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

 

For the quarterly period ended September 30, 2023

 

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

 

For the transition period from ____________ to ____________

 

Commission file number: 000-27781

 

UNITED HEALTH PRODUCTS, INC.

(Exact name of Company as specified in its charter)

 

Nevada

 

84-1517723

(State or other jurisdiction

of incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

526 Commerce Circle, Suite #120

Mesquite, NV

 

89027

(Address of Company’s principal executive offices)

 

(Zip Code)

 

(475) 755-1005

(Company’s telephone number, including area code)

 

None

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

 

Securities registered pursuant to Section 12 (b) of the Act: None

 

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 checkmark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the 12 preceding months (or such shorter period that the registrant was required to submit such file). Yes ☒   No ☐

 

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

 

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 financial 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 ☒

 

The number of shares issued and outstanding of the Registrant’s Common Stock, as of November 9, 2023 was 242,983,222.

  

 

 

 

UNITED HEALTH PRODUCTS, INC.

 

FORM 10-Q QUARTERLY REPORT

 

TABLE OF CONTENTS

 

 

PAGE

 

PART I. FINANCIAL INFORMATION

 

Item 1.

Financial Statements (Unaudited)

 

Condensed Balance Sheets as of September 30, 2023 (unaudited) and December 31, 2022

3

 

Condensed Statements of Operations for the Three and Nine Months Ended September 30, 2023 and September 30, 2022 (unaudited)

4

 

Condensed Statement of Stockholders’ Deficiency for the Three and Nine Months Ended September 30, 2023 and September 30, 2022 (unaudited)

 

5

 

 

 

 

 

 

 

Condensed Statements of Cash Flows for the Nine Months Ended September 30, 2023 and September 30, 2022 (unaudited)

7

 

Notes to Condensed Financial Statements (unaudited)

8

 

Item 2.

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

18

 

Item 3.

Quantitative and Qualitative Disclosures

26

 

Item 4.

Controls and Procedures

26

 

PART II. OTHER INFORMATION

 

Item 1.

Legal Proceedings

27

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

27

 

Item 3.

Defaults Upon Senior Securities

27

 

Item 4.

Mine Safety Disclosures

27

 

Item 5.

Other Information

27

 

Item 6.

Exhibits and Reports on Form 8-K

28

 

SIGNATURES

 

30

 

 
2

Table of Contents

 

    UNITED HEALTH PRODUCTS, INC.

Condensed Balance Sheets

 

 

 

September

30,

 

 

December

31,

 

 

 

2023

 

 

2022

 

 

 

(Unaudited)

 

 

 

 

ASSETS

 

Current Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$74,039

 

 

$13,377

 

Inventory

 

 

33,598

 

 

 

34,730

 

Prepaid and other current assets

 

 

30,436

 

 

 

22,932

 

Total current assets

 

 

138,073

 

 

 

71,039

 

 

 

 

 

 

 

 

 

 

Deferred offering costs

 

 

78,512

 

 

 

243,039

 

Operating lease right-of-use asset

 

 

82,813

 

 

 

-

 

Security deposit

 

 

2,850

 

 

 

-

 

Patents, net

 

 

33,412

 

 

 

36,450

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$335,660

 

 

$350,528

 

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$1,115,192

 

 

$1,255,232

 

Accrued liabilities - related parties

 

 

169,027

 

 

 

172,579

 

Accrued litigation settlement

 

 

50,000

 

 

 

300,000

 

Operating lease liability - current

 

 

27,790

 

 

 

-

 

Promissory note payable

 

 

-

 

 

 

9,136

 

Loans payable – related parties

 

 

-

 

 

 

4,000

 

Convertible notes payable, net of debt discount

 

 

204,746

 

 

 

196,177

 

Convertible notes payable – related party, net of debt discount

 

 

496,264

 

 

 

478,331

 

Total current liabilities

 

 

2,063,019

 

 

 

2,415,455

 

 

 

 

 

 

 

 

 

 

Operating lease liability – long-term

 

 

55,369

 

 

 

-

 

TOTAL LIABILITIES

 

 

2,118,388

 

 

 

2,415,455

 

 

 

 

 

 

 

 

 

 

Commitments and Contingencies

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Stockholders’ Deficit

 

 

 

 

 

 

 

 

Series A Convertible Preferred Stock - $0.001 par value, 1,000,000 shares Authorized and 0 shares issued and outstanding

 

 

-

 

 

 

-

 

Common Stock - $0.001 par value, 300,000,000 shares Authorized, 242,153,222 and 230,871,034 shares issued and outstanding at September 30, 2023 and December 31, 2022

 

 

242,153

 

 

 

230,871

 

Subscription Receivable

 

 

-

 

 

 

(50,550 )

Additional Paid-In Capital

 

 

74,202,411

 

 

 

71,830,695

 

Accumulated Deficit

 

 

(76,227,292 )

 

 

(74,075,943 )

Total Stockholders’ Deficit

 

 

(1,782,728 )

 

 

(2,064,927 )

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

$335,660

 

 

$350,528

 

 

See notes to unaudited condensed financial statements.

 

 
3

Table of Contents

 

 

UNITED HEALTH PRODUCTS, INC.

Condensed Statements of Operations

(Unaudited)

 

 

 

For the Three Months Ended

September 30,

 

 

For the Nine Months Ended

September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$-

 

 

$37,500

 

 

$-

 

 

$37,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

 

-

 

 

 

18,644

 

 

 

-

 

 

 

18,644

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

 

-

 

 

 

18,856

 

 

 

-

 

 

 

18,856

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Costs and Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

328,690

 

 

 

343,056

 

 

 

1,534,332

 

 

 

1,852,388

 

Research and development

 

 

121,761

 

 

 

214,978

 

 

 

445,550

 

 

 

414,944

 

Total Operating Expenses

 

 

450,451

 

 

 

558,034

 

 

 

1,979,882

 

 

 

2,267,332

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from Operations

 

 

(450,451 )

 

 

(539,178 )

 

 

(1,979,882 )

 

 

(2,248,476 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expenses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(15,779 )

 

 

(6,673 )

 

 

(32,435 )

 

 

(6,958 )

Interest expense – related party

 

 

(19,502 )

 

 

(22,563 )

 

 

(58,500 )

 

 

(42,906 )

Loss on settlement of debt

 

 

-

 

 

 

(14,000 )

 

 

(80,532 )

 

 

(127,375 )

Other income

 

 

-

 

 

 

1,402,981

 

 

 

-

 

 

 

1,402,981

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Other Income (Expenses)

 

 

(35,281 )

 

 

1,359,745

 

 

 

(171,467 )

 

 

1,225,742

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

$(485,732 )

 

$820,567

 

 

$(2,151,349 )

 

(1,022,734 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$(0.00 )

 

$0.00

 

 

$(0.01 )

 

$(0.00 )

Diluted

 

$(0.00 )

 

$0.00

 

 

$(0.01 )

 

$(0.00 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

241,485,939

 

 

 

230,438,815

 

 

 

237,713,870

 

 

 

229,653,007

 

Diluted

 

 

241,485,939

 

 

 

279,654,911

 

 

 

237,713,870

 

 

 

229,653,007

 

 

See notes to unaudited condensed financial statements.

 

 
4

Table of Contents

 

 

UNITED HEALTH PRODUCTS, INC

Condensed Statement of Stockholders’ Deficiency

Three and Nine Months Ended September 30, 2023 and September 30, 2022

(Unaudited)

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Paid-in

 

 

Subscription

 

 

Accumulated

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

 Receivable

 

 

Deficit

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2021

 

 

228,667,229

 

 

$228,667

 

 

$71,017,881

 

 

$-

 

 

$(72,388,442 )

 

$(1,141,894 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock for services

 

 

20,000

 

 

 

20

 

 

 

10,180

 

 

 

-

 

 

 

-

 

 

 

10,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sale of common stock

 

 

184,028

 

 

 

184

 

 

 

77,108

 

 

 

-

 

 

 

-

 

 

 

77,292

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock issued to settle accounts payable and accrued liabilities

 

 

6,252

 

 

 

6

 

 

 

3,995

 

 

 

-

 

 

 

-

 

 

 

4,001

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

-

 

 

 

-

 

 

 

 

 

 

 

-

 

 

 

(964,264 )

 

 

(964,264 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at March 31, 2022

 

 

228,877,509

 

 

 

228,877

 

 

 

71,109,164

 

 

 

-

 

 

 

(73,352,706 )

 

 

(2,014,665 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock for services

 

 

200,000

 

 

 

200

 

