AXIM Biotechnologies (AXIM) 10-Q/A 18 Aug 20 2020 Q2 Quarterly report (amended) Financial data

Document and Entity Information

Document and Entity Information - $ / shares	Aug. 14, 2020	Jun. 30, 2020
Details
Registrant CIK		0001514946
Fiscal Year End		--12-31
Document Type		10-Q/A
Document Quarterly Report		true
Document Period End Date		Jun. 30, 2020
Document Transition Report		false
Entity File Number		000-54296
Entity Registrant Name		AXIM Biotechnologies, Inc.
Entity Incorporation, State or Country Code		NV
Entity Tax Identification Number		27-4029386
Entity Address, Address Line One		6191 Cornerstone Court
Entity Address, Address Line Two		E. Suite 114
Entity Address, City or Town		San Diego
Entity Address, State or Province		CA
Entity Address, Postal Zip Code		92121
Entity Address, Address Description		Address of principal executive offices
City Area Code		858
Local Phone Number		923-4422
Phone Fax Number Description		Registrant’s telephone number, including area code
Entity Current Reporting Status		Yes
Entity Interactive Data Current		No
Entity Filer Category		Non-accelerated Filer
Entity Small Business		true
Entity Emerging Growth Company		false
Entity Shell Company		false
Entity Common Stock, Shares Outstanding	118,285,599
Entity Listing, Par Value Per Share	$ 0.0001
Amendment Flag		false
Document Fiscal Year Focus		2020
Document Fiscal Period Focus		Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (June 30, 2020 Unaudited) - USD ($)		Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash		$ 891,432	$ 511,630
Notes receivable- related party		102,726	0
Prepaid expenses		104,306	77,606
Marketable securities		0	213,745
Investment in Joint Venture		27,490	27,490
Current assets of discontinued operations		0	808,657
Total current assets		1,125,954	1,639,128
Property, Plant and Equipment, Net		88,475	2,237
Other Assets:
Patent - Sapphire		246,396	0
Goodwill		3,541,451	0
Research in progress		5,900,000	0
Security deposit		12,785	0
Operating lease right-of-use asset		156,491	0
Other assets of discontinued operations		0	50,534
Total other assets		9,857,123	50,534
TOTAL ASSETS		11,071,552	1,691,899
Current liabilities:
Accounts payable and accrued liabilities		320,045	222,204
Due to Cross & Company		609,835	0
Due to shareholder		2,190	5,000
Due to first insurance funding		78,054	42,121
Promissory note (including accrued interest of $9,780 and $0, respectively)		333,998	0
Current liabilities of discontinued operations		1,603,441	3,126,106
Total current liabilities		2,947,563	3,395,431
Long-term liabilities:
Deferred tax liability		1,845,000	0
Operating lease liability		156,491	0
Total long-term liabilities		7,124,884	5,056,865
TOTAL LIABILITIES		10,072,447	8,452,296
STOCKHOLDERS' DEFICIT
Common Stock, Value, Issued		11,314	6,485
Additional paid in capital		38,400,539	28,623,060
Common stock, to be issued		135,000	50,000
Accumulated deficit		(37,547,798)	(35,440,042)
TOTAL STOCKHOLDERS' DEFICIT		999,105	(6,760,397)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT		11,071,552	1,691,899
Series B Convertible Preferred Stock
STOCKHOLDERS' DEFICIT
Preferred Stock, Value, Issued		0	50
Series C Convertible Preferred Stock
STOCKHOLDERS' DEFICIT
Preferred Stock, Value, Issued		50	50
Convertible note payable
Long-term liabilities:
Convertible note payable	[1]	983,375	912,954
Convertible note payable - related party
Long-term liabilities:
Convertible note payable		4,088,648	4,093,333
Convertible note payable - shareholder
Long-term liabilities:
Convertible note payable		$ 51,370	$ 50,578
[1]	See Note 12.

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (June 30, 2020 Unaudited) - Parenthetical - USD ($)		Jun. 30, 2020	Dec. 31, 2019
Preferred Stock, Shares Issued		300,000,000
Preferred Stock, Shares Outstanding		300,000,000
Common Stock, Par or Stated Value Per Share		$ 0.0001	$ 0.0001
Common Stock, Shares, Issued		113,144,222	64,854,539
Common Stock, Shares, Outstanding		113,144,222	64,854,539
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 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		0	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		$ 9,780	$ 0
Convertible note payable
Interest Payable, Current	[1]	197,196	168,208
Debt Instrument, Unamortized Discount	[1]	888,299	739,732
Convertible note payable - related party
Interest Payable, Current		88,648	93,333
Convertible note payable - shareholder
Interest Payable, Current		$ 6,370	$ 5,578
[1]	See Note 12.

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Details
Revenues	$ 0	$ 0	$ 0	$ 0
Operating Expenses:
Research and development expenses	121,437	0	126,292	0
Selling, general and administrative	537,140	582,604	1,257,816	2,055,696
Convertible note payable	4,285	839	5,124	1,678
Total operating expenses from continuing operations	662,862	583,443	1,389,232	2,057,374
Loss from continuing operations	(662,862)	(583,443)	(1,389,232)	(2,057,374)
Other (income) expenses:
Interest income	(158)	0	(158)	0
Marketable Securities, Unrealized Gain (Loss)	0	(113,400)	104,705	(138,400)
Marketable Securities, Realized Gain (Loss)	109,040	0	109,040	0
Amortization of note discount	22,071	18,662	41,432	37,325
Interest expense	55,957	49,388	106,075	98,225
Total other (income) expenses	186,910	(45,350)	361,094	(2,850)
Loss before provision of income tax	(849,772)	(538,093)	(1,750,326)	(2,054,524)
Provision for income tax	0	0	0	0
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest	(849,772)	(538,093)	(1,750,326)	(2,054,524)
Income(loss) from discontinued operations	770,383	(1,267,055)	(357,430)	(2,093,303)
NET INCOME (LOSS)	(79,389)	(1,805,148)	(2,107,756)	(4,147,827)
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ (79,389)	$ (1,805,148)	$ (2,107,756)	$ (4,147,827)
Earning per share from continuing operations
Basic	$ (0.01)	$ (0.01)	$ (0.02)	$ (0.03)
Diluted	(0.01)	(0.01)	(0.02)	(0.03)
Basic	0.01	(0.02)	0	(0.03)
Diluted	0.01	(0.02)	0	(0.03)
Basic	0	(0.03)	(0.02)	(0.07)
Diluted	$ 0	$ (0.03)	$ (0.02)	$ (0.07)
Weighted average common shares outstanding - basic and diluted	128,464,227	61,611,271	101,877,631	60,936,194

Condensed Consolidated Statemen

Condensed Consolidated Statement of Stockholders' Deficit (Unaudited) - USD ($)	Common Stock	Preferred Stock	Series A Convertible Preferred stock	Series B Convertible Preferred Stock	Series C Convertible Preferred Stock	Capital Units	Additional Paid-in Capital	Retained Earnings	Total
Equity Balance, Starting at Dec. 31, 2018	$ 5,958	$ 0	$ 0	$ 50	$ 50	$ 41,000	$ 22,863,608	$ (28,992,485)	$ (6,081,819)
Shares Outstanding, Starting at Dec. 31, 2018	59,582,890	0	0	500,000	500,000
Common stock issued against common stock to be issued, Value	$ 0	$ 0	$ 0	$ 0	$ 0	7,500	0	0	7,500
Common stock issued against common stock to be issued, Shares	0	0	0	0	0
Stock based compensation - stock options, Value	$ 0	$ 0	$ 0	$ 0	$ 0	0	1,137,500	0	1,137,500
Common stock issued under registration statement on Form S-3, Value	$ 125	$ 0	$ 0	$ 0	$ 0	0	1,592,687	0	1,592,812
Common stock issued under registration statement on Form S-3, Shares	1,250,000	0	0	0	0
Common stock issued per stock purchase agreement, Value	$ 24	$ 0	$ 0	$ 0	$ 0	0	399,976	0	400,000
Common stock issued per stock purchase agreement, Shares	239,521	0	0	0	0
Net Income (Loss)		$ 0	$ 0	$ 0	$ 0	0	0	(2,342,677)	(2,342,677)
Shares Outstanding, Ending at Mar. 31, 2019	61,072,411	0	0	500,000	500,000
Equity Balance, Ending at Mar. 31, 2019	$ 6,107	$ 0	$ 0	$ 50	$ 50	48,500	25,993,771	(31,335,162)	(5,286,684)
Common stock issued against common stock to be issued, Value	$ 2	$ 0	$ 0	$ 0	$ 0	(48,500)	48,498	0	0
Common stock issued against common stock to be issued, Shares	19,668	0	0	0	0
Common stock issued under registration statement on Form S-3, Value	$ 75	$ 0	$ 0	$ 0	$ 0	0	695,926	0	696,001
Common stock issued under registration statement on Form S-3, Shares	750,000	0	0	0	0
Common stock to be issued for consulting services, Value	$ 0	$ 0	$ 0	$ 0	$ 0	7,500	0	0	7,500
Common stock to be issued for consulting services, Shares	0	0	0	0	0
Gain on settlement of liabilities transferred to capital	$ 0	$ 0	$ 0	$ 0	$ 0	0	0	0	0
Fair value of stock options	0	0	0	0	0	0	227,500	0	227,500
Net Income (Loss)	$ 0	$ 0	$ 0	$ 0	$ 0	0	0	(1,805,150)	(1,805,150)
Shares Outstanding, Ending at Jun. 30, 2019	61,842,079	0	0	500,000	500,000
Equity Balance, Ending at Jun. 30, 2019	$ 6,184	$ 0	$ 0	$ 50	$ 50	7,500	26,965,695	33,140,312	(6,160,833)
Equity Balance, Starting at Dec. 31, 2019	$ 6,485	$ 0	$ 0	$ 50	$ 50	50,000	28,623,060	(35,440,042)	(6,760,397)
Shares Outstanding, Starting at Dec. 31, 2019	64,854,539	0	0	500,000	500,000
Common stock issued against common stock to be issued, Value	$ 25	$ 0	$ 0	$ 0	$ 0	(50,000)	49,975	0	0
Common stock issued against common stock to be issued, Shares	250,000	0	0	0	0
Common stock issued under registration statement on Form S-3, Value	$ 355	$ 0	$ 0	$ 0	$ 0	0	962,145	0	962,500
Common stock issued under registration statement on Form S-3, Shares	3,541,667	0	0	0	0
Common stock to be issued for consulting services, Value	$ 66	$ 0	$ 0	$ 0	$ 0	0	287,434	0	287,500
Common stock to be issued for consulting services, Shares	662,839	0	0	0	0
Subscription price adjustment, Value	$ 0	$ 0	$ 0	$ 0	$ 0	0	(518,948)	0	(518,948)
Beneficial conversion of 190K convertible note, Value		$ 0	$ 0	$ 0	$ 0	0	190,000	0	190,000
Beneficial conversion of 190K convertible note, Shares	0	0	0	0	0
Common stock issued for acquisition, Value	$ 5,400	$ 0	$ 0	$ 0	$ 0	0	7,500,600	0	7,506,000
Common stock issued for acquisition, Shares	54,000,000	0	0	0	0
Net Income (Loss)	$ 0	$ 0	$ 0	$ 0	$ 0	0	0	(2,028,367)	(2,028,367)
Shares Outstanding, Ending at Mar. 31, 2020	123,309,045	0	0	500,000	500,000
Equity Balance, Ending at Mar. 31, 2020	$ 12,331	$ 0	$ 0	$ 50	$ 50	0	37,094,266	(37,468,409)	(361,712)
Common stock issued under registration statement on Form S-3, Value	$ 395	$ 0	$ 0	$ 0	$ 0	0	547,605	0	548,000
Common stock issued under registration statement on Form S-3, Shares	3,953,125	0	0	0	0
Common stock issued for acquisition, Value	$ 397	$ 0	$ 0	$ 0	$ 0	0	699,603	0	700,000
Common stock issued for acquisition, Shares	3,975,383	0	0	0	0
Common stock to be issued	$ 0	$ 0	$ 0	$ 0	$ 0	135,000	0	0	135,000
Common stock issued for severance, Value	$ 48	$ 0	$ 0	$ 0	$ 0	0	149,952	0	150,000
Common stock issued for severance, Shares	477,025	0	0	0	0
Series B preferred stock retirement, Value		$ 0	$ 0	$ (50)	$ 0	0	0	0	(50)
Series B preferred stock retirement, Shares	0	0	0	(500,000)	0
Retired common stock, Value	$ (1,857)	$ 0	$ 0	$ 0	$ 0	0	0	0	(1,857)
Retired common stock, Shares	(18,570,356)	0	0	0	0
Subscription price adjustment, Value	$ 0	$ 0	$ 0	$ 0	$ 0	0	(90,887)	0	(90,887)
Net Income (Loss)	$ 0	$ 0	$ 0	$ 0	$ 0	0	0	(79,389)	(79,389)
Shares Outstanding, Ending at Jun. 30, 2020	113,144,222	0	0	0	500,000
Equity Balance, Ending at Jun. 30, 2020	$ 11,314	$ 0	$ 0	$ 0	$ 50	$ 135,000	$ 38,400,539	$ (37,547,798)	$ 999,105

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (2,107,756)	$ (4,147,827)
Income(loss) from discontinued operations	(357,430)	(2,093,303)
Loss from continuing operations	(1,750,326)	(2,054,524)
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Depreciation	5,124	1,678
Stock based compensation	287,500	1,380,000
Amortization of prepaid expenses	68,079	51,740
Amortization of note discount	41,432	37,325
Amortization and impairment of intangible assets	6,763	3,158
Marketable Securities, Unrealized Gain (Loss)	104,705	(138,400)
Marketable Securities, Realized Gain (Loss)	109,040	0
Changes in operating assets & liabilities:
Increase (decrease) in prepaid expenses	0	(104,973)
Increase in prepaid insurance	(94,779)	(106,359)
Increase in due to First Insurance Funding	35,933	62,229
Increase (decrease) in accounts payable and accrued expenses	209,784	284,460
Investment in Joint Venture	0	(27,490)
Decrease in security deposits	0	5,837
Net cash provided by (used in) operating activities from continuing operations	(976,745)	(605,319)
Net cash provided by (used in) operating activities from discontinued operations	(797,939)	(1,273,168)
Net cash provided by (used in) operating activities	(1,774,684)	(1,878,487)
CASH FLOW FROM INVESTING ACTIVITIES:
Cash acquired in acquisition	79,814	0
Increase in property and equipment	(70,828)	0
Net cash provided by (used in) investing activities from continuing operations	8,986	0
Net cash provided by (used in) investing activities from discontinued operations	0	0
Net cash provided by (used in) investing activities	8,986	0
CASH FLOW FROM FINANCING ACTIVITIES:
Repayment of related party loans	0	(7,500)
Common stock issued under registration statement on Form S-3	1,510,500	2,288,813
Common stock issued under SPA	700,000	0
Net cash provided by (used in) continuing financing activities	2,210,500	2,281,313
Net cash provided by (used in) discontinued financing activities	(65,000)	0
Net cash provided by (used in) financing activities	2,145,500	2,281,313
Net increase (decrease) in cash and cash equivalents	379,802	402,826
Comprehensive income (loss)	0	0
Cash and cash equivalents at beginning of period	511,630	1,805,627
Cash and cash equivalents at end of period	891,432	2,208,453
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest	0	60,278
Income taxes - net of tax refund	0	0
NON-CASH INVESTING AND FINANCING ACTIVITIES
Common stock issued against common stock to be issued	50,000	48,500
Account receivable against conversion of debt and interest	75,074	0
Common stock issued against CS subscription	0	400,000
Shares issued for acquisition of Sapphire Biotechnology	7,506,000	0
Deferred tax liability accounted for as a result of Sapphire Biotech Acquisition	1,845,000	0
Assets acquired and liability assumed as a result of Sapphire Biotech Acquisition	525,365	0
BCF related to discount on conversion	190,000	0
Other	71,782	0
Subscription price adjustment	609,835	0
Common stock issued for note receivable	135,000	0
Adoption of lease obligation and ROU asset	164,910	0
Shares issued for severance payments	150,000	0
Common stock retired	$ 1,857	$ 0

