UNITED STATES

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

 

 

☐

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

 

For the quarterly period ended June 30, 2022

 

Commission File No. 0-22179

 

GUIDED THERAPEUTICS, INC.

(Exact Name of Registrant as Specified in Its Charter)

 

Delaware

 

58-2029543

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

5835 Peachtree Corners East, Suite B

Norcross, Georgia 30092

(Address of principal executive offices) (Zip Code)

 

(770) 242-8723

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant 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, if any, every Interactive Data File required to be submitted 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 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 or an emerging growth company. See definitions of “large accelerated filer,“ “accelerated filer“ and “smaller reporting company“ and “emerging growth company“ in Rule 12b-2 of the Exchange Act (Check one):

 

Large Accelerated filer

☐

Accelerated filer

☐

Non-accelerated Filer

☒

Smaller reporting company

☒

 

 

Emerging growth company

☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised accounting standards provided pursuant to Section 13 (a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act. Yes ☐ No ☒

 

As of August 15, 2022, the registrant had 36,664,707 shares of Common Stock, $0.001 par value per share, outstanding.

 
 

 

PART I — FINANCIAL INFORMATION

 

 

Page

 

Item 1.

Financial Statements

 

 

 

Consolidated Balance Sheets as of June 30, 2022 (Unaudited) and December 31, 2021

3

 

 

Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2022 and 2021 (Unaudited)

4

 

 

Consolidated Statements of Stockholders' Deficit for the Three and Six Months Ended June 30, 2022 and 2021 (Unaudited)

5

 

 

Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021 (Unaudited)

9

 

 

Notes to Unaudited Consolidated Financial Statements

10

 

 

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

35

 

 

Company Overview

36

 

 

Results of Operations

38

 

 

Disclosure About Off-Balance Sheet Arrangements

42

 

 

Critical Accounting Policies and Estimates

37

 

 

Liquidity and Capital Resources

41

 

 

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

42

 

 

 

 

 

Item 4.

Controls and Procedures

42

 

 

 

 

 

PART II — OTHER INFORMATION

 

 

 

 

Item 1.

Legal Proceedings

43

 

 

 

 

 

Item 1A.

Risk Factors

43

 

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

43

 

 

 

 

 

Item 3.

Defaults Upon Senior Securities

43

 

 

 

 

 

Item 4.

Mine Safety Disclosures

 

 

 

 

 

 

Item 5.

Other Information

 

 

 

 

 

 

Item 6.

Exhibits

43

 

 

 

 

 

Signatures

 

44

 

  

 
2

Table of Contents

 

GUIDED THERAPEUTICS, INC. AND SUBSIDIARY

 

CONSOLIDATED BALANCE SHEETS

 

(in thousands)

 

 

 

June 30,

 

 

December 31,

 

 

 

2022

 

2021

 

 

 

(unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

 $ 446

 

 

 $ 643

 

Accounts receivable, net of allowance for doubtful accounts of $126 at June 30, 2022 and December 31, 2021

 

 

 29

 

 

 

 46

 

Inventory, net of reserves of $785 at June 30, 2022 and December 31, 2021

 

 

 569

 

 

 

 571

 

Other current assets

 

 

 59

 

 

 

 377

 

Total current assets

 

 

 1,103

 

 

 

 1,637

 

 

 

 

 

 

 

 

 

 

Non-Current Assets:

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

 45

 

 

 

 14

 

Operating lease right-of-use assets, net of amortization

 

 

 338

 

 

 

 372

 

Other assets

 

 

 17

 

 

 

 17

 

Total non-current assets

 

 

 400

 

 

 

 403

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

 $ 1,503

 

 

 $ 2,040

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

 $ 2,404

 

 

 $ 2,362

 

Accounts payable, related parties

 

 

 75

 

 

 

 87

 

Accrued liabilities

 

 

 1,206

 

 

 

 1,768

 

Deferred revenue

 

 

 513

 

 

 

 337

 

Current portion of lease liability

 

 

 73

 

 

 

 67

 

Current portion of long-term debt

 

 

 47

 

 

 

 88

 

Current portion of long-term debt, related parties

 

 

 490

 

 

 

 -

 

Short-term notes payable

 

 

 -

 

 

 

 48

 

Short-term notes payable, related parties

 

 

 28

 

 

 

 40

 

Convertible notes payable in default

 

 

 786

 

 

 

 161

 

Short-term convertible notes payable, including non-convertible penalty

 

 

 350

 

 

 

 736

 

Derivative liability

 

 

 24

 

 

 

 -

 

Total current liabilities

 

 

 5,996

 

 

 

 5,694

 

 

 

 

 

 

 

 

 

 

Long-Term Liabilities

 

 

 

 

 

 

 

 

Long-term lease liabilities

 

 

 287

 

 

 

 325

 

Derivative liability

 

 

 -

 

 

 

 32

 

Long-term convertible debt

 

 

 884

 

 

 

 820

 

Long-term debt 

 

 

 -

 

 

 

 22

 

Long-term debt, related parties

 

 

 102

 

 

 

 592

 

Total long-term liabilities

 

 

 1,273

 

 

 

 1,791

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

 7,269

 

 

 

 7,485

 

 

 

 

 

 

 

 

 

 

COMMITMENTS AND CONTINGENCIES  (Note 7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ DEFICIT:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series C convertible preferred stock, $0.001 par value; 9.0 shares authorized, 0.3 shares issued and outstanding as of June 30, 2022 and December 31, 2021. Liquidation preference of $286 at June 30, 2022 and December 31, 2021.

