AXIM Biotechnologies (AXIM) 10-Q 20 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - $ / shares	Nov. 14, 2017	Sep. 30, 2017
Details
Registrant Name		AXIM BIOTECHNOLOGIES, INC.
Registrant CIK		1,514,946
SEC Form		10-Q
Period End date		Sep. 30, 2017
Fiscal Year End		--12-31
Trading Symbol		AXIM
Tax Identification Number (TIN)		274,029,386
Number of common stock shares outstanding	54,564,441
Filer Category		Smaller Reporting Company
Current with reporting		Yes
Voluntary filer		No
Well-known Seasoned Issuer		No
Amendment Flag		false
Document Fiscal Year Focus		2,017
Document Fiscal Period Focus		Q3
Entity Incorporation, State Country Name		Nevada
Entity Address, Address Line One		45 Rockefeller Plaza, 20th Floor, Suite 83
Entity Address, City or Town		New York
Entity Address, State or Province		NY
Entity Address, Postal Zip Code		10,111
City Area Code		212
Local Phone Number		751-0001
Entity Listing, Par Value Per Share	$ 0.0001

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (September 30 2017 Unaudited) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash	$ 3,081,511	$ 713,346
Inventory	16,527	38,446
Reservation fee deposit	76,155	76,155
Prepaid expenses	62,411	40,753
Loan receivable	5,000	505,000
Total current assets	3,241,604	1,373,700
Property, Plant and Equipment, Net	9,788	12,305
Other Assets:
Acquired intangible asset - intellectual property licensing agreement, net	63,167	63,167
Security deposits	7,440	0
Total other assets	70,607	63,167
TOTAL ASSETS	3,321,999	1,449,172
Current liabilities:
Accounts payable and accrued liabilities	370,413	401,219
Due to shareholder	5,000	5,000
Due to first insurance funding	44,390	22,978
Due to related party	1,613,524	1,619,067
Promissory note - related party (including accrued interest of $107,472 and $88,564 respectively)	987,472	968,564
Convertible Note Payable - Current portion (including accrued interest of $103,847)	3,705,550	0
Total current liabilities	6,726,349	3,016,828
Long-term liabilities:
Total long-term liabilities	1,448,029	803,933
TOTAL LIABILITIES	8,174,378	3,820,761
STOCKHOLDERS' DEFICIT
Common Stock, Value, Issued	5,457	5,252
Additional paid in capital	15,923,789	15,672,631
Common stock, to be issued	18,500	20,064
Accumulated deficit	(20,800,225)	(18,069,636)
TOTAL STOCKHOLDERS' DEFICIT	(4,852,379)	(2,371,589)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	3,321,999	1,449,172
Preferred Stock
STOCKHOLDERS' DEFICIT
Preferred Stock, Value, Issued	0	0
Series A Convertible Preferred stock
STOCKHOLDERS' DEFICIT
Preferred Stock, Value, Issued	0	0
Undesignated Preferred stock
STOCKHOLDERS' DEFICIT
Preferred Stock, Value, Issued	0	0
Series B Convertible Preferred Stock
STOCKHOLDERS' DEFICIT
Preferred Stock, Value, Issued	50	50
Series C Convertible Preferred Stock
STOCKHOLDERS' DEFICIT
Preferred Stock, Value, Issued	50	50
Convertible notes payable due to shareholder
Long-term liabilities:
Notes Payable, Noncurrent	46,986	45,793
Convertible note payable
Long-term liabilities:
Notes Payable, Noncurrent	718,310	0
Convertible note payable 2
Long-term liabilities:
Notes Payable, Noncurrent	$ 682,733	$ 758,140

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (September 30 2017 Unaudited) - Parenthetical - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	$ 6,991	$ 4,474
Preferred Stock, Shares Issued	300,000,000
Preferred Stock, Shares Outstanding	300,000,000
Common Stock, Par or Stated Value Per Share		$ 0.0001
Common Stock, Shares, Issued	54,564,441	52,506,441
Common Stock, Shares, Outstanding	54,564,441	52,506,441
Preferred Stock
Preferred Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Series A Convertible Preferred stock
Preferred Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	0	0
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Undesignated Preferred stock
Preferred Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	4,000,000	4,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Series B Convertible Preferred Stock
Preferred Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	500,000	500,000
Preferred Stock, Shares Issued	500,000	500,000
Preferred Stock, Shares Outstanding	500,000	500,000
Series C Convertible Preferred Stock
Preferred Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	500,000	500,000
Preferred Stock, Shares Issued	500,000	500,000
Preferred Stock, Shares Outstanding	500,000	500,000
Promissory note - related party
Interest Payable, Current	$ 107,472	$ 88,564
Convertible notes payable due to shareholder
Interest Payable, Current	1,986	792
Convertible note payable
Interest Payable, Current	103,847
Debt Instrument, Unamortized Discount, Noncurrent	939,986	0
Convertible note payable 2
Interest Payable, Current	65,121	15,646
Debt Instrument, Unamortized Discount, Noncurrent	$ 1,248,990	$ 1,323,606

Condensed Consolidated Statemen

Condensed Consolidated Statement of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Details
Revenues	$ 9,758	$ 9,600	$ 32,116	$ 34,846
Cost of goods sold	1,644	13,661	42,060	40,957
Gross profit (loss)	8,114	(4,061)	(9,944)	(6,111)
Operating Expenses:
Research and development expenses	632,674	87,718	835,988	163,946
Selling, general and administrative	559,648	1,462,954	1,250,162	2,816,666
Depreciation	839	839	2,517	2,516
Total operating expenses	1,193,161	1,551,511	2,088,667	2,983,128
Loss from operations	(1,185,047)	(1,555,572)	(2,098,611)	(2,989,239)
Other (Income) expenses:
Interest Income	0	0	(1,597)	0
Amortization of debt discount	344,763	2,687	454,631	2,687
Loss on extinguishment of debt	0	0	0	1,385,000
Interest expense	111,891	225,382	178,944	249,391
Total other expenses	456,654	228,069	631,978	1,637,078
Loss before provision of income tax	(1,641,701)	(1,783,641)	(2,730,589)	(4,626,317)
Provision for income tax	0	0	0	0
Net Income (Loss) Attributable to Parent	(1,641,701)	(1,783,641)	(2,730,589)	(4,626,317)
Less: Dividend on preferred stocks	0	(1,475,000)	0	(1,475,000)
NET LOSS ATTRIBUTABLE TO	$ (1,641,701)	$ (3,258,641)	$ (2,730,589)	$ (6,101,317)
Loss per common share - basic and diluted	$ (0.03)	$ (0.07)	$ (0.05)	$ (0.15)
Weighted average common shares outstanding -basic and diluted	53,512,133	44,330,132	52,866,871	41,269,504

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Stockholders' Deficit - 9 months ended Sep. 30, 2017 - USD ($)	Common Stock	Preferred Stock	Series A Convertible Preferred stock	Series B Convertible Preferred Stock	Series C Convertible Preferred Stock	Common stock to be issued	Additional Paid-in Capital	Retained Earnings	Total
Equity Balance, Starting at Dec. 31, 2016	$ 5,251	$ 0	$ 0	$ 50	$ 50	$ 20,064	$ 15,672,631	$ (18,069,636)	$ (2,371,589)
Shares Outstanding, Starting at Dec. 31, 2016	52,506,441	0	0	500,000	500,000
Stock Issued During Period, Value, Other	$ 6	$ 0	$ 0	$ 0	$ 0	(20,064)	20,058	0	0
Stock Issued During Period, Shares, Other	60,000	0	0	0	0
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments	$ 200	$ 0	$ 0	$ 0	$ 0	0	199,300	0	199,500
Stock Issued During Period, Shares, Conversion of Convertible Securities	1,995,000	0	0	0	0
Stock Issued During Period, Value, Issued for Services	$ 0	$ 0	$ 0	$ 0	$ 0	0	31,800	0	31,800
Stock Issued During Period, Shares, Issued for Services	3,000		0	0	0
Common stock to be issued for consulting services, Value	$ 0	$ 0	$ 0	$ 0	$ 0	18,500	0	0	18,500
Common stock to be issued for consulting services, Shares	0	0	0	0	0
Net Income (Loss)	$ 0	$ 0	$ 0	$ 0	$ 0	0	0	(2,730,589)	(2,730,589)
Equity Balance, Ending at Sep. 30, 2017	$ 5,457	$ 0	$ 0	$ 50	$ 50	$ 18,500	$ 15,923,789	$ (20,800,225)	$ (4,852,379)
Shares Outstanding, Ending at Sep. 30, 2017	54,564,441	0	0	500,000	500,000

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (2,730,589)	$ (4,626,317)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation	2,517	2,516
Amortization of prepaid services	0	736,438
Amortization of prepaid insurance	63,342	64,041
Amortization of debt discount	454,629	2,687
Non-cash Interest Expense	0	212,500
Loss on extinguishment of debt	0	1,385,000
Stock based compensation	50,300	1,424,935
Inventory written off	0	9,753
Changes in operating assets & liabilities:
(Decrease) increase accounts payable and accrued expenses	(30,805)	13,593
Increase in prepaid insurance	(85,000)	(85,000)
Decrease in inventory	21,919	39,973
Increase in accrued interest payable	173,423	35,507
Increase in due to first insurance funding	21,412	22,680
Increase in security deposits	(7,440)	0
Net cash used in operating activities	(2,066,292)	(761,694)
CASH FLOW FROM INVESTING ACTIVITIES:
Net cash used in investing activities	0	0
CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from issuance of Series B and C convertible preferred stock	0	115,000
Repayment of related party loans	(5,543)	0
Proceeds from due to related party	0	533,157
Proceeds from convertible notes	3,940,000	850,000
Proceeds from loan receivable	500,000	0
Net cash provided by financing activities	4,434,457	1,498,157
Net increase in cash and cash equivalents	2,368,165	736,463
Cash and cash equivalents at beginning of period	713,346	134,170
Cash and cash equivalents at end of period	3,081,511	870,633
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest	5,522	1,034
Income taxes - net of tax refund	0	0
NON-CASH INVESTING AND FINANCING ACTIVITIES
Common stock issued against common stock to be issued	20,064	52,500
Common stock issued against conversion of convertible note and interest	199,500	159,000
Conversion of Series A convertible preferred stock into common stock	0	500
Debt discount and initial derivative liability at issuance of note	1,320,000	1,062,500
Preferred dividend against common stock to be issued on conversion of Series A Preferred stock	$ 0	$ 1,475,000

NOTE 1_ ORGANIZATION

NOTE 1: ORGANIZATION	9 Months Ended
	Sep. 30, 2017
Notes
NOTE 1: ORGANIZATION	NOTE 1: ORGANIZATION The Company was originally incorporated in Nevada on November 18, 2010, as Axim International Inc. On July 24, 2014, the Company changed its name to AXIM Biotechnologies, Inc. to better reflect its business operations. The Company’s principal executive office is located at 45 Rockefeller Plaza 20th Floor, Suite 83, New York, NY 10111. On August 7, 2014, the Company formed a wholly owned Nevada subsidiary named Axim Holdings, Inc. This subsidiary will be used to help facilitate the anticipated activities planned by the Company. On May 11, 2015 the Company acquired a 100% interest in Can Chew License Company a Nevada incorporated licensing Company, through the exchange of 5,826,706 shares of its common stock.