 

 

95,800

 

 

 

-

 

 

 

-

 

 

 

96,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock for services – related party

 

 

425,000

 

 

 

425

 

 

 

203,575

 

 

 

-

 

 

 

-

 

 

 

204,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock issued to settle accounts payable and accrued liabilities

 

 

200,000

 

 

 

200

 

 

 

95,800

 

 

 

-

 

 

 

-

 

 

 

96,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock issued to settle accounts payable and accrued liabilities – related party

 

 

425,000

 

 

 

425

 

 

 

203,575

 

 

 

-

 

 

 

-

 

 

 

204,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cancellation of common stock

 

 

(250,000 )

 

 

(250 )

 

 

250

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(879,037 )

 

 

(879,037 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2022

 

 

229,877,509

 

 

 

229,877

 

 

 

71,708,164

 

 

 

-

 

 

 

(74,231,743 )

 

 

(2,293,702 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock for services

 

 

100,000

 

 

 

100

 

 

 

32,900

 

 

 

-

 

 

 

-

 

 

 

33,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock for services – related party

 

 

425,000

 

 

 

425

 

 

 

139,825

 

 

 

-

 

 

 

-

 

 

 

140,250

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock issued to settle accounts payable and accrued liabilities

 

 

466,667

 

 

 

467

 

 

 

153,533

 

 

 

-

 

 

 

-

 

 

 

154,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock repurchased and cancelled

 

 

(2,228,115 )

 

 

(2,228 )

 

 

(856,553 )

 

 

-

 

 

 

-

 

 

 

(858,781 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sale of common stock

 

 

75,000

 

 

 

75

 

 

 

9,781

 

 

 

-

 

 

 

-

 

 

 

9,856

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock issued for commitment fee

 

 

757,576

 

 

 

757

 

 

 

249,243

 

 

 

-

 

 

 

-

 

 

 

250,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

820,567

 

 

 

820,567

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at September 30, 2022

 

 

229,473,637

 

 

$229,473

 

 

$71,436,893

 

 

$-

 

 

$(73,411,176 )

 

$(1,744,810 )

 

 
5

Table of Contents

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Paid-in

 

 

Subscription

 

 

Accumulated

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

 Receivable

 

 

Deficit

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2022

 

 

230,871,034

 

 

$230,871

 

 

$71,830,695

 

 

$(50,550 )

 

$(74,075,943 )

 

$(2,064,927 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sale of common stock

 

 

2,535,000

 

 

 

2,535

 

 

 

522,770

 

 

 

50,550

 

 

 

-

 

 

 

575,855

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock issued to settle accrued liabilities – related party

 

 

637,500

 

 

 

638

 

 

 

168,300

 

 

 

-

 

 

 

-

 

 

 

168,938

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock issued to settle accrued liabilities

 

 

300,000

 

 

 

300

 

 

 

79,200

 

 

 

-

 

 

 

-

 

 

 

79,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock issued for a stock subscription receivable

 

 

400,000

 

 

 

400

 

 

 

71,317

 

 

 

(71,717 )

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred offering costs

 

 

-

 

 

 

-

 

 

 

(55,371 )

 

 

-

 

 

 

-

 

 

 

(55,371 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock issued for litigation settlement

 

 

1,850,000

 

 

 

1,850

 

 

 

460,650

 

 

 

-

 

 

 

-

 

 

 

462,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,142,706 )

 

 

(1,142,706 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at March 31, 2023

 

 

236,593,534

 

 

 

236,594

 

 

 

73,077,561

 

 

 

(71,717 )

 

 

(75,218,649 )

 

 

(1,976,211 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sale of common stock

 

 

2,450,000

 

 

 

2,450

 

 

 

501,558

 

 

 

71,717

 

 

 

-

 

 

 

575,725

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock issued to settle accrued liabilities – related party

 

 

567,188

 

 

 

566

 

 

 

101,527

 

 

 

-

 

 

 

-

 

 

 

102,093

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock issued to settle accrued liabilities

 

 

412,500

 

 

 

413

 

 

 

73,838

 

 

 

-

 

 

 

-

 

 

 

74,251

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock issued for a stock subscription receivable

 

 

1,100,000

 

 

 

1,100

 

 

 

310,720

 

 

 

(311,820 )

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred offering costs

 

 

-

 

 

 

-

 

 

 

(55,387 )

 

 

-

 

 

 

-

 

 

 

(55,387 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(522,911 )

 

 

(522,911 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2023

 

 

241,123,222

 

 

 

241,123

 

 

 

74,009,817

 

 

 

(311,820 )

 

 

(75,741,560 )

 

 

(1,802,440 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sale of common stock

 

 

1,030,000

 

 

 

1,030

 

 

 

246,363

 

 

 

311,820

 

 

 

-

 

 

 

559,213

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred offering costs

 

 

-

 

 

 

-

 

 

 

(53,769 )

 

 

-

 

 

 

-

 

 

 

(53,769 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(485,732 )

 

 

(485,732 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at September 30, 2023

 

 

242,153,222

 

 

$242,153

 

 

$74,202,411

 

 

$-

 

 

$(76,227,292 )

 

$(1,782,728 )

 

See notes to unaudited condensed financial statements.

 

 
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 UNITED HEALTH PRODUCTS, INC.

Condensed Statements of Cash Flows

(Unaudited)

 

 

 

For the Nine Months

Ended September 30,

 

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

Net (Loss)

 

$(2,151,349 )

 

$(1,022,734 )

Adjustments to Reconcile Net (Loss) to Net Cash Used In Operating Activities:

 

 

 

 

 

 

 

 

Stock for services and compensation

 

 

-

 

 

 

483,450

 

Amortization of debt discount

 

 

26,502

 

 

 

8,304

 

Amortization expense

 

 

3,038

 

 

 

3,037

 

Amortization of right-of-use asset

 

 

346

 

 

 

-

 

Stock received as other income

 

 

-

 

 

 

(808,781 )

Stock issued for litigation settlement

 

 

462,500

 

 

 

-

 

Loss on settlement of debt

 

 

80,532

 

 

 

127,375

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Inventory

 

 

1,132

 

 

 

(37,750 )

Prepaid and other current assets

 

 

(7,504 )

 

 

(25,000 )

Accounts payable and accrued expenses

 

 

(14,040 )

 

 

441,240

 

Accrued liabilities – related party

 

 

224,698

 

 

 

149,575

 

Accrued litigation settlement

 

 

(250,000 )

 

 

280,000

 

Net Cash Used In Operating Activities

 

 

(1,624,145 )

 

 

(401,284 )

 

 

 

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

 

Purchase of intangible assets

 

 

-

 

 

 

(40,500 )

Security deposit

 

 

(2,850 )

 

 

-

 

Net Cash Used in Investing Activities

 

 

(2,850 )

 

 

(40,500 )

 

 

 

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

 

Proceeds from loan payable - related party

 

 

-

 

 

 

383,275

 

Repayments on loan payable - related party

 

 

(4,000 )

 

 

(226,275 )

Repayments on loan payable

 

 

(19,136 )

 

 

(63,465 )

Repurchase of common stock

 

 

-

 

 

 

(50,000 )

Payment of offering costs

 

 

(12,000

 

 

-

 

Proceeds from sale of common stock

 

 

1,722,793

 

 

 

87,148

 

Proceeds from convertible notes payable – related party

 

 

-

 

 

 

93,000

 

Proceeds from convertible notes payable

 

 

-

 

 

 

293,000

 

Cash flow provided by financing activities

 

 

1,687,657

 

 

 

516,683

 

Increase in Cash and Cash Equivalents

 

 

60,662

 

 

 

74,899

 

Cash and Cash Equivalents – Beginning of period

 

 

13,377

 

 

 

21,799

 

 

 

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS – END OF PERIOD

 

$74,039

 

 

$96,698

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

Cash paid for interest

 

$15

 

 

$12,861

 

Cash paid for income taxes

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

Non-cash Investing & Financing Activities:

 

 

 

 

 

 

 

 

Cancellation of common stock

 

$-

 

 

$250

 

Amortization of deferred offering costs

 

$164,527

 

 

$-

 

Initial recognition of operating lease right-of-use asset and operating lease liability

 

$92,425

 

 

$-

 

Common stock issued to settle accrued liabilities – related party

 

$218,250

 

 

$204,000

 

Accounts payable and accrued expenses paid with promissory note payable

 

$10,000

 

 

$-

 

Common stock issued to settle accounts payable and accrued liabilities

 

$126,000

 

 

$254,001

 

Accrued litigation settlement paid with loan payable

 

$-

 

 

$100,000

 

Common stock issued for commitment fee

 

$-

 

 

$250,000

 

Loans payable – related party converted to convertible notes payable – related party

 

$-

 

 

$372,000

 

Debt discount related to original issue discount

 

$-

 

 

$42,000

 

 

See notes to unaudited condensed financial statements.

