |
Related Party Transactions (Textual) | ||||||||||||||||||||||||||||||||
Notes payable - related parties | $ 2,198,429 | $ 1,948,429 | ||||||||||||||||||||||||||||||
Exercise price of warrants (in dollars per share) | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.17 | ||||||||||||||||||||||||||||
Description of maturity date | The notes are due on various dates through October 29, 2020, including the $305,937 note which was due on September 26, 2019 and is currently in default. | |||||||||||||||||||||||||||||||
Debt accrued interest | $ 118,448 | $ 80,546 | ||||||||||||||||||||||||||||||
Convertible notes payable, description | The Company borrowed $30,000 increasing the total amount of notes payable to $404,500 which remain outstanding at December 31, 2019. The notes payable are due on various dates through November 18, 2020 including $224,500 which came due on during 2019 and the first quarter of 2020 and are currently in default and are classified as current liabilities. Interest accrues on the WTE2 Notes at the rate of 10.0% per annum. | |||||||||||||||||||||||||||||||
10.0% Note Payable Due on June 12, 2019 [Member] | World Technology East II Limited [Member] | HONG KONG [Member] | ||||||||||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||||||||||
Proceeds from promissory notes | $ 1,000,000 | |||||||||||||||||||||||||||||||
Notes payable - related parties | 324,500 | $ 374,500 | $ 324,500 | |||||||||||||||||||||||||||||
Face amount | $ 50,000 | $ 100,000 | $ 224,500 | 224,500 | $ 50,000 | $ 100,000 | $ 50,000 | $ 20,000 | $ 30,000 | $ 174,500 | $ 15,000 | $ 15,000 | $ 44,500 | |||||||||||||||||||
Description of maturity date | May 31, 2020 | |||||||||||||||||||||||||||||||
Debt accrued interest | 37,516 | 6,843 | ||||||||||||||||||||||||||||||
CJY Holdings Limited [Member] | Securities Purchase Agreement [Member] | ||||||||||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||||||||||
Interest rate | 10.00% | |||||||||||||||||||||||||||||||
Number of shares issued | 4,000,000 | 10,000,000 | ||||||||||||||||||||||||||||||
Proceeds from shares converted | $ 50,000 | $ 500,000 | ||||||||||||||||||||||||||||||
Accrued interest to related party | $ 150,000 | |||||||||||||||||||||||||||||||
Face amount | $ 750,000 | |||||||||||||||||||||||||||||||
Conversion price (in dollars per share) | $ 0.05 | |||||||||||||||||||||||||||||||
Convertible debenture, conversion feature | $ 1,642,000 | |||||||||||||||||||||||||||||||
Bridge financing | $ 1,600,000 | |||||||||||||||||||||||||||||||
Description of maturity date | August 2018 | |||||||||||||||||||||||||||||||
Share price (in dollars per share) | $ 0.05 | $ 0.05 | ||||||||||||||||||||||||||||||
Loss on extinguishment | $ 155,459 | $ 15,354 | ||||||||||||||||||||||||||||||
Conversion feature interest expense | $ 0 | 261,656 | ||||||||||||||||||||||||||||||
CJY Holdings Limited [Member] | Securities Purchase Agreement [Member] | Agreement 2015 [Member] | ||||||||||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||||||||||
Face amount | $ 1,200,000 | |||||||||||||||||||||||||||||||
CJY Holdings Limited [Member] | Securities Purchase Agreement [Member] | Agreement 2016 [Member] | ||||||||||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||||||||||
Face amount | $ 1,752,000 | |||||||||||||||||||||||||||||||
CJY Holdings Limited [Member] | Securities Purchase Agreement [Member] | 6% Subordinated Convertible Debenture [Member] | ||||||||||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||||||||||
Proceeds from promissory notes | $ 200,000 | |||||||||||||||||||||||||||||||
Number of shares issued | 2,000,000 | |||||||||||||||||||||||||||||||
Exercise price of warrants (in dollars per share) | $ 0.10 | |||||||||||||||||||||||||||||||
Conversion price (in dollars per share) | $ 0.10 | |||||||||||||||||||||||||||||||
Convertible debenture, conversion feature | $ 186,939 | |||||||||||||||||||||||||||||||
Amortization of the beneficial conversion feature | $ 0 | $ 23,094 | ||||||||||||||||||||||||||||||
Description of maturity date | Mature two years from issuance. | |||||||||||||||||||||||||||||||
Interest rate | 6.00% | |||||||||||||||||||||||||||||||
Warrants issued | 500,000 | |||||||||||||||||||||||||||||||
Payments for warrants | $ 50,000 | |||||||||||||||||||||||||||||||
Warrant expiration period | 5 years | |||||||||||||||||||||||||||||||
Description of conversion feature | The conversion price is subject to adjustment for stock dividends and stock splits. In addition, if after the original issue date of the Debentures, either (i) the volume weighted average price equals or exceeds $0.50 for 10 consecutive trading days or (ii) the Company elects to list a class of securities on a national securities exchange, the Company may cause CJY to convert all or part of the then outstanding principal amount of the Debentures plus, accrued but unpaid interest, liquidated damages and other amounts owed. | |||||||||||||||||||||||||||||||
