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 September 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 November 14, 2022, the registrant had 48,578,721 shares of Common Stock, $0.001 par value per share, outstanding.

 
 

 

 

PART I FINANCIAL INFORMATION

 
   

 

Page

  
Item 1. Financial Statements

 

3

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

 

3

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

 

5

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

 

6

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

 

14

  
  Notes to Unaudited Consolidated Financial Statements

 

15

  
   

 

    
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

 

40

  
   

 

 

  
Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

48

  
   

 

 

  
Item 4. Controls and Procedures

 

48

  
   

 

 

  

PART II OTHER INFORMATION

 
   

 

    
Item 1. Legal Proceedings

 

49

  
   

 

 

  
Item 1A. Risk Factors

 

49

  
   

 

 

 
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

49

  
   

 

    
Item 6. Exhibits

 

50

  
   

 

    
Signatures

 

51

  

 

 
2

Table of Contents

 

GUIDED THERAPEUTICS, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(in thousands)

 

 

 

September 30,

 

 

 

 

 

2022

 

December 31,

 

 

 

(unaudited)

 

 

2021

 

ASSETS

 

 

 

 

 

 

 

 
Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

 $ 2,697

 

 

 $ 643

 

Accounts receivable, net of allowance for doubtful accounts of $48 and $126 at September 30, 2022 and December 31, 2021, respectively

 

 

 29

 

 

 

 46

 

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

 

 

 596

 

 

 

 571

 

Other current assets

 

 

 169

 

 

 

 377

 

Total current assets

 

 

 3,491

 

 

 

 1,637

 

 

 

 

 

 

 

 

 

 
Non-Current Assets:

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

 42

 

 

 

 14

 

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

 

 

 321

 

 

 

 372

 

Other assets

 

 

 17

 

 

 

 17

 

Total non-current assets

 

 

 380

 

 

 

 403

 

 

 

 

 

 

 

 

 

 
TOTAL ASSETS

 

 $ 3,871

 

 

 $ 2,040

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS DEFICIT

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

 $ 2,217

 

 

 $ 2,362

 

Accounts payable, related parties

 

 

 60

 

 

 

 87

 

Accrued liabilities

 

 

 1,050

 

 

 

 1,768

 

Deferred revenue

 

 

 509

 

 

 

 337

 

Current portion of lease liability

 

 

 76

 

 

 

 67

 

Current portion of long-term debt

 

 

 32

 

 

 

 88

 

Current portion of long-term debt, related parties

 

 

 497

 

 

 

 -

 

Short-term notes payable

 

 

 90

 

 

 

 48

 

Short-term notes payable, related parties

 

 

 17

 

 

 

 40

 

Convertible notes payable in default

 

 

 -

 

 

 

 161

 

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

 

 

 579

 

 

 

 736

 

Derivative liability

 

 

 19

 

 

 

 -

 

Total current liabilities

 

 

 5,146

 

 

 

 5,694

 

 

 

 

 

 

 

 

 

 
Long-Term Liabilities

 

 

 

 

 

 

 

 

Long-term lease liabilities

 

 

 267

 

 

 

 325

 

Derivative liability

 

 

 -

 

 

 

 32

 

Long-term convertible debt

 

 

 1,017

 

 

 

 820

 

Long-term debt

 

 

 -

 

 

 

 22

 

Long-term debt, related parties

 

 

 92

 

 

 

 592

 

Total long-term liabilities

 

 

 1,376

 

 

 

 1,791

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

 6,522

 

 

 

 7,485

 

 

 
3

Table of Contents

 

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 September 30, 2022 and December 31, 2021. Liquidation preference of $286 at September 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 September 30, 2022 and December 31, 2021. Liquidation preference of $1,049 at September 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 September 30, 2022 and December 31, 2021. Liquidation preference of $3,263 at September 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 September 30, 2022 and December 31, 2021, respectively. Liquidation preference of $438 and $763 at September 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 September 30, 2022 and December 31, 2021, respectively. Liquidation preference of $888 and $1,736 at September 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 September 30, 2022 and December 31, 2021, respectively. Liquidation preference of $1,071 and $1,426 at September 30, 2022 and December 31, 2021, respectively.

