(The accompanying notes are an integral
part of these consolidated financial statements)
Notes to the Consolidated Financial Statements
Years ended June 30, 2019 and 2018
1.
|
Organization and Nature of Operations
|
Dalrada Financial Corporation
(the “Company”) was incorporated in September 1982 under the laws of the State of California, and reincorporated in
May 1983 under the laws of the State of Delaware.
In June 2018, the Company created
a new subsidiary, Dalrada Precision Corp. (“Dalrada Precision”), a mechanical contract provider. It extends the client’s
engineering and operations team by helping devise bespoke manufacturing solutions tailored to its products. Dalrada Precision can
enter at any stage of the product lifecycle from concept and design to mass production and logistics.
In October 2018, the Company
created a new subsidiary, Dalrada Health Products Corp (“Dalrada Health”). Dalrada Health will partner with client
companies for the distribution of medical disposables, hospital equipment & furniture, medical devices, laboratory and dental
products. In May 2019, Dalrada Health acquired a new subsidiary, C2C Life Sciences, Inc. (“C2C”). On November 1, 2019,
the acquisition was rescinded, as the Company never gained control over C2C. Such costs incurred in connection with this rescinded
acquisition, have been reflected in these financials as other expense.
The Company's principal executive
offices are located at 600 La Terraza Blvd., Escondido, California 92025.
Going Concern
These consolidated financial
statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and
discharge its liabilities in the normal course of business. As at June 30, 2019, the Company has a working capital deficit of $13,641,143
and an accumulated deficit of $104,963,228. The continuation of the Company as a going concern is dependent upon the continued
financial support from its management, and its ability to identify future investment opportunities and obtain the necessary debt
or equity financing, and generating profitable operations from the Company’s future operations. These factors raise substantial
doubt regarding the Company’s ability to continue as a going concern. These consolidated financial statements do not include
any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might
be necessary should the Company be unable to continue as a going concern.
|
2.
|
Summary of Significant Accounting Policies
|
|
(a)
|
Basis of Presentation
|
These consolidated financial
statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“US
GAAP”) and are expressed in U.S. dollars. The Company’s fiscal year end is June 30.
|
(b)
|
Principles of Consolidation
|
These consolidated financial
statements include the accounts of the Company and its wholly-owned subsidiaries: Dalrada Precision, a company incorporated in
the State of California, since June 25, 2018 (date of incorporation), and Dalrada Health, a company incorporated in the State of
California, since October 2, 2018 (date of incorporation). All inter-company transactions and balances have been eliminated on
consolidation.
DALRADA FINANCIAL CORPORATION
Notes to the Consolidated Financial Statements
Years ended June 30, 2019 and 2018
The preparation of these consolidated
financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial
statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates
and assumptions related to the valuation of inventory, valuation of accrued payroll tax liabilities, variables used in the computation
of share-based compensation, and deferred income tax asset valuation allowances.
The Company bases its estimates
and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances,
the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of
costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially
and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual
results, future results of operations will be affected.
|
(d)
|
Cash and Cash Equivalents
|
The Company considers all highly
liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents.
Inventory is comprised of goods
purchased for resale, and is recorded at the lower of cost or net realizable value on a first-in first-out basis. The Company establishes
inventory reserves for estimated obsolete or unsaleable inventory equal to the difference between the cost of inventory and the
estimated realizable value based upon assumptions about future market conditions.
Equipment is comprised of machinery
and is recorded at the lower of cost or net book value and amortized on a straight-line basis over an estimated useful life of
three to five years.
|
(g)
|
Financial Instruments
|
Pursuant to ASC 820, Fair
Value Measurements and Disclosures, an entity is required to maximize the use of observable inputs and minimize the use of
unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective
evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value
hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs
into three levels that may be used to measure fair value:
Level 1
Level 1 applies to assets or
liabilities for which there are quoted prices in active markets for identical assets or liabilities.
DALRADA FINANCIAL CORPORATION
Notes to the Consolidated Financial Statements
Years ended June 30, 2019 and 2018
|
(g)
|
Financial Instruments (continued)
|
Level 2
Level 2 applies to assets or
liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices
for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient
volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable
or can be derived principally from, or corroborated by, observable market data.
Level 3
Level 3 applies to assets or
liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the
fair value of the assets or liabilities.
The Company’s financial
instruments consist principally of cash, accounts receivable, accounts payable and accrued liabilities, notes payable, and amounts
due to related parties. Pursuant to ASC 820, the fair value of cash is determined based on “Level 1” inputs, which
consist of quoted prices in active markets for identical assets. The recorded values of all other financial instruments approximate
their current fair values because of their nature and respective maturity dates or durations.
