Cover
Cover - shares | 6 Months Ended | |
Sep. 30, 2021 | Nov. 19, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
DocumentTransitionReport | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --03-31 | |
Entity File Number | 000-55000 | |
Entity Registrant Name | EARTH SCIENCE TECH, INC. | |
Entity Central Index Key | 0001538495 | |
Entity Tax Identification Number | 80-0931484 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 10650 NW 29th Terrace | |
Entity Address, City or Town | Doral | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33172 | |
City Area Code | (786) | |
Local Phone Number | 375-7281 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 52,851,966 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2021 | Mar. 31, 2021 |
Current Assets: | ||
Cash | $ 25,217 | $ 16,161 |
Accounts Receivable(net allowance of $101,404 and $101,404 respectively ) | 5,456 | 6,108 |
Prepaid expenses and other current assets | ||
Inventory | 16,661 | 21,739 |
Total current assets | 47,334 | 44,008 |
Property and equipment, net | 1,712 | |
Other Assets: | ||
Patent, net | ||
Rou Asset | 12,653 | |
Deposits | 6,191 | 6,191 |
Total other assets | 6,191 | 18,844 |
Total Assets | 53,525 | 64,564 |
Current Liabilities: | ||
Accounts payable | 172,328 | 173,994 |
PPP Loan | 31,750 | 31,750 |
PPP Loan 2 | 31,215 | 31,215 |
Issa Loan Advance | 50,000 | 49,980 |
SBA EDIL Loan | 106,237 | 106,800 |
Accrued expenses | 250,605 | 234,319 |
Accrued settlement | 585,886 | 3,994,523 |
Promissory Note-GHS | 30,000 | 30,000 |
Lease Liability Current | 12,653 | |
Notes payable - related party | 59,558 | 59,558 |
Total current liabilities | 1,733,209 | 5,091,412 |
Long Term Liabilities | ||
Total liabilities | 1,733,209 | 5,091,412 |
Stockholders’ (Deficit) Equity: | ||
Common stock, par value $0.001 per share, 75,000,000 shares authorized; 52,851,966 and 50,551,966 shares issued and outstanding as of September 30, 2021 and March 31, 2021 respectively | 52,853 | 50,553 |
Additional paid-in capital | 28,245,452 | 28,219,577 |
Accumulated deficit | (29,977,989) | (33,296,978) |
Total stockholders’ (Deficit)Equity | (1,679,684) | (5,026,848) |
Total Liabilities and Stockholders’ (Deficit) Equity | 53,525 | 64,564 |
SBA EDIL Loan [Member] | ||
Current Liabilities: | ||
Interest Payable | 1,563 | 0 |
Convertible Notes-GHS [Member] | ||
Current Liabilities: | ||
Interest Payable | 38,829 | 29,107 |
Promissory Note-GHS [Member] | ||
Current Liabilities: | ||
Interest Payable | 11,737 | 9,029 |
Convertible Note 2-GHS [Member] | ||
Current Liabilities: | ||
Convertible Note | 42,072 | 62,055 |
Convertible Note 3-GHS [Member] | ||
Current Liabilities: | ||
Convertible Note | 88,825 | 88,825 |
Convertible Note 4-GHS [Member] | ||
Current Liabilities: | ||
Convertible Note | 88,894 | 88,894 |
Convertible Note 5-GHS [Member] | ||
Current Liabilities: | ||
Convertible Note | 88,710 | 88,710 |
Convertible Note 6-GHS [Member] | ||
Current Liabilities: | ||
Convertible Note | $ 55,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2021 | Mar. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 101,404 | $ 101,404 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 52,851,966 | 50,551,966 |
Common stock, shares outstanding | 52,851,966 | 50,551,966 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Short-term Debt [Line Items] | ||||
Revenue | $ 2,455 | $ 26,551 | $ 9,945 | $ 98,631 |
Cost of revenues | 1,332 | 13,116 | 5,077 | 61,241 |
Gross Profit | 1,123 | 13,435 | 4,868 | 37,390 |
Operating Expenses: | ||||
Compensation - officers | 9,500 | 120,375 | 15,212 | 120,375 |
Officer Compensation Stock | ||||
Employee Compensation Stock | ||||
Marketing | 5,455 | 5,455 | ||
General and administrative | 30,313 | 148,417 | 37,509 | 148,417 |
Professional fees | 8,055 | 900 | 8,055 | |
Loss on disposal of assets | 1,712 | |||
Cost of legal proceedings | 13,275 | 7,267 | 13,275 | |
Litigation Expense | 3,763,200 | 3,763,200 | ||
Research and development | 9,000 | 9,000 | ||
Total operating expenses | 47,313 | 4,067,777 | 62,600 | 4,067,777 |
Loss from operations | (46,190) | (4,030,387) | (57,732) | (4,030,387) |
Other Income (Expenses) | ||||
Other Income | 3,408,636 | 3,408,930 | ||
Interest expense | (4,397) | (2,382) | (5,588) | (2,382) |
Interest income | ||||
Total other income (expenses) | 3,387,589 | (12,495) | 3,376,721 | (25,099) |
Net loss before income taxes | 3,341,399 | (167,988) | 3,318,989 | (4,055,486) |
Income taxes | ||||
Net loss | 3,341,399 | (167,988) | 3,318,989 | (4,055,486) |
Convertible Note 1-GHS [Member] | ||||
Other Income (Expenses) | ||||
Interest expense | (3,677) | (3,677) | ||
Convertible Note 2-GHS [Member] | ||||
Other Income (Expenses) | ||||
Interest expense | (1,075) | (4,504) | (2,966) | (4,504) |
Convertible Note 3-GHS [Member] | ||||
Other Income (Expenses) | ||||
Interest expense | (2,270) | (4,515) | (4,515) | (4,515) |
Convertible Note 4-GHS [Member] | ||||
Other Income (Expenses) | ||||
Interest expense | (2,271) | (4,518) | (4,518) | (4,518) |
Promissory Note 5-GHS [Member] | ||||
Other Income (Expenses) | ||||
Interest expense | (2,267) | (2,796) | (4,509) | (2,796) |
Promissory Note 6-GHS [Member] | ||||
Other Income (Expenses) | ||||
Interest expense | (6,406) | (6,406) | ||
Promissory Note-GHS [Member] | ||||
Other Income (Expenses) | ||||
Interest expense | (1,361) | (2,707) | (2,707) | (2,707) |
Promissory Note SBA Loan [Member] | ||||
Other Income (Expenses) | ||||
Interest expense | $ (1,000) | $ (1,000) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' (Deficit) Equity (Unaudited) - USD ($) | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Jun. 30, 2020 | $ 39,788 | $ 28,088,810 | $ (32,801,303) | $ (4,672,705) | |
Beginning balance, shares at Jun. 30, 2020 | 39,786,879 | ||||
Common stock issued for cash | $ 864 | 19,068 | 19,932 | ||
Common stock issued for cash, shares | 863,512 | ||||
Common stock issued for services | |||||
Common stock issued for services, shares | |||||
Common stock issued for officer compensation | |||||
Common stock issued for officer compensation, shares | |||||
Common stock issued for employee compensation | |||||
Common stock issued for employee compensation, shares | |||||
Common stock issued for Conversion on Note | $ 1,500 | 30,000 | 31,500 | ||
Common stock issued for Conversion on Note, shares | 1,500,000 | ||||
Net Loss | (167,988) | (167,988) | |||
Ending balance, value at Sep. 30, 2020 | $ 42,152 | 28,137,878 | (32,969,291) | (4,789,261) | |
Ending balance, shares at Sep. 30, 2020 | 42,150,391 | ||||
Common stock issued for cash | |||||
Common stock issued for cash, shares | |||||
Common stock issued for officer compensation | |||||
Common stock issued for officer compensation, shares | |||||
Common stock issued for employee compensation | |||||
Common stock issued for employee compensation, shares | |||||
Common stock issued for Conversion on Note | $ 3,500 | 39,611 | 43,111 | ||
Common stock issued for Conversion on Note, shares | 3,500,000 | ||||
Net Loss | (110,793) | (110,793) | |||
Ending balance, value at Dec. 31, 2020 | $ 45,652 | 28,177,489 | (33,080,084) | (4,856,943) | |
Ending balance, shares at Dec. 31, 2020 | 45,650,391 | ||||
Common stock issued for cash | |||||
Common stock issued for cash, shares | |||||
Common stock issued for officer compensation | |||||
Common stock issued for officer compensation, shares | |||||
Common stock issued for employee compensation | |||||
Common stock issued for employee compensation, shares | |||||
Common stock issued for Conversion on Note | $ 4,901 | 42,088 | 46,989 | ||
Common stock issued for Conversion on Note, shares | 4,901,575 | ||||
Net Loss | (216,894) | (216,894) | |||
Ending balance, value at Mar. 31, 2021 | $ 50,553 | 28,219,577 | (33,296,978) | (5,026,848) | |
Ending balance, shares at Mar. 31, 2021 | 50,551,966 | ||||
Common stock issued for cash | |||||
Common stock issued for cash, shares | |||||
Common stock issued for officer compensation | |||||
Common stock issued for officer compensation, shares | |||||
Common stock issued for employee compensation | |||||
Common stock issued for employee compensation, shares | |||||
Common stock issued for Conversion on Note | $ 2,300 | 25,875 | 28,175 | ||
Common stock issued for Conversion on Note, shares | 2,300,000 | ||||
Net Loss | (22,410) | (22,410) | |||
Ending balance, value at Jun. 30, 2021 | $ 52,853 | 28,245,452 | (33,319,388) | (5,021,083) | |
Ending balance, shares at Jun. 30, 2021 | 52,851,966 | ||||
Beginning balance, value at Mar. 31, 2021 | $ 50,553 | 28,219,577 | (33,296,978) | (5,026,848) | |
Beginning balance, shares at Mar. 31, 2021 | 50,551,966 | ||||