NOTE 2_ BASIS OF PRESENTATION

NOTE 2: BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2017
Notes
NOTE 2: BASIS OF PRESENTATION	NOTE 2: BASIS OF PRESENTATION: The unaudited condensed consolidated financial statements of AXIM Biotechnologies, Inc. (formerly Axim International, Inc.) The following (a) balance sheets as of September 30, 2017 (unaudited) and December 31, 2016, which have been derived from audited financial statements, and (b) the unaudited interim statements of operations and cash flows of AXIM Biotechnologies, Inc. (the "Company") have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of results that may be expected for the year ending December 31, 2017. These unaudited financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2016 included in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on April 14, 2017.

NOTE 3_ SIGNIFICANT ACCOUNTING

NOTE 3: SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2017
Notes
NOTE 3: SIGNIFICANT ACCOUNTING POLICIES	NOTE 3: SIGNIFICANT ACCOUNTING POLICIES Use of estimates The preparation of the unaudited financial statements in conformity with accounting principles generally accepted in the United States of America 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 as well as the reported amounts of revenue and expenses during reporting periods. Actual results could differ from these estimates. Cash equivalents The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. Inventory Inventory consists of finished goods available for sale and raw materials owned by the Company and are stated at the lower of cost or market. During the nine months ended September 30, 2017, the Company wrote off finished goods inventory worth $ -0-. As of September 30, 2017 the finished goods inventory totaled $0 and raw materials in production totaled $8,783 and raw materials for clinical trials totaled $7,744. Property and equipment Property and equipment are carried at cost less accumulated depreciation. Depreciation is computed using straight-line method over the estimated useful life. New assets and expenditures that extend the useful life of property or equipment are capitalized and depreciated. Expenditures for ordinary repairs and maintenance are charged to operations as incurred. For both the three and nine months ended September 30, 2017 and 2016 the Company recorded $839 and $2,516 of depreciation expense, respectively. Intangible Assets As required by generally accepted accounting principles, trademarks and patents are not amortized since they have an indefinite life. Instead, they are tested annually for impairment. Intangible assets as of September 30, 2017 amounted to $63,167 net of accumulated impairment losses of $652,265. Revenue Recognition The Company recognizes revenue on four basic criteria that must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the fee charged for services rendered and products delivered and the collectability of those fees. Revenue is generally recognized upon shipment. Revenues from continuing operations recognized for the three and nine months ended September 30, 2017 and 2016 amounted to $9,758 and $32,116 and $9,600 and $34,846, respectively. Principles of Consolidation The consolidated financial statements include the accounts of Axim Biotechnologies, Inc. and its wholly owned subsidiaries Axim Holdings, Inc. and Can Chew License Company as of September 30, 2017. All significant intercompany transactions and balances have been eliminated in consolidation. Derivative Liabilities The Company assessed the classification of its derivative financial instruments as of September 30, 2017, which consist of convertible instruments and rights to shares of the Company’s common stock, and determined that such derivatives meet the criteria for liability classification under ASC 815. ASC 815 generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments. These three 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 subject to the requirement of ASC 815. ASC 815 also provides an exception to this rule when the host instrument is deem to be conventional, as described. Fair Value of Financial Instruments Effective January 1, 2008, the Company adopted FASB ASC 820-Fair Value Measurements and Disclosures, or ASC 820, for assets and liabilities measured at fair value on a recurring basis. ASC 820 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements established a framework for measuring fair value and expands disclosure about such fair value measurements. The adoption of ASC 820 did not have an impact the Company’s financial position or operating results, but did expand certain disclosures. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer liability in an orderly transaction between market participants at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market date Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. The Company did not have any Level 2 or Level 3 assets or liabilities as of September 30, 2017, with the exception of its convertible notes payable and derivative liability. The carrying amounts of these liabilities at September 30, 2017 approximate their respective fair value based on the Company’s incremental borrowing rate. Cash is considered to be highly liquid and easily tradable as of September 30, 2017 and therefore classified as Level 1 within our fair value hierarchy. In addition, FASB ASC 825-10-25 Fair Value Option, or ASC 825-10-25, was effective for January 1, 2008. ASC 825-10-25 expands opportunities to use fair value measurements in financial reporting and permits entities to choose to measure many financial instruments and certain other items at fair value. The Company did not elect the fair value options for any of its qualifying financial instruments. Convertible Instruments The Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with professional standards for “Accounting for Derivative Instruments and Hedging Activities”. Professional standards generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instruments 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. Professional standards also provide an exception to this rule when the host instrument is deemed to be conventional as defined under professional standards as “The Meaning of “Conventional Convertible Debt Instrument”. The Company accounts for convertible instruments (when it has determined that the embedded conversion options should not be bifurcated from their host instruments) in accordance with professional standards when “Accounting for Convertible Securities with Beneficial Conversion Features,” as those professional standards pertain to “Certain Convertible Instruments.” Accordingly, 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 earliest date of redemption. The Company also records when necessary deemed dividends for the intrinsic value of conversion options embedded in preferred shares 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. ASC 815-40 provides that, among other things, generally, if an event is not within the entity’s control could or require net cash settlement, then the contract shall be classified as an asset or a liability. Income Taxes The Company follows Section 740-10, Income tax (“ASC 740-10”) Fair Value Measurements and Disclosures of the FASB Accounting Standards Codification, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Statements of Operations in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that the Company believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including reversals of any existing taxable temporary differences, projected future taxable income, tax planning strategies, and the results of recent operations. If the Company determines that it would be able to realize a deferred tax asset in the future in excess of any recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company adopted section 740-10-25 of the FASB Accounting Standards Codification ("Section 740-10-25"). Section 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Section 740-10-25 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The Company had no liabilities for unrecognized income tax benefits according to the provisions of Section 740-10-25. Concentrations of Credit Risk Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash and cash equivalents. The Company places its cash and temporary cash investments with credit quality institutions. At times, such amounts may be in excess of the FDIC insurance limit. The Company does not have accounts receivable and allowance for doubtful accounts at September 30, 2017 and December 31, 2016. Net Loss per Common Share Net loss per common share is computed pursuant to section 260-10-45 Earnings Per Share (“ASC 260-10”) of the FASB Accounting Standards Codification. Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding and the member potentially outstanding during each period. In periods when a net loss is experienced, only basic net loss per share is calculated because to do otherwise would be anti-dilutive. There were 15,195,397 common share equivalents at September 30, 2017 and 16,216,652 common shares at December 31, 2016. For the three and nine months ended September 30, 2017 and 2016 these potential shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would reduce net loss per share. Stock Based Compensation All stock-based payments to employees and to nonemployee directors for their services as directors, including any grants of restricted stock and stock options, are measured at fair value on the grant date and recognized in the statements of operations as compensation or other expense over the relevant service period. Stock-based payments to nonemployees are recognized as an expense over the period of performance. Such payments are measured at fair value at the earlier of the date a performance commitment is reached or the date performance is completed. In addition, for awards that vest immediately and are non-forfeitable the measurement date is the date the award is issued. Cost of Sales Cost of sales includes the purchase cost of products sold and all costs associated with getting the products to the customers including buying and transportation costs. Research and Development The Company accounts for research and development costs in accordance with the Accounting Standards Codification subtopic 730-10, Research and Development (“ASC 730-10”). Under ASC 730-10, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and development costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. The Company incurred research and development expenses of $632,674 and $87,718 and $835,988 and $163,946 for the three and nine months ended September 30, 2017 and 2016; respectively. Shipping Costs Shipping and handling costs billed to customers are recorded in sales. Shipping costs incurred by the company are recorded in general and administrative expenses. Recently Issued Accounting Standards In September 2017, the FASB issued ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842). The effective date for ASU 2017-13 is for fiscal years beginning after December 15, 2018. We are currently evaluating the impact of adopting ASU 2017-13 on our unaudited consolidated financial statements. In July 2017, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815): Part 1 – Accounting for Certain Financial Instruments with Down Round Features and Part 2 – Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with Scope Exception Topic 480, Distinguishing Liabilities from Equity, FASB Accounting Standards Codification In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This new standard clarifies the definition of a business and provides a screen to determine when an integrated set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This new standard will be effective for the Company on January 1, 2018; however, early adoption is permitted with prospective application to any business development transaction. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) In August 2014, the FASB issued ASU 2014-15 requiring management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern, which is currently performed by the external auditors. Management will be required to perform this assessment for both interim and annual reporting periods and must make certain disclosures if it concludes that substantial doubt exists. This ASU is effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2016. The adoption of this guidance is not expected to have a material effect on our financial statements. In October 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-16-Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory. ASU 2016-16 will require the tax effects of intercompany transactions, other than sales of inventory, to be recognized currently, eliminating an exception under current GAAP in which the tax effects of intra-entity asset transfer are deferred until the transferred asset is sold to a third party or otherwise recovered through use. The guidance will be effective for the first interim period of our 2019 fiscal year, with early adoption permitted. In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) ASU N. 2016-15, “Classification of Certain Cash Receipts an Cash Payments” (“ASU 2016-15”). ASU 2016-15 provides guidance regarding the classification of certain items within the statement of cash flows. ASU 2016-15 is effective for annual periods beginning afer December 15, 2017 with early adoption permitted. In connection with its financial instruments project, the FASB issued ASU 2016-13- Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments in September 2016 and ASU 2016-01 – Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities in January 2016. · · In April 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) “ASU 2016 – 10 Revenue from Contract with Customers: identifying Performance Obligations and Licensing”. The amendments in this Update clarify the two following aspects (a) contracts with customers to transfer goods and services in exchange for consideration and (b) determining whether an entity’s promise to grant a license provides a customer with either a right to use the entity’s intellectual property (which is satisfied at a point in time) or a right to access the entity’s intellectual property (which is satisfied over time). The amendments in this Update are intended to reduce the degree of judgment necessary to comply with Topic 606. This guidance has no effective date as yet. The Company is currently evaluating the impact of adopting this guidance. In March 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) “ASU 2016 – 09 Improvements to Employee Share-Based Payment Accounting” which is intended to improve the accounting for employee share-based payments. The ASU simplifies several aspects of the accounting for share-based payment award transactions, including; the income tax consequences, classification of awards as either equity or liabilities, and the classification on the statement of cash flows. The new standard is effective for fiscal years and interim periods beginning after December 15, 2016, and upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance. In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) 2016-02, which amends the guidance in U.S. GAAP on accounting for operating leases, a lessee will be required to recognize assets and liabilities for operating leases with lease terms of more than 12 months on the balance sheet. The new standard is effective for fiscal years and interim periods beginning after December 15, 2018, and upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is not permitted. The Company is currently evaluating the impact of adopting this guidance. In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) 2016-01, which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Changes to the current guidance primarily affect the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The new standard is effective for fiscal years and interim periods beginning after December 15, 2017, and upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is not permitted except for the provision to record fair value changes for financial liabilities under the fair value option resulting from instrument-specific credit risk in other comprehensive income. The Company is currently evaluating the impact of adopting this guidance. The amendments also clarify that the guidance in Topic 275, Risks and Uncertainties, is applicable to entities that have not commenced planned principal operations. Other recent accounting pronouncements issued by the FASB and the SEC did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements

NOTE 4_ PREPAID EXPENSES

NOTE 4: PREPAID EXPENSES	9 Months Ended
	Sep. 30, 2017
Notes
NOTE 4: PREPAID EXPENSES	NOTE 4: PREPAID EXPENSES Prepaid expenses consist of the following as of September 30, 2017 and December 31, 2016: September 30, 2017 December 31, 2016 Prepaid insurance $ 62,411 $ 40,753 $ 62,411 $ 40,753 For the three and nine months ended September 30, 2017 and 2016, the Company recognized amortization of prepaid expense of $22,589, $21,425 and $63,342 and $800,479, respectively.

NOTE 5_ RESERVATION FEE DEPOSIT

NOTE 5: RESERVATION FEE DEPOSIT	9 Months Ended
	Sep. 30, 2017
Notes
NOTE 5: RESERVATION FEE DEPOSIT	NOTE 5: RESERVATION FEE DEPOSIT The Company entered into a reservation agreement with the Municipality of Almere in the Netherlands. In October 2015 the Company paid the reservation fee in the amount of $65,170. The reservation fee deposit gives the company an exclusive right to purchase the building land for a purchase price of €1,110,000. Starting in October 2015 the second reservation period was extended for a period of twelve (12) months expiring September 2016. Starting in October 2016 the second reservation period was extended to October 20, 2017 under the same terms as the previous period. If the company proceeds to purchase the building land the reservation fee will be offset against the purchase price. The Company is not entitled to a refund of the reservation fee if the current agreement is terminated by the Company in the event of insolvency or a moratorium on the transfer or assignment of rights or in the event of a failure to notify or notify on time. The agreement is not transferable. The rights and obligations of this agreement cannot be assigned. The municipality is entitled to terminate the agreement by means of a registered letter if during the reservation period compelling objections exist or arise, or through the insolvency of the Company.

NOTE 6_ PROMISSORY NOTE - RELAT

NOTE 6: PROMISSORY NOTE - RELATED PARTY	9 Months Ended
	Sep. 30, 2017
Notes
NOTE 6: PROMISSORY NOTE - RELATED PARTY	NOTE 6: PROMISSORY NOTE - RELATED PARTY On August 8, 2014 the Company entered into a Promissory Note Agreement with Can Chew Biotechnologies, LLC (CCB), a related party (the owners of CCB also own a majority of the outstanding shares of the Company), under which it borrowed $1,000,000 to fund working capital. The original loan was a demand note bearing interest at the rate of 7% per annum, which amount, along with principal, was payable upon demand. The demand note was amended effective January 1, 2015 to reduce the annual interest rate to 3%. All other terms and conditions shall remain in full force and effect. The Company is in discussions to have the demand note modified or exchanged for a longer term, fixed maturity note. The following table summarizes promissory note payable as of September 30, 2017 and December 31, 2016: September 30, 2017 December 31, 2016 Promissory note payable, due on demand, interest at 3% p.a. $ 880,000 $ 880,000 Accrued Interest 107,472 88,564 $ 987,472 $ 968,564 For the three months ended September 30, 2017 and 2016 the Company recognized interest expense of $6,654 and $7,788, respectively on this note. For the nine months ended September 30, 2017 and 2016 the Company recognized interest expense of $18,908 and $23,109, respectively.

NOTE 7_ RELATED PARTY TRANSACTI

NOTE 7: RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2017
Notes
NOTE 7: RELATED PARTY TRANSACTIONS	NOTE 7: RELATED PARTY TRANSACTIONS The Company has received working capital advances from CCB totaling $1,613,524 as of September 30, 2017, which includes $0 and $0 received during the three and nine months ended September 30, 2017; respectively. The advances currently bear no interest and are payable on demand. The Company is in discussions to have the advances reduced to a longer term, fixed maturity note. The amount was reduced by $5,543 invoices paid by the Company on behalf of CCB on August 31, 2017. The Company owes $5,000 to the president of the Company for a working capital advance of $5,000 made in May of 2014. On August 15, 2016 the Company issued 1,000,000 shares of its Series A Convertible Preferred Stock in exchange for 1,000,000 shares of its Undesignated Preferred Stock (see Footnote 10 - "Preferred Stock" for a discussion of the Company's preferred stock). The Undesignated Preferred Stock was held by Sanammad Foundation and MJNA Investment Holdings, LLC (500,000 shares each), which parties together own a majority of the common stock of the Company. Under the terms of the exchange, the 1,000,000 shares of Series A Convertible Preferred received in the exchange were immediately converted into 5,000,0000 restricted shares of the Company's common stock (2,500,000 shares for each of Sanammad Foundation and MJNA Investment Holdings, LLC). As a result, the Series A Convertible Preferred Stock is retired and no longer available for future issuance. The three members of the Sanammad Foundation also serve as the current three directors of the Company and Sanammad, along with MJNA Investment Holdings, LLC, hold a majority of the outstanding stock of the Company. On August 18, 2016 the Company issued all 500,000 shares of its newly designated Series B Preferred Stock to Sanammad Foundation in exchange for cash of $50,000. As the holders of the Series B Preferred Stock, Sanammad has designated the current directors, Dr. George E. Anastassov, Dr. Philip A. Van Damme and Mr. Lekhram Changoer as their three Series B Directors. On August 18, 2016 the Company issued all 500,000 shares of its newly designated Series C Preferred Stock to MJNA Investment Holdings, LLC in exchange for cash of $65,000. At this time the holders of the Series C Preferred Stock have decided not to elect any Series C Directors.

NOTE 8_ DUE TO FIRST INSURANCE

NOTE 8: DUE TO FIRST INSURANCE FUNDING	9 Months Ended
	Sep. 30, 2017
Notes
NOTE 8: DUE TO FIRST INSURANCE FUNDING	NOTE 8: DUE TO FIRST INSURANCE FUNDING On June 25, 2017, the Company renewed its D&O insurance policy with total premiums, taxes and fees for $85,000. A cash down payment of $17,000 was paid on June 30, 2017. Under the terms of the insurance financing, payments of $7,736, which include interest at the rate of 5.7% per annum, are due each month for nine months commencing on July 25, 2017. For the nine months ended September 30, 2017, the Company recognized insurance expense of $63,381. As of September 30, 2017 and December 31, 2016 the Company owes $44,390 and $22,978, respectively on insurance financing.