The Company accounts for income
taxes using the asset and liability method in accordance with ASC 740, Accounting for Income Taxes. The asset and liability
method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences
between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax credit carryforwards. Deferred
tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences
are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed
more likely than not to be realized.
The Company recognizes and accounts
for revenue in accordance with ASC 606 as a principal on the sale of goods. Pursuant to ASC
606, revenue is measured based on a consideration specified in a contract with a customer, and excludes
any sales incentives and amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance
obligation by transferring control over a product or service to a customer.
The Company’s revenue is
derived from the sales of its products, which represents net sales recorded in the Company’s consolidated statements of operations.
Product sales are recognized when performance obligations under the terms of the contract with the customer are satisfied. Typically,
this would occur upon transfer of control, including passage of title to the customer and transfer of risk of loss related to those
goods. The Company measures revenue as the amount of consideration to which it expects to be entitled in exchange for transferring
goods (transaction price). The Company records reductions to revenue for estimated customer returns, allowances, markdowns and
discounts. The Company bases its estimates on historical rates of customer returns and allowances as well as the specific identification
of outstanding returns, markdowns and allowances that have not yet been received by the Company. The actual amount of customer
returns and allowances is inherently uncertain and may differ from the Company’s estimates. If the Company determines that
actual or expected returns or allowances are significantly higher or lower than the reserves it established, it would record a
reduction or increase, as appropriate, to net sales in the period in which it makes such a determination. Reserves for returns,
and markdowns are included within accrued expenses and other liabilities. Allowance and discounts are recorded in accounts receivable,
net and the value of inventory associated with reserves for sales returns are included within prepaid expenses and other current
assets on the consolidated balance sheets.
DALRADA FINANCIAL CORPORATION
Notes to the Consolidated Financial Statements
Years ended June 30, 2019 and 2018
|
(j)
|
Stock-based Compensation
|
The Company records stock-based
compensation in accordance with ASC 718, Compensation – Stock Compensation using the fair value method. All transactions
in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the
fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.
Equity instruments issued to employees and the cost of the services received as consideration are measured and recognized based
on the fair value of the equity instruments issued.
ASC 220, Comprehensive Income,
establishes standards for the reporting and display of comprehensive loss and its components in the consolidated financial statements.
As at June 30, 2019 and 2018, the Company has no items representing comprehensive income or loss.
|
(l)
|
Basic and Diluted Net Loss per Share
|
The Company computes net income
(loss) per share in accordance with ASC 260, Earnings per Share. ASC 260 requires presentation of both basic and diluted
earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net income (loss)
available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period.
Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method
and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period
is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. In accordance
with ASC 260, “Earnings Per Share”, the following table reconciles basic shares outstanding to fully diluted shares
outstanding.
|
|
Year Ended
|
|
|
|
June 30,
|
|
|
|
2019
|
|
Weighted
average number of common shares outstanding - Basic
|
|
|
47,429,073
|
|
Potentially
dilutive common stock equivalents (convertible note payable - related party)
|
|
|
55,147,059
|
|
Weighted
average number of common shares outstanding - Diluted
|
|
|
102,576,132
|
|
There were no outstanding dilutive
securities during the year ended June 30, 2018. There were no adjustments to the numerator during the year ended June 30, 2019.
Recent Accounting Pronouncements
In August 2018, the FASB issued
guidance to improve the effectiveness of fair value measurement disclosures by removing or modifying certain disclosure requirements
and adding other requirements. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning
after December 15, 2019, with early adoption permitted. Certain amendments should be applied prospectively, while all other amendments
should be applied retrospectively to all periods presented. The Company is currently evaluating the impact of the new guidance.
DALRADA FINANCIAL CORPORATION
Notes to the Consolidated Financial Statements
Years ended June 30, 2019 and 2018
In February 2018, the FASB issued
guidance that permits the Company to reclassify disproportionate tax effects in accumulated other comprehensive income caused
by the Tax Cuts and Jobs Act of 2017 to retained earnings. The guidance is effective for fiscal years, and interim periods within
those fiscal years, beginning after December 15, 2018, with early adoption permitted. The adoption of this standard is not expected
to have a material impact on the Company’s consolidated financial statements.
In July 2017, the FASB issued
ASU 2017-11 which simplifies the accounting for certain financial instruments with down round features. The new standard will reduce
income statement volatility for companies that issue warrants and convertible instruments containing such features.