Net Loss | 3,318,989 | ||||
Ending balance, value at Sep. 30, 2021 | $ 52,853 | 28,245,452 | (29,977,989) | (1,679,684) | |
Ending balance, shares at Sep. 30, 2021 | 52,851,966 | ||||
Beginning balance, value at Jun. 30, 2021 | $ 52,853 | 28,245,452 | (33,319,388) | (5,021,083) | |
Beginning balance, shares at Jun. 30, 2021 | 52,851,966 | ||||
Common stock issued for cash | |||||
Common stock issued for cash, shares | |||||
Common stock issued for officer compensation | |||||
Common stock issued for officer compensation, shares | |||||
Common stock issued for employee compensation | |||||
Common stock issued for employee compensation, shares | |||||
Common stock issued for Conversion on Note | |||||
Common stock issued for Conversion on Note, shares | |||||
Net Loss | 3,341,399 | 3,341,399 | |||
Ending balance, value at Sep. 30, 2021 | $ 52,853 | $ 28,245,452 | $ (29,977,989) | $ (1,679,684) | |
Ending balance, shares at Sep. 30, 2021 | 52,851,966 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flow From Operating Activities: | ||
Net loss | $ 3,318,989 | $ (4,055,486) |
Adjustments to reconcile net loss to net cash from operating activities: | ||
Stock-based compensation | ||
Stock issued for services | ||
Intrinsic value of Conv Notes-Addtl Paid-in-Capital | ||
Depreciation and amortization | 1,539 | |
Changes in operating assets and liabilities: | ||
Increase/Decrease in deposits | ||
Increase/Decrease in prepaid expenses and other current assets | 13,305 | 2,989 |
Decrease/Increase in inventory | 5,077 | 27,257 |
Increase in other assets | ||
Increase in accrued settlement | (3,408,637) | 3,763,200 |
Increase in accounts payable | 50,435 | 168,814 |
Net Cash Used in Operating Activities | (20,831) | (91,687) |
Investing Activities: | ||
Purchases of property and equipment | 1,712 | |
Patent expenditures | ||
Net Cash Used in Investing Activities | 1,712 | |
Financing Activities: | ||
Proceeds from issuance of common stock | 28,175 | 60,524 |
Proceeds from notes payable- related party | ||
Proceeds from Convertible Notes | 31,500 | |
Intrinsic value of Conv Notes-Addtl Paid-in-Capital | ||
Repayment of advances from related party | ||
Net Cash Provided by Financing Activities | 28,175 | 92,024 |
Net Decrease in Cash | 9,056 | 337 |
Cash - Beginning of year | 16,161 | 30,723 |
Cash - End of year | $ 25,217 | $ 31,060 |
Organization and Nature of Oper
Organization and Nature of Operations | 6 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | Note 1 — Organization and Nature of Operations Earth Science Tech, Inc. (“ETST” or the “Company”) was incorporated under the laws of the State of Nevada on April 23, 2010. ETST has changed its immediate focus from researching and developing innovative hemp extracts and making them accessible worldwide; with plans to be a supplier of high quality hemp oil enriched with high-grade CBD. Its primary goal had been to advance different high quality hemp extracts with a broad profile of cannabinoids and additional natural molecules found in industrial hemp and to identify their distinct properties. Initially our missions were to educate the public on the many and varied nutritional and health benefits of CBD-rich hemp oil, to optimize purity in formulation, and to find new product delivery systems. With the decline in CBD sales due to the number of factors described in the Registrant’s periodic report filed with the SEC on Form 10-K for the period ending March 31, 2021, we determined that the most efficient means to increase shareholder value would be the acquisition of a complimentary business that would bring revenues sufficient to support its own operations but that would allow the business to expand and for the Company to rebuild its CBD business. The opportunity that the Company is currently pursuing is the acquisition of JBC Medical Equipment, Inc. together with RxCompoundStore.com, LLC and Peaks Curative, LLC. The acquisition of all three businesses would give the Company the ability to cross-sell among the businesses as well as our current customers. There are also some areas that have been identified in these companies that are at the point where the revenue levels are at a point where allocating minimal incremental expenses in certain product offerings should result in more significant increases in revenue and earnings. The corporate strategy currently is to develop the acquisition plan, structure and terms while the Company’s receivership is wound down so that when it emerges from receivership, it is in a position to execute on the planned acquisitions. As the Company assimilates the new businesses into its operations, it plans to work to raise additional capital necessary to expand on the existing operations and to capitalize on their synergistic opportunities that provide the greatest immediate return on investment (i.e. pick the low hanging fruit), then to continue capitalizing on the opportunities among the companies and to rebuild its CBD sales. Finally it plans to license its Hygee product to a third party, if it is able to negotiate terms that are acceptable. To design and produce CBD enhanced nutraceutical products for sale to the general public. We intend to create high-grade CBD-rich hemp oil and other CBD containing products unique to the current market in the nutraceuticals industry. We believe that our formulations will set us apart from competing products for promoting health. We have formulated and produced our initial CBD products, intended for, subject to performance, treating various symptoms of diseases and ailments or for overall health. The Company plans to expand manufacturing and marketing of these CBD products with expansion of products over the next five years. To offer a wide selection of health and nutrition products through online, clinics, pharmacies, and in-store retail. Through our wholly owned subsidiary, we plan to continue expanding retail sales of nutritional supplements through online, clinics, pharmacies, and in-store sales. Then with the acquisition of the compounding pharmacy, we will focus on men’s health as well as other areas. In particular, the Company plans to continue with plans to build a sterile facility so that injectable products may be compounded and sold. Our current product selection includes many high-quality supplement brands, and includes our proprietary CBD-rich hemp oil. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 — Summary of Significant Accounting Policies Basis of presentation The Company’s accounting policies used in the presentation of the accompanying consolidated financial statements conform to accounting principles generally accepted in the United States of America (“US GAAP”) and have been consistently applied. Principles of consolidation The accompanying consolidated financial statements include all of the accounts of the Company and its wholly-owned subsidiaries. The subsidiaries include Nutrition Empire, Inc., Cannabis Therapeutics, Inc. and Earth Science Pharmaceutical Inc. Earth Science Foundation, Inc. is a non-profit favored entity of the Company focused on developing its role as a world leader in the CBD space, expanding its work in the pharmaceutical and medical device sectors. Earth Science Pharmaceutical (“ESP”) is a wholly-owned subsidiary of ETST was committed to the development of low cost, non-invasive diagnostic tools, medical devices, testing processes and vaccines for sexually transmitted infections and/or diseases. ESP’s operations have been suspended while the Company restructures to maximize all efforts in the best interest to its shareholders. Cannabis Therapeutics (“CTI”) is a wholly-owned subsidiary of ETST poised to take a leadership role in the development of new, leading-edge cannabinoid-based pharmaceutical and nutraceutical products. CTI is invested in research and development to explore and harness the medicinal power of cannabidiol. The company is focused on developing treatments for breast and ovarian cancers, as well as two generic CBD based pharmaceutical drugs. Nutrition Empire Inc. (“NE”) was established in 2014 as a supplement retail store offering products such as; sports nutrition, at the time Earth Science Tech, Inc.’s High Grade CBD Oil and nutraceutical/bioceutical line. In early 2017 the Company decided to relinquish the retail store to allocate its capital and time to further pursue its successful industrial hemp CBD products through its growing wholesale accounts. Since the closing of Nutrition Empire in 2017, the wholly owned subsidiary has been dormant and kept for potential acquisitions or projects. Earth Science Foundation (“ESF”) is a favored entity of ETST, effectively being a non-profit