NOTE 1_ ORGANIZATION

NOTE 1: ORGANIZATION	6 Months Ended
	Jun. 30, 2020
Notes
NOTE 1: ORGANIZATION	NOTE 1: ORGANIZATION Axim Biotechnologies, Ind., (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. On March 17, 2020, the Company acquired Sapphire Biotech, Inc., (“Sapphire’) which is r esearch and development company that has a mission to improve global cancer care through the development of proprietary therapeutics for inhibiting cancer growth and metastasis. Sapphire is also developing a line of novel diagnostics for early cancer detection, response to treatment, and recurrence monitoring. Sapphire’s operations are located in the Greater San Diego Area. Company Developments – Divesture of Cannabis Related Assets On May 6, 2020 (the “Effective Date”), AXIM Biotechnologies, Inc., a Nevada corporation (the “Company”), entered into an Agreement (the “Separation Agreement”) by and among the Company, CanChew License Company (“CanCo”), CanChew Biotechnologies, LLC (“CanChew”), Medical Marijuana, Inc., Dr. George A. Anastassov (“Dr. Anastassov”), Dr. Philip A. Van Damme (“Dr. Van Damme”), Lekhram Changoer (“Mr. Changoer”), Sanammad Foundation, Netherlands and Sanammad Foundation, US (collectively, the “Sanammad Parties”), pursuant to which, among other matters as described herein, Drs. Anastassov and Van Damme and Mr. Changoer resigned as members of the Company’s Board of Directors. Pursuant to the Separation Agreement, the Company transferred and assigned to an entity designated by Dr. Anastassov all of the Company’s cannabis-related intellectual property other than the inventions and discoveries described in that certain cannabis-related patent application filed by the Company’s wholly-owned subsidiary, Sapphire Biotech, Inc. (water-soluble cannabinoid molecules). The Company also transferred 100% of its interest in CanCo and CanChew to an entity designated by Dr. Anastassov. In consideration for the transfers set forth above, any and all indebtedness owed by the Company to CanChew, totaling approximately $2.61 million, was satisfied and paid in its entirety. In addition, in consideration for the payment by the Company of $65,000, the Company purchased 100% of the issued and outstanding shares of Series B Preferred Stock held by the Sanammad Parties. Such shares shall be retired to treasury of the Company. The Sanammad Parties also agreed to forfeit and assign back to treasury, for no consideration, a total of 18,570,356 shares of the Company’s common stock.

NOTE 2_ ACQUISITION OF SAPPHIRE

NOTE 2: ACQUISITION OF SAPPHIRE BIOTECH, INC.	6 Months Ended
	Jun. 30, 2020
Notes
NOTE 2: ACQUISITION OF SAPPHIRE BIOTECH, INC.	NOTE 2: ACQUISITION OF SAPPHIRE BIOTECH, INC. On March 17, 2020, the Company entered into a Share Exchange Agreement (“Agreement”) with Sapphire Biotech, Inc., a Delaware corporation (“Sapphire”) and all of the Sapphire stockholders (collectively, the “Sapphire Stockholders”). Following the closing of the transaction, Sapphire will become a wholly owned subsidiary of AXIM. Under the terms of the Agreement, the Company intends to: (i) acquire 100% of Sapphire’s outstanding capital (consisting of 100,000,000 shares of common stock and zero (0) shares of Preferred Stock); and (ii) assume all of the outstanding debt of Sapphire. The outstanding debt includes two (2) convertible notes in the principal amounts of $310,000 and $190,000. Pursuant to the terms of the Share Exchange Agreement, the Company acquired 100% of the issued and outstanding shares of Sapphire by means of a share exchange with the Sapphire Stockholders in exchange for 54,000,000newly issued shares of the common stock of AXIM (the “Share Exchange”). As a result of the Share Exchange, Sapphire became a 100% owned subsidiary of AXIM, which on a going forward basis will result in consolidated financial reporting by AXIM to include the results of Sapphire. The closing of the Share Exchange occurred concurrently with entry into the Share Exchange Agreement (the “Closing”). In March 2020, the Company acquired SAPPHIRE BIOTECH, Inc., a biotechnology company focusing on improving cancer care through the development of proprietary therapeutics for inhibiting cancer growth and metastasis. The Company issued 54,000,000 shares of common stock with a total fair value of $7,506,000, in exchange for all outstanding shares of SAPPHIRE BIOTECH, Inc. The Company accounted for the acquisition using the purchase method of accounting for business combinations. The purchase price and costs associated with the acquisition exceeded the preliminary estimated fair value of net assets acquired by $9,573,233, which was preliminarily assigned to intangible asset and goodwill. The Company incurred $6,000 of acquisition-related costs, which will be recorded as expense after the evaluation work been completed. The Company expects to complete the valuation of the intangible assets acquired in the SAPPHIRE BIOTECH, Inc. transaction by September 2020. Pursuant to the valuation, the Company may assign a portion of the purchase price to in-process technology that previously had been initially assigned to goodwill. In management’s judgment, the amount assigned to in process research and development would reflect the amount the Company would reasonably expect to pay an unrelated party for each project included in the technology. Based on the final valuation, the remaining excess purchase price will be allocated existing patents and goodwill. The aggregate purchase price of $7,506,000 consisted of common stock valued at $7,506,000. The value of the $7,506,000 common shares issued was determined based on the closing price of the Company’s common shares at the acquisition date. The following table summarizes the consideration paid for SAPPHIRE BIOTECH and the estimated amounts of the assets acquired and liabilities assumed recognized at the acquisition date. Consideration: Cash and cash equivalents $ 79,814 Property and equipment, net 20,533 Intangible assets including goodwill 9,763,233 Security deposit 12,785 Total asset acquired $ 9,876,365 Accrued expenses and other current liabilities $ 5,767 Deferred taxes liability 1,845,000 Notes Payable including convertible and discount on conversion 519,598 Total liabilities assumed 2,370,365 Net assets acquired $ 7,506,000 Of the $9,763,233 of acquired intangible assets, $5,900,000 was assigned to in-process research and development and $3,613,233 to goodwill that are not subject to amortization, and $1,845,000 was assigned to deferred tax liability which was included in goodwill at the date of acquisition. The remaining $250,000 of patent have a weighted-average useful life of approximately 20 years. The $3,613,233 of goodwill is not expected to be deductible for tax purposes. The allocation of the purchase price is based on preliminary data and could change when final valuation of certain intangible assets is obtained. The effective settlement of receivable/payable between the Company and Sapphire deemed to be not material. Disclosure of Pro Forma Information The following (unaudited) pro forma consolidated results of operations have been prepared as if the acquisition of SAPPHIRE BIOTECH, Inc. had occurred at January 1, 2019: For six months ended June 30, 2020 June 30, 2019 Net loss from continuing operations $ (2,176,677) $ (2,167,394) Net loss from discontinued operations $ (357,430) $ (2,093,303) Net loss per share—Basic $ (0.02) $ (0.04) Net loss per share—Diluted $ (0.02) $ (0.04) For three months ended June 30, 2020 June 30, 2019 Net loss from continuing operations $ (849,804) $ (591,215) Net loss from discontinued operations $ 770,383 $ (1,267,055) Net loss per share—Basic $ 0.00 $ (0.02) Net loss per share—Diluted $ 0.00 $ (0.02) The pro forma information is presented for informational purposes only and is not necessarily indicative of the results of operations that actually would have been achieved had the acquisition been consummated as of that time, nor is it intended to be a projection of future results. During the three and six months ended June 30, 2020 Sapphire had no revenue transactions.

NOTE 3_ BASIS OF PRESENTATION

NOTE 3: BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2020
Notes
NOTE 3: BASIS OF PRESENTATION:	NOTE 3: BASIS OF PRESENTATION: The unaudited condensed consolidated financial statements of AXIM Biotechnologies, Inc. (formerly Axim International, Inc.) The following (a) balance sheets as of June 30, 2020 (unaudited) and December 31, 2019, 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 six months ended June 30, 2020 are not necessarily indicative of results that may be expected for the year ending December 31, 2020. These unaudited financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2019 included in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on May 14, 2020. Principles of Consolidation The consolidated financial statements include the accounts of Axim Biotechnologies, Inc. and its wholly owned subsidiaries Axim Holdings, Inc., Marina Street LLC, Axim Biotechnologies (the Netherland Company) and Sapphire Biotech, Inc. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company balances and transactions have been eliminated upon consolidation.

NOTE 4_ GOING CONCERN

NOTE 4: GOING CONCERN	6 Months Ended
	Jun. 30, 2020
Notes
NOTE 4: GOING CONCERN	NOTE 4: GOING CONCERN The Company’s condensed consolidated financial statements have been presented assuming that the Company will continue as a going concern. The Company has incurred significant losses and negative cash flows from operations in all periods since inception and had an accumulated deficit as of June 30, 2020. The Company has historically financed its operations primarily through the sale of common stock, promissory notes and convertible notes. To date, none of the Company’s products related to continuing operations are still in the product development phase, and the Company has not generated any product revenue since inception. Management expects operating losses to continue and increase for the foreseeable future, as the Company progresses into clinical development activities for its lead product candidates. The Company’s prospects are subject to risks, expenses and uncertainties frequently encountered by companies in the biotechnology industry. As shown in the condensed consolidated financial statements, the Company has negative working capital of $1,821,609 and has an accumulated deficit of $37,547,798 has cash used in operating activities of continuing operations $976,745 and discontinued operations of $797,939. The Company intends to raise substantial 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. That will raise a doubt about the ability of the Company to continue as a going concern. The consolidated

