UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): March 21, 2017

 

REGEN BIOPHARMA, INC.

(Exact name of small business issuer as specified in its charter)

 

Nevada 45-5192997

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

Commission File No. 333-191725

 

4700 Spring Street, St 304, La Mesa, California 91942

(Address of Principal Executive Offices)

 

(619) 702 1404

(Issuer’s telephone number)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

  1  

 

 

ITEM 4.02      Non-Reliance on Previously Issued Financial Statements.

On March 21, 2017, the Board of Directors of Regen Biopharma, Inc. (the “Company”) concluded that the previously issued Balance Sheet, Statement of Operations and Statement of Cash Flow for the quarter ended March 31, 2015 filed with the Company’s Form 10-Q for the quarter ended March 31, 2015 should not be relied upon. 

The Company determined that the recognition of $8,179,432 of expenses recognized during the quarter ended March 31, 2015 resulting from the issuance for less than fair value of common shares in satisfactions of convertible notes issued by the Company should not have been recognized.

 

The following tables reflect the corrections:

 

REGEN BIOPHARMA , INC.            
BALANCE SHEET            
             
    As of   Adjustments   As of
    March 31, 2015       March 31, 2015
    (unaudited)       (unaudited)
            as restated
ASSETS            
CURRENT ASSETS                        
Cash     521,974               521,974  
Note Receivable     12,051               12,051  
Accrued Interest Receivable     784               784  
     Total Current Assets     534,809               534,809  
                         
                         
TOTAL ASSETS     534,809               534,809  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY                        
Current Liabilities:                        
Bank Overdraft     0               0  
Accounts payable     16,207               16,207  
Notes Payable     133,751               133,751  
Accrued payroll taxes     2,976               2,976  
Accrued Interest     14,635               14,635  
Accrued Reent     5,000               5,000  
Accrued Payroll     7,501               7,501  
Total Current Liabilities     180,070               180,070  
Total Liabilities     180,070               180,070  
                         
STOCKHOLDERS' EQUITY (DEFICIT)                        
Common Stock ($.0001 par value) 500,000,000 shares authorized;                        
  109,310,811   issued and outstanding as of                        
   march 31, 2015, 2014 and 51,907,917 shares issuedand outstanding September  30, 2014     10,932               10,932  
Preferred Stock, 0.0001 par value, 100,000,000 authorized and Five Million authorized as of                        
March 31, 2015 and September 30, 2014 respectively                        
Series A Preferred     5,714               5,714  
90,000,000 Authorized and 0 authorized,                        
57,134, 079 and 0 outstanding as of March 31, 2105 and September 30, 2014 respectively                        
Series AA Preferred     3               3  
$0.0001 par value 600,000 authorized and 30, 000  and 0 outstanding as of March 31, 2015                        
and September 30, 2014 respectively                        
Additional Paid in capital     9,905,102       (8,179,432 )     1,725,670  
Contributed Capital     743,658               743,658  
Retained Earnings (Deficit) accumulated during the development stage     (10,310,670 )     8,179,432       (2,131,238 )
Total Stockholders' Equity (Deficit)     354,739               354,739  
                         
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)     534,809               534,809  

 

  2  

 

 

 

REGEN BIOPHARMA , INC.
STATEMENT OF OPERATIONS
                         
      Three months ended        Adjustments       Three months ended        Six Months ended       Adjustments       Six Months ended  
      March 31, 2015               March 31, 2015       March 31, 2015               March 31, 2015  
      (unaudited)               (unaudited)       (unaudited)               (unaudited)  
                      as restated                       as restated  
REVENUES     0               0       0               0  
                                                 
COST AND EXPENSES                                                
Research and Development     22,969               22,969       25,206               25,206  
General and Administrative     303,536               303,536       442,989               442,989  
Consulting and Professional Fees     279,913               279,913       339,761               339,761  
Rent     15,000               15,000       26,871               26,871  
Total Costs and Expenses     621,419               621,419       834,828               834,828  
                                                 
OPERATING LOSS     (621,419 )             (621,419 )     (834,828 )             (834,828 )
                                                 
OTHER INCOME & (EXPENSES)                                                
Interest Income     291               291       551               551  
Interest Expense     (9,188 )             (9,188 )     (15,230 )             (15,230 )
Capital contribution tp parent     0               0                          
Loss on issuance of common shares for                                                
less than fair value     (8,179,432 )     8,179,432       0       (8,179,432 )     8,179,432       0  
Preferred shares issued pursuant to                                                
contractual obligations     (3,154 )             (3,154 )     (3,154 )             (3,154 )
                                                 
TOTAL OTHER INCOME (EXPENSE)     (8,191,483 )             (12,051 )     (8,197,265 )             (17,833 )
                                                 
NET INCOME (LOSS)     (8,812,901 )             (633,470 )     (9,032,092 )             (852,660 )
BASIC AND FULLY DILUTED                                                
EARNINGS (LOSS) PER SHARE     (0.1224 )             (0.0088 )     (0.0970 )             (0.0092 )
WEIGHTED AVERAGE NUMBER OF COMMON     71,986,230               71,986,230       93,139,424               93,139,424  
SHARES OUTSTANDING                                                

 

 

  3  

 

 

REGEN BIOPHARMA , INC.            
STATEMENT OF CASH FLOWS            
(unaudited)            
             
        Six Months Ended   Adjustments   Six Months Ended
        March 31, 2015       March 31, 2015
                as restated
CASH FLOWS FROM OPERATING ACTIVITIES                        
                         
Net Income (loss)           $ (9,032,092 )   $ 8,179,432     $(852,660)
Adjustments to reconcile net Income to net cash                        
                         
Preferred Stock issued for Expenses           $ 100             $100
Preferred Stock issued for interest           $ 891             $891
Common Stock issued for expenses                        
Preferred Stock issued pursuant to contractual obligations           $ 3,154             $3,154
Common Stock issued to Consultants           $ 226,177             $226,177
Preferred Stock issued to Consultants           $ 420             $420
Changes in operating assets and liabilities:                        
Increase (Decrease) in Accounts Payable           $ 12,902             $12,902
(Increase) Decrease in Notes Receivable           $ (1,629 )           $(1,629)
(Increase) Decrease in Interest  Receivable           $ (551 )           $(551)
Increase ( Decrease) in Bank Overdraft           $ (6,137 )           $(6,137)
Increase (Decrease) in accrued Expenses           $ 19,437             $19,437
Net Cash Provided by (Used in) Operating Activities           $ (8,777,329 )           $(597,897)
                       
CASH FLOWS FROM FINANCING ACTIVITIES                        
Common Stock issued for Cash             0             0
Increase in Contributed Capital             85,000             85,000
Increase ( Decrease)  in Notes Payable             19,582             19,582
Increase in Convertible Notes payable             882,686             882,686
Increase in issuance of stock below fair value             8,179,432       (8,179,432 )   (0)
Increase in Additional Paid in Capital             132,603             132,603
Net Cash Provided by (Used in) Financing Activities           9,299,303             1,119,871
                         
Net Increase (Decrease) in Cash           $ 521,974             $521,974.40
                         
Cash at Beginning of Period             0             0
                         
Cash at End of Period           $ 521,974             $521,974

 

  4  

 

 

On March 21, 2017, the Board of Directors of Regen Biopharma, Inc. (the “Company”) concluded that the previously issued Balance Sheet, Statement of Operations and Statement of Cash Flow for the quarter ended June 30, 2015 filed with the Company’s Form 10-Q for the quarter ended June 30, 2015 should not be relied upon.

The Company determined that $730,000 of expenses recognized during the quarter ended June 30, 2015 resulting from the issuance for less than fair value of common shares in satisfactions of convertible notes issued by the Company should not have been recognized.

