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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Kraig Biocraft Laboratories Inc (QB) | USOTC:KBLB | OTCMarkets | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.0128 | 13.76% | 0.1058 | 0.10 | 0.1126 | 0.118 | 0.087 | 0.093 | 3,065,209 | 21:23:50 |
Wyoming
|
2820
|
83-0459707
|
||
(State of Incorporation)
|
(Primary Standard Classification Code)
|
(IRS Employer ID No.)
|
Large accelerated filer
|
o
|
Accelerated filer
|
o
|
Non-accelerated filer
|
o
|
Smaller reporting company
|
þ
|
(Do not check if a smaller reporting company)
|
Title of Each Class Of Securities to be Registered
|
Amount to be
Registered (1)
|
Proposed Maximum
Aggregate
Offering Price
per share (2)
|
Proposed Maximum
Aggregate
Offering Price (3)
|
Amount of
Registration fee
|
||||||||||||
Class A Common Stock, no par value
|
110,000,000
|
$
|
0.0401
|
$
|
4,411,000
|
$
|
512.56
|
PAGE
|
|||
Prospectus Summary
|
1
|
||
Summary Financial Data
|
3 | ||
Risk Factors
|
4 | ||
Use of Proceeds
|
14 | ||
Selling Shareholder
|
14 | ||
Plan of Distribution
|
16 | ||
Description of Securities
|
18 | ||
Interests of Named Experts and Counsel
|
19 | ||
Description of Business
|
19 | ||
Legal Proceedings
|
25 | ||
Market For Common Equity and Related Stockholder Matters
|
26 | ||
Available Information
|
27 | ||
Financial Statements
|
F-1 | ||
Management Discussion and Analysis of Financial Condition and Results of Operations
|
28 | ||
Changes In and Disagreements with Accountants on Accounting and Financial Disclosure
|
34 | ||
Directors, Executive Officers, Promoters and Control Persons
|
34 | ||
Executive Compensation
|
35 | ||
Security Ownership of Certain Beneficial Owners and Management
|
37 | ||
Certain Relationships and Related Transactions
|
37 | ||
Disclosure of Commission Position of Indemnification for Securities Act Liabilities
|
38 |
●
|
Calm Seas has purchased an aggregate of $7,500,000 of our Class A common stock; or
|
●
|
The second anniversary of the effective date of the registration statement covering the Equity Line Financing with Calm Seas under the Letter Agreement.
|
Class A common stock offered:
|
Up to 110,000,000 shares of Class A common stock, no par value, to be offered for resale by Calm Seas.
|
Class A common stock outstanding before this offering:
|
673,974,429 shares
|
Common stock to be outstanding after this offering:
|
783,974,429 shares
|
Use of proceeds:
|
We will not receive any proceeds from the sale of the shares of Class A common stock. However, we will receive proceeds from the Equity Line Financing. See “Use of Proceeds”.
|
Risk factors:
|
An investment in our Class A common stock involves a high degree of risk. See “Risk Factors” beginning on page 4 of this prospectus.
|
OTC Markets symbol:
|
“KBLB”
|
For the Nine Months Ended September 30, 2014
|
For the Year
Ended
December 31,
2013
|
For the Year
Ended
December 31, 2012
|
From Inception
through
September 30, 2014
|
|||||||||||||
(Unaudited)
|
(Audited)
|
(Audited)
|
(Unaudited)
|
|||||||||||||
(Restated)
|
|
|||||||||||||||
Revenue
|
$
|
--
|
$
|
--
|
$
|
--
|
$
|
--
|
||||||||
Total Operating Expenses
|
$
|
1,420,061
|
$
|
2,280,469
|
$
|
1,560,406
|
$
|
9,727,663
|
||||||||
Loss from Operations
|
$
|
(1,420,061
|
)
|
$
|
(2,280,469
|
)
|
(1,560,406
|
)
|
$
|
(9,727,663
|
)
|
|||||
Net loss
|
$
|
(1,453,328
|
)
|
$
|
(7,467,685
|
)
|
$
|
(1,602,921
|
)
|
$
|
(17,758,686
|
)
|
||||
Loss Per Share – Basic and Diluted
|
$
|
(0.00
|
)
|
$
|
(0.01
|
)
|
$
|
(0.00
|
)
|
As of September 30, 2014
|
As of
December 31, 2013
|
As of
December 31,
2012
|
||||||||||
BALANCE SHEET DATA:
|
(Unaudited)
|
(Audited)
|
(Audited)
|
|||||||||
(Restated)
|
||||||||||||
Cash
|
$
|
726,857
|
$
|
295,381
|
$
|
53,782
|
||||||
Total assets
|
$
|
762,605
|
$
|
311,217
|
$
|
78,752
|
||||||
Total liabilities – related party
|
$
|
1,107,186
|
$
|
1,146,202
|
$
|
952,449
|
||||||
Total Current Liabilities
|
$
|
1,578,229
|
$
|
1,512,619
|
$
|
1,203,790
|
||||||
Stockholders’ Deficit
|
$
|
(815,624
|
)
|
$
|
(1,201,402
|
)
|
$
|
(1,134,416
|
)
|
●
|
We do not have a system in place to ensure all of our consulting agreements are timely reconciled to the financial statements.
|
●
|
We failed to properly account for the embedded derivative liability associated with the CEO’s employment agreement in our quarterly and annual reports.
|
1.
|
We will continue to educate our management personnel to comply with the disclosure requirements of Securities Exchange Act of 1934 and Regulation S-K;
|
|
2.
|
We will increase management oversight of accounting and reporting functions in the future; and
|
|
3.
|
We will hire personnel to handle our accounting and reporting functions.
|
●
|
disputes with respect to payments that we believe are due under a collaboration agreement;
|
●
|
disagreements with respect to ownership of intellectual property rights;
|
●
|
unwillingness on the part of a collaborator to keep us informed regarding the progress of its development and commercialization activities, or to permit public disclosure of these activities;
|
●
|
delay of a collaborator’s development or commercialization efforts with respect to our product development; or
|
●
|
termination or non-renewal of the collaboration.
|
●
|
raise sufficient additional capital in the public and/or private markets to continue the development of the transgenic silkworm, demonstrate the ability to produce commercial volumes of recombinant silk fibers or product effective polymer fibers using such recombinant silk fibers;
|
●
|
develop and manufacture specialty fibers achieve market acceptance;
|
●
|
develop and maintain relationships with key vendors that will be necessary to optimize the market value of the fibers we develop;
|
●
|
maintain relationships with strategic partners that will be necessary to manufacture the fibers we develop or develop relationships with potential strategic partners which may license or distribute fiber products that we develop;
|
●
|
respond effectively to competitive pressures; or
|
●
|
recruit and build a management team to accomplish our business plan.
|
●
|
the issuance of new equity securities pursuant to a future offering;
|
●
|
competitive developments;
|
●
|
variations in quarterly operating results;
|
●
|
change in financial estimates by securities analysts;
|
●
|
the depth and liquidity of the market for our Class A common stock;
|
●
|
investor perceptions of our company and the technologies industries generally; and
|
●
|
general economic and other national conditions.
|
Beneficial Ownership of Class A Common Shares Prior to this Offering
|
Number of Shares
to be Sold
|
Beneficial Ownership of Class A Common Shares after this Offering
|
||||||||||||||||||
Selling Shareholder
|
Number of Shares
|
Percent of Class (3)
|
Under this Prospectus (1)
|
Number of Shares (2)
|
Percent of Class (3)
|
|||||||||||||||
Calm Seas Capital, LLC. (4)
|
110,000,000
|
14.0
|
%
|
110,000,000
|
0
|
0
|
%
|
|||||||||||||
377 S. Nevada St. | ||||||||||||||||||||
Carson City, NV 89703 | ||||||||||||||||||||
Total
|
110,000,000
|
14.0
|
%
|
110,000,000
|
0
|
0
|
%
|
(1)
|
The number of shares set forth in the table includes an estimate of the number of common shares to be offered by the selling shareholder. We have assumed that all of the shares of common offered under this prospectus will be sold. However, as the selling shareholder can offer all, some or none of its shares of common stock, no definitive estimate can be given as to the number of shares that the selling shareholder will offer or sell under this prospectus.
|
(2)
|
Assumes the sale of all shares offered by the selling shareholder
|
(3)
|
Based on 783,974,429 shares of Class A common stock outstanding after the completion of the offering.
|
(4)
|
Calm Seas Capital, LLC is a Nevada limited liability company. Michael McCarthy is the managing member of Calm Seas with voting and investment power over the shares.
|
●
|
On the OTCQB or any other national common stock exchange or automated quotation system on which our Class A common stock is traded, which may involve transactions solely between a broker-dealer and its customers which are not traded across an open market and block trades.
|
●
|
Through one or more dealers or agents (which may include one or more underwriters), including, but not limited to:
|
- Block trades in which the broker or dealer as principal and resale by such broker or dealer for its account pursuant to this prospectus.
|
- Purchases by a broker or dealer as principal and resale by such broker or dealer for its account pursuant to this prospectus.
|
●
|
Ordinary brokerage transactions.
|
●
|
Directly to one or more purchasers.
|
●
|
A combination of these methods.
|
●
|
Within 30 days of the date of this agreement, a warrant for six hundred thousand shares of the Company’s common stock to be exercisable on the 14 month anniversary of this agreement for a period of 12 months with a cashless exercise provision.
|
●
|
Within 30 days of the date of this agreement, a warrant for one million shares of the Company’s common stock to be exercisable on the 20 month anniversary of this agreement for a period of 12 months with a cashless exercise provision.
|
●
|
Within 30 days of the date of this agreement, a warrant for two million shares of the Company’s common stock to be exercisable on the 32 month anniversary of this agreement for a period of 12 months with a cashless exercise provision.
|
●
|
Based on the consultants reaching two sets of benchmarks, two separate warrants for one million five hundred thousand shares of the Company’s common stock to be exercisable on the 28 month anniversary of this agreement for a period of 12 months with a cashless exercise provision.
|
●
|
On the three year anniversary, assuming the consultant acted in good faith and the Company’s board of directors approval, a warrant for one million five hundred thousand shares of the Company’s common stock to be exercisable on the 28 month anniversary of this agreement for a period of 12 months with a cashless exercise provision.
|
●
|
Medical textiles;
|
●
|
Geotextiles;
|
●
|
Textiles used in Defense and Military;
|
●
|
Safe and Protective Clothing;
|
●
|
Filtration Textiles;
|
●
|
Textiles used in Transportation;
|
●
|
Textiles used in Buildings;
|
●
|
Composites with Textile Structure;
|
●
|
Functional and Sportive Textiles.
|
Material Toughness1
|
Tensile Strength2
|
Weight3
|
|||||||
Dragline spider silk
|
120,000-160,000
|
1,100-2,900
|
1.18-1.36
|
||||||
Steel
|
2,000-6,000
|
300-2,000
|
7.84
|
Trademarked Name
|
Registration No.
|
Date of Registration:
|
||
Spiderpillar®
|
4,556,197
|
June 24,2014
|
||
Spilk®
|
4,556,198
|
June 24,2014
|
||
Spider Moth®
|
4,556,199
|
June 24,2014
|
||
Spider Worm®
|
4,556,200
|
June 24,2014
|
||
Monster Worm®
|
4,556, 201
|
June 24, 2014
|
||
Monster Silk®
|
4,556,202
|
June 24, 2014
|
Low Price
|
High Price
|
|||||||
2014
|
||||||||
Fourth Quarter 2014
|
$
|
0.0351 |
$
|
0.048 | ||||
Third Quarter 2014
|
$
|
0.0399
|
$
|
0.062
|
||||
Second Quarter 2014
|
$
|
0.05
|
$
|
0.0625
|
||||
First Quarter 2014
|
$
|
0.05
|
$
|
0.067
|
||||
2013
|
||||||||
Fourth Quarter 2013
|
$
|
0.0465
|
$
|
0.065
|
||||
Third Quarter 2013
|
$
|
0.051
|
$
|
0.086
|
||||
Second Quarter 2013
|
$
|
0.06
|
$
|
0.136
|
||||
First Quarter 2013
|
$
|
0.0363
|
$
|
0.1
|
||||
2012
|
||||||||
Fourth Quarter 2012
|
$
|
0.036
|
$
|
0.043
|
||||
Third Quarter 2012
|
$
|
0.034
|
$
|
0.058
|
||||
Second Quarter 2012
|
$
|
0.0524
|
$
|
0.075
|
||||
First Quarter 2012
|
$
|
0.075
|
$
|
0.098
|
PAGE
|
||
UNAUDITED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2013
|
||
CONDENSED BALANCE SHEETS AS OF SEPTEMBER 30, 2014 (UNAUDITED) AND DECEMBER 31, 2013
|
F-2
|
|
CONDENSED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013 (UNAUDITED) AND FOR THE PERIOD FROM APRIL 25, 2006 (INCEPTION) TO SEPTEMBER 30, 2014 (UNAUDITED)
|
F-3
|
|
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS’ DEFICIT FOR THE PERIOD FROM APRIL 25, 2006 (INCEPTION) TO SEPTEMBER 30, 2014 (UNAUDITED)
|
F-4
|
|
CONDENSED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013 AND FOR THE PERIOD FROM APRIL 25, 2006 (INCEPTION) TO SEPTEMBER 30, 2014 (UNAUDITED)
|
F-12
|
|
NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
|
F-13
|
AUDITED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2013 AND 2012
|
||
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
|
F-36
|
|
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
|
F-37
|
|
BALANCE SHEETS AS OF DECEMBER 31, 2013 AND DECEMBER 31, 2012 (RESTATED).