 

 

 892

 

 

 

 1,187

 

Series F-2 convertible preferred stock, $0.001 par value; 5.0 shares authorized, 0.5 and 3.2 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively. Liquidation preference of $535 and $3,237 at September 30, 2022 and December 31, 2021, respectively.

 

 

 489

 

 

 

 2,963

 

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

 

 

 3,432

 

 

 

 3,403

 

Additional paid-in capital

 

 

 136,366

 

 

 

 126,800

 

Treasury stock at cost

 

 

 (132 )

 

 

 (132 )

Accumulated deficit

 

 

 (145,502 )

 

 

 (142,387 )

 

 

 

 

 

 

 

 

 

Total stockholders deficit

 

 

 (2,651 )

 

 

 (5,445 )

 

 

 

 

 

 

 

 

 
TOTAL LIABILITIES AND STOCKHOLDERS DEFICIT

 

 $ 3,871

 

 

 $ 2,040

 

 

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

 

 
4

Table of Contents

 

GUIDED THERAPEUTICS, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share data)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Sales - devices and disposables

 

 $ 3

 

 

 $ 19

 

 

 $ 13

 

 

 $ 21

 
Cost of goods sold

 

 

 -

 

 

 

 42

 

 

 

 2

 

 

 

 42

 

Gross profit (loss)

 

 

 3

 

 

 

 (23 )

 

 

 11

 

 

 

 (21 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

 8

 

 

 

 16

 

 

 

 38

 

 

 

 52

 

Sales and marketing

 

 

 52

 

 

 

 41

 

 

 

 129

 

 

 

 107

 

General and administrative

 

 

 1,167

 

 

 

 407

 

 

 

 2,229

 

 

 

 1,747

 

Total operating expenses

 

 

 1,227

 

 

 

 464

 

 

 

 2,396

 

 

 

 1,906

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Loss from operations

 

 

 (1,224 )

 

 

 (487 )

 

 

 (2,385 )

 

 

 (1,927 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 (155 )

 

 

 (594 )

 

 

 (512 )

 

 

 (1,050 )

Change in fair value of derivative liability

 

 

 5

 

 

 

 (1 )

 

 

 13

 

 

 

 (89 )

Gain from extinguishment of debt

 

 

 270

 

 

 

 763

 

 

 

 345

 

 

 

 578

 

Change in fair value of warrants

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 448

 

Other income

 

 

 2

 

 

 

 387

 

 

 

 5

 

 

 

 414

 

Total other income (expense)

 

 

 122

 

 

 

 555

 

 

 

 (149 )

 

 

 301

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Loss before income taxes

 

 

 (1,102 )

 

 

 68

 

 

 

 (2,534 )

 

 

 (1,626 )
Provision for income taxes

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Net income (loss)

 

 

 (1,102 )

 

 

 68

 

 

 

 (2,534 )

 

 

 (1,626 )
Preferred stock dividends

 

 

 48

 

 

 

 (119 )

 

 

 (581 )

 

 

 (296 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS

 

 $ (1,054 )

 

 $ (51 )

 

 $ (3,115 )

 

 $ (1,922 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 $ (0.03 )

 

 $ (0.00 )

 

 $ (0.11 )

 

 $ (0.14 )

Diluted

 

 $ (0.03 )

 

 $ (0.00 )

 

 $ (0.11 )

 

 $ (0.14 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 34,829

 

 

 

 13,417

 

 

 

 27,335

 

 

 

 13,291

 

Diluted

 

 

 34,829

 

 

 

 13,417

 

 

 

 27,335

 

 

 

 13,291

 

 

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

 

 
5

Table of Contents

 

GUIDED THERAPEUTICS, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF STOCKHOLDERS DEFICIT

FOR THE THREE MONTHS ENDED SEPTERMBER 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 June 30, 2022

 

 

 -

 

 

 $ 105

 

 

 

 1

 

 

 $ 170

 

 

 

 3

 

 

 $ 531

 

 

 

 1

 

 