 

The following tables reflect the corrections:

  

REGEN BIOPHARMA , INC.            
BALANCE SHEET            
             
    As of   adjustments   As of
    June 30, 2015       June 30, 2015
    (unaudited)       (unaudited)
            restated
ASSETS            
CURRENT ASSETS                        
Cash     208,582               208,582  
Note Receivable     12,051               12,051  
Prepaid Expenses     6,289               6,289  
Accrued Interest Receivable     1,081               1,081  
     Total Current Assets     228,003               228,003  
                         
                         
TOTAL ASSETS     228,003               228,003  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY                        
Current Liabilities:                        
Accounts payable     1,190               1,190  
Notes Payable     103,751               103,751  
Accrued payroll taxes     6,692               6,692  
Accrued Interest     18,147               18,147  
Accrued Rent     5,000               5,000  
Accrued Payroll     10,501               10,501  
Total Current Liabilities     145,281               145,281  
Total Liabilities     145,281               145,281  
                         
STOCKHOLDERS' EQUITY (DEFICIT)                        
Common Stock ($.0001 par value) 500,000,000 shares authorized;                        
    113,525,096 issued and outstanding as of                        
   June 30, 2015 and 51,907,917 shares issued and outstanding September  30, 2014     11,353               11,353  
Preferred Stock, 0.0001 par value, 100,000,000 authorized and Five Million authorized as of                        
June 30, 2015 and September 30, 2014 respectively                        
Series A Preferred     6,055               6,055  
90,000,000 Authorized and 0 authorized,                        
60,548,364 and 0 outstanding as of  June 30, 2105 and September 30, 2014 respectively                        
Series AA Preferred     3               3  
$0.0001 par value 600,000 authorized and 30, 000  and 0 outstanding as of June 30, 2015                        
and September 30, 2014 respectively                        
Additional Paid in capital     11,209,694       (8,909,432 )     2,300,262  
Contributed Capital     728,658               728,658  
Retained Earnings (Deficit) accumulated during the development stage     (11,873,041 )     8,909,432       (2,963,609 )
Total Stockholders' Equity (Deficit)     82,722               82,722  
                         
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)     228,003               228,003  

  5  

 

 

REGEN BIOPHARMA , INC.
STATEMENT OF OPERATIONS
                         
      Three months ended        adjustments       Three months ended        Nine Months Ended        adjustments       Nine Months Ended   
      June 30, 2015               June 30, 2015       June 30, 2015               June 30, 2015  
      (unaudited)               (unaudited)       (unaudited)               (unaudited)  
                      (as restated)                       (as restated)  
REVENUES     0               0       0               0  
                                                 
COST AND EXPENSES                                                
Research and Development     68,081               68,081       93,287               93,287  
General and Administrative     463,765               463,765       906,754               906,754  
Consulting and Professional Fees     73,364               73,364       413,125               413,125  
Rent     16,200               16,200       43,071               43,071  
Total Costs and Expenses     621,410               621,410       1,456,238               1,456,238  
                                                 
OPERATING LOSS     (621,410 )             (621,410 )     (1,456,238 )             (1,456,238 )
                                                 
OTHER INCOME & (EXPENSES)                                                
Interest Income     297               297       848               848  
Refunds of amounts previously paid                                                
Interest Expense     (3,512 )             (3,512 )     (18,742 )             (18,742 )
Capital contribution to parent     0               0       0               0  
Loss on issuance of common shares for                                                
less than fair value     (937,425 )     730,000       (207,425 )     (9,116,857 )     8,909,432       (207,425 )
Preferred shares issued pursuant to                                                
contractual obligations     (321 )             (321 )     (3,475 )             (3,475 )
                                                 
TOTAL OTHER INCOME (EXPENSE)     (940,961 )             (210,961 )     (9,138,226 )             (228,794 )
                                                 
NET INCOME (LOSS)     (1,562,371 )             (832,371 )     (10,594,463 )             (1,685,032 )
BASIC AND FULLY DILUTED                                                
EARNINGS (LOSS) PER SHARE     (0.0141 )             (0.0075 )     (0.1333 )             (0.0212 )
WEIGHTED AVERAGE NUMBER OF COMMON     110,648,054               110,648,054       79,454,728               79,454,728  
SHARES OUTSTANDING                                                

 

 

  6  

 

 

 

REGEN BIOPHARMA , INC.            
STATEMENT OF CASH FLOWS            
(unaudited)            
             
    Nine  Months Ended   Adjustments   Nine  Months Ended
   

June 30,

2015

     

June 30,

2015

            Restated
CASH FLOWS FROM OPERATING ACTIVITIES                        
                         
Net Income (loss)   $ (10,594,463 )     8909432       (1,685,032 )
Adjustments to reconcile net Income to net cash                        
                         
Preferred Stock issued for Expenses   $ 100               100  
Predrred Stock issued for interest   $ 891               891  
Common Stock issued for expenses                        
Preferred Stock issued pursuant to contractual obligations   $ 3,475               3,475  
Common Stock issued to Consultants   $ 226,177               226,177  
Preferred Stock issued to Consultants   $ 440               440  
Changes in operating assets and liabilities:                        
Increase (Decrease) in Accounts Payable   $ (2,115 )             (2,115 )
(Increase) Decrease in Notes Receivable   $ (1,629 )             (1,629 )
(Increase) Decrease in Interest  Receivable   $ (848 )             (848 )
Increase ( Decrease) in Bank Overdraft   $ (6,137 )             (6,137 )
Increase (Decrease) in accrued Expenses   $ 29,665               29,665  
(Increase) Decrease in Prepaid Expenses   $ (6,289 )             (6,289 )
Increase in issuance of stock below fair value   $ 9,116,857       (8,909,432 )     207,425  
Increase in Additional Paid in Capital   $ 380,191               380,191  
Net Cash Provided by (Used in) Operating Activities   $ (853,686 )             (853,685 )
                         
CASH FLOWS FROM FINANCING ACTIVITIES                        
Common Stock issued for Cash     0               0  
Increase in Contributed Capital     70,000               70,000  
Increase ( Decrease)  in Notes Payable     19,582               19,582  
Increase in Convertible Notes payable     972,686               972,686  
                         
Net Cash Provided by (Used in) Financing Activities     1,062,268               1,062,268  
                         
Net Increase (Decrease) in Cash   $ 208,582               208,583  
                         
Cash at Beginning of Period     0               0  
                         
Cash at End of Period   $ 208,582               208,583  

 

  7  

 

 

On March 21, 2017, the Board of Directors of Regen Biopharma, Inc. (the “Company”) concluded that the previously issued Balance Sheet, Statement of Operations, Statement of Shareholder’s Equity, Statement of Comprehensive Income and Statement of Cash Flow for the year ended September 30, 2015 filed with the Company’s Form 10-K for the year ended September 30, 2015 should not be relied upon.

The Company determined that the recognition of $ 8,984,432 of expenses recognized during the year ended September 30, 2015 resulting from the issuance for less than fair value of common shares in satisfactions of convertible notes issued by the Company should not have been recognized.

 

The following tables reflect the corrections:

 

REGEN BIOPHARMA , INC.            
BALANCE SHEET            
             
    As of   Amendments   As of
    September 30, 2015       September 30, 2015
            (Restated)
ASSETS            
CURRENT ASSETS                        
Cash     38,620               38,620  
Note Receivable     12,051               12,051  
Prepaid Expenses     10,000               10,000  
Accrued Interest Receivable     1,381               1,381  
     Total Current Assets     62,052               62,052  
                         
OTHER ASSETS                        
Available for Sale Securities     158,400               158,400  
Total Other Assets     158,400               158,400  
                         
TOTAL ASSETS     220,452               220,452  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY                        
Current Liabilities:                        
Accounts payable     25,854               25,854  
Notes Payable     222,751               222,751  
Accrued payroll taxes     1,940               1,940  
Accrued Interest     21,093               21,093  
Accrued Rent     10,000               10,000  
Accrued Payroll     36,001               36,001  
Total Current Liabilities     317,639               317,639  
Total Liabilities     317,639               317,639  
                         