 

 

 105

 

 

 

 105

 

Series C1 convertible preferred stock, $0.001 par value; 20.3 shares authorized, 1.0 shares issued and outstanding as of June 30, 2022 and December 31, 2021. Liquidation preference of $1,049 at June 30, 2022 and December 31, 2021.

 

 

 170

 

 

 

 170

 

Series C2 convertible preferred stock, $0.001 par value; 5,000 shares authorized, 3.3 shares issued and outstanding as of June 30, 2022 and December 31, 2021. Liquidation preference of $3,263 at June 30, 2022 and December 31, 2021.

 

 

 531

 

 

 

 531

 

Series D convertible preferred stock, $0.001 par value; 6.0 shares authorized, 0.4 and 0.8 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively Liquidation preference of $438 and $763 at June 30, 2022 and December 31, 2021, respectively.

 

 

 159

 

 

 

 276

 

Series E convertible preferred stock, $0.001 par value; 5.0 shares authorized, 0.9 and 1.7 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively.  Liquidation preference of $888 and $1,736 at June 30, 2022 and December 31, 2021, respectively.

 

 

 839

 

 

 

 1,639

 

Series F convertible preferred stock, $0.001 par value; 1.5 shares authorized, 1.1 and 1.4 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively Liquidation preference of $1,071 and $1,426 at June 30, 2022 and December 31, 2021, respectively.

 

 

 892

 

 

 

 1,187

 

Series F-2 convertible preferred stock, $0.001 par value; 5.0 shares authorized, 2.8 and 3.2 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively. Liquidation preference of $2,771 and $3,237 at June 30, 2022 and December 31, 2021, respectively.

 

 

 2,536

 

 

 

 2,963

 

Series G convertible preferred stock, $0.001 par value; 1,000 shares authorized, nil shares issued and outstanding as of June 30, 2022 and December 31, 2021. Liquidation preference was nil at June 30, 2022 and December 31, 2021.

 

 

 -

 

 

 

 -

 

Common stock, $0.001 par value; 500,000 shares authorized, 27,583 and 13,673 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively

 

 

 3,416

 

 

 

 3,403

 

Additional paid-in capital

 

 

 130,166

 

 

 

 126,800

 

Treasury stock at cost

 

 

 (132 )

 

 

 (132 )

Accumulated deficit

 

 

 (144,448 )

 

 

 (142,387 )

 

 

 

 

 

 

 

 

 

Total stockholders’ deficit

 

 

 (5,766 )

 

 

 (5,445 )

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 $ 1,503

 

 

 $ 2,040

 

 

The accompanying notes are an integral part of these consolidated statements.

 

 
3

Table of Contents

 

GUIDED THERAPEUTICS, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales - devices and disposables

 

 $ 5

 

 

 $ 2

 

 

 $ 10

 

 

 $ 2

 

Cost of goods sold

 

 

 1

 

 

 

 -

 

 

 

 2

 

 

 

 -

 

Gross profit

 

 

 4

 

 

 

 2

 

 

 

 8

 

 

 

 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

 9

 

 

 

 20

 

 

 

 31

 

 

 

 36

 

Sales and marketing

 

 

 37

 

 

 

 30

 

 

 

 77

 

 

 

 66

 

General and administrative

 

 

 675

 

 

 

 513

 

 

 

 1,062

 

 

 

 1,340

 

Total operating expenses

 

 

 721

 

 

 

 563

 

 

 

 1,170

 

 

 

 1,442

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

 (717 )

 

 

 (561 )

 

 

 (1,162 )

 

 

 (1,440 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 (256 )

 

 

 (315 )

 

 

 (357 )

 

 

 (456 )

Change in fair value of derivative liability

 

 

 14

 

 

 

 -

 

 

 

 8

 

 

 

 (88 )

Gain (loss) from extinguishment of debt

 

 

 34

 

 

 

 (185 )

 

 

 75

 

 

 

 (185 )

Change in fair value of warrants

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 448

 

Other income (expenses)

 

 

 (1 )

 

 

 27

 

 

 

 4

 

 

 

 27

 

Total other income (expense)

 

 

 (209 )

 

 

 (473 )

 

 

 (270 )

 

 

 (254 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

 (926 )

 

 

 (1,034 )

 

 

 (1,432 )

 

 

 (1,694 )

Provision for income taxes

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 (926 )

 

 

 (1,034 )

 

 

 (1,432 )

 

 

 (1,694 )

Preferred stock dividends

 

 

 (81 )

 

 

 (125 )

 

 

 (629 )

 

 

 (177 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS

 

 $ (1,007 )

 

 $ (1,159 )

 

 $ (2,061 )

 

 $ (1,871 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 $ (0.04 )

 

 $ (0.09 )

 

 $ (0.09 )

 

 $ (0.14 )