 

 
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UNITED HEALTH PRODUCTS, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE QUARTERS ENDED SEPTEMBER 30, 2023 AND 2022

(Unaudited)

 

Note 1. Organization and Basis of Preparation

 

United Health Products, Inc. (the “Company”) develops, manufactures, and markets a patented hemostatic gauze for the healthcare and wound care sectors. Our gauze product, HemoStyp®, is a neutralized, oxidized, regenerated cellulose derived from cotton and designed to absorb exudate/drainage from superficial wounds and help control bleeding. The Company in the process of seeking regulatory approval to sell our HemoStyp product line into the U.S. Class III and European Union CE Mark surgical markets. 

 

The accompanying unaudited condensed financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-Q and Regulation S-X. Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”), have been condensed or omitted from these statements pursuant to such rules and regulations and, accordingly, they do not include all the information and notes necessary for comprehensive financial statements and should be read in conjunction with our audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on March 28, 2023.

 

In the opinion of management, all adjustments, which are of a normal recurring nature, considered necessary for the fair presentation of financial statements for the interim period, have been included.

 

Note 2. Significant Accounting Policies

 

Going Concern

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred recurring net losses, negative working capital and operations have not provided cash flows. Additionally, the Company does not currently have sufficient revenue producing operations to cover its operating expenses and meet its current obligations. In view of these matters, there is substantial doubt about the Company’s ability to continue as a going concern. The Company intends to finance its future development activities and its working capital needs largely from the sale of equity securities with some additional funding from other traditional financing sources, including term notes, until such time that funds provided by operations are sufficient to fund working capital requirements. The financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

Cash and Cash Equivalents

 

The Company considers all highly liquid debt investments purchased with a maturity of three months or less to be cash equivalents.

 

 
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Use of Estimates

 

The preparation of financial statements in conformity with generally accepted accounting principles requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reported period. Changes in the economic environment, financial markets, as well as in the healthcare industry, and any other parameters used in determining these estimates, could cause actual results to differ.

 

Fair Value Measurements

 

Accounting principles generally accepted in the United States define fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Additionally, the inputs used to measure fair value are prioritized based on a three-level hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

 

Level 1 — Quoted prices in active markets for identical assets or liabilities.

 

Level 2 — Observable inputs other than quoted prices included in Level 1. We value assets and liabilities included in this level using dealer and broker quotations, bid prices, quoted prices for similar assets and liabilities in active markets, or other inputs that are observable or can be corroborated by observable market data.

 

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

 

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of September 30, 2023 and 2022. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments.

 

 Revenue Recognition

 

The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers. Under ASC 606, the Company recognizes revenue from the sale of its HemoStyp product by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied.

 

The Company receives orders for its HemoStyp products directly from its customers. Revenues are recognized based on the agreed upon sales or transaction price with the customer when control of the promised goods are transferred to the customer. The transfer of goods to the customer and satisfaction of the Company’s performance obligation will occur either at the time when products are shipped or when the products arrive and are received by the customer. No discounts are currently offered by the Company. The Company does not provide an estimate for returns as there is no anticipation for any returns in the normal course of business.

 

Trade Accounts Receivable and Concentration Risk

 

We record accounts receivable at the invoiced amount and we do not charge interest. We review the accounts receivable by amounts due from customers that are past due, to identify specific customers with known disputes or collectability issues. In determining the amount of the reserve, we make judgments about the creditworthiness of significant customers based on ongoing credit evaluations. We will also maintain a sales allowance to reserve for potential credits issued to customers. We will determine the amount of the reserve based on historical credit issued.

 

 
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Table of Contents

 

There were no provisions for doubtful accounts recorded at September 30, 2023 and December 31, 2022. The Company recorded $0 in bad debt expense for the three and nine month periods ended September 30, 2023 and 2022.

 

Inventory

 

Inventory is valued at the lower of cost or net realizable value using the first-in, first-out (FIFO) method. Inventory on the balance sheet consists of work-in process.

 

 

 

September

30, 2023

 

 

December

31, 2022

 

Finished goods

 

$33,598

 

 

$34,730

 

Total inventory

 

$33,598

 

 

$34,730

 

 

During the nine months ended September 30, 2023 and 2022, the Company determined that $0 needed to be impaired and written-off.  During the nine months ended September 30, 2023, the Company used $1,132 of inventory as samples for its FDA testing and recorded it to research and development on the Statement of Operations.

 

Stock Based Compensation

 

The Company accounts for stock-based compensation under the provisions of ASC 718, Compensation-Stock Compensation. Stock-based compensation expense for employees and non-employees is measured at the grant date fair value.

 

Per Share Information

 

Basic earnings per share are calculated using the weighted average number of common shares outstanding for the period presented. Diluted earnings per share is computed using the weighted-average number of common shares and, if dilutive, potential common shares outstanding during the period. The dilutive effect of potential common shares is not reflected in diluted earnings per share because the Company incurred net losses for the three and nine months ended September 30, 2023 and for the nine months ended September 30, 2022 and the effect of including these potential common shares in the net loss per share calculations would be anti-dilutive.

 

 
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Table of Contents

 

The total potential common shares as of September 30, 2023 included 47,665,000 of restricted stock units, 3,636,957 shares for convertible notes payable – related parties and 1,439,783 shares for convertible notes payable. The total potential common shares as of September 30, 2022 included 46,915,000 of restricted stock units, 1,501,233 shares for convertible notes payable – related parties and 799,863 shares for convertible notes payable.

 

The following represents a reconciliation of the numerators and denominators of the basic and diluted earnings per share computation for the three months ended September 30, 2022:

 

 

 

Net Income (Loss)

 

 

Shares

 

 

Per Share

 

 

 

(Numerator)

 

 

(Denominator)

 

 

Amount

 

Basic EPS

 

$820,567

 

 

 

230,438,815

 

 

$0.00

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

 

 

 

Convertible notes payable (interest expense)

 

 

15,290

 

 

 

2,301,096

 

 

 

(0.00 )

Restricted stock units

 

 

-

 

 

 

46,915,000

 

 

 

-

 

Diluted EPS

 

$835,857

 

 

 

279,654,911

 

 

$0.00

 

 

Patents

 

Patents are stated on the balance sheet at cost. Costs, such as filing fees with patent granting agencies and legal fees directly relating to those filings, incurred to file patent applications were capitalized when the Company believed that there was a high likelihood that the patent would be issued and there would be future economic benefit associated with the patent. These costs were amortized from the date of the patent application on a straight-line basis over the estimated useful life of 10 years. All costs associated with any abandoned patent applications are expensed.

 

Accumulated amortization as of September 30, 2023 and December 31, 2022 was $7,088 and $4,050, respectively. Amortization expense for the nine months ended September 30, 2023 and 2022 was $3,038 and $3,037, respectively.

 

Future Amortization Expense

 

Year

 

Amount

 

2023 (remaining)

 

$1,012

 

2024

 

 

4,050

 

2025

 

 

4,050

 

2026

 

 

4,050

 

2027

 

 

4,050

 

Thereafter

 

 

16,200

 

 

 

$33,412

 

 

Impairment of Long-lived Assets

 

The Company applies the provisions of ASC 360, Property, Plant and Equipment, where applicable to all long-lived assets. ASC 360 addresses accounting and reporting for impairment and disposal of long-lived assets. The Company periodically evaluates the carrying value of long-lived assets to be held and used in accordance with ASC 360. ASC 360 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the long-lived assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair market values are reduced for the cost of disposal.

 

When long-lived assets are sold or retired, the related cost and accumulated depreciation or amortization are removed from the accounts and any gain or loss is included in the results of operations. During the nine months ended September 30, 2023 and 2022, the Company determined no impairment was required.

 

 
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Table of Contents

 

Deferred Offering Costs

 

Deferred offering costs represent specific incremental costs directly attributable to the offering of securities. The deferred offering costs are recorded as an offset to additional paid-in capital and charged against the proceeds received.

 

Advertising and Marketing Costs

 

                Advertising and marketing expenses are expensed as incurred. The Company incurred $84,320 and $86,884 in advertising and marketing costs during the nine months ended September 30, 2023 and 2022, respectively. 

