Item 8.01 Other Events
On
As previously reported, on
As of the date of this report, the Company does not have estimated results of
operations for the three months ended
Effect of COVID-19 on our Business
Our present business is primarily the marketing and sale of the COVID-19 test
kits, which we are marketing pursuant our distribution agreements with
Co-Diagnostics Inc. which we entered into in
· Sales of medical products and services have declined dramatically as medical practices have closed or substantially reduced their operations, with the result that they do not require either products or supplies from us. · Our suppliers have substantially reduced, if not closed, their business, with no assurance that they will be either willing or able to provide us with products after the economic slowdown ceases. · Our suppliers may not continue in business and we may not be able to develop alternative sources of supply. · We are incurring additional operating expenses without offsetting revenue. · Those medical practices that engaged us for services or purchased products from us may find other sources of products and services or may not operate as independent medical practices. · Our reliance on Co-Diagnostics for the test kits and the ability and willingness of Co-Diagnostics to fill our orders in a timely manner and to continue our agreements in effect since the agreements can be terminated by either party at any time. · Because steps taken by states to reduce the spread of COVID-19, our employees are working from home and using their personal computer, which could result is security breaches with respect to information maintained by us. · Our ability to obtain on reasonable terms the viral RNA extractions and qPCR equipment in view of the worldwide demand for such products, with any failure to obtain the viral RNA extractions and qPCR equipment impairing our ability to sell the Co-Diagnostics test kits.. · Our ability to sell Co-Diagnostics test kits. · Our ability to raise financing for our operations may be affected by both the willingness and ability of potential financing sources to invest in an undercapitalized business, particularly at a time when the potential financing source may need to devote its resources to existing portfolio companies which may be in need of financing. · Although COVID-19 test businesses might seem to be attractive to investors, until and unless we generate sufficient revenue and cash flow from our COVID-19 test business to demonstrate to investors that we have a meaningful and continuing COVID-19 test business, particularly in view of theSEC's action to suspend trading in our common stock, it will be difficult for us to raise funds for our business. 2
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
Date:
By: /s/Douglas Samuelson Douglas Samuelson Chief Financial Officer 3
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