Diluted

 

 $ (0.04 )

 

 $ (0.09 )

 

 $ (0.09 )

 

 $ (0.14 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 26,337

 

 

 

 13,280

 

 

 

 23,526

 

 

 

 13,226

 

Diluted

 

 

 26,337

 

 

 

 13,280

 

 

 

 23,526

 

 

 

 13,226

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 
4

Table of Contents

 

GUIDED THERAPEUTICS, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

FOR THE THREE MONTHS ENDED JUNE 30, 2022

(unaudited, in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Stock

 

Preferred Stock

 

Preferred Stock

 

Preferred Stock

 

 

 

Series C

 

Series C1

 

Series C2

 

Series D

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

Balance at March 31, 2022

 

 

 -

 

 

 $ 105

 

 

 

 1

 

 

 $ 170

 

 

 

 3

 

 

 $ 531

 

 

 

 1

 

 

 $ 276

 

Common stock warrants exercised

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock for payment of Series D preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock for payment of Series E preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock for payment of Series F preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock for payment of Series F-2 preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Conversion of Series D preferred stock to common stock

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (117 )

Conversion of Series E preferred stock to common stock

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Conversion of Series F preferred stock to common stock

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Conversion of Series F-2 preferred stock to common stock

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Stock-based compensation

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Accrued preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Net loss

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Balance at June 30, 2022

 

 

 -

 

 

 $ 105

 

 

 

 1

 

 

 $ 170

 

 

 

 3

 

 

 $ 531

 

 

 

 1

 

 

 $ 159

 

 

 

 

Preferred Stock

 

 

Preferred Stock

 

 

Preferred Stock

 

 

 

Series E

 

 

Series F

 

 

Series F2

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

Balance at March 31, 2022

 

 

 1

 

 

 $ 914

 

 

 

 1

 

 

 $ 1,174

 

 

 

 3

 

 

 $ 2,963

 

Common stock warrants exercised

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock for payment of Series D preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock for payment of Series E preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock for payment of Series F preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock for payment of Series F-2 preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Conversion of Series D preferred stock to common stock

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Conversion of Series E preferred stock to common stock

 

 

 -

 

 

 

 (75 )

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Conversion of Series F preferred stock to common stock

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (282 )

 

 

 -

 

 

 

 -

 

Conversion of Series F-2 preferred stock to common stock

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (427

)

Stock-based compensation

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Accrued preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Net loss

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Balance at June 30, 2022

 

 

 1

 

 

 $ 839

 

 

 

 1

 

 

 $ 892

 

 

 

 3

 

 

 $ 2,536

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Paid-In

 

 

Treasury

 

 

Accumulated

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Stock

 

 

Deficit

 

 

Total

 

Balance at March 31, 2022

 

 

 22,315

 

 

 $ 3,411

 

 

 $ 129,041

 

 

 $ (132 )

 

 $ (143,441 )

 

 $ (4,988 )

Common stock warrants exercised

 

 

 650

 

 

 

 1

 

 

 

 129

 

 

 

 -

 

 

 

 -

 

 

 

 130

 

Issuance of common stock for payment of Series D preferred dividends

 

 

 25

 

 

 

 -

 

 

 

 13

 

 

 

 -

 

 

 

 -

 

 

 

 13

 

Issuance of common stock for payment of Series E preferred dividends

 

 

 51

 

 

 

 -

 

 

 

 26

 

 

 

 -

 

 

 

 -

 

 

 

 26

 

Issuance of common stock for payment of Series F preferred dividends

 

 

 4

 

 

 

 -

 

 

 

 2

 

 

 

 -

 

 

 

 -

 

 

 

 2

 

Issuance of common stock for payment of Series F-2 preferred dividends

 

 

 19

 

 

 

 -

 

 

 

 12

 

 

 

 -

 

 

 

 -

 

 

 

 12

 

Conversion of Series D preferred stock to common stock

 

 

 975

 

 

 

 1

 

 

 

 117

 

 

 

 -

 

 

 

 -

 

 

 

 1

 

Conversion of Series E preferred stock to common stock

 

 

 320

 

 

 

 -

 

 

 

 75

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Conversion of Series F preferred stock to common stock

 

 

 1,360

 

 

 

 1

 

 

 

 282

 

 

 

 -

 

 

 

 -

 

 

 

 1

 

Conversion of Series F-2 preferred stock to common stock

 

 

 1,864

 

 

 

 2

 

 

 

 425

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Stock-based compensation

 

 

 -

 

 

 

 -

 

 

 

 44

 

 

 

 -

 

 

 

 -

 

 

 

 44

 

Accrued preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (81 )

 

 

 (81 )

Net loss

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (926 )

 

 

 (926 )

Balance at June 30, 2022

 

 

 27,583

 

 

 $ 3,416

 

 

 $ 130,166

 

 

 $ (132 )

 

 $ (144,448 )

 

 $ (5,766 )

 

The accompanying notes are an integral part of these consolidated statements.