NOTE 5_ SIGNIFICANT ACCOUNTING

NOTE 5: SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2020
Notes
NOTE 5: SIGNIFICANT ACCOUNTING POLICIES	NOTE 5: SIGNIFICANT ACCOUNTING POLICIES Use of estimates The preparation of the unaudited condensed consolidated 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. Significant estimates are assumptions about collection of accounts receivable, intangible assets, useful life of intangible assets, determination of the discount rate for operating leases and assumptions used in Black-Scholes-Merton, or BSM, valuation methods, such as expected volatility, risk-free interest rate and expected dividend rate. Risks and uncertainties The Company operates in a dynamic and highly competitive industry and is subject to risks and uncertainties common to early-stage companies in the biotechnology industry, including, but not limited to, development by competitors of new technological innovations, protection of proprietary technology, dependence on key personnel, contract manufacturer and contract research organizations, compliance with government regulations and the need to obtain additional financing to fund operations. Product candidates currently under development will require significant additional research and development efforts, including extensive preclinical studies and clinical trials and regulatory approval, prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel infrastructure and extensive compliance and reporting. The Company believes that changes in any of the following areas could have a material adverse effect on the Company’s future financial position, results of operations, or cash flows; ability to obtain future financing; advances and trends in new technologies and industry standards; results of clinical trials; regulatory approval and market acceptance of the Company’s products; development of sales channels; certain strategic relationships; litigation or claims against the Company based on intellectual property, patent, product, regulatory, or other factors; and the Company’s ability to attract and retain employees necessary to support its growth. Products developed by the Company require approvals from the U.S. Food and Drug Administration (“FDA”) or other international regulatory agencies prior to commercial sales. There can be no assurance that the Company’s research and development will be successfully completed, that adequate protection for the Company’s intellectual property will be obtained or maintained, that the products will receive the necessary approvals, or that any approved products will be commercially viable. If the Company was denied approval, approval was delayed or the Company was unable to maintain approval, it could have a materially adverse impact on the Company. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will generate revenue from product sales. The Company operates in an environment of rapid change in technology and substantial competition from other pharmaceutical and biotechnology companies. In addition, the Company is dependent upon the services of its employees, consultants and other third parties. Beginning in late 2019, the outbreak of a novel strain of virus named SARS-CoV-2 (severe acute respiratory syndrome coronavirus 2), or coronavirus, which causes coronavirus disease 2019, or COVID-19, has evolved into a global pandemic. The extent of the impact of the coronavirus outbreak on the Company’s business will depend on certain developments, including the duration and spread of the outbreak and the extent and severity of the impact on the Company’s clinical trial activities, research activities and suppliers, all of which are uncertain and cannot be predicted. At this point, the extent to which the coronavirus outbreak may materially impact the Company’s financial condition, liquidity or results of operations is uncertain. The Company has expended and will continue to expend substantial funds to complete the research, development and clinical testing of product candidates. The Company also will be required to expend additional funds to establish commercial-scale manufacturing arrangements and to provide for the marketing and distribution of products that receive regulatory approval. The Company may require additional funds to commercialize its products. The Company is unable to entirely fund these efforts with its current financial resources. If adequate funds are unavailable on a timely basis from operations or additional sources of financing, the Company may have to delay, reduce the scope of or eliminate one or more of its research or development programs which would materially and adversely affect its business, financial condition and operations. There have been no material changes in the accounting policies from those disclosed in the financial statements and the related notes included in the Form 10-K. Cash equivalents The Company considers all highly liquid investments with original maturities of six months or less at the time of purchase to be cash equivalents. As of June 30, 2020 and December 31, 2019, the Company had no cash equivalents. Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company had no uninsured balances at June 30, 2020 and December 31, 2019. The Company has never experienced any losses related to these balances. Accounts Receivable It is the Company’s policy to review accounts receivable at least on a monthly basis for conductibility and follow up with customers accordingly. Covid19 has slowed collection as our customers are in a mandated pause. The Company does not have geographic concentration of customers. Accounts receivable were all generated from discontinued operations for the three and six-months ending June 30, 2020 and 2019. Concentrations At June 30, 2020 and December 31, 2019, one customer and two customers accounted for 100% and 100% of accounts receivable, respectively. For the six months period ended June 30, 2020, one customer accounted for 21% of total revenue. For the six months period ended June 30, 2019, two customers accounted for 88% of total revenue. Accounts receivable and revenue were all generated from discontinued operations for the three and six-months ending June 30, 2020 and 2019. 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. As of June 30, 2020 and December 31, 2019, the Company had $-0- and $175,304 of finished goods and $-0- and $312,511 of raw materials; respectively. All inventory was related to discontinued operations for the three and six-months ending June 30, 2020 and 2019. 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. The Company’s property and equipment relating to continuing operations consisted of the following at June 30, 2020 and December 31, 2019, respectively and none related to discontinued operations. June 30, 2020 December 31, 2019 Equipment of continuing operations $ 108,292 $ 16,780 Less: accumulated depreciation $ 19,817 $ 14,543 $ 88,475 $ 2,237 Intangible Assets As required by generally accepted accounting principles, trademarks and patents are amortized if they have a definite life, and not amortized if they have an indefinite life and then they are tested annually for impairment. The Company’s intangible assets relating to continuing operations and discontinued operations consisted of the following at June 30, 2020 and December 31, 2019, respectively. June 30, 2020 December 31, 2019 Patent – Sapphire $ 250,000 $ - Goodwill $ 3,541,451 Research in progress $ 5,900,000 Less: accumulated amortization and impairment $ 3,604 $ - $ 9,687,847 $ - Intangible assets of discontinued operations $ - $ 715,432 Less: accumulated amortization and impairment $ - $ 664,898 Revenue Recognition The Company follows the guidance contained in Topic 606 (FASB ASC 606). The core principle of Topic 606 (FASB ASC 606) is that an entity should recognize revenue to depict the transfer of goods of services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revenue recognition guidance contained in Topic 606, to follow the five-step revenue recognition model along with other guidance impacted by this standard: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transportation price; (4) allocate the transportation price; (5) recognize revenue when or as the entity satisfies a performance obligation. All revenue was from operations that were divested. Revenues are recognized when title for goods is transferred; non-refundable fees and proceeds from irrevocable agreements recognized when inflows or other enhancements of assets of the Company are received. Revenues from continuing operations recognized for three and six months ended June 30, 2020 and 2019 amounted to $-0-, $-0-, $-0- and $-0-, respectively. Revenues from discontinued operations recognized for three and six months ended June 30, 2020 and 2019 amounted to $849, $93,088, $7,990 and $110,149, respectively. 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. Cost of sales all related to discontinued operations. 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. Shipping costs all related to discontinued operations. Fair Value Measurements The Company applies the guidance that is codified under ASC 820-10 related to assets and liabilities recognized or disclosed in the financial statements at fair value on a recurring basis. ASC 820-10 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The provisions of ASC 820-10 only apply to the Company’s investment securities, which are carried at fair value. ASC 820-10 clarifies that fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based on the highest and best use of the asset or liability. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. ASC 820-10 requires valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized as follows: Fair Value Hierarchy Inputs to Fair Value Methodology Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 Quoted prices for similar assets or liabilities; quoted markets that are not active;or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the financial instrument; inputs other than quoted prices that are observable for the asset or liability; or inputs that are derived principally from, or corroborated by, observable market information Level 3 Pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption is unobservable or when the estimation of fair value requires significant management judgment The Company categorizes a financial instrument in the fair value hierarchy based on the lowest level of input that is significant to its fair value measurement. As of June 30, 2020 Quoted Market Prices in Active Markets (Level 1) Internal Models with Significant Observable Market Parameters (Level 2) Internal Models with Significant Unobservable Market Parameters (Level 3) Total Fair Value Reported in Financial Statements Marketable Securities $ - $ - $ - $ - As of December 31, 2019 Quoted Market Prices in Active Markets (Level 1) Internal Models with Significant Observable Market Parameters (Level 2) Internal Models with Significant Unobservable Market Parameters (Level 3) Total Fair Value Reported in Financial Statements Marketable Securities $ 213,745 $ - $ - $ 213,745 The Company recorded a change in FMV of trading securities as unrealized gain (loss) and realized gain (loss) of $-0-, $(109,040), $113,400 and $-0- for the three months ended June 30, 2020 and 2019, respectively. The Company recorded a change in FMV of trading securities as unrealized gain (loss) and realized gain (loss) of $(104,705), $(109,040), $138,400 and $-0- for the six months ended June 30, 2020 and 2019, respectively. These securities are classified as trading. The Company did not have any Level 2 or Level 3 assets or liabilities as of June 30, 2020 and December 31, 2019, There were no financial liabilities measured and recognized at fair value as of June 30, 2020 and December 31, 2019. Cash is as of June 30, 2020 and December 31, 2019 is classified as Level 1 within our fair value hierarchy. Income Taxes The Company did not record a federal or state income tax provision or benefit for the three and six months ended June 30, 2020 and 2019 as it has incurred net losses since inception. In addition, the net deferred tax assets generated from net operating losses are fully offset by a valuation allowance as the Company believes it is not more likely than not that the benefit will be realized. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was enacted and signed into law and GAAP requires recognition of the tax effects of new legislation during the reporting period that includes the enactment date. The CARES Act includes changes to the tax provisions that benefits business entities, and makes certain technical corrections to the 2017 Tax Cuts and Jobs Act. The tax relief measures for businesses in the CARES Act include a five-year net operating loss carryback for certain net operating losses, suspension of the annual deduction limitation of 80% of taxable income for certain net operating losses, changes in the deductibility of interest, acceleration of alternative minimum tax credit refunds, payroll tax relief, and a technical correction to allow accelerated deductions for qualified improvement property. The CARES Act also provides other non-tax benefits to assist those impacted by the pandemic. The Company evaluated the impact of the CARES Act and determined that there is no material impact to the income tax provision for the quarter. 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 had $240,769 and 0 allowance for doubtful accounts at June 30, 2020 and December 31, 2019, respectively and had $240,769 accounts receivable at June 30, 2020 and $315,843 at December 31, 2019, all was related to discontinued operations for the three and six-months ending June 30, 2020 and 2019. 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 35,619,074 common share equivalents at June 30, 2020 and 16,295,498 common shares at December 31, 2019. For the three and six months ended June 30, 2020 and 2019 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. The Company accounts for stock options issued to non-employees based on the estimated fair value of the awards using the Black-Scholes option pricing model in accordance with ASC 505-50, Equity-Based Payment to Non-employees 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. For the three and six months ended June 30, 2020 and 2019 The Company incurred research and development expenses of $121,437, $-0-, $126,292 and $-0- from continuing operations, respectively. For the three and six months ended June 30, 2020 and 2019 The Company incurred research and development expenses of $200,669, $991,637, $816,324 and $1,524,316 from discontinued operations, respectively. The Company has entered into various agreements with CROs. The Company’s research and development accruals are estimated based on the level of services performed, progress of the studies, including the phase or completion of events, and contracted costs. The estimated costs of research and development provided, but not yet invoiced, are included in accrued liabilities on the balance sheet. If the actual timing of the performance of services or the level of effort varies from the original estimates, the Company will adjust the accrual accordingly. Payments made to CROs under these arrangements in advance of the performance of the related services are recorded as prepaid expenses and other current assets until the services are rendered. Recently Issued Accounting Standards In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842) Codification Improvements The Company has a long-term operating lease, and the long-term operating lease took effect in April 2020. (see Note 18) In November 2018, the FASB issued ASU 2018-18 , Collaborative Arrangements (Topic 818): Clarifying the Interaction Between Topic 808 and Topic 606 See Note X for more information related to the Company’s lease obligations. In October 2018, the FASB issued ASU 2018-17, Targeted Improvements to Related Party Guidance for Variable Interest Entities In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. 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 6_ PREPAID EXPENSES

NOTE 6: PREPAID EXPENSES	6 Months Ended
	Jun. 30, 2020
Notes
NOTE 6: PREPAID EXPENSES	NOTE 6: PREPAID EXPENSES Prepaid expenses consist of the following as of June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 Prepaid insurance $ 99,819 $ 67,734 Prepaid software/license 4,487 9,872 $ 104,306 $ 77,606 For the three and six months ended June 30, 2020 and 2019, the Company recognized amortization of prepaid expense of $34,108, $25,972, $68,079 and $51,740, respectively.

NOTE 7_ MARKETABLE SECURITIES

NOTE 7: MARKETABLE SECURITIES	6 Months Ended
	Jun. 30, 2020
Notes
NOTE 7: MARKETABLE SECURITIES	NOTE 7: MARKETABLE SECURITIES As of December 31, 2019 the Company had marketable securities, 4,925,000 fully paid ordinary unrestricted shares in Impression Healthcare Limited (Australian Company), traded on Australian Security Exchange by the code IHL. The Company categorize these securities as trading securities and report them at fair value, with unrealized gains and losses included in earnings. On December 31, 2019 the stock price was A$ 0.062 per share as quoted on asx.com.au and exchange rate of $0.7 AUD/USD as quoted on oanda.com and had FMV $213,745. On April 14, 2020 the Company entered into deed of settlement and release with Impression Healthcare Limited and transferred 4,925,000 held shares back to Impression Healthcare Limited by way of sale and purchase, with the total amount payable by Impression Healthcare Limited to Axim for completion of the sale and purchase and transfer being the aggregate amount of $1. During the three months ended June 30, 2020 and 2019, the Company recorded a change in FMV of trading securities as unrealized gain (loss) and realized gain (loss) of $-0-, $(109,040), $113,400 and $-0-, respectively.. During the six months ended June 30, 2020 and 2019, the Company recorded a change in FMV of trading securities as unrealized gain (loss) and realized gain (loss) of $(104,705), $(109,040), $138,400 and $-0-, respectively.

NOTE 8_ INVESTMENT IN THIRD PAR

NOTE 8: INVESTMENT IN THIRD PARTY	6 Months Ended
	Jun. 30, 2020
Notes
NOTE 8: INVESTMENT IN THIRD PARTY	NOTE 8: INVESTMENT IN THIRD PARTY On June 11, 2019 the Company entered into an operating agreement as 1/3 member of KAM Industries, LLC, a Wyoming Limited Company. On June 18, 2019 KAM Industries LLC, entered into Joint Venture Agreement to receive a percentage of the industrial hemp harvest yield on a parcel of land in Wayne County, North Carolina owned by Farm Share, LLC with whom KAM contracted to purchase a percentage of the hemp harvest for the 2019 growing season. Once the hemp is harvested from the 2019 growing season the Company will get its 1/3 share at no additional cost. The agreement then expires unless renewed for 2020 with an additional payment. The Company paid $27,490 for 33.3% of KAM Industries, LLC and recorded $27,490 as current asset as of December 31, 2019. This investment is counted by using cost method of accounting. An officer in KAM Industries, LLC is the Company’s CEO. As of June 30, 2020, Farm Share, LLC is in the middle of the processing of the entire 2019 crop. During the virus shut down the extraction laboratories were not considered essential, but they were back in business as of June 11, 2020.

NOTE 9_ PROMISSORY NOTE

NOTE 9: PROMISSORY NOTE	6 Months Ended
	Jun. 30, 2020
Notes
NOTE 9: PROMISSORY NOTE	NOTE 9: PROMISSORY NOTE Related Party On August 8, 2014 the Company entered into a Promissory Note Agreement with CanChew 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. On May 6, 2020 (the “Effective Date”), AXIM Biotechnologies, Inc., a Nevada corporation (the “Company”), entered into an Agreement (the “Separation Agreement”). Pursuant to the Separation Agreement, the Company transferred 100% of its interest in CanCo and CanChew to an entity designated by Dr. Anastassov. In consideration for the transfers set forth above, any and all indebtedness owed by the Company to CanChew, totaling approximately $2.61 million, was satisfied and paid in its entirety. For the three and six months ended June 30, 2020 and 2019 the Company recognized interest expense of $2,567, $6,582, $9,076 and $13,092, respectively on this note all was related to discontinued operations. Non-Related Party On December 31, 2019, Sapphire Biotech, Inc. had entered into a Debt Exchange Agreement whereas the Company assumed three (3) loans totaling $128,375 of Debt owned by Sapphire Diagnostics, LLC which had an interest rate of 6% per annum. In the same Debt Exchange Agreement, the Company assumed four (4) additional loans made to the Company in 2019, which had an interest rate of 6% per annum. All seven (7) loans totaling $310,000, plus the aggregate interest accrued thereon of $14,218 making the face value of the new note $324,218. As of June 30, 2020, the principal and accrued interest balances were $324,218 and $9,780, respectively.