 $ 159

 
Issuances of common stock to investors

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 
Issuances of warrants to investors

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 
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 interest

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 
Conversion of Series F-2 preferred stock to common stock

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 
Stock-based compensation

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 
Issuances of warrants to consultants

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 
Accrued preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 
Net loss

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 
Balance at September 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 June 30, 2022

 

 

 1

 

 

 $ 839

 

 

 

 1

 

 

 $ 892

 

 

 

 3

 

 

 $ 2,536

 
Issuances of common stock to investors

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 
Issuances of warrants to investors

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 
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 interest

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 
Conversion of Series F-2 preferred stock to common stock

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (3 )

 

 

 (2,047 )
Stock-based compensation

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 
Issuances of warrants to consultants

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 
Accrued preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 
Net loss

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 
Balance at September 30, 2022

 

 

 1

 

 

 $ 839

 

 

 

 1

 

 

 $ 892

 

 

 

 -

 

 

 $ 489

 

   

 
6

Table of Contents

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Paid-in

 

 

Treasury

 

 

Accumulated

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Stock

 

 

Deficit

 

 

Total

 

Balance at June 30, 2022

 

 

 27,583

 

 

 $ 3,416

 

 

 $ 130,166

 

 

 $ (132 )

 

 $ (144,448 )

 

 $ (5,766 )

Issuances of common stock to investors

 

 

 6,637

 

 

 

 7

 

 

 

 1,389

 

 

 

 -

 

 

 

 -

 

 

 

 1,396

 

Issuances of warrants to investors

 

 

 -

 

 

 

 -

 

 

 

 1,796

 

 

 

 -

 

 

 

 -

 

 

 

 1,796

 

Issuance of common stock for payment of Series D preferred dividends

 

 

 17

 

 

 

 -

 

 

 

 10

 

 

 

 -

 

 

 

 -

 

 

 

 10

 

Issuance of common stock for payment of Series E preferred dividends

 

 

 117

 

 

 

 -

 

 

 

 67

 

 

 

 -

 

 

 

 -

 

 

 

 67

 

Issuance of common stock for payment of interest

 

 

 121

 

 

 

 -

 

 

 

 70

 

 

 

 -

 

 

 

 -

 

 

 

 70

 

Conversion of Series F-2 preferred stock to common stock

 

 

 8,944

 

 

 

 9

 

 

 

 2,038

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Stock-based compensation

 

 

 -

 

 

 

 -

 

 

 

 44

 

 

 

 -

 

 

 

 -

 

 

 

 44

 

Issuances of warrants to consultants

 

 

 -

 

 

 

 -

 

 

 

 786

 

 

 

 -

 

 

 

 -

 

 

 

 786

 

Accrued preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 48

 

 

 

 48

 

Net loss

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (1,102 )

 

 

 (1,102 )

Balance at September 30, 2022

 

 

 43,419

 

 

 $ 3,432

 

 

 $ 136,366

 

 

 $ (132 )

 

 $ (145,502 )

 

 $ (2,651 )

 

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

 

 
7

Table of Contents

 

GUIDED THERAPEUTICS, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

FOR THE NINE MONTHS ENDED SEPTEMBER 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

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuances of common stock to investors

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuances of warrants to investors

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

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

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuances of warrants to consultants

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Accrued preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Net loss

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Balance at September 30, 2022

 

 

 -

 

 

 $ 105

 

 

 

 1

 

 

 $ 170

 

 

 

 3

 

 

 $ 531

 

 

 

 1

 

 

 $ 159

 

 

 
8

Table of Contents

 

 

 

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

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuances of common stock to investors

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuances of warrants to investors

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

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

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (3 )

 

 

 (2,474 )

Stock-based compensation

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuances of warrants to consultants

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Accrued preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Net loss

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Balance at September 30, 2022

 

 

 1

 

 

 $ 839

 

 

 

 1

 

 

 $ 892

 

 

 

 -

 

 

 $ 489

 

 

 
9

Table of Contents

 

 

 

 

 

 

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

 

Issuances of common stock to investors

 

 

 6,637

 

 

 

 7

 

 

 