NOTE 9_ CONVERTIBLE NOTES PAYAB

NOTE 9: CONVERTIBLE NOTES PAYABLE	9 Months Ended
	Sep. 30, 2017
Notes
NOTE 9: CONVERTIBLE NOTES PAYABLE	NOTE 9: CONVERTIBLE NOTES PAYABLE The following table summarizes convertible note payable- shareholder as of September 30, 2017 and December 31, 2016 September 30, 2017 December 31, 2016 Convertible note payable, due on July 1, 2028, interest at 3.5% p.a. $ 45,000 $ 45,000 Accrued interest 1,986 792 $ 46,986 $ 45,793 On November 26, 2012, the Company entered into an interest free $50,000 convertible loan payable maturing on December 31, 2014. The note was convertible into the Company’s common stock at a conversion price of $0.10 per share. The Company was unable to repay the loan as of December 31, 2014, and obtained multiple extensions until December 31, 2015. The Company had paid no interest or other consideration in return for the extensions of the loan. Unable to obtain further extension of the maturity date, on June 29, 2016, the Company entered into a Debt Exchange Agreement with the note holder whereby the Company exchange the note having a balance due of $50,000 as of December 31, 2015, for a long-term convertible note in the amount of $50,000. The new Convertible Note (“Note”) bears interest at the rate of 3.5% per annum, payable annually beginning on July 1, 2017, and matures on July 1, 2028. The Note is convertible, in whole or in part at any time at the option of the holder, into the Company’s common stock at a conversion price of $0.01, provided however, the holder of the Note is not permitted to convert an amount of the Note that would result in the holder and its affiliates owning more than 4.9% of the Company’s outstanding common stock. The Company determined fair value of new debt $1,435,000 and as result was recorded $1,385,000 as a loss on debt extinguishment at the year end December 31, 2016. On June 30, 2016, the holder of the Note converted $5,000 face value into 500,000 shares of the Company’s common stock. The balance on the Note as of September 30, 2017 is $46,986, including interest accrued thereon of $1,986. The following table summarizes convertible note payable as of September 30, 2017 and December 31, 2016 September 30, 2017 December 31, 2016 Convertible note payable, due on April 21, 2025, interest at 4% p.a. $ 16,600 $ 216,100 Convertible note payable, due on October 1, 2029, interest at 3.5% p.a. 850,000 850,000 Convertible note payable, due on October 1, 2029, interest at 3.5% p.a. 1,000,000 1,000,000 Convertible note payable, due on December 12, 2018, interest at 8% p.a. 4,210,000 - Finance premium costs payable, due on December 12, 2018 1,050,000 - Accrued interest 168,969 15,646 Total 7,295,569 2,081,746 Less unamortized debt discount (2,188,976) (1,323,606) Convertible note payable, net 5,106,593 758,140 Less current portion 3,705,550 - Long term portion $ 1,401,043 $ 758,140 The Company has outstanding convertible note payable having a balance due of $16,679 and $216,100, as of September 30, 2017 and December 31, 2016; respectively, including interest. The Note bears interest at the rate of 4% per annum which accrues until maturity at April 21, 2025. The Note was issued in April of 2015 to a third-party as a non-refundable payment for consultancy services to be provided to the Company for a period of at least one year. The Note is convertible, in whole or in part at any time at the option of the holder, into shares of the Company’s common stock at a conversion price of $0.10, provided however, the holder of the Note is not permitted to convert an amount of the Note that would result in the holder and its affiliates owning more than 4.9% of the Company’s outstanding common stock. On June 30, 2016 the holder of the Note converted $154,000 due under the Note, including interest of $19,490, into 1,540,000 shares of the Company’s common stock. On December 29, 2016 the holder of the Note converted $29,900 due under the Note including interest of $20,100 into 500,000 shares of the Company’s common stock. On August 18, 2017 the holder of the Note converted $199,500 due under the Note, including interest of $0, into 1,995,000 shares of the Company’s common stock. On August 18, 2017, the Company repaid accrued interest $5,522. The balance on the Note as of September 30, 2017 is $16,679, including interest accrued thereon of $79. On September 16, 2016, we entered into a convertible note purchase agreement (the “Convertible Note Purchase Agreement” or “Agreement”) with a third-party investor. Under the terms of the Convertible Note Purchase Agreement the investor may acquire up to $5,000,000 of convertible notes from the Company. With various closings, under terms acceptable to the Company and the investor as of the time of each closing. Pursuant to the Agreement, on September 16, 2016 the investor provided the Company with $850,000 secured convertible note financing pursuant to four (4) Secured Convertible Promissory Notes (the “Notes”). Each of the Notes matures on October 1, 2029, and pay 3.5% compounded interest paid bi-annually. The Note are secured by the assets of the Company, may not be pre-paid without the consent of the holder, and are convertible at the option of the holder into shares of the Company common stock at a conversion price equal to (i) $0.2201 or (ii) 80% of closing price of the Company’s common stock as of the date of conversion. At the inception of the Convertible Promissory Note, the Company determined a fair value of $1,062,500 of the embedded derivative. On October 20, 2016, the terms of a above Convertible note was modified into convertible note with fixed conversion price of $0.2201. The derivative liability balance on the Note as of modified date is $1,274,422 re-classed into additional paid in capital. On October 20, 2016 a third-party investor provided the Company with $1,000,000 secured convertible note financing pursuant to three (3) Secured Convertible Promissory Notes (the “Notes”). Each of the Notes mature on October 1, 2029, and pay 3.5% compounded interest paid bi-annually. The Notes are secured by the assets of the Company, may not be pre-paid without the consent of the holder, and are convertible at the option of the holder into shares of the Company’s common stock at a fixed conversion price equal to (i) $0.2201 or (ii) 80% of closing price of the Company’s common stock as of the date of conversion.. The investor paid cash of $500,000 for one of the Notes and issued to the Company two (2) secured promissory notes of $250,000 each for two (2) Convertible Notes of $250,000 each. The two secured promissory notes issued by the investor (totaling $500,000) as payment for two (2) secured Notes totaling $500,000 mature on February 1, 2017 ($250,000) and March 1, 2017 ($250,000), bear interest at the rate of 1% per annum, are full recourse and additionally secured by 10,486,303 shares of Medical Marijuana, Inc. (Pink Sheets symbol: MJNA) and were valued at $858,828 based upon the closing price of MJNA on October 20, 2016. On October 20, 2016, the terms of a above Convertible note was modified into convertible note with fixed conversion price of $0.2201. Since the modification happened on the same day, the note was treated to have fixed conversion price and accordingly debt discount was recorded related to beneficial conversion feature. In connection with this convertible note, the Company recorded a $499,318 discount on debt, related to the beneficial conversion feature of the note to be amortized over the life of the note or until the note is converted or repaid. As of September 30, 2017 this note has not been converted. On June 12, 2017 (the “Closing Date”), the Company entered into a Securities Purchase Agreement (“SPA”) with an institutional accredited investor (“Investor”) pursuant to which Investor invested $4,000,000 (the “Financing”). On the Closing Date, the Company issued to Investor an unsecured Convertible Promissory Note (the “Note”) in the principal amount of $4,210,000, in exchange for payment by Investor of $4,000,000. The principal sum of the Note reflects the amount invested, plus a $200,000 “Original Issue Discount” (“OID”) and a $10,000 reimbursement of Investor’s legal fees. The Company also paid a placement fee of $60,000 to a third-party broker-dealer. The SPA and the Note are collectively referred to herein as the “Transaction Documents.” The Note matures in 18 months. So long as the Company is not in receipt of redemption notice (discussed below), the Note may be prepaid at any time, in whole or in part in minimum increments of $50,000, by making payment to Investor in an amount of cash equal to 125% of the amount being prepaid, plus accrued and unpaid interest. There are no payments of principal or interest due under the Note for the first six months following its issuance. Commencing on the date that is six (6) months from the issuance of the Note, Investor may redeem a portion of the Note in monthly amounts not to exceed $350,000 in any calendar month. Provided the Company has not suffered an “Event of Default” and is in compliance with certain “Equity Conditions” (unless waived by Investor in either case), the Company, in its sole discretion, may make redemption payments in cash or by the issuance of common stock. If the Company chooses to make redemption payment in cash, the cash payment is subject to a 25% premium. If the Company chooses to make the redemption payment in stock, the number of shares issuable shall be 70% (reduced to 65% if the conversion shares are not DTC eligible for a period of at least 5 days) multiplied by the average of the three (3) lowest closing bid prices in the previous twenty (20) trading days. Payments may be made in a combination of cash and stock. Events of Default include the events set forth in Section 4.1 of the Note, and include, but are not limited to, failure to make timely payments, failure to deliver conversion shares, bankruptcy, receivership, insolvency, failure to reserve required shares for issuance upon conversion, and failure to be DTC eligible. Upon an Event of Default under the Note, Investor may accelerate the outstanding principal amount of the Note, plus accrued and unpaid interest, and other amounts owing through the date of acceleration. In the event of such acceleration, the interest rate on the Note shall accrue at the lesser of 22% per annum or the maximum rate permitted under applicable law. Pursuant to the terms of the SPA the Company is required to reserve and keep available out of its authorized and unissued shares of common stock, a minimum of 2,250,000 shares of common stock. The company has recorded the 25% premium on cash payment as a liability and is amortizing it over the term of the note utilizing the effective interest method. During the three months ended September 30, 2017 and 2016 the Company amortized the debt discount on all the notes of $311,186 and $2,687, respectively, to other expenses. During the nine months ended September 30, 2017 and 2016 the Company amortized the debt discount on all the notes of $421,054 and $2,687 to other expenses.

NOTE 10_ STOCK INCENTIVE PLAN

NOTE 10: STOCK INCENTIVE PLAN	9 Months Ended
	Sep. 30, 2017
Notes
NOTE 10: STOCK INCENTIVE PLAN	NOTE 10: STOCK INCENTIVE PLAN On May 29, 2015 the Company adopted its 2015 Stock Incentive Plan. Under the Plan the Company may issue up to 10,000,000 S-8 shares to officers, employees, directors or consultants for services rendered to the Company or its affiliates or to incentivize such parties to continue to render services. S-8 shares are registered immediately upon the filing of the Plan and are unrestricted shares that are free-trading upon issuance. There were 9,856,000 shares available for issuance under the Plan as of September 30, 2017.