organization on February 11, 2019 and is structured to accept grants and donations to conduct further studies and help donate ETST’s effective CBD products to those in need. All intercompany balances and transactions have been eliminated on consolidation. Use of estimates and assumptions The preparation of the 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 and the reported amounts of revenues and expenses during the reporting periods. The Company’s significant estimates and assumptions include the fair value of financial instruments; the accrual of the legal settlement, the carrying value recoverability and impairment, if any, of long-lived assets, including the estimated useful lives of fixed assets; the valuation allowance of deferred tax assets; stock based compensation, the valuation of the inventory reserves and the assumption that the Company will continue as a going concern. Those significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to those estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly reviews its estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such reviews, and if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. Carrying value, recoverability and impairment of long-lived assets The Company follows Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC’) 360 to evaluate its long-lived assets. The Company’s long-lived assets, which include property and equipment and a patent are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company assesses the recoverability of its long-lived assets by comparing the projected undiscounted net cash flows associated with the related long-lived asset or group of long-lived assets over their remaining estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives. The Company considers the following to be some examples of important indicators that may trigger an impairment review: (i) significant under-performance or losses of assets relative to expected historical or projected future operating results; (ii) significant changes in the manner or use of assets or in the Company’s overall strategy with respect to the manner or use of the acquired assets or changes in the Company’s overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; (v) a significant decline in the Company’s stock price for a sustained period of time; and (vi) regulatory changes. The Company evaluates assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events. Impairment of changes, if any, are included in operating expenses. On June 4, 2019 the Company discontinued its patents based upon the advice of IP counsel. IP counsel indicated that only one patent application had a reasonable chance of being granted and based upon this advice the Company determined that it would discontinue this approach of using the patent process to protect product formulations in general and rather, revert to proprietary formulae and trade secrets to protect its intellectual property (unless it was clear from the beginning of the process that the formula was patentable. As a result, on June 4, 2019, the company wrote down or otherwise impaired approximately $ 27,000 Cash and cash equivalents The Company considers all highly liquid investments with a maturity of three months or less to be cash and cash equivalents. Related parties The Company follows ASC 850 for the identification of related parties and disclosure of related party transactions. Pursuant to this ASC related parties include a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825-10-15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. Commitments and contingencies The Company follows ASC 450 to account for contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. This may result in contingent liabilities that are required to be accrued or disclosed in the financial statements. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. Revenue recognition The Company follows and implemented ASC 606, Revenue from Contracts with Customers for revenue recognition. Although the new revenue standard is expected to have an immaterial effect, if any, on our ongoing net income, we did implement changes to our processes related to revenue recognition and the control activities within them. These included the development of new policies based on the five-step model provided in the new revenue standard, ongoing contract review requirements, and gathering of information provided for disclosures. The Company recognizes revenue from product sales or services rendered when control of the promised goods are transferred to our clients in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods and services. To achieve this core principle, we apply the following five steps: identify the contract with the client, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to performance obligations in the contract and recognize revenues when or as the Company satisfies a performance obligation. The Company recognizes its retail store revenue at point of sale, net of sales tax. Inventories Inventories consist of various types of nutraceuticals and bioceuticals at the Company’s retail store and main office. Inventories are stated at the lower of cost or market using the first in, first out (FIFO) method. A reserve is established if necessary to reduce excess or obsolete inventories to their net realizable value. Cost of Sales Components of costs of sales include product costs, shipping costs to customers and any inventory adjustments. Shipping and Handling Costs The Company includes shipping and handling fees billed to customers as revenues and shipping and handling costs for shipments to customers as cost of revenues. Research and development Research and development costs are expensed as incurred. The Company’s research and development expenses relate to its engineering activities, which consist of the design and development of new products for specific customers, as well as the design and engineering of new or redesigned products for the industry in general. Income taxes The Company follows ASC 740 in accounting for income taxes. Deferred tax assets and liabilities are determined based on the estimated future tax effects of net operating loss carry forwards and temporary differences between the tax bases of assets and liabilities and their respective financial reporting amounts measured at the current enacted tax rates. The Company records a valuation allowance for its deferred tax assets when management concludes that it is no The Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. As of March 31, 2019, the Company has not recorded any unrecognized tax benefits. Interest and penalties related to liabilities for uncertain tax positions will be charged to interest and operating expenses, respectively. The Company has net operating loss carry forwards (NOL) for income tax purposes of approximately $ 6,150,613 the year 2039 when the NOL’s will expire. 0 0 Internal Revenue Code Section 382 (“Section 382”) imposes limitations on the availability of a company’s net operating losses after certain ownership changes occur. The Section 382 limitation is based upon certain conclusions pertaining to the dates of ownership changes and the value of the Company on the dates of the ownership changes. It was determined that an ownership change occurred in October 2013 and March 2014. The amount of the Company’s net operating losses incurred prior to the ownership changes are limited based on the value of the Company on the date of the ownership change. Management has not determined the amount of net operating losses generated prior to the ownership change available to offset taxable income subsequent to the ownership change. Net loss per common share The Company follows ASC 260 to account for earnings per share. Basic earnings per common share calculations are determined by dividing net results from operations by the weighted average number of shares of common stock outstanding during the year. Diluted loss per common share calculations are determined by dividing net results from operations by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation. As of September 30, 2021 the Company has no warrants that are anti-dilutive and not included in the calculation of diluted loss per share. Cash flows reporting The Company follows ASC 230 to report cash flows. This standard classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (“Indirect method”) as defined by this standard to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments. The Company reports separately information about investing and financing activities not resulting in cash receipts or payments in the period pursuant this standard. Stock