The guidance is effective for
fiscal years beginning after December 15, 2018 with early adoption permitted. The adoption of this standard is not expected to
have a material impact on the Company’s consolidated financial statements.
In June 2016, the FASB issued
a new credit loss standard that replaces the incurred loss impairment methodology in current GAAP. The new impairment model requires
immediate recognition of estimated credit losses expected to occur for most financial assets and certain other instruments. It
is effective for annual reporting periods beginning after December 15, 2019 and interim periods within those annual periods, with
early adoption permitted. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings
as of the beginning of the first effective reporting period. The Company is currently evaluating the impact of the new guidance.
In February 2016, the FASB issued
new lease accounting guidance in ASU No. 2016-02, “Leases”. This new guidance was initiated as a joint project
with the International Accounting Standards Board to simplify lease accounting and improve the quality of and comparability of
financial information for users. This new guidance would eliminate the concept of off-balance sheet treatment for “operating
leases” for lessees for the vast majority of lease contracts. Under ASU No. 2016-02, at inception, a lessee must classify
all leases with a term of over one year as either finance or operating, with both classifications resulting in the recognition
of a defined “right-of-use” asset and a lease liability on the balance sheet. However, recognition in the income statement
will differ depending on the lease classification, with finance leases recognizing the amortization of the right-of-use asset separate
from the interest on the lease liability and operating leases recognizing a single total lease expense. Lessor accounting under
ASU No. 2016-02 would be substantially unchanged from the previous lease requirements under GAAP. ASU No. 2016-02 will take effect
for public companies in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early
adoption is permitted and for leases existing at, or entered into after, the beginning of the earliest comparative period presented
in the financial statements, lessees and lessors must apply a modified retrospective transition approach. The adoption of this
standard is not expected to have a material impact on the Company’s consolidated financial statements.
The Company has implemented
all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there
are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or
results of operations.
As of June 30, 2019, and 2018,
the Company had $10,980,278 and $12,392,022, respectively, of accrued payroll taxes, penalties and interest relating to calendar
years 2004 - 2007. The total balance for accrued payroll taxes has accumulated on a quarterly basis beginning on their respective
quarterly filing dates. Accrued interest is compounded daily at an estimated effective interest rate of 7.33%. The quarterly sub-totals
that make up the $10,980,278 balance have a calculated expiration date of 10 years according to the Internal Revenue Service statute
of limitations. As the tax periods surpass their estimated expiration date, the Company removes the liability from the consolidated
balance sheets, and an equivalent amount is recognized as “Gain on expiration of accrued payroll taxes” within other
income on the consolidated statements of operations. For fiscal years ended June 30, 2019 and 2018, the Company recognized $852,595
and $945,238, respectively, of penalties and interest within interest expense on the consolidated statements of operations. For
fiscal years ended June 30, 2019 and 2018, the Company recognized $2,264,340 and $0, respectively, within “Gain on expiration
of accrued payroll taxes” as a result of quarterly tax liabilities that expired during the fiscal years. The amount owing
may be subject to additional late filing fees and penalties that are not quantifiable as at the date of these consolidated financial
statements. In addition, the Company periodically reviews the historical filings in determining if the statute has been paused
or extended by the Internal Revenue Service.
DALRADA FINANCIAL CORPORATION
Notes to the Consolidated Financial Statements
Years ended June 30, 2019 and 2018
|
4.
|
Notes Payable – Related Parties
|
|
a)
|
During the year ended June 30, 2019, the Company issued a $38,615 promissory note to a related
party for compensation paid by the related party on behalf of the Company. Under the terms of the note, the amount due is unsecured,
bears interest at 3% per annum, and is due 180 days from the date of issuance. As at June 30, 2019, the outstanding balance of
the promissory note was $39,195 (2018 - $nil).
|
|
b)
|
During the year ended June 30, 2019, the Company issued a $37,469 promissory note to a related
party for legal services and other expenses incurred to reinstate the Company to a current status with the state of Delaware. Under
the terms of the note, the amount due is unsecured, bears interest at 3% per annum, and is due 180 days from the date of issuance.