 1,389

 

 

 

 -

 

 

 

 -

 

 

 

 1,396

 

Issuances of warrants to investors

 

 

 -

 

 

 

 -

 

 

 

 1,796

 

 

 

 -

 

 

 

 -

 

 

 

 1,796

 

Issuance of common stock for payment of Series D preferred dividends

 

 

 65

 

 

 

 -

 

 

 

 39

 

 

 

 -

 

 

 

 -

 

 

 

 39

 

Issuance of common stock for payment of Series E preferred dividends

 

 

 181

 

 

 

 -

 

 

 

 102

 

 

 

 -

 

 

 

 -

 

 

 

 102

 

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

 

 

 242

 

 

 

 -

 

 

 

 150

 

 

 

 -

 

 

 

 -

 

 

 

 150

 

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

 

 

 10,808

 

 

 

 11

 

 

 

 2,463

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Stock-based compensation

 

 

 -

 

 

 

 -

 

 

 

 132

 

 

 

 -

 

 

 

 -

 

 

 

 132

 

Issuances of warrants to consultants

 

 

 -

 

 

 

 -

 

 

 

 865

 

 

 

 -

 

 

 

 -

 

 

 

 865

 

Accrued preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (581 )

 

 

 (581 )

Net loss

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (2,534 )

 

 

 (2,534 )

Balance at September 30, 2022

 

 

 43,419

 

 

 $ 3,432

 

 

 $ 136,366

 

 

 $ (132 )

 

 $ (145,502 )

 

 $ (2,651 )

 

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

 

 
10

Table of Contents

 

GUIDED THERAPEUTICS, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

FOR THE THREE MONTHS ENDED SEPTEMBER 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 June 30, 2021

 

 

 -

 

 

 $ 105

 

 

 

 1

 

 

 $ 170

 

 

 

 3

 

 

 $ 531

 

 

 

 1

 

 

 $ 276

 

Issuance of common stock for Series D preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock for Series E preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Series G redemption

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Stock-based compensation

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Accrued preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Net income

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Balance at September 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 June 30, 2021

 

 

 2

 

 

 $ 1,639

 

 

 

 1

 

 

 $ 1,195

 

 

 

 3

 

 

 $ 2,963

 

 

 

 62

 

 

 $ -

 

Issuance of common stock for Series D preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock for Series E preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Series G redemption

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (62 )

 

 

 -

 

Stock-based compensation

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Accrued preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Net income

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Balance at September 30, 2021

 

 

 2

 

 

 $ 1,639

 

 

 

 1

 

 

 $ 1,195

 

 

 

 3

 

 

 $ 2,963

 

 

 

 -

 

 

 $ -

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Paid-In

 

 

Treasury

 

 

Accumulated

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Stock

 

 

Deficit

 

 

 

Total

 

 Balance at June 30, 2021

 

 

 13,297

 

 

 $ 3,403

 

 

 $ 126,353

 

 

 $ (132 )

 

 $ (141,878 )

 

 $ (7,992 )

Issuance of common stock for Series D preferred dividends

 

 

 22

 

 

 

 -

 

 

 

 11

 

 

 

 -

 

 

 

 -

 

 

 

 11

 

Issuance of common stock for Series E preferred dividends

 

 

 288

 

 

 

 -

 

 

 

 118

 

 

 

 -

 

 

 

 -

 

 

 

 118

 

Series G redemption

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Stock-based compensation

 

 

 -

 

 

 

 -

 

 

 

 56

 

 

 

 -

 

 

 

 -

 

 

 

 56

 

Accrued preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (119 )

 

 

 (119 )

Net income

 

 

 

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 68

 

 

 

 68

 

Balance at September 30, 2021

 

 

 13,607

 

 

 $ 3,403

 

 

 $ 126,650

 

 

 $ (132 )

 

 $ (141,929 )

 

 $ (7,746 )

  

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

 

 
11

Table of Contents

 

GUIDED THERAPEUTICS, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

FOR THE NINE MONTHS ENDING SEPTEMBER 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

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock for Series E preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Series G preferred offering