NOTE 11_ STOCKHOLDERS' DEFICIT

NOTE 11: STOCKHOLDERS' DEFICIT	9 Months Ended
	Sep. 30, 2017
Notes
NOTE 11: STOCKHOLDERS' DEFICIT	NOTE 11: STOCKHOLDERS’ DEFICIT Preferred Stock The Company has authorized 5,000,000 shares of preferred stock, with a par value of $0.0001 per share. Of the 5,000,000 authorized preferred shares, 4,000,000 are undesignated "blank check" preferred stock. The Company may issue such preferred shares and designate the rights, privileges and preferences of such shares at the time of designation and issuance. As of September 30, 2017 and December 31, 2016 there are -0- and -0- shares of undesignated preferred shares issued and outstanding, respectively. Series A Convertible Preferred Stock The Company also has authorized 1,000,000 shares of Series A Convertible Preferred Stock, which had been previously issued to Sanammad Foundation and subsequently assigned and transferred by Sanammad to Treo Holdings, LLC ("Treo"). On June 28, 2016 the Company, Sanammad and Treo agreed that the issuance of the Series A Convertible Preferred be rescinded and that such share issuance be cancelled. The Company accounted this cancelation of preferred stock as equity transaction and accordingly the par value of preferred stock adjusted against additional paid in capital account. Each share of the Series A Convertible Preferred Stock is convertible into five (5) shares of the Company's common stock at any time at the discretion of the holder. The Series A Convertible Preferred Stock provides for a liquidation preference as follows; In the event of any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary (a "Liquidation"), the assets of the Company available for distribution to its stockholders shall be distributed as follows. The holders of the Series A Convertible Preferred Stock shall be entitled to receive, prior to the holders of the other series of preferred stock, if any, and prior and in preference to any distribution of the assets or surplus funds of the Company to the holders of any other shares of stock of the Company by reason of their ownership of such stock: (i) all shares of common stock of any subsidiary of the Company which are held by the Company: and (ii) an amount equal to $1.00 per share with respect to each share of Series A Convertible Preferred stock, plus all declared but unpaid dividends with respect to such share. The Series A Convertible Preferred Stock also contains super-majority voting rights and a number of protective covenants. As of September 30, 2017 and December 31, 2016 there are -0- and -0- Series A Convertible Preferred shares issued and outstanding; respectively. On August 15, 2016 the Company issued 1,000,000 shares of its Series A Convertible Preferred Stock in exchange for 1,000,000 shares of its Undesignated Preferred Stock (see Footnote 10 - "Preferred Stock" for a discussion of the Company's preferred stock). The Undesignated Preferred Stock was held by Sanammad Foundation and MJNA Investment Holdings, LLC (500,000 shares each), which parties together own a majority of the common stock of the Company. Under the terms of the exchange, the 1,000,000 shares of Series A Convertible Preferred received in the exchange were immediately converted into 5,000,0000 restricted shares of the Company's common stock (2,500,000 shares for each of Sanammad Foundation and MJNA Investment Holdings, LLC). As a result, the Series A Convertible Preferred Stock is retired and no longer available for future issuance. The three members of the Sanammad Foundation also serve as the current three directors of the Company and Sanammad, along with MJNA Investment Holdings, LLC, hold a majority of the outstanding stock of the Company. During the nine months ended September 30, 2017, the Company recorded preferred dividend of $ -0-. Series B Convertible Preferred Stock On August 17, 2016 the Company designated up to 500,000 shares of a new Series B Convertible Preferred Stock (Series B Preferred Stock). The holders of the Series B Preferred are entitled to elect three members to the Company's board of directors and are entitled to cast 100 votes per share on all other matters presented to the shareholders for a vote. Each share of Series B Convertible Preferred is convertible into one share of the Company's common stock. The Series B Convertible Preferred designation contains a number of protective and restrictive covenants that restrict the Company from taking a number of actions without the prior approval of the holders of the Series B Preferred or the unanimous vote of all three Series B Directors. On August 18, 2016 the Company issued all 500,000 shares of its newly designated Series B Preferred Stock to Sanammad Foundation in exchange for cash of $50,000. As the holders of the Series B Preferred Stock, Sanammad has designated the current directors, Dr. George E. Anastassov, Dr. Phillip A. Van Damme and Mr. Lekhram Changoer as their three Series B Directors. Series C Convertible Preferred Stock On August 17, 2016 the Company designated up to 500,000 shares of a new Series C Convertible Preferred Stock (Series C Preferred Stock). The holders of the Series C Preferred are entitled to elect four members to the Company's board of directors and are entitled to cast 100 votes per share on all other matters presented to the shareholders for a vote. Each share of Series C Convertible Preferred is convertible into one share of the Company's common stock. The Series C Convertible Preferred designation contains a number of protective and restrictive covenants that restrict the Company from taking a number of actions without the prior approval of the holders of the Series C Preferred or the unanimous vote of all four Series C Directors. If at any time there are four Series C Directors, one such director must be independent as that term is defined in the Series C designation. Any challenge to the independence of a Series C Director is a right conferred only upon the holders of the Series B Convertible Preferred Stock and may only be made by the holders of the Series B Convertible Preferred Stock. On August 18, 2016 the Company issued all 500,000 shares of its newly designated Series C Preferred Stock to MJNA Investment Holdings, LLC in exchange for cash of $65,000. At this time the holders of the Series C Preferred Stock have decided not to elect any Series C Directors. Amended and Restated Bylaws On August 17, 2016 the Company amended its Bylaws to achieve the following: (i) to fix the number of authorized directors at seven (7), comprised of three (3) seats authorized for Series B Directors and four (4) seats authorized for Series C Directors, (ii) ) to set forth that upon there being four Series C Directors, one such director shall be independent as such term is defined in the certificate of designation for the Series C Convertible Preferred Stock and to set forth that the term, conditions and procedures for electing, determining and challenging such director independence are governed by the certificate of designation for the Series C Convertible Preferred Stock, (iii) to set forth that the holders of the Series B Convertible Preferred Stock and the holders of the Series C Convertible Preferred Stock have the right at any time without a meeting and without prior notice to elect their respective Series B and Series C Directors, (iv) that the holders of two-thirds (2/3) of the Series B or Series C Convertible Preferred Stock have the right at any time without a meeting and without prior notice to remove their respective Series B and Series C Directors, (v) to reduce the number of directors needed to constitute a quorum to a majority of the directors then in office, (vi) to subject the right of the board of directors to form a committee to the rights of the holders of the Series B and Series C Convertible Preferred Stock (and to eliminate any committee related provision that might conflict with the rights of the Series B and Series C holders), and (vii) to clarify and set forth that neither the stockholders (other than the holders of the Series B and Series C Convertible Preferred Stock) nor the board of directors has the right to repeal, amend or adopt bylaws without the prior consent of the holders of both the Series B Convertible Preferred Stock and the holders of the Series C Convertible Preferred Stock. Common Stock The Company has authorized 300,000,000 shares of common stock, with a par value of $0.0001 per share. As of September 30, 2017 and December 31, 2016, the Company had 54,564,441 and 52,506,441 shares of common stock issued and outstanding, respectively. On June 13, 2014, the Company entered into an employment agreement with Dr. George Anastassov, its Chief Executive Officer, Chief Financial Officer and Secretary. On September 13, 2015 following fifteen (15) months of continuous employment, and every three months thereafter, the Company was obligated to issue 125,000 restricted shares of the Company’s common stock based upon the average ten (10) day closing price immediately preceding the grant date, as quoted on Yahoo.com. During the period ended March 31, 2016, the Company issued 125,000 shares of common stock towards common stock to be issued against expenses incurred worth $52,500 in prior year. On March 13, 2016 and June 13, 2016, the Company was obligated to issue 125,000 restricted shares; respectively, of the Company’s common stock based upon the average ten (10) day closing price immediately preceding the grant date, as quoted on Yahoo.com. During the nine months ended September 30, 2017, the Company has issued 60,000 shares of common stock valued at $20,064 which were shown as stock to be issued. On May 8, 2017, the Company issued 3,000 shares of common stock valued at $31,800 for consultancy services.. During the nine months ended September 30, 2017, the Company has issued 2,039 shares of common stock valued at $18,500 which were shown as stock to be issued for consultancy service. On August 18, 2017, the Company issued 1,995,000 shares of common stock on conversion of note which is valued at $199,500.

NOTE 12_ COMMITMENT AND CONTING

NOTE 12: COMMITMENT AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2017
Notes
NOTE 12: COMMITMENT AND CONTINGENCIES	NOTE 12: COMMITMENT AND CONTINGENCIES On June 13, 2014, the Company entered into an employment agreement with Dr. George Anastassov, its Chief Executive Officer. On September 13, 2015 following fifteen (15) months of continuous employment, and every three months thereafter, the Company was obligated to issue 125,000 restricted shares of the Company’s common stock based upon the average ten (10) day closing price immediately preceding the grant date, as quoted on Yahoo.com. During the period ended March 31, 2016, the Company issued 125,000 shares of common stock towards common stock to be issued against expenses incurred worth $52,500 in prior year. On March 13, 2016 and June 13, 2016, the Company was obligated to issue 125,000 restricted shares; respectively, of the Company’s common stock based upon the average ten (10) day closing price immediately preceding the grant date, as quoted on Yahoo.com. As of December 31, 2016, the Company has issued these shares. At the year end December 31, 2016 the Company recorded $115,625 of compensation expense in the accompanying condensed consolidated financial statements, to record for the required issuance of the incentive shares. On September 1, 2016, the Company entered into an amended and restated employment agreement with Dr. George Anastassov, its Chief Executive Officer, Chief Financial Officer and Secretary. The agreement does not have a set term and may be terminated at any time by the Company or Dr. Anastassov with proper notice. Under the agreement, Dr. Anastassov receives an annual base compensation of $240,000 and an incentive payment of 2,000,000 shares of the Company’s common stock due upon execution of the agreement. Upon the one year anniversary of the agreement, the Company has the direction to grant additional equity awards to Dr. Anastassov. On September 1, 2016, the Company entered into an amended and restated employment agreement with Mr. Lekharm Changoer, its Chief Technology Officer. The agreement does not have a set term and may be terminated at any time by the Company or Mr. Changoer with proper notice. Under the agreement Mr. Changoer receives an annual base compensation of $240,000 and an incentive payment of 2,000,000 shares of the Company’s common stock due upon execution of the agreement. Upon the one year anniversary of the agreement, the Company has the discretion to grant additional equity awards to Mr. Changoer. On September 15, 2016 The company entered into an employment agreement with Philip A. Van Damme, its Chief Medical Officer. The agreement does not have a set term and may be terminated at any time by the Company or D. Van A. Damme with proper notice. Under the agreement Dr. Van A. Damme. The shares were issued in the 4 th The Company entered into a reservation agreement with the Municipality of Almere in the Netherlands. In October 2015 the Company paid the reservation fee in the amount of $65,170.The reservation fee deposit gives the company an exclusive right to purchase the building land for a purchase price of €1,110,000. Starting in October 2016 the second reservation period was extended for a period of twelve (12) months expiring October 2017. The Company may not have the ability to acquire the land prior to the expiration of the extended reservation term. Therefore, in that case, the Company intends to seek another extension of the reservation period, however, there can be no assurance that the municipality will agree to such an extension in which case the reservation fee would be forfeited. Operating Lease The Company is renting an office at 45 Rockefeller Plaza 20 th Litigation As of September 30, 2017 and this report issuing date, the Company is not a party to any pending material legal proceeding. To the knowledge of management, no federal, state or local governmental agency is presently contemplating any proceeding against the Company. To the knowledge of management, no director, executive officer or affiliate of the Company, any owner of record or beneficially of more than five percent of the Company’s Common Stock is a party adverse to the Company or has a material interest adverse to the Company in any proceeding.