NOTE 10_ RELATED PARTY TRANSACT

NOTE 10: RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2020
Notes
NOTE 10: RELATED PARTY TRANSACTIONS	NOTE 10: RELATED PARTY TRANSACTIONS The Company has received working capital advances from CanChew totaling $1,526,603 and $1,526,603 as of June 30, 2020 and December 31, 2019 respectively. The advances are payable on demand. The Company is in discussions to have the advances reduced to a longer term, fixed maturity note, all was related to discontinued operations. The Company owes $5,000 to the chairman of the board of the Company for a working capital advance of $5,000 made in May of 2014, all was related to discontinued operations. Under an agreement Mr. Changoer received on March 20, 2018 the Company issued 50,000 restrictive shares of its common stock and recorded $235,000 of compensation expenses in the accompanying consolidated financial statements to account for the issuance of the incentive shares. As of June 30, 2020 and December 31, 2019, the total outstanding balance was $20,000 and $23,696 respectively for consulting fees to Mr. Changoer, all was related to discontinued operations. On September 25, 2018, the Company amended Independent Director Compensation agreement. Under the agreement in lieu of the share compensation due to independent director of the Company for his annual service ending May 23, Dr. Philip A. Van Damme shall receive cash compensation of $20,000. Started from August 1, 2019 the company has been paying monthly clinical trial fee of $5,000. As of June 30, 2020 and December 31, 2019, the total outstanding balance was $21,877 and $9,377 respectively, all was related to discontinued operations. Effective January 1, 2019 the company entered into a thirty-months consulting agreement with the chairman of the board which pays a monthly consulting fee of $20,000. The company has also been paying a monthly bonus fee of 15,000; this additional fee is on a month to month basis at the discretion of management. As of June 30, 2020 and December 31, 2019, the total outstanding balance was $35,000 and $35,000 respectively for consulting fees, all was related to discontinued operations. On May 6, 2020 (the “Effective Date”), AXIM Biotechnologies, Inc., a Nevada corporation (the “Company”), entered into an Agreement (the “Separation Agreement”) by and among the Company, CanChew License Company (“CanCo”), CanChew Biotechnologies, LLC (“CanChew”), Medical Marijuana, Inc., Dr. George A. Anastassov (“Dr. Anastassov”), Dr. Philip A. Van Damme (“Dr. Van Damme”), Lekhram Changoer (“Mr. Changoer”), Sanammad Foundation, Netherlands and Sanammad Foundation, US (collectively, the “Sanammad Parties”), pursuant to which, among other matters as described herein, Drs. Anastassov and Van Damme and Mr. Changoer resigned as members of the Company’s Board of Directors. Pursuant to the Separation Agreement, the Company transferred and assigned to an entity designated by Dr. Anastassov all of the Company’s cannabis-related intellectual property other than the inventions and discoveries described in that certain cannabis-related patent application filed by the Company’s wholly-owned subsidiary, Sapphire Biotech, Inc. (water-soluble cannabinoid molecules). The Company also transferred 100% of its interest in CanCo and CanChew to an entity designated by Dr. Anastassov. In consideration for the transfers set forth above, any and all indebtedness owed by the Company to CanChew, totaling approximately $2.61 million, was satisfied and paid in its entirety. In addition, in consideration for the payment by the Company of $65,000, the Company purchased 100% of the issued and outstanding shares of Series B Preferred Stock held by the Sanammad Parties. Such shares shall be retired to treasury of the Company. The Sanammad Parties also agreed to forfeit and assign back to treasury, for no consideration, a total of 18,570,356 shares of the Company’s common stock. In addition, each of Drs. Anastassov and Van Damme and Mr. Changoer have agreed to subject the shares of the Company’s common stock held by each of them to lock-up and leak-out restrictions, as follows: they shall not sell shares for a period of 12 months following the Effective Date and, thereafter, subject to a daily volume limitation of 5%, on an aggregate basis among them. Further, the Company terminated the Consulting Agreement of Dr. Anastassov and the Employment Agreements for each of Dr. Van Damme and Mr. Changoer. In connection with the termination of Dr. Anastassov’s Consulting Agreement, the Company agreed to pay severance in the amount of $35,000 for March 2020 and $20,000 per month thereafter through July 2021 (the termination date contemplated by the Consulting Agreement). Commencing for the April 2020, the Company may, in its sole discretion, pay the $20,000 severance obligation by the issuance of shares of the Company’s common stock registered pursuant to the Registration Statement on Form S-8 filed with the Commission on May 29, 2015 (“S-8 Shares”). If the gross cash proceeds from the sale of any S-8 Shares issued in lieu of cash severance is less than $20,000, as determined 20 days after issuance of such S-8 Shares, then the Company has agreed to issue additional shares that would serve to “true-up” the value of the shares to the $20,000 monthly severance obligation; provided, however, that if 30 days after the date the severance payment is due the gross proceeds from the sale of S-8 Shares is less than $20,000, the Company must pay the shortfall in cash. In addition, for each month that Dr. Anastassov is entitled to receive severance, he shall receive S-8 Shares in an amount equal to the lesser of (a) 150,000 S-8 Shares, or (b) S-8 Shares valued at $15,000 based upon the closing price of the Company’s common stock as of the due date of the severance payment obligation. In connection with the termination of the Employment Agreements of Dr. Van Damme and Mr. Changoer, Mr. Changoer’s severance payments shall be $20,000 per month for 12 months, commencing April 2020 (paid in arrears) and Dr. Van Damme’s severance payments shall be $5,000 per month for 12 months, similarly commencing April 2020 and paid in arrears. The Company has the right to pay each of Dr. Van Damme’s and Mr. Changoer’s monthly severance payments in S-8 shares in lieu of cash subject to the same terms and restrictions (including true-up terms) as set forth above for Dr. Anastassov. As of June 30, 2020, the accrued severance pyament was $435,000 to Dr. Anastassov, $180,000 to Mr. Changoer and $55,000 to Dr. Van Damme, all was related to discontinued operations. The Company retains the right to prepay the severance obligations to Drs. Anastassov and Van Damme and Mr. Changoer, without penalty. No claims were alleged by the Company against any party, and no claims were alleged against the Company. However, in connection with the transactions described above, the parties entered into a general mutual release of all claims. Purchase of Promissory Note and Forbearance Agreement Effective May 4, 2020, the Company acquired from TL-66, a California limited liability company (“Seller”), a promissory note issued to Seller by Dr. Anastassov (“Maker”) dated December 1, 2017, with a face value of $350,000 and a remaining balance due of approximately $100,000 (the “Note”). The purchase price for the Note was $100,000 payable by the Company issuing Seller One Million (1,000,000) restricted shares of the Company’s Common Stock. Effective May 6, 2020, the Company and Maker entered into a Forbearance Agreement whereby the Company agreed to forbear from making any collection efforts on the Note for a period of 24 months so long as Maker has not breached the Separation Agreement. Following 24 months, if there has been no breach of the Separation Agreement by Maker, repayment of the Note, including all principal and unpaid interest, will be waived in full. As of May, 4, 2020 the carrying value of the note was $102,567, the value of the common stock to be issued was $135,000, resulting in a loss of $32,433 accounted as loss on debt extinguishment related to discontinued operations.

NOTE 11_ DUE TO FIRST INSURANCE

NOTE 11: DUE TO FIRST INSURANCE FUNDING	6 Months Ended
	Jun. 30, 2020
Notes
NOTE 11: DUE TO FIRST INSURANCE FUNDING	NOTE 11: DUE TO FIRST INSURANCE FUNDING On June 25, 2019, the Company renewed its D&O and EPLI insurance policy with total premiums, taxes and fees for $97,000 and $6,849 respectively. A cash down payment of $20,850 was paid on July 16, 2019. Under the terms of the insurance financing, payments of $9,501, which include interest at the rate of 7.2% per annum, are due each month for nine months commencing on July 25, 2019. On October 22, 2019, the Company renewed its CL Products Liability insurance policy with total premiums, taxes and fees for $18,864. A cash down payment of $1,886 was paid on October 24, 2019. Under the terms of the insurance financing, payment of $1,945, which include interest at the rate of 7.451% per annum, are due each month for nine months commencing on November 22, 2019. On June 25, 2020, the Company renewed its D&O insurance policy with total premiums, taxes and fees for $93,357. A cash down payment of $18,671 was paid on July 6, 2020. Under the terms of the insurance financing, payments of $8,456, which include interest at the rate of 4.6% per annum, are due each month for nine months commencing on July 25, 2020. The total outstanding due to First Insurance Funding as of June 30, 2020 and December 31, 2019 is $78,054 and $42,121; respectively.

NOTE 12_ CONVERTIBLE NOTES PAYA

NOTE 12: CONVERTIBLE NOTES PAYABLE	6 Months Ended
	Jun. 30, 2020
Notes
NOTE 12: CONVERTIBLE NOTES PAYABLE	NOTE 12: CONVERTIBLE NOTES PAYABLE The following table summarizes convertible note payable- shareholder as of June 30, 2020 and December 31, 2019 June 30, 2020 December 31, 2019 Convertible note payable, due on July 1, 2028, interest at 3.5% p.a. $ 45,000 $ 45,000 Accrued interest 6,370 5,578 $ 51,370 $ 50,578 The 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 balance on the Note as of June 30, 2020 and December 31, 2019 is $51,370 and $50,578, including interest accrued thereon of $6,370 and $5,578, respectively. The following table summarizes convertible note payable of related party as of June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 Convertible note payable, due on November 1, 2026, interest at 3.5% p.a. $ 4,000,000 $ 4,000,000 Accrued interest (The accrued interest and principal are both includedin the captions titled “convertible note payable” in the balance sheet) 88,648 93,333 Convertible note payable, net $ 4,088,648 $ 4,093,333 The following table summarizes convertible note payable as of June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 Convertible note payable, due on October 1, 2029, interest at 3.5% p.a. $ 484,478 $ 484,478 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 31, 2034, interest at 3% p.a. 190,000 - Accrued interest (The accrued interest and principal are both includedin the captions titled “convertible note payable” in the balance sheet) 197,196 168,208 Total 1,871,674 1,652,686 Less: unamortized debt discount/finance premium costs (888,299) (739,732) Convertible note payable, net $ 983,375 $ 912,954 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 $0.2201 per share. As of June 30, 2020 and December 31, 2019, the balance of secured convertible notes was $547,753 and $539,227, which included $63,275 and $54,749 accrued interest, respectively. 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 of $0.2201 per share.. 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. A debt discount was recorded related to beneficial conversion feature inn connection with this convertible note of $499,318 , 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 June 30, 2020 and December 31, 2019, this note has not been converted and the balance of secured convertible notes was $1,131,055 and $1,113,458, which included $131,055 and $113,458 accrued interest, respectively. In 2018 the Company extinguished debt with Investor. Investor had proposed a financing transaction pursuant to which the Company will satisfy and retire the Original Note and Original Note current balance in simultaneous exchange for and upon delivery by the Company of a (1) new Convertible Promissory Note in the principal amount of $4,000,000 (the “Exchange Note”), and (2) 400,000 shares of the Company’s restricted common stock (the “Origination Shares”). Simultaneously, a third-party Investor and the Company entered in Debt Exchange Agreement with Medical Marijuana Inc. As part of this agreement Investor will exchange and deliver the AXIM note to Medical Marijuana in exchange for a Convertible Promissory note. Axim consented to the transfer and assignment of the Axim Note in exchange for the issuance by the Medical Marijuana of the Exchange Note. The interest on this note is payable bi-annually every May 1 and November 1. On May 1, 2019 the Company paid accrued interest of $60,278. In 2020 the Company was authorized to apply the accounts receivable of $75,074 due from Kannawaytowards its accrued interest. On May 1, 2020, the Company agreed to modify its existing convertible note with a principal balance of $4 million, 3.5% interest rate convertible note with the current holder of that note. There were two changes to the existing agreement – (a) the conversion price was reduced from the $1.50 conversion price in the original Note to $0.25 cents in the modified Note and (b) the term of the note was extended from the original maturity date of November 1, 2021, to November 1, 2026. The Company’s stock closed trading on the day of the modification at $0.13 per share. The amendment of this convertible Note was also evaluated under ASC Topic 470-50-40, “Debt Modifications and Extinguishments.” Based on the guidance, the instruments were determined to be substantially different due to the change in the conversion price being substantial, and debt extinguishment accounting was applied. The fair value of the modified convertible note was not different than the carrying value of the original note as such no extinguishment loss was recorded, The Note prior to the amendment of approximately $4 million, and the fair value of the Note and embedded derivatives after the amendment of approximately $4 million. There were no unamortized debt issuance costs and the debt discount associated with the original 2018 Note. As of June 30, 2020 and December 31, 2019, the balance of secured convertible note was $4,088,648 and $4,093,333 which included $88,648 and $93,333 accrued interest respectively. On December 31, 2019, Sapphire Biotech, Inc. entered into a Convertible Note Purchase Agreement whereas the Company issued a convertible note with a face value of $190,000 with a compounding interest rate of 3% per annum, the interest shall be payable annually beginning on December 31, 2020 until the maturity date of December 31, 2034, at which time all principal and interest accrued thereon shall be due and payable. The Convertible Note is secured by substantially all the Company’s tangible and intangible assets. In addition, the Convertible Note includes various non-financial covenants including the Company may not enter into any agreement, arrangement or understanding of any kind that would result in a transaction, or series of transactions, that would result in the sale of 50% or more of the Company’s capital stock without the prior approval of the holder. Upon issuance, the Convertible Note was convertible into shares of the Company’s common stock at $1.90 per share. At December 31, 2019, the Company determined that the Convertible Note contained a beneficial conversion feature for which a full discount was recorded on the Convertible Note. The fair market value of the Company’s common stock was based upon the estimated per share acquisition price per the pending acquisition of the Company, see Note 8 for additional information. The discount of $190,000 will be amortized using the effective interest method and will be fully amortized by December 31, 2034. On March 17, 2020, Sapphire Biotech, Inc. entered into a Share Exchange Agreement (“Agreement”) with Sapphire Biotech, Inc., a Delaware corporation (“Sapphire”) and all of the Sapphire stockholders (collectively, the “Sapphire Stockholders”). Following the closing of the transaction, Sapphire will become a wholly owned subsidiary of AXIM. Under the terms of the Agreement, the Company intends to assume the convertible notes in the principal amounts of $190,000. After the acquisition, the Convertible Note was able to convert 6,000,000 shares of Axim’s common stock. Upon assumption of the note, the Company recorded a beneficial conversion feature of $190,000. As of June 30, 2020 and December 31, 2019, the balance of secured convertible note was $192,866 and $0 which included $2,866 and $0 accrued interest respectively. During the three and six months ended June 30, 2020 and 2019, the Company amortized the debt discount on all the notes of $22,071, $18,662, $41,432 and $37,325, respectively, to other expenses. As of June 30, 2020 and December 31, 2019, unamortized debt discount was $888,299 and $739,732, respectively.

NOTE 13_ STOCK INCENTIVE PLAN

NOTE 13: STOCK INCENTIVE PLAN	6 Months Ended
	Jun. 30, 2020
Notes
NOTE 13: STOCK INCENTIVE PLAN	NOTE 13: 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 9,806,000 shares available for issuance under the Plan as of December 31, 2019. On January 2, 2019, John Huemoeller the CEO was granted the option to purchase 2 million shares of Axim Common stock under the plan at a purchase price of $0.75 per share. 1 million options vested immediately and 1 million options vest at the end of 2019. For the three and six months ended June 30, 2020 and 2019 the Company recorded compensation expense of $-0-, $235,000, $287,500 and $1,380,000, respectively. As of June 30, 2020, John Huemoeller the CEO hasn’t exercised the option.