|
F-38
|
|
STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012 (RESTATED) AND FOR THE PERIOD APRIL 25, 2006 (INCEPTION) TO DECEMBER 31, 2013 (RESTATED).
|
F-39
|
|
STATEMENT OF CHANGES IN STOCKHOLDERS’ DEFICIT FOR THE PERIOD FROM APRIL 25, 2006 (INCEPTION) TO DECEMBER 31, 2013.
|
F-40
|
|
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012 (RESTATED) AND FOR THE PERIOD APRIL 25, 2006 (INCEPTION) TO DECEMBER 31, 2013 (RESTATED).
|
F-41
|
|
NOTES TO FINANCIAL STATEMENTS.
|
F-42
|
Kraig Biocraft Laboratories, Inc.
|
||||||||
(A Development Stage Company)
|
||||||||
Condensed Balance Sheets
|
||||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
September 30, 2014
|
December 31, 2013
|
|||||||
Current Assets
|
||||||||
Cash
|
$ | 726,857 | $ | 295,381 | ||||
Prepaid expenses
|
26,351 | 1,743 | ||||||
Total Current Assets
|
753,208 | 297,124 | ||||||
Property and Equipment, net
|
9,397 | 14,093 | ||||||
Total Assets
|
$ | 762,605 | $ | 311,217 | ||||
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
||||||||
Current Liabilities
|
||||||||
Accounts payable and accrued expenses
|
$ | 469,961 | $ | 362,436 | ||||
Current portion of loan payable
|
1,082 | 3,981 | ||||||
Royalty agreement payable - related party
|
65,292 | 64,720 | ||||||
Accounts payable and accrued expenses - related party
|
1,041,894 | 1,081,482 | ||||||
Total Current Liabilities
|
1,578,229 | 1,512,619 | ||||||
Commitments and Contingencies
|
||||||||
Stockholders' Deficit
|
||||||||
Preferred stock Series A, no par value;
|
||||||||
2 and 2 shares issued and outstanding, respectively
|
5,217,800 | 5,217,800 | ||||||
Common stock Class A, no par value; unlimited shares authorized,
|
||||||||
673,958,429 and 635,241,994 shares issued and outstanding, respectively
|
9,812,200 | 7,810,920 | ||||||
Common stock Class B, no par value; unlimited shares authorized,
|
||||||||
no shares issued and outstanding
|
- | - | ||||||
Common Stock Issuable, 1,122,311 and 1,122,311 shares, respectively
|
22,000 | 22,000 | ||||||
Additional paid-in capital
|
1,891,062 | 2,053,236 | ||||||
Deficit accumulated during the development stage
|
(17,758,686 | ) | (16,305,358 | ) | ||||
. | . | |||||||
Total Stockholders' Deficit
|
(815,624 | ) | (1,201,402 | ) | ||||
Total Liabilities and Stockholders' Deficit
|
$ | 762,605 | $ | 311,217 |
Kraig Biocraft Laboratories, Inc.
|
||||||||||||||||||||
(A Development Stage Company)
|
||||||||||||||||||||
Condensed Statements of Operations
|
||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
For the Three Months Ended
|
For the Nine Months Ended
|
For the Period from April 25, 2006
(Inception) to
|
||||||||||||||||||
September 30, 2014
|
September 30, 2013
|
September 30, 2014
|
September 30, 2013
|
September 30, 2014
|
||||||||||||||||
|
||||||||||||||||||||
Revenue
|
$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Operating Expenses
|
||||||||||||||||||||
General and Administrative
|
31,328 | 772,503 | 826,708 | 833,376 | 4,141,738 | |||||||||||||||
Public Relations
|
- | - | - | - | 619,890 | |||||||||||||||
Amortization of Debt Discount
|
- | - | - | - | 120,000 | |||||||||||||||
Professional Fees
|
59,313 | 13,111 | 112,828 | 58,583 | 626,276 | |||||||||||||||
Officer's Salary
|
62,528 | 58,899 | 187,585 | 176,787 | 2,028,233 | |||||||||||||||
Contract Settlement
|
- | - | - | - | 107,143 | |||||||||||||||
Research and Development
|
68,801 | 96,368 | 292,940 | 416,418 | 2,084,383 | |||||||||||||||
Total Operating Expenses
|
221,970 | 940,881 | 1,420,061 | 1,485,164 | 9,727,663 | |||||||||||||||
Loss from Operations
|
(221,970 | ) | (940,881 | ) | (1,420,061 | ) | (1,485,164 | ) | (9,727,663 | ) | ||||||||||
Other Income/(Expenses)
|
||||||||||||||||||||
Gain on forgiveness of debt
|
- | 6,775 | 19,136 | 6,775 | 25,911 | |||||||||||||||
Other income
|
- | - | - | - | 7,881 | |||||||||||||||
Bad debt expense
|
- | - | - | - | (6,238 | ) | ||||||||||||||
Interest income
|
- | - | - | 47 | 239 | |||||||||||||||
Loss on settlement of accrued payroll - related party
|
- | - | - | - | (5,187,800 | ) | ||||||||||||||
Change in fair value of embedded derivative liability
|
- | - | - | - | (2,790,185 | ) | ||||||||||||||
Change in fair value of embedded derivative liability-related party
|
- | - | - | - | 119,485 | |||||||||||||||
Interest expense
|
(17,071 | ) | (15,953 | ) | (52,403 | ) | (50,014 | ) | (200,316 | ) | ||||||||||
Total Other Income/(Expenses)
|
(17,071 | ) | (9,178 | ) | (33,267 | ) | (43,192 | ) | (8,031,023 | ) | ||||||||||
Net (Loss) before Provision for Income Taxes | (239,041) | (950,059) | (1,453,328) | (1,528,356) | (17,758,686) | |||||||||||||||
Provision for Income Taxes
|
- | - | - | - | - | |||||||||||||||
Net (Loss)
|
$ | (239,041 | ) | $ | (950,059 | ) | $ | (1,453,328 | ) | $ | (1,528,356 | ) | $ | (17,758,686 | ) | |||||
Net Income (Loss) Per Share - Basic and Diluted
|
$ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | ||||||||
Weighted average number of shares outstanding
|
||||||||||||||||||||
during the period - Basic and Diluted
|
665,681,446 | 620,402,696 | 658,620,828 | 610,945,312 |
Kraig Biocraft Laboratories, Inc.
|
||||||||||||||||||||||||||||||||||||||||||||||||
(A Development Stage Company)
|
||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Statement of Changes in Stockholders Deficit
|
||||||||||||||||||||||||||||||||||||||||||||||||
For the period from April 25, 2006 (inception) to September 30, 2014
|
||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock - Series A
|
Common Stock - Class A
|
Common Stock - Class B
|
Common Stock -
Class A Shares
|
Deferred
|
Deficit
Accumulated during |
|||||||||||||||||||||||||||||||||||||||||||
Shares
|
Par
|
Shares
|
Par
|
Shares
|
Par
|
Par
|
APIC
|
Compensation
|
Development Stage
|
|||||||||||||||||||||||||||||||||||||||
Balance, April 25, 2006
|
- | $ | - | - | $ | - | - | $ | - | - | $ | - | $ | - | - | $ | - | $ | - | |||||||||||||||||||||||||||||
Stock issued to founder
|
- | - | 332,292,000 | 180 | - | - | - | - | - | - | - | 180 | ||||||||||||||||||||||||||||||||||||
Stock issued for services ($.01/share)
|
- | - | 17,500,000 | 140,000 | - | - | - | - | - | - | - | 140,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for services ($.01/share)
|
- | - | 700,000 | 5,600 | - | - | - | - | - | - | - | 5,600 | ||||||||||||||||||||||||||||||||||||
Stock contributed by shareholder
|
- | - | (11,666,500 | ) | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Stock issued for cash ($.05/share)
|
- | - | 4,000 | 200 | - | - | - | - | - | - | - | 200 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.05/share)
|
- | - | 4,000 | 200 | - | - | - | - | - | - | - | 200 | ||||||||||||||||||||||||||||||||||||
Fair value of warrants issued
|
- | - | - | - | - | - | - | - | 126,435 | - | - | 126,435 | ||||||||||||||||||||||||||||||||||||
Net Loss
|
- | - | - | - | - | - | - | - | - | - | (530,321 | ) | (530,321 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2006
|
- | - | 338,833,500 | 146,180 | - | - | - | - | 126,435 | - | (530,321 | ) | (257,706 | ) | ||||||||||||||||||||||||||||||||||
Stock issued for cash ($.01/share)
|
- | - | 1,750,000 | 15,000 | - | - | - | - | - | - | - | 15,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.01/share)
|
- | - | 12,000,000 | 103,000 | - | - | - | - | - | - | - | 103,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.0003/share)
|
- | - | 9,000,000 | 3,000 | - | - | - | - | - | - | - | 3,000 |
Stock issued for cash ($.01/share)
|
- | - | 1,875,000 | 15,000 | - | - | - | - | - | - | - | 15,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.01/share)
|
- | - | 1,875,000 | 15,000 | - | - | - | - | - | - | - | 15,000 | ||||||||||||||||||||||||||||||||||||
- | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock issued for services ($.01/share)
|
- | - | 2,000,000 | 16,000 | - | - | - | - | - | - | - | 16,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.01/share)
|
- | - | 13,125,000 | 105,000 | - | - | - | - | - | - | - | 105,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.003/share)
|
- | - | 80,495,000 | 241,485 | - | - | - | - | - | - | - | 241,485 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.003/share)
|
- | - | 200,000 | 600 | - | - | - | - | - | - | - | 600 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.003/share)
|
- | - | 8,300,000 | 24,900 | - | - | - | - | - | - | - | 24,900 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.003/share)
|
- | - | 25,000 | 75 | - | - | - | - | - | - | - | 75 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.003/share)
|
- | - | 120,000 | 360 | - | - | - | - | - | - | - | 360 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.003/share)
|
- | - | 1,025,000 | 3,075 | - | - | - | - | - | 3,075 | ||||||||||||||||||||||||||||||||||||||
Stock issued in connection to cash offering
|
- | - | 28,125,000 | 84,375 | - | - | - | - | (84,375 | ) | - | - | - | |||||||||||||||||||||||||||||||||||
Stock issued for services ($.01/share)
|
- | - | 600,000 | 6,000 | - | - | - | - | - | - | - | 6,000 | ||||||||||||||||||||||||||||||||||||
Net loss, for the year ended December 31, 2007
|
- | - | - | - | - | - | - | - | - | - | (472,986 | ) | (472,986 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2007
|
- | - | 499,348,500 | 779,050 | - | - | - | - | 42,060 | - | (1,003,307 | ) | (182,197 | ) | ||||||||||||||||||||||||||||||||||
Stock issuable for services ($.01/share)
|
- | - | - | - | - | - | 400,000 | 4,000 | - | - | - | 4,000 | ||||||||||||||||||||||||||||||||||||
Net loss, for the year ended December 31, 2008
|
- | - | - | - | - | - | - | - | - | - | (1,721,156 | ) | (1,721,156 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2008
|
- | - | 499,348,500 | 779,050 | - | - | 400,000 | 4,000 | 42,060 | - | (2,724,463 | ) | (1,899,353 | ) |
Stock issued for cash ($.01/share)
|
- | - | 2,500,000 | 25,000 | - | - | - | - | - | - | - | 25,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.008/share)
|
- | - | 366,599 | 3,000 | - | - | - | - | - | - | - | 3,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for services
|
- | - | 280,000 | 14,000 | - | - | 722,311 | 18,000 | - | - | - | 32,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for services
|
- | - | - | - | - | - | 10,000,000 | 200,000 | - | (103,333 | ) | - | 96,667 | |||||||||||||||||||||||||||||||||||
Net loss for the year ended December 31, 2009
|
- | - | - | - | - | - | - | - | - | - | (1,432,091 | ) | (1,432,091 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2009
|
- | - | 502,495,099 | 821,050 | - | - | 11,122,311 | 222,000 | 42,060 | (103,333 | ) | (4,156,554 | ) | (3,174,777 | ) | |||||||||||||||||||||||||||||||||
Stock issued for services ($.01/share)
|
- | - | 540,000 | 5,400 | - | - | - | - | - | (5,000 | ) | - | 400 | |||||||||||||||||||||||||||||||||||
Stock issued for services ($.02/share)
|
- | - | 17,885,915 | 334,000 | - | - | - | - | - | - | - | 334,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for services ($.08/share)
|
- | - | 387,500 | 31,000 | - | - | - | - | - | - | - | 31,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for services ($.15/share)
|
- | - | 200,000 | 30,000 | - | - | - | - | - | - | - | 30,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for services ($.05/share)
|
- | - | 280,000 | 14,000 | - | - | - | - | - | - | - | 14,000 | ||||||||||||||||||||||||||||||||||||
Warrants issued for services
|
- | - | - | - | - | - | - | - | 168,000 | (168,000 | ) | - | - | |||||||||||||||||||||||||||||||||||
Stock issued in connection with convertible note conversion
|
- | - | 5,694,451 | 100,000 | - | - | - | - | - | - | - | 100,000 |
Stock issued in connection with convertible note conversion
|
- | - | 854,169 | 15,000 | - | - | - | - | - | - | - | 15,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.02/share)