Share price (in dollars per share) | $ 0.10 | |||||||||||||||||||||||||||||||
Percentge of maximum conversion or exercise | 4.99% | |||||||||||||||||||||||||||||||
CJY Holdings Limited [Member] | Securities Purchase Agreement [Member] | 6% Subordinated Convertible Debenture [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||||||||||
Face amount | $ 1,000,000 | |||||||||||||||||||||||||||||||
CJY Holdings Limited [Member] | Securities Purchase Agreement [Member] | 6% Subordinated Convertible Debenture [Member] | Warrant [Member] | ||||||||||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||||||||||
Share price (in dollars per share) | $ 0.10 | |||||||||||||||||||||||||||||||
Dr. David Platt [Member] | ||||||||||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||||||||||
Advance from related party | $ 257,820 | |||||||||||||||||||||||||||||||
Interest rate | 6.50% | |||||||||||||||||||||||||||||||
Notes payable - related parties | $ 297,820 | |||||||||||||||||||||||||||||||
Offsetting reimbursement amount against accrued interest | $ 82,355 | |||||||||||||||||||||||||||||||
Recognized cost of indemnification | $ 182,697 | |||||||||||||||||||||||||||||||
Accrued interest to related party | $ 86,065 | $ 80,815 | ||||||||||||||||||||||||||||||
Description of maturity date | June 29, 2013 | |||||||||||||||||||||||||||||||
Dr. David Platt [Member] | Promissory Notes [Member] | ||||||||||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||||||||||
Interest rate | 6.50% | |||||||||||||||||||||||||||||||
Proceeds from promissory notes | $ 40,000 | |||||||||||||||||||||||||||||||
Description of maturity date | June 30, 2013 | |||||||||||||||||||||||||||||||
Dr. David Platt [Member] | Separation Agreement [Member] | ||||||||||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||||||||||
Milestone separation benefits | $ 1,000,000 | |||||||||||||||||||||||||||||||
Reimbursement amount for indemnification | 150,000 | |||||||||||||||||||||||||||||||
Payment of outside legal expenses | $ 50,000 | |||||||||||||||||||||||||||||||
Expense associated with indemnification | $ 63,296 | $ 119,401 | ||||||||||||||||||||||||||||||
Recognized cost of indemnification | $ 182,697 | |||||||||||||||||||||||||||||||
Advance Pharmaceutical Company Ltd. [Member] | Licensing And Manufacturing Agreement [Member] | Private Placement [Member] | ||||||||||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||||||||||
Number of shares issued | 1,799,800 | 1,799,800 | ||||||||||||||||||||||||||||||
Royalty payments, percentage | 10.00% | |||||||||||||||||||||||||||||||
Former President [Member] | ||||||||||||||||||||||||||||||||
Related Party Transactions (Textual) | ||||||||||||||||||||||||||||||||
Notes payable - related parties | $ 277,820 | |||||||||||||||||||||||||||||||
Repayment of notes payable to related party | $ 20,000 |
Related Party Transactions (D_4
Related Party Transactions (Details Textual 1) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Mar. 31, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Jul. 31, 2019 | Jul. 02, 2019 | Jun. 30, 2019 | Apr. 12, 2019 | Sep. 26, 2018 | |
Related Party Transactions (Textual) | ||||||||
Accrued interest | $ 118,448 | $ 80,546 | ||||||
Debt note ,decsription | The notes are due on various dates through October 29, 2020, including the $305,937 note which was due on September 26, 2019 and is currently in default. | |||||||
Notes payable - related parties | $ 2,198,429 | 1,948,429 | ||||||
CJY Holdings Limited [Member] | Conroy Chi- Heng Cheng [Member] | ||||||||
Related Party Transactions (Textual) | ||||||||
Face amount | $ 947,108 | |||||||
CJY Holdings Limited [Member] | Hong Kong [Member] | Conroy Chi- Heng Cheng [Member] | ||||||||
Related Party Transactions (Textual) | ||||||||
Face amount | $ 194,356 | $ 157,671 | $ 595,081 | $ 289,144 | $ 305,937 | |||
Interest rate, percenatge | 10.00% | |||||||
Notes payable - related parties | 1,266,108 | |||||||
Repayment of notes payable to related party | $ 319,000 | |||||||
Accounts Payable [Member] | ||||||||
Related Party Transactions (Textual) | ||||||||
Amounts due shareholders, officers and directors | 302,302 | 152,302 | ||||||
Accrued Expenses [Member] | ||||||||
Related Party Transactions (Textual) | ||||||||
Amounts due shareholders, officers and directors | $ 1,444,587 | $ 1,495,905 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | May 01, 2018USD ($)shares | Mar. 01, 2018$ / sharesshares | Feb. 12, 2018USD ($)Tranches$ / sharesshares | Mar. 31, 2020USD ($)shares | Mar. 31, 2019USD ($) | Oct. 16, 2019USD ($) |
Commitments and Contingencies (Textual) | ||||||
Recognized rent (credit) expense | $ | $ 0 | $ 1,200 | ||||
Damages claimed | $ | $ 18,000 | |||||
CureDM Group Holdings, LLC [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Net proceeds equity financing | $ | $ 1,000,000 | |||||