NOTE 14_ STOCKHOLDERS' DEFICIT

NOTE 14: STOCKHOLDERS' DEFICIT	6 Months Ended
	Jun. 30, 2020
Notes
NOTE 14: STOCKHOLDERS' DEFICIT	NOTE 14: 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 June 30, 2020, and December 31, 2019 there are -0- and -0- shares of undesignated preferred shares issued and outstanding, respectively. There are zero shares issued and outstanding of Series A and Series B Preferred stock as of June30, 2020 and December 31, 2019. 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. As the holders of the Series C Preferred Stock, MJNA Investment Holdings, LLC has designated Dr. Timothy R. Scott, John W. Huemoeller II, Robert Cunningham and Blake Schroeder as their four Series C Directors. On February 20, 2019, MJNA Investment Holdings LLC (“Seller”) sold its 500,000 shares of AXIM Biotechnologies, Inc.’s, a Nevada corporation (the “Company”) Series C Preferred Stock to Juniper & Ivy Corporation, a Nevada corporation (“Purchaser”) for a purchase price of $500,000 (the “Purchase Price”) pursuant to a Preferred Stock Purchase Agreement (the “Purchase Agreement”). Payment of the Purchase Price was made as follows (i) a $65,000 payment made by check payable to Seller, which Purchaser borrowed from an unrelated third-party and which has no recourse against the Series C Preferred Stock or assets of Purchaser (the “Loan”), and (ii) the issuance by Purchaser to Seller of a promissory note, face value, $435,000, which has no recourse against the Series C Preferred Stock or assets of Purchaser (the “Note”). The Company’s Chief Executive Officer John W. Huemoeller II is the President of Purchaser. Mr. Huemoeller provided a personal guaranty for the Loan and the Note. The holders of the Series C Preferred Stock 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. As a result of this transaction, a change in control has occurred. Effective April 2, 2019, Blake N. Schroeder resigned as a member of the Company’s Board of Directors. Mr. Schroeder’s resignation was not because of any disagreements with the Company on matters relating to its operations, policies and practices. On April 3, 2019 pursuant to the Company’s Amended and Restated Bylaws, the holder of the Company’s Series C Preferred Stock appointed Mauricio Javier Gatto-Bellora to fill the director seat vacated by the resignation of Mr. Schroeder. Common Stock The Company has authorized 300,000,000 shares of common stock, with a par value of $0.0001 per share. As of June 30, 2020, and December 31, 2019, the Company had 113,144,222 and 64,854,539 shares of common stock issued and outstanding, respectively. 2020 Transactions: During the period between January 1, 2020 and June 30, 2020 the Company issued total 7,494,792 shares valued $1,510,500 pursuant to the Company’s Registration Statement on Form S-3. The Company received $1,510,500 in cash. The Company has an outstanding subscription price adjustment of $609,835 related to the issuance of the S-3 shares, which it expects to satisfy with the issuance of additional shares. On January 13, 2020 the Company issued 250,000 restricted shares of its common stock to third party valued at $50,000, which were carried on the books as stock to be issued. On January 23, 2020 and February 26, 2020 the Company issued 600,000, and 62,839 restricted shares of its common stock to third party valued at $262,500, and $25,000 pursuant to the stock purchase agreement for certain services, recorded as advertising and promotion expense and License, permits & Patents, respectively. On March 17, 2020 the company acquired 100% of the issued and outstanding shares of Sapphire by means of a share exchange with the Sapphire Stockholders in exchange for 54,000,000 restricted shares of its common stock at valued $7,506,000. On April 21, 2020 the Company issued 1,176,470 restricted shares of its common stock to third party valued at $100,000 pursuant to the stock purchase agreement. The cash was received in 2020. On May 6, 2020, the Company entered into an agreement with Sanammad Foundation, the Sanammad Parties agreed to forfeit and assign back to treasury, for no consideration, a total of 18,570,356 shares of the Company’s common stock, for which the fair value was $2,562,709, however for accounting purpose this transaction recording at par value adjustment to additional paid in capital. This transaction is related to the divesture of the previous operations to Sanammad. On May 22, 2020 the Company issued 190,810 and 286,215 S-8 shares valued at $60,000 and $90,000 pursuant to the Company’s Registration Statement on Form S-8 for severance fees. On June 10, 2020 and June 24, 2020 the Company issued 2,173,913 and 625,000 restricted shares of its common stock to third party valued at $500,000 and $100,000 pursuant to the stock purchase agreement. The cash was received in 2020, respectively. 2019 Transactions : During the period between January 1, 2019 and June 30, 2019 the Company issued total 2,000,000 shares valued $2,288,813 pursuant to the Company’s Registration Statement on Form S-3. The Company received $2,288,813 in cash. On March 12, 2019 the Company issued 239,521 restricted shares of its common stock to third party valued at $400,000 pursuant to the stock purchase agreement. The cash was received in 2018. On May 23, 2019 the Company issued 19,668 shares of its common stock to its Advisory board valued at $48,500 which were carried on the books as stock to be issued.

NOTE 15_ STOCK OPTIONS

NOTE 15: STOCK OPTIONS	6 Months Ended
	Jun. 30, 2020
Notes
NOTE 15: STOCK OPTIONS	NOTE 15: STOCK OPTIONS On January 02, 2019, the Company granted 2,000,000 options with an exercise price of $0.75 per share to the Company owned by Mr. John Huemoeller, Chief Executive Officer of the Company. The following table summarizes the changes in options outstanding, option exercisability and the related prices for the shares of the Company’s common stock issued to employees and consultants under a stock option plan at June 30, 2020: Options Outstanding Options Exercisable Exercise Prices ($) Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price ($) Number Exercisable Weighted Average Exercise Price ($) $ 0.75 2,000,000 9 $ 0.75 2,000,000 $ 0.75 The stock option activity for the year ended June 30, 2020 is as follows: Options Outstanding Weighted Average Exercise Price Outstanding at December 31, 2019 2,000,000 $ 0.75 Granted - - Exercised - - Expired or canceled - - Outstanding at June 30, 2020 2,000,000 $ 0.75 For the three and six months ended June 30, 2020 and 2019 stock-based compensation expense related to vested options was $-0-, $227,500, $-0- and $1,365,000, respectively. The Company determined the value of share-based compensation for options vesting during 2019 using the Black-Scholes fair value option-pricing model with the following weighted average assumptions: estimated fair value of Company’s common stock of $0.91, risk-free interest rate of 2.66%, volatility of 318%, expected lives of 10 years, and dividend yield of 0%.

NOTE 16_ DISCONTINUED OPERATION

NOTE 16: DISCONTINUED OPERATIONS	6 Months Ended
	Jun. 30, 2020
Notes
NOTE 16: DISCONTINUED OPERATIONS	NOTE 16: DISCONTINUED OPERATIONS During May 2020 the Company decided to discontinue most of its operating activities pursurant to the Separation Agreement entered into by and among the Company, CanChew License Company (“CanCo”), CanChew Biotechnologies, LLC (“CanChew”), Medical Marijuana, Inc., Dr. George A. Anastassov (“Dr. Anastassov”), Dr. Philip A. Van Damme (“Dr. Van Damme”), Lekhram Changoer (“Mr. Changoer”), Sanammad Foundation, Netherlands and Sanammad Foundation, US (collectively, the “Sanammad Parties”). (see Note 1) Pursuant to the terms of the Purchase Agreement dated as of May 6, 2020, Sanammad Parties agreed to acquire from the Company substantially all of its assets and its wholly-owned subsidiaries and to assume certain liabilities and its wholly-owned subsidiaries. Sanammad Parties agreed to pay a purchase price of $2,609,100 reflected in amount due Canchew were deemed paid in full. The sale, which was completed on May 6, 2020, did not include the Compay’s cash and certain other excluded assets and liabilities. The assets sold and liabilities transferred in the transaction were the sole revenue generating assets of the Company. The results of operations associated with the assets sold have been reclassified into discontinued operations for periods prior to the completion of the transaction. The following is a summary of assets and liabilities sold, stock retired and gain recognized, in connection with the sale of assets to Sanammad parties: Other current assets $ 5,000 Total current assets 510,017 Intangible assets, net of amortization 47,375 Total asset $ 562,392 Notes payable $ 880,000 Accounts payable and accrued expenses 200,640 Due to Canchew 1,526,603 Stock retired 1,857 Total liabilities and equity $ 2,609,100 The gain on sale of assets was reported during the period was determined as follows: Total $ 562,392 Total liability sold 2,609,100 Net gain from sales of assets and liability $ 2,046,708 The resulting gain from the sale will be fully offset by existing net operating loss carryforwards available to the Company. For the three and six months ended June 30, 2020 and 2019 the Company recognized interest expense of $2,567, $6,582, $9,076 and $13,092. Additionally, the operating results and cash flows related to assets sold on May 06, 2020 are included in discontinued operations in the consolidated statements of operations and consolidated statements of cash flows for the six months ended June 30, 2020 and 2019. As of June 30, 2020 and December 31, 2019, the Company has separately reported the asset and liabilities of the discontinued operations in the unaudited condensed consolidated balance sheet in accordance with the provision of ASC 205-20. The asset and liabilities have been reflected as discontinued operations, and consist of the following: June 30, 2020 December 31, 2019 (Unaudited) Current asset of discontinued operations Accounts receivable $ - $ 315,843 Inventory - 487,814 Loan receivable - 5,000 Total current assets of discontinued operations $ - $ 808,657 Noncurrent assets of discontinued operations Other assets $ - $ 50,534 Total noncurrent assets of discontinued operations $ - $ 50,534 Current liabilities of discontinued operations Accounts payable and accrued liabilities $ 1,603,441 $ 552,577 Due to related party - 1,526,603 Promissory note – related party note payable - 1,046,926 Total current liabilities of discontinued operations $ 1,603,441 $ 3,126,106 Loss from Discontinued Operations The sale of the majority of the assets and liabilities related to the Sanammad parties represents a strategic shift in the Company’s business. For this reason, the results of operations related to the assets and liabilities held for sale for all periods are classified as discontinued operations. The following is a summary of the results of operations related to the assets and liabilities held for sale for the six months ended June 30, 2020 and 2019: June 30, 2020 June 30, 2019 Net sales $ 5,097 $ 18,127 Total expenses $ (2,321,852) $ (2,111,430) Gain from sale of asset and liability $ 2,046,708 $ - Other loss $ (87,383) $ - Income (loss) from discontinued operations $ (357,430) $ (2,093,303) The following is a summary of net cash provided by or use in operating activities and investing activities for the assets and liabilities held for sale for the six months ended June 30, 2020 and 2019: June 30, 2020 June 30, 2019 Loss from discontinued operations $ (357,430) $ (2,093,303) Adjustment of non-cash activities (1,809,325) - Decrease in accounts receivable 315,684 - Increase in inventory (22,203) (74,873) Increase in accounts payable and accrued expenses 1,075,335 895,008 Net cash provided by (used in) operating activities $ (797,939) $ (1,273,168) Net cash provided by (used in) investing activities $ - $ - The following is a summary of the results of operations related to the assets and liabilities held for sale for the three months ended June 30, 2020 and 2019: June 30, 2020 June 30, 2019 Net sales $ 374 $ 5,447 Total expenses $ (1,189,316) $ (1,272,502) Gain from sale of asset and liability $ 2,046,708 $ - Other loss $ (87,383) $ - Income (loss) from discontinued operations $ 770,383 $ (1,267,055) The following is a summary of net cash provided by or use in operating activities and investing activities for the assets and liabilities held for sale for the three months ended June 30, 2020 and 2019: June 30, 2020 June 30, 2019 Income (loss) from discontinued operations $ 770,383 $ (1,267,055) Adjustment of non-cash activities (1,809,325) - Decrease in accounts receivable 175 13,000 Decrease (increase) in inventory 284 (6,197) Increase in accounts payable and accrued expenses 857,386 381,194 Net cash provided by (used in) operating activities $ (181,097) $ (879,058) Net cash provided by (used in) investing activities $ - $ -