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Series G redemption

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock to finders

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of warrants to consultants

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Warrants issued

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Conversions of warrants from liability to equity

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Stock-based compensation

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Accrued preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Net loss

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Balance at September 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

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock for Series E preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Series G preferred offering

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 153

 

 

 

 -

 

Series G redemption

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (153 )

 

 

 -

 

Issuance of common stock to finders

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of warrants to consultants

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Warrants issued

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Conversions of warrants from liability to equity

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Stock-based compensation

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Accrued preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Net loss

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Balance at September 30, 2021

 

 

 2

 

 

 $ 1,639

 

 

 

 1

 

 

 $ 1,195

 

 

 

 3

 

 

 $ 2,963

 

 

 

 -

 

 

 $ -

 

 

 
12

Table of Contents

 

 

 

 

 

 

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

 

 

 83

 

 

 

 -

 

 

 

 39

 

 

 

 -

 

 

 

 -

 

 

 

 39

 

Issuance of common stock for Series E preferred dividends

 

 

 288

 

 

 

 -

 

 

 

 118

 

 

 

 -

 

 

 

 -

 

 

 

 118

 

Series G preferred offering

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Series G redemption

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Issuance of common stock to finders

 

 

 98

 

 

 

 -

 

 

 

 54

 

 

 

 -

 

 

 

 -

 

 

 

 54

 

Issuance of warrants to consultants

 

 

 -

 

 

 

 -

 

 

 

 1,093

 

 

 

 -

 

 

 

 -

 

 

 

 1,093

 

Warrants issued

 

 

 -

 

 

 

 -

 

 

 

 304

 

 

 

 -

 

 

 

 -

 

 

 

 304

 

Conversions of warrants from liability to equity

 

 

 -

 

 

 

 -

 

 

 

 1,755

 

 

 

 -

 

 

 

 -

 

 

 

 1,755

 

Stock-based compensation

 

 

 -

 

 

 

 -

 

 

 

 178

 

 

 

 -

 

 

 

 -

 

 

 

 178

 

Accrued preferred dividends

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (296 )

 

 

 (296 )

Net loss

 

 

 

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (1,626 )

 

 

 (1,626 )

Balance at September 30, 2021

 

 

 13,607

 

 

 $ 3,403

 

 

 $ 126,650

 

 

 $ (132 )

 

 $ (141,878 )

 

 $ (5,078 )

  

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

 

 
13

Table of Contents

 

GUIDED THERAPEUTICS, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

 

 

 

 

 

 

 

 

Nine Months ended

 

September 30,

 

 

 

2022

 

 

2021

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net loss

 

 $ (2,534 )

 

 $ (1,626 )

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

 

 

 

 

 

 

 

 

Depreciation

 

 

 1

 

 

 

 1

 

Amortization of debt issuance costs and discounts

 

 

 111

 

 

 

 250

 

Amortization of beneficial conversion feature

 

 

 -

 

 

 

 37

 

Stock based compensation

 

 

 132

 

 

 

 178

 

Change in fair value of warrants

 

 

 -

 

 

 

 (448 )

Extinguishment of derivative liability

 

 

 -

 

 

 

 (84 )

Change in fair value of derivative liability

 

 

 (13 )

 

 

 89

 

Amortization of lease right-of-use-asset

 

 

 50

 

 

 

 66

 

Expense for warrants issued to consultants

 

 

 865

 

 

 

 585

 

Gain from extinguishment of debt

 

 

 (345 )

 

 

 (578 )

Other non-cash expenses

 

 

 156

 

 

 

 109

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

         Accounts receivable

 

 

 16

 

 

 

 -

 

         Inventory

 

 

 (25 )

 

 

 14

 

         Other current assets

 

 

 332

 

 

 

 (88 )

         Other non-current assets

 

 

 -

 

 

 

 (17 )

         Accounts payable and accrued liabilities

 

 

 (7 )

 

 

 (435 )

         Lease liabilities

 

 

 (51 )

 

 

 (41 )

         Deferred revenue

 

 

 172

 

 

 

 237

 