As at June 30, 2019, the outstanding balance of the promissory note was $37,469 (2018 - $37,469, reflected as accounts payable
accrued liabilities related party).
|
|
c)
|
As at June 30, 2019, the Company owed $2,250 (2018 – $nil) to a related party company controlled
by the Chief Executive Officer of the Company for management fees, which consists of accounting and administrative services for
which the Company is charged $4,500 on a monthly basis. The amount is unsecured, bears interest at 3% per annum, and due 360 days
from the date of issuance.
|
|
d)
|
As at June 30, 2019, the Company owed $1,630 (2018 – $nil) to a related party for reimbursement
of expenses paid by the related party on behalf of the Company related to the proposed C2C acquisition which did not occur. The
amount is unsecured, bears interest at 3% per annum, and due 360 days from the date of issuance.
|
|
e)
|
As at June 30, 2019, the Company owed $262,197 (2018 – $nil) to a related party for reimbursement
of compensation to employees and payroll services paid by the related party on behalf of the Company in connection with the C2C
acquisition which did not occur. The amount is unsecured, bears interest at 3% per annum, and due 360 days from the date of issuance.
|
5.
|
Convertible Note Payable – Related Parties
|
As at June 30, 2019, the Company
owed $1,875,000 (2018 – $1,615,000, reflected as accrued compensation) to the Chief Executive Officer of the Company for
compensation. The amount is unsecured, bears interest at 3% per annum, due one year from the date of issuance. On June 30, 2019,
the Company issued note agreement which included a conversion feature of the outstanding balance at $0.034 per share. As the conversion
price was equal to the fair value of the common shares on the date of the agreement, there was no beneficial conversion feature.
During the year ended June 30,
2019, the Company incurred $260,000 (2018 - $60,000) in consulting fees to the Chief Executive Officer of the Company. At the time,
the Company didn’t have a formal arrangement with the Chief Executive Officer for the payment of such.
On May
7, 2019, the Company issued 1,000,000 common shares to a direct relative of the Chief Executive Officer for reimbursement of expenses.
The fair value of the common stock issued was similar to that of the fair market value on the date of issuance.
7.
|
Related Party Transactions
|
As at June 30, 2019, the Company owed $417,133
(2018 - $nil) to related parties for reimbursement of various operating expenses, which has been recorded in accounts payable and
accrued liabilities – related parties. This amount includes $27,000 of management fees, which consists of accounting and
administrative services to Trucept Inc., a related party company controlled by the Chief Executive Officer of the Company. The
management fee agreement calls for monthly payments of $4,500. The agreement is ongoing until terminated by either party.
See Notes 4, 5, 6 and 9 for additional
related party transactions.
DALRADA FINANCIAL CORPORATION
Notes to the Consolidated Financial Statements
Years ended June 30, 2019 and 2018
We file income tax returns in the United States federal jurisdiction
and in various state and local jurisdictions. In the normal course of business, we are subject to examination by taxing authorities.
The tax years ending 2017 through 2019 remain subject to examination for federal tax purposes and remain subject to examination
in significant state tax jurisdictions. The Company has yet to file their income tax return for the year ended June 30, 2019.
As of June 30, 2019, the Company had federal and state net operating
loss carry forwards of $818,000 that may be offset against future taxable income which will begin to expire in 2038 through 2041.
The reconciliation of income tax expense computed at the U.S.
federal statutory rate to the income tax provision for the years ended June 30, 2019 and 2018 is as follows:
|
|
2019
|
|
|
2018
|
|
Current:
|
|
|
|
|
|
|
|
|
Federal
|
|
$
|
–
|
|
|
$
|
–
|
|
State
|
|
|
–
|
|
|
|
–
|
|
Foreign
|
|
|
–
|
|
|
|
–
|
|
|
|
|
–
|
|
|
|
–
|
|
Deferred:
|
|
|
|
|
|
|
|
|
Federal
|
|
|
(165,038
|
)
|
|
|
(6,716
|
)
|
State
|
|
|
(45,852
|
)
|
|
|
(1,866
|
)
|
|
|
|
(210,890
|
)
|
|
|
(8,582
|
)
|
Valuation allowance
|
|
|
210,890
|
|
|
|
8,582
|
|
Total provision for income taxes
|
|
$
|
–
|
|
|
$
|
–
|
|
Deferred
income taxes reflect the net tax effects of: (a) temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for income tax purposes; and (b) operating loss and tax credit carry-forwards.
We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination,
we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences,
projected future taxable income, tax planning strategies and recent financial operations. Significant components of deferred tax
assets as of June 30, 2019 and 2018 were as follows:
|
|
2019
|
|
|
2018
|
|
Net Operating Loss Carryforwards
|
|
$
|
219,472
|
|
|
$
|
8,582
|
|
Gross Deferred Tax Assets
|
|
|
219,472
|
|
|
|
8,582
|
|
|
|
|
|
|
|
|
|
|
Valuation Allowance
|
|
|
(219,472
|
)
|
|
|
(8,582
|
)
|
Net Deferred Tax Assets
|
|
$
|
–
|
|
|
$
|
–
|
|
Reconciliation
of the statutory federal income tax to the Company's effective tax:
The
difference in the effective rate and the statutory rate is due to permanent differences, primarily deductibility of penalties and
interest on accrued payroll tax liabilities and the gains related to the expiration of the statute of limitations for accrued payroll
tax liabilities.