|
- | - | 10,000,000 | 200,000 | - | - | (10,000,000 | ) | (200,000 | ) | - | - | - | - | ||||||||||||||||||||||||||||||||||
Stock issued for cash ($.01/share)
|
- | - | 4,000,000 | 28,632 | - | - | - | - | - | - | - | 28,632 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.02/share)
|
- | - | 4,513,116 | 70,000 | - | - | - | - | - | - | - | 70,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.08/share)
|
- | - | 1,179,245 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.06/share)
|
- | - | 1,157,407 | 75,000 | - | - | - | - | - | - | - | 75,000 | ||||||||||||||||||||||||||||||||||||
Exercise of 6,000,000 warrants in exchange for stock
|
- | - | 5,177,801 | 10,000 | - | - | - | - | 677,908 | - | - | 687,908 | ||||||||||||||||||||||||||||||||||||
Deferred compensation realized
|
- | - | - | - | - | - | - | - | - | 250,333 | - | 250,333 | ||||||||||||||||||||||||||||||||||||
Forgiveness of accrued payable to related party
|
- | - | - | - | - | - | - | - | 499,412 | 499,412 | ||||||||||||||||||||||||||||||||||||||
Forgiveness of derivative liability to related party
|
- | - | - | - | - | - | - | - | 2,102,795 | 2,102,795 | ||||||||||||||||||||||||||||||||||||||
Net loss for the year ended December 31, 2010
|
- | - | - | - | - | - | - | - | - | - | (1,782,888 | ) | (1,782,888 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2010
|
- | - | 554,364,703 | 1,834,082 | - | - | 1,122,311 | 22,000 | 3,490,175 | (26,000 | ) | (5,939,442 | ) | (619,185 | ) |
Stock issued for cash ($.06/share)
|
- | - | 1,470,588 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.05/share)
|
- | - | 2,083,333 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for services ($.07/share)
|
- | - | 1,000,000 | 70,000 | - | - | - | - | - | - | - | 70,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for services ($.07/share)
|
- | - | 1,029,412 | 70,000 | - | - | - | - | - | - | - | 70,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.07/share)
|
- | - | 1,420,455 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.07/share)
|
- | - | 1,372,119 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.08/share)
|
- | - | 1,314,406 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.06/share)
|
- | - | 1,543,210 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for license ($0.11/share)
|
- | - | 2,200,000 | 242,000 | - | - | - | - | - | - | - | 242,000 | ||||||||||||||||||||||||||||||||||||
Exercise of 20,000,000 warrants in exchange for stock
|
- | - | 19,767,985 | 2,569,838 | - | - | - | - | (2,569,838 | ) | - | - | - | |||||||||||||||||||||||||||||||||||
Deferred compensation realized
|
- | - | - | - | - | - | - | - | - | 26,000 | - | 26,000 | ||||||||||||||||||||||||||||||||||||
Net loss for the year ended December 31, 2011
|
- | - | - | - | - | - | - | - | - | - | (1,295,310 | ) | (1,295,310 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2011
|
- | - | 587,566,211 | 5,385,920 | - | - | 1,122,311 | 22,000 | 920,337 | - | (7,234,752 | ) | (906,495 | ) |
Stock issued for cash ($0.06/share)
|
- | - | 1,562,500 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.04/share)
|
- | - | 2,403,846 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.05/share)
|
- | - | 1,923,077 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.04/share)
|
- | - | 2,155,172 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.02/share)
|
- | - | 1,004,832 | 25,000 | - | - | - | - | - | - | - | 25,000 | ||||||||||||||||||||||||||||||||||||
Shares issued for services ($0.10/share)
|
- | - | 3,000,000 | 300,000 | - | - | - | - | - | - | - | 300,000 | ||||||||||||||||||||||||||||||||||||
Shares issued for services ($0.06/share)
|
- | - | 300,000 | 18,000 | - | - | - | - | - | - | - | 18,000 | ||||||||||||||||||||||||||||||||||||
Shares issued for services ($0.06/share)
|
- | - | 1,600,000 | 96,000 | - | - | - | - | - | - | - | 96,000 | ||||||||||||||||||||||||||||||||||||
Shares issued for services ($0.06/share)
|
- | - | 1,600,000 | 96,000 | - | - | - | - | - | - | - | 96,000 | ||||||||||||||||||||||||||||||||||||
Shares issued for services ($0.04/Share)
|
- | - | 1,000,000 | 40,000 | - | - | - | - | - | - | - | 40,000 | ||||||||||||||||||||||||||||||||||||
Grant 100,000,000 warrants for services
|
- | - | - | - | - | - | - | - | 400,000 | - | - | 400,000 | ||||||||||||||||||||||||||||||||||||
Net loss for the year ended December 31, 2012 (Restated)
|
- | - | - | - | - | - | - | - | - | - | (1,602,921 | ) | (1,602,921 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2012
|
- | - | 604,115,638 | 6,360,920 | - | - | 1,122,311 | 22,000 | 1,320,337 | - | (8,837,673 | ) | (1,134,416 | ) |
Stock issued for cash ($0.05/share)
|
- | - | 961,538 | 50,000 | - | - | - | - | - | - | - | 50,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.05/share)
|
- | - | 945,537 | 50,000 | - | - | - | - | - | - | - | 50,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.06/share)
|
- | - | 822,368 | 50,000 | - | - | - | - | - | - | - | 50,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.08/share)
|
- | - | 884,434 | 75,000 | - | - | - | - | - | - | - | 75,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.06/share)
|
- | - | 3,521,126 | 200,000 | - | - | - | - | - | - | - | 200,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.05/share)
|
- | - | 1,838,235 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.05/share)
|
- | - | 1,923,077 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.05/share)
|
- | - | 2,100,840 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.04/share)
|
- | - | 5,208,334 | 200,000 | - | - | - | - | - | - | - | 200,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.04/share)
|
- | - | 3,063,725 | 125,000 | - | - | - | - | - | - | - | 125,000 | ||||||||||||||||||||||||||||||||||||
Exercise of 10,000,000 warrants in exchange for stock
|
- | - | 9,857,142 | 400,000 | - | - | - | - | (400,000 | ) | - | - | - | |||||||||||||||||||||||||||||||||||
Preferred Stock issued
|
2 | 5,217,800 | - | - | - | - | - | - | - | - | - | 5,217,800 | ||||||||||||||||||||||||||||||||||||
Grant 10,000,000 warrants for services
|
- | - | - | - | - | - | - | - | 736,816 | - | - | 736,816 | ||||||||||||||||||||||||||||||||||||
Grant 8,000,000 warrants for services, net of M2M adjustment for unvested warrants
|
- | - | - | - | - | - | - | - | 396,083 | - | - | 396,083 | ||||||||||||||||||||||||||||||||||||
Net loss for the year ended December 31, 2013
|
- | - | - | - | - | - | - | - | - | - | (7,467,685 | ) | (7,467,685 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2013
|
2 | 5,217,800 | 635,241,994 | 7,810,920 | - | - | 1,122,311 | 22,000 | 2,053,236 | - | (16,305,358 | ) | (1,201,402 | ) |
Stock issued for cash ($0.04/share)
|
- | - | 27,051,006 | 1,150,000 | - | - | - | - | - | - | - | 1,150,000 | ||||||||||||||||||||||||||||||||||||
Exercise of 10,000,000 warrants in exchange for stock
|
- | - | 9,821,429 | 736,816 | - | - | - | - | (736,816 | ) | - | - | - | |||||||||||||||||||||||||||||||||||
Grant 10,200,000 warrants for services
|
- | - | - | - | - | - | - | - | 574,642 | - | - | 574,642 | ||||||||||||||||||||||||||||||||||||
Settlement of accounts payable with stock issuance ($0.065/share)
|
- | - | 44,000 | 2,864 | - | - | - | - | - | - | - | 2,864 | ||||||||||||||||||||||||||||||||||||
Shares issued for services ($0.062/share)
|
- | - | 1,800,000 | 111,600 | - | - | - | - | - | - | - | 111,600 | ||||||||||||||||||||||||||||||||||||
Net loss for the nine months ended September 30, 2014
|
- | - | - | - | - | - | - | - | - | - | (1,453,328 | ) | (1,453,328 | ) | ||||||||||||||||||||||||||||||||||
Balance, September 30, 2014
|
2 | $ | 5,217,800 | 673,958,429 | $ | 9,812,200 | - | $ | - | 1,122,311 | $ | 22,000 | $ | 1,891,062 | $ | - | $ | (17,758,686 | ) | $ | (815,624 | ) |
Kraig Biocraft Laboratories, Inc.
|
|||||||||||
(A Development Stage Company)
|
|||||||||||
Condensed Statements of Cash Flows
|
|||||||||||
(Unaudited)
|
|||||||||||
For the Nine Months Ended September 30,
|
For the Period from April 25, 2006
|
||||||||||
(Inception) to
|
|||||||||||
2014
|
2013
|
September 30, 2014
|
|||||||||
Cash Flows From Operating Activities:
|
|||||||||||
Net Loss
|
$ | (1,453,328 | ) | (1,528,356 | ) | $ | (17,758,686 | ) | |||
Adjustments to reconcile net loss to net cash used in operations
|
|||||||||||
Depreciation expense
|
4,696 | 4,306 | 21,990 | ||||||||
Gain on forgiveness of debt
|
(19,136 | ) | (6,775 | ) | (25,911 | ) | |||||
Stock issuable for services
|
- | - | 22,000 | ||||||||
Loss on settlement
|
- | - | 5,187,800 | ||||||||
Change in Fair Value of Derivative Liability
|
- | 2,790,703 | |||||||||
Stock issued for services
|
111,600 | - | 1,569,780 | ||||||||
Warrants issued to employees
|
- | 126,435 | |||||||||
Warrants issued to consultants
|
574,642 | 736,816 | 2,275,541 | ||||||||
Deferred compensation realized
|
- | - | 200,000 | ||||||||
Bad debt expense
|
- | 6,000 | 6,238 | ||||||||
Write off of interest receivable
|
- | 192 | - | ||||||||
Changes in operating assets and liabilities:
|
|||||||||||
(Increase) Decrease in prepaid expenses
|
(24,608 | ) | 1,039 | (26,351 | ) | ||||||
(Decrease) in interest receivables
|
- | - | (46 | ) | |||||||
(Decrease) in accrued expenses and other payables - related party
|
(17,016 | ) | 116,687 | 1,576,333 | |||||||
Increase in accounts payable
|
107,525 | 77,785 | 554,002 | ||||||||
Net Cash Used In Operating Activities
|
(715,625 | ) | (592,306 | ) | (3,480,172 | ) | |||||
Cash Flows From Investing Activities:
|
|||||||||||
Loan receivable
|
- | - | (6,000 | ) | |||||||
Interest receivable
|
- | - | (192 | ) | |||||||
Write off of interest receivable
|
- | - | - | ||||||||
Purchase of Fixed Assets and Domain Name
|
- | (3,473 | ) | (31,387 | ) | ||||||
Net Cash Provided by (Used In) Investing Activities
|
- | (3,473 | ) | (37,579 | ) | ||||||
Cash Flows From Financing Activities:
|
|||||||||||
Proceeds from Notes Payable - Stockholder
|
- | 150,000 | 150,000 | ||||||||
Repayments of Notes Payable - Stockholder
|
- | (150,000 | ) | (150,000 | ) | ||||||
Proceeds from issuance of convertible note
|
- | - | 120,000 | ||||||||
Loan payable
|
(2,899 | ) | (3,329 | ) | 1,081 | ||||||
Proceeds from issuance of common stock
|
1,150,000 | 725,000 | 4,123,527 | ||||||||
Net Cash Provided by Financing Activities
|
1,147,101 | 721,671 | 4,244,608 | ||||||||
Net Increase (Decrease) in Cash
|
431,476 | 125,892 | 726,857 | ||||||||
Cash at Beginning of Period
|
295,381 | 53,782 | - | ||||||||
Cash at End of Period
|
$ | 726,857 | $ | 179,674 | $ | 726,857 | |||||
Supplemental disclosure of cash flow information:
|
|||||||||||
Cash paid for interest
|
$ | - | $ | - | $ | - | |||||
Cash paid for taxes
|
$ | - | $ | - | $ | - | |||||
Supplemental disclosure of non-cash investing and financing activities:
|
|||||||||||
Shares issued in connection with cashless warrants exercise
|
$ | 736,816 | $ | 400,000 | $ | 3,706,654 | |||||
Shares issued for settlement of accrued payroll - related party
|
$ | - | $ | - | $ | 30,000 | |||||
Shares issued in connection with convertible note payable
|
$ | - | $ | - | $ | 115,000 | |||||
Beneficial conversion feature on convertible notes and related debt discount
|
$ | - | $ | - | $ | 120,000 | |||||
Settlement of accounts payable with stock issuance
|
$ | 2,864 | $ | - | $ | 2,864 |
September 30,
2014
|
September 30,
2013
|
|||||||
Stock Warrants (Exercise price - $0.001/share)
|
18,200,000
|
10,000,000
|
||||||
Convertible Preferred Stock
|
2
|
-
|
||||||
Total
|
18,200,002
|
10,000,000
|
-
|
Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period; and
|
-
|
Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account (e.g., inventory for pension-related amounts) instead of directly to income or expense.