STOCKHOLDERS' EQUITY (DEFICIT)                        
Common Stock ($.0001 par value) 500,000,000 shares authorized;                        
    114,753,938 issued and outstanding as of                        
  September 30, 2015 and 51,907,917 shares issued and outstanding September  30, 2014     11,474               11,474  
Preferred Stock, 0.0001 par value, 100,000,000 authorized and Five Million authorized as of                        
September 30, 2015 and September 30, 2014 respectively                        
Series A Preferred     6,098               6,098  
90,000,000 Authorized and 0 authorized,                        
60,981,697 and 0 outstanding as of  September  30, 2105 and September 30, 2014 respectively                        
Series AA Preferred     3               3  
$0.0001 par value 600,000 authorized and 30, 000  and 0 outstanding as of September  30, 2015                        
and September 30, 2014 respectively                        
Additional Paid in capital     11,663,905       (8,984,432 )     2,679,473  
Contributed Capital     728,658               728,658  
Retained Earnings (Deficit) accumulated during the development stage     (12,473,725 )     8,984,432       (3,489,293 )
Accumulated Other Comprehensive Income     (33,600 )             (33,600 )
Total Stockholders' Equity (Deficit)     (97,187 )             (97,187 )
                         
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)     220,452               220,452  

 

  8  

 

REGEN BIOPHARMA , INC.            
STATEMENT OF OPERATIONS            
             
      Year Ended               Year Ended  
      September 30, 2015       Adjustments       September 30, 2015  
                      Restated  
REVENUES     192,000               192,000  
                         
COST AND EXPENSES                        
Research and Development     282,295               282,295  
General and Administrative     1,314,208               1,314,208  
Consulting and Professional Fees     516,701               516,701  
Rent     58,071               58,071  
Total Costs and Expenses     2,171,276               2,171,276  
                         
OPERATING LOSS     (1,979,276 )             (1,979,276 )
                         
OTHER INCOME & (EXPENSES)                        
Interest Income     1,148               1,148  
Refunds of amounts previously paid     0               0  
Interest Expense     (21,688 )             (21,688 )
Capital contribution tp parent                        
Loss on issuance of common shares for                        
less than fair value     (9,191,857 )     8,984,432       (207,425 )
Preferred shres issued pursuant to                        
contractual obligations     (3,475 )             (3,475 )
                         
TOTAL OTHER INCOME (EXPENSE)     (9,215,872 )             (231,440 )
                         
NET INCOME (LOSS)     (11,195,147 )             (2,210,715 )
BASIC AND FULLY DILUTED                        
EARNINGS (LOSS) PER SHARE     (0.1270 )             (0.0251 )
WEIGHTED AVERAGE NUMBER OF COMMON     88,185,098               88,185,098  
SHARES OUTSTANDING                        

  9  

 

 

REGEN BIOPHARMA, INC.
STATEMENT OF COMPREHENSIVE INCOME
 
    Year Ended September 30,
            (as restated)
    2015   adjustments   2015
Net Income (Loss)   $ (11,195,147 )     8,984,432     $ (2,210,716 )
Add:                        
     Unrealized Gains on Securities     0               0  
Less:                        
     Unrealized Losses on Securities     (33,600 )             (33,600 )
     Total Other Comprehensive Income (Loss)     (33,600 )             (33,600 )
Comprehensive Income   $ (11,228,747 )             (2,244,316 )

  10  

 

REGEN BIOPHARMA , INC.            
STATEMENT OF CASH FLOWS            
             
             
             
    Year Ended   Adjustments   Year Ended
    September 30, 2015       September 30, 2015
            (Restated)
CASH FLOWS FROM OPERATING ACTIVITIES                        
                         
Net Income (loss)     (11,195,147 )     8,984,432       (2,210,716 )
Adjustments to reconcile net Income to net cash                        
                         
Securities Received as Payment for Services     (192,000 )             (192,000 )
Preferred Stock issued for Expenses     100               100  
Predrred Stock issued for interest     891               891  
Common Stock issued for expenses                        
Preferred Stock issued pursuant to contractual obligations     3,475               3,475  
Common Stock issued to Consultants     307,955               307,955  
Preferred Stock issued to Consultants     450               450  
Changes in operating assets and liabilities:                        
Increase (Decrease) in Accounts Payable     22,549               22,549  
(Increase) Decrease in Notes Receivable     (1,629 )             (1,629 )
(Increase) Decrease in Interest  Receivable     (1,148 )             (1,148 )
Increase ( Decrease) in Bank Overdraft     (6,137 )             (6,137 )
Increase (Decrease) in accrued Expenses     58,359               58,359  
(Increase) Decrease in Prepaid Expenses     (10,000 )             (10,000 )
Increase in issuance of stock below fair value     9,191,857       (8,984,432 )     207,425  
Increase in Additional Paid in Capital     627,778               627,778  
Net Cash Provided by (Used in) Operating Activities     (1,192,648 )             (1,192,648 )
                         
CASH FLOWS FROM FINANCING ACTIVITIES                        
Common Stock issued for Cash     33,333               33,333  
Preferred Stock issued for Cash     16,667               16,667  
Increase in Contributed Capital     70,000               70,000  
Increase ( Decrease)  in Notes Payable     138,582               138,582  
Increase in Convertible Notes payable     972,686               972,686  
                         
Net Cash Provided by (Used in) Financing Activities     1,231,268               1,231,268  
                         
Net Increase (Decrease) in Cash   $ 38,620               38,620  
                         
Cash at Beginning of Period     0               0  
                         
Cash at End of Period   $ 38,620               38,620  

  11  

 

REGEN BIOPHARMA , INC.
Statement of shareholder's equity
For the years ended  September 30, 2015 and 2014
                 
                 
    Quarter Ended March 31, 2015             Adjustment       As Restated  
APIC   Loss on Issuance of Securities  for Less than fair value recognized during quarter     8,179,432       (8,179,432 )     0  
Accumulated Deficit   Net Loss     (8,812,902 )     8,179,432       (633,470 )
    Quarter Ended June 30 2015                        
APIC   Loss on Issuance of Securities  for Less than fair value recognized during quarter     937,425       (730,000 )     207,425  
Accumulated Deficit   Net Loss     (1,562,371 )     730000       (832,371 )
    Quarter Ended September  30 2015                        
APIC   Loss on Issuance of Securities  for Less than fair value recognized during quarter     75,000       (75,000 )     0  
Accumulated Deficit   Net Loss     (600,684 )     75,000       (525,684 )

 

  12  

 

 

On March 21, 2017, the Board of Directors of Regen Biopharma, Inc. (the “Company”) concluded that the previously issued Balance Sheet, Statement of Operations, Statement of Comprehensive Income and Statement of Cash Flow for the quarter ended December 31, 2015 filed with the Company’s Form 10-Q for the quarter ended December 31, 2015 should not be relied upon.

The Company determined that the recognition of $ 1,163,313 of expenses recognized during the period resulting from the issuance for less than fair value of equity securities should not have been recognized.