 

Research and Development

 

                The Company charges research and development costs to expense when incurred. The Company incurred $445,550 and $414,944 in research and development expenses during the nine months ended September 30, 2023 and 2022, respectively.

 

Leases

 

The Company follows the provisions of ASC 842, and records right-of-use (“ROU”) assets and lease obligations for its operating leases, which are initially recognized based on the discounted future lease payments over the term of the lease. If the rate implicit in the Company's leases is not readily determinable, the Company's applicable incremental borrowing rate is used in calculating the present value of the sum of the lease payments.

 

The lease term is defined as the non-cancelable period of the lease plus any options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option. The Company has elected not to recognize ROU asset and lease obligations for its short-term leases, which are defined as leases with an initial term of 12 months or less.

 

New Accounting Pronouncements

 

The Company considers all new pronouncements and management has determined that there have been no recently adopted or issued accounting standards that had or will have a material impact on its financial statements.

 

 
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Table of Contents

 

Note 3. Related Party Transactions

 

Convertible notes payable - related parties

 

During the year ended December 31, 2022, Brian Thom, the Company’s Chief Executive Officer, converted $372,000 of a loan payable balance to a convertible note payable.  The unpaid accrued interest on the loan payable was transferred to the convertible note payable. The note has an interest rate of 10%, an original issue discount (“OID”) of 7% and has a maturity date of December 31, 2023. The note is convertible into common stock of the Company at $0.35 per share.  In the event the Company issues any shares of common stock before the maturity date at a price that is lower than $0.35 per share, the conversion price shall be reduced to equal such lower issue price per share.  The Company recorded $28,000 of a debt discount related to the OID. As of September 30, 2023 and December 31, 2022, the remaining unamortized debt discount was $2,790 and $16,998, respectively.  Accrued interest associated with the note was $66,439 and $33,897 as of September 30, 2023 and December 31, 2022, respectively.

 

During the year ended December 31, 2022, Robert Denser, a Director of the Company, loaned the Company $93,000 through a convertible note.  The note has an interest rate of 10%, an OID of 7% and has a maturity date of December 31, 2023. The note is convertible into common stock of the Company at $0.35 per share.  In the event the Company issues any shares of common stock before the maturity date at a price that is lower than $0.35 per share, the conversion price shall be reduced to equal such lower issue price per share. The Company recorded $7,000 of a debt discount related to the OID. As of September 30, 2023 and December 31, 2022, the remaining unamortized debt discount was $946 and $4,671, respectively. Accrued interest associated with the note was $11,837 and $4,034 as of September 30, 2023 and December 31, 2022, respectively.

 

Interest expense – related party on the above convertible notes payable was $19,491 (including $6,043 of debt discount amortization related to the OID) and $8,822 (including $7,288 of debt discount amortization related to the OID) during the three months ended September 30, 2023 and 2022, respectively. Interest expense was $58,278 (including $17,933 of debt discount amortization related to the OID) and $8,822 (including $7,288 of debt discount amortization related to the OID) during the nine months ended September 30, 2023 and 2022, respectively. Accrued interest – related party due to these convertible notes was $78,276 and $37,931, as of September 30, 2023 and December 31, 2022, respectively.

 

Loans payable – related parties

 

During the year ended December 31, 2022, Kristofer Heaton, the Principal Financial Officer, loaned the Company $4,000 to pay for operating expenses. The loan had an interest rate of 10% and was due on demand. During the nine months ended September 30, 2023, the Company repaid $4,000 of principal and $446 of accrued interest leaving a balance of $0 as of September 30, 2023.

 

Interest expense – related party on the above loan was $11 and $100 during the three months ended September 30, 2023 and 2022, respectively. Interest expense was $222 and $100 during the nine months ended September 30, 2023 and 2022, respectively. Accrued interest – related party as of September 30, 2023 and December 31, 2022 was $0 and $224, respectively.

 

Accrued liabilities – related parties

 

As of September 30, 2023 and December 31, 2022, $90,751 and $127,500 of accrued compensation was due to the Company’s officers and management, respectively.

 

Equity transactions

 

During the nine months ended September 30, 2023, the Company issued 1,204,688 shares of common stock with a fair value of $271,031 to its officers and management for $218,250 of accrued compensation (see Note 6).

 

 
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Table of Contents

 

Note 4. Promissory Note Payable

 

During the year ended December 31, 2022, the Company entered into a $100,000 promissory note which accrued interest at 1% and required monthly payments of $9,136 until the balance was paid in full. As of December 31, 2022, there was a principal balance of $9,136 and accrued interest of $0.

 

During the nine months ended September 30, 2023, the Company paid the remaining principal balance of $9,136.  As of September 30, 2023, the principal balance and accrued interest was $0.

 

During the nine months ended September 30, 2023, $10,000 of accounts payable and accrued liabilities were paid on behalf of the Company.   The Company entered into a note payable for the $10,000 payment.  The note payable had an interest rate of 5% and a maturity date of December 31, 2023.  During the nine months ended September 30, 2023, the Company repaid $10,000 of principal and $256 of accrued interest leaving a balance of $0 as of September 30, 2023.

 

Interest expense on the above loans was $6 and $0 during the three months ended September 30, 2023 and 2022, respectively. Interest expense was $256 and $0 during the nine months ended September 30, 2023 and 2022, respectively. Accrued interest as of September 30, 2023 and December 31, 2022 was $0, respectively.

 

Note 5. Convertible Notes

 

During the year ended December 31, 2022, the Company issued a $93,000 convertible note and a $99,975 convertible note and received total proceeds of $192,975.  The notes have an interest rate of 10%, an OID of 7% and have a maturity date of December 31, 2023. The notes are convertible into common stock of the Company at $0.35 per share.  In the event the Company issues any shares of common stock before the maturity date at a price that is lower than $0.35 per share, the conversion price shall be reduced to equal such lower issue price per share. The Company recorded $14,525 of a debt discount related to the OID. As of September 30, 2023 and December 31, 2022, the remaining unamortized debt discount was $2,754 and $11,323, respectively.

 

Interest expense on the above convertible notes payable was $8,135 (including $2,811 of debt discount amortization related to the OID) and $6,468 (including $1,016 of debt discount amortization related to the OID) during the three months ended September 30, 2023 and 2022, respectively.  Interest expense was $24,541 (including $8,569 of debt discount amortization related to the OID) and $6,468 (including $1,016 of debt discount amortization related to the OID) during the nine months ended September 30, 2023 and 2022, respectively. Accrued interest as of September 30, 2023 and December 31, 2022 was $21,426 and $5,454, respectively, and has been recorded in accrued liabilities on the balance sheet. 

 

Note 6. Issuances of Securities

 

Share issuances 2022

 

During the nine months ended September 30, 2022, the Company had the following common stock transactions:

 

 

·

259,028 shares of common stock were sold to non-affiliated investors in a private placement for total cash proceeds of $87,148.

 

·

672,919 shares of commons stock with a fair value of $254,001 were issued to various consultants to settle $203,126 of accrued liabilities resulting in a loss on settlement of debt of $50,875.

 

·

300,000 shares of common stock with a fair value of $129,000 were issued to consultants for services.

 

·

425,000 shares of common stock were issued to settle $127,500 of accrued liabilities – related party resulting in a loss of settlement of debt of $76,500.

 

·

850,000 shares of common stock with a fair value of $344,250 were issued to officers and a former officer of the Company for services.

 

·

250,000 shares of common stock were cancelled reducing common stock by $250 and increasing additional paid-in capital by the same.

 

·

757,756 shares of common stock with a fair value of $250,000 were issued as a commitment shares.

 

·

20,000 shares of common stock with a fair value of $10,200 were issued for legal services.

 

Share repurchases 2022

 

During the nine months ended September 30, 2022, the Company paid $50,000 to repurchase 142,857 shares of common stock and received 2,085,258 shares of common stock from its former Chief Executive Officer in connection with his remaining $808,781 disgorgement settlement obligation with the SEC. The aggregate amount of 2,228,115 shares of common stock were cancelled.

 

 
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Table of Contents

 

Share issuances 2023

 

                During the nine months ended September 30, 2023, the Company had the following common stock transactions:

 

 

·

1,204,688 shares of common stock with a fair value of $271,031 were issued to officers and management of the Company to settle $218,250 of accrued liabilities (see Note 3) resulting in a loss on settlement of debt of $52,781.

 

·

712,500 shares of common stock with a fair value of $153,751 were issued to consultants to settle $126,000 of accrued liabilities resulting in a loss on debt settlement of $27,751.