|
o
|
Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities that an entity has the ability to access. We believe our carrying value of level 1 instruments approximate their fair value at September 30, 2014 and December 31, 2013.
|
o
|
Level 2 - Valuations based on quoted prices for similar assets or liabilities, quoted prices for identical assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities.
|
o
|
Level 3 - Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. We consider depleting assets, asset retirement obligations and net profit interest liability to be Level 3. We determine the fair value of Level 3 assets and liabilities utilizing various inputs, including NYMEX price quotations and contract terms.
|
September 30,
2014
|
December 31,
2013
|
|||||||
Level 1
|
$
|
-
|
$
|
-
|
||||
Level 2
|
-
|
-
|
||||||
Level 3
|
-
|
-
|
||||||
Total
|
$
|
-
|
$
|
-
|
RESTATED STATEMENT OF OPERATIONS
|
||||||||||||
For the Period from April 25, 2006 (Inception) to March 31, 2013
|
For the Period from April 25, 2006 (Inception) to March 31, 2013
|
|||||||||||
As Reported
|
Adjustments
|
Restated
|
||||||||||
Revenue
|
$
|
-
|
$
|
-
|
||||||||
-
|
||||||||||||
Operating Expenses
|
-
|
|||||||||||
General and Administrative
|
1,967,043
|
1,967,043
|
||||||||||
Public Relations
|
219,890
|
400,000
|
619,890
|
|||||||||
Amortization of Debt Discount
|
120,000
|
120,000
|
||||||||||
Professional Fees
|
351,942
|
351,942
|
||||||||||
Officer's Salary
|
1,662,503
|
1,662,503
|
||||||||||
Contract Settlement
|
107,143
|
107,143
|
||||||||||
Research and Development
|
1,457,292
|
1,457,292
|
||||||||||
Total Operating Expenses
|
5,885,813
|
400,000
|
6,285,813
|
|||||||||
-
|
||||||||||||
Loss from Operations
|
(5,885,813
|
)
|
(400,000
|
)
|
(6,285,813
|
)
|
||||||
-
|
||||||||||||
Other Income/(Expenses)
|
-
|
|||||||||||
Other income
|
7,881
|
7,881
|
||||||||||
Interest income
|
192
|
192
|
||||||||||
Change in fair value of embedded derivative liability
|
(2,790,185
|
)
|
(2,790,185
|
)
|
||||||||
Change in fair value of embedded derivative liability-related party
|
119,485
|
119,485
|
||||||||||
Interest expense
|
(164,538
|
)
|
(164,538
|
)
|
||||||||
Total Other Income/(Expenses)
|
(2,827,165
|
)
|
-
|
(2,827,165
|
)
|
|||||||
-
|
||||||||||||
Net (Income) Loss before Provision for Income Taxes
|
(8,712,978
|
)
|
(400,000
|
)
|
(9,112,978
|
)
|
||||||
-
|
||||||||||||
Provision for Income Taxes
|
-
|
-
|
-
|
|||||||||
-
|
||||||||||||
Net Income (Loss)
|
$
|
(8,712,978
|
)
|
$
|
(400,000
|
)
|
$
|
(9,112,978
|
)
|
|
RESTATED STATEMENT OF OPERATIONS
|
|||||||||||
For the Period from April 25, 2006 (Inception) to June 30, 2013
|
For the Period from April 25, 2006 (Inception) to June 30, 2013
|
|||||||||||
As Reported
|
Adjustments
|
Restated
|
||||||||||
Revenue
|
$
|
-
|
$
|
-
|
||||||||
-
|
||||||||||||
Operating Expenses
|
-
|
|||||||||||
General and Administrative
|
2,000,326
|
2,000,326
|
||||||||||
Public Relations
|
219,890
|
400,000
|
619,890
|
|||||||||
Amortization of Debt Discount
|
120,000
|
120,000
|
||||||||||
Professional Fees
|
380,547
|
380,547
|
||||||||||
Officer's Salary
|
1,721,402
|
1,721,402
|
||||||||||
Contract Settlement
|
107,143
|
107,143
|
||||||||||
Research and Development
|
1,622,059
|
1,622,059
|
||||||||||
Total Operating Expenses
|
6,171,367
|
400,000
|
6,571,367
|
|||||||||
-
|
||||||||||||
Loss from Operations
|
(6,171,367
|
)
|
(400,000
|
)
|
(6,571,367
|
)
|
||||||
-
|
||||||||||||
Other Income/(Expenses)
|
-
|
|||||||||||
Other income
|
7,881
|
7,881
|
||||||||||
Interest income
|
239
|
239
|
||||||||||
Change in fair value of embedded derivative liability
|
(2,790,185
|
)
|
(2,790,185
|
)
|
||||||||
Change in fair value of embedded derivative liability-related party
|
119,485
|
119,485
|
||||||||||
Interest expense
|
(181,974
|
)
|
(181,974
|
)
|
||||||||
Total Other Income/(Expenses)
|
(2,844,554
|
)
|
-
|
(2,844,554
|
)
|
|||||||
-
|
||||||||||||
Net (Income) Loss before Provision for Income Taxes
|
(9,015,921
|
)
|
(400,000
|
)
|
(9,415,921
|
)
|
||||||
-
|
||||||||||||
Provision for Income Taxes
|
-
|
-
|
-
|
|||||||||
-
|
||||||||||||
Net Income (Loss)
|
$
|
(9,015,921
|
)
|
$
|
(400,000
|
)
|
$
|
(9,415,921
|
)
|
|
RESTATED STATEMENTS OF CASH FLOWS
|
|||||||||||
For the Period from April 25, 2006 (Inception) to March 31, 2013
|
For the Period from April 25, 2006 (Inception) to March 31, 2013
|
|||||||||||
As Reported
|
Adjustments
|
Restated
|
||||||||||
Cash Flows From Operating Activities:
|
||||||||||||
Net Loss
|
$
|
(8,712,978
|
)
|
$
|
(400,000
|
)
|
$
|
(9,112,978
|
)
|
|||
Adjustments to reconcile net loss to net cash used in operations
|
||||||||||||
Depreciation expense
|
12,783
|
12,783
|
||||||||||
Stock issuable for services
|
22,000
|
22,000
|
||||||||||
Change in Fair Value of Derivative Liability
|
2,790,703
|
2,790,703
|
||||||||||
Stock issued for services
|
1,458,180
|
1,458,180
|
||||||||||
Warrants issued to employees
|
126,435
|
126,435
|
||||||||||
Warrants issued to consultants
|
168,000
|
400,000
|
568,000
|
|||||||||
Deferred compensation realized
|
200,000
|
200,000
|
||||||||||
Changes in operating assets and liabilities:
|
-
|
|||||||||||
(Increase)Decrease in prepaid expenses
|
(4,485
|
)
|
(4,485
|
)
|
||||||||
Increase in accrued expenses and other payables - related party
|
1,449,233
|
1,449,233
|
||||||||||
Increase in accounts payable
|
357,238
|
357,238
|
||||||||||
Net Cash Used In Operating Activities
|
(2,132,891
|
)
|
-
|
(2,132,891
|
)
|
|
RESTATED STATEMENTS OF CASH FLOWS
|
|||||||||||
For the Period from April 25, 2006 (Inception) to June 30, 2013
|
For the Period from April 25, 2006 (Inception) to June 30, 2013
|
|||||||||||
As Reported
|
Adjustments
|
Restated
|
||||||||||
Cash Flows From Operating Activities:
|
||||||||||||
Net Loss
|
$
|
(9,015,921
|
)
|
$
|
(400,000
|
)
|
$
|
(9,415,921
|
)
|
|||
Adjustments to reconcile net loss to net cash used in operations
|
||||||||||||
Depreciation expense
|
14,175
|
14,175
|
||||||||||
Stock issuable for services
|
22,000
|
22,000
|
||||||||||
Change in Fair Value of Derivative Liability
|
2,790,703
|
2,790,703
|
||||||||||
Stock issued for services
|
1,458,180
|
1,458,180
|
||||||||||
Warrants issued to employees
|
126,435
|
126,435
|
||||||||||
Warrants issued to consultants
|
168,000
|
400,000
|
568,000
|
|||||||||
Deferred compensation realized
|
200,000
|
200,000
|
||||||||||
Changes in operating assets and liabilities:
|
-
|
|||||||||||
(Increase)Decrease in prepaid expenses
|
(1,577
|
)
|
(1,577
|
)
|
||||||||
Increase in accrued expenses and other payables - related party
|
1,495,838
|
1,495,838
|
||||||||||
Increase in accounts payable
|
468,252
|
468,252
|
||||||||||
Net Cash Used In Operating Activities
|
(2,273,915
|
)
|
-
|
(2,273,915
|
)
|
As of
September 30,
2014
|
As of
December 31,
2013
|
|||||||
Automobile
|
$
|
25,828
|
$
|
25,828
|
||||
Office Equipment
|
5,560
|
5,560
|
||||||
Less Accumulated Depreciation
|
(21,991
|
)
|
(17,295
|
)
|
||||
Total Property and Equipment
|
$
|
9,397
|
$
|
14,093
|
NOTE 5
|
CONVERTIBLE DEBT, DEBT DISCOUNT AND FAIR VALUE MEASUREMENT OF DERIVATIVE FINANCIAL INSTRUMENTS
|
Expected dividends
|
0
|
%
|
||
Expected volatility
|
283.23
|
%
|
||
Expected term
|
10 years
|
|||
Risk free interest rate
|
1.69
|
%
|
||
Expected forfeitures
|
0
|
%
|
Expected dividends
|
0
|
%
|
||
Expected volatility
|
183.35
|
%
|
||
Expected term
|
5 years
|
|||
Risk free interest rate
|
1.50
|
%
|
||
Expected forfeitures
|
0
|
%
|
Grant Date
|
||||
Expected dividends
|
0
|
%
|
||
Expected volatility
|
96.35
|
%
|
Expected term
|
3 years
|
|||
Risk free interest rate
|
1.45
|
%
|
||
Expected forfeitures
|
0
|
%
|
Grant Date
|
||||
Expected dividends
|
0
|
%
|
||
Expected volatility
|
86.94
|
%
|
Expected term
|
2 years
|
|||
Risk free interest rate
|
1.53
|
%
|
||
Expected forfeitures
|
0
|
%
|
Grant Date
|
||||
Expected dividends
|
0
|
%
|
||
Expected volatility
|
86.94
|
%
|
Expected term
|
2 years
|
|||
Risk free interest rate
|
1.53
|
%
|
Grant Date
|
||||
Expected dividends
|
0
|
%
|
||
Expected volatility
|
86.23
|
%
|
Expected term
|
3 years
|
|||
Risk free interest rate
|
1.53
|
%
|
||
Expected forfeitures
|
0
|
%
|
Grant Date
|
||||
Expected dividends
|
0
|
%
|
||
Expected volatility
|
86.23
|
%
|
Expected term
|
3 years
|
|||
Risk free interest rate
|
1.53
|
%
|
||
Expected forfeitures
|
0
|
%
|
Grant Date
|
||||
Expected dividends
|
0
|
%
|
||
Expected volatility
|
123.49
|
%
|
Expected term
|
3 years
|
|||
Risk free interest rate
|
1.53
|
%
|
||
Expected forfeitures
|
0
|
%
|
Grant Date
|
||||
Expected dividends
|
0
|
%
|
||
Expected volatility
|
123.49
|
%
|
Expected term
|
3 years
|
|||
Risk free interest rate
|
1.53
|
%
|
||
Expected forfeitures
|
0
|
%
|
Grant Date
|
||||
Expected dividends
|
0
|
%
|
||
Expected volatility
|
86.69
|
%
|
Expected term
|
3 years
|
|||
Risk free interest rate
|
0.85
|
%
|
||
Expected forfeitures
|
0
|
%
|
|
Number of
Warrants
|
Weighted Average Exercise Price
|
Weighted Average Remaining Contractual Life
(in Years)
|
|||||||||
Balance, December 31, 2011
|
-
|
$
|
-
|
|||||||||
Granted
|
10,000,000
|
0.001
|
||||||||||
Exercised
|
||||||||||||
Cancelled/Forfeited
|
-
|
-
|
||||||||||
Balance, December 31, 2012
|
10,000,000
|
0.001
|
9.90
|
|||||||||
Granted
|
18,000,000
|
$
|
0.001
|
|||||||||
Exercised
|
(10,000,000
|
)
|
$
|
-
|
||||||||
Cancelled/Forfeited
|
-
|
|||||||||||
Balance, December 31, 2013
|
18,000,000
|
$
|
0.001
|
2.9
|
||||||||
Granted
|
10,200,000
|
$
|
0.001
|
|||||||||
Exercised
|
(10,000,000
|
)
|
$
|
-
|
||||||||
Cancelled/Forfeited
|
-
|
|||||||||||
Balance, September 30, 2014
|
18,200,000
|
$
|
0.001
|
2.6
|
||||||||
Intrinsic Value
|
718,180
|
Exercise Price
|
Warrants Outstanding
|
Warrants Exercisable
|
Weighted Average Remaining Contractual Life
|
Aggregate Intrinsic Value
|
||||||||||||||
$
|
0.001
|
18,200,000
|
-
|
2.3
|
718,180
|
Exercise Price
|
Warrants Outstanding
|
Warrants Exercisable
|
Weighted Average Remaining Contractual Life
|
Aggregate Intrinsic Value
|
||||||||||||||
$
|
0.001
|
28,000,000
|
18,000,000
|
2.9
|
918,000
|
●
|
Common stock Class A, unlimited number of shares authorized, no par value
|
●
|
Common stock Class B, unlimited number of shares authorized, no par value
|
●
|
Preferred stock, unlimited number of shares authorized, no par value
|
Series A
PS Valuation
|
||||
Debt converted – related party
|
$
|
(30,000
|
)
|
|
Valuation of Series A PS issued as consideration
|
5,217,800
|
|||
Loss on settlement of debt
|
$
|
5,187,800
|
●
|
Within 30 days of the date of this agreement, a warrant for six hundred thousand shares of the Company’s common stock to be exercisable on the 14 month anniversary of this agreement for a period of 12 months with a cashless exercise provision.