NOTE 13_ GOING CONCERN

NOTE 13: GOING CONCERN	9 Months Ended
	Sep. 30, 2017
Notes
NOTE 13: GOING CONCERN	NOTE 13: GOING CONCERN The Company’s unaudited condensed consolidated financial statements have been presented assuming that the Company will continue as a going concern. As shown in the unaudited condensed consolidated financial statements, the Company has negative working capital of $3,484,745 and has an accumulated deficit of $20,800,225 has cash used in operating activities of continuing operations $2,066,292 and presently does not have the resources to accomplish its objectives during the next twelve months. These conditions raise substantial doubt about the ability of the Company to continue as a going concern. The unaudited condensed consolidated The Company intends to raise additional capital through private placements of debt and equity securities, but there can be no assurance that these funds will be available on terms acceptable to the Company, or will be sufficient to enable the Company to fully complete its development activities or sustain operations. If the Company is unable to raise sufficient additional funds, it will have to develop and implement a plan to further extend payables, reduce overhead, or scale back its current business plan until sufficient additional capital is raised to support further operations. There can be no assurance that such a plan will be successful.

NOTE 3_ SIGNIFICANT ACCOUNTIN20

NOTE 3: SIGNIFICANT ACCOUNTING POLICIES: Use of estimates (Policies)	9 Months Ended
	Sep. 30, 2017
Policies
Use of estimates	Use of estimates The preparation of the unaudited financial statements in conformity with accounting principles generally accepted in the United States of America 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 as well as the reported amounts of revenue and expenses during reporting periods. Actual results could differ from these estimates.

NOTE 3_ SIGNIFICANT ACCOUNTIN21

NOTE 3: SIGNIFICANT ACCOUNTING POLICIES: Cash equivalents (Policies)	9 Months Ended
	Sep. 30, 2017
Policies
Cash equivalents	Cash equivalents The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents.

NOTE 3_ SIGNIFICANT ACCOUNTIN22

NOTE 3: SIGNIFICANT ACCOUNTING POLICIES: Inventory (Policies)	9 Months Ended
	Sep. 30, 2017
Policies
Inventory	Inventory Inventory consists of finished goods available for sale and raw materials owned by the Company and are stated at the lower of cost or market. During the nine months ended September 30, 2017, the Company wrote off finished goods inventory worth $ -0-. As of September 30, 2017 the finished goods inventory totaled $0 and raw materials in production totaled $8,783 and raw materials for clinical trials totaled $7,744.

NOTE 3_ SIGNIFICANT ACCOUNTIN23

NOTE 3: SIGNIFICANT ACCOUNTING POLICIES: Property and equipment (Policies)	9 Months Ended
	Sep. 30, 2017
Policies
Property and equipment	Property and equipment Property and equipment are carried at cost less accumulated depreciation. Depreciation is computed using straight-line method over the estimated useful life. New assets and expenditures that extend the useful life of property or equipment are capitalized and depreciated. Expenditures for ordinary repairs and maintenance are charged to operations as incurred. For both the three and nine months ended September 30, 2017 and 2016 the Company recorded $839 and $2,516 of depreciation expense, respectively.

NOTE 3_ SIGNIFICANT ACCOUNTIN24

NOTE 3: SIGNIFICANT ACCOUNTING POLICIES: Intangible Assets (Policies)	9 Months Ended
	Sep. 30, 2017
Policies
Intangible Assets	Intangible Assets As required by generally accepted accounting principles, trademarks and patents are not amortized since they have an indefinite life. Instead, they are tested annually for impairment. Intangible assets as of September 30, 2017 amounted to $63,167 net of accumulated impairment losses of $652,265.

NOTE 3_ SIGNIFICANT ACCOUNTIN25

NOTE 3: SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Policies)	9 Months Ended
	Sep. 30, 2017
Policies
Revenue Recognition	Revenue Recognition The Company recognizes revenue on four basic criteria that must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the fee charged for services rendered and products delivered and the collectability of those fees. Revenue is generally recognized upon shipment. Revenues from continuing operations recognized for the three and nine months ended September 30, 2017 and 2016 amounted to $9,758 and $32,116 and $9,600 and $34,846, respectively.

NOTE 3_ SIGNIFICANT ACCOUNTIN26

NOTE 3: SIGNIFICANT ACCOUNTING POLICIES: Principles of Consolidation (Policies)	9 Months Ended
	Sep. 30, 2017
Policies
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of Axim Biotechnologies, Inc. and its wholly owned subsidiaries Axim Holdings, Inc. and Can Chew License Company as of September 30, 2017. All significant intercompany transactions and balances have been eliminated in consolidation.

NOTE 3_ SIGNIFICANT ACCOUNTIN27

NOTE 3: SIGNIFICANT ACCOUNTING POLICIES: Derivative Liabilities (Policies)	9 Months Ended
	Sep. 30, 2017
Policies
Derivative Liabilities	Derivative Liabilities The Company assessed the classification of its derivative financial instruments as of September 30, 2017, which consist of convertible instruments and rights to shares of the Company’s common stock, and determined that such derivatives meet the criteria for liability classification under ASC 815. ASC 815 generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments. These three 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 subject to the requirement of ASC 815. ASC 815 also provides an exception to this rule when the host instrument is deem to be conventional, as described.

NOTE 3_ SIGNIFICANT ACCOUNTIN28

NOTE 3: SIGNIFICANT ACCOUNTING POLICIES: Fair Value of Financial Instruments (Policies)	9 Months Ended
	Sep. 30, 2017
Policies
Fair Value of Financial Instruments	Fair Value of Financial Instruments Effective January 1, 2008, the Company adopted FASB ASC 820-Fair Value Measurements and Disclosures, or ASC 820, for assets and liabilities measured at fair value on a recurring basis. ASC 820 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements established a framework for measuring fair value and expands disclosure about such fair value measurements. The adoption of ASC 820 did not have an impact the Company’s financial position or operating results, but did expand certain disclosures. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer liability in an orderly transaction between market participants at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market date Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. The Company did not have any Level 2 or Level 3 assets or liabilities as of September 30, 2017, with the exception of its convertible notes payable and derivative liability. The carrying amounts of these liabilities at September 30, 2017 approximate their respective fair value based on the Company’s incremental borrowing rate. Cash is considered to be highly liquid and easily tradable as of September 30, 2017 and therefore classified as Level 1 within our fair value hierarchy. In addition, FASB ASC 825-10-25 Fair Value Option, or ASC 825-10-25, was effective for January 1, 2008. ASC 825-10-25 expands opportunities to use fair value measurements in financial reporting and permits entities to choose to measure many financial instruments and certain other items at fair value. The Company did not elect the fair value options for any of its qualifying financial instruments.

NOTE 3_ SIGNIFICANT ACCOUNTIN29

NOTE 3: SIGNIFICANT ACCOUNTING POLICIES: Convertible Instruments (Policies)	9 Months Ended
	Sep. 30, 2017
Policies
Convertible Instruments	Convertible Instruments The Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with professional standards for “Accounting for Derivative Instruments and Hedging Activities”. Professional standards generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instruments 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. Professional standards also provide an exception to this rule when the host instrument is deemed to be conventional as defined under professional standards as “The Meaning of “Conventional Convertible Debt Instrument”. The Company accounts for convertible instruments (when it has determined that the embedded conversion options should not be bifurcated from their host instruments) in accordance with professional standards when “Accounting for Convertible Securities with Beneficial Conversion Features,” as those professional standards pertain to “Certain Convertible Instruments.” Accordingly, 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 earliest date of redemption. The Company also records when necessary deemed dividends for the intrinsic value of conversion options embedded in preferred shares 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. ASC 815-40 provides that, among other things, generally, if an event is not within the entity’s control could or require net cash settlement, then the contract shall be classified as an asset or a liability.

NOTE 3_ SIGNIFICANT ACCOUNTIN30

NOTE 3: SIGNIFICANT ACCOUNTING POLICIES: Income Taxes (Policies)	9 Months Ended
	Sep. 30, 2017
Policies
Income Taxes	Income Taxes The Company follows Section 740-10, Income tax (“ASC 740-10”) Fair Value Measurements and Disclosures of the FASB Accounting Standards Codification, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Statements of Operations in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that the Company believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including reversals of any existing taxable temporary differences, projected future taxable income, tax planning strategies, and the results of recent operations. If the Company determines that it would be able to realize a deferred tax asset in the future in excess of any recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company adopted section 740-10-25 of the FASB Accounting Standards Codification ("Section 740-10-25"). Section 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Section 740-10-25 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The Company had no liabilities for unrecognized income tax benefits according to the provisions of Section 740-10-25.