 

·

7,515,000 shares of common stock were sold for $1,710,793, net of legal and administrative fees of $12,000 and which included a payment of $50,550 for a subscription receivable, under the Company’s common stock purchase agreement with White Lion.

 

·

1,850,000 shares of common stock with a fair value of $462,500 were issued to settle litigation (see Note 8).

 

Restricted stock units

 

As of September 30, 2023 and December, 31, 2022, the Company has 47,665,000 restricted stock units (RSU) outstanding. The RSU’s are subject to certain conditions and shall vest upon the achievement of certain Company objectives and milestones. 

 

Management is unable to predict if or when a Covered Transaction or Triggering Event under the RSU Agreements governing the restricted stock units will occur and as of September 30, 2023, there was $25,313,630 of unrecognized compensation cost related to unvested restricted stock unit awards.  

 

 
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Activity related to our restricted stock units during the three months ended September 30, 2023 was as follows:

 

 

 

 

 

Weighted

 

 

 

 

 

Average

 

 

 

 

 

Grant

 

 

 

Number of

 

 

Date Fair

 

 

 

Units

 

 

Value

 

Total awards outstanding at December 31, 2022

 

 

47,665,000

 

 

$0.54

 

Units granted

 

 

-

 

 

$-

 

Units Exercised/Released

 

 

-

 

 

$-

 

Units Cancelled/Forfeited

 

 

-

 

 

$-

 

Total awards outstanding at September 30, 2023

 

 

47,665,000

 

 

$0.54

 

 

 Note 7. Accrued Litigation Settlement

 

On June 15, 2022, the Security and Exchange Commission’s (SEC) investigation of the Company, initially reported in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, was settled through the filing of a consent judgment without the Company admitting or denying the SEC’s allegations. As part of the settlement, the Company was required to pay a civil penalty of $450,000, payable in four installments as follows:

 

 

·

$50,000 upon the entry of the judgment;

 

·

$100,000 within 90 days of the entry of the judgment;

 

·

$150,000 within 180 days of the entry of the judgment; and

 

·

$150,000 within 270 days of the entry of the judgment, plus statutory interest on payments made after 30 days of the entry of the judgment pursuant to U.S.C. Section 1961

 

During the nine months ended September 30, 2023, the Company amended its installment payment plan to the SEC related to its civil penalty.  The amended payment plan called for the Company to make three $50,000 payments with payments due on August 1, 2023, September 1, 2023 and October 1, 2023 with any remaining principal plus outstanding post-judgement interest to be paid on November 1, 2023

 

The Company has made total payments of $400,000 towards the civil penalty through September 30, 2023 and the $50,000 due on October 1, 2023 has been paid by the Company.  As of September 30, 2023 and December 31, 2022, the remaining balance was $50,000 (inclusive of $7,638 of post-judgement interest) and $300,000, respectively. Post-judgment interest of $7,638 has been accrued and is included in accounts payable and accrued liabilities on the balance sheet as of September 30, 2023.

 

Note 8. Litigation

 

Effective as of March 31, 2023, a 2018 lawsuit filed by Philip Forman, against the Company and its former CEO relating to the validity of a June 25, 2015 Amendment to his November 10, 2014 Employment Agreement with the Company and claims for compensation on termination of his employment was settled. In the settlement, as full and complete consideration, the Company issued to Mr. Forman 1,850,000 shares of common stock of the Company with a fair value of $462,500.  

 

 
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Note 9. Leases

 

In May 2023, the Company entered into 36-month operating lease, which provides for approximately 1,800 square feet of office space, that commenced on June 1, 2023 and ends on May 31, 2026. The lease required a $2,850 security deposit and monthly lease payments are $2,850 the first year of the lease, $2,964 the second year and $3,082 the third year.

 

Operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. On the commencement date of the lease, the Company recorded $92,425 related to the ROU asset and lease liability.

 

The components of lease expense and supplemental cash flow information related to the lease for the period are as follows:

 

 

 

Nine Months Ended

September

30, 2023

 

Lease Cost

 

 

 

Operating lease cost (included in general and administrative in the Company’s statement of operations)

 

$11,746

 

 

 

 

 

 

Other Information

 

 

 

 

Cash paid for amounts included in the measurement of lease liabilities for the nine months ended September 30, 2023

 

$11,400

 

Weighted average remaining lease term – operating leases (in years)

 

2.67 years

 

Average discount rate – operating lease

 

 

10%

 

The supplemental balance sheet information related to leases for the period is as follows:

 

 

 

At September

30, 2023

 

 

At December

31, 2022

 

Operating leases

 

 

 

 

 

 

Remaining right-of-use assets

 

$82,813

 

 

$-

 

 

 

 

 

 

 

 

 

 

Short-term operating lease liabilities

 

$27,790

 

 

$-

 

Long-term operating lease liabilities

 

$55,369

 

 

$-

 

Total operating lease liabilities

 

$83,159

 

 

$-

 

 

Maturities of the Company’s undiscounted lease liabilities are as follows:

 

Year Ending

 

Operating

Leases

 

2023 (Remaining)

 

$8,550

 

2024

 

 

34,998

 

2025

 

 

36,394

 

2026

 

 

14,664

 

Total lease payments

 

 

94,606

 

Less: Imputed interest/present value discount

 

 

(11,447 )

Present value of lease liabilities

 

$83,159

 

 

Note 10. Subsequent Events

 

The Company has evaluated events from September 30, 2023, through the date whereupon the financial statements were issued and has determined that there are no material events that need to be disclosed except as follows:

 

The Company sold 830,000 shares of common stock to White Lion for net proceeds of $196,895 after $2,400 of administrative fees were deducted.

 

The Company paid a total of $57,638 to the SEC which included the final scheduled payment of $50,000 towards the civil penalty along with $7,638 of post-judgement interest (see Note 7).

 

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

 

You should read the following discussion and analysis of our financial condition and results of operations together with our condensed financial statements and related notes appearing elsewhere in this quarterly report on Form 10-Q. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. The actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors, including, but not limited to, those set forth under ‘Risk Factors’ in our annual report on Form 10-K for the fiscal year ended December 31, 2022, filed with SEC on March 28, 2023.

 

Company Overview

 

UHP develops, manufactures, and markets a patented hemostatic gauze for the healthcare and wound care sectors. Our gauze product, HemoStyp, is derived from cotton and designed to absorb exudate/drainage from superficial wounds and help control bleeding. We are in the process of seeking regulatory approval to sell our Hemostyp product line into the U.S. Class III and European CE Mark surgical markets.

 

Our HemoStyp Gauze Products

 

HemoStyp hemostatic gauze is a natural substance created from chemically treated cellulose derived from cotton. It is an effective hemostatic agent registered with the FDA for superficial use under a 510(k) approval obtained in 2012 to help control bleeding from open wounds and body cavities. The HemoStyp hemostatic material contains no chemical additives, thrombin, collagen or animal-derived products, and is hypoallergenic. When the product comes in contact with blood it expands slightly and quickly converts to a translucent gel that subsequently breaks down into glucose and salts. Because of its benign impact on body tissue and the fact that it degrades to non-toxic end products, HemoStyp does not impede the healing of body tissue as compared to certain competing hemostatic products. Laboratory testing has shown HemoStyp to be 100% absorbable in the human body within 24 hours, compared to days or weeks with competing organic regenerated cellulose products. A human trial conducted in 2019 and 2020 demonstrated the effectiveness of HemoStyp in vascular, thoracic and abdominal surgical procedures.

 

 
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HemoStyp hemostatic gauze is a flexible, silk-like material that is applied by placing the gauze onto the bleeding tissue. The supple material can be easily folded and manipulated as needed to fit the size of the wound or incision. In surface bleeding and surgical situations, the product quickly converts to a translucent gel that allows the physician or surgeon to monitor the coagulation process. The gel maintains a neutral pH level which avoids damaging the surrounding tissue. In superficial bleeding situations, HemoStyp can be bonded to an adhesive plastic bandage or integrated into a traditional gauze component to address a broad range of needs, including traumatic bleeding injuries and prolonged bleeding following hemodialysis.