|
●
|
Within 30 days of the date of this agreement, a warrant for one million shares of the Company’s common stock to be exercisable on the 20 month anniversary of this agreement for a period of 12 months with a cashless exercise provision.
|
●
|
Within 30 days of the date of this agreement, a warrant for two million shares of the Company’s common stock to be exercisable on the 32 month anniversary of this agreement for a period of 12 months with a cashless exercise provision.
|
●
|
Based on the consultants reaching two sets of benchmarks, two separate warrants for one million five hundred thousand shares of the Company’s common stock to be exercisable on the 28 month anniversary of this agreement for a period of 12 months with a cashless exercise provision.
|
●
|
On the three year anniversary, assuming the consultant acted in good faith and the Company’s board of directors approval, a warrant for one million five hundred thousand shares of the Company’s common stock to be exercisable on the 28 month anniversary of this agreement for a period of 12 months with a cashless exercise provision.
|
●
|
Calm Seas has purchased an aggregate of $7,500,000 of our Class A common stock; or
|
●
|
The second anniversary from the Effective Date.
|
ASSETS
|
||||||||
December 31,
2013
|
December 31,
2012
|
|||||||
(RESTATED) | ||||||||
Current Assets
|
||||||||
Cash
|
$ | 295,381 | $ | 53,782 | ||||
Prepaid expenses
|
1,743 | 2,270 | ||||||
Loan receivable
|
- | 6,000 | ||||||
Interest receivable
|
- | 192 | ||||||
Total Current Assets
|
297,124 | 62,244 | ||||||
Property and Equipment, net
|
14,093 | 16,508 | ||||||
Total Assets
|
$ | 311,217 | $ | 78,752 | ||||
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
||||||||
Current Liabilities
|
||||||||
Accounts payable and accrued expenses
|
$ | 362,436 | $ | 246,964 | ||||
Current portion of loan payable
|
3,981 | 4,377 | ||||||
Royalty agreement payable - related party
|
64,720 | 66,000 | ||||||
Accounts payable and Accrued expenses - related party
|
1,081,482 | 886,449 | ||||||
Total Current Liabilities
|
1,512,619 | 1,203,790 | ||||||
Long Term Liabilities
|
||||||||
Convertible note payable - net of debt discount
|
- | 5,000 | ||||||
Loan payable, net of current portion
|
- | 4,378 | ||||||
Total Liabilities
|
1,512,619 | 1,213,168 | ||||||
Commitments and Contingencies
|
||||||||
Stockholders' Deficit
|
||||||||
Convertible Preferred stock Series A, no par value;
|
||||||||
2 and none shares issued and outstanding, respectively
|
5,217,800 | - | ||||||
Common stock Class A, no par value; unlimited shares authorized,
|
||||||||
635,241,994 and 604,115,638 shares issued and outstanding, respectively
|
7,810,920 | 6,360,920 | ||||||
Common stock Class B, no par value; unlimited shares authorized,
|
||||||||
no shares issued and outstanding
|
- | - | ||||||
Common Stock Issuable, 1,122,311 and 1,122,311 shares, respectively
|
22,000 | 22,000 | ||||||
Additional paid-in capital
|
2,053,236 | 1,320,337 | ||||||
Deficit accumulated during the development stage
|
(16,305,358 | ) | (8,837,673 | ) | ||||
. | ||||||||
Total Stockholders' Deficit
|
(1,201,402 | ) | (1,134,416 | ) | ||||
Total Liabilities and Stockholders' Deficit
|
$ | 311,217 | $ | 78,752 |
|
For the Years Ended
|
For the Period from April 25, 2006
|
||||||||||
December 31,
2013
|
December 31,
2012
|
(Inception) to
December 31,
2013
|
||||||||||
(RESTATED) | (RESTATED) | |||||||||||
Revenue
|
$ | - | $ | - | $ | - | ||||||
Operating Expenses
|
||||||||||||
General and Administrative
|
1,375,528 | 379,326 | 3,315,030 | |||||||||
Public Relations
|
- | 400,000 | 619,890 | |||||||||
Amortization of Debt Discount
|
- | - | 120,000 | |||||||||
Professional Fees
|
178,373 | 48,667 | 513,448 | |||||||||
Officer's Salary
|
237,134 | 267,120 | 1,840,648 | |||||||||
Contract Settlement
|
- | - | 107,143 | |||||||||
Research and Development
|
489,434 | 465,293 | 1,791,443 | |||||||||
Total Operating Expenses
|
2,280,469 | 1,560,406 | 8,307,602 | |||||||||
Loss from Operations
|
(2,280,469 | ) | (1,560,406 | ) | (8,307,602 | ) | ||||||
Other Income/(Expenses)
|
||||||||||||
Gain on forgiveness of debt
|
6,775 | - | 6,775 | |||||||||
Other income
|
- | 3,000 | 7,881 | |||||||||
Bad debt expense
|
(6,238 | ) | - | (6,238 | ) | |||||||
Interest income
|
47 | 192 | 239 | |||||||||
Loss on settlement of accrued payroll-related party
|
(5,187,800 | ) | - | (5,187,800 | ) | |||||||
Change in fair value of embedded derivative liability
|
- | - | (2,790,185 | ) | ||||||||
Change in fair value of embedded derivative liability-related party
|
- | - | 119,485 | |||||||||
Interest expense
|
- | (45,707 | ) | (147,913 | ) | |||||||
Total Other Income/(Expenses)
|
(5,187,216 | ) | (42,515 | ) | (7,997,756 | ) | ||||||
Net (Loss) before Provision for Income Taxes
|
(7,467,685 | ) | (1,602,921 | ) | (16,305,358 | ) | ||||||
Provision for Income Taxes
|
- | - | - | |||||||||
Net (Loss)
|
$ | (7,467,685 | ) | $ | (1,602,921 | ) | $ | (16,305,358 | ) | |||
Net Income (Loss) Per Share - Basic and Diluted
|
$ | (0.01 | ) | $ | (0.00 | ) | ||||||
Weighted average number of shares outstanding
|
||||||||||||
during the period - Basic and Diluted
|
616,313,968 | 596,143,581 |
Common Stock -
|
||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares
|
Deficit
|
|||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock - Series A
|
Common Stock - Class A
|
Common Stock - Class B
|
To be issued
|
Deferred
|
Accumulated during
|
|||||||||||||||||||||||||||||||||||||||||||
Shares
|
Par
|
Shares
|
Par
|
Shares
|
Par
|
Shares
|
Par
|
APIC
|
Compensation
|
Development Stage
|
Total
|
|||||||||||||||||||||||||||||||||||||
Balance, April 25, 2006
|
- | $ | - | - | $ | - | - | $ | - | - | $ | - | $ | - | - | $ | - | $ | - | |||||||||||||||||||||||||||||
Stock issued to founder
|
- | - | 332,292,000 | 180 | - | - | - | - | - | - | - | 180 | ||||||||||||||||||||||||||||||||||||
Stock issued for services ($.01/share)
|
- | - | 17,500,000 | 140,000 | - | - | - | - | - | - | - | 140,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for services ($.01/share)
|
- | - | 700,000 | 5,600 | - | - | - | - | - | - | - | 5,600 | ||||||||||||||||||||||||||||||||||||
Stock contributed by shareholder
|
- | - | (11,666,500 | ) | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Stock issued for cash ($.05/share)
|
- | - | 4,000 | 200 | - | - | - | - | - | - | - | 200 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.05/share)
|
- | - | 4,000 | 200 | - | - | - | - | - | - | - | 200 | ||||||||||||||||||||||||||||||||||||
Fair value of warrants issued
|
- | - | - | - | - | - | - | - | 126,435 | - | - | 126,435 | ||||||||||||||||||||||||||||||||||||
Net Loss
|
- | - | - | - | - | - | - | - | - | - | (530,321 | ) | (530,321 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2006
|
- | - | 338,833,500 | 146,180 | - | - | - | - | 126,435 | - | (530,321 | ) | (257,706 | ) | ||||||||||||||||||||||||||||||||||
Stock issued for cash ($.01/share)
|
- | - | 1,750,000 | 15,000 | - | - | - | - | - | - | - | 15,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.01/share)
|
- | - | 12,000,000 | 103,000 | - | - | - | - | - | - | - | 103,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.0003/share)
|
- | - | 9,000,000 | 3,000 | - | - | - | - | - | - | - | 3,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.01/share)
|
- | - | 1,875,000 | 15,000 | - | - | - | - | - | - | - | 15,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.01/share)
|
- | - | 1,875,000 | 15,000 | - | - | - | - | - | - | - | 15,000 | ||||||||||||||||||||||||||||||||||||
- | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock issued for services ($.01/share)
|
- | - | 2,000,000 | 16,000 | - | - | - | - | - | - | - | 16,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.01/share)
|
- | - | 13,125,000 | 105,000 | - | - | - | - | - | - | - | 105,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.003/share)
|
- | - | 80,495,000 | 241,485 | - | - | - | - | - | - | - | 241,485 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.003/share)
|
- | - | 200,000 | 600 | - | - | - | - | - | - | - | 600 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.003/share)
|
- | - | 8,300,000 | 24,900 | - | - | - | - | - | - | - | 24,900 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.003/share)
|
- | - | 25,000 | 75 | - | - | - | - | - | - | - | 75 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.003/share)
|
- | - | 120,000 | 360 | - | - | - | - | - | - | - | 360 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.003/share)
|
- | - | 1,025,000 | 3,075 | - | - | - | - | - | 3,075 | ||||||||||||||||||||||||||||||||||||||
Stock issued in connection to cash offering
|
- | - | 28,125,000 | 84,375 | - | - | - | - | (84,375 | ) | - | - | - | |||||||||||||||||||||||||||||||||||
Stock issued for services ($.01/share)
|
- | - | 600,000 | 6,000 | - | - | - | - | - | - | - | 6,000 | ||||||||||||||||||||||||||||||||||||
Net loss, for the year ended December 31, 2007
|
- | - | - | - | - | - | - | - | - | - | (472,986 | ) | (472,986 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2007
|
- | - | 499,348,500 | 779,050 | - | - | - | - | 42,060 | - | (1,003,307 | ) | (182,197 | ) | ||||||||||||||||||||||||||||||||||
Stock issuable for services ($.01/share)
|
- | - | - | - | - | - | 400,000 | 4,000 | - | - | - | 4,000 | ||||||||||||||||||||||||||||||||||||
Net loss, for the year ended December 31, 2008
|
- | - | - | - | - | - | - | - | - | - | (1,721,156 | ) | (1,721,156 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2008
|
- | - | 499,348,500 | 779,050 | - | - | 400,000 | 4,000 | 42,060 | - | (2,724,463 | ) | (1,899,353 | ) | ||||||||||||||||||||||||||||||||||
Stock issued for cash ($.01/share)
|
- | - | 2,500,000 | 25,000 | - | - | - | - | - | - | - | 25,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.008/share)
|
- | - | 366,599 | 3,000 | - | - | - | - | - | - | - | 3,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for services
|
- | - | 280,000 | 14,000 | - | - | 722,311 | 18,000 | - | - | - | 32,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for services
|
- | - | - | - | - | - | 10,000,000 | 200,000 | - | (103,333 | ) | - | 96,667 | |||||||||||||||||||||||||||||||||||
Net loss for the year ended December 31, 2009
|
- | - | - | - | - | - | - | - | - | - | (1,432,091 | ) | (1,432,091 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2009
|
- | - | 502,495,099 | 821,050 | - | - | 11,122,311 | 222,000 | 42,060 | (103,333 | ) | (4,156,554 | ) | (3,174,777 | ) | |||||||||||||||||||||||||||||||||
Stock issued for services ($.01/share)
|
- | - | 540,000 | 5,400 | - | - | - | - | - | (5,000 | ) | - | 400 | |||||||||||||||||||||||||||||||||||
Stock issued for services ($.02/share)
|
- | - | 17,885,915 | 334,000 | - | - | - | - | - | - | - | 334,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for services ($.08/share)
|
- | - | 387,500 | 31,000 | - | - | - | - | - | - | - | 31,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for services ($.15/share)