NOTE 3_ SIGNIFICANT ACCOUNTIN31

NOTE 3: SIGNIFICANT ACCOUNTING POLICIES: Concentrations of Credit Risk (Policies)	9 Months Ended
	Sep. 30, 2017
Policies
Concentrations of Credit Risk	Concentrations of Credit Risk Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash and cash equivalents. The Company places its cash and temporary cash investments with credit quality institutions. At times, such amounts may be in excess of the FDIC insurance limit. The Company does not have accounts receivable and allowance for doubtful accounts at September 30, 2017 and December 31, 2016.

NOTE 3_ SIGNIFICANT ACCOUNTIN32

NOTE 3: SIGNIFICANT ACCOUNTING POLICIES: Net Loss per Common Share (Policies)	9 Months Ended
	Sep. 30, 2017
Policies
Net Loss per Common Share	Net Loss per Common Share Net loss per common share is computed pursuant to section 260-10-45 Earnings Per Share (“ASC 260-10”) of the FASB Accounting Standards Codification. Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding and the member potentially outstanding during each period. In periods when a net loss is experienced, only basic net loss per share is calculated because to do otherwise would be anti-dilutive. There were 15,195,397 common share equivalents at September 30, 2017 and 16,216,652 common shares at December 31, 2016. For the three and nine months ended September 30, 2017 and 2016 these potential shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would reduce net loss per share.

NOTE 3_ SIGNIFICANT ACCOUNTIN33

NOTE 3: SIGNIFICANT ACCOUNTING POLICIES: Stock Based Compensation (Policies)	9 Months Ended
	Sep. 30, 2017
Policies
Stock Based Compensation	Stock Based Compensation All stock-based payments to employees and to nonemployee directors for their services as directors, including any grants of restricted stock and stock options, are measured at fair value on the grant date and recognized in the statements of operations as compensation or other expense over the relevant service period. Stock-based payments to nonemployees are recognized as an expense over the period of performance. Such payments are measured at fair value at the earlier of the date a performance commitment is reached or the date performance is completed. In addition, for awards that vest immediately and are non-forfeitable the measurement date is the date the award is issued.

NOTE 3_ SIGNIFICANT ACCOUNTIN34

NOTE 3: SIGNIFICANT ACCOUNTING POLICIES: Cost of Sales (Policies)	9 Months Ended
	Sep. 30, 2017
Policies
Cost of Sales	Cost of Sales Cost of sales includes the purchase cost of products sold and all costs associated with getting the products to the customers including buying and transportation costs.

NOTE 3_ SIGNIFICANT ACCOUNTIN35

NOTE 3: SIGNIFICANT ACCOUNTING POLICIES: Research and Development (Policies)	9 Months Ended
	Sep. 30, 2017
Policies
Research and Development	Research and Development The Company accounts for research and development costs in accordance with the Accounting Standards Codification subtopic 730-10, Research and Development (“ASC 730-10”). Under ASC 730-10, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and development costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. The Company incurred research and development expenses of $632,674 and $87,718 and $835,988 and $163,946 for the three and nine months ended September 30, 2017 and 2016; respectively.

NOTE 3_ SIGNIFICANT ACCOUNTIN36

NOTE 3: SIGNIFICANT ACCOUNTING POLICIES: Shipping Costs (Policies)	9 Months Ended
	Sep. 30, 2017
Policies
Shipping Costs	Shipping Costs Shipping and handling costs billed to customers are recorded in sales. Shipping costs incurred by the company are recorded in general and administrative expenses.

NOTE 3_ SIGNIFICANT ACCOUNTIN37

NOTE 3: SIGNIFICANT ACCOUNTING POLICIES: Recently Issued Accounting Standards (Policies)	9 Months Ended
	Sep. 30, 2017
Policies
Recently Issued Accounting Standards	Recently Issued Accounting Standards In September 2017, the FASB issued ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842). The effective date for ASU 2017-13 is for fiscal years beginning after December 15, 2018. We are currently evaluating the impact of adopting ASU 2017-13 on our unaudited consolidated financial statements. In July 2017, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815): Part 1 – Accounting for Certain Financial Instruments with Down Round Features and Part 2 – Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with Scope Exception Topic 480, Distinguishing Liabilities from Equity, FASB Accounting Standards Codification In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This new standard clarifies the definition of a business and provides a screen to determine when an integrated set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This new standard will be effective for the Company on January 1, 2018; however, early adoption is permitted with prospective application to any business development transaction. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) In August 2014, the FASB issued ASU 2014-15 requiring management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern, which is currently performed by the external auditors. Management will be required to perform this assessment for both interim and annual reporting periods and must make certain disclosures if it concludes that substantial doubt exists. This ASU is effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2016. The adoption of this guidance is not expected to have a material effect on our financial statements. In October 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-16-Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory. ASU 2016-16 will require the tax effects of intercompany transactions, other than sales of inventory, to be recognized currently, eliminating an exception under current GAAP in which the tax effects of intra-entity asset transfer are deferred until the transferred asset is sold to a third party or otherwise recovered through use. The guidance will be effective for the first interim period of our 2019 fiscal year, with early adoption permitted. In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) ASU N. 2016-15, “Classification of Certain Cash Receipts an Cash Payments” (“ASU 2016-15”). ASU 2016-15 provides guidance regarding the classification of certain items within the statement of cash flows. ASU 2016-15 is effective for annual periods beginning afer December 15, 2017 with early adoption permitted. In connection with its financial instruments project, the FASB issued ASU 2016-13- Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments in September 2016 and ASU 2016-01 – Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities in January 2016. · · In April 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) “ASU 2016 – 10 Revenue from Contract with Customers: identifying Performance Obligations and Licensing”. The amendments in this Update clarify the two following aspects (a) contracts with customers to transfer goods and services in exchange for consideration and (b) determining whether an entity’s promise to grant a license provides a customer with either a right to use the entity’s intellectual property (which is satisfied at a point in time) or a right to access the entity’s intellectual property (which is satisfied over time). The amendments in this Update are intended to reduce the degree of judgment necessary to comply with Topic 606. This guidance has no effective date as yet. The Company is currently evaluating the impact of adopting this guidance. In March 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) “ASU 2016 – 09 Improvements to Employee Share-Based Payment Accounting” which is intended to improve the accounting for employee share-based payments. The ASU simplifies several aspects of the accounting for share-based payment award transactions, including; the income tax consequences, classification of awards as either equity or liabilities, and the classification on the statement of cash flows. The new standard is effective for fiscal years and interim periods beginning after December 15, 2016, and upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance. In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) 2016-02, which amends the guidance in U.S. GAAP on accounting for operating leases, a lessee will be required to recognize assets and liabilities for operating leases with lease terms of more than 12 months on the balance sheet. The new standard is effective for fiscal years and interim periods beginning after December 15, 2018, and upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is not permitted. The Company is currently evaluating the impact of adopting this guidance. In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) 2016-01, which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Changes to the current guidance primarily affect the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The new standard is effective for fiscal years and interim periods beginning after December 15, 2017, and upon adoption, an entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet at the beginning of the first reporting period in which the guidance is effective. Early adoption is not permitted except for the provision to record fair value changes for financial liabilities under the fair value option resulting from instrument-specific credit risk in other comprehensive income. The Company is currently evaluating the impact of adopting this guidance. The amendments also clarify that the guidance in Topic 275, Risks and Uncertainties, is applicable to entities that have not commenced planned principal operations. Other recent accounting pronouncements issued by the FASB and the SEC did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements

NOTE 4_ PREPAID EXPENSES_ Sched

NOTE 4: PREPAID EXPENSES: Schedule of Prepaid Expenses (Tables)	9 Months Ended
	Sep. 30, 2017
Tables/Schedules
Schedule of Prepaid Expenses	September 30, 2017 December 31, 2016 Prepaid insurance $ 62,411 $ 40,753 $ 62,411 $ 40,753

NOTE 6_ PROMISSORY NOTE - REL39

NOTE 6: PROMISSORY NOTE - RELATED PARTY: Schedule of Promissory Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2017
Tables/Schedules
Schedule of Promissory Notes Payable	September 30, 2017 December 31, 2016 Promissory note payable, due on demand, interest at 3% p.a. $ 880,000 $ 880,000 Accrued Interest 107,472 88,564 $ 987,472 $ 968,564

NOTE 9_ CONVERTIBLE NOTES PAY40

NOTE 9: CONVERTIBLE NOTES PAYABLE: Schedule of Convertible Notes Payable, Shareholder (Tables)	9 Months Ended
	Sep. 30, 2017
Tables/Schedules
Schedule of Convertible Notes Payable, Shareholder	September 30, 2017 December 31, 2016 Convertible note payable, due on July 1, 2028, interest at 3.5% p.a. $ 45,000 $ 45,000 Accrued interest 1,986 792 $ 46,986 $ 45,793

NOTE 9_ CONVERTIBLE NOTES PAY41

NOTE 9: CONVERTIBLE NOTES PAYABLE: Schedule of Convertible Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2017
Tables/Schedules
Schedule of Convertible Notes Payable	September 30, 2017 December 31, 2016 Convertible note payable, due on April 21, 2025, interest at 4% p.a. $ 16,600 $ 216,100 Convertible note payable, due on October 1, 2029, interest at 3.5% p.a. 850,000 850,000 Convertible note payable, due on October 1, 2029, interest at 3.5% p.a. 1,000,000 1,000,000 Convertible note payable, due on December 12, 2018, interest at 8% p.a. 4,210,000 - Finance premium costs payable, due on December 12, 2018 1,050,000 - Accrued interest 168,969 15,646 Total 7,295,569 2,081,746 Less unamortized debt discount (2,188,976) (1,323,606) Convertible note payable, net 5,106,593 758,140 Less current portion 3,705,550 - Long term portion $ 1,401,043 $ 758,140