The following tables reflect the corrections:

REGEN BIOPHARMA , INC.                
BALANCE SHEET                
                 
    As of       As of   As of
    December 31, 2015       December 31, 2015   September 30, 2015
    (unaudited)   Adjustments   (unaudited)    
            restated    
ASSETS                
CURRENT ASSETS                                
Cash     168,517               168,517       38,620  
Note Recievable     12,051               12,051       12,051  
Prepaid Expenses     1,000               1,000       10,000  
Accrued Interest Recievable     1,681               1,681       1,381  
Due from Former Employees     15,000               15,000          
     Total Current Assets     198,249               198,249       62,052  
                                 
OTHER ASSETS                                
Available for Sale Securities     120,000               120,000       158,400  
Total Other Assets     120,000               120,000       158,400  
                                 
TOTAL ASSETS     318,249               318,249       220,452  
                                 
LIABILITIES AND STOCKHOLDERS' EQUITY                                
Current Liabilities:                                
Bank Overdraft     0               0       0  
Accounts payable     27,646               27,646       25,854  
Notes Payable     168,050               168,050       222,751  
Accrued payroll taxes     5,771               5,771       1,940  
Accrued Interest     26,095               26,095       21,093  
Accrued Reent     10,000               10,000       10,000  
Accrued Payroll     52,663               52,663       36,001  
Due to Shareholder     50,000               50,000          
Total Current Liabilities     340,225               340,225       317,639  
Total Liabilities     340,225               340,225       317,639  
                                 
STOCKHOLDERS' EQUITY (DEFICIT)                                
Common Stock ($.0001 par value) 500,000,000 shares authorized;                                
    114,753,938 issued and outstanding as of                                
  September 30, 2015 and 124,287,272 shares issuedand outstanding December 31, 2015     12,427               12,427       11,474  
Preferred Stock, 0.0001 par value, 800,000,000 authorized and 100,000,000 authorized as of                                
December 31,  2015 and September 30, 2015 respectively                                
Series A Preferred     8,025               8,025       6,098  
90,000,000 Authorized and 300,000,000 authorized,                                
60,981,697 and 80,248,364 outstanding as of  September  30, 2105 and December 31, 2015 respectively                                
Series AA Preferred     3               3       3  
$0.0001 par value 600,000 authorized and 30, 000   outstanding as of September  30, 2015                                
and December 31, 2015                                
Additional Paid in capital     13,632,102       (10,147,746 )     3,484,356       11,663,905  
Contributed Capital     728,658               728,658       728,658  
Retained Earnings (Deficit) accumulated during the development stage     (14,331,191 )     (10,147,746 )     (4,183,446 )     (12,473,725 )
Accumulated Other Comprehensive Income     (72,000 )             (72,000 )     (33,600 )
Total Stockholders' Equity (Deficit)     (21,976 )             (21,976 )     (97,187 )
                                 
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)     318,249               318,249       220,452  

 

  13  

 

 

REGEN BIOPHARMA , INC.            
STATEMENT OF OPERATIONS            
(unaudited)            
             
      Quarter Ended        Adjustments       Quarter Ended      Quarter Ended
      December 31, 2015               December 31, 2015     December 31, 2014
                      (restated)  
REVENUES     0               0     0
                         
COST AND EXPENSES                        
Research and Development     105,323               105,323     2,237
General and Administrative     488,596               488,596     139,453
Consulting and Professional Fees     80,533               80,533     59,848
Rent     15,000               15,000     11,871
Total Costs and Expenses     689,452               689,452     213,409
                         
OPERATING LOSS     (689,452 )             (689,452 )   (213,409)
                         
OTHER INCOME & (EXPENSES)                        
Interest Income     300               300     260
Refunds of amounts previously paid                        
Interest Expense     (5,001 )             (5,001 )   (6,042)
Loss on issuance of common shares for                        
less than fair value     (1,163,313 )     1,163,313       0  
                         
TOTAL OTHER INCOME (EXPENSE)     (1,168,014 )             (4,701 )   (5,782)
                         
NET INCOME (LOSS)     (1,857,466 )             (694,153 )   (219,191)
BASIC AND FULLY DILUTED                        
EARNINGS (LOSS) PER SHARE     (0.0157 )             (0.0059 )   (0.0042)
WEIGHTED AVERAGE NUMBER OF COMMON                        
SHARES OUTSTANDING     118,216,582               118,216,582     52,000,576

 

  14  

 

 

REGEN BIOPHARMA,INC.

STATEMENT OF COMPREHENSIVE INCOME

(unaudited)
    Quarter  Ended December 31
    2015   2015
              (restated)  
Net Income (Loss)   $ (1,857,466)    1,163,313 $ (694,153)  
Add:                
     Unrealized Gains on Securities     0       0  
Less:                
     Unrealized Losses on Securities     (38,400)       (38,400)  
     Total Other Comprehensive Income (Loss)     (38,400)       (38,400)  
Comprehensive Income   $ (1,895,866)       (732,553)  

 

  15  

 

REGEN BIOPHARMA , INC.            
STATEMENT OF CASH FLOWS            
(unaudited)            
             
    Three Months Ended   Adjustments   Three Months Ended
    December 31, 2015       December 31, 2015
            Restated
CASH FLOWS FROM OPERATING ACTIVITIES                        
                         
Net Income (loss)   $ (1,857,466 )   $ 1,163,313     $ (694,153 )
Adjustments to reconcile net Income to net cash                        
                         
Common Stock issued to Consultants                        
Preferred Stock issued to Consultants   $ 40             $ 40  
Changes in operating assets and liabilities:                        
Increase (Decrease) in Accounts Payable   $ 1,792             $ 1,792  
(Increase) Decrease in Notes Receivable   $ —               $ —    
(Increase) Decrease in Interest  Receivable   $ (300 )           $ (300 )
Increase ( Decrease) in Bank Overdraft                        
Increase (Decrease) in accrued Expenses   $ 25,495             $ 25,495  
(Increase) Decrease in Prepaid Expenses   $ 9,000             $ 9,000  
(Increase)Decrease in Due from Former Employee   $ (15,000 )           $ (15,000 )
Increase in issuance of stock below fair value     1,163,313       (1,163,313 )     0  
Increase in Additional Paid in Capital     247,723               247,723  
Net Cash Provided by (Used in) Operating Activities   $ (425,403 )           $ (425,403 )
CASH FLOWS FROM FINANCING ACTIVITIES                        
Common Stock issued for Cash     321,667               321,667  
Preferred Stock issued for Cash     238,334               238,334  
Increase in Contributed Capital                        
Increase ( Decrease)  in Notes Payable     (54,701 )             (54,701 )
Increase in Convertible Notes payable                        
Increase in Due to Shareholder     50,000               50,000  
Net Cash Provided by (Used in) Financing Activities     555,300               555,300  
                         
Net Increase (Decrease) in Cash     129,897               129,897  
                         
Cash at Beginning of Period     38,620               38,620  
                         
Cash at End of Period   $ 168,517             $ 168,517  

  16  

 

 

On March 21, 2017, the Board of Directors of Regen Biopharma, Inc. (the “Company”) concluded that the previously issued Balance Sheet, Statement of Operations, Statement of Comprehensive Income and Statement of Cash Flow for the quarter ended March 31, 2016 filed with the Company’s Form 10-Q for the quarter ended March 31, 2016 should not be relied upon.

The Company determined that the recognition of $ 364,822 of expenses recognized during the period resulting from the issuance for less than fair value of equity securities should not have been recognized.

The following tables reflect the corrections:

REGEN BIOPHARMA,INC.            
BALANCE SHEET            
             
    As of   Adjustments   As of
    March 31, 2016       March 31, 2016
    (unaudited)       Restated
ASSETS            
CURRENT ASSETS                        
Cash     106,024               106,024  
Note Recievable     12,051               12,051  
Prepaid Expenses     1,000               1,000  
Accrued Interest Recievable     1,978               1,978  
Due from Former Employees     15,000               15,000  
     Total Current Assets     136,053               136,053  
                         
OTHER ASSETS                        
Available for Sale Securities     56,800               56,800  
Total Other Assets     56,800               56,800  
                         
TOTAL ASSETS     192,853               192,853  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY                        
Current Liabilities:                        
Bank Overdraft     0               0  
Accounts payable     21,283               21,283  
Notes Payable     228,050               228,050  
Accrued payroll taxes     1,946               1,946  
Accrued Interest     31,184               31,184  
Accrued Rent     15,000               15,000  
Accrued Payroll     92,996               92,996  
Due to Shareholder     0               0  
Total Current Liabilities     390,459               390,459  
Long Term Liabilities                        
Convertible Notes Payable     58,295               58,295  
Total Long Term Liabilities     58,295               58,295  
Total Liabilities     448,754               448,754  
                         