|
- | - | 200,000 | 30,000 | - | - | - | - | - | - | - | 30,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for services ($.05/share)
|
- | - | 280,000 | 14,000 | - | - | - | - | - | - | - | 14,000 | ||||||||||||||||||||||||||||||||||||
Warrants issued for services
|
- | - | - | - | - | - | - | - | 168,000 | (168,000 | ) | - | - | |||||||||||||||||||||||||||||||||||
Stock issued in connection with convertible note conversion
|
- | - | 5,694,451 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued in connection with convertible note conversion
|
- | - | 854,169 | 15,000 | - | - | - | - | - | - | - | 15,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.02/share)
|
- | - | 10,000,000 | 200,000 | - | - | (10,000,000 | ) | (200,000 | ) | - | - | - | - | ||||||||||||||||||||||||||||||||||
Stock issued for cash ($.01/share)
|
- | - | 4,000,000 | 28,632 | - | - | - | - | - | - | - | 28,632 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.02/share)
|
- | - | 4,513,116 | 70,000 | - | - | - | - | - | - | - | 70,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.08/share)
|
- | - | 1,179,245 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.06/share)
|
- | - | 1,157,407 | 75,000 | - | - | - | - | - | - | - | 75,000 | ||||||||||||||||||||||||||||||||||||
Exercise of 6,000,000 warrants in exchange for stock
|
- | - | 5,177,801 | 10,000 | - | - | - | - | 677,908 | - | - | 687,908 | ||||||||||||||||||||||||||||||||||||
Deferred compensation realized
|
- | - | - | - | - | - | - | - | - | 250,333 | - | 250,333 | ||||||||||||||||||||||||||||||||||||
Forgiveness of accrued payable to related party
|
- | - | - | - | - | - | - | - | 499,412 | 499,412 | ||||||||||||||||||||||||||||||||||||||
Forgiveness of derivative liability to related party
|
- | - | - | - | - | - | - | - | 2,102,795 | 2,102,795 | ||||||||||||||||||||||||||||||||||||||
Net loss for the year ended December 31, 2010
|
- | - | - | - | - | - | - | - | - | - | (1,782,888 | ) | (1,782,888 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2010
|
- | - | 554,364,703 | 1,834,082 | - | - | 1,122,311 | 22,000 | 3,490,175 | (26,000 | ) | (5,939,442 | ) | (619,185 | ) | |||||||||||||||||||||||||||||||||
Stock issued for cash ($.06/share)
|
- | - | 1,470,588 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.05/share)
|
- | - | 2,083,333 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for services ($.07/share)
|
- | - | 1,000,000 | 70,000 | - | - | - | - | - | - | - | 70,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for services ($.07/share)
|
- | - | 1,029,412 | 70,000 | - | - | - | - | - | - | - | 70,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($.07/share)
|
- | - | 1,420,455 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.07/share)
|
- | - | 1,372,119 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.08/share)
|
- | - | 1,314,406 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.06/share)
|
- | - | 1,543,210 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for license ($0.11/share)
|
- | - | 2,200,000 | 242,000 | - | - | - | - | - | - | - | 242,000 | ||||||||||||||||||||||||||||||||||||
Exercise of 20,000,000 warrants in exchange for stock
|
- | - | 19,767,985 | 2,569,838 | - | - | - | - | (2,569,838 | ) | - | - | - | |||||||||||||||||||||||||||||||||||
Deferred compensation realized
|
- | - | - | - | - | - | - | - | - | 26,000 | - | 26,000 | ||||||||||||||||||||||||||||||||||||
Net loss for the year ended December 31, 2011
|
- | - | - | - | - | - | - | - | - | - | (1,295,310 | ) | (1,295,310 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2011
|
- | - | 587,566,211 | 5,385,920 | - | - | 1,122,311 | 22,000 | 920,337 | - | (7,234,752 | ) | (906,495 | ) | ||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.06/share)
|
- | - | 1,562,500 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.04/share)
|
- | - | 2,403,846 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.05/share)
|
- | - | 1,923,077 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.04/share)
|
- | - | 2,155,172 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.02/share)
|
- | - | 1,004,832 | 25,000 | - | - | - | - | - | - | - | 25,000 | ||||||||||||||||||||||||||||||||||||
Shares issued for services ($0.10/share)
|
- | - | 3,000,000 | 300,000 | - | - | - | - | - | - | - | 300,000 | ||||||||||||||||||||||||||||||||||||
Shares issued for services ($0.06/share)
|
- | - | 300,000 | 18,000 | - | - | - | - | - | - | - | 18,000 | ||||||||||||||||||||||||||||||||||||
Shares issued for services ($0.06/share)
|
- | - | 1,600,000 | 96,000 | - | - | - | - | - | - | - | 96,000 | ||||||||||||||||||||||||||||||||||||
Shares issued for services ($0.06/share)
|
- | - | 1,600,000 | 96,000 | - | - | - | - | - | - | - | 96,000 | ||||||||||||||||||||||||||||||||||||
Shares issued for services ($0.04/Share)
|
- | - | 1,000,000 | 40,000 | - | - | - | - | - | - | - | 40,000 | ||||||||||||||||||||||||||||||||||||
Grant 100,000,000 warrants for services
|
- | - | - | - | - | - | - | - | 400,000 | - | - | 400,000 | ||||||||||||||||||||||||||||||||||||
Net loss for the year ended December 31, 2012
|
- | - | - | - | - | - | - | - | - | - | (1,602,921 | ) | (1,602,921 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2012
|
- | - | 604,115,638 | 6,360,920 | - | - | 1,122,311 | 22,000 | 1,320,337 | - | (8,837,673 | ) | (1,134,416 | ) | ||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.05/share)
|
- | - | 961,538 | 50,000 | - | - | - | - | - | - | - | 50,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.05/share)
|
- | - | 945,537 | 50,000 | - | - | - | - | - | - | - | 50,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.06/share)
|
- | - | 822,368 | 50,000 | - | - | - | - | - | - | - | 50,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.08/share)
|
- | - | 884,434 | 75,000 | - | - | - | - | - | - | - | 75,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.06/share)
|
- | - | 3,521,126 | 200,000 | - | - | - | - | - | - | - | 200,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.05/share)
|
- | - | 1,838,235 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.05/share)
|
- | - | 1,923,077 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.05/share)
|
- | - | 2,100,840 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.04/share)
|
- | - | 5,208,334 | 200,000 | - | - | - | - | - | - | - | 200,000 | ||||||||||||||||||||||||||||||||||||
Stock issued for cash ($0.04/share)
|
- | - | 3,063,725 | 125,000 | - | - | - | - | - | - | - | 125,000 | ||||||||||||||||||||||||||||||||||||
Exercise of 10,000,000 warrants in exchange for stock
|
- | - | 9,857,142 | 400,000 | - | - | - | - | (400,000 | ) | - | - | - | |||||||||||||||||||||||||||||||||||
Preferred Stock issued for settlement of accrued payroll-related party
|
2 | 5,217,800 | - | - | - | - | - | - | - | - | - | 5,217,800 | ||||||||||||||||||||||||||||||||||||
Grant 10,000,000 warrants for services
|
- | - | - | - | - | - | - | - | 736,816 | - | - | 736,816 | ||||||||||||||||||||||||||||||||||||
Grant 8,000,000 warrants for services, net of M2M adjustment for unvested warrants
|
- | - | - | - | - | - | - | - | 396,083 | - | - | 396,083 | ||||||||||||||||||||||||||||||||||||
Net loss for the year ended December 31, 2013
|
- | - | - | - | - | - | - | - | - | - | (7,467,685 | ) | (7,467,685 | ) | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2013
|
2 | $ | 5,217,800 | 635,241,994 | $ | 7,810,920 | - | $ | - | 1,122,311 | $ | 22,000 | $ | 2,053,236 | $ | - | $ | (16,305,358 | ) | $ | (1,201,402 | ) |
For the Period from
|
||||||||||||
April 25, 2006 | ||||||||||||
(Inception) to
|
||||||||||||
For the Year Ended December 31, | December 31, | |||||||||||
2013 | 2012 | 2013 | ||||||||||
Cash Flows From Operating Activities:
|
(RESTATED) | (RESTATED) | ||||||||||
Net Loss
|
$ | (7,467,685 | ) | $ | (1,602,921 | ) | $ | (16,305,358 | ) | |||
Adjustments to reconcile net loss to net cash used in operations
|
||||||||||||
Depreciation expense
|
5,888 | 5,583 | 17,294 | |||||||||
Gain on forgiveness of debt
|
(6,775 | ) | (6,775 | ) | ||||||||
Stock issuable for services
|
- | - | 22,000 | |||||||||
Loss on settlement of accrued payroll - related party
|
5,187,800 | - | 5,187,800 | |||||||||
Change in Fair Value of Derivative Liability
|
- | - | 2,790,703 | |||||||||
Stock issued for services
|
- | 550,000 | 1,458,180 | |||||||||
Warrants issued to employees
|
- | - | 126,435 | |||||||||
Warrants issued to consultants
|
1,132,899 | 400,000 | 1,700,899 | |||||||||
Deferred compensation realized
|
- | - | 200,000 | |||||||||
Bad debt expense
|
6,238 | - | 6,238 | |||||||||
Changes in operating assets and liabilities:
|
||||||||||||
(Decrease) in interest receivable | (46) | 0 | (46) | |||||||||
(Increase) Decrease in prepaid expenses
|
527 | (2,270 | ) | (1,743 | ) | |||||||
Increase in accrued expenses and other payables - related party
|
223,749 | 235,377 | 1,593,349 | |||||||||
Increase in accounts payable
|
117,251 | (148,691 | ) | 446,477 | ||||||||
Net Cash Used In Operating Activities
|
(800,154 | ) | (562,922 | ) | (2,764,547 | ) | ||||||
Cash Flows From Investing Activities:
|
||||||||||||
Loan receivable
|
- | - | (6,000 | ) | ||||||||
Interest receivable
|
- | (192 | ) | (192 | ) | |||||||
Purchase of Fixed Assets and Domain Name
|
(3,473 | ) | - | (31,387 | ) | |||||||
Net Cash Used In Investing Activities
|
(3,473 | ) | (192 | ) | (37,579 | ) | ||||||
Cash Flows From Financing Activities:
|
||||||||||||
Proceeds from Notes Payable - Stockholder
|
150,000 | - | 150,000 | |||||||||
Repayments of Notes Payable - Stockholder
|
(150,000 | ) | - | (150,000 | ) | |||||||
Proceeds from issuance of convertible note
|
- | - | 120,000 | |||||||||
Repayments of loan payable
|
(4,774 | ) | (3,513 | ) | 3,980 | |||||||
Proceeds from issuance of common stock
|
1,050,000 | 425,000 | 2,973,527 | |||||||||
Net Cash Provided by Financing Activities
|
1,045,226 | 421,487 | 3,097,507 | |||||||||
Net Increase (Decrease) in Cash
|
241,599 | (141,627 | ) | 295,381 | ||||||||
Cash at Beginning of Period
|
53,782 | 195,409 | - | |||||||||
Cash at End of Period
|
$ | 295,381 | $ | 53,782 | $ | 295,381 | ||||||
Supplemental disclosure of cash flow information:
|
||||||||||||
Cash paid for interest
|
$ | - | $ | - | $ | - | ||||||
Cash paid for taxes
|
$ | - | $ | - | $ | - | ||||||
Supplemental disclosure of non-cash investing and financing activities:
|
||||||||||||
Shares issued in connection with cashless warrants exercise
|
$ | 400,000 | $ | - | $ | 2,969,838 | ||||||
Shares issued for settlement of accrued payroll - related party
|
$ | 30,000 | $ | - | $ | 30,000 | ||||||
Shares issued in connection with convertible note payable
|
$ | - | $ | - | $ | 115,000 | ||||||
Beneficial conversion feature on convertible notes and related debt discount
|
$ | - | $ | - | $ | 120,000 |
December 31,
2013
|
December 31,
2012
|
|||||||
Stock Warrants (Exercise price - $0.001/share)
|
18,000,000
|
10,000,000
|
||||||
Convertible Preferred Stock
|
2
|
2
|
||||||
Total
|