based compensation The Company follows ASC 718 in accounting for its stock-based compensation to employees. This standard states that compensation cost is measured at the grant date based on the fair value of the award and is recognized over the service period, which is usually the vesting period. The Company values stock-based compensation at the market price of the Company’s common stock as of the date in which the obligation for payment of service is incurred. The Company accounts for transactions in which service are received from non-employees in exchange for equity instruments based on the fair value of the equity instrument exchanged in accordance with ASC 505-50. Property and equipment Property and equipment is recorded at cost net of accumulated depreciation. Depreciation is computed using the straight-line method based upon the estimated useful lives of the respective assets as follows: Schedule of Property and Equipment Estimated Useful Lives Leasehold improvements Shorter of useful life or term of lease Signage 5 Furniture and equipment 5 Computer equipment 5 The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from accounts and any resulting gains or losses are included in operations. Recently issued accounting pronouncements In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, Classification of Certain Cash Receipts and Cash Payments In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation – Stock Compensation In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers. This guidance will supersede Topic 605, Revenue Recognition, in addition to other industry-specific guidance, once effective. The new standard requires a company to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, as a revision to ASU 2014-09, which revised the effective date to fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted but not prior to periods beginning after December 15, 2016 (i.e., the original adoption date per ASU 2014-09). In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations, which clarifies certain aspects of the principal- versus-agent guidance, including how an entity should identify the unit of accounting for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements, such as service transactions. The amendments also reframe the indicators to focus on evidence that an entity is acting as a principal rather than as an agent. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, which clarifies how an entity should evaluate the nature of its promise in granting a license of intellectual property, which will determine whether it recognizes revenue over time or at a point in time. The amendments also clarify when a promised good or service is separately identifiable (i.e., distinct within the context of the contract) and allow entities to disregard items that are immaterial in the context of a contract. The Company continues to assess the impact this new standard may have on its ongoing financial reporting. The Company has identified its revenue streams both by contract and product type and is assessing each for potential impacts. For the revenue streams assessed, the Company does not anticipate a material impact in the timing or amount of revenue recognized. In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles-Goodwill and Other, which simplifies the accounting for goodwill impairments by eliminating step 2 from the goodwill impairment test. Instead, if “the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit.” The guidance is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact the adoption of this new standard will have on its Consolidated Financial Statements. All other newly issued accounting pronouncements not yet effective have been deemed either immaterial or not applicable. Intangible Assets In October 2014, the Company acquired a patent that is being amortized over its useful life of fifteen years in accordance with ASC 350, “Intangibles - Goodwill and Other”. The Company purchased the patent through a cash payment of $ 25,000 26,528 0 38,740 4,406 4,406 34,334 Reclassification Certain amounts from the prior period have been reclassified to conform to the current period presentation. |
Going Concern
Going Concern | 6 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | Note 3 — Going Concern The accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. At September 30, 2021, the Company had negative working capital, an accumulated deficit of $ 29,977,989 and was in negotiations to extend the maturity date on notes payable that are in default. These factors raise substantial doubt about the Company’s ability to continue as a going concern. While the Company is attempting to generate sufficient revenues, the Company’s cash position may not be sufficient to pay its obligations and support the Company’s daily operations. Management intends to raise additional funds by way of a public or private offering. Management believes that the actions presently being taken to further implement its business plan and generate sufficient revenues may provide the opportunity for the Company to continue as a going concern. While the Company believes in the viability of its strategy to generate sufficient revenues and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate sufficient revenues. The condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. |
Related Party Balances and Tran
Related Party Balances and Transactions | 6 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Balances and Transactions | Note 4 - Related Party Balances and Transactions Kannabidioid, Inc. is currently in development stage and has had no related party revenue from Earth Science Tech, Inc. for the three months ended September 30, 2021. On January 11, 2019, Robert Stevens was appointed by the Nevada District Court as Receiver for the Company in Case No. A-18-784952-C. As approved by the Nevada District Court, Strongbow Advisors, Inc., an entity controlled by Robert Stevens (“Strongbow”), is compensated at a rate of $ 400 per hour for his services as the Company’s Receiver. During the three months ended September 30, 2021, $ 0 has been paid to Strongbow as compensation for Mr. Stevens’ services as the Company’s Receiver, this is due to the judge ordering the Receiver not being allowed to compensate Strongbow Advisors, Inc. throughout the intervenor litigation that subsequently led to Robert Steves being discharged an ordered out of the Company on August 27, 2021 (See Note 6 Commitments and Contingencies, Legal Proceedings). |
Stockholders_ Equity
Stockholders’ Equity | 6 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Stockholders’ Equity | Note 5 – Stockholders’ Equity During the three months ended September 30, 2021 and 2020, the Company issued 0 and 863,512 common shares for an aggregate of $ 0 and $ 19,932 respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 6 — Commitments and Contingencies Legal Proceedings On January 11, 2019, the Company received notice that Strongbow Advisors, Inc. and Robert Stevens (“Stevens”, and together with Strongbow, the “Receiver”) had been appointed by the Nevada District Court, as Receiver for the Registrant in Case No. A-18-784952-C (the “Order). The Company sought the appointment of the Receiver after it found itself in an imminent danger of insolvency following the issuance by an arbitration panel of an award (the “Award”) in the sum of $ 3,994,522 The Award consisted of a sum for breach of contract against the Company in the amount of $ 120,265 111,057 3,763,200 The Cromogen Litigation has been settled under an agreement that provides for monthly payments beginning after the first of the year in January 2022. The settlement agreement contains a significant increase in the amount due from $ 450,000 As part of the impact of the receivership, the Court issued a Writ of Injunction or “Blanket Stay” covering the Company and its assets during the time that the Company is in receivership. As a result of the “Blanket Stay” the Company’s estate is protected from creditors and interference with its administration is prevented while the Company’s financial issues are being fully analyzed and resolved. As part of this process, creditors will be notified and required to provide claims in writing under oath on or before the deadline stated in the notice provided by the Receiver or those claims will be barred under NRS §78.675. The Blanket Stay will remain in place unless otherwise waived by the Receiver, or it is vacated by the Court or alternatively, lifted by the Court, upon a “motion to lift stay” duly made and approved by the Nevada District Court. On November 7, 2019 the Receiver for Earth Science