 

 
5

Table of Contents

 

GUIDED THERAPEUTICS, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

FOR THE SIX MONTHS ENDED JUNE 30, 2022

(unaudited, in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Stock

 

 

Preferred Stock

 

 

Preferred Stock

 

 

Preferred Stock

 

 

 

Series C

 

 

Series C1

 

 

Series C2

 

 

Series D

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

Balance at December 31, 2021

 

 

 -

 

 

 $ 105

 

 

 

 1

 

 

 $ 170

 

 

 

 3

 

 

 $ 531

 

 

 

 1

 

 

 $ 276

 

Common stock warrants exercised

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock for payment of Series D preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock for payment of Series E preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock for payment of Series F preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock for payment of Series F-2 preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock for payment of interest

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock for Series F and Series F-2 one-time 15% dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Conversion of Series D preferred stock to common stock

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (117 )

Conversion of Series E preferred stock to common stock

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Conversion of Series F preferred stock to common stock

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Conversion of Series F-2 preferred stock to common stock

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Stock-based compensation

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Expense for warrants issued to consultants

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Accrued preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Net loss

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Balance at June 30, 2022

 

 

 -

 

 

 $ 105

 

 

 

 1

 

 

 $ 170

 

 

 

 3

 

 

 $ 531

 

 

 

 1

 

 

 $ 159

 

  

 

 

Preferred Stock

 

 

Preferred Stock

 

 

Preferred Stock

 

Series E

Series F

Series F2

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

Balance at December 31, 2021

 

 

 2

 

 

 $ 1,639

 

 

 

 1

 

 

 $ 1,187

 

 

 

 3

 

 

 $ 2,963

 

Common stock warrants exercised

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock for payment of Series D preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock for payment of Series E preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock for payment of Series F preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock for payment of Series F-2 preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock for payment of interest

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock for Series F and Series F-2 one-time 15% dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Conversion of Series D preferred stock to common stock

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Conversion of Series E preferred stock to common stock

 

 

 (1 )

 

 

 (800 )

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Conversion of Series F preferred stock to common stock

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (295 )

 

 

 -

 

 

 

 -

 

Conversion of Series F-2 preferred stock to common stock

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (427 )

Stock-based compensation

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Expense for warrants issued to consultants

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Accrued preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Net loss

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Balance at June 30, 2022

 

 

 1

 

 

 $ 839

 

 

 

 1

 

 

 $ 892

 

 

 

 3

 

 

 $ 2,536

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Paid-In

 

 

Treasury

 

 

Accumulated

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Stock

 

 

Deficit

 

 

Total

 

Balance at December 31, 2021

 

 

 13,674

 

 

 $ 3,403

 

 

 $ 126,800

 

 

 $ (132 )

 

 $ (142,387 )

 

 $ (5,445 )

Common stock warrants exercised

 

 

 5,128

 

 

 

 5

 

 

 

 841

 

 

 

 -

 

 

 

 -

 

 

 

 846

 

Issuance of common stock for payment of Series D preferred dividends

 

 

 48

 

 

 

 -

 

 

 

 29

 

 

 

 -

 

 

 

 -

 

 

 

 29

 

Issuance of common stock for payment of Series E preferred dividends

 

 

 64

 

 

 

 -

 

 

 

 34

 

 

 

 -

 

 

 

 -

 

 

 

 34

 

Issuance of common stock for payment of Series F preferred dividends

 

 

 161

 

 

 

 -

 

 

 

 107

 

 

 

 -

 

 

 

 -

 

 

 

 107

 

Issuance of common stock for payment of Series F-2 preferred dividends

 

 

 114

 

 

 

 -

 

 

 

 75

 

 

 

 -

 

 

 

 -

 

 

 

 75

 

Issuance of common stock for payment of interest

 

 

 121

 

 

 

 -

 

 

 

 81

 

 

 

 -

 

 

 

 -

 

 

 

 81

 

Issuance of common stock for Series F and Series F-2 one-time 15% dividends

 

 

 624

 

 

 

 1

 

 

 

 399

 

 

 

 -

 

 

 

 -

 

 

 

 400

 

Conversion of Series D preferred stock to common stock

 

 

 975

 

 

 

 1

 

 

 

 117

 

 

 

 -

 

 

 

 -

 

 

 

 1

 

Conversion of Series E preferred stock to common stock

 

 

 3,390

 

 

 

 3

 

 

 

 797

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Conversion of Series F preferred stock to common stock

 

 

 1,420

 

 

 

 1

 

 

 

 294

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Conversion of Series F-2 preferred stock to common stock

 

 

 1,864

 

 

 

 2

 

 

 

 425

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Stock-based compensation

 

 

 -

 

 

 

 -

 

 

 

 88

 

 

 

 -

 

 

 

 -

 

 

 

 88

 

Expense for warrants issued to consultants

 

 

 -

 

 

 

 -

 

 

 

 79

 

 

 

 -

 

 

 

 -

 

 

 

 79

 

Accrued preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (629 )

 

 

 (629 )

Net loss

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (1,432 )

 

 

 (1,432 )

Balance at June 30, 2022

 

 

 27,583

 

 

 $ 3,416

 

 

 $ 130,166

 

 

 $ (132 )

 

 $ (144,448 )

 