18,000,002
|
18,000,002
|
2013 | 2012 | |||||||
Expected income tax recovery (expense) at the statutory rate of 34%
|
$
|
(2,539,012)
|
$
|
(544,999)
|
||||
Tax effect of expenses that are not deductible for income tax purposes (net of other amounts deductible for tax purposes)
|
2,153,127
|
324,053
|
||||||
Change in valuation allowance
|
385,853
|
220,946
|
||||||
Provision for income taxes
|
$
|
-
|
$
|
-
|
Years Ended December,
|
||||||||
2013
|
2012
|
|||||||
Deferred tax liability:
|
$ | - | $ | - | ||||
Deferred tax asset
|
||||||||
Net Operating Loss Carryforward
|
2,415,595 | 2,029,742 | ||||||
Valuation allowance
|
(2,415,595 | ) | (2,029,742 | ) | ||||
Net deferred tax asset
|
- | - | ||||||
Net deferred tax liability
|
$ | - | $ | - |
2013
|
2012
|
|||||||
Level 1
|
$ | - | $ | - | ||||
Level 2
|
- | - | ||||||
Level 3
|
- | - | ||||||
Total
|
$ | - | $ | - |
RESTATED BALANCE SHEET
|
Note
|
|||||||||||||||
As Reported
|
Adjustments
|
Restated
|
||||||||||||||
Total Assets
|
$ | 78,752 | $ | - | $ | 78,752 | ||||||||||
Total Liabilities
|
$ | 1,213,168 | $ | - | $ | 1,213,168 | ||||||||||
Commitments and Contingencies
|
||||||||||||||||
Stockholders' Deficit
|
||||||||||||||||
Preferred stock, no par value; unlimited shares authorized,
|
||||||||||||||||
none issued and outstanding
|
- | - | - | |||||||||||||
Common stock Class A, no par value; unlimited shares authorized,
|
||||||||||||||||
603,269,838 and 586,720,411 shares issued and outstanding, respectively
|
6,360,920 | - | 6,360,920 | |||||||||||||
Common stock Class B, no par value; unlimited shares authorized,
|
||||||||||||||||
no shares issued and outstanding
|
- | - | - | |||||||||||||
Common Stock Issuable, 1,122,311 and 1,122,311 shares, respectively
|
22,000 | - | 22,000 | 1 | ||||||||||||
Additional paid-in capital
|
920,337 | 400,000 | 1,320,337 | |||||||||||||
Deferred Compensation
|
- | - | - | |||||||||||||
Deficit accumulated during the development stage
|
(8,437,673 | ) | (400,000 | ) | (8,837,673 | ) | 1 | |||||||||
. | ||||||||||||||||
Total Stockholders' Deficit
|
(1,134,416 | ) | - | (1,134,416 | ) | |||||||||||
Total Liabilities and Stockholders' Deficit
|
$ | 78,752 | $ | - | $ | 78,752 |
RESTATED STATEMENT OF OPERATIONS
|
||||||||||||||||
For the Year Ended
|
For the Year Ended
|
|||||||||||||||
December 31, 2012
|
December 31, 2012
|
|||||||||||||||
As Reported
|
Adjustments
|
Restated
|
||||||||||||||
Revenue
|
$ | - | $ | - | ||||||||||||
- | ||||||||||||||||
Operating Expenses
|
- | |||||||||||||||
General and Administrative
|
379,326 | 379,326 | ||||||||||||||
Public Relations
|
- | 400,000 | 400,000 | 1 | ||||||||||||
Amortization of Debt Discount
|
- | - | ||||||||||||||
Professional Fees
|
48,667 | 48,667 | ||||||||||||||
Officer's Salary
|
267,120 | 267,120 | ||||||||||||||
Contract Settlement
|
- | - | ||||||||||||||
Research and Development
|
465,293 | 465,293 | ||||||||||||||
Total Operating Expenses
|
1,160,406 | 400,000 | 1,560,406 | |||||||||||||
- | ||||||||||||||||
Loss from Operations
|
(1,160,406 | ) | (400,000 | ) | (1,560,406 | ) | ||||||||||
- | ||||||||||||||||
Other Income/(Expenses)
|
- | |||||||||||||||
Other income
|
3,000 | 3,000 | ||||||||||||||
Interest income
|
192 | 192 | ||||||||||||||
Change in fair value of embedded derivative liability
|
- | - | ||||||||||||||
Change in fair value of embedded derivative liability-related party
|
- | - | ||||||||||||||
Interest expense
|
(45,707 | ) | (45,707 | ) | ||||||||||||
Other expense
|
- | - | ||||||||||||||
Total Other Income/(Expenses)
|
(42,515 | ) | - | (42,515 | ) | |||||||||||
- | ||||||||||||||||
Net (Income) Loss before Provision for Income Taxes
|
(1,202,921 | ) | (400,000 | ) | (1,602,921 | ) | ||||||||||
- | ||||||||||||||||
Provision for Income Taxes
|
- | - | - | |||||||||||||
- | ||||||||||||||||
Net Income (Loss)
|
$ | (1,202,921 | ) | $ | (400,000 | ) | $ | (1,602,921 | ) | |||||||
- | ||||||||||||||||
Net Income (Loss) Per Share - Basic and Diluted
|
$ | (0.00 | ) | $ | (0.00 | ) | ||||||||||
Weighted average number of shares outstanding
|
||||||||||||||||
during the period - Basic and Diluted
|
596,143,581 | 596,143,581 |
RESTATED STATEMENT OF OPERATIONS
|
||||||||||||||||
For the Period from April 25, 2006 (Inception) to December 31, 2012
|
For the Period from April 25, 2006 (Inception) to December 31, 2012
|
|||||||||||||||
As Reported
|
Adjustments
|
Restated
|
||||||||||||||
Revenue
|
$ | - | $ | - | ||||||||||||
- | ||||||||||||||||
Operating Expenses
|
- | |||||||||||||||
General and Administrative
|
1,939,502 | 1,939,502 | ||||||||||||||
Public Relations
|
219,890 | 400,000 | 619,890 | 1 | ||||||||||||
Amortization of Debt Discount
|
120,000 | 120,000 | ||||||||||||||
Professional Fees
|
335,075 | 335,075 | ||||||||||||||
Officer's Salary
|
1,603,514 | 1,603,514 | ||||||||||||||
Contract Settlement
|
107,143 | 107,143 | ||||||||||||||
Research and Development
|
1,302,009 | 1,302,009 | ||||||||||||||
Total Operating Expenses
|
5,627,133 | 400,000 | 6,027,133 | |||||||||||||
- | ||||||||||||||||
Loss from Operations
|
(5,627,133 | ) | (400,000 | ) | (6,027,133 | ) | ||||||||||
- | ||||||||||||||||
Other Income/(Expenses)
|
- | |||||||||||||||
Other income
|
7,881 | 7,881 | ||||||||||||||
Interest income
|
192 | 192 | ||||||||||||||
Change in fair value of embedded derivative liability
|
(2,790,185 | ) | (2,790,185 | ) | ||||||||||||
Change in fair value of embedded derivative liability-related party
|
119,485 | 119,485 | ||||||||||||||
Interest expense
|
(147,913 | ) | (147,913 | ) | ||||||||||||
Total Other Income/(Expenses)
|
(2,810,540 | ) | - | (2,810,540 | ) | |||||||||||
- | ||||||||||||||||
Net (Income) Loss before Provision for Income Taxes
|
(8,437,673 | ) | (400,000 | ) | (8,837,673 | ) | ||||||||||
- | ||||||||||||||||
Provision for Income Taxes
|
- | - | - | |||||||||||||
- | ||||||||||||||||
Net Income (Loss)
|
$ | (8,437,673 | ) | $ | (400,000 | ) | $ | (8,837,673 | ) |
RESTATED STATEMENTS OF CASH FLOWS
|
||||||||||||||||
For the Year Ended
|
For the Year Ended
|
|||||||||||||||
December 31, 2012
|
December 31, 2012
|
|||||||||||||||
As Reported
|
Adjustments
|
Restated
|
||||||||||||||
Cash Flows From Operating Activities:
|
||||||||||||||||
Net Loss
|
$ | (1,202,921 | ) | $ | (400,000 | ) | $ | (1,602,921 | ) | 1 | ||||||
Adjustments to reconcile net loss to net cash used in operations
|
||||||||||||||||
Depreciation expense
|
5,583 | 5,583 | ||||||||||||||
Stock issuable for services
|
- | - | ||||||||||||||
Change in Fair Value of Derivative Liability
|
- | - | ||||||||||||||
Stock issued for services
|
550,000 | 550,000 | ||||||||||||||
Warrants issued to employees
|
- | - | ||||||||||||||
Warrants issued to consultants
|
- | 400,000 | 400,000 | |||||||||||||
Deferred compensation realized
|
- | - | ||||||||||||||
Changes in operating assets and liabilities:
|
- | |||||||||||||||
(Increase)Decrease in prepaid expenses
|
(2,270 | ) | (2,270 | ) | ||||||||||||
(Increase)Decrease in other receivables
|
- | |||||||||||||||
Increase in accrued expenses and other payables - related party
|
238,977 | 238,977 | ||||||||||||||
Increase in accounts payable
|
(152,291 | ) | (152,291 | ) | ||||||||||||
Net Cash Used In Operating Activities
|
(562,922 | ) | - | (562,922 | ) |
RESTATED STATEMENTS OF CASH FLOWS
|
||||||||||||||||
For the Period from April 25, 2006 (Inception) to December 31, 2012
|
For the Period from April 25, 2006 (Inception) to December 31, 2012
|
|||||||||||||||
As Reported
|
Adjustments
|
Restated
|
||||||||||||||
Cash Flows From Operating Activities:
|
||||||||||||||||
Net Loss
|
$ | (8,437,673 | ) | $ | (400,000 | ) | $ | (8,837,673 | ) | 1 | ||||||
Adjustments to reconcile net loss to net cash used in operations
|
||||||||||||||||
Depreciation expense
|
11,406 | 11,406 | ||||||||||||||
Stock issuable for services
|
22,000 | 22,000 | ||||||||||||||
Change in Fair Value of Derivative Liability
|
2,790,703 | 2,790,703 | ||||||||||||||
Stock issued for services
|
1,458,180 | 1,458,180 | ||||||||||||||
Warrants issued to employees
|
126,435 | 126,435 | ||||||||||||||
Warrants issued to consultants
|
168,000 | 400,000 | 568,000 | 1 | ||||||||||||
Deferred compensation realized
|
200,000 | 200,000 | ||||||||||||||
Changes in operating assets and liabilities:
|
- | |||||||||||||||
(Increase)Decrease in prepaid expenses
|
(2,270 | ) | (2,270 | ) | ||||||||||||
Increase in accrued expenses and other payables - related party
|
1,369,600 | 1,369,600 | ||||||||||||||
Increase in accounts payable
|
329,226 | 329,226 | ||||||||||||||
Net Cash Used In Operating Activities
|
(1,964,393 | ) | - | (1,964,393 | ) |
As of
December 31,
2013
|
As of
December 31,
2012
|
|||||||
Automobile
|
$
|
25,828
|
$
|
25,828
|
||||
Office Equipment
|
5,560
|
2,086
|
||||||
Less Accumulated Depreciation
|
(17,295
|
)
|
(11,406
|
)
|
||||
Total Property and Equipment
|
$
|
14,093
|
$
|
16,508
|
Expected dividends
|
0 | % | ||
Expected volatility
|
283.23 | % | ||
Expected term
|
10 years
|
|||
Risk free interest rate
|
1.69. | % | ||
Expected forfeitures
|
0 | % |
Expected dividends
|
0 | % | ||
Expected volatility
|
183.35 | % | ||
Expected term
|
5 years
|
|||
Risk free interest rate
|
1.50. | % | ||
Expected forfeitures
|
0 | % |
Grant Date
|
|||||
Expected dividends
|
0 | % | |||
Expected volatility
|
96.35 | % |
Expected term
|
3 years
|
||||
Risk free interest rate
|
1.45. | % | |||
Expected forfeitures
|
0 | % |
Number of Warrants | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (in Years) | ||||||||||
Balance, December 31, 2011 | - | $ | - | |||||||||
Granted | 10,000,000 | 0.001 | ||||||||||
Exercised | ||||||||||||
Cancelled/Forfeited | - | - | ||||||||||
Balance, December 31, 2012 | 10,000,000 | 0.001 | 9.90 | |||||||||
Granted | 18,000,000 | $ | 0.001 | |||||||||
Exercised | (10,000,000 | ) | $ | - | ||||||||
Cancelled/Forfeited | - | |||||||||||
Balance, December 31, 2013 | 18,000,000 | $ | 0.001 | 2.9 | ||||||||
Intrinsic Value | 918,000 |
Exercise Price | Warrants Outstanding | Warrants Exercisable | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value | ||||||||||||||
$ | 0.001 | 28,000,000 | 18,000,000 | 2.9 | 918,000 |
Exercise Price | Warrants Outstanding | Warrants Exercisable | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value | ||||||||||||||
$ | 0.001 | 10,000,000 | 10,000,000 | 9.895890411 | 365,000 |
●
|
Common stock Class A, unlimited number of shares authorized, no par value
|
●
|
Common stock Class B, unlimited number of shares authorized, no par value
|
●
|
Preferred stock, unlimited number of shares authorized, no par value
|
Series A PS Valuation
|
||||
Debt converted – related party
|
$ | (30,000 | ) | |
Valuation of Series A PS issued as consideration
|
5,217,800 | |||
Loss on settlement of debt
|
$ | 5,187,800 |
●
|
Within 30 days of the date of this agreement, a warrant for six hundred thousand shares of the Company’s common stock to be exercisable on the 14 month anniversary of this agreement for a period of 12 months with a cashless exercise provision.