STOCKHOLDERS' EQUITY (DEFICIT)                        
Common Stock ($.0001 par value) 500,000,000 shares authorized;                        
    114,753,938 issued and outstanding as of                        
  September 30, 2015 and 128,253,138 shares issuedand outstanding March  31, 2016     12,824               12,824  
Preferred Stock, 0.0001 par value, 800,000,000 authorized and 100,000,000 authorized as of                        
December 31,  2015 and September 30, 2015 respectively                        
Series A Preferred     8,488               8,488  
90,000,000 Authorized and 300,000,000 authorized,                        
60,981,697 and 84,881,697 outstanding as of  September  30, 2105 and March 31, 2016 respectively                        
Series AA Preferred     3               3  
$0.0001 par value 600,000 authorized and 30, 000   outstanding as of September  30, 2015                        
and March  31, 2016                        
Additional Paid in capital     14,551,402       (10,512,568 )     4,038,835  
Contributed Capital     728,658               728,658  
Retained Earnings (Deficit) accumulated during the development stage     (15,422,076 )     10,512,568       (4,909,508 )
Accumulated Other Comprehensive Income     (135,200 )             (135,200 )
Total Stockholders' Equity (Deficit)     (255,901 )             (255,900 )
                         
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)     192,853               192,853  

  17  

 

REGEN BIOPHARMA , INC.            
STATEMENT OF OPERATIONS            
(unaudited)            
             
      Six Months Ended               Six Months Ended  
      March 31, 2016       adjustments       March 31, 2016  
                      (restated)  
REVENUES     0               0  
                         
COST AND EXPENSES                        
Research and Development     277,919               277,919  
General and Administrative     923,831               923,831  
Consulting and Professional Fees     178,080               178,080  
Rent     30,000               30,000  
Total Costs and Expenses     1,409,830               1,409,830  
                         
OPERATING LOSS     (1,409,830 )             (1,409,830 )
                         
OTHER INCOME & (EXPENSES)                        
Interest Income     597               597  
Refunds of amounts previously paid                        
Interest Expense     (10,090 )             (10,090 )
Interest Expense attributable to                        
Amortization of Discount     (894 )             (894 )
Loss on issuance of common shares for                        
less than fair value     (1,528,135 )     1,528,135       0  
Preferred shares issued pursuant to                        
contractual obligations                        
TOTAL OTHER INCOME (EXPENSE)     (1,538,522 )             (10,387 )
                         
NET INCOME (LOSS)     (2,948,352 )             (1,420,217 )
BASIC AND FULLY DILUTED                        
EARNINGS (LOSS) PER SHARE     (0.0188 )             (0.0091 )
WEIGHTED AVERAGE NUMBER OF COMMON                        
SHARES OUTSTANDING     156,418,573               156,418,573  

  18  

 

REGEN BIOPHARMA , INC.            
STATEMENT OF OPERATIONS            
(unaudited)            
             
      Quarter Ended               Quarter Ended  
      March 31, 2016       adjustments       March 31, 2016  
                      (restated)  
REVENUES     0               0  
                         
COST AND EXPENSES                        
Research and Development     172,596               172,596  
General and Administrative     435,236               435,236  
Consulting and Professional Fees     97,547               97,547  
Rent     15,000               15,000  
Total Costs and Expenses     720,379               720,379  
                         
OPERATING LOSS     (720,379 )             (720,379 )
                         
OTHER INCOME & (EXPENSES)                        
Interest Income     297               297  
Refunds of amounts previously paid                        
Interest Expense     (5,089 )             (5,089 )
Interest Expense attributable to                        
Amortrization of Discount     (894 )             (894 )
Loss on issuance of common shares for                        
less than fair value     (364,822 )     364,822       0  
Preferred shres issued pursuant to                        
contractual obligations                        
TOTAL OTHER INCOME (EXPENSE)     (370,508 )             (5,686 )
                         
NET INCOME (LOSS)     (1,090,886 )             (726,064 )
BASIC AND FULLY DILUTED                        
EARNINGS (LOSS) PER SHARE     (0.0087 )             (0.0058 )
WEIGHTED AVERAGE NUMBER OF COMMON                        
SHARES OUTSTANDING     124,875,119               124,875,119  

  19  

 

STATEMENT OF COMPREHENSIVE INCOME            
(unaudited)            
    Quarter  Ended March  31
    2016   Adjustments   2016
            (restated)
Net Income (Loss)     (1,090,886 )     364,822       (726,064 )
Add:                        
     Unrealized Gains on Securities     —                 —    
Less:                        
     Unrealized Losses on Securities     (63,200 )             (63,200 )
     Total Other Comprehensive Income (Loss)     (63,200 )             (63,200 )
Comprehensive Income     (1,154,086 )             (789,264 )
                         
                         
      Six Months  Ended March  31
                      (restated)  
      2016                  
Net Income (Loss)     (2,948,352 )     1,528,135       (1,420,217 )
Add:                        
     Unrealized Gains on Securities     —                 —    
Less:                        
     Unrealized Losses on Securities     (101,600 )             (101,600 )
     Total Other Comprehensive Income (Loss)     (101,600 )             (101,600 )
Comprehensive Income     (3,049,952 )             (1,521,817 )

 

 

  20  

 

 

REGEN BIOPHARMA , INC.            
STATEMENT OF CASH FLOWS            
(unaudited)            
             
             
    Six Months Ended   adjustments   Six Months Ended
    March 31 2016       March 31 2016
            (restated)
CASH FLOWS FROM OPERATING ACTIVITIES                        
                         
Net Income (loss)     (2,948,352 )   $ 1,528,135       (1,420,217 )
Adjustments to reconcile net Income to net cash                        
                         
Preferred Stock Issued for Expenses                        
Preferred Stock issued for Interest                        
Preferred Stock issued pursuant to contractual obligations                        
Common Stock issued to Consultants                        
Preferred Stock issued to Consultants     40               40  
Increase (Decrease) in Interest expense attributable to amortization of Discount     894               894  
Changes in operating assets and liabilities:                        
Increase (Decrease) in Accounts Payable     (4,571 )             (4,571 )
(Increase) Decrease in Notes Receivable                        
(Increase) Decrease in Interest  Receivable     (597 )             (597 )
Increase ( Decrease) in Bank Overdraft                        
Increase (Decrease) in accrued Expenses     72,093               72,093  
(Increase) Decrease in Prepaid Expenses     9,000               9,000  
(Increase)Decrease in Due from Former Employee     (15,000 )             (15,000 )
Increase in issuance of stock below fair value     1,528,135     $ (1,528,135 )     0  
Increase in Additional Paid in Capital     495,462               495,462  
Net Cash Provided by (Used in) Operating     (862,896 )             (862,896 )
Activities                        
CASH FLOWS FROM FINANCING ACTIVITIES                        
Common Stock issued for Cash     475,000               475,000  
Preferred Stock issued for Cash     350,001               350,001  
Increase in Contributed Capital                        
Increase ( Decrease)  in Notes Payable     5,299               5,299  
Increase in Convertible Notes payable     100,000               100,000  
                         
                         
Increase in Due to Shareholder     0               0  
Net Cash Provided by (Used in) Financing                        
Activities     930,300               930,300  
                         
Net Increase (Decrease) in Cash     67,404               67,404  
                         
Cash at Beginning of Period     38,620               38,620  
                         
Cash at End of Period     106,024               106,024  

 

  21  

 

 

On March 21, 2017, the Board of Directors of Regen Biopharma, Inc. (the “Company”) concluded that the previously issued Balance Sheet, Statement of Operations, Statement of Comprehensive Income and Statement of Cash Flow for the quarter ended June 30, 2016 filed with the Company’s Form 10-Q for the quarter ended June 30, 2016 should not be relied upon.

The Company determined that the recognition of $ 1,425,190 of expenses recognized during the period resulting from the issuance for less than fair value of equity securities should not have been recognized.