 $ (5,766 )

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 
6

Table of Contents

 

GUIDED THERAPEUTICS, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

FOR THE THREE MONTHS ENDED JUNE 30, 2021

(unaudited, in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Stock

 

 

Preferred Stock

 

 

Preferred Stock

 

 

Preferred Stock

 

 

 

Series C

 

 

Series C1

 

 

Series C2

 

 

Series D

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

Amount

 

Balance at March 31, 2021

 

 

 -

 

 

 $ 105

 

 

 

 1

 

 

 $ 170

 

 

 

 3

 

 

 $ 531

 

 

 1

 

 $ 276

 

Series F preferred offering

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 -

 

 

 -

 

Series F-2 preferred offering

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 -

 

 

 -

 

Conversion of debt and expenses for Series F-2 preferred stock

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 -

 

 

 -

 

Issuance of common stock for Series D preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 -

 

 

 -

 

Series G redemption

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 -

 

 

 -

 

Issuance of common stock to finders

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 -

 

 

 -

 

Issuance of warrants to consultants

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 -

 

 

 -

 

Stock-based compensation

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 -

 

 

 -

 

Accrued preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 -

 

 

 -

 

Net loss

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 -

 

 

 -

 

Balance at June 30, 2021

 

 

 -

 

 

 $ 105

 

 

 

 1

 

 

 $ 170

 

 

 

 3

 

 

 $ 531

 

 

 1

 

 $ 276

 

 

 

 

Preferred Stock

 

 

Preferred Stock

 

 

Preferred Stock

 

 

Preferred Stock

 

Series E

Series F

Series F-2

Series G

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

Balance at March 31, 2021

 

 

 2

 

 

 $ 1,639

 

 

 

 1

 

 

 $ 1,195

 

 

 

 -

 

 

 $ -

 

 

 

 153

 

 

 $ -

 

Series F preferred offering

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Series F-2 preferred offering

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 1

 

 

 

 404

 

 

 

 -

 

 

 

 -

 

Conversion of debt and expenses for Series F-2 preferred stock

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 2

 

 

 

 2,559

 

 

 

 -

 

 

 

 -

 

Issuance of common stock for Series D preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Series G redemption

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (91 )

 

 

 -

 

Issuance of common stock to finders

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of warrants to consultants

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Stock-based compensation

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Accrued preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Net loss

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Balance at June 30, 2021

 

 

 2

 

 

 $ 1,639

 

 

 

 1

 

 

 $ 1,195

 

 

 

 3

 

 

 $ 2,963

 

 

 

 62

 

 

 $ -

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Paid-In

 

 

Treasury

 

 

Accumulated

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Stock

 

 

Deficit

 

 

 

Total

 

Balance at March 31, 2021

 

 

 13,180

 

 

 $ 3,403

 

 

 $ 125,489

 

 

 $ (132 )

 

 $ (140,668 )

 

 $ (7,992 )

Series F preferred offering

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Series F-2 preferred offering

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 404

 

Conversion of debt and expenses for Series F-2 preferred stock

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 2,559

 

Issuance of common stock for Series D preferred dividends

 

 

 19

 

 

 

 -

 

 

 

 14

 

 

 

 -

 

 

 

 -

 

 

 

 14

 

Series G redemption

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock to finders

 

 

 98

 

 

 

 -

 

 

 

 54

 

 

 

 -

 

 

 

 -

 

 

 

 54

 

Issuance of warrants to consultants

 

 

 -

 

 

 

 -

 

 

 

 736

 

 

 

 -

 

 

 

 -

 

 

 

 736

 

Stock-based compensation

 

 

 -

 

 

 

 -

 

 

 

 60

 

 

 

 -

 

 

 

 -

 

 

 

 60

 

Accrued preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (125 )

 

 

 (125 )

Net loss

 

 

 

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (1,034 )

 

 

 (1,034 )

Balance at June 30, 2021

 

 

 13,297

 

 

 $ 3,403

 

 

 $ 126,353

 

 

 $ (132 )

 

 $ (141,827 )

 

 $ (5,324 )

 

The accompanying notes are an integral part of these consolidated financial statements. 

 

 
7

Table of Contents

 

GUIDED THERAPEUTICS, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

FOR THE SIX MONTHS ENDED JUNE 30, 2021

(unaudited, in thousands)

Preferred Stock

Preferred Stock

Preferred Stock

Preferred Stock

Series C

Series C1

Series C2

Series D

Shares

Amount

Shares

Amount

Shares

Amount

Shares

Amount

Balance at December 31, 2020

 - $ 105 1 $ 170 3 $ 531 1 $ 276

Series F preferred offering

 - - - - - - - -

Series F-2 preferred offering

 - - - - - - - -

Conversion of debt and expenses for Series F-2 preferred stock

 - - - - - - - -

Issuance of common stock for Series D preferred dividends

 - - - - - - - -

Series G preferred offering

 - - - - - - - -

Series G redemption

 - - - - - - - -

Issuance of common stock to finders

 - - - - - - - -

Issuance of warrants to consultants

 - - - - - - - -

Conversions of warrants from liability to equity

 - - - - - - - -

Stock-based compensation

 - - - - - - - -

Accrued preferred dividends

 - - - - - - - -

Net loss

 - - - - - - - -

Balance at June 30, 2021

 - $ 105 1 $ 170 3 $ 531 1 $ 276

 