|
●
|
Within 30 days of the date of this agreement, a warrant for one million shares of the Company’s common stock to be exercisable on the 20 month anniversary of this agreement for a period of 12 months with a cashless exercise provision.
|
●
|
Within 30 days of the date of this agreement, a warrant for two million shares of the Company’s common stock to be exercisable on the 32 month anniversary of this agreement for a period of 12 months with a cashless exercise provision.
|
●
|
Based on the consultants reaching two sets of benchmarks, two separate warrants for one million five hundred thousand shares of the Company’s common stock to be exercisable on the 28 month anniversary of this agreement for a period of 12 months with a cashless exercise provision.
|
●
|
On the three year anniversary, assuming the consultant acted in good faith and the Company’s board of directors approval, a warrant for one million five hundred thousand shares of the Company’s common stock to be exercisable on the 28 month anniversary of this agreement for a period of 12 months with a cashless exercise provision.
|
»
|
We expect to spend approximately $105,000 per quarter through October 2015 on collaborative research and development of high strength polymers at the University of Notre Dame. If our financing will allow, management will give strong consideration to accelerating the pace of spending on research and development within the University of Notre Dame’s laboratories.
|
||
»
|
We expect to spend approximately $13,700 on collaborative research and development of high strength polymers and spider silk protein at the University of Wyoming over the next twelve months. This level of research spending at the university is also a requirement of our licensing agreement with the university. If our financing will allow, management will give strong consideration to accelerating the pace of spending on research and development within the University of Wyoming’s laboratories.
|
||
»
|
We will actively consider pursuing collaborative research opportunities with other university laboratories in the area of high strength polymers. If our financing will allow, management will give strong consideration to increasing the depth of our research to include polymer production technologies that are closely related to our core research
|
||
»
|
We will consider buying an established revenue producing company in a compatible business, in order to broaden our financial base and facilitate the commercialization of our products. We expect to use a combination of stock and cash for any such purchase.
|
||
»
|
We will also actively consider pursuing collaborative research opportunities with both private and university laboratories in areas of research which overlap the company’s existing research and development. One such potential area for collaborative research which the company is considering is protein expression platforms. If our financing will allow, management will give strong consideration to increasing the breadth of our research to include protein expression platform technologies.
|
||
»
|
We plan to actively pursue collaborative research and product testing, opportunities with companies in the biotechnology, materials, textile and other industries.
|
||
»
|
We plan to actively pursue collaborative commercialization, marketing and manufacturing opportunities with companies in the textile and material sectors for the fibers we developed and for any new polymers that we create in 2014.
|
||
»
|
We plan to actively pursue the development of commercial scale production of our recombinant materials including Monster SilkTM.
|
Three months ended 9/30/2014 | Three months ended 9/30/2013 | |||||||
General and Administrative Expenses
|
$ | 31,328 | $ | 772,503 | ||||
Professional Fees
|
$ | 30,119 | $ | 13,111 |
Nine months ended 9/30/2014 | Nine months ended 9/30/2013 | |||||||
Professional Fees
|
$ | 112,828 | $ | 144,594 | ||||
Research and Development Expenses
|
$ | 292,940 | $ | 330,407 |
Year Ended
12/31/2013
|
Year Ended
12/31/2012
|
|||||||
General and Administrative Expenses
|
$ | 1,375,528 | $ | 379,326 | ||||
Public Relation Services Fees
|
$ | 0 | $ | 400,000 | ||||
Professional Fees
|
$ | 178,373 | $ | 48,667 |
-
|
Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period; and
|
-
|
Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account (e.g., inventory for pension-related amounts) instead of directly to income or expense.
|
NAME
|
AGE
|
POSITION
|
DATE APPOINTED
|
|||
Kim Thompson
|
53 |
President, Chief Executive Officer, Director
|
April 25, 2006
|
|||
Jonathan R. Rice
|
35 |
Chief Operating Officer
|
January 20, 2015 |
Name and principal position
|
Year
|
Salary
($)
|
Bonus
($)
|
Stock Awards
($)
|
Option Awards
($)
|
Non-Equity Incentive Plan Compensation
($)
|
Nonqualified Deferred Compensation Earnings ($)
|
All Other Compensation
($)
|
Total
($)
|
|||||||||||||||||||||||||
Kim Thompson
|
||||||||||||||||||||||||||||||||||
President, CEO, CFO and Director
|
2013
|
$
|
237,134
|
0
|
0
|
$
|
0
|
0
|
$
|
0
|
$
|
8,793
|
(1)
|
$
|
245,927.00
|
|||||||||||||||||||
2012
|
$
|
222,600
|
44,520
|
0
|
$
|
0
|
0
|
$
|
0
|
$
|
40,950.81
|
(2)
|
$
|
308,070.81
|
1)
|
In 2013, Kim Thompson received $8,793 in medical insurance and medical reimbursement pursuant to an employment agreement entered into with us.
|
2)
|
In 2012, Kim Thompson received $10,950.81 in medical insurance and medical reimbursement, and $30,000 in retirement fund contributions pursuant to an employment agreement entered into with us.
|
Title of Class
|
Name and Address of Beneficial Owner
|
Amount and Nature
of Beneficial Owner
|
Percent of
Class (1)
|
|||||||
Class A Common Stock
|
Kim Thompson
|
268,058,612
|
(2) |
39.8
|
%
|
|||||
120 N. Washington Square, Suite 805
|
||||||||||
Lansing, MI 48933
|
||||||||||
Class A Common Stock
|
All executive officers and directors as a group (1 Person)
|
268,058,612
|
39.8
|
%
|
||||||
Series A Preferred Stock
|
Kim Thompson
|
2
|
100
|
%
|
||||||
120 N. Washington Square, Suite 805
|
||||||||||
Lansing, MI 48933
|
||||||||||
Series A Preferred Stock
|
All executive officers and directors as a group (1 Person)
|
2
|
100
|
%
|
Securities and Exchange Commission registration fee
|
$
|
573.91
|
||
Transfer Agent Fees
|
$
|
300.00
|
||
Accounting fees and expenses
|
$
|
4,500.00
|
||
Legal fees and expenses
|
$
|
18,500.00
|
||
Total
|
$
|
23,873.91
|
Sean March
|
40,000,000
|
|||
Nicholas G. Kontos
|
22,500,000
|
|||
Edward M. Defeudis
|
8,300,000
|
|||
Woodland Hills Fund, SA
|
6,000,000
|
|||
Coral Springs Fund, SA
|
3,000,000
|
|||
Kristin Lee Sirota
|
100,000
|
|||
Ann Harvey
|
100,000
|
|||
Barry S. Wattenberg
|
100,000
|
|||
Lucie Rousse
|
100,000
|
|||
Karen E. Gallagher
|
60,000
|
|||
Kyan W. Kraus
|
60,000
|
|||
Carlos E. Gauch
|
50,000
|
|||
Sarah Ferreira
|
50,000
|
|||
Caroline Sirota
|
50,000
|
|||
Priscila Ferreira
|
25,000
|
|||
Gene Defeudis
|
8,300,000
|
|||
Heidi Thompson
|
50,000
|
|||
Frank Thompson
|
50,000
|
|||
Jonathan Sweet
|
100,000
|
|||
Gary Lam
|
25,000
|
|||
Frank Dantimo
|
60,000
|
|||
Denise M Demarco Dantimo
|
60,000
|
|||
Sirota & Associates PA
|
540,000
|
|||
JR Acquisitions & Consultants
|
280,000
|
|||
Marcos A. Lopez, Jr.
|
25,000
|
|||
Olga C. Lopez
|
25,000
|
|||
Camila Camargo
|
25,000
|
|||
Bizmar Martinez
|
25,000
|
|||
Michelle Y. Galletto
|
25,000
|
|||
Inversiones G & G Corp.
|
25,000
|
|||
Douglas Nicaragua
|
25,000
|
|||
Michael L. Price
|
30,000
|
EXHIBIT NUMBER
|
DESCRIPTION
|
|
3.1
|
Articles of Incorporation (1)
|
|
3.2
|
Articles of Amendment (3)
|
|
3.3
|
Articles of Amendment, filed with the Wyoming Secretary of State on November 15, 2013 (6)
|
|
3.2
|
Articles of Amendment, filed with the Wyoming Secretary of State on December 17, 2013 (7)
|
|
3.3
|
By-Laws (1)
|
|
5.1
|
Opinion of Ofsink, LLC (9)
|
|
10.1
|
Employment Agreement, dated November 10, 2010, by and between Kraig Biocraft Laboratories, Inc. and Kim Thompson (8)
|
|
10.2
|
Securities Purchase Agreement between Kraig Biocraft Laboratories and Worth Equity Fund, L.P. and Mutual Release (1)
|
|
10.3
|
Securities Purchase Agreement between Kraig Biocraft Laboratories and Lion Equity (1)
|
|
10.4
|
Amended Letter Agreement, dated September 14, 2009, by and between Kraig Biocraft Laboratories and Calm Seas Capital, LLC (3)
|
|
10.5
|
Exclusive License Agreement, effective as of May 8, 2006, by and between The University of Wyoming and Kraig Biocraft Laboratories, Inc. (2)
|
|
10.6
|
Addendum to the Founder’s Stock Purchase and Intellectual Property Transfer Agreement, dated December 26, 2006, and the Founder’s Stock Purchase and Intellectual Property Transfer Agreement dated April 26, 2006 (3)
|
|
10.7
|
Intellectual Property/Collaborative Research Agreement, dated March 20, 2010, by and between Kraig Biocraft Laboratories and The University of Notre Dame du Lac. (2)
|
|
10.8
|
Letter Agreement, dated June 28, 2011, by and between Kraig Biocraft Laboratories and Calm Seas Capital, LLC (4)
|
|
10.9
|
Letter Agreement, dated April 30, 2013, by and between Kraig Biocraft Laboratories and Calm Seas Capital, LLC (5)
|
|
10.10
|
Letter Agreement, dated October 2, 2014, by and between Kraig Biocraft Laboratories and Calm Seas Capital, LLC (10)
|
|
10.11 |
License Agreement, dated October 28, 2011, between the Company and University of Notre Dame du Lac. (12)
|
|
10.12 |
Intellectual Property / Collaborative Research Agreement, dated June 6, 2012, between the Company and University of Notre Dame du Lac. (12)
|
|
10.13 |
Collaborative Yarn and Textile Development Agreement, dated September 30, 2013, between the Company and Warwick Mills, Inc. (12)
|
|
10.14 |
Employment Agreement, dated January 19, 2015, between the Company and Mr. Jonathan R. Rice. (11)
|
|
Consent of M&K CPAs*
|
||
Consent of PS Stephenson & Co., P.C.*
|
||
23.3
|
Consent of Ofsink, LLC, contained in Exhibit 5.1
|
KRAIG BIOCRAFT LABORATORIES, INC.
|
|||
March 9, 2015
|
By:
|
/s/ Kim Thompson | |
Kim Thompson
|
|||
President, Chief Executive Officer | |||
Principal Financial and Accounting Officer
and Chairman of the Board of Directors
|
KRAIG BIOCRAFT LABORATORIES, INC.
|
|||
March 9, 2015
|
By:
|
/s/ Kim Thompson | |
Kim Thompson
|
|||
President, Chief Executive Officer,
Principal Financial and Accounting Officer
and Chairman of the Board of Directors
|
|||
1 Year Kraig Biocraft Laborator... (QB) Chart |
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