 

Potential Target Markets

 

Our HemoStyp material is currently cut to several sizes and configuration and marketed as HemoStyp Gauze. While we have paused our commercial activities to focus on our Class III PMA application, our potential customer base includes, without limitation, the following:

 

 

·

Hospitals and Surgery Centers for all Internal Surgical usage (in the event we obtain FDA Class III approval)

 

·

Hospitals, Clinics and Physicians for external trauma

 

·

EMS, Fire Departments and other First Responders

 

·

Military Medical Care Providers

 

·

Hemodialysis centers

 

·

Nursing Homes and Assisted Living Facilities

 

·

Dental and Oral & Maxillofacial Surgery Offices

 

·

Veterinary hospitals

 

Primary Strategy

 

Our HemoStyp technology received an FDA 510(k) approval in 2012 for use in external or superficial bleeding situations and we believe there is an opportunity for HemoStyp products to address unmet needs in several medical applications that represent attractive commercial opportunities. However, the Class III surgical markets, both domestic and international, represent the most attractive market for our products due to the smaller number of competitors offering Class III approved hemostatic agents and the resulting premium pricing for products that can meet the demanding requirements of the human surgical environment. We believe that our extensive laboratory testing and our completed human trial indicate that the HemoStyp technology could successfully compete against established Class III market participants, and could gain a significant market share. There can be no assurance that an FDA Premarket Approval (PMA) will be granted. 

 

In 2018, we made the decision to focus our efforts and resources on accessing these Class III markets to maximize the value potential of our HemoStyp products. The Class III PMA process required a substantial investment of time and resources so we made the strategic determination to deemphasize our sales and marketing to non-Class III markets in order to devote our full resources to the PMA process.

 

In anticipation of receiving a Class III PMA (which cannot be assured), we are evaluating paths to rapidly grow our revenue and profits in all potential market segments, with the objective of maximizing shareholder value. We do not intend to pursue the full commercialization of our products independently nor to remain an independent company in the long term. Options under consideration include (i) a sale or merger of the Company with an industry leader in the wound care and surgical device sectors, which may include a pre-sale collaboration on commercialization and distribution and (ii) one or more commercial partnerships with established market participants, without any specific, associated sale or merger transaction. 

 

 
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The Company has been contacted by several medical technology companies that are active in the surgical equipment and hemostatic products sectors, and who have expressed an interest in the Company’s products and business strategy. We continue to to evaluate the potential commercial partnerships in anticipation of an FDA decision on our Class III PMA application. No assurances can be given that the Company will identify any commercialization candidate(s) or enter into a transaction.

 

Manufacturing and Packaging of our Products

 

The Company’s products will be manufactured to our specifications through a contract manufacturing arrangement with an FDA certified supplier that maintains stringent quality control protocols to assure the uniformity and quality of all of our gauze products. Information on the manufacturing process and our manufacturer’s facility has been submitted as part of our PMA submission. Our gauze products are cut to size, packaged and sterilized by service providers in the United States. 

 

Patents and Trademarks

 

Our hemostatic gauze technology is protected through patents granted by the U.S. Patent and Trademark Office, which protection currently runs through 2029. In 2020 and 2021, we filed additional U.S. and International patents that protect the use of our NORC technology in a gel or hydrocolloid formulation.

 

On January 21, 2021, the U.S. Patent Office provided notification of publication of the Company’s patent application for the method of forming and using a hemostatic hydrocolloid. This publication does not imply any assurance of the receipt of the patent but establishes an obligation of any party that seeks to use the applicable method to pay royalties for the right to do so. The patent application for this process remains pending as of the date of this filing.

 

On February 11, 2021, the Company was notified that its application to establish global patent protection for the process of creating and deploying a hydrocolloid (or gel) format of its HemoStyp technology was accepted for publication under the procedures of the Patent Cooperation Treaty (“PCT”), an international patent law treaty which provides a unified procedure for filing a patent application in most foreign countries. We previously filed provisional patent applications for our HemoStyp hydrocolloid process in 2020. In January 2022 the Company initiated steps to register its hydrocolloid patent in the European common market and in additional foreign countries where we intend to commercialize any future HemoStyp gel formats. We can give no assurance that foreign registration of our patents will be granted in any of these jurisdictions.

 

The Company has registered trademarks and trademark applications for the following product formats:

 

 

·

Boo Boo Strips

 

· 

HemoStyp

 

·

The Ultimate Bandage

 

·

Hemostrips

 

·

CelluSTAT

 

·

Nik Fix

 

 
20

Table of Contents

 

Results of Operations for the three months ending September 30, 2023 and 2022

 

The following table sets forth a summary of certain key financial information for the three months ended September 30, 2023 and 2022:

 

 

 

For the Three Months

Ended September 30,

 

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

Revenue

 

$-

 

 

$37,500

 

 

 

 

 

 

 

 

 

 

Gross profit

 

$-

 

 

$18,856

 

 

 

 

 

 

 

 

 

 

Operating (expenses)

 

$(450,451 )

 

$(558,034 )

 

 

 

 

 

 

 

 

 

Operating (loss)

 

$(450,451 )

 

$(539,178 )

 

 

 

 

 

 

 

 

 

Other income (expense)

 

$(35,281 )

 

$1,359,745

 

 

 

 

 

 

 

 

 

 

Net income(loss)

 

$(485,732 )

 

$820,567

 

 

 

 

 

 

 

 

 

 

Net loss per common share - basic and diluted

 

$(0.00 )

 

$0.00

 

 

Three Months ended September 30, 2023 versus Three Months ended September 30, 2022

 

During the three months ended September 30, 2023 and 2022, the Company had $0 and $37,500 of revenues, respectively. The Company did not generate any revenues in the current quarter due to the continued focus of the Company’s capital and resources towards obtaining a Class III PMA.

 

Total operating expenses for the three months ended September 30, 2023 and 2022 were $450,451 and $558,034, respectively.

 

The decrease in operating expenses was primarily due to research and development expenses decreasing $93,217 to $121,761 during the three months ended September 30, 2023 from $214,978 in the three months ended September 30, 2022.

 

Other income (expense) for the three months ended September 30, 2023 and 2022 was $(35,281) and $1,359,745, respectively. The decrease in other income was due to a decrease in loss on settlement of debt of $14,000, a decrease in other income of $1,402,981 offset by an increase in total interest expense of $6,045. The decrease in other income is due to the Company having received $392,000 as a litigation settlement payment from its former auditor and the receipt of $202,200 in cash and 2,085,258 shares of common stock as payment of $808,781 from its former Chief Executive Officer to satisfy a disgorgement obligation during the three months September 30, 2022 and having $0 in other income during the three months ended September 30, 2023.

 

 
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Table of Contents

 

Our net loss for the three months ended September 30, 2023 was $485,732 as compared to net income of $820,567 for the comparable period of the prior year. The increase in the net loss is due to the Company having a decrease in operating expenses of $107,583 offset by a decrease in gross profits of $18,856 and a decrease in other income of $1,395,026, as explained above.

 

Results of Operations for the nine months ending September 30, 2023 and 2022

 

The following table sets forth a summary of certain key financial information for the nine months ended September 30, 2023 and 2022:

 

 

 

For the Nine Months

Ended September 30,

 

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

Revenue

 

$-

 

 

$37,500

 

 

 

 

 

 

 

 

 

 

Gross profit

 

$-

 

 

$18,856

 

 

 

 

 

 

 

 

 

 

Operating (expenses)

 

$(1,979,882 )

 

$(2,267,332 )

 

 

 

 

 

 

 

 

 

Operating (loss)

 

$(1,979,882 )

 

$(2,248,476 )

 

 

 

 

 

 

 

 

 

Other income (expense)

 

$(171,467 )

 

$1,225,742

 

 

 

 

 

 

 

 

 

 

Net (loss)

 

$(2,151,349 )

 

$(1,022,734 )

 

 

 

 

 

 

 

 

 

Net loss per common share - basic and diluted

 

$(0.01 )

 

$(0.00 )

 

Nine Months ended September 30, 2023 versus Nine Months ended September 30, 2022

 

During the nine months ended September 30, 2023 and 2022, the Company had $0 and $37,500 of revenues, respectively. The Company did not generate any revenues in the current period due to the continued focus of the Company’s capital and resources towards obtaining a Class III PMA.

 

Total operating expenses for the nine months ended September 30, 2023 and 2022 were $1,979,882 and $2,267,332, respectively.

 

The decrease in operating expenses was due primarily to a decrease in legal and professional of $93,018 due to the Company having settled various litigation matters during 2022 and a decrease in consulting expense of $269,515   offset by an increase in rent expense of $21,746, an increase of $12,500 in litigation settlement expenses ($462,500 and $450,000 for the nine months ended September 30, 2023 and 2022, respectively) and an increase of $30,606 in research and development expenses from $414,944 in the nine months ended September 30, 2022 compared to $445,550 in the nine months ended September 30, 2023. 

