Our Management's Discussion and Analysis contains not only statements that are
historical facts, but also statements that are forward-looking (within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934). Forward-looking statements are, by their very
nature, uncertain and risky. These risks and uncertainties include
international, national and local general economic and market conditions;
demographic changes; our ability to sustain, manage, or forecast growth; our
ability to successfully make and integrate acquisitions; existing government
regulations and changes in, or the failure to comply with, government
regulations; adverse publicity; competition; fluctuations and difficulty in
forecasting operating results; changes in business strategy or development
plans; business disruptions; the ability to attract and retain qualified
personnel; the ability to protect technology; and other risks that might be
detailed from time to time in our filings with the
Although the forward-looking statements in this Annual Report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by them. Consequently, and because forward-looking statements are inherently subject to risks and uncertainties, the actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. You are urged to carefully review and consider the various disclosures made by us in this report and in our other reports as we attempt to advise interested parties of the risks and factors that may affect our business, financial condition, and results of operations and prospects.
Summary Overview
We were strictly a research-based company that intended to discover cures for PTSD, cancer and various other diseases. In order to fund on-going research and development in these areas, we developed a line of topical hemp oil pain relief products. We began selling these pain relief products in January of 2017 with a single product and currently have eight topical pain relief products.
Through our continued development and expansion of proprietary drugs and treatments, we have reorganized the company into six technology centers: (1) extra-corporeal treatment of disease, (2) PTSD treatment, (3) anti-breast cancer drugs, (4) hemp oil/CBD pain relief products, (5) anti-aging treatments, and (6) chemical and alcohol addiction treatment.
Pain Management Products
We have developed and are now marketing all-natural, hemp-oil based products that are pesticide and solvent free. These products provide generalized, neuropathic and localized topical pain relief.
We offer alternatives to dangerous and addictive opioid pain killers. In the past year we have rapidly expanded our product offerings, and we now offer nine pain relief products that are leaders in the pain-relief field:
1.
96-hour pain relief patch with 50 mg of hemp oil extract, the highest level of pain relief ingredient available in the industry;
2.
120 mg/ 10 ml water-based roll-on applicator;
3.
150 mg/ 10 ml oil-based roll-on applicator;
4.
150 mg/ 30 ml oil-based pump spray applicator;
5.
150 mg/ 2 oz. ointment;
6.
200 mg/10 ml oil-based roll-on applicator;
7.
500 mg/ 30 ml oil-based pump spray applicator; and
8.
500 mg/ 1 oz. ointment.
We believe that this eight-product array positions us favorably in the topical pain relief marketplace. The topical pain relief market is expected to grow rapidly in the next few years, due to the focus on reduction of opioid pain medication use, and we intend to be a major player in that expanding market.
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Now that we have completed the product design and development phase, we are aggressively embarking on the product distribution and sales phase by:
1.
Expanding our online sales beyond our web site at: www.painreliefmeds.com;
2.
Securing the services of a social media coordinator to ensure that we optimize that promotional tool;
3.
Recruiting a National Sales Director to coordinate our growing field of sales representatives and distributors;
4.
Securing the services of a sales organization with expertise in marketing to the government and senior care facilities;
5.
Engaging an investor relations firm to facilitate television appearances designed to gain optimum exposure for our company and its products;
6.
Appearing in radio and television broadcasts, and podcasts, via Uptick Newswire periodically to ensure that our story gets out to the public; and
7.
Retaining the services of marketing firms to promote the Company and its products through social media.
8.
Establishing relationships with major distributors who will blanket specialized sales outlets such as pharmacies, doctors' offices, convenience stores, long-term care facilities, large retail facilities, etc.
In addition, we are in the process of seeking potential partnerships outside
Customers indicate that they were able to achieve pain relief from our products and stop the use of opioid painkillers. Public awareness of the harmful side effects of opioid painkillers has grown significantly, and many states have initiated litigation against drug makers claiming they misrepresented the risks of opioid painkillers. As patients seek to cut back their use of opioid painkillers and look for alternatives, we believe demand for our products will see an increase. We intend to petition national insurance agencies to urge them to consider covering the use of our all-natural pain relief products as a safe alternative to opioid painkillers.
Financing
In the past, as we worked through the development of our products, we have relied heavily on financing through various issuances of common stock, warrants and convertible debt. As our sales grow, we expect to find financing solutions in the future that help us expand our operations, avoid dilution to our shareholders, and ultimately increase our company valuation.
Through the remainder of 2020, we will continue to market our pain management products and seek a wider distribution network through the negotiation of distribution agreements with large pharmacy chains, military branches, government agencies, senior care facilities and international partners.
Through our reorganization into six technology centers, we are positioned to take advantage of opportunities to individually sell, license or commercialize the technologies produced within each of these centers to suitable investment partners, without dilutive equity issuances. In the long run, we believe that this will be most beneficial to our investors.
Going Concern
As a result of our current financial condition, we have received a report from
our independent registered public accounting firm for our financial statements
for the years ended
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Results of Operations for the Year Ended
Introduction
We had revenues of
Revenues and Net Operating Loss
Our revenues, operating expenses, and net operating loss for the years ended
Year Ended Year Ended December 31, December 31, Increase / 2019 2018 (Decrease) Revenue$14,281 $39,795 $(25,514) Cost of goods sold 12,860 113,727 (100,867) Gross profit (loss) 1,421 (73,932) 75,353 Operating expenses: General and administrative 200,644 189,285 11,359 Professional fees 127,512 429,625 (302,113) Total operating expenses 328,156 618,910 (290,754) Net operating loss (326,735) (692,842) 366,107 Other income (expense) (47,735) 293,956 (341,691) Net loss$(374,470) $(398,886) $24,416 Revenues
The Company was established on
General and Administrative
General and administrative expenses were
Professional Fees
Professional fees expense was
Net Operating Loss
Net operating loss for the year ended
21 Other Income (Expense)
Other income (expense) for the year ended
Net Loss
Net loss for the year ended
Liquidity and Capital Resources
Introduction
During the year ended
Our cash, current assets, total assets, current liabilities, and total liabilities as ofDecember 31, 2019 andDecember 31, 2018 , respectively, are as follows: December 31, 2019 December 31, 2018 Change Cash$71,197 $86,827 $(15,630) Total Current Assets 93,720 159,787 (66,067) Total Assets 100,943 164,990 (64,047)
Total Current Liabilities 1,933,761 2,312,382 (378,621)
Total Liabilities
Our cash decreased by
Our current liabilities decreased by
In order to repay our obligations in full or in part when due, we will be required to raise significant capital from other sources. There is no assurance, however, that we will be successful in these efforts.
Cash Requirements
Our cash on hand as of
22 Sources and Uses of Cash Operations
Our net cash used in operating activities for the years ended
Investments
Our net cash used in investing activities for the years ended
Financing
Our net cash provided by financing activities for the years ended
Critical Accounting Policies and Estimates
See Note 1 to the Financial Statements for the year ended
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