 

 

Preferred Stock

 

 

Preferred Stock

 

 

Preferred Stock

 

 

Preferred Stock

 

 

 

Series E

 

 

Series F

 

 

Series F-2

 

 

Series G

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

Balance at December 31, 2020

 

 

 2

 

 

 $ 1,639

 

 

 

 -

 

 

 $ -

 

 

 

 -

 

 

 $ -

 

 

 

 -

 

 

 $ -

 

Series F preferred offering

 

 

 -

 

 

 

 -

 

 

 

 1

 

 

 

 1,195

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Series F-2 preferred offering

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 1

 

 

 

 404

 

 

 

 -

 

 

 

 -

 

Conversion of debt and expenses for Series F-2 preferred stock

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 2

 

 

 

 2,559

 

 

 

 -

 

 

 

 -

 

Issuance of common stock for Series D preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Series G preferred offering

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 153

 

 

 

 -

 

Series G redemption

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (91 )

 

 

 -

 

Issuance of common stock to finders

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of warrants to consultants

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Conversions of warrants from liability to equity

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Stock-based compensation

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Accrued preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Net loss

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Balance at June 30, 2021

 

 

 2

 

 

 $ 1,639

 

 

 

 1

 

 

 $ 1,195

 

 

 

 3

 

 

 $ 2,963

 

 

 

 62

 

 

 $ -

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

 

Common Stock

 

Paid-In

Treasury

Accumulated

 

 

 

Shares

 

 

Amount

 

 

 Capital

 

 

 Stock

 

 

Deficit

 

Total

 

Balance at December 31, 2020

 

 

 13,138

 

 

 $ 3,403

 

 

 $ 123,109

 

 

 $ (132 )

 

 $ (139,956 )

 

 $ (10,855 )

Series F preferred offering

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 1,195

 

Series F-2 preferred offering

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 404

 

Conversion of debt and expenses for Series F-2 preferred stock

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 2,559

 

Issuance of common stock for Series D preferred dividends

 

 

 61

 

 

 

 -

 

 

 

 28

 

 

 

 -

 

 

 

 -

 

 

 

 28

 

Series G preferred offering

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Series G redemption

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock to finders

 

 

 98

 

 

 

 -

 

 

 

 54

 

 

 

 -

 

 

 

 -

 

 

 

 54

 

Issuance of warrants to consultants

 

 

 -

 

 

 

 -

 

 

 

 1,285

 

 

 

 -

 

 

 

 -

 

 

 

 1,285

 

Conversions of warrants from liability to equity

 

 

 -

 

 

 

 -

 

 

 

 1,755

 

 

 

 -

 

 

 

 -

 

 

 

 1,755

 

Stock-based compensation

 

 

 -

 

 

 

 -

 

 

 

 122

 

 

 

 -

 

 

 

 -

 

 

 

 122

 

Accrued preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (177 )

 

 

 (177 )

Net loss

 

 

 

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (1,694 )

 

 

 (1,694 )

Balance at June 30, 2021

 

 

 13,297

 

 

 $ 3,403

 

 

 $ 126,353

 

 

 $ (132 )

 

 $ (141,827 )

 

 $ (5,324 )

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 
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Table of Contents

 

GUIDED THERAPEUTICS, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

 

 

 

 

 

 

 

Six Months Ended

 

June 30,

 

 

2022

 

 

2021

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net loss

 

 $ (1,432 )

 

 $ (1,694 )

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Amortization of debt issuance costs and discounts

 

 

 78

 

 

 

 236

 

Amortization of beneficial conversion feature

 

 

 -

 

 

 

 8

 

Stock based compensation

 

 

 88

 

 

 

 122

 

Change in fair value of warrants

 

 

 -

 

 

 

 (448 )

Change in fair value of derivative liability

 

 

 (8 )

 

 

 88

 

Amortization of lease right-of-use-asset

 

 

 33

 

 

 

 -

 

Expense for warrants issued to consultants

 

 

 79

 

 

 

 477

 

(Gain) loss from forgiveness of debt

 

 

 (75 )

 

 

 185

 

Other non-cash expenses (income)

 

 

 157

 

 

 

 -

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

         Accounts receivable

 

 

 16

 

 

 

 (2 )

         Inventory

 

 

 2

 

 

 

 (26 )

         Other current assets

 

 

 317

 

 

 

 24

 

         Other non-current assets

 

 

 -

 

 

 

 (17 )

         Accounts payable and accrued liabilities

 

 

 74

 

 

 

 15

 

         Lease liabilities

 

 

 (32 )

 

 

 -

 

         Deferred revenue

 

 

 175

 

 

 

 20

 

                  NET CASH USED IN OPERATING ACTIVITIES

 

 

 (528 )

 

 

 (1,012 )

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

 (31 )

 

 

 (5 )

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

       Proceeds from warrant exercises

 

 

 495

 

 

 

 -

 

       Payments made on notes payable

 

 

 (133 )

 

 

 (1,368 )