DALRADA FINANCIAL CORPORATION
Notes to the Consolidated Financial Statements
Years ended June 30, 2019 and 2018
9.
|
Commitments and Contingencies
|
|
(a)
|
On September 1, 2019, the Company, entered into a three-year lease agreement to lease a commercial
building in Escondido, California. The building is owned by related party. Under the terms of the lease agreement, the Company
is committed to the following minimum lease payments:
|
Fiscal
year ended
|
|
$
|
|
|
|
June 30, 2020
|
|
12,804
|
June 30, 2021
|
|
17,457
|
June 30, 2022
|
|
17,980
|
June 30, 2023
|
|
18,112
|
|
|
|
Total minimum lease payments
|
|
66,353
|
|
(a)
|
On July 1, 2019, the Company formalized an employment agreement with its Chief Executive Officer,
which entitles him to compensation of three hundred and ninety-three thousand dollars ($393,000.00) per year. Annual increases
will be up to 10% based performance criteria to be determined at a later date. He will be issued common stock of the Company sufficient
to provide a 10% ownership position post reverse split which shares be maintained for a period of two years. In addition to all
other benefits and compensation, he shall be eligible for a quarterly bonus of $47,000 based on if the Company achieves a net profit
for that quarter.
|
|
(b)
|
On September 30, 2019, the Company issued a $131,265 promissory note to a related party for compensation
paid by the related party on behalf of the Company. Under the terms of the note, the amount due is unsecured, bears interest at
3% per annum, and is due 360 days from the date of issuance.
|
|
(c)
|
On September 30, 2019, the Company issued a $2,075 promissory note to a related party for reimbursement
of expenses paid by the related party on behalf of the Company related to the proposed C2C acquisition which did not occur. Under
the terms of the note, the amount due is unsecured, bears interest at 3% per annum, and is due 360 days from the date of issuance.
|
|
(d)
|
On September 30, 2019, the Company issued a $3,375 promissory note to a related party company controlled
by the Chief Executive Officer of the Company for management fees, which consists of accounting and administrative services. Under
the terms of the note, the amount due is unsecured, bears interest at 3% per annum, and is due 360 days from the date of issuance.
|
DALRADA FINANCIAL CORPORATION
Notes to the Consolidated Financial Statements
Years ended June 30, 2019 and 2018
|
(e)
|
On September 30, 2019, the Company issued a $36,370 promissory note to a related party for reimbursement
of operating expenses paid by the related party on behalf of the Company. Under the terms of the note, the amount due is unsecured,
bears interest at 3% per annum, and is due 360 days from the date of issuance.
|
|
(f)
|
On September 30, 2019, the Company issued a $1,865 promissory note to a related party for reimbursement
of expenses paid by the related party on behalf of the Company related to the proposed C2C acquisition which did not occur. Under
the terms of the note, the amount due is unsecured, bears interest at 3% per annum, and is due 360 days from the date of issuance.
|
|
(g)
|
On September 30, 2019, the Company issued a $93,137 promissory note to a related party for reimbursement
of operating expenses paid by the related party on behalf of the Company. Under the terms of the note, the amount due is unsecured,
bears interest at 3% per annum, and is due 360 days from the date of issuance.
|
|
|
On
December 6, 2019, Dalrada, via its wholly owned subsidiary, Dalrada Precision, acquired, by stock exchange agreement, one hundred
percent of Likido Ltd. (HQ) in exchange of 6,118,000 shares of the Company’s common stock. Likido, a United Kingdom engineering-design
company based in Edinburgh, Scotland. Likido is an international technology company, developing advanced solutions for the harvesting
and recycling of energy. Using its novel, heat pump systems (patent pending), Likido is working to revolutionize the renewable
energy sector with the provision of innovative modular process technologies to maximize the capture and reuse of thermal energy
for integrated heating and cooling applications. With uses across industrial, commercial and residential sectors, Likido provides
cost savings and the minimized carbon emissions across global supply chains. Likido's technologies enable the effective recovery
and recycling of process energy, mitigating against climate change and enhancing quality of life through the provision of low-carbon
heating and cooling systems. In connection with the purchase of Likido, the Company is obligated to fund operations for a
total up to $600,000. Subsequent to June 30, 2019, the Company incurred research and development expenses of $260,000.
|