REGEN BIOPHARMA , INC.            
BALANCE SHEET            
             
    As of       As of
    June 30, 2016       June 30, 2016
    (unaudited)       (restated)
ASSETS            
CURRENT ASSETS                        
Cash     140,317               140,317  
Note Recievable     12,051               12,051  
Prepaid Expenses     1,000               1,000  
Accrued Interest Recievable     2,278               2,278  
Due from Former Employees     15,000               15,000  
     Total Current Assets     170,646               170,646  
                         
OTHER ASSETS                        
Available for Sale Securities     80,000               80,000  
Total Other Assets     80,000               80,000  
                         
TOTAL ASSETS     250,646               250,646  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY                        
Current Liabilities:                        
Bank Overdraft     0               0  
Accounts payable     216,440               216,440  
Notes Payable     269,447               269,447  
Accrued payroll taxes     798               798  
Accrued Interest     37,988               37,988  
Accrued Reent     15,000               15,000  
Accrued Payroll     178,496               178,496  
Due to Shareholder     0               0  
Total Current Liabilities     718,169               718,169  
Long Term Liabilities:                        
Convertible Notes Payable     102,703               102,703  
Total Long Term Liabilities     102,703               102,703  
Total Liabilities     820,872               820,872  
                         
STOCKHOLDERS' EQUITY (DEFICIT)                        
Common Stock ($.0001 par value) 500,000,000 shares authorized;                        
    114,753,938 issued and outstanding as of                        
  September 30, 2015 and 134,548,138 shares issuedand outstanding June 30, 2016     13,453               13,453  
Preferred Stock, 0.0001 par value, 800,000,000 authorized and 100,000,000 authorized as of                        
June 30,  2016 and September 30, 2015 respectively                        
Series A Preferred     12,767               12,767  
90,000,000 Authorized and 300,000,000 authorized,                        
60,981,697 and 127,666,697 outstanding as of  September  30, 2105 and June 30, 2016 respectively                        
Series AA Preferred     3               3  
$0.0001 par value 600,000 authorized and 30, 000   outstanding as of September  30, 2015                        
and June 30, 2016                        
Additional Paid in capital     16,634,372       (11,937,757 )     4,696,615  
Contributed Capital     728,658               728,658  
Retained Earnings (Deficit) accumulated during the development stage     (17,847,479 )     11,937,757       (5,909,722 )
Accumulated Other Comprehensive Income     (112,000 )             (112,000 )
Total Stockholders' Equity (Deficit)     (570,226 )             (570,226 )
                         
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)     250,646               250,646  

  22  

 

 

REGEN BIOPHARMA , INC.            
STATEMENT OF OPERATIONS            
(unaudited)            
             
      Quarter Ended               Quarter Ended  
      June 30, 2016               June 30, 2016  
                      (restated)  
REVENUES     0               0  
                         
COST AND EXPENSES                        
Research and Development     276,605               276,605  
General and Administrative     434,643               434,643  
Consulting and Professional Fees     212,853               212,853  
Rent     15,000               15,000  
Total Costs and Expenses     939,101               939,101  
                         
OPERATING LOSS     (939,101 )             (939,101 )
                         
OTHER INCOME & (EXPENSES)                        
Interest Income     300               300  
Refunds of amounts previously paid                        
Interest Expense     (8,804 )             (8,804 )
Interest Expense attributable to                        
Amortization of Discount     (4,308 )             (4,308 )
Loss on issuance of common shares for                        
less than fair value     (1,473,490 )     1,425,190       (48,300 )
Preferred shares issued pursuant to                        
contractual obligations                        
TOTAL OTHER INCOME (EXPENSE)     (1,486,302 )             (61,112 )
                         
NET INCOME (LOSS)     (2,425,403 )             (1,000,213 )
BASIC AND FULLY DILUTED                        
EARNINGS (LOSS) PER SHARE     (0.01884 )             (0.00777 )
WEIGHTED AVERAGE NUMBER OF COMMON                        
SHARES OUTSTANDING     128,764,917               128,764,917  

 

  23  

 

REGEN BIOPHARMA , INC.            
STATEMENT OF OPERATIONS            
(unaudited)            
             
             
      Nine Months Ended       adjustments       Nine Months Ended  
      June 30, 2016               June 30, 2016  
                      (as restated)  
REVENUES     0               0  
                         
COST AND EXPENSES                        
Research and Development     554,524               554,524  
General and Administrative     1,358,474               1,358,474  
Consulting and Professional Fees     390,933               390,933  
Rent     45,000               45,000  
Total Costs and Expenses     2,348,931               2,348,931  
                         
OPERATING LOSS     (2,348,931 )             (2,348,931 )
                         
OTHER INCOME & (EXPENSES)                        
Interest Income     897               897  
Refunds of amounts previously paid                        
Interest Expense     (18,894 )             (18,894 )
Interest Expense attributable to                        
Amortization of Discount     (5,202 )             (5,202 )
Loss on issuance of common shares for                        
less than fair value     (3,001,625 )     2,953,325       (48,300 )
Preferred shares issued pursuant to                        
contractual obligations                        
TOTAL OTHER INCOME (EXPENSE)     (3,024,824 )             (71,499 )
                         
NET INCOME (LOSS)     (5,373,755 )             (2,420,430 )
BASIC AND FULLY DILUTED                        
EARNINGS (LOSS) PER SHARE     (0.0432 )             (0.0195 )
WEIGHTED AVERAGE NUMBER OF COMMON                        
SHARES OUTSTANDING     124,408,218               124,408,218  

  24  

 

               
REGEN BIOPHARMA , INC.              
STATEMENT OF CASH FLOWS              
(unaudited)              
               
    Nine Months Ended   Adjustments   Nine Months Ended Nine Months Ended
    June 30, 2016       June 30, 2016 June 30, 2015
            (restated)  
CASH FLOWS FROM OPERATING ACTIVITIES                            
                             
Net Income (loss)   $ (5,373,755 )   $ 2,953,325     $ (2,420,430 ) (10,594,463 )
Adjustments to reconcile net Income to net cash                            
                          100  
Preferred Stock Issued for Expenses                            
Preferred Stock issued for compensation   $ 3,000             $ 3,000      
Preferred Stock issued for Interest                         891  
Preferred Stock issued pursuant to contractual obligations                         3,475  
Common Stock issued to Consultants                         226,177  
Preferred Stock issued to Consultants   $ 40             $ 40   440  
Increase (Decrease) in Interest expense attributable to                            
    $ 5,202             $ 5,202      
Increase in issuance of stock below fair value   $ 3,001,625     $ (2,953,325 )   $ 48,300   9,116,857  
Increase in Additional Paid in Capital   $ 743,201             $ 743,201   380,191  
Changes in operating assets and liabilities:                            
Increase (Decrease) in Accounts Payable   $ 190,585             $ 190,585   (2,115 )
(Increase) Decrease in Notes Receivable                         (1,629 )
(Increase) Decrease in Interest  Receivable   $ (897 )           $ (897 ) (848 )
Increase ( Decrease) in Bank Overdraft                         (6,137 )
Increase (Decrease) in accrued Expenses   $ 163,249             $ 163,249   29,665  
(Increase) Decrease in Prepaid Expenses   $ 9,000             $ 9,000   (6,289 )
(Increase)Decrease in Due from Former Employee   $ (15,000 )           $ (15,000 )    
Net Cash Provided by (Used in) Operating   $ (1,273,750 )           $ (1,273,750 ) (853,685 )
Activities                            
CASH FLOWS FROM FINANCING ACTIVITIES                            
Common Stock issued for Cash     619,938               619,938      
Preferred Stock issued for Cash     534,813               534,813      
Increase in Contributed Capital                         70,000  
Increase ( Decrease)  in Notes Payable     70,696               70,696   19,582  
Increase in Convertible Notes payable     150,000               150,000   972,686  
                             
                             
Increase in Due to Shareholder                            
Net Cash Provided by (Used in) Financing                            
Activities     1,375,447               1,375,447   1,062,268  
                             
Net Increase (Decrease) in Cash     101,697               101,697   208,582.00  
                             
Cash at Beginning of Period     38,620               38,620   0  
                             
Cash at End of Period   $ 140,317             $ 140,317   208,582  

  25  

 

REGEN BIOPHARMA, INC.
STATEMENT OF COMPREHENSIVE INCOME
(unaudited)
    Quarter  Ended June   30
            (restated)
    2016   adjustments   2016
Net Income (Loss)   $ (2,425,403 )     1,425,190     $ (1,000,213 )
Add:                        
     Unrealized Gains on Securities     23,200               23,200  
Less:                        
     Unrealized Losses on Securities                        
     Total Other Comprehensive Income (Loss)     23,200               23,200  
Comprehensive Income   $ (2,402,203 )             (977,013 )

    Nine Months  Ended June 30
    2016   adjustments   2016
            (restated)
Net Income (Loss)   $ (5,373,755 )     2,953,325     $ (2,420,430 )
Add:                        
     Unrealized Gains on Securities     0               0  
Less:                        
     Unrealized Losses on Securities     (78,400 )             (78,400 )
     Total Other Comprehensive Income (Loss)     (78,400 )             (78,400 )
Comprehensive Income   $ (5,452,155 )             (2,498,830 )

 

  26  

 

On March 21, 2017, the Board of Directors of Regen Biopharma, Inc. (the “Company”) concluded that the previously issued Balance Sheet, Statement of Operations, Statement of Shareholder’s Equity, Statement of Comprehensive Income and Statement of Cash Flow for the year ended September 30, 2016 filed with the Company’s Form 10-K for the year ended September 30, 2016 should not be relied upon.

