SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

 For the quarterly period ended June 30, 2020

 

 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

 For the transition period from

 

 Commission File No. 333-191725

 

 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.)

 

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

(Address of Principal Executive Offices)

619 722-5505

(Issuer’s telephone number)

None

(Former name, address and fiscal year, if changed since last report)  

Check whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☐   No ☒

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ☐  No ☒

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

☐  Large accelerated filer ☐  Accelerated filer
☐  Non-accelerated filer ☒  Smaller reporting company

 

APPLICABLE ONLY TO CORPORATE ISSUERS:

 

As of May 14, 2021 Regen Biopharma, Inc. had 3,746,423788 common shares outstanding.

 

As of May 25, 2021 Regen Biopharma, Inc. had 414, 147,858 shares of Series A Preferred Stock outstanding.

 

As of May 25, 2021 Regen Biopharma, Inc. had 50,000 shares of Series AA Preferred Stock outstanding.

 

As of May 25,2021 Regen Biopharma, Inc. had 44,000,000 shares of Series M Preferred Stock outstanding.

 

As of May 25,2021 Regen Biopharma, Inc. had 10,000 shares of Series NC Preferred Stock outstanding

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):

Yes ☐  No ☒

1 
 

 

PART I - FINANCIAL INFORMATION

Item 1. - Financial Statements

REGEN BIOPHARMA , INC.        
CONSOLIDATED CONDENSED BALANCE SHEETS        
         
    As of   As of
   

June 30,

2020

  September 30, 2019
    (unaudited)    
ASSETS        
CURRENT ASSETS                
Cash   $ —       $ 7,855  
Accounts Receivable, Related Party     75,466       71,186  
Prepaid Expenses     40       76  
     Total Current Assets     75,506       79,117  
                 
OTHER ASSETS                
Investment Securities     19,969       19,969  
Total Other Assets     19,969       19,969  
TOTAL ASSETS   $ 95,475     $ 99,087  
LIABILITIES AND STOCKHOLDERS' EQUITY                
Current Liabilities:                
Accounts payable     107,430       92,000  
Notes Payable     62,127       88,627  
Accrued payroll taxes     4,241       4,241  
Accrued Interest     754,951       525,335  
Accrued Rent     23,548       5,000  
Accrued Payroll     1,148,819       972,158  
Other Accrued Expenses     41,423       41,423  
Bank Overdraft     854          
Due to Investor     20,000       20,000  
Derivative Liability     4,020,486       7,200,528  
Convertible Notes Payable Less  unamortized discount     2,454,604       2,051,537  
Unearned Income             0  
Convertible Notes Payable, Related Parties Less  unamortized discount     16,061       2,056  
Total Current Liabilities     8,654,546       11,002,904  
Long Term Liabilities:                
Convertible Notes Payable less  unamortized discount                
Convertible Notes Payable, Related Parties Less  unamortized discount             4,978  
Total Long Term Liabilities             4,978  
Total Liabilities     8,654,546       11,007,882  
                 
STOCKHOLDERS' EQUITY (DEFICIT)                
Common Stock ($.0001 par value) 500,000,000 shares authorized; 4,800,000,000 authorized and    1,605,000,246 issued and outstanding as of June 30, 2020 and 4,800,000,000 authorized and 600,001,406 shares issued and outstanding September 30, 2019     160,498       59,998  
Preferred Stock, 0.0001 par value, 800,000,000 authorized as of September 30, 2019  and June 30,2020 respectively                
Series A Preferred 300,000,000 authorized, 353,615,105 and 348,376,230 outstanding as of  June 30,2020 and September 30, 2019 respectively     35,362       34,838  
Series AA Preferred $0.0001 par value 600,000 authorized and 50, 000 and 50,000   outstanding as of September 30, 2019 and June 30,2020 respectively     5       5  
Series M Preferred $0.0001 par value 300,000,000 authorized and and 38,000,000  and 44,000,000 outstanding as of September 30, 2019 and June 30, 2020 respectively     4,400       3,800  
Additional Paid in capital     8,298,393       8,261,993  
Contributed Capital     728,791       728,658  
Retained Earnings (Deficit)     (17,786,519 )     (19,998,086 )
Total Stockholders' Equity (Deficit)     (8,559,071 )     (10,908,795 )
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)   $ 95,475     $ 99,087  
                 
The Accompanying Notes are an Integral Part of These Financial Statements

2 
 

 

REGEN BIOPHARMA , INC.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(unaudited)        

 