 

 
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Table of Contents

 

Other income (expense) for the nine months ended September 30, 2023 and 2022 was $(171,467) and $1,225,742, respectively. The decrease in other income was due to an increase in total interest expense of $41,071 offset by a decrease in other income of $1,402,981 and a decrease in loss on debt settlement of $46,843 during the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022.

 

The increase in interest expense was primarily due to the Company having a larger outstanding balance of interest bearing promissory notes, $7,638 of post-judgement interest related to the SEC penalty and $26,502 of debt discount amortization expense during the nine months ended September 30, 2023 compared to $8,304 during the nine months September 30, 2022.

 

The decrease in other income was due to the Company receiving $392,000 as a settlement payment from its former auditor related to litigation and the receipt of $202,200 in cash and 2,085,258 shares of common stock as payment of $808,781 from its former Chief Executive Officer to satisfy a disgorgement obligation during the nine month period ended September 30, 2022 compared with the Company having $0 of other income during the nine months ended September 30, 2023.

 

The decrease in the loss on settlement of debt was due to the Company issuing common stock with a fair value of $424,782 for the settlement of an aggregate of $344,250 of accrued liabilities and accrued liabilities – related party during the nine months ended September 30, 2023 compared to the Company issuing common stock with a fair value of $458,001 for the settlement of an aggregate of $330,626 of accrued liabilities and accrued liabilities – related parties during the nine months ended September 30, 2022.

 

Our net loss for the nine months ended September 30, 2023 was $2,151,349 as compared to net loss of $1,022,734 for the comparable period of the prior year. The increase in the net loss was due to the Company having a decrease in operating expenses of $287,450 offset by a decrease in gross profits of $18,856 and a decrease in other income of $1,397,209 for the nine months ended September 30, 2023 as explained above.

 

Financial Condition, Liquidity and Capital Resources

 

As of September 30, 2023, the Company had a negative working capital of $1,924,946. The Company has not yet attained a level of operations which will allow it to meet its current overhead expense obligations. The report of our independent registered public accounting firm on our 2022 financial statements includes an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The Company has been focusing its capital and resources towards seeking a Class III PMA for its HemoStyp technology, and has funded its initial operations with private placements, and unsecured loans from related parties. There can be no assurance that adequate financing will continue to be available to the Company and, if available, on terms that are favorable to the Company. Our ability to continue as a going concern is also dependent on many events outside of our direct control, including, among other things, our ability to achieve our business goals and objectives, as well as improvement in the economic climate.

 

During 2022, the Company entered into a common stock purchase agreement (“CSPA”) with White Lion, which gives the Company the right, but not the obligation, to require White Lion to purchase up to $10,000,000 of the Company’s common stock, subject to certain limitations and conditions set forth in the CSPA. As of the date of this filing, the Company has received approximately $1,980,082 in proceeds from White Lion to pay for its operations and finalization of its Class III PMA application. The sale of additional equity or convertible debt securities would be dilutive to our shareholders. In addition, economic conditions and actions by policymaking bodies are contributing to rising interest rates and significant capital market volatility, which, along with increases in our borrowing levels, could increase our future borrowing costs.

   

Cash Flows

 

The Company’s cash on hand at September 30, 2023 and December 31, 2022 was $74,039 and $13,377, respectively.

 

 
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Table of Contents

 

The following table summarizes selected items from our statements of cash flows for the nine months ended September 30, 2023 and 2022:

 

 

 

For the Nine Months

Ended September 30,

 

 

 

2023

 

 

2022

 

Net cash used in operating activities

 

$(1,624,145 )

 

$(401,284 )

Net cash used in investing activities

 

 

(2,850 )

 

 

(40,500 )

Net cash provided by financing activities

 

 

1,687,657

 

 

 

516,683

 

 

 

 

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

$60,662

 

 

$74,899

 

 

Net Cash Used in Operating Activities

 

Net cash used in operating activities for the nine months ended September 30, 2023 was $1,624,145. The Company had net loss of $2,151,349 offset by amortization expense of $3,038, amortization of right-of-use asset of $346, amortization of debt discount of $26,502, stock issued for litigation settlement of $462,500, a loss on debt settlement of $80,532, a decrease in inventory of $1,132, an increase in prepaid and other current assets of $7,504 and an increase in accrued liabilities - related party of $224,698.  The Company also had a decrease in accounts payable and accrued expenses of $14,040 and a decrease in accrued litigation settlement of $250,000.

 

Net cash used in operating activities for the nine months ended September 30, 2022 was $401,284. The Company had net loss of $1,022,734 and $808,781 as stock received as other income offset by stock for services and compensation of $483,450, amortization expense of $3,037, amortization of debt discount of $8,304, a loss on debt settlement of $127,375.  The Company had an increase in accounts payable and accrued expenses of $441,240, an increase in accrued liabilities - related party of $149,575, an increase in accrued litigation settlement of $280,000, an increase in prepaid expenses of $25,000 and an increase in inventory of $37,750. 

 

 
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Table of Contents

 

Net Cash Used in Investing Activities

 

The Company paid $2,850 related to a security deposit during the nine months ended September 30, 2023.

 

The Company paid $40,500 related to the patent application fees during the nine months ended September 30, 2022.

 

Net Cash Provided by Financing Activities

 

Net cash provided by financing activities for the nine months ended September 30, 2023 was $1,687,657. This was due to the result of the Company receiving net proceeds of $1,722,793 from the sale of stock offset by making payments of offering costs of $12,000, $19,136 on a loan payable and $4,000 on a loan payable – related party.

 

Net cash provided by financing activities for the nine months ended September 30, 2022 was $516,683. This was due to the Company receiving $383,275 in proceeds from related parties, $87,148 in proceeds from the sale of stock, $93,000 in proceeds from convertible notes – related party and $293,000 in proceeds from convertible notes payable offset by making payments of $226,275 on loans payable – related party, $63,465 on loan payable and repurchasing $50,000 of common stock. 

 

Off-Balance Sheet Arrangements

 

As of September 30, 2023, we have no off-balance sheet arrangements.

 

Critical Accounting Estimates

 

The preparation of financial statements in conformity with generally accepted accounting principles of the United States (“GAAP”) requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses in the financial statements and accompanying notes. Critical accounting estimates are those estimates made in accordance with GAAP that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on the financial condition or results of operations of the Company. Based on this definition, we have the critical accounting estimates identified below. We also have other key accounting policies, which involve the use of estimates, judgments, and assumptions that are significant to understanding our results which are found in Note 2 – Significant Accounting Policies of our 2022 Annual Report on Form 10-K and Note 2 – Significant Accounting Policies in the accompanying financial statements. Although we believe that our estimates, assumptions, and judgments are reasonable, they are based upon information presently available. Actual results may differ significantly from these estimates under different assumptions, judgments, or conditions.

 

Stock-Based Compensation

 

The Company accounts for stock-based compensation under the provisions of ASC 718, Compensation-Stock Compensation. Stock-based compensation expense for employees and non-employees is measured at the grant date fair value. Stock-based compensation for all stock-based awards to employees and directors is recognized as an expense over the requisite service period, which is generally the vesting period.

 

 
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Table of Contents

  

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

 

Not applicable 

 

Item 4. Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures

 

The Company is in the process of implementing disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 (the ‘‘Exchange Act’’), that are designed to ensure that information required to be disclosed in the Company’s Exchange Act reports are recorded, processed, summarized, and reported within the time periods specified in rules and forms of the Securities and Exchange Commission, and that such information is accumulated and communicated to our Chief Executive Officer and Principal Financial Officer to allow timely decisions regarding required disclosure.

 

As of September 30, 2023, the Chief Executive Officer and the Principal Financial Officer carried out an assessment of the effectiveness of the design and operation of our disclosure controls and procedures and concluded that the Company’s disclosure controls and procedures were not effective.

 

Changes in Internal Control over Financial Reporting

 

During the nine months ended September 30, 2023, there were no changes in our system of internal controls over financial reporting.

 

 
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Table of Contents

 

 

PART II – OTHER INFORMATION

 

Item 1. Legal Proceedings

 

None.

 

Item 1A. Risk Factors

 

Management does not believe there have been any material changes to the risk factors listed in Part I, “Item 1A, Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2022. These risk factors should be carefully considered with the information provided elsewhere in this report, which could materially adversely affect our business, financial condition or results of operations.