The Company determined that the recognition of $4,337,075 of expenses recognized during the year ended September 30, 2016 resulting from the issuance for less than fair value of common shares in satisfactions of convertible notes issued by the Company should not have been recognized.

 

The following tables reflect the corrections:

 

REGEN BIOPHARMA , INC.            
BALANCE SHEET            
             
    As of       As of
    September 30, 2016   Adjustments   September 30, 2016
            (Restated)
ASSETS            
CURRENT ASSETS                        
Cash     24,822               24,822  
Accounts Recievable     83,000               83,000  
Note Recievable     12,051               12,051  
Prepaid Expenses     69,905               69,905  
Accrued Interest Recievable     2,578               2,578  
Due from Former Employees     15,000               15,000  
     Total Current Assets     207,356               207,356  
                         
OTHER ASSETS                        
Available for Sale Securities     112,000               112,000  
Total Other Assets     112,000               112,000  
                         
TOTAL ASSETS     319,356               319,356  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY                        
Current Liabilities:                        
Bank Overdraft     0               0  
Accounts payable     240,759               240,759  
Notes Payable     143,447               143,447  
Accrued payroll taxes     33,040               33,040  
Accrued Interest     43,918               43,918  
Accrued Reent     15,000               15,000  
Accrued Payroll     263,996               263,996  
Due to Shareholder     50,000               50,000  
Convertible Notes Payable     9,041               9,041  
Total Current Liabilities     799,201               799,201  
Long Term Liabilities:                        
Convertible Notes Payable     107,057               107,057  
Total Long Term Liabilities     107,057               107,057  
Total Liabilities     906,258               906,258  
                         
STOCKHOLDERS' EQUITY (DEFICIT)                        
Common Stock ($.0001 par value) 500,000,000 shares authorized;                        
    114,753,938 issued and outstanding as of                        
  September 30, 2015 and 139,712,605 shares issuedand outstanding September 30, 2016     13,970               13,970  
Preferred Stock, 0.0001 par value, 800,000,000 authorized and 100,000,000 authorized as of                        
September 30,  2016 and September 30, 2015 respectively                        
Series A Preferred     13,527               13,527  
90,000,000 Authorized and 300,000,000 authorized,                        
60,981,697 and 135,266,697 outstanding as of  September  30, 2105 and September 30, 2016 respectively                        
Series AA Preferred     3               3  
$0.0001 par value 600,000 authorized and 30, 000   outstanding as of September  30, 2015                        
and September 30, 2016                        
Additional Paid in capital     18,961,259       (13,321,507 )     5,639,753  
Contributed Capital     728,658               728,658  
Retained Earnings (Deficit) accumulated during the development stage     (20,224,319 )     13,321,507       (6,902,812 )
Accumulated Other Comprehensive Income     (80,000 )             (80,000 )
Total Stockholders' Equity (Deficit)     (586,902 )             (586,902 )
                         
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)     319,356               319,356  

  27  

 

REGEN BIOPHARMA , INC.            
STATEMENT OF CASH FLOWS            
             
    Year Ended September 30   Adjustments   Year Ended September 30
    2016       2016
            (Restated)
CASH FLOWS FROM OPERATING ACTIVITIES                        
                         
Net Income (loss)     (7,750,594 )     4,337,075       (3,413,519 )
Adjustments to reconcile net Income to net cash                        
Stock Received as Payment for Services                        
Preferred Stock Issued for Expenses                        
Preferred Stock issued for compensation     3,000               3,000  
Preferred Stock issued for Interest                        
Preferred Stock issued pursuant to contractual obligations                        
Common Stock issued to Consultants     99,815               99,815  
Preferred Stock issued to Consultants     15,940               15,940  
Increase (Decrease) in Interest expense attributable to                        
amortization of Discount     18,597               18,597  
Increase in issuance of stock below fair value     4,748,408       (4,337,075 )     411,333  
Increase in Additional Paid in Capital     849,866               849,866  
Changes in operating assets and liabilities:                        
Increase (Decrease) in Accounts Payable     214,904               214,904  
(Increase) Decrease in Accounts Receivable     (83,000 )             (83,000 )
(Increase) Decrease in Notes Receivable                        
(Increase) Decrease in Interest  Receivable     (1,197 )             (1,197 )
Increase ( Decrease) in Bank Overdraft                        
Increase (Decrease) in accrued Expenses     286,921               286,921  
(Increase) Decrease in Prepaid Expenses     (59,905 )             (59,905 )
(Increase) Decrease in Due from Former Employee     (15,000 )             (15,000 )
Net Cash Provided by (Used in) Operating Activities     (1,672,245 )             (1,672,245 )
CASH FLOWS FROM FINANCING ACTIVITIES                        
Common Stock issued for Cash     626,188               626,188  
Preferred Stock issued for Cash     628,563               628,563  
Increase in Contributed Capital                        
Increase ( Decrease)  in Notes Payable     53,696               53,696  
Increase in Convertible Notes payable     300,000               300,000  
Increase in Due to Shareholder     50,000               50,000  
Net Cash Provided by (Used in) Financing                        
Net Cash Provided by (Used in) Financing Activities     1,658,447               1,658,447  
                         
Net Increase (Decrease) in Cash     (13,798 )             (13,798 )
                         
Cash at Beginning of Period     38,620               38,620  
                         
Cash at End of Period     24,822               24,822  

  28  

 

   

STATEMENT OF COMPREHENSIVE INCOME
 
    Year   Ended September   30
    2016   adjustments   2016
            (Restated)
Net Income (Loss)   $ (7,750,594 )     4,337,075     $ (3,413,519 )
Add:                        
     Unrealized Gains on Securities                        
Less:                        
     Unrealized Losses on Securities     (46,400 )             (46,400 )
     Total Other Comprehensive Income (Loss)     (46,400 )             (46,400 )
Comprehensive Income   $ (7,796,994 )             (3,459,919 )
                         

 

STATEMENT OF SHAREHOLDERS EQUITY            
Year Ended September 30, 2016                
            Adjustments    
Quarter Ended December 31, 2015               Restated
APIC   Loss on Securities Issued for Less Than Fair Value     1,163,313       (1,163,313 )     0  
Accumulated Deficit   Net Loss     (1,857,466 )     1,163,313       (694,153 )
                             
                             
Quarter Ended March  31, 2016                            
APIC   Loss on Securities Issued for Less Than Fair Value     364,822       (364,822 )     0  
Accumulated Deficit   Net Loss     (1,090,886 )     364,822       (726,064 )
                             
Quarter Ended June 30, 2016                            
APIC   Loss on Securities Issued for Less Than Fair Value     1,473,490       (1,425,190 )     48,300  
Accumulated Deficit   Net Loss     (2,425,404 )     1,425,190       (1,000,213 )
                             
QuarterEnded September 30, 2016                            
APIC   Loss on Securities Issued for Less Than Fair Value     1,746,783       (1,383,750 )     363,033  
Accumulated Deficit   Net Loss     (2,376,838 )     1,383,750       (993,088 )

 

  29  

 

 

On March 21, 2017, the Board of Directors of Regen Biopharma, Inc. (the “Company”) concluded that the previously issued Balance Sheet, Statement of Operations, Statement of Comprehensive Income and Statement of Cash Flow for the quarter ended December 31, 2016 filed with the Company’s Form 10-Q for the quarter ended December 31, 2016 should not be relied upon.