NOTE 17_ COMMITMENT AND CONTING

NOTE 17: COMMITMENT AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2020
Notes
NOTE 17: COMMITMENT AND CONTINGENCIES	NOTE 17: COMMITMENT AND CONTINGENCIES On January 2, 2019 the Company entered into the term of Executive’s employment agreement, at a base salary of $10,000 per month with John W. Huemoeller II to serve as its Chief Executive Officer. The Company and Executive acknowledge and agree that Executive’s employment hereunder shall at all times be “at will,” which means that either Executive may resign at any time for any reason or for no reason, and that the Company may terminate Executive’s employment at any time for any reason or for no reason, in either case, subject to the applicable provisions of this Agreement. In further consideration for Executive’s services and subject to the approval of the Board, Executive will be granted an option to purchase 2,000,000 shares of the Company’s common stock (the “Option Shares”). The option will be subject to the terms and conditions applicable to stock options granted under the Company’s 2015 Stock Incentive Plan, as amended from time to time (the “Plan”), and as described in the Plan and the stock option agreement, which Executive will be required to sign. 50% of the Option Shares shall vest on the date of grant and the remaining 50% of the Option Shares shall vest on the 12- month anniversary of the grant date, subject to Executive’s continued employment by the Company. The exercise price per share will be equal to the fair market value per share on the date of grant, as determined by the last closing price of the Company’s common stock the day prior to grant. As of December 31, 2019 the Company recorded $1,820,000 of compensation expenses for vested stock options. Beginning in October 2019, the board decided to increase CEO base salary to $35,000 per month. As of June 30, 2020 the Company recorded $287,500 of compensation expenses for common stock issued for services. On April 24, 2017 the company entered into an employment agreement with Robert Malasek, its Chief Financial Officer and Secretary. The agreement does not have a set term and may be terminated at any time by the Company or Mr. Malasek with proper notice. The shares were issued in the 1 st On August 21, 2018, AXIM Biotechnologies, Inc. (the “Company”) entered into an agreement with Revive Therapeutics Ltd. (“Revive”) to begin selling the Company’s flagship nutraceutical product throughout the rapidly expanding Canadian cannabis market. The agreement defines a relationship where Revive will seek regulatory approval for AXIM’s proprietary, controlled-release functional chewing gum which contains hemp oil and cannabidiol (CBD). Under the terms of the agreement, Revive will have a minimum purchase amount annually, which increases each year for the term of the agreement. On September 10, 2018, AXIM Biotechnologies, Inc. (the “Company”) entered into a Letter of Intent (“LOI”) with Impression Healthcare Limited (“Impression”), Australia’s largest home dental impression company, for exclusive distribution of all AXIM® Biotech products throughout Australia and New Zealand. Pursuant to the LOI, both parties will endeavor to enter into a definitive agreement whereby the parties will co-develop new products, initially for pre-clinical and phase 1 trials (among other clinical trials), including an oral rinse liquid targeted for the treatment of oral mucositis, strep throat, oral infections and gum disease. Pending initial discussions and an internal review of AXIM® Biotech and its product offerings, Impression will collaborate with AXIM® Biotech for the licensing and distribution of its current and future medicinal cannabis products for distribution in Australia and New Zealand. On December 20, 2018 the Company signed Exclusivity Agreement on terms that include Exclusivity period of 90 days after the date on which this agreement is executed with Impression in exchange for 10,300,000 ordinary fully paid shares in Impression at the price of A$0.02 per share and exchange rate of $0.74 AUD/USD valued $150,000 which the Company recognized as a revenue in 4 th On May 31, 2019, AXIM Biotechnologies, Inc. (“AXIM”) entered into a cannabinoid product supply agreement with Impression Healthcare Limited (“Impression”), Australia’s largest home dental impression company, for the supply of the AXIM’s toothpaste and mouthwash containing cannabidiol (CBD) for its clinical trial for the treatment of periodontitis. The supply agreement is in preparation for a clinical trial to test the effectiveness of CBD in treating periodontitis. The clinical trial will be performed at Swinburne University of Technology in Melbourne, Australia. In accordance with the agreement, AXIM will supply the first batch of its patented toothpaste and mouthwash products containing CBD, along with associated placebo units for Impression to perform a randomized control clinical trial. On Apirl 14, 2020 the Company terminated its supply agreement with Impression Healthcare Limited by mutual consent of both parties. On July 2, 2019, AXIM Biotechnologies, Inc. (“AXIM”) entered into a multi-term, non-exclusive license and distribution agreement (“Agreement”) with Colorado based gum developer, KISS Industries, LLC (“KISS Industries”). Under the terms of the Agreement, AXIM grants KISS Industries a non-exclusive license to formulate and sell products that fall within AXIM’s cannabinoid chewing gum patent in exchange for royalties to be paid to AXIM based upon KISS Industries sales in the United States and Mexico. The Agreement also grants AXIM the right to: (i) acquire 10 percent of KISS Industries under certain conditions; and (ii) match any outside future offer to acquire KISS Industries as a whole. Further, AXIM’s CEO John W. Huemoeller II will also join the Board of Directors of KISS Industries.. In exchange for this license Kiss Industries will pay Axim 6% of gross sales as a royalty on all licensed products sold by Kiss. In the territory covered by this license which is the USA and Mexico. (Minimum annual royalty $50,000). Kiss will manufacture for Axim various licensed products at a price equal to 140% of Kiss’s cost. As of December 31, 2019 and June 30, 2020 Kiss Industries did not sell any Axim’s products. Industry Sponsored Research Agreement— SAPPHIRE BIOTECH, Inc. entered into the Industry Sponsored Research Agreement (“SRA”) effective February 7, 2020 to test and confirm the inhibitory activity of SBI-183 (exclusively licensed on January 13, 2020) and SBI-183 analogs, including those synthesized by the Company. The testing will include cell-based in vitro assays, NMR binding studies and testing to determine if SBI-183 enhances the activity of cytotoxic drugs in vitro. Animal studies will also be conducted under the SRA. Specifically, SBI-183 analogs will be evaluated in a mouse model of triple negative breast cancer using human tumor xenografts. The work will be performed over a period of one year with the total cost of the SRA totaling $150,468 paid prior to acquisition. In consideration of the License executed between Skysong Innovations and the Company, the SRA provides for a reduced overhead of 5% instead of the usual 67.7%. This overhead fee differential of $89,851 will be deferred for five (5) years with interest of 5% compounded annually. For the three and six months ended June 30, 2020, the Company recorded research and development of $33,694 and $33,694, respectively. Operating Lease The Company is renting an office at 45 Rockefeller Plaza 20 th Lease Agreement—On March 3, 2020, SAPPHIRE BIOTECH, Inc. entered into a 3-year lease agreement (“Lease”) to relocate to a larger space within the same business park. The new space totals 1,908 square feet with monthly base rent in the 1st year $4,713, 2nd year $4,854 and 3rd year $5,000 at implicit interest rate of 6%. Upon commencement of the Lease on April 25, 2020, the previous lease will expire. Operating Leases - Right of Use Assets and Purchase Commitments Right of Use Assets We have operating leases for office space that expire through 2020. Below is a summary of our right of use assets and liabilities as of June 30, 2020. Right-of-use assets $ 156,491 Lease liability obligations, current $ 52,305 Lease liability obligations, noncurrent 104,186 Total lease liability obligations $ 156,491 Weighted-average remaining lease term 2.83 years Weighted-average discount rate 6% The following table summarizes the lease expense for the six months ended June 30, 2020 and 2019: June 30, 2020 June 30, 2019 Operating lease expense $ 4,713* $ - Short-term lease expense 10,458 21,831 Total lease expense $ 15,171 $ 21,831 The following table summarizes the lease expense for the three months ended June 30, 2020 and 2019: June 30, 2020 June 30, 2019 Operating lease expense $ 4,713* $ - Short-term lease expense 5,547 6,923 Total lease expense $ 10,260 $ 6,923 *The first lease payment was made and adjusted in preacquisition cost. Approximate future minimum lease payments for our right of use assets over the remaining lease periods as of June 30, 2020, are as follows: Remainder of 2020 $ 28,278 2021 57,684 2022 59,416 2023 20,000 Total minimum payments 165,378 Less: amount representing interest (8,887) Total 156,491 Litigation As of June 30, 2020, 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 18_ SUBSEQUENT EVENTS

NOTE 18: SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2020
Notes
NOTE 18: SUBSEQUENT EVENTS	NOTE 18: SUBSEQUENT EVENTS On July 1, 2020 the Company issued 185,185 and 370,370 restricted shares of its common stock to third party valued at $25,000 and $50,000 pursuant to the stock purchase agreement. The cash was received subsequent to June 30, 2020. On July 2, 2020 and July 9, 2020 the Company issued 714,285 and 1,785,714 restricted shares of its common stock to third party valued at $100,000 and $250,000 pursuant to the stock purchase agreement. The cash was received subsequent to June 30, 2020. On July 10, 2020 the Company issued 5,141,377 restricted shares of its common stock in exchange for the conversion of $51,414 of a convertible note payable, which included $6,414 in interest. On July 10, 2020 the Company issued 142,857 and 357,153 restricted shares of its common stock to third party valued at $20,000 and $50,000 pursuant to the stock purchase agreement. The cash was received subsequent to June 30, 2020. On July 10, 2020 the Company issued 250,000 and 107,143 restricted shares of its common stock to third party valued at $35,000 and $15,000 pursuant to the stock purchase agreement. The cash was received subsequent to June 30, 2020 On July 14, 2020 the Company issued 200,000 restricted shares of its common stock to third party valued at $23,630 pursuant to the stock purchase agreement. The cash was received subsequent to June 30, 2020. On July 21, 2020 the Company entered into convertible note purchase agreement with Cross & Company, the Company owed to Cross & Company $609,835 of aggregated True-Up payments and desired to satisfy the amount due in full by issuing to Cross & Company a convertible promissory note. The convertible note matures on July 21, 2032 and incurred 3.5% compounded interest paid 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 $0.37. Notwithstanding the foregoing, holder shall not be permitted to convert the note, or portion thereof, if such conversion would result in beneficial ownership by holder and its affiliates of more than 4.9% of the debtor’s outstanding common stock as of the date of conversion. On July 22, 2020 the Company issued 65,359 and 130,719 restricted shares of its common stock to third party valued at $20,000 and $40,000 pursuant to the stock purchase agreement. The cash was received subsequent to June 30, 2020 On July 22, 2020 the Company issued 163,398 and 326,797 restricted shares of its common stock to third party valued at $50,000 and $100,000 pursuant to the stock purchase agreement. The cash was received subsequent to June 30, 2020 On July 22, 2020 the Company issued 816,993 and 65,359 restricted shares of its common stock to third party valued at $250,000 and $20,000 pursuant to the stock purchase agreement. The cash was received subsequent to June 30, 2020 On August 4, 2020 the Company issued 141,243 restricted shares of its common stock to third party valued at $50,000 pursuant to the stock purchase agreement. The cash was received subsequent to June 30, 2020.

NOTE 1_ ORGANIZATION_ Company D

NOTE 1: ORGANIZATION: Company Developments - Divesture of Cannabis Related Assets (Policies)	6 Months Ended
	Jun. 30, 2020
Policies
Company Developments - Divesture of Cannabis Related Assets	Company Developments – Divesture of Cannabis Related Assets On May 6, 2020 (the “Effective Date”), AXIM Biotechnologies, Inc., a Nevada corporation (the “Company”), entered into an Agreement (the “Separation Agreement”) by and among the Company, CanChew License Company (“CanCo”), CanChew Biotechnologies, LLC (“CanChew”), Medical Marijuana, Inc., Dr. George A. Anastassov (“Dr. Anastassov”), Dr. Philip A. Van Damme (“Dr. Van Damme”), Lekhram Changoer (“Mr. Changoer”), Sanammad Foundation, Netherlands and Sanammad Foundation, US (collectively, the “Sanammad Parties”), pursuant to which, among other matters as described herein, Drs. Anastassov and Van Damme and Mr. Changoer resigned as members of the Company’s Board of Directors. Pursuant to the Separation Agreement, the Company transferred and assigned to an entity designated by Dr. Anastassov all of the Company’s cannabis-related intellectual property other than the inventions and discoveries described in that certain cannabis-related patent application filed by the Company’s wholly-owned subsidiary, Sapphire Biotech, Inc. (water-soluble cannabinoid molecules). The Company also transferred 100% of its interest in CanCo and CanChew to an entity designated by Dr. Anastassov. In consideration for the transfers set forth above, any and all indebtedness owed by the Company to CanChew, totaling approximately $2.61 million, was satisfied and paid in its entirety. In addition, in consideration for the payment by the Company of $65,000, the Company purchased 100% of the issued and outstanding shares of Series B Preferred Stock held by the Sanammad Parties. Such shares shall be retired to treasury of the Company. The Sanammad Parties also agreed to forfeit and assign back to treasury, for no consideration, a total of 18,570,356 shares of the Company’s common stock.

NOTE 3_ BASIS OF PRESENTATION_

NOTE 3: BASIS OF PRESENTATION: Principles of Consolidation (Policies)	6 Months Ended
	Jun. 30, 2020
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., Marina Street LLC, Axim Biotechnologies (the Netherland Company) and Sapphire Biotech, Inc. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company balances and transactions have been eliminated upon consolidation.

NOTE 5_ SIGNIFICANT ACCOUNTIN_2

NOTE 5: SIGNIFICANT ACCOUNTING POLICIES: Use of estimates (Policies)	6 Months Ended
	Jun. 30, 2020
Policies
Use of estimates	Use of estimates The preparation of the unaudited condensed consolidated 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. Significant estimates are assumptions about collection of accounts receivable, intangible assets, useful life of intangible assets, determination of the discount rate for operating leases and assumptions used in Black-Scholes-Merton, or BSM, valuation methods, such as expected volatility, risk-free interest rate and expected dividend rate.

NOTE 5_ SIGNIFICANT ACCOUNTIN_3

NOTE 5: SIGNIFICANT ACCOUNTING POLICIES: Risks and uncertainties (Policies)	6 Months Ended
	Jun. 30, 2020
Policies
Risks and uncertainties	Risks and uncertainties The Company operates in a dynamic and highly competitive industry and is subject to risks and uncertainties common to early-stage companies in the biotechnology industry, including, but not limited to, development by competitors of new technological innovations, protection of proprietary technology, dependence on key personnel, contract manufacturer and contract research organizations, compliance with government regulations and the need to obtain additional financing to fund operations. Product candidates currently under development will require significant additional research and development efforts, including extensive preclinical studies and clinical trials and regulatory approval, prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel infrastructure and extensive compliance and reporting. The Company believes that changes in any of the following areas could have a material adverse effect on the Company’s future financial position, results of operations, or cash flows; ability to obtain future financing; advances and trends in new technologies and industry standards; results of clinical trials; regulatory approval and market acceptance of the Company’s products; development of sales channels; certain strategic relationships; litigation or claims against the Company based on intellectual property, patent, product, regulatory, or other factors; and the Company’s ability to attract and retain employees necessary to support its growth. Products developed by the Company require approvals from the U.S. Food and Drug Administration (“FDA”) or other international regulatory agencies prior to commercial sales. There can be no assurance that the Company’s research and development will be successfully completed, that adequate protection for the Company’s intellectual property will be obtained or maintained, that the products will receive the necessary approvals, or that any approved products will be commercially viable. If the Company was denied approval, approval was delayed or the Company was unable to maintain approval, it could have a materially adverse impact on the Company. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will generate revenue from product sales. The Company operates in an environment of rapid change in technology and substantial competition from other pharmaceutical and biotechnology companies. In addition, the Company is dependent upon the services of its employees, consultants and other third parties. Beginning in late 2019, the outbreak of a novel strain of virus named SARS-CoV-2 (severe acute respiratory syndrome coronavirus 2), or coronavirus, which causes coronavirus disease 2019, or COVID-19, has evolved into a global pandemic. The extent of the impact of the coronavirus outbreak on the Company’s business will depend on certain developments, including the duration and spread of the outbreak and the extent and severity of the impact on the Company’s clinical trial activities, research activities and suppliers, all of which are uncertain and cannot be predicted. At this point, the extent to which the coronavirus outbreak may materially impact the Company’s financial condition, liquidity or results of operations is uncertain. The Company has expended and will continue to expend substantial funds to complete the research, development and clinical testing of product candidates. The Company also will be required to expend additional funds to establish commercial-scale manufacturing arrangements and to provide for the marketing and distribution of products that receive regulatory approval. The Company may require additional funds to commercialize its products. The Company is unable to entirely fund these efforts with its current financial resources. If adequate funds are unavailable on a timely basis from operations or additional sources of financing, the Company may have to delay, reduce the scope of or eliminate one or more of its research or development programs which would materially and adversely affect its business, financial condition and operations. There have been no material changes in the accounting policies from those disclosed in the financial statements and the related notes included in the Form 10-K.

NOTE 5_ SIGNIFICANT ACCOUNTIN_4

NOTE 5: SIGNIFICANT ACCOUNTING POLICIES: Cash equivalents (Policies)	6 Months Ended
	Jun. 30, 2020
Policies
Cash equivalents	Cash equivalents The Company considers all highly liquid investments with original maturities of six months or less at the time of purchase to be cash equivalents. As of June 30, 2020 and December 31, 2019, the Company had no cash equivalents. Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company had no uninsured balances at June 30, 2020 and December 31, 2019. The Company has never experienced any losses related to these balances.

NOTE 5_ SIGNIFICANT ACCOUNTIN_5

NOTE 5: SIGNIFICANT ACCOUNTING POLICIES: Accounts Receivable (Policies)	6 Months Ended
	Jun. 30, 2020
Policies
Accounts Receivable	Accounts Receivable It is the Company’s policy to review accounts receivable at least on a monthly basis for conductibility and follow up with customers accordingly. Covid19 has slowed collection as our customers are in a mandated pause. The Company does not have geographic concentration of customers. Accounts receivable were all generated from discontinued operations for the three and six-months ending June 30, 2020 and 2019.

NOTE 5_ SIGNIFICANT ACCOUNTIN_6

NOTE 5: SIGNIFICANT ACCOUNTING POLICIES: Concentrations (Policies)	6 Months Ended
	Jun. 30, 2020
Policies
Concentrations	Concentrations At June 30, 2020 and December 31, 2019, one customer and two customers accounted for 100% and 100% of accounts receivable, respectively. For the six months period ended June 30, 2020, one customer accounted for 21% of total revenue. For the six months period ended June 30, 2019, two customers accounted for 88% of total revenue. Accounts receivable and revenue were all generated from discontinued operations for the three and six-months ending June 30, 2020 and 2019.