Tech, Inc., a Nevada corporation (the “Company”) filed a motion for preliminary injunction against Majorca Group Ltd. in the 8th Judicial District in Clark County, Nevada. The filing requests a show cause hearing whereby the Company will request the Court grants it motion to cancel certain shares and class of stock and to nullify certain amendments of the Articles of Incorporation. Specifically, the Company is asking that Majorca Group Ltd. be restricted from selling, transferring, converting, encumbering, hypothecating, obtaining loans against or in any fashion or in any way transferring their shares of common and preferred stock in the Company. Additionally the motion seeks a Freezing Injunction over any broker, bank, any financial institution, attorney, or agent holding shares of the Company as well as any proceeds from shares of the Company. On January 27, 2020 Earth Science Tech, Inc., a Nevada corporation (the “Company”) reached a confidential settlement with Majorca Group, Ltd (“Majorca”). The Receiver will withdraw its motion for injunction over the Majorca common and preferred shares. The Settlement Agreement provides that Majorca Group, Ltd. and all relevant parties will, within 10 days of execution of the settlement agreement, return 18,000,000 common shares and 5,200,000 Series A Preferred Stock held by Majorca for cancellation. The Series A Preferred Stock class will be cancelled completely. The remaining 6,520,000 common shares held by Majorca is subject to lockup agreement and thereafter, sales will be made only pursuant to a limited strict bleed-out agreement administered by a third party. On January 19, 2021, one of the Company’s largest shareholders served and filed a notice of motion and motion to intervene against Robert L. Stevens and Strongbow Advisors, Inc. (individually or collectively referred to as “Receiver”) this action was later joined by additional shareholders representing approximately 33% of the issued and outstanding shares of the Company at that time. This motion to intervene, at its heart, was based upon and resulted from, what the interveners saw as, a lack of transparency by the Receiver. What was filed was initially based upon concerns of Mr. Stevens’ lack of transparency. However as the matter progressed in court, additional concerns have arisen and on August 27, 2021, Stevens and Strongbow were discharged and removed and William Leonard was appointed to replace them as Receiver, by the Nevada District Court. Mr. Leonard is currently reviewing various matters, including past invoices presented by Stevens, as well as his conduct during the time he acted as Receiver for the Company as well as others that the prior Receiver had a prior relationship with that have derived benefits from working with the prior Receiver. The outcome of this review is uncertain at this time and a wide number of outcomes is possible. The Company is now optimistic that it will be able to emerge from receivership under the new receiver, in a reorganized position that will allow it to proceed with the acquisitions of the three entities. Combined, these entities present a larger opportunity to realize the synergies that they have among themselves and in so doing, the Company believes it will be possible for shareholder value to increase at a faster rate than would otherwise be possible with only its CBD business and licensing of its medical device, Hygee, The Company has executed a joint letter of intent with three entities involved in the durable medical equipment, retail sales and compounding pharmacy businesses with the objective of negotiating the final terms of a transaction that will result in the Company’s acquisition of these entities. On August 30, 2021, the Company reached a settlement with Cromogen for $ 585,885 in a month to month payment plan starting January 1, 2022, having the initial payment of $45,000 and $10,000 each month followed with the final payment set on December 1, 2026. If the Company is able to and decides to pay the settlement entirely prior to January 1, 2022 commencement, a $85,885 reduction will take place having the settlement be $500,000. If the Company defaults on Cromogen’s settlement, a confession of judgement will be executed for the amount of $970,000, representing the total amount of Cromogen’s unsecured claims, less any amount paid by the Company, plus costs and attorney fees incurred to obtain the enforce of judgement. Following the discharge and removal of Robert L. Stevens and Strongbow Advisors, Inc., the successor Receiver, William A Leonard, Jr., of Crisis Management, Inc., undertook the investigation of the former receiver’s actions, practices , and alleged fees. The successor receiver then issued his report evaluating Mr. Stevens alleged fees and found that no outstanding fees are due. The court has set to an evidentiary hearing scheduled for mid January 2022 to consider the successor receivers conclusions as well as the former receiver’s potential liabilities to the Company. Lease Agreements On August 30, 2021, the Company entered into an agreement with JCR Medical Equipment, Inc., a Florida Corporation to lease a 1,000 square foot facility consisting of office and warehouse space out of its 13,000 /sq. ft. facility located at 10650 NW 29th Terrace Doral, FL 33172. JCR Medical Equipment, Inc. is part of the Company’s filed September 10, 2021 8-K dual acquisition LOI and partner of RxCompoundStore.com, LLC. acquisition filed on November 8, 2021 8-K. |
Balance Sheet and Income Statem
Balance Sheet and Income Statement Footnotes | 6 Months Ended |
Sep. 30, 2021 | |
Balance Sheet And Income Statement Footnotes | |
Balance Sheet and Income Statement Footnotes | Note 7 — Balance Sheet and Income Statement Footnotes A c 101,404 . The Company used an allowance of 40 % of receivables over 90 days to charge bad debt expense. As of September 30, 2021, ROU Asset was $ 0 and Lease Liability-Current was $ 0 . Accounts payable are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities Accrued expenses of $ 250,605 as of September 30, 2021 mainly represent, $ 135,000 of accrued payroll for Michele Aube, $ 74,000 in payroll and $ 8,000 in reimbursements for Nickolas S. Tabraue, and the remainder for of accrued interest on related Notes Payable.. General and administrative expenses were $ 30,313 and $ 74,020 for September 30, 2021 and 2020 respectively. For the three months ended September 30, 2021, the majority comprised was for the Company’s year end audit and for the period ending quarter June 30, 2021 review. Professional fees were $ 0 for the three months ended September 30, 2021. Legal expenses were $ 7,500 for the three months ended September 30, 2021. Research and development were $ 0 for the three months ended September 30, 2021. Interest expense was $ (21,047) and $ (12,495) for three months ended September 30, 2021 and 2020. Interest expense for three months ended September 30, 2020 was mainly due to Convertible Notes-GHS. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 8 — Subsequent Events On November 3, 2021, the Company entered into a definitive agreement to acquire both RxCompoundStore.com, LLC (“RxCompound”) and Peaks Curative, LLC (“Peaks”) (collectively, the “Companies”). The acquisition of these two companies is Phase I of its roll-up plan which involves driving immediate revenue through the compounding pharmacy with a focus on men’s health. The Company first announced its acquisition plans earlier in its Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission (“SEC” or the “Commission”) on September 10, 2021. About RxComponundStore.com, LLC and Peaks Curative, LLC RxCompound is a compounding pharmacy licensed in the States of New York and Florida and registered with the Drug Enforcement Agency (“DEA”) to sell Schedules II and III controlled medications. RxCompound has focused on men’s health, specifically medical products directed at treating erectile dysfunction (“ED”) such as Tadalafil, and Sildenafil Citrate (generic names for Cialis and Viagra, respectively) and others, compounded into capsules, tablets. Its flagship product(s) are a proprietary formulation for men’s ED medications in the form of gummies. Currently RxCompound is not certified for and does not have sterile facilities that would allow it to offer medications that can be injected such as testosterone, HCG, TriMix or peptides. However, it was planning on becoming a sterile compounding pharmacy and was working toward it when the Company entered into the definitive agreement to acquire RxCompound. The timing was ideal because the Company was able to acquire RxCompound for significantly less than it would have been valued at