 Proceeds from debt financing, net of discounts and debt issuance costs

 

 

 -

 

 

 

 1,044

 

       Note payable default penalty

 

 

 -

 

 

 

 56

 

       Proceeds from Series F offering, net of costs

 

 

 -

 

 

 

 1,436

 

       Proceeds from Series F-2 offering, net of costs

 

 

 -

 

 

 

 539

 

       Proceeds from Series G offering, net of costs

 

 

 -

 

 

 

 125

 

       Redemption of Series G preferred stock

 

 

 -

 

 

 

 (75 )

                 NET CASH PROVIDED BY FINANCING ACTIVITIES

 

 

 362

 

 

 

 1,757

 

 

 

 

 

 

 

 

 

 

NET CHANGE IN CASH

 

 

 (197 )

 

 

 740

 

 

 

 

 

 

 

 

 

 

Cash at beginning of period

 

 

 643

 

 

 

 182

 

 

 

 

 

 

 

 

 

 

CASH AT END OF PERIOD

 

 $ 446

 

 

 $ 922

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURE FOR OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Cash paid for interest

 

 $ 14

 

 

 $ 541

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURE FOR NON-CASH INVESTING AND FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Dividends on preferred stock

 

 $ 629

 

 

 $ 177

 

Settlement of interest through common stock issuance

 

 $ 81

 

 

 $ -

 

Issuance of series F-2 preferred stock

 

 $ -

 

 

 $ 2,559

 

Issuance of warrants to finders in connection with Series F and Series F-2 preferred stock

 

 $ -

 

 

 $ 377

 

Settlement of dividends through common stock issuance

 

 $ 646

 

 

 $ 31

 

Settlement of accounts payable through common stock issuance

 

 $ -

 

 

 $ 24

 

Warrants exchanged for fixed price warrants

 

 $ -

 

 

 $ 1,755

 

Conversion of Series D Preferred Shares into Common Stock

 

 $ 118

 

 

 $ -

 

Conversion of Series E Preferred Shares into Common Stock

 

 $ 800

 

 

 $ -

 

Conversion of Series F Preferred Shares into Common Stock

 

 $ 296

 

 

 $ -

 

Conversion of Series F-2 Preferred Shares into Common Stock

 

 $ 426

 

 

 $ -

 

  

The accompanying notes are an integral part of these consolidated financial statements.

 

 
9

Table of Contents

 

GUIDED THERAPEUTICS, INC. AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

1. ORGANIZATION, BACKGROUND, AND BASIS OF PRESENTATION

 

Guided Therapeutics, Inc. (formerly SpectRx, Inc.), together with its wholly owned subsidiary, InterScan, Inc. (formerly Guided Therapeutics, Inc.), collectively referred to herein as the “Company“, is a medical technology company focused on developing innovative medical devices that have the potential to improve healthcare. The Company’s primary focus is the continued commercialization of its LuViva non-invasive cervical cancer detection device and extension of its cancer detection technology into other cancers, including esophageal. The Company’s technology, including products in research and development, primarily relates to biophotonics technology for the non-invasive detection of cancers.

 

During the year ended December 31, 2021, the Board simultaneously approved a 1-for-20 reverse stock split of our common stock and decreased the total number of authorized common shares to 500,000,000. On November 18, 2021, the Company submitted an Issuer Company Related Action Notification regarding the reverse stock split to the Financial Industry Regulatory Authority (“FINRA“). On July 25, 2022, the Company filed a Certificate of Correction with the Secretary of State of Delaware to render null and void ab initio the Reverse Split Amendment and as a result, the Reverse Split was deemed null and void.

 

Basis of Presentation

 

The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP“) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the Securities and Exchange Commission (“SEC“) pursuant to Section 13 or 15(d) under the Securities Exchange Act of 1934. The December 31, 2021 balances reported herein are derived from the audited consolidated financial statements for the year ended December 31, 2021. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year.

 

All intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the Company as of June 30, 2022 and December 31, 2021, and the consolidated results of operations and cash flows for the three and six-month periods ended June 30, 2022 and 2021 have been included.

 

The Company’s prospects must be considered in light of the substantial risks, expenses and difficulties encountered by entrants into the medical device industry. This industry is characterized by an increasing number of participants, intense competition and a high failure rate. The Company has experienced net losses since its inception and, as of June 30, 2022, it had an accumulated deficit of approximately $144.4 million. To date, the Company has engaged primarily in research and development efforts and the early stages of marketing its products. The Company may not be successful in growing sales for its products. Moreover, required regulatory clearances or approvals may not be obtained in a timely manner, or at all. The Company’s products may not ever gain market acceptance and the Company may not ever generate significant revenues or achieve profitability. The development and commercialization of the Company’s products requires substantial development, regulatory, sales and marketing, manufacturing and other expenditures. The Company expects operating losses to continue for the foreseeable future as it continues to expend substantial resources to complete development of its products, obtain regulatory clearances or approvals, build its marketing, sales, manufacturing and finance capabilities, and conduct further research and development.