                  NET CASH USED IN OPERATING ACTIVITIES

 

 

 (1,140 )

 

 

 (1,751 )

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

 (28 )

 

 

 (10 )

                  NET CASH USED FOR INVESTING ACTIVITIES

 

 

 (28 )

 

 

 (10 )

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

       Proceeds from warrant exercises

 

 

 495

 

 

 

 -

 

       Proceeds from debt financing

 

 

 -

 

 

 

 1,248

 

       Payments made on notes payable

 

 

 (465 )

 

 

 (1,415 )

 Payments of debt issuance costs

 

 

 -

 

 

 

 (86 )

       Note payable default penalty

 

 

 -

 

 

 

 398

 

       Proceeds from issuances of common stock, net of costs

 

 

 1,396

 

 

 

 -

 

       Proceeds from issuances of warrants, net of costs

 

 

 1,796

 

 

 

 -

 

       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

 

 

 -

 

 

 

 (125 )

                 NET CASH PROVIDED BY FINANCING ACTIVITIES

 

 

 3,222

 

 

 

 2,120

 

 

 

 

 

 

 

 

 

 

NET CHANGE IN CASH

 

 

 2,054

 

 

 

 359

 

 

 

 

 

 

 

 

 

 

Cash at beginning of period

 

 

 643

 

 

 

 182

 

 

 

 

 

 

 

 

 

 

CASH AT END OF PERIOD

 

 $ 2,697

 

 

 $ 541

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURE FOR OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Cash paid for interest

 

 $ 89

 

 

 $ 552

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURE FOR NON-CASH INVESTING AND FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Dividends on preferred stock

 

 $ 581

 

 

 $ 296

 

Settlement of interest through common stock issuance

 

 $ 151

 

 

 $ -

 

Debt from related parties exchanged for Preferred series F-2 shares

 

 $ -

 

 

 $ 323

 

Issuance of series F-2 preferred stock

 

 $ -

 

 

 $ 2,236

 

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

 

 $ -

 

 

 $ 377

 

Settlement of dividends through common stock issuance

 

 $ 722

 

 

 $ 157

 

Settlement of accounts payable through common stock issuance

 

 $ -

 

 

 $ 62

 

Warrants exchanged for fixed price warrants

 

 $ -

 

 

 $ 1,755

 

Warrants issued with debt

 

 $ -

 

 

 $ 304

 

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

 

 $ 2,473

 

 

 $ -

 

Directors and officers insurance obtained with financing

 

 $ 124

 

 

 $ -

 

 

 

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

 

 
14

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 September 30, 2022 and December 31, 2021, and the consolidated results of operations and cash flows for the three and nine-month periods ended September 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 September 30, 2022, it had an accumulated deficit of approximately $145.5 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.

 

 
15

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 September 30, 2022, the Company had a negative working capital of approximately $1.8 million, accumulated deficit of $145.5 million and incurred a net loss including preferred dividends of $3.1 million for the nine months then ended. Stockholders’ deficit totaled approximately $2.7 million at September 30, 2022, primarily due to recurring net losses from operations.

 

During the nine-month period ended September 30, 2022, the Company raised $3.2 million from the sale of common stock and warrants (net of expenses), and $495 thousand 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 40.1 million shares of its common stock outstanding at September 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 $8.6 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.

 

 
16

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 September 30, 2022 and December 31, 2021:

 

 

 

(in thousands)

 

 

 

September 30,

 

 

December 31,

 

 

2022

 

2021

 

 

 

 

 

 

 

 

Raw materials

 

 $ 1,274

 

 

 $ 1,255

 

Work-in-progress

 

 

 70

 

 

 

 69

 

Finished goods

 

 

 37

 

 

 

 32

 

Inventory reserve

 

 

 (785 )

 

 

 (785 )

 

 

 

 

 

 

 

 

 

Total inventory

 

 $ 596

 

 

 $ 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.

 

 
17

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 September 30, 2022 and December 31, 2021:

 

(in thousands)

September 30,

December 31,

 

2022

 

2021

Equipment

 $ 1,085 $ 1,048

Software

 653 652

Furniture and fixtures