    Quarter Ended June 30 2020   Quarter Ended June 30 2019   Nine Months  Ended June 30 2020   Nine Months  Ended June 30 2019
REVENUES                
Revenues, Related Party   $ 27,425     $ 27,425     $ 82,274     $ 82,274  
                                 
COST AND EXPENSES                                
Research and Development     12       15,328       10,354       23,268  
General and Administrative     43,749       111,292       205,994       396,708  
Consulting and Professional Fees             23,525       37,786       184,645  
Rent             15,000       18,548       45,000  
Total Costs and Expenses     43,761       165,145       272,682       649,621  
                                 
OPERATING INCOME (LOSS)   $ (16,336 )   $ (137,720 )   $ (190,408 )   $ (567,347 )
                                 
OTHER INCOME & (EXPENSES)                                
Interest Income                             1,302  
Other Income                                
Dividend Income                                
Loss on Sale of Securities                             (57,697 )
Unrealized Gain(Loss) Investment Securities             56277               (2,870 )
Interest Expense     (81,343 )     (70,685 )     (252,000 )     (212,626 )
Refunds of amounts previously paid                             115  
Interest Expense attributable to                                
Amortization of Discount     (137,603 )     (482,036 )     (526,422 )     (1,160,136 )
Gain (Loss) on Early Extinguishment Convertible Debt             33,567               33,567  
Bad Debt Expense                             (118,121 )
Other Than Temporary Impairment Recognized                                
Derivative Income (Expense)     3,441,227       (3,804,486 )     3,180,398       (2,409,391 )
TOTAL OTHER INCOME (EXPENSE)     3,222,281       (4,267,363 )     2,401,975       (3,925,856 )
                                 
NET INCOME (LOSS)   $ 3,205,944     $ (4,405,083 )   $ 2,211,567     $ (4,493,203 )
Less:Net (Income) Loss attributable to KCL, Therapeutics, Inc.             (4,791 )             (7,291 )
NET INCOME (LOSS) attributable to common shareholders   $ 2,564,755     $ (4,409,874 )   $ 1,769,254     $ (4,500,494 )
                                 
BASIC AND FULLY DILUTED EARNINGS (LOSS) PER SHARE   $ 0.0016     $ (0.0514 )   $ 0.0007     $ (0.01362 )
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING     1,605,000,246       85,870,762       2,414,039,326       330,314,186  
                                 
The Accompanying Notes are an Integral Part of These Financial Statements

3 
 

REGEN BIOPHARMA , INC.

Condensed Consolidated Statement of Shareholder's Deficit

Nine Months Ended June 30,2019

(unaudited)

 

        Series A  Preferred   Series AA Preferred   Common   Series M Preferred                    
        Shares   Amount   Shares   Amount   Shares   Amount   Shares   Amount   Additional Paid-in Capital   Retained Earnings   Contributed Capital   Accumulated  Other Comprehensive Income (Loss)   Noncontrolling Interest   Total
      Balance September 30, 2018     140,434,496     $ 14,044       50,000     $ 5       180,315,107     $ 18,030       38,000,000     $ 3,800     $ 7,517,888     $ (17,457,044 )   $ 728,658     $ 52,948     $ 0     $(9,121,670)
10/1/2018     5128205 shares issued for debt                                     5,128,205       513                       29,487                                     30,000
10/18/2018     8961988 shares issued for debt                                     8,961,988       896                       29,754                                     30,650
10/23/2018     2019140 shares issued for debt                                     2,019,140       202                       7,410                                     7,612
10/29/2018     3015618 shares issued for debt                                     3,015,618       302                       11,066                                     11,368
11/15/2018     7100591 shares issued for debt                                     7,100,591       710                       29,290                                     30,000
11/20/2018     3656020 shares issued for debt     3,656,020       366                                                       5,099                                     5,465
11/28/2018     9198923 shares issued for debt                                     29,033,181       2,903                       47,813                                     50,716
11/28/2018     286232 shares issued for expenses                                     286,232       29                       471                                     500
12/19/2018     5184674 shares issued for debt                                     5,184,674       518                       9,929                                     10,447
12/26/2018     617283 shares issued for expenses                                     617,283       62                       438                                     500
12/26/2018     10382717 shares issued for debt                                     10,382,717       1,038                       7,372                                     8,410
12/31/2018     Derecognition of Accumulated Other Comprehensive Income                                                                             52,948               (52,948 )           0
12/31/2019     Adjustment for Adoption ASU 2014 -09                                                                             29,186                             29,186
12/31/2018     Net Income for the Quarter Ended December 31, 2019                                                                             245,057                             245,057
      Balance 12/31/2018     144,090,516       14,409       50,000       5       252,044,737       25,203       38,000,000       3,800       7,696,017       (17,129,853 )     728,658       0       0     (8,661,761)
1/3/2019     10585123 shares issued for debt                                     10,585,123       1,059                       12,692                                     13,751
1/9/2019     10000000 shares issued for services     10,000,000       1,000                                                       48,000                                     49,000
1/23/2019     5774947 shares issued for debt                                     5,774,947       577                       6,555                                     7,132
1/25/2019     877310 shares issued for expenses                                     877,310       88                       412                                     500
1/25/2019     12222690 shares issued for debt                                     12,222,690       1,222                       5,744                                     6,966
2/11/2019     10473668 shares issued for debt                                     10,473,668       1,047                       11,887                                     12,934
2/13/2019     Shares of subsidiary issued for services                                                                     441                                     441
2/15/2019     13821193 shares isued for debt                                     13,821,193       1,382                       14,374                                     15,756
2/19/2019     13790783 shares issued for debt                                     13,790,783       1,379                       18,341                                     19,720
3/1/2019     8004463 shares issued for debt                                     8,004,463       800                       7,844                                     8,644
3/4/2019     694508 shares issued for expenses                                     694,508       69                       431                                     500
3/4/2019     14305492 shares issued for debt                                     14,305,492       1,431                       8,868                                     10,299
3/19/2019     833449 shares issued for expenses                                     833,449       83                       417                                     500
3/19/2019     27377166 shares issued for debt                                     27,377,166       2,738                       19,766                                     22,504
3/22/2019     6309524 shares issued for debt                                     6,309,524       631                       4,669                                     5,300
3/31/2019     Adjustment for noncontrolling Interest KCL Therapeutics, Inc.                                                                     (2,934 )                             2,934     0
3/31/2019     Net Loss for Quarter Ended March 31 2019                                                                             (333,177 )                           (333,177)
      Balance March 31 2019     154,090,516     $ 15,409       50,000     $ 5       377,115,053     $ 37,710       38,000,000     $ 3,800.00     $ 7,853,523     $ (17,463,031 )   $ 728,658     $ 0     $ 2,934     $(8,820,991)
4/1/2019     895116 shares issued for debt                                     8,958,116       896                       3,403                                     4,299
4/1/2019     1041884 shares issued for expenses                                     1,041,884       104                       396                                     500
4/2/2019     12992389 shares issued for debt                                     12,992,389       1,299                       8,055                                     9,354
4/8/2019     17971064 shares issued for debt                                     17,971,064       1,797                       12,220                                     14,017
4/9/2019     11832569 shares issued for debt                                     11,832,569       1,183                       7,336                                     8,519
4/11/2019     19472820 shares issued for debt                                     19,472,820       1,947                       13,241                                     15,188
4/18/2019     14824958 shares issued for debt                                     14,824,958       1,482                       9,191                                     10,673
4/29/2019     22243153 shares issued for debt                                     22,243,153       2,224                       15,125                                     17,349
4/30/2019     895116 shares issued for debt                                     8,958,116       896                       3,403                                     4,299
4/30/2019     1041884 shares issued for expenses                                     1,041,884       104                       396                                     500
5/18/2019     1253847 shares issued for expenses                                     1,253,847       125                       375                                     500
5/18/2019     20746153 shares issued for debt                                     20,746,153       2,075                       6,198                                     8,273
6/27/2019     104285714 shares issued for debt     194,285,714       19,429                                                       320,571                                     340,000
6/30/2019     Adjustment for noncontrolling Interest KCL Therapeutics, Inc.                                                                     (12,708 )                             12,708  
6/30/2019     Net Loss for Quarter ended June 30, 2019                                                                             (4,405,083 )                           (4,405,083)
      Balance June 30, 2019     348,376,230     $ 34,838                       518,452,006     $ 51,843       38,000,000     $ 3,800.00     $ 8,240,724     $ (21,868,114 )   $ 728,658     $ 0     $ 15,642     $(12,792,604)
                                                                                                               
The Accompanying Notes are an Integral Part of These Financial Statements

 

4 
 

 

REGEN BIOPHARMA , INC.

Condensed Consolidated Statement of Shareholder's Deficit

Nine Months Ended June 30,2020

(Unaudited)                              

 

        Series A  Preferred   Series AA Preferred   Common   Series M Preferred                    
        Shares   Amount   Shares   Amount   Shares   Amount   Shares   Amount   Additional Paid-in Capital   Retained Earnings   Contributed Capital   Accumulated Other Comprehensive Income (Loss)   Noncontrolling Interest   Total
      Balance September 30, 2019     348,376,230     $ 34,838       50,000       5       600,001,406     $ 59,998       38,000,000     $ 3,800     $ 8,261,993     $ (19,998,086 )   $ 728,658     $ —       $ —       $(10,908,795)
10/29/2019     Shares issued for Debt                                     15,100,608       1,510                       3,397                                     4,907
10/29/2019     Shares issued for Interest                                     4,376,007       438                       984                                     1,422
10/29/2019     Shares issued for debt                                     20,834,497       2,083                       7,917                                     10,000
10/29/2019     Shares Issued for Interest                                     3,418,941       342                       1,299                                     1,641
11/5/2019     Shares issued for Debt                                     25,002,163       2,500                       6,500                                     9,000
11/5/2019     Shares Issued for Interest                                     4,217,031       422                       1,096                                     1,518
11/5/2019     Shares issued for Debt                                     19,254,584       1,925                       3,850                                     5,775
11/5/2019     Shares Issued for Interest                                     8,745,416       875                       1,750                                     2,625
11/5/2019     Shares issued for Debt                                     30,555,555       3,056                       7,944                                     11,000
11/15/2019     Shares isued for Services                                                     6,000,000       600                                             600
11/27/2019     Shares issued for Interest                                     30,946,444       3,095                       (310 )                                   2,785
11/27/2019     Shares issued for Fees                                     5,555,556       556                       (56 )                                   500
11/27/2019     Shares issued for Debt                                     36,500,000       3,650                       2,920                                     6,570
11/27/2019     Shares Issued for Debt                                     31,251,177       3,125                       3,625                                     6,750
11/27/2019     Shares issued for Interest                                     4,393,684       439                       510                                     949
12/3/2019     Shares Issued for Debt                                     30,558,094       3,056                       2,444                                     5,500
12/3/2019     Shares issued for Interest                                     5,556,017       556                       444                                     1,000
12/4/2019     Shares Issued for Debt                                     31,234,276       3,123                       2,967                                     6,090
12/4/2019     Shares issued for Interest                                     5,308,288       531                       504                                     1,035
12/5/2019     Shares Issued for Debt                                     41,922,222       4,192                       3,354                                     7,546
12/6/2019     Shares Issued for Debt                                     10,064,761       1,006                       (99 )                                   907
12/6/2019     Shares issued for Interest                                     26,310,416       2,631                       (260 )                                   2,371
12/6/2019     Shares issued for Fees                                     5,548,380       555                       (55 )                                   500
12/10/2019     Shares Issued for Debt                                     49,729,272       4,973                       905                                     5,878
12/13/2019     Shares Issued for Debt                                     37,777,157       3,778                       (1,512 )                                   2,266
12/13/2019     Shares issued for Interest                                     6,101,694       610                       (244 )                                   366
12/13/2019     Shares issued for Fees                                     8,335,648       834                       (334 )                                   500
12/13/2019     Shares Issued for Debt                                     52,200,000       5,220                       (2,088 )                                   3,132
12/16/2019     Shares Issued for Debt                                     42,081,411       4,208                       1,262                                     5,470
12/16/2019     Shares issued for Interest                                     7,677,742       768                       230                                     998
12/19/2019     Shares Issued for Debt                                     41,433,258       4,143                       3,314                                     7,457
12/19/2019     Shares issued for Interest                                     566,742       57                       45                                     102
12/20/2019     Shares Issued for Debt                                     50,462,834       5,046                       (1,766 )                                   3,280
12/20/2019     Shares issued for Interest                                     9,477,166       948                       (332 )                                   616
12/20/2019     Dhares issued for Debt                                     59,900,000       5,990                       (2,396 )                                   3,594
12/23/2019     Shares issued for Debt                                     31,421,505       3,142                       (2,200 )                                   942
12/23/2019     Shares issued for Interest                                     11,808,081       1,181                       (827 )                                   354
12/23/2019     Shares issued for Fees                                     16,678,081       1,668                       (1,168 )                                   500
      Capital contribution quarter ended 12/31/2019                                                                                     133                     133
      Net Income Quarter Ended 12/31/2019                                                                             3,082,768                             3,083,375
      Balance December 31, 2019     348,376,230     $ 34,838       50,000       5       1,422,306,114     $ 142,228       44,000,000     $ 4,400     $ 8,305,608.88     $ (16,915,318 )   $ 728,791                     $(7,699,447)
1/2/2020                                           69,685,185       6,969                       (3,206 )                                   3,763
1/2/2020                                           36,826,333       3,683                       (2,578 )                                   1,105
1/2/2020                                           17,480,000       1,748                       (1,224 )                                   524
1/2/2020                                           16,666,667       1,667                       (1,167 )                                   500
1/23/2020                                           6,739,096       674                       (472 )                                   202
1/23/2020                                           18,615,919       1,862                       (1,304 )                                   558
1/23/2020                                           16,680,931       1,668                       (1,168 )                                   500
      Net Loss Quarter Ended March 31,2020                                                                             (4,077,145 )                           (4,077,145)
      Balance March  31, 2020     348,376,230     $ 34,838       50,000       5       1,605,000,246     $ 160,498       44,000,000     $ 4,400     $ 8,294,491     $ (20,992,464 )   $ 728,791                     $(11,769,440)
5/12/2020     Preferred Shares issued for Debt     3550977.18       355.097718                                                       2,645                                     3,000
5/12/2020     Preferred Shares issued for Interest     1687897.82       168.789782                                                       1,257                                     1,426
      Net Income ( Loss) Quarter Ended June 30, 2020                                                                             3,205,944                             3,205,944
      Balance June 30, 2020     353,615,105     $ 35,362       50,000       5       1,605,000,246     $ 160,498       44,000,000     $ 4,400     $ 8,298,393     $ (17,786,519 )   $ 728,791                     $(8,559,070)
                                                                                                               
The Accompanying Notes are an Integral Part of These Financial Statements

5 
 

REGEN BIOPHARMA , INC.

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(unaudited)

 

    Nine Months Ended June 30   Nine Months Ended June 30
    2020   2019
CASH FLOWS FROM OPERATING ACTIVITIES                
                 
Net Income (loss)   $ 2,211,567     $ (4,493,203 )
Adjustments to reconcile net Income to net cash                
Preferred Stock issued to Consultants     600       49,000  
Common Stock issued to consultants                
Common Stock issued for interest                
Preferred Stock issued for interest                
Subsidiary Stock issued to consultants             46  
Subsidiary Stock issued as compensation             294  
Common Stock issued for Expenses     3,000       4,000  
Preferred Stock Issued For Interest                
Increase (Decrease) in Interest expense attributable to amortization of Discount     526,422       1,160,136  
(Gain) Loss on Sale of Investment Securities             57,697  
Increase(Decrease) in (Gain)/Loss on early extinguishment of debt             (33,567 )
Increase ( Decrease) in Recognition of Other than Temporary Impairment                
Changes in operating assets and liabilities:                
Unrealized (Gain) Loss on Investment Securities             2,870  
Increase (Decrease) in Accounts Payable     15,431       13,977  
Increase ( Decrease) in Bank Overdraft                
increase (Decrease) Unearned Income             (38,814 )
(Increase) Decrease in Accounts Receivable     (6,374 )     (43,460 )
Increase (Decrease) in accrued Expenses     447,373       432,102  
(Increase) Decrease in Prepaid Expenses     36       13,271  
Increase ( Decrease) in Contributed Capital     133          
Increase in Derivative Expense     (3,180,398 )     2,409,391  
(Increase) Decrease in Interest Receivable             (1,303 )
(Increase) Decrease  in Notes Receivable             4,551  
Increase (Decrease) in Bad Debt Expense             118,121  
Increase (Decrease) in Bank Overdraft     854       63  
Net Cash Provided by (Used in) Operating Activities   $ 18,645     $ (344,828 )
                 
Cash Flows from Investment Activities                
                 
Increase(Decrease) in Sale of Investment Securities             49,858  
Dividend Income                
Net Cash Provided By Investment Activities             49,858  
                 
CASH FLOWS FROM FINANCING ACTIVITIES                
Common Stock issued for Cash                
Preferred Stock issued for Cash                
Increase ( Decrease)  in Notes Payable     (26,500 )     62,513  
Increase in Convertible Notes payable             226,250  
Increase in Due to Investor                
Net Cash Provided by (Used in) Financing Activities     (26,500 )     288,763  
Net Increase (Decrease) in Cash   $ (7,855 )   $ (6,207 )
                 
Cash at Beginning of Period   $ 7,855     $ 8,019  
Cash at End of Period   $ (0 )   $ 1,812  
                 
Supplemental Disclosure of Noncash investing and financing activities:                
Common shares Issued for Debt   $ 111,133     $ 355,938  
Preferred Shares Issued for Debt   $ 3,000     $ 345,000  
Cash Paid for Interest           $ 11,520  
Common shares Issued for Interest   $ 18,864     $ 38,242  
Preferred Shares issued for Interest   $ 1,426          
                 
The Accompanying Notes are an Integral Part of These Financial Statements 

6