 

The Company is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment. The Company’s principal decision makers are the Chief Executive Officer and its Chief Financial Officer. Management believes that its business operates as one reportable segment because: a) the Company measures profit and loss as a whole; b) the principal decision makers do not review information based on any operating segment; c) the Company does not maintain discrete financial information on any specific segment; d) the Company has not chosen to organize its business around different products and services, and e) the Company has not chosen to organize its business around geographic areas.

 

 
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Table of Contents

 

Going Concern

 

The Company’s consolidated financial statements have been prepared and presented on a basis assuming it will continue as a going concern. The factors below raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary from the outcome of this uncertainty.

 

At June 30, 2022, the Company had a negative working capital of approximately $4.9 million, accumulated deficit of $144.4 million, and incurred a net loss including preferred dividends of $2.1 million for the six months then ended. Stockholders’ deficit totaled approximately $5.8 million at June 30, 2022, primarily due to recurring net losses from operations.

 

During the six-month period ended June 30, 2022, the Company raised $0.5 million of proceeds from warrant exercises. The Company will need to continue to raise capital in order to provide funding for its operations and FDA approval process. If sufficient capital cannot be raised, the Company will continue its plans of curtailing operations by reducing discretionary spending and staffing levels and attempting to operate by only pursuing activities for which it has external financial support. However, there can be no assurance that such external financial support will be sufficient to maintain even limited operations or that the Company will be able to raise additional funds on acceptable terms, or at all. In such a case, the Company might be required to enter into unfavorable agreements or, if that is not possible, be unable to continue operations, and to the extent practicable, liquidate and/or file for bankruptcy protection.

 

The Company had warrants exercisable for approximately 24.7 million shares of its common stock outstanding at June 30, 2022, with exercise prices ranging between $0.15 and $0.80 per share. Exercises of in-the-money warrants would generate a total of approximately $4.2 million in cash, assuming full exercise, although the Company cannot be assured that holders will exercise any warrants. Management may obtain additional funds through the public or private sale of debt or equity, and grants, if available.

 

2. SIGNIFICANT ACCOUNTING POLICIES

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant areas where estimates are used include the allowance for doubtful accounts, inventory valuation and input variables for Black-Scholes, Monte Carlo simulations and binomial calculations. The Company uses the Monte Carlo simulations and binomial calculations in the calculation of the fair value of the warrant liabilities and the valuation of embedded conversion options and freestanding warrants.

 

Accounting Standard Updates

 

A variety of proposed or otherwise potential accounting standards are currently under consideration by standard-setting organizations and certain regulatory agencies. Because of the tentative and preliminary nature of such proposed standards, management has not yet determined the effect, if any that the implementation of such proposed standards would have on the Company’s consolidated financial statements.

 

Cash Equivalents

 

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be a cash equivalent.

 

 
11

Table of Contents

 

Accounts Receivable

 

The Company performs periodic credit evaluations of its distributors’ financial conditions and generally does not require collateral. The Company reviews all outstanding accounts receivable for collectability on a quarterly basis. An allowance for doubtful accounts is recorded for any amounts deemed uncollectable. Uncollectibility is determined based on the determination that a distributor will not be able to make payment and the time frame has exceeded one year. The Company does not accrue interest receivables on past due accounts receivable.

 

Concentrations of Credit Risk

 

The Company, from time to time during the years covered by these consolidated financial statements, may have bank balances in excess of its insured limits. Management has deemed this a normal business risk.

 

Inventory Valuation

 

All inventories are stated at lower of cost or net realizable value, with cost determined substantially on a “first-in, first-out“ basis. Selling, general, and administrative expenses are not inventoried, but are charged to expense when incurred. The following is a summary of the Company’s inventories as of June 30, 2022 and December 31, 2021:

 

 

 

(in thousands)

 

 

 

June 30,

 

 

December 31,

 

 

2022

 

2021

 

 

 

 

 

 

 

 

Raw materials

 

 $ 1,252

 

 

 $ 1,255

 

Work-in-progress

 

 

 70

 

 

 

 69

 

Finished goods

 

 

 32

 

 

 

 32

 

Inventory reserve

 

 

 (785 )

 

 

 (785 )

 

 

 

 

 

 

 

 

 

Total inventory

 

 $ 569

 

 

 $ 571

 

  

The company periodically reviews the value of items in inventory and provides write-downs or write-offs of inventory based on its assessment of market conditions. Write-downs and write-offs are charged to cost of goods sold.

 

 
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Table of Contents

 

Property and Equipment

 

Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over estimated useful lives of three to seven years. Leasehold improvements are amortized at the shorter of the useful life of the asset or the remaining lease term. Depreciation and amortization expense are included in general and administrative expense on the statement of operations. Expenditures for repairs and maintenance are expensed as incurred. The following is a summary of the Company’s property and equipment at June 30, 2022 and December 31, 2021:

 

 

 

 

(in thousands)

 

 

 

 

June 30,

 

 

December 31,

 

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

Equipment

 

 

 $ 1,049

 

 

 $ 1,048

 

Software

 

 

 

 652

 

 

 

 652

 

Furniture and fixtures

 

 

 

 41

 

 

 

 41

 

Leasehold improvements

 

 

 

 12

 

 

 

 12

 

Construction in progress

 

 

 

 39

 

 

 

 8