NOTE 1_ ORGANIZATION (Details)

NOTE 1: ORGANIZATION (Details)	9 Months Ended
	Sep. 30, 2017
Details
Entity Incorporation, State Country Name	Nevada
Entity Incorporation, Date of Incorporation	Nov. 18, 2010
Entity Information, Former Legal or Registered Name	Axim International Inc.
Entity Information, Date to Change Former Legal or Registered Name	Jul. 24, 2014

NOTE 3_ SIGNIFICANT ACCOUNTIN43

NOTE 3: SIGNIFICANT ACCOUNTING POLICIES: Inventory (Details)	9 Months Ended
	Sep. 30, 2017USD ($)
Details
Inventory write-off, Finished Goods	$ 0
Inventory, Finished Goods	0
Inventory, Raw Materials in Production	8,783
Inventory, Raw Materials for clinical trials	$ 7,744

NOTE 3_ SIGNIFICANT ACCOUNTIN44

NOTE 3: SIGNIFICANT ACCOUNTING POLICIES: Property and equipment (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Details
Depreciation	$ 839	$ 839	$ 2,517	$ 2,516

NOTE 3_ SIGNIFICANT ACCOUNTIN45

NOTE 3: SIGNIFICANT ACCOUNTING POLICIES: Intangible Assets (Details)	9 Months Ended
	Sep. 30, 2017USD ($)
Details
Intangible Assets, Net (Excluding Goodwill)	$ 63,167
Impairment of Intangible Assets (Excluding Goodwill)	$ 652,265

NOTE 3_ SIGNIFICANT ACCOUNTIN46

NOTE 3: SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Details
Revenue, Continuing Operations	$ 9,758	$ 9,600	$ 32,116	$ 34,846

NOTE 3_ SIGNIFICANT ACCOUNTIN47

NOTE 3: SIGNIFICANT ACCOUNTING POLICIES: Net Loss per Common Share (Details) - shares	Sep. 30, 2017	Dec. 31, 2016
Details
Common Share Equivalents	15,195,397	16,216,652

NOTE 3_ SIGNIFICANT ACCOUNTIN48

NOTE 3: SIGNIFICANT ACCOUNTING POLICIES: Research and Development (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Details
Research and development expenses	$ 632,674	$ 87,718	$ 835,988	$ 163,946

NOTE 4_ PREPAID EXPENSES_ Sch49

NOTE 4: PREPAID EXPENSES: Schedule of Prepaid Expenses (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Details
Prepaid expenses	$ 62,411	$ 40,753

NOTE 4_ PREPAID EXPENSES (Detai

NOTE 4: PREPAID EXPENSES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Details
Amortization of Prepaid Expenses	$ 22,589	$ 63,342	$ 21,425	$ 800,479

NOTE 5_ RESERVATION FEE DEPOS51

NOTE 5: RESERVATION FEE DEPOSIT (Details)	1 Months Ended
	Oct. 31, 2015USD ($)
Details
Reservation Fee	$ 65,170

NOTE 6_ PROMISSORY NOTE - REL52

NOTE 6: PROMISSORY NOTE - RELATED PARTY: Schedule of Promissory Notes Payable (Details) - Promissory note - related party - USD ($)	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument, Description	Promissory note payable
Debt Instrument, Interest Rate, Stated Percentage	3.00%
Debt Instrument, Face Amount	$ 880,000	$ 880,000
Interest Payable, Current	107,472	88,564
Long-term Debt	$ 987,472	$ 968,564

NOTE 6_ PROMISSORY NOTE - REL53

NOTE 6: PROMISSORY NOTE - RELATED PARTY (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Promissory note - related party
Interest Expense, Promissory Note	$ 6,654	$ 7,788	$ 18,908	$ 23,109

NOTE 7_ RELATED PARTY TRANSAC54

NOTE 7: RELATED PARTY TRANSACTIONS (Details)	9 Months Ended
	Sep. 30, 2017USD ($)
Related Party Transaction 1
Related Party Transaction, Description of Transaction	Company has received working capital advances from CCB
Related Party Transaction, Amounts of Transaction	$ 1,613,524
Related Party Transaction, Date	Sep. 30, 2017
Related Party Transaction 2
Related Party Transaction, Description of Transaction	Company owes $5,000 to the president of the Company
Related Party Transaction, Amounts of Transaction	$ 5,000
Related Party Transaction 3
Related Party Transaction, Description of Transaction	Company issued 1,000,000 shares of its Series A Convertible Preferred Stock
Related Party Transaction, Date	Aug. 15, 2016
Related Party Transaction 4
Related Party Transaction, Description of Transaction	Company issued all 500,000 shares of its newly designated Series B Preferred Stock
Related Party Transaction, Amounts of Transaction	$ 50,000
Related Party Transaction, Date	Aug. 18, 2016
Related Party Transaction 5
Related Party Transaction, Description of Transaction	Company issued all 500,000 shares of its newly designated Series C Preferred Stock
Related Party Transaction, Amounts of Transaction	$ 65,000
Related Party Transaction, Date	Aug. 18, 2016

NOTE 8_ DUE TO FIRST INSURANC55

NOTE 8: DUE TO FIRST INSURANCE FUNDING (Details)	9 Months Ended
	Sep. 30, 2017USD ($)
Details
Insurance, Cash Down Payment	$ 17,000

NOTE 9_ CONVERTIBLE NOTES PAY56

NOTE 9: CONVERTIBLE NOTES PAYABLE: Schedule of Convertible Notes Payable, Shareholder (Details) - Convertible notes payable due to shareholder - USD ($)	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument, Description	Convertible note payable, due on July 1, 2028, interest at 3.5% p.a.
Debt Instrument, Maturity Date	Jul. 1, 2028
Debt Instrument, Interest Rate, Stated Percentage	3.50%
Debt Instrument, Face Amount	$ 45,000	$ 45,000
Interest Payable, Current	1,986	792
Long-term Debt	$ 46,986	$ 45,793

NOTE 9_ CONVERTIBLE NOTES PAY57

NOTE 9: CONVERTIBLE NOTES PAYABLE: Schedule of Convertible Notes Payable (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Total	$ 7,295,569	$ 2,081,746
Less unamortized debt discount	(2,188,976)	(1,323,606)
Convertible note payable, net	5,106,593	758,140
Less current portion	3,705,550	0
Long term portion	$ 1,401,043	758,140
Convertible Note 1
Debt Instrument, Description	Convertible note payable
Debt Instrument, Maturity Date	Apr. 21, 2025
Debt Instrument, Interest Rate, Stated Percentage	4.00%
Debt Instrument, Face Amount	$ 16,600	216,100
Convertible Note 2
Debt Instrument, Description	Convertible note payable
Debt Instrument, Maturity Date	Oct. 1, 2029
Debt Instrument, Interest Rate, Stated Percentage	3.50%
Debt Instrument, Face Amount	$ 0	850,000
Convertible Note 3
Debt Instrument, Description	Convertible note payable
Debt Instrument, Maturity Date	Oct. 1, 2029
Debt Instrument, Interest Rate, Stated Percentage	3.50%
Debt Instrument, Face Amount	$ 1,000,000	1,000,000
Convertible Note 4
Debt Instrument, Description	Convertible note payable
Debt Instrument, Maturity Date	Dec. 12, 2018
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Debt Instrument, Face Amount	$ 4,210,000	0
Finance Premium Costs
Debt Instrument, Description	Finance premium costs payable
Debt Instrument, Maturity Date	Dec. 12, 2018
Debt Instrument, Face Amount	$ 1,050,000	0
Convertible Notes
Accrued interest	$ 168,969	$ 15,646

NOTE 10_ STOCK INCENTIVE PLAN (

NOTE 10: STOCK INCENTIVE PLAN (Details)	Sep. 30, 2017shares
Details
Stock Incentive Plan, Shares Available for Issuance	9,856,000

NOTE 11_ STOCKHOLDERS' DEFICIT

NOTE 11: STOCKHOLDERS' DEFICIT (Details) - $ / shares	Sep. 30, 2017	Dec. 31, 2016	Aug. 18, 2016
Shares authorized, Series A Convertible Preferred Stock	1,000,000
Shares issued, Series B Preferred Stock			500,000
Shares issued, Series C Preferred Stock			500,000
Common Stock, Shares Authorized	300,000,000
Common Stock, Par or Stated Value Per Share		$ 0.0001
Common Stock, Shares, Issued	54,564,441	52,506,441
Preferred Stock
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001

NOTE 12_ COMMITMENT AND CONTI60

NOTE 12: COMMITMENT AND CONTINGENCIES (Details)	9 Months Ended
	Sep. 30, 2017
Commitment 1
Other Commitments, Description	On June 13, 2014, the Company entered into an employment agreement with Dr. George Anastassov, its Chief Executive Officer
Commitment 2
Other Commitments, Description	On September 1, 2016, the Company entered into an amended and restated employment agreement with Dr. George Anastassov, its Chief Executive Officer, Chief Financial Officer and Secretary.
Commitment 3
Other Commitments, Description	On September 1, 2016, the Company entered into an amended and restated employment agreement with Mr. Lekharm Changoer, its Chief Technology Officer
Commitment 4
Other Commitments, Description	On September 15, 2016 The company entered into an employment agreement with Philip A. Van Damme, its Chief Medical Officer.
Commitment 5
Other Commitments, Description	The Company entered into a reservation agreement with the Municipality of Almere in the Netherlands.
Commitment 6
Other Commitments, Description	The Company is renting an office

NOTE 13_ GOING CONCERN (Details

NOTE 13: GOING CONCERN (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Details
Working Capital	$ (3,484,745)
Accumulated deficit	(20,800,225)		$ (18,069,636)
Net cash used in operating activities	$ (2,066,292)	$ (761,694)