Description of contribution agreement | The Company entered into a Contribution Agreement with the members of CureDM Group Holdings, LLC, a limited liability company, all of which except five are accredited investors ("CureDM Group Members") pursuant to which the CureDM Group Members agreed to contribute 100% of the outstanding securities. | |||||
Carl W. Rausch [Member] | Stock Option [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Number of option granted | 6,000,000 | |||||
Share price (in dollars per share) | $ / shares | $ 0.10 | |||||
Description of reduction in exercise price | First tranche of 2,000,000 will be exercisable at $0.10 per share and the second and third tranches of 2,000,000 will be exercisable at $0.15 per share. | |||||
Loraine Upham [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Annual salary | $ | $ 200,000 | |||||
Description of accrual salary and bonus after achieving certain milestone | Ms. Upham's salary shall accrue until the Company has raised a minimum of $1,250,000. Ms. Upham is eligible for bonuses as determined by the Board of Directors. These include a bonus of $20,000 is to be paid upon the Company successfully raising $1,250,000 through the sale of equity; an annual performance bonus based on milestones related to clinical progress, partnering and fund raising success to be established by the Board of Directors or the Compensation Committee, if in existence on an annual basis. | |||||
Loraine Upham [Member] | 2011 Stock Plan [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Number of option granted | 4,000,000 | |||||
Vesting period | 3 years | |||||
Loraine Upham [Member] | 2011 Stock Plan [Member] | Tranche One [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Number of option granted | 1,333,334 | |||||
Share price (in dollars per share) | $ / shares | $ 0.06 | |||||
Loraine Upham [Member] | 2011 Stock Plan [Member] | Tranche Two [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Number of option granted | 1,333,333 | |||||
Share price (in dollars per share) | $ / shares | $ 0.10 | |||||
Loraine Upham [Member] | 2011 Stock Plan [Member] | Tranche Three [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Number of option granted | 1,333,333 | |||||
Share price (in dollars per share) | $ / shares | $ 0.20 | |||||
Corporate Advisory Agreement [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Agreement term | 1 year | |||||
Number of shares issued | 3,000,000 | |||||
Number of shares issued at time of delivered | 1,600,000 | |||||
Description option to renew | Additional six months. | |||||
Monthly fee | $ | $ 6,500 | |||||
Number of shares issued, value | $ | 211,600 | |||||
Number of shares issued at time of delivered upon execution | 1,400,000 | |||||
Monthly installments shares | 400,000 | |||||
Accrued expenses | $ | $ 110,500 | |||||
Contribution Agreement [Member] | CureDM Group Holdings, LLC [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Number of shares issued | 47,741,140 | |||||
Number of shares issued at time of delivered | 25,000,000 | |||||
Number of shares issued at time of milestone | 22,741,140 | |||||
Number of shares issued per tranche | 5,685,285 | |||||
Number of tranches for delivered | Tranches | 4 | |||||
Employment Agreement [Member] | Carl W. Rausch [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Amount of signing bonus | $ | $ 60,000 | |||||
Agreement term | 3 years | |||||
Annual salary | $ | $ 224,000 | |||||
Increase in annual salary upon relocating United States | $ | 264,000 | |||||
Increase in annual salary upon company listed on a national exchange | $ | $ 20,000 | |||||
Employment Agreement [Member] | Carl W. Rausch [Member] | Stock Option [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Number of option granted | 6,000,000 | |||||
Expiration period | 5 years | |||||
Description of vesting | Earned and vested in three equal tranches of 2,000,000 upon the Company raising $1,000,000 in financing, the Company raising $5,000,000 in financing and the Company entering into a significant corporate alliance for substantial marketing and selling of the Company's product portfolio. The initial tranche shall be exercisable at $0.20 per share, the second tranche will be $0.40 per share and the third tranche shall be $0.60 per share | |||||
Employment Agreement [Member] | Loraine Upham [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Annual salary | $ | $ 188,716 | |||||
Options term | 5 years |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) | Aug. 04, 2020 | Jul. 10, 2020 | Jun. 10, 2020 | Apr. 02, 2020 | Jun. 30, 2020 | May 20, 2020 |
Subsequent Events (Textual) | ||||||
Borrowing amount | $ 150,000 | $ 80,000 | $ 60,000 | $ 200,000 | $ 20,000 | $ 50,000 |
Debt due period | Twelve months | Twelve months | Twelve months | Twelve months | Twelve months | Twelve months |
Note bears interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |