Notes
to Condensed Consolidated Financial Statements
(Unaudited)
NOTE
1. ORGANIZATION AND DESCRIPTION OF THE BUSINESS
GBS
Inc. and its wholly owned subsidiary, GBS Operations Inc. formed on December 5, 2016 under the laws of the state of Delaware. Glucose
Biosensor Systems (Greater China) Pty Ltd (“GBSPL”) was formed on August 4, 2016 under the laws of New South Wales, Australia
and was renamed to GBS (APAC) Pty Ltd on October 14, 2020. Glucose Biosensor Systems (Japan) Pty Ltd and Glucose Biosensor Systems (APAC)
Pty Ltd were formed under the laws of New South Wales, Australia on February 22, 2017 and February 23, 2017 respectively. These companies
(collectively, “we,” “us,” “our,” or the “Company,”) were formed to provide a non-invasive,
pain free innovation to make it easier for people to manage diabetes using the Company’s Saliva Glucose Biosensor (“SGB”
and, together with the software app that interfaces the SGB with the Company’s digital information system, the “SGT”).
Our headquarters are located in New York.
We
are a biosensor diagnostic technology company operating across the Asia-Pacific Region (the “APAC Region”) and an interest
in the USA Region with the biosensor platform comprising of biochemistry, immunology, tumor markers, hormones, and nucleic acid diagnostic
modalities, and worldwide with our SARS-CoV-2 test.
Our
objective is to introduce and launch initially the SGB, the diagnostic test that stems from the Biosensor Platform that we license from
Life Science Biosensor Diagnostics Pty Ltd (“LSBD” or the “Licensor”), in our regions and the SARS-CoV-2 test
globally. This will be followed by developing the platform to its full capacity testing across the diagnostic modalities of immunology,
hormones, chemistry, tumor markers and nucleic acid tests.
NOTE
2. LIQUIDITY
The
Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 205-40, Presentation
of Financial Statements - Going Concern requires management to assess an entity’s ability to continue as a going concern within
one year of the date of filing of this Quarterly Report on Form 10-Q with the SEC. In each reporting period, including interim periods,
an entity is required to assess conditions known and reasonably knowable as of the financial statement issuance date to determine whether
it is probable an entity will not meet its financial obligations within one year from the financial statement issuance date. Substantial
doubt about an entity’s ability to continue as a going concern exists when conditions and events, considered in the aggregate,
indicate it is probable the entity will be unable to meet its financial obligations as they become due within one year after the date
the financial statements are issued.
The
Company is an emerging growth company and has not generated any revenues to date. As such, the Company is subject to all of the risks
associated with emerging growth companies. Since inception, the Company has incurred losses and negative cash flows from operating activities.
The Company does not expect to generate positive cash flows from operating activities in the near future until such time, if at all,
the Company completes the development process of its products, including regulatory approvals, and thereafter, begins to commercialize
and achieve substantial acceptance in the marketplace for the first of a series of products in its medical device portfolio.
The
Company incurred a net loss of $1,344,133
and $6,245,796
for the three and nine months ended March
31, 2022, respectively (net loss of $3,142,667
and $6,209,971
for the three and nine months ended March
31, 2021, respectively). As of March 31, 2022, the Company has shareholders’ equity of $8,703,491,
working capital of $8,443,248,
and an accumulated deficit of $29,097,699.
In
the near future, the Company anticipates incurring operating losses and does not expect to experience positive cash flows from operating
activities and may continue to incur operating losses until it completes the development of its products and seeks regulatory approvals
to market such products.
The
Company’s unaudited condensed consolidated financial statements have been prepared on a going concern basis which contemplates
the realization of assets and satisfaction of liabilities and commitments in the normal course of business. The unaudited condensed consolidated
financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the
amounts and classification of liabilities should the Company be unable to continue as a going concern.
The
Company believes it has sufficient working capital to finance its operations for at least the next twelve months, as such, these unaudited
condensed consolidated financial statements are prepared on the going concern basis.
NOTE
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis
of presentation
The
unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally
accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, our unaudited condensed consolidated financial statements do not include all the information
and footnotes required by GAAP for complete financial statements. Normal and recurring adjustments considered necessary for a fair statement
of the results for the interim periods, in the opinion of the Company’s management, have been included. Operating results for the
three and nine months ended March 31, 2022, are not necessarily indicative of the results that may be expected for the year ending June
30, 2022. The accompanying unaudited condensed consolidated financial statements and related footnote disclosures should be read in conjunction
with the consolidated financial statements and notes thereto included in our Form 10-K for the year ended June 30, 2021, which was filed
with the U.S. Securities and Exchange Commission (the “SEC”) on September 16, 2021 and amended on Form 10-K/A filed with
the SEC on September 30, 2021 (as amended, the “2021 Form 10-K”).
Principles
of consolidation
These
accompanying unaudited condensed consolidated financial statements include the accounts of the Company, all wholly owned and majority-owned
subsidiaries in which the Company has a controlling voting interest and, when applicable, variable interest entities in which the Company
has a controlling financial interest or is the primary beneficiary. Investments in affiliates where the Company does not exert a controlling
financial interest are not consolidated.
All
significant intercompany transactions and balances have been eliminated upon consolidation.
Use
of estimates
The
preparation of consolidated financial statements in conformity with 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 revenue and expenses during the reporting period. Actual results could materially differ from
those estimates.
Revenue
recognition
Revenue
from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by delivering the promised
goods or service deliverables to the customers. A good or service deliverable is transferred to a customer when, or as, the customer
obtains control of that good or service deliverable.
Development
and regulatory approval costs
Expenditures
relating to R&D are expensed as incurred and recorded in development and regulatory approval in the Condensed Consolidated Statements
of Operations and Other Comprehensive Loss. R&D expenses include external expenses incurred under arrangements with third parties;
salaries and personnel-related costs; license fees to acquire in-process technology and other expenses. The Company recognizes the benefit
of refundable R&D tax refunds as a R&D tax refund income when there is reasonable assurance that the amount claimed will be recovered
(refer to the R&D tax refund discussion below).
Intellectual
property acquired for a particular research and development project and that have no alternative future uses (in other research and development
projects or otherwise) are expensed in research and development costs at the time the costs are incurred.
In
certain circumstances, the Company may be required to make advance payments to vendors for goods or services that will be received in
the future for use in R&D activities. In such circumstances, the non-refundable advance payments are deferred and capitalized, even
when there is no alternative future use for the R&D, until the related goods or services are provided. In circumstances where amounts
have been paid in excess of costs incurred, the Company records a prepaid expense.
R&D
tax refund
The
Company measures the R&D grant income and receivable by considering the time spent by employees on eligible R&D activities and
R&D costs incurred to external service providers. The R&D tax refund receivable is recognized as an income as the Company believes
that it probable that the amount will be recovered in full through a future claim. A total of $181,598 R&D tax refund income is recognized
within other income during the current period.
Foreign
currency translation
Assets
and liabilities of foreign subsidiaries are translated from local (functional) currency to reporting currency (U.S. dollar) at the rate
of exchange in effect on the consolidated balance sheets date; income and expenses are translated at the average rate of exchange prevailing
during the year. The functional currency of GBS Inc. is the United States dollar. Foreign currency movements resulted in a gain of $2,793
and a loss of $57,334 for the three and nine months ended March 31, 2022, respectively (a loss of $262,032 and a loss of $278,744 for
the three and nine months ended March 31, 2021, respectively).
Income
taxes
In
accordance with the provisions of ASC 740, Income Taxes, tax positions initially need to be recognized in the consolidated financial
statements when it is more likely than not that the positions will be sustained upon examination by taxing authorities. It also provides
guidance for de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.
As
of March 31, 2022, the Company had no uncertain tax positions that qualified for either recognition or disclosure in the consolidated
financial statements. Additionally, the Company had no interest and penalties related to income taxes.
Licensing
rights
During
the first quarter of the fiscal year ended June 30, 2020, the Company purchased the license right procurement assets from LSBD for an
amount of $976,308 in relation to the development and approval process for the Glucose Biosensor Technology. The Company recorded the
license at the historical carrying value in the books of LSBD which was $nil and recorded the amount paid as a deemed dividend. The Company
has agreed to pay royalties of sales & milestones payments as defined.
On
September 12, 2019, the Company entered into an amended and restated license agreement for Saliva Biosensor Technology. On June 23, 2020,
the Company entered into a license agreement with LSBD for the worldwide rights to SARS-CoV-2 application of the Saliva Glucose Biosensor.
In
relation to these licenses, there is no set expiration date for the license. However, the exclusivity of the license granted under the
license agreement runs until the expiration of the patent portfolio covered by the agreement which is currently until 2033. No royalties
have been incurred through to March 31, 2022 (March 31, 2021: $nil).
On
March 31, 2021, the Company entered into an agreement with LSBD to provide the Company an option to acquire an exclusive license to use
LSBD’s intellectual property in the Saliva Glucose Biosensor in North America (the “Option Agreement”). The Option
Agreement has a term of two years and the exercise price for the option is $5,000,000. The fee of $500,000 incurred for the option was
expensed in the period incurred.
Deferred
grant income
On
June 30, 2021, the Company executed a definitive grant agreement with the Australian Government to assist with building a manufacturing
facility. The grant has a total value of up to $4.7 million upon the achievement of certain milestones. Proceeds from the grant will
be used primarily to reimburse the Company for costs incurred in the construction of the manufacturing facility.
Accounting
for the grant does not fall under ASC 606, Revenue from Contracts with Customers, as the Australian Government will not benefit
directly from our manufacturing facility. As there is no authoritative guidance under U.S. GAAP on accounting for grants to for-profit
business entities, we applied International Accounting Standards 20 (“IAS 20”), Accounting for Government Grants and Disclosure
of Government Assistance by analogy when accounting for the Australian Government grant to the Company.
The
Australian Government grant proceeds, which will be used to reimburse construction costs incurred, meet the definition
of grants related to assets as the primary purpose for the payments is to fund the construction of a capital asset. Under IAS 20, government
grants related to assets are presented in the statement of financial position either by setting up the grant as deferred income or by
deducting the grant in arriving at the carrying amount of the asset. Either of these two methods of presentation of grants related to
assets in financial statements are regarded as acceptable alternatives under IAS 20. We have elected to record the grants received as
deferred income using the first method.
Under
IAS 20, government grants are initially recognized when there is reasonable assurance the conditions of the grant will be met and the
grant will be received. As of June 30, 2021, management concluded that there was reasonable assurance the grant conditions will be met
and all milestone payment received. The total grant value of $4.7 million was recognized as both a grant receivable and deferred grant
income on the grant effective date. The grant receivable was reduced by $1.9 million for payments received during the nine months ended
March 31, 2022 (no payments were received during the three months ended March 31, 2022) and $2.8 million remains in grant receivable
on the Condensed Consolidated Balance Sheets.
After
initial recognition, under IAS 20, government grants are recognized in earnings on a systematic basis in a manner that mirrors the manner
in which the Company recognizes the underlying costs for which the grant is intended to compensate. Further, IAS 20 permits for recognition
in earnings either separately under a general heading such as other income, or as a reduction of the cost of the asset. The Company has
elected to recognize government grant income separately within other income. Accordingly, the deferred income related to the construction
of the manufacturing facility will be amortized over the period of depreciation for the related factory as other income. A total of $179,264
deferred grant income was recognized within other income during the current period.
Net
loss per share attributable to common shareholders (“EPS”)
The
Company calculates earnings per share attributable to common shareholders in accordance with ASC 260, Earning Per Share. Basic
net income (loss) per share attributable to common shareholders is calculated by dividing net income (loss) attributable to common shareholders
by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per common share is calculated
by dividing net income (loss) attributable to common shareholders by weighted-average common shares outstanding during the period plus
potentially dilutive common shares, such as share warrants.
Potentially
dilutive common shares shall be calculated in accordance with the treasury share method, which assumes that proceeds from the exercise
of all warrants are used to repurchase common share at market value. The number of shares remaining after the proceeds are exhausted
represents the potentially dilutive effect of the securities.
As
the Company has incurred net losses in all periods, certain potentially dilutive securities, including convertible preferred stock, warrants
to acquire common stock, and convertible notes payable have been excluded in the computation of diluted loss per share as the effects
are antidilutive.
Recent
accounting pronouncements
As
the Company is an emerging growth company, we have elected to defer the adoption of new accounting pronouncements until they would apply
to private companies.
In
August 2020, the FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (“ASU 2020-06”). This update
simplifies the guidance on the issuer’s accounting for convertible debt instruments by removing the separation models for (1) convertible
debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature. As a result, entities will
not separately present in equity an embedded conversion feature in such debt and will account for a convertible debt instrument wholly
as debt, unless certain other conditions are met. The elimination of these models will reduce reported interest expense and increase
reported net income for entities that have issued a convertible instrument that is within the scope of ASU 2020-06. Also, ASU 2020-06
requires the application of the if-converted method for calculating diluted earnings per share and treasury stock method will be no longer
available. ASU 2020-06 is applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than
fiscal years beginning after December 15, 2020. The Company has not early adopted and continues to evaluate the impact of the provisions
of ASU 2020-06.
In
February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). This update requires all leases with a term greater
than 12 months to be recognized on the balance sheet through a right-of-use asset and a lease liability and the disclosure of key information
pertaining to leasing arrangements. This new guidance is effective for fiscal years beginning after December 15, 2021, and interim period
within fiscal years beginning after December 15, 2022 as amended by ASU 2020-05 with early adoption permitted. The Company has not early
adopted the standard and continues to evaluate the impact.
In
December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes (“ASU 2019-12”).
This update is intended to simplify various aspects of the accounting for income taxes. ASU 2019-12 removes certain exceptions to the
general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This standard is effective
for fiscal years and interim periods within those fiscal years, beginning after December 15, 2020. The Company adopted ASU 2019-12 as
of July 1, 2021 and the adoption did not have a material impact on the Company’s unaudited interim condensed consolidated financial
statements.
In
June 2016, the FASB issued ASU No. 2016-13 (Topic 326), Financial Instruments – Credit Losses (“ASU 2016-13”). This
update (i) significantly changes the impairment model for most financial assets that are measured at amortized cost and certain other
instruments from an incurred loss model to an expected loss model which will be based on an estimate of current expected credit loss
(“CECL”) (ASC 326-20); and (ii) provides for recording credit losses on available-for-sale (“AFS”) debt securities
through an allowance account (ASC 326-30). The standard also requires certain incremental disclosures. Subsequently, the FASB issued
several ASUs to clarify, improve, or defer the adoption of ASU 2016-13. ASU 2016-13, as amended by ASU 2019-10, is applicable for Smaller
Reporting Companies (“SRCs”) for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company
has not early adopted the standard and continues to evaluate the impact.
NOTE
4. OTHER CURRENT ASSETS
Other
current assets consist of the following:
SCHEDULE OF OTHER CURRENT ASSETS
| |
March
31, 2022 | | |
June
30, 2021 | |
Goods
and services tax receivable | |
$ | — | | |
$ | 83,278 | |
Prepayments | |
| 147,378 | | |
| 2,424,143 | |
Other
receivables | |
| 118,785 | | |
| 1,596 | |
Total | |
$ | 266,163 | | |
$ | 2,509,017 | |
As
of the year ended June 30, 2021, the Company made $2,600,000 in prepayments for research and development. Of the total prepayments, $504,000
was recorded as a non-current asset based on the expected outflow of the budgeted research and development costs. Under the terms of
the R&D agreement with BiosensX North America Inc., dated April 20, 2021, in which LSBD also committed to fund $2,600,000 as a direct
50% shareholder in BiosensX North America Inc., the Company would have the right to apply any differences in contributions between LSBD
and the Company towards any amounts owing between the Company and LSBD, including the exercise price of the option ($5,000,000) as included
in the Option Agreement dated March 31, 2021 with LSBD (see Note 3).
During
the nine months ended March 31, 2022, the Company assessed the current status of the R&D activities and determined that the most
likely outcome of the prepaid R&D contribution would be to be application against the exercise price in the Option Agreement and/or
future royalty payments due for the Glucose Biosensor intellectual property. As this payment for the license of the Glucose Biosensor
intellectual property occurred prior to regulatory approval and there is no alternative future use, the prepayment of $2,600,000 has
been expensed as development and regulatory approval costs in the Condensed Consolidated Statements of Operations and Other Comprehensive
Loss during the nine months period ended March 31, 2022.
NOTE
5. ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Accounts
payable and accrued expenses consist of the following:
SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES
| |
March
31, 2022 | | |
June
30, 2021 | |
Accounts
payable and other payables | |
$ | 811,391 | | |
$ | 1,355,894 | |
Accruals | |
| 72,893 | | |
| 112,074 | |
Total | |
$ | 884,284 | | |
$ | 1,467,968 | |
NOTE
6. SHAREHOLDERS’ EQUITY
As
of March 31, 2022, 1,401,377 and 52,400 Series A and Series B warrants were held by certain shareholders, respectively. Each warrant
is convertible into 1 share of the Company’s common stock.
On
January 1, 2022 and September 9, 2021, the Company issued 7,382 & 400 shares
respectively of common stock as a result of Series B warrants that were exercised in cashless exercise provision offered during
the Dec 2020 IPO and converted into common stock.
On
August 31, 2021, all 1,300,000 Series B Convertible Preferred Stock was converted into common stock. Each share of Series B Convertible
Preferred Stock was converted into 1 share of the Company’s common stock.
NOTE
7. RELATED-PARTY TRANSACTIONS
Sales
to and purchases from related parties are made at normal market prices and on normal commercial terms. The following transactions occurred
with LSBD during the period July 1, 2021 to March 31, 2022.
The
Company incurred a total cost of $nil and $145,733 during the three and nine months ended March 31, 2022, respectively (three and nine
months ended March 31, 2021: $nil), towards overhead cost reimbursement which includes salaries, rents and other related overheads directly
attributable to the Company which are included in general and administration expenses in the Condensed Consolidated Statements of Operations
and Other Comprehensive Loss.
NOTE
8. INVESTMENT IN AFFILIATE
On
May 29, 2020, LSBD, issued 14,000,000 common shares of BiosensX (North America) Inc. to the Company at par value of $0.001 per share.
This transaction provided the Company with a 50% interest in BiosensX (North America) Inc., the holder of the technology license for
the North America region.
The
investment in BiosensX (North America) Inc. is accounted for by use of the equity method in accordance with ASC 323, Investments -
Equity Method and Joint Ventures.
At
the date of this transaction, LSBD was the parent of both the Company and BiosensX (North America) Inc., the transfer of BiosensX shares
to the Company was deemed to be a common control transaction. As a result of the share transfer, the Company has significant influence
over BiosensX (North America) Inc.
During
the quarter, LSBD sold all its shares in GBS Inc., as a result of this as of March 31, 2022, both LSBD and GBS Inc. held 50% ownership
in BiosensX (North America) Inc. GBS Inc. determined whether it has a controlling financial interest in Biosensx (North America) Inc.
by first evaluating whether the entity is a voting interest entity or a variable interest entity under GAAP. Voting interest entities
are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides
the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decisions about
the entity’s activities. The Company consolidates voting interest entities (VIEs) in which it has all, or at least a majority of,
the voting interest. As defined in applicable accounting standards, VIEs are entities that lack one or more of the characteristics of
a voting interest entity. A controlling financial interest in a VIE is present when an enterprise has both the power to direct the activities
of the VIE that most significantly impact the VIE’s economic performance and an obligation to absorb losses or the right to receive
benefits that could potentially be significant to the VIE. The enterprise with a controlling financial interest, known as the primary
beneficiary, consolidates the VIE. The management concluded that GBS Inc. does not have a controlling financial interest in BiosensX
(North America) Inc., hence it continues to recognize its investments in BiosensX (North America) Inc. using the equity method.
The
following table summarizes the amount recorded in the unaudited condensed consolidated financial statements:
SUMMARY OF AMOUNT RECORDED IN THE CONSOLIDATED FINANCIAL STATEMENTS
| |
March
31, 2022 | | |
June
30, 2021 | |
Investment
value | |
$ | — | | |
$ | 135,692 | |
Loss
from the affiliate | |
| — | | |
| (135,692 | ) |
Carrying
amount | |
$ | — | | |
$ | — | |
NOTE
9. COMMITMENTS AND CONTINGENCIES
On
January 21, 2021, the Company entered into a sponsored research agreement with Johns Hopkins Bloomberg School of Public Health to accelerate
the development of next-generation saliva-based diagnostic tests. The Company is collaborating with the Bloomberg School of Public Health
to optimize the collection of saliva and monitoring of diverse biomarkers across a number of modalities including clinical chemistry
and infectious diseases. Johns Hopkins intend to utilize biosensor products to conduct in-field epidemiological studies. The Company
agreed to pay Johns Hopkins a total amount of $423,589 as a part of this sponsored research agreement of which $ remains payable
as of March 31, 2022.
During
February 2021 the Company signed a deed of confirmation and variation with the University of Newcastle for the research and development
of the Saliva Glucose Biosensor and the SARS-CoV-2 Antibody Biosensor. The Company agreed to pay the University of Newcastle $2,054,880
of which $499,560 remains payable as of March 31, 2022.
The
Company has no material future minimum lease commitments or purchase commitments.
From
time to time, the Company may become a party to various legal proceedings arising in the ordinary course of business. Based on information
currently available, the Company is not involved in any pending or threatened legal proceedings that it believes could reasonably be
expected to have a material adverse effect on its financial condition, results of operations or liquidity. However, legal matters are
inherently uncertain, and the Company cannot guarantee that the outcome of any potential legal matter will be favorable to the Company.
NOTE
10. INCOME TAX
The
Company shall file its income tax returns with the Internal Revenue Service and Australian Taxation Office. The Company has operating
losses carried forward of $29,097,699 which are derived from its operations in Australia and the US and are available to reduce future
taxable income. Such loss carry forwards may be carried forward indefinitely, subject to compliance with tests of continuity and additional
rules.
The
net operating loss carried forward gives rise to a deferred tax asset of approximately $7,507,983.
However, the Company has determined that a valuation
allowance of $7,507,983 against
such deferred tax asset is necessary, as it cannot be determined that the carry forwards will be utilized.
NOTE
11. LOSS PER SHARE
Basic
loss per common share is computed by dividing net loss allocable to common shareholders by the weighted average number of shares of common
stock or common stock equivalents outstanding. Diluted loss per common share is computed similar to basic loss per common share except
that it reflects the potential dilution that could occur if dilutive securities or other obligations to issue common stock were exercised
or converted into common stock.
SCHEDULE OF BASIC LOSS PER COMMON SHARE POTENTIAL DILUTIVE SECURITIES
| |
2022 | | |
2021 | | |
2022 | | |
2021 | |
| |
Three
Months Ended
March
31, | | |
Nine
Months Ended
March
31, | |
| |
2022 | | |
2021 | | |
2022 | | |
2021 | |
Net
loss attributable to GBS Inc. | |
$ | (1,335,246 | ) | |
$ | (3,127,813 | ) | |
$ | (6,227,896 | ) | |
$ | (6,184,287 | ) |
Basic
and diluted net loss per share attributed to common shareholders | |
$ | (0.09 | ) | |
$ | (0.27 | ) | |
$ | (0.43 | ) | |
$ | (0.64 | ) |
Weighted-average
number of shares outstanding | |
| 14,889,904 | | |
| 11,795,741 | | |
| 14,590,656 | | |
| 9,667,399 | |
The
following outstanding warrants and preferred shares were excluded from the computation of diluted net loss per share for the periods
presented because their effect would have been anti-dilutive:
SCHEDULE OF ANTI-DILUTIVE WARRANTS
| |
2022 | | |
2021 | | |
2022 | | |
2021 | |
| |
Three
Months Ended
March
31, | | |
Nine
Months Ended
March
31, | |
| |
2022 | | |
2021 | | |
2022 | | |
2021 | |
Warrants
- Series A | |
| 1,401,377 | | |
| 1,401,377 | | |
| 1,401,377 | | |
| 1,401,377 | |
Warrants
- Series B | |
| 52,400 | | |
| 60,982 | | |
| 52,400 | | |
| 60,982 | |
Warrants
issued to underwriters | |
| 63,529 | | |
| 63,529 | | |
| 63,529 | | |
| 63,529 | |
Pre
IPO warrants | |
| 2,736,675 | | |
| 2,736,675 | | |
| 2,736,675 | | |
| 2,736,675 | |
Warrants
issued to LSBD | |
| 3,000,000 | | |
| 3,000,000 | | |
| 3,000,000 | | |
| 3,000,000 | |
Preferred
stock - Series B | |
| - | | |
| 3,000,000 | | |
| - | | |
| 3,000,000 | |
Antidilutive securities excluded from computation of earnings per share, amount | |
| - | | |
| 3,000,000 | | |
| - | | |
| 3,000,000 | |