if it already had a sterile certified facility while at the same time being very close to it and having the plan and path established and ready to implement. RxCompound will work with Peaks to fill prescriptions for the customers that Peaks refers. RxCompound will be able to expand by seeking licenses as a pharmacy in additional states and plans to work with Peaks in determining which states represent the opportunities and in order of priority. Peaks was established as a marketing company that markets men’s ED products, however the Company plans to expand the products offered that RxCompound can prepare and sell. Peaks is what is known as a telemedicine referral site facilitating asynchronous consultations for branded compound medications prepared at RxCompound. For Example, men that respond to ads for ED gummies are referred to licensed medical professionals who determine by questionnaires completed by the potential patient. By the answers provided, the doctor determines if they can: safely take the medication and meet the requirements; and if so, the doctor will send in a prescription to RxCompound who will fill it and send the gummies to the customer/patient. Since RxCompound is only licensed in Florida and New York, Peaks will not target its efforts in other states unless it establishes a referring relationship with pharmacies in other states where RxCompound does not intend to seek licensure as a compounding pharmacy. As RxCompound expands the products it wants to focus on, Peaks will develop campaigns to drive sales in those products. General Terms of the Acquisitions RxCompound and Peaks are both Florida limited liability companies that have their equity ownership structured as units or membership units. Although the acquisitions were negotiated at arms’ length and both the Company and the owner of the membership units of RxCompound and Peaks had separate counsel, since the owner, Mario Tabraue, is the brother of Nickolas Tabraue, our CEO and a member of our board of directors, Nickolas Tabraue abstained from voting on the resolution of the board of directors that approved these transactions. Upon closing RxCompound and Peaks will both be wholly owned subsidiaries of the Company. The agreement among the parties provides that the Company acquires all of the membership units of both companies in exchange for $ 300,000 in cash and 3,000,000 the agreement provides that the cash portion of the consideration provided by the Company will be paid as the Company receives proceeds from its financing efforts on a dollar for dollar basis. That is, for every $2.00 received by the Company in financing, whether debt or equity, the Company will pay $1.00 toward the $ 300,000 Notwithstanding the “dollar for dollar” payment requirement, there is a provision that allows Mario Tabraue to defer and not accept any payment(s) if he determines, in his discretion, that there is a greater need for it by RxCompound, Peaks or the Company. Finally, under the terms of the agreement, Mario Tabraue is named as a member of the Company’s board of directors to fill a vacancy thereon and appointed as the President of the Company. He will continue to serve as President of RxCompound and Peaks while in escrow and following closing. On November 3, 2021, in accordance with the terms of the acquisition agreement referred to in Item 1.01 above, the Company’s Board of Directors appointed Mario G. Tabraue to fill a vacancy thereon. He will serve as a member of the board of directors until his earlier resignation, removal or incapacity. In addition, under the terms of the same agreement, Mario Tabraue was appointed to serve as the President of the Company, to serve until his earlier resignation or removal and will continue to serve as president of both RxCompoundstore.com, LLC. and Peaks Curative, LLC while the membership units of both are in escrow and following closing, when both are wholly owned subsidiaries. (Nickolas Tabraue will continue to serve as CEO of the Company). Mario Tabraue |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The Company’s accounting policies used in the presentation of the accompanying consolidated financial statements conform to accounting principles generally accepted in the United States of America (“US GAAP”) and have been consistently applied. |
Principles of consolidation | Principles of consolidation The accompanying consolidated financial statements include all of the accounts of the Company and its wholly-owned subsidiaries. The subsidiaries include Nutrition Empire, Inc., Cannabis Therapeutics, Inc. and Earth Science Pharmaceutical Inc. Earth Science Foundation, Inc. is a non-profit favored entity of the Company focused on developing its role as a world leader in the CBD space, expanding its work in the pharmaceutical and medical device sectors. Earth Science Pharmaceutical (“ESP”) is a wholly-owned subsidiary of ETST was committed to the development of low cost, non-invasive diagnostic tools, medical devices, testing processes and vaccines for sexually transmitted infections and/or diseases. ESP’s operations have been suspended while the Company restructures to maximize all efforts in the best interest to its shareholders. Cannabis Therapeutics (“CTI”) is a wholly-owned subsidiary of ETST poised to take a leadership role in the development of new, leading-edge cannabinoid-based pharmaceutical and nutraceutical products. CTI is invested in research and development to explore and harness the medicinal power of cannabidiol. The company is focused on developing treatments for breast and ovarian cancers, as well as two generic CBD based pharmaceutical drugs. Nutrition Empire Inc. (“NE”) was established in 2014 as a supplement retail store offering products such as; sports nutrition, at the time Earth Science Tech, Inc.’s High Grade CBD Oil and nutraceutical/bioceutical line. In early 2017 the Company decided to relinquish the retail store to allocate its capital and time to further pursue its successful industrial hemp CBD products through its growing wholesale accounts. Since the closing of Nutrition Empire in 2017, the wholly owned subsidiary has been dormant and kept for potential acquisitions or projects. Earth Science Foundation (“ESF”) is a favored entity of ETST, effectively being a non-profit organization on February 11, 2019 and is structured to accept grants and donations to conduct further studies and help donate ETST’s effective CBD products to those in need. All intercompany balances and transactions have been eliminated on consolidation. |
Use of estimates and assumptions | Use of estimates and assumptions The preparation of the 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 and the reported amounts of revenues and expenses during the reporting periods. The Company’s significant estimates and assumptions include the fair value of financial instruments; the accrual of the legal settlement, the carrying value recoverability and impairment, if any, of long-lived assets, including the estimated useful lives of fixed assets; the valuation allowance of deferred tax assets; stock based compensation, the valuation of the inventory reserves and the assumption that the Company will continue as a going concern. Those significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to those estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly reviews its estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such reviews, and if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. |
Carrying value, recoverability and impairment of long-lived assets | Carrying value, recoverability and impairment of long-lived assets The Company follows Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC’) 360 to evaluate its long-lived assets. The Company’s long-lived assets, which include property and equipment and a patent are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company assesses the recoverability of its long-lived assets by comparing the projected undiscounted net cash flows associated with the related long-lived asset or group of long-lived assets over their remaining estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives. The Company considers the following to be some examples of important indicators that may trigger an impairment review: (i) significant under-performance or losses of assets relative to expected historical or projected future operating results; (ii) significant changes in the manner or use of assets or in the Company’s overall strategy with respect to the manner or use of the acquired assets or changes in the Company’s overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; (v) a significant decline in the Company’s stock price for a sustained period of time; and (vi) regulatory changes. The Company evaluates assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events. Impairment of changes, if any, are included in operating expenses. On June 4, 2019 the Company discontinued its patents based upon the advice of IP counsel. IP counsel indicated that only one patent application had a reasonable chance of being granted and based upon this advice the Company determined that it would discontinue this approach of using the patent process to protect product formulations in general and rather, revert to proprietary formulae and trade secrets to protect its intellectual property (unless it was clear from the beginning of the process that the formula was patentable. As a result, on June 4, 2019, the company wrote down or otherwise impaired approximately $ 27,000 |