NOTE 5_ SIGNIFICANT ACCOUNTIN_7

NOTE 5: SIGNIFICANT ACCOUNTING POLICIES: Inventory (Policies)	6 Months Ended
	Jun. 30, 2020
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. As of June 30, 2020 and December 31, 2019, the Company had $-0- and $175,304 of finished goods and $-0- and $312,511 of raw materials; respectively. All inventory was related to discontinued operations for the three and six-months ending June 30, 2020 and 2019.

NOTE 5_ SIGNIFICANT ACCOUNTIN_8

NOTE 5: SIGNIFICANT ACCOUNTING POLICIES: Property and equipment (Policies)	6 Months Ended
	Jun. 30, 2020
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. The Company’s property and equipment relating to continuing operations consisted of the following at June 30, 2020 and December 31, 2019, respectively and none related to discontinued operations. June 30, 2020 December 31, 2019 Equipment of continuing operations $ 108,292 $ 16,780 Less: accumulated depreciation $ 19,817 $ 14,543 $ 88,475 $ 2,237

NOTE 5_ SIGNIFICANT ACCOUNTIN_9

NOTE 5: SIGNIFICANT ACCOUNTING POLICIES: Intangible Assets (Policies)	6 Months Ended
	Jun. 30, 2020
Policies
Intangible Assets	Intangible Assets As required by generally accepted accounting principles, trademarks and patents are amortized if they have a definite life, and not amortized if they have an indefinite life and then they are tested annually for impairment. The Company’s intangible assets relating to continuing operations and discontinued operations consisted of the following at June 30, 2020 and December 31, 2019, respectively. June 30, 2020 December 31, 2019 Patent – Sapphire $ 250,000 $ - Goodwill $ 3,541,451 Research in progress $ 5,900,000 Less: accumulated amortization and impairment $ 3,604 $ - $ 9,687,847 $ - Intangible assets of discontinued operations $ - $ 715,432 Less: accumulated amortization and impairment $ - $ 664,898

NOTE 5_ SIGNIFICANT ACCOUNTI_10

NOTE 5: SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Policies)	6 Months Ended
	Jun. 30, 2020
Policies
Revenue Recognition	Revenue Recognition The Company follows the guidance contained in Topic 606 (FASB ASC 606). The core principle of Topic 606 (FASB ASC 606) is that an entity should recognize revenue to depict the transfer of goods of services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revenue recognition guidance contained in Topic 606, to follow the five-step revenue recognition model along with other guidance impacted by this standard: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transportation price; (4) allocate the transportation price; (5) recognize revenue when or as the entity satisfies a performance obligation. All revenue was from operations that were divested. Revenues are recognized when title for goods is transferred; non-refundable fees and proceeds from irrevocable agreements recognized when inflows or other enhancements of assets of the Company are received. Revenues from continuing operations recognized for three and six months ended June 30, 2020 and 2019 amounted to $-0-, $-0-, $-0- and $-0-, respectively. Revenues from discontinued operations recognized for three and six months ended June 30, 2020 and 2019 amounted to $849, $93,088, $7,990 and $110,149, respectively.

NOTE 5_ SIGNIFICANT ACCOUNTI_11

NOTE 5: SIGNIFICANT ACCOUNTING POLICIES: Cost of Sales (Policies)	6 Months Ended
	Jun. 30, 2020
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. Cost of sales all related to discontinued operations.

NOTE 5_ SIGNIFICANT ACCOUNTI_12

NOTE 5: SIGNIFICANT ACCOUNTING POLICIES: Shipping Costs (Policies)	6 Months Ended
	Jun. 30, 2020
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. Shipping costs all related to discontinued operations.

NOTE 5_ SIGNIFICANT ACCOUNTI_13

NOTE 5: SIGNIFICANT ACCOUNTING POLICIES: Fair Value Measurements (Policies)	6 Months Ended
	Jun. 30, 2020
Policies
Fair Value Measurements	Fair Value Measurements The Company applies the guidance that is codified under ASC 820-10 related to assets and liabilities recognized or disclosed in the financial statements at fair value on a recurring basis. ASC 820-10 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The provisions of ASC 820-10 only apply to the Company’s investment securities, which are carried at fair value. ASC 820-10 clarifies that fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based on the highest and best use of the asset or liability. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or liability. ASC 820-10 requires valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized as follows: Fair Value Hierarchy Inputs to Fair Value Methodology Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 Quoted prices for similar assets or liabilities; quoted markets that are not active;or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the financial instrument; inputs other than quoted prices that are observable for the asset or liability; or inputs that are derived principally from, or corroborated by, observable market information Level 3 Pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption is unobservable or when the estimation of fair value requires significant management judgment The Company categorizes a financial instrument in the fair value hierarchy based on the lowest level of input that is significant to its fair value measurement. As of June 30, 2020 Quoted Market Prices in Active Markets (Level 1) Internal Models with Significant Observable Market Parameters (Level 2) Internal Models with Significant Unobservable Market Parameters (Level 3) Total Fair Value Reported in Financial Statements Marketable Securities $ - $ - $ - $ - As of December 31, 2019 Quoted Market Prices in Active Markets (Level 1) Internal Models with Significant Observable Market Parameters (Level 2) Internal Models with Significant Unobservable Market Parameters (Level 3) Total Fair Value Reported in Financial Statements Marketable Securities $ 213,745 $ - $ - $ 213,745 The Company recorded a change in FMV of trading securities as unrealized gain (loss) and realized gain (loss) of $-0-, $(109,040), $113,400 and $-0- for the three months ended June 30, 2020 and 2019, respectively. The Company recorded a change in FMV of trading securities as unrealized gain (loss) and realized gain (loss) of $(104,705), $(109,040), $138,400 and $-0- for the six months ended June 30, 2020 and 2019, respectively. These securities are classified as trading. The Company did not have any Level 2 or Level 3 assets or liabilities as of June 30, 2020 and December 31, 2019, There were no financial liabilities measured and recognized at fair value as of June 30, 2020 and December 31, 2019. Cash is as of June 30, 2020 and December 31, 2019 is classified as Level 1 within our fair value hierarchy.

NOTE 5_ SIGNIFICANT ACCOUNTI_14

NOTE 5: SIGNIFICANT ACCOUNTING POLICIES: Income Taxes (Policies)	6 Months Ended
	Jun. 30, 2020
Policies
Income Taxes	Income Taxes The Company did not record a federal or state income tax provision or benefit for the three and six months ended June 30, 2020 and 2019 as it has incurred net losses since inception. In addition, the net deferred tax assets generated from net operating losses are fully offset by a valuation allowance as the Company believes it is not more likely than not that the benefit will be realized. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was enacted and signed into law and GAAP requires recognition of the tax effects of new legislation during the reporting period that includes the enactment date. The CARES Act includes changes to the tax provisions that benefits business entities, and makes certain technical corrections to the 2017 Tax Cuts and Jobs Act. The tax relief measures for businesses in the CARES Act include a five-year net operating loss carryback for certain net operating losses, suspension of the annual deduction limitation of 80% of taxable income for certain net operating losses, changes in the deductibility of interest, acceleration of alternative minimum tax credit refunds, payroll tax relief, and a technical correction to allow accelerated deductions for qualified improvement property. The CARES Act also provides other non-tax benefits to assist those impacted by the pandemic. The Company evaluated the impact of the CARES Act and determined that there is no material impact to the income tax provision for the quarter.

NOTE 5_ SIGNIFICANT ACCOUNTI_15

NOTE 5: SIGNIFICANT ACCOUNTING POLICIES: Concentrations of Credit Risk (Policies)	6 Months Ended
	Jun. 30, 2020
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 had $240,769 and 0 allowance for doubtful accounts at June 30, 2020 and December 31, 2019, respectively and had $240,769 accounts receivable at June 30, 2020 and $315,843 at December 31, 2019, all was related to discontinued operations for the three and six-months ending June 30, 2020 and 2019.

NOTE 5_ SIGNIFICANT ACCOUNTI_16

NOTE 5: SIGNIFICANT ACCOUNTING POLICIES: Net Loss per Common Share (Policies)	6 Months Ended
	Jun. 30, 2020
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 35,619,074 common share equivalents at June 30, 2020 and 16,295,498 common shares at December 31, 2019. For the three and six months ended June 30, 2020 and 2019 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 5_ SIGNIFICANT ACCOUNTI_17

NOTE 5: SIGNIFICANT ACCOUNTING POLICIES: Stock Based Compensation (Policies)	6 Months Ended
	Jun. 30, 2020
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. The Company accounts for stock options issued to non-employees based on the estimated fair value of the awards using the Black-Scholes option pricing model in accordance with ASC 505-50, Equity-Based Payment to Non-employees

NOTE 5_ SIGNIFICANT ACCOUNTI_18

NOTE 5: SIGNIFICANT ACCOUNTING POLICIES: Research and Development (Policies)	6 Months Ended
	Jun. 30, 2020
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. For the three and six months ended June 30, 2020 and 2019 The Company incurred research and development expenses of $121,437, $-0-, $126,292 and $-0- from continuing operations, respectively. For the three and six months ended June 30, 2020 and 2019 The Company incurred research and development expenses of $200,669, $991,637, $816,324 and $1,524,316 from discontinued operations, respectively. The Company has entered into various agreements with CROs. The Company’s research and development accruals are estimated based on the level of services performed, progress of the studies, including the phase or completion of events, and contracted costs. The estimated costs of research and development provided, but not yet invoiced, are included in accrued liabilities on the balance sheet. If the actual timing of the performance of services or the level of effort varies from the original estimates, the Company will adjust the accrual accordingly. Payments made to CROs under these arrangements in advance of the performance of the related services are recorded as prepaid expenses and other current assets until the services are rendered.

NOTE 5_ SIGNIFICANT ACCOUNTI_19

NOTE 5: SIGNIFICANT ACCOUNTING POLICIES: Recently Issued Accounting Standards (Policies)	6 Months Ended
	Jun. 30, 2020
Policies
Recently Issued Accounting Standards	Recently Issued Accounting Standards In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842) Codification Improvements The Company has a long-term operating lease, and the long-term operating lease took effect in April 2020. (see Note 18) In November 2018, the FASB issued ASU 2018-18 , Collaborative Arrangements (Topic 818): Clarifying the Interaction Between Topic 808 and Topic 606 See Note X for more information related to the Company’s lease obligations. In October 2018, the FASB issued ASU 2018-17, Targeted Improvements to Related Party Guidance for Variable Interest Entities In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. 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 2_ ACQUISITION OF SAPPHI_2

NOTE 2: ACQUISITION OF SAPPHIRE BIOTECH, INC.: Schedule of consideration paid (Tables)	6 Months Ended
	Jun. 30, 2020
Tables/Schedules
Schedule of consideration paid	Consideration: Cash and cash equivalents $ 79,814 Property and equipment, net 20,533 Intangible assets including goodwill 9,763,233 Security deposit 12,785 Total asset acquired $ 9,876,365 Accrued expenses and other current liabilities $ 5,767 Deferred taxes liability 1,845,000 Notes Payable including convertible and discount on conversion 519,598 Total liabilities assumed 2,370,365 Net assets acquired $ 7,506,000

NOTE 2_ ACQUISITION OF SAPPHI_3

NOTE 2: ACQUISITION OF SAPPHIRE BIOTECH, INC.: Schedule of Pro-Forma Information (Tables)	6 Months Ended
	Jun. 30, 2020
Tables/Schedules
Schedule of Pro-Forma Information	For six months ended June 30, 2020 June 30, 2019 Net loss from continuing operations $ (2,176,677) $ (2,167,394) Net loss from discontinued operations $ (357,430) $ (2,093,303) Net loss per share—Basic $ (0.02) $ (0.04) Net loss per share—Diluted $ (0.02) $ (0.04) For three months ended June 30, 2020 June 30, 2019 Net loss from continuing operations $ (849,804) $ (591,215) Net loss from discontinued operations $ 770,383 $ (1,267,055) Net loss per share—Basic $ 0.00 $ (0.02) Net loss per share—Diluted $ 0.00 $ (0.02)

NOTE 5_ SIGNIFICANT ACCOUNTI_20

NOTE 5: SIGNIFICANT ACCOUNTING POLICIES: Property and equipment: Schedule of property and equipment relating to continuing operations (Tables)	6 Months Ended
	Jun. 30, 2020
Tables/Schedules
Schedule of property and equipment relating to continuing operations	June 30, 2020 December 31, 2019 Equipment of continuing operations $ 108,292 $ 16,780 Less: accumulated depreciation $ 19,817 $ 14,543 $ 88,475 $ 2,237

NOTE 5_ SIGNIFICANT ACCOUNTI_21

NOTE 5: SIGNIFICANT ACCOUNTING POLICIES: Intangible Assets: Schedule of intangible assets (Tables)	6 Months Ended
	Jun. 30, 2020
Tables/Schedules
Schedule of intangible assets	June 30, 2020 December 31, 2019 Patent – Sapphire $ 250,000 $ - Goodwill $ 3,541,451 Research in progress $ 5,900,000 Less: accumulated amortization and impairment $ 3,604 $ - $ 9,687,847 $ - Intangible assets of discontinued operations $ - $ 715,432 Less: accumulated amortization and impairment $ - $ 664,898

NOTE 5_ SIGNIFICANT ACCOUNTI_22

NOTE 5: SIGNIFICANT ACCOUNTING POLICIES: Fair Value Measurements: Schedule of Fair Value Hierarchy for Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2020
Tables/Schedules
Schedule of Fair Value Hierarchy for Financial Instruments	As of June 30, 2020 Quoted Market Prices in Active Markets (Level 1) Internal Models with Significant Observable Market Parameters (Level 2) Internal Models with Significant Unobservable Market Parameters (Level 3) Total Fair Value Reported in Financial Statements Marketable Securities $ - $ - $ - $ - As of December 31, 2019 Quoted Market Prices in Active Markets (Level 1) Internal Models with Significant Observable Market Parameters (Level 2) Internal Models with Significant Unobservable Market Parameters (Level 3) Total Fair Value Reported in Financial Statements Marketable Securities $ 213,745 $ - $ - $ 213,745

NOTE 6_ PREPAID EXPENSES_ Sched

NOTE 6: PREPAID EXPENSES: Schedule of Prepaid Expenses (Tables)	6 Months Ended
	Jun. 30, 2020
Tables/Schedules
Schedule of Prepaid Expenses	June 30, 2020 December 31, 2019 Prepaid insurance $ 99,819 $ 67,734 Prepaid software/license 4,487 9,872 $ 104,306 $ 77,606