 

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

 

The following summarizes all sales of our unregistered securities from January 1, 2023 through September 30, 2023. The securities in the below-referenced transactions were (i) issued without registration and (ii) were subject to restrictions under the Securities Act and the securities laws of certain states, in reliance on the private offering exemptions contained in Sections 4(a)(2), 4(a)(6) and/or 3(b) of the Securities Act and on Regulation D promulgated under the Securities Act, and in reliance on similar exemptions under applicable state laws as transactions not involving a public offering. No placement or underwriting fees were paid in connection with these transactions. All cash proceeds from the sale of securities were used for working capital purposes.

 

Date of Sale

 

Title of Security

 

Number Sold

 

Consideration Received

 

Purchaser/Recipient

January 2023

 

Common Stock

 

937,500

 

$187,500 of accrued liabilities

 

Officers and consultants

January 2023

 

Common Stock

 

1,135,000

 

$249,399 in cash

 

White Lion (1)

February 2023

 

Common Stock

 

1,000,000

 

$202,733 in cash

 

White Lion (1)

March 2023

 

Common Stock

 

400,000

 

$73,173 in cash

 

White Lion (1)

March 2023

 

Common Stock

 

400,000

 

$71,717 in cash

 

White Lion (1)

March 2023

 

Common Stock

 

1,850,000

 

$462,500 to settle litigation

 

Philip Forman

April 2023

 

Common Stock

 

979,688

 

$156,750 of accrued liabilities

 

Officers and consultants

April 2023

 

Common Stock

 

450,000

 

$86,524 in cash

 

White Lion (1)

May 2023

 

Common Stock

 

800,000

 

$139,797 in cash

 

White Lion (1)

June 2023

 

Common Stock

 

1,200,000

 

$277,686 in cash

 

White Lion (1)

June 2023

 

Common Stock

 

1,100,000

 

$311,820 in cash

 

White Lion (1)

August 2023

 

Common Stock

 

500,000

 

$123,035 in cash

 

White Lion (1)

September 2023

 

Common Stock

 

530,000

 

$124,358 in cash

 

White Lion (1)

 

 

(1)

Issued by the Company to White Lion Capital, LLC pursuant to the terms of the Common Stock Purchase Agreement dated September 1, 2022, as amended.

 

Item 3. Defaults Upon Senior Securities

 

None.

 

Item 4. Mine Safety Disclosures

 

Not applicable.

 

Item 5. Other Information

 

Not applicable.

 

 
27

Table of Contents

 

Item 6. Exhibits

 

The following exhibits are filed with this report, or incorporated by reference as noted:

 

3.1

 

Articles of Incorporation of the Company dated February 28, 1997 (1)

 

 

 

3.2

 

Amendment to Articles of Incorporation (1)

 

 

 

3.3

 

By-laws of the Company (2)

 

 

 

3.4

 

August 2015 Amendment to Articles of Incorporation (3)

 

 

 

10.1

 

Services Agreement with Brian Thom (4)

 

 

 

10.2

 

Restricted Stock Unit Agreement - Brian Thom (4)

 

 

 

10.3

 

Services Agreement with Kristofer Heaton (5)

 

 

 

10.4

 

Restricted Stock Unit Agreement - Kristofer Heaton (5)

 

 

 

10.5

 

Amendment to Restricted Stock Unit Agreement – Brian Thom (6)

 

 

 

10.6

 

Restricted Stock Unit Agreement – Robert Denser (6)

 

 

 

10.7

 

Stock Purchase Agreement dated September 1, 2022 between the Company and White Lion Capital LLC (7)

 

 

 

10.8

 

Amendment to Stock Purchase Agreement dated January 25, 2023 (8)

 

 

 

31.1

 

Certification of Principal Executive Officer*

 

 

 

31.2

 

Certification of Principal Financial Officer*

 

 

 

32.1

 

Section 1350 Certificate by Principal Executive Officer*

 

 

 

32.2

 

Section 1350 Certificate by Principal Financial Officer*

 

 

 

99.1

 

2019 Employee Benefit and Consulting Services Compensation Plan (9)

 

 
28

Table of Contents

 

101.INS

 

Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).

 

 

 

101.SCH

 

Inline XBRL Taxonomy Extension Schema Document.

 

 

 

101.CAL

 

Inline XBRL Taxonomy Extension Calculation Linkbase Document.

 

 

 

101.DEF

 

Inline XBRL Taxonomy Extension Definition Linkbase Document.

 

 

 

101.LAB

 

Inline XBRL Taxonomy Extension Labels Linkbase Document.

 

 

 

101.PRE

 

Inline XBRL Taxonomy Extension Presentation Linkbase Document.

 

 

 

104

 

Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

___________

* Filed herewith.

 

(1)

Incorporated by reference to the Company’s Form 10-Q for the quarter ended September 30, 2014.

 

 

(2)

Incorporated by reference to the Company’s Form 10-Q for the quarter ended June 30, 2022.

 

 

(3)

Incorporated by reference to Form 8-K dated August 7, 2015 – date of earliest event filed on August 10, 2015.

 

 

(4)

Incorporated by reference to the Form 8-K dated December 2, 2020

 

 

(5)

Incorporated by reference to the Form 8-K dated January 11, 2021

 

 

(6)

Incorporated by reference to the Form 8-K dated June 23, 2022

 

 

(7)

Incorporated by reference to the Form 8-K dated September 1, 2022

 

 

(8)

Incorporated by reference to the Company’s Form 10-K for the year ended December 31, 2022

 

 

(9)

Incorporated by reference to Form S-8 dated November 1, 2019

 

 
29

Table of Contents

 

SIGNATURES

 

Pursuant to the requirements Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

UNITED HEALTH PRODUCTS, INC.

Dated: November 13, 2023

By:

/s/ Brian Thom

Brian Thom

Principal Executive Officer

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated:

 

Signatures

Title

Date

By:

/s/ Brian Thom

 

November 13, 2023

Brian Thom

Chief Executive Officer, Principal Executive Officer and Director

 

 

 

 

 

 

By:

/s/ Kristofer Heaton

Principal Financial Officer

November 13, 2023

Kristofer Heaton

 

 

 

 

 

 

 

By:

/s/ Robert Denser

Director

November 13, 2023

Robert Denser

 

 
30

 

nullnullnullnullv3.23.3
Cover - shares
9 Months Ended
Sep. 30, 2023
Nov. 09, 2023
Cover [Abstract]    
Entity Registrant Name UNITED HEALTH PRODUCTS, INC.  
Entity Central Index Key 0001096938  
Document Type 10-Q  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Entity Small Business true  
Entity Shell Company false  
Entity Emerging Growth Company false  
Entity Current Reporting Status Yes  
Document Period End Date Sep. 30, 2023  
Entity Filer Category Non-accelerated Filer  
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2023  
Entity Common Stock Shares Outstanding   242,983,222
Entity File Number 000-27781  
Entity Incorporation State Country Code NV  
Entity Tax Identification Number 84-1517723  
Entity Address Address Line 1 526 Commerce Circle  
Entity Address Address Line 2 Suite #120  
Entity Address City Or Town Mesquite  
Entity Address State Or Province NV  
Entity Address Postal Zip Code 89027  
City Area Code 475  
Local Phone Number 755-1005  
Document Quarterly Report true  
Document Transition Report false  
Entity Interactive Data Current Yes  
v3.23.3
Condensed Balance Sheets - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Current Assets    
Cash and cash equivalents $ 74,039 $ 13,377
Inventory 33,598 34,730
Prepaid and other current assets 30,436 22,932
Total current assets 138,073 71,039
Deferred offering costs 78,512 243,039
Operating lease right-of-use asset 82,813 0
Security deposit 2,850 0
Patents, net 33,412 36,450
TOTAL ASSETS 335,660 350,528
Current Liabilities    
Accounts payable and accrued expenses 1,115,192 1,255,232
Accrued liabilities - related parties 169,027 172,579
Accrued litigation settlement 50,000 300,000
Operating lease liability - current 27,790 0
Promissory note payable 0 9,136
Loans payable - related parties 0 4,000
Convertible notes payable, net of debt discount 204,746 196,177
Convertible notes payable - related party, net of debt discount 496,264 478,331
Total current liabilities 2,063,019 2,415,455
Operating lease liability - long-term 55,369 0
TOTAL LIABILITIES 2,118,388 2,415,455
Commitments and Contingencies 0 0
Stockholders' Deficit    
Common Stock - $0.001 par value, 300,000,000 shares Authorized, 242,153,222 and 230,871,034 shares issued and outstanding at September 30, 2023 and December 31, 2022 242,153 230,871
Subscription Receivable 0 (50,550)
Additional Paid-In Capital 74,202,411 71,830,695
Accumulated Deficit (76,227,292) (74,075