The Company determined that the recognition of $ 1,950,120 of expenses recognized during the period resulting from the issuance for less than fair value of equity securities should not have been recognized.

 

REGEN BIOPHARMA , INC.            
BALANCE SHEET            
             
    As of       As of
    December 31, 2016   Adjustments   December 31, 2016
    (unaudited)       (unaudited)
            Restated
ASSETS            
CURRENT ASSETS                        
Cash     220,718               220,718  
Accounts Recievable     83,000               83,000  
Note Recievable     12,051               12,051  
Prepaid Expenses     61,011               61,011  
Accrued Interest Recievable     2,878               2,878  
Due from Former Employees     15,000               15,000  
     Total Current Assets     394,658               394,658  
                         
OTHER ASSETS                        
Available for Sale Securities     312,000               312,000  
Total Other Assets     312,000               312,000  
                         
TOTAL ASSETS     706,658               706,658  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY                        
Current Liabilities:                        
Bank Overdraft     0               0  
Accounts payable     163,927               163,927  
Notes Payable     68,638               68,638  
Accrued payroll taxes     3,677               3,677  
Accrued Interest     54,841               54,841  
Accrued Reent     20,000               20,000  
Accrued Payroll     349,496               349,496  
Due to Shareholder     25,000               25,000  
Convertible Notes Payable     47,425               47,425  
Total Current Liabilities     733,004               733,004  
Long Term Liabilities:                        
Convertible Notes Payable     129,776               129,776  
Total Long Term Liabilities     129,776               129,776  
Total Liabilities     862,779               862,779  
                         
STOCKHOLDERS' EQUITY (DEFICIT)                        
Common Stock ($.0001 par value) 500,000,000 shares authorized;                        
    145412605 issued and outstanding as of                        
  December 31, 2016 and 139,712,605 shares issued and outstanding September 30, 2016     14,540               14,540  
Preferred Stock, 0.0001 par value, 800,000,000 authorized as of                        
September 30,  2016 and December 31, 2016 respectively                        
Series A Preferred     14,797               14,797  
300,000,000 authorized,                        
147966697 and 135,266,697 outstanding as of  December 31, 2016 and September 30, 2016 respectively                        
Series AA Preferred     3               3  
$0.0001 par value 600,000 authorized and 30, 000   outstanding as of December 31, 2016                        
and September 30, 2016                        
Additional Paid in capital     21,714,779       (15,271,627 )     6,443,152  
Contributed Capital     728,658               728,658  
Retained Earnings (Deficit) accumulated during the development stage     (22,748,898 )     15,271,627       (7,477,271 )
Accumulated Other Comprehensive Income     120,000               120,000  
Total Stockholders' Equity (Deficit)     (156,121 )             (156,121 )
                         
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)     706,658               706,658  

  30  

 

 

REGEN BIOPHARMA , INC.            
STATEMENT OF OPERATIONS            
(unaudited)            
             
      Quarter Ended               Quarter Ended  
      December 31, 2016       Adjustments       December 31, 2016  
                      (Restated)  
REVENUES     0               0  
                         
COST AND EXPENSES                        
Research and Development     42,694               42,694  
General and Administrative     242,758               242,758  
Consulting and Professional Fees     233,128               233,128  
Rent     15,000               15,000  
Total Costs and Expenses     533,580               533,580  
                         
OPERATING LOSS     (533,580 )             (533,580 )
                         
OTHER INCOME & (EXPENSES)                        
Interest Income     300               300  
Other Income     31,846               31,846  
Refunds of amounts previously paid                        
Interest Expense     (11,923 )             (11,923 )
Interest Expense attributable to                        
Amortization of Discount     (61,102 )             (61,102 )
Loss on issuance of common shares for                        
less than fair value     (1,950,120 )     1,950,120       0  
Preferred shares issued pursuant to                        
contractual obligations                        
TOTAL OTHER INCOME (EXPENSE)     (1,990,999 )             (40,879 )
                         
NET INCOME (LOSS)     (2,524,579 )             (574,459 )
BASIC AND FULLY DILUTED                        
EARNINGS (LOSS) PER SHARE     (0.018 )             (0.004 )
WEIGHTED AVERAGE NUMBER OF COMMON                        
SHARES OUTSTANDING     143,596,121               143,596,121  

  31  

 

 

REGEN BIOPHARMA , INC.            
STATEMENT OF CASH FLOWS            
(unaudited)            
             
    Quarter Ended December 31       Quarter Ended December 31
    2016   Adjustments   2016
            (Restated)
CASH FLOWS FROM OPERATING ACTIVITIES                        
                         
Net Income (loss)     (2,524,579 )     1,950,120       (574,459 )
Adjustments to reconcile net Income to net cash                        
Increase (Decrease) in Interest expense attributable to                        
amortization of Discount     61,102               61,102  
Increase in issuance of stock below fair value     1,950,120       (1,950,120 )     0  
Increase in Additional Paid in Capital     5,240               5,240  
Changes in operating assets and liabilities:                        
Increase (Decrease) in Accounts Payable     (76,832 )             (76,832 )
(Increase) Decrease in Accounts Receivable                        
(Increase) Decrease in Notes Receivable                        
(Increase) Decrease in Interest  Receivable     (300 )             (300 )
Increase ( Decrease) in Bank Overdraft                        
Increase (Decrease) in accrued Expenses     72,060               72,060  
(Increase) Decrease in Prepaid Expenses     8,894               8,894  
(Increase) Decrease in Due from Former Employee                        
                         
Net Cash Provided by (Used in) Operating     (504,295 )             (504,295 )
Activities                        
CASH FLOWS FROM FINANCING ACTIVITIES                        
Common Stock issued for Cash     267,500               267,500  
Preferred Stock issued for Cash     292,500               292,500  
Increase in Contributed Capital     0               0  
Increase ( Decrease)  in Notes Payable     (74,809 )             (74,809 )
                         
Increase in Convertible Notes payable     240,000               240,000  
                         
                         
Increase (Decrease) in Due to Shareholder     (25,000 )             (25,000 )
Net Cash Provided by (Used in) Financing                        
Activities     700,191               700,191  
                         
Net Increase (Decrease) in Cash     195,896               195,896  
                         
Cash at Beginning of Period     24,822               24,822  
                         
Cash at End of Period     220,718               220,718  

  32  

 

REGEN BIOPHARMA, INC.
STATEMENT OF COMPREHENSIVE INCOME
(unaudited)
    Quarter Ended December 31
    2016       adjustments   2016
            (Restated)
Net Income (Loss)   $ (2,524,579 )   $ 1,950,120     $ (574,459 )
Add:                        
     Unrealized Gains on Securities     200,000               200,000  
Less:                        
     Unrealized Losses on Securities                        
     Total Other Comprehensive Income (Loss)     200,000               200,000  
Comprehensive Income   $ (2,324,579 )             (374,459 )

 

  33  

 

 

The Company’s senior management has discussed the matters disclosed in this Item 4.02 of this Current Report with AMC Auditing, the Company’s independent registered public accounting firm.

 

SIGNATURE

 

 

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.

 

  REGEN BIOPHARMA, INC.
   
Dated: 3/30/2017 By:  /s/ David Koos
  David Koos
  Chief Executive Officer

 

  34  

 

Regen Biopharma (PK) (USOTC:RGBPP)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Regen Biopharma (PK) Charts.
Regen Biopharma (PK) (USOTC:RGBPP)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Regen Biopharma (PK) Charts.