NOTE 12_ CONVERTIBLE NOTES PA_2

NOTE 12: CONVERTIBLE NOTES PAYABLE: Schedule of Convertible Notes Payable, Shareholder (Tables)	6 Months Ended
	Jun. 30, 2020
Tables/Schedules
Schedule of Convertible Notes Payable, Shareholder	June 30, 2020 December 31, 2019 Convertible note payable, due on July 1, 2028, interest at 3.5% p.a. $ 45,000 $ 45,000 Accrued interest 6,370 5,578 $ 51,370 $ 50,578

NOTE 12_ CONVERTIBLE NOTES PA_3

NOTE 12: CONVERTIBLE NOTES PAYABLE: Schedule of Convertible Note Payable of Related Party (Tables)	6 Months Ended
	Jun. 30, 2020
Tables/Schedules
Schedule of Convertible Note Payable of Related Party	June 30, 2020 December 31, 2019 Convertible note payable, due on November 1, 2026, interest at 3.5% p.a. $ 4,000,000 $ 4,000,000 Accrued interest (The accrued interest and principal are both includedin the captions titled “convertible note payable” in the balance sheet) 88,648 93,333 Convertible note payable, net $ 4,088,648 $ 4,093,333

NOTE 12_ CONVERTIBLE NOTES PA_4

NOTE 12: CONVERTIBLE NOTES PAYABLE: Schedule of Convertible Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2020
Tables/Schedules
Schedule of Convertible Notes Payable	June 30, 2020 December 31, 2019 Convertible note payable, due on October 1, 2029, interest at 3.5% p.a. $ 484,478 $ 484,478 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 31, 2034, interest at 3% p.a. 190,000 - Accrued interest (The accrued interest and principal are both includedin the captions titled “convertible note payable” in the balance sheet) 197,196 168,208 Total 1,871,674 1,652,686 Less: unamortized debt discount/finance premium costs (888,299) (739,732) Convertible note payable, net $ 983,375 $ 912,954

NOTE 15_ STOCK OPTIONS_ Schedul

NOTE 15: STOCK OPTIONS: Schedule of options under Stock Option Plan (Tables)	6 Months Ended
	Jun. 30, 2020
Tables/Schedules
Schedule of options under Stock Option Plan	Options Outstanding Options Exercisable Exercise Prices ($) Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price ($) Number Exercisable Weighted Average Exercise Price ($) $ 0.75 2,000,000 9 $ 0.75 2,000,000 $ 0.75

NOTE 15_ STOCK OPTIONS_ Sched_2

NOTE 15: STOCK OPTIONS: Schedule of Stock Option Activity (Tables)	6 Months Ended
	Jun. 30, 2020
Tables/Schedules
Schedule of Stock Option Activity	Options Outstanding Weighted Average Exercise Price Outstanding at December 31, 2019 2,000,000 $ 0.75 Granted - - Exercised - - Expired or canceled - - Outstanding at June 30, 2020 2,000,000 $ 0.75

NOTE 16_ DISCONTINUED OPERATI_2

NOTE 16: DISCONTINUED OPERATIONS: Schedule of Discontinued Operations - Summary of assets and liabilities sold (Tables)	6 Months Ended
	Jun. 30, 2020
Tables/Schedules
Schedule of Discontinued Operations - Summary of assets and liabilities sold	Other current assets $ 5,000 Total current assets 510,017 Intangible assets, net of amortization 47,375 Total asset $ 562,392 Notes payable $ 880,000 Accounts payable and accrued expenses 200,640 Due to Canchew 1,526,603 Stock retired 1,857 Total liabilities and equity $ 2,609,100 The gain on sale of assets was reported during the period was determined as follows: Total $ 562,392 Total liability sold 2,609,100 Net gain from sales of assets and liability $ 2,046,708

NOTE 16_ DISCONTINUED OPERATI_3

NOTE 16: DISCONTINUED OPERATIONS: Schedule of Discontinued Operations - Asset and liabilities reflected (Tables)	6 Months Ended
	Jun. 30, 2020
Tables/Schedules
Schedule of Discontinued Operations - Asset and liabilities reflected	June 30, 2020 December 31, 2019 (Unaudited) Current asset of discontinued operations Accounts receivable $ - $ 315,843 Inventory - 487,814 Loan receivable - 5,000 Total current assets of discontinued operations $ - $ 808,657 Noncurrent assets of discontinued operations Other assets $ - $ 50,534 Total noncurrent assets of discontinued operations $ - $ 50,534 Current liabilities of discontinued operations Accounts payable and accrued liabilities $ 1,603,441 $ 552,577 Due to related party - 1,526,603 Promissory note – related party note payable - 1,046,926 Total current liabilities of discontinued operations $ 1,603,441 $ 3,126,106

NOTE 16_ DISCONTINUED OPERATI_4

NOTE 16: DISCONTINUED OPERATIONS: Summary of Results of Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2020
Tables/Schedules
Summary of Results of Discontinued Operations	The following is a summary of the results of operations related to the assets and liabilities held for sale for the six months ended June 30, 2020 and 2019: June 30, 2020 June 30, 2019 Net sales $ 5,097 $ 18,127 Total expenses $ (2,321,852) $ (2,111,430) Gain from sale of asset and liability $ 2,046,708 $ - Other loss $ (87,383) $ - Income (loss) from discontinued operations $ (357,430) $ (2,093,303) The following is a summary of net cash provided by or use in operating activities and investing activities for the assets and liabilities held for sale for the six months ended June 30, 2020 and 2019: June 30, 2020 June 30, 2019 Loss from discontinued operations $ (357,430) $ (2,093,303) Adjustment of non-cash activities (1,809,325) - Decrease in accounts receivable 315,684 - Increase in inventory (22,203) (74,873) Increase in accounts payable and accrued expenses 1,075,335 895,008 Net cash provided by (used in) operating activities $ (797,939) $ (1,273,168) Net cash provided by (used in) investing activities $ - $ - The following is a summary of the results of operations related to the assets and liabilities held for sale for the three months ended June 30, 2020 and 2019: June 30, 2020 June 30, 2019 Net sales $ 374 $ 5,447 Total expenses $ (1,189,316) $ (1,272,502) Gain from sale of asset and liability $ 2,046,708 $ - Other loss $ (87,383) $ - Income (loss) from discontinued operations $ 770,383 $ (1,267,055) The following is a summary of net cash provided by or use in operating activities and investing activities for the assets and liabilities held for sale for the three months ended June 30, 2020 and 2019: June 30, 2020 June 30, 2019 Income (loss) from discontinued operations $ 770,383 $ (1,267,055) Adjustment of non-cash activities (1,809,325) - Decrease in accounts receivable 175 13,000 Decrease (increase) in inventory 284 (6,197) Increase in accounts payable and accrued expenses 857,386 381,194 Net cash provided by (used in) operating activities $ (181,097) $ (879,058) Net cash provided by (used in) investing activities $ - $ -

NOTE 17_ COMMITMENT AND CONTI_2

NOTE 17: COMMITMENT AND CONTINGENCIES: Summary of Right of Use Assets and Liabilities (Tables)	6 Months Ended
	Jun. 30, 2020
Tables/Schedules
Summary of Right of Use Assets and Liabilities	Right-of-use assets $ 156,491 Lease liability obligations, current $ 52,305 Lease liability obligations, noncurrent 104,186 Total lease liability obligations $ 156,491 Weighted-average remaining lease term 2.83 years Weighted-average discount rate 6%

NOTE 17_ COMMITMENT AND CONTI_3

NOTE 17: COMMITMENT AND CONTINGENCIES: Summary of Lease Expenses (Tables)	6 Months Ended
	Jun. 30, 2020
Tables/Schedules
Summary of Lease Expenses	The following table summarizes the lease expense for the six months ended June 30, 2020 and 2019: June 30, 2020 June 30, 2019 Operating lease expense $ 4,713* $ - Short-term lease expense 10,458 21,831 Total lease expense $ 15,171 $ 21,831 The following table summarizes the lease expense for the three months ended June 30, 2020 and 2019: June 30, 2020 June 30, 2019 Operating lease expense $ 4,713* $ - Short-term lease expense 5,547 6,923 Total lease expense $ 10,260 $ 6,923 *The first lease payment was made and adjusted in preacquisition cost.

NOTE 17_ COMMITMENT AND CONTI_4

NOTE 17: COMMITMENT AND CONTINGENCIES: Schedule of Future Minimum Rental Payments for Operating Leases (Tables)	6 Months Ended
	Jun. 30, 2020
Tables/Schedules
Schedule of Future Minimum Rental Payments for Operating Leases	Remainder of 2020 $ 28,278 2021 57,684 2022 59,416 2023 20,000 Total minimum payments 165,378 Less: amount representing interest (8,887) Total 156,491

NOTE 4_ GOING CONCERN (Details)

NOTE 4: GOING CONCERN (Details) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Details
Accumulated deficit	$ (37,547,798)		$ (35,440,042)
Net cash provided by (used in) operating activities from continuing operations	(976,745)	$ (605,319)
Net cash provided by (used in) operating activities from discontinued operations	$ (797,939)	$ (1,273,168)

NOTE 5_ SIGNIFICANT ACCOUNTI_23

NOTE 5: SIGNIFICANT ACCOUNTING POLICIES: Fair Value Measurements: Schedule of Fair Value Hierarchy for Financial Instruments (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Fair Value, Inputs, Level 1
Marketable Securities	$ 0	$ 213,745
Fair Value, Inputs, Level 2
Marketable Securities	0	0
Fair Value, Inputs, Level 3
Marketable Securities	0	0
Fair Value, Inputs, Level 1, 2 and 3
Marketable Securities	$ 0	$ 213,745

NOTE 5_ SIGNIFICANT ACCOUNTI_24

NOTE 5: SIGNIFICANT ACCOUNTING POLICIES: Research and Development (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Details
Research and development expenses	$ 121,437	$ 0	$ 126,292	$ 0

NOTE 6_ PREPAID EXPENSES_ Sch_2

NOTE 6: PREPAID EXPENSES: Schedule of Prepaid Expenses (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Prepaid expenses	$ 104,306	$ 77,606
Prepaid insurance
Prepaid expenses	99,819	67,734
Prepaid raw material/inventory
Prepaid expenses	$ 4,487	$ 9,872

NOTE 6_ PREPAID EXPENSES (Detai

NOTE 6: PREPAID EXPENSES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Details
Amortization of Prepaid Expenses	$ 34,108	$ 25,972	$ 68,079	$ 51,740

NOTE 12_ CONVERTIBLE NOTES PA_5

NOTE 12: CONVERTIBLE NOTES PAYABLE: Schedule of Convertible Notes Payable, Shareholder (Details) - Convertible notes payable due to shareholder - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Debt Instrument, Face Amount	$ 45,000	$ 45,000
Accrued interest	6,370	5,578
Long-term Debt	$ 51,370	$ 50,578

NOTE 12_ CONVERTIBLE NOTES PA_6

NOTE 12: CONVERTIBLE NOTES PAYABLE: Schedule of Convertible Note Payable of Related Party (Details) - Convertible notes payable of related party - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Debt Instrument, Face Amount	$ 4,000,000	$ 4,000,000
Interest Payable, Current	88,648	93,333
Long-term Debt	$ 4,088,648	$ 4,093,333

NOTE 12_ CONVERTIBLE NOTES PA_7

NOTE 12: CONVERTIBLE NOTES PAYABLE: Schedule of Convertible Notes Payable (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Convertible Notes
Accrued interest	$ 197,196	$ 168,208
Total	1,871,674	1,652,686
Less unamortized debt discount	(888,299)	(739,732)
Convertible note payable, net	983,375	912,954
Convertible Note 1
Debt Instrument, Face Amount	484,478	484,478
Convertible Note 2
Debt Instrument, Face Amount	1,000,000	1,000,000
Convertible Note 3
Debt Instrument, Face Amount	$ 190,000	$ 0

NOTE 15_ STOCK OPTIONS_ Sched_3

NOTE 15: STOCK OPTIONS: Schedule of options under Stock Option Plan (Details) - Common stock issued to employees and consultants under a stock option plan	Jun. 30, 2020$ / sharesshares
Number Outstanding | shares	2,000,000
Weighted Average Remaining Contractual Life (Years)	9 years
Weighted Average Exercise Price ($) | $ / shares	$ 0.75
Number Exercisable | shares	2,000,000
Weighted Average Exercise Price ($) | $ / shares	$ 0.75

NOTE 15_ STOCK OPTIONS_ Sched_4

NOTE 15: STOCK OPTIONS: Schedule of Stock Option Activity (Details) - Option activity	6 Months Ended
	Jun. 30, 2020$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | shares	2,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance | $ / shares	$ 0.75
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares	0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | shares	0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ / shares	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | shares	0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $ / shares	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | shares	2,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ / shares	$ 0.75

NOTE 18_ SUBSEQUENT EVENTS (Det

NOTE 18: SUBSEQUENT EVENTS (Details)	6 Months Ended
	Jun. 30, 2020
Event 1
Subsequent Event, Date	Jul. 1, 2020
Subsequent Event, Description	Company issued 185,185 and 370,370 restricted shares of its common stock
Event 2
Subsequent Event, Description	Company issued 714,285 and 1,785,714 restricted shares of its common stock
Event 2 | Minimum
Subsequent Event, Date	Jul. 2, 2020
Event 2 | Maximum
Subsequent Event, Date	Jul. 9, 2020
Event 3
Subsequent Event, Date	Jul. 10, 2020
Subsequent Event, Description	Company issued 5,141,377 restricted shares of its common stock
Event 4
Subsequent Event, Date	Jul. 10, 2020
Subsequent Event, Description	Company issued 142,857 and 357,153 restricted shares of its common stock
Event 5
Subsequent Event, Date	Jul. 10, 2020
Subsequent Event, Description	Company issued 250,000 and 107,143 restricted shares of its common stock
Event 6
Subsequent Event, Date	Jul. 14, 2020
Subsequent Event, Description	Company issued 200,000 restricted shares of its common stock
Event 7
Subsequent Event, Date	Jul. 21, 2020
Subsequent Event, Description	Company entered into convertible note purchase agreement with Cross & Company
Event 8
Subsequent Event, Date	Jul. 22, 2020
Subsequent Event, Description	Company issued 65,359 and 130,719 restricted shares of its common stock
Event 9
Subsequent Event, Date	Jul. 22, 2020
Subsequent Event, Description	Company issued 163,398 and 326,797 restricted shares of its common
Event 10
Subsequent Event, Date	Jul. 22, 2020
Subsequent Event, Description	Company issued 816,993 and 65,359 restricted shares of its common stock
Event 11
Subsequent Event, Date	Aug. 4, 2020
Subsequent Event, Description	Company issued 141,243 restricted shares of its common stock