Cash and cash equivalents | Cash and cash equivalents The Company considers all highly liquid investments with a maturity of three months or less to be cash and cash equivalents. |
Related parties | Related parties The Company follows ASC 850 for the identification of related parties and disclosure of related party transactions. Pursuant to this ASC related parties include a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825-10-15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. |
Commitments and contingencies | Commitments and contingencies The Company follows ASC 450 to account for contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. This may result in contingent liabilities that are required to be accrued or disclosed in the financial statements. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. |
Revenue recognition | Revenue recognition The Company follows and implemented ASC 606, Revenue from Contracts with Customers for revenue recognition. Although the new revenue standard is expected to have an immaterial effect, if any, on our ongoing net income, we did implement changes to our processes related to revenue recognition and the control activities within them. These included the development of new policies based on the five-step model provided in the new revenue standard, ongoing contract review requirements, and gathering of information provided for disclosures. The Company recognizes revenue from product sales or services rendered when control of the promised goods are transferred to our clients in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods and services. To achieve this core principle, we apply the following five steps: identify the contract with the client, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to performance obligations in the contract and recognize revenues when or as the Company satisfies a performance obligation. The Company recognizes its retail store revenue at point of sale, net of sales tax. |
Inventories | Inventories Inventories consist of various types of nutraceuticals and bioceuticals at the Company’s retail store and main office. Inventories are stated at the lower of cost or market using the first in, first out (FIFO) method. A reserve is established if necessary to reduce excess or obsolete inventories to their net realizable value. |
Cost of Sales | Cost of Sales Components of costs of sales include product costs, shipping costs to customers and any inventory adjustments. |
Shipping and Handling Costs | Shipping and Handling Costs The Company includes shipping and handling fees billed to customers as revenues and shipping and handling costs for shipments to customers as cost of revenues. |
Research and development | Research and development Research and development costs are expensed as incurred. The Company’s research and development expenses relate to its engineering activities, which consist of the design and development of new products for specific customers, as well as the design and engineering of new or redesigned products for the industry in general. |
Income taxes | Income taxes The Company follows ASC 740 in accounting for income taxes. Deferred tax assets and liabilities are determined based on the estimated future tax effects of net operating loss carry forwards and temporary differences between the tax bases of assets and liabilities and their respective financial reporting amounts measured at the current enacted tax rates. The Company records a valuation allowance for its deferred tax assets when management concludes that it is no The Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. As of March 31, 2019, the Company has not recorded any unrecognized tax benefits. Interest and penalties related to liabilities for uncertain tax positions will be charged to interest and operating expenses, respectively. The Company has net operating loss carry forwards (NOL) for income tax purposes of approximately $ 6,150,613 the year 2039 when the NOL’s will expire. 0 0 Internal Revenue Code Section 382 (“Section 382”) imposes limitations on the availability of a company’s net operating losses after certain ownership changes occur. The Section 382 limitation is based upon certain conclusions pertaining to the dates of ownership changes and the value of the Company on the dates of the ownership changes. It was determined that an ownership change occurred in October 2013 and March 2014. The amount of the Company’s net operating losses incurred prior to the ownership changes are limited based on the value of the Company on the date of the ownership change. Management has not determined the amount of net operating losses generated prior to the ownership change available to offset taxable income subsequent to the ownership change. |
Net loss per common share | Net loss per common share The Company follows ASC 260 to account for earnings per share. Basic earnings per common share calculations are determined by dividing net results from operations by the weighted average number of shares of common stock outstanding during the year. Diluted loss per common share calculations are determined by dividing net results from operations by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation. As of September 30, 2021 the Company has no warrants that are anti-dilutive and not included in the calculation of diluted loss per share. |
Cash flows reporting | Cash flows reporting The Company follows ASC 230 to report cash flows. This standard classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (“Indirect method”) as defined by this standard to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments. The Company reports separately information about investing and financing activities not resulting in cash receipts or payments in the period pursuant this standard. |
Stock based compensation | Stock based compensation The Company follows ASC 718 in accounting for its stock-based compensation to employees. This standard states that compensation cost is measured at the grant date based on the fair value of the award and is recognized over the service period, which is usually the vesting period. The Company values stock-based compensation at the market price of the Company’s common stock as of the date in which the obligation for payment of service is incurred. The Company accounts for transactions in which service are received from non-employees in exchange for equity instruments based on the fair value of the equity instrument exchanged in accordance with ASC 505-50. |
Property and equipment | Property and equipment Property and equipment is recorded at cost net of accumulated depreciation. Depreciation is computed using the straight-line method based upon the estimated useful lives of the respective assets as follows: Schedule of Property and Equipment Estimated Useful Lives Leasehold improvements Shorter of useful life or term of lease Signage 5 Furniture and equipment 5 Computer equipment 5 The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from accounts and any resulting gains or losses are included in operations. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, Classification of Certain Cash Receipts and Cash Payments In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation – Stock Compensation In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers. This guidance will supersede Topic 605, Revenue Recognition, in addition to other industry-specific guidance, once effective. The new standard requires a company to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, as a revision to ASU 2014-09, which revised the effective date to fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted but not prior to periods beginning after December 15, 2016 (i.e., the original adoption date per ASU 2014-09). In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations, which clarifies certain aspects of the principal- versus-agent guidance, including how an entity should identify the unit of accounting for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements, such as service transactions. The amendments also reframe the indicators to focus on evidence that an entity is acting as a principal rather than as an agent. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, which clarifies how an entity should evaluate the nature of its promise in granting a license of intellectual property, which will determine whether it recognizes revenue over time or at a point in time. The amendments also clarify when a promised good or service is separately identifiable (i.e., distinct within the context of the contract) and allow entities to disregard items that are immaterial in the context of a contract. The Company continues to assess the impact this new standard may have on its ongoing financial reporting. The Company has identified its revenue streams both by contract and product type and is assessing each for potential impacts. For the revenue streams assessed, the Company does not anticipate a material impact in the timing or amount of revenue recognized. In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles-Goodwill and Other, which simplifies the accounting for goodwill impairments by eliminating step 2 from the goodwill impairment test. Instead, if “the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit.” The guidance is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact the adoption of this new standard will have on its Consolidated Financial Statements. All other newly issued accounting pronouncements not yet effective have been deemed either immaterial or not applicable. |
Intangible Assets | Intangible Assets In October 2014, the Company acquired a patent that is being amortized over its useful life of fifteen years in accordance with ASC 350, “Intangibles - Goodwill and Other”. The Company purchased the patent through a cash payment of $ 25,000 26,528 0 38,740 4,406 4,406 34,334 |
Reclassification | Reclassification Certain amounts from the prior period have been reclassified to conform to the current period presentation. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment Estimated Useful Lives | Property and equipment is recorded at cost net of accumulated depreciation. Depreciation is computed using the straight-line method based upon the estimated useful lives of the respective assets as follows: Schedule of Property and Equipment Estimated Useful Lives Leasehold improvements Shorter of useful life or term of lease Signage 5 Furniture and equipment 5 Computer equipment 5 |
Schedule of Property and Equipm
Schedule of Property and Equipment Estimated Useful Lives (Details) | 6 Months Ended |
Sep. 30, 2021 | |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Estimated Useful Lives | Shorter of useful life or term of lease |
Signage [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Useful Life | 5 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Useful Life | 5 years |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Useful Life | 5 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Jun. 04, 2019 | Oct. 31, 2014 | Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment of legal fees | $ 27,000 | ||||||
Unrecognized tax benefits | $ 0 | ||||||
Net operating loss carry forwards | $ 6,150,613 | ||||||
Net operating loss carry forwards expiration date | the year 2039 when the NOL’s will expire. | ||||||
Change in the valuation allowance | $ 0 | $ 0 | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | ||||||
Payments to acquire patents | |||||||
Capitalized patent fees | $ 26,528 | ||||||
Accumulated amortizations | 0 | 38,740 | |||||
Amortization expense | 4,406 | $ 4,406 | |||||
Patent impairment expenses | $ 34,334 | ||||||
Patents [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Payments to acquire patents | $ 25,000 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | Sep. 30, 2021 | Mar. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Retained Earnings (Accumulated Deficit) | $ 29,977,989 | $ 33,296,978 |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Details Narrative) - USD ($) | Jan. 11, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Related Party Transaction [Line Items] | |||||
Professional Fees | $ 8,055 | $ 900 | $ 8,055 | ||
Mr. Stevens [Member] | |||||
Related Party Transaction [Line Items] | |||||
Compensation expenses | $ 0 | ||||
Kannabidioid, Inc [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue from Related Parties | $ 0 | ||||
Strongbow Advisors, Inc. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Professional Fees | $ 400 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - USD ($) | 3 Months Ended | ||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Stock Issued During Period, Value, New Issues | $ 19,932 | ||||
Common Stock [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Stock Issued During Period, Shares, New Issues | 0 | 863,512 | |||
Stock Issued During Period, Value, New Issues | $ 0 | $ 19,932 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) | Aug. 31, 2021USD ($) | Jan. 27, 2020 | Jan. 11, 2019USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Aug. 30, 2021ft² |
Litigation settlement amount | $ 3,763,200 | $ 3,763,200 | ||||||
Cromongen Biotechnology Corporation [Member] | ||||||||
Loss contingency, damages sought, value | $ 3,994,522 | |||||||
Breach of contract amount | 120,265 | |||||||
Costs and fees amount | 111,057 | |||||||
Conversion value | $ 3,763,200 | |||||||
Litigation settlement amount | $ 585,885 | $ 450,000 | ||||||
Settlement description | On August 30, 2021, the Company reached a settlement with Cromogen for $ | |||||||
Majorca Group, Ltd [Member] | ||||||||
Description of confidential settlement | On January 27, 2020 Earth Science Tech, Inc., a Nevada corporation (the “Company”) reached a confidential settlement with Majorca Group, Ltd (“Majorca”). The Receiver will withdraw its motion for injunction over the Majorca common and preferred shares. The Settlement Agreement provides that Majorca Group, Ltd. and all relevant parties will, within 10 days of execution of the settlement agreement, return 18,000,000 common shares and 5,200,000 Series A Preferred Stock held by Majorca for cancellation. The Series A Preferred Stock class will be cancelled completely. The remaining 6,520,000 common shares held by Majorca is subject to lockup agreement and thereafter, sales will be made only pursuant to a limited strict bleed-out agreement administered by a third party. | |||||||
JCR Medical Equipment Inc [Member] | ||||||||
Area of Land | ft² | 13,000 |
Balance Sheet and Income Stat_2
Balance Sheet and Income Statement Footnotes (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2021 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Accounts Receivable, Allowance for Credit Loss, Current | $ 101,404 | $ 101,404 | $ 101,404 | ||
Accounts receivable percentage | 40.00% | ||||
Operating Lease, Right-of-Use Asset | 12,653 | ||||
Operating Lease, Liability, Current | 12,653 | ||||
Accrued Liabilities, Current | 250,605 | 250,605 | $ 234,319 | ||
Other General and Administrative Expense | 30,313 | $ 74,020 | |||
Professional Fees | $ 8,055 | 900 | 8,055 | ||
Legal Fees | 7,500 | ||||
Research and Development Expense | 9,000 | $ 9,000 | |||
Interest Expense | (21,047) | $ (12,495) | |||
Michele Aube [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Accrued Payroll Taxes, Current | 135,000 | 135,000 | |||
Nickolas S Tabraue [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Accrued Payroll Taxes, Current | 74,000 | 74,000 | |||
Accrued Employee Benefits, Current | $ 8,000 | $ 8,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) | 6 Months Ended |
Sep. 30, 2021USD ($)shares | |
Restructuring Cost and Reserve [Line Items] | |
Cash acquired from acquisition | $ 300,000 |
Acquisition of common stock shares | shares | 3,000,000 |
Cash Acquired in Excess of Payments to Acquire Business | $ 300,000 |
Series of Individually Immaterial Business Acquisitions [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Business combination consideration, description | the agreement provides that the cash portion of the consideration provided by the Company will be paid as the Company receives proceeds from its financing efforts on a dollar for dollar basis. That is, for every $2.00 received by the Company in financing, whether debt or equity, the Company will pay $1.00 toward the $300,000 cash portion of the consideration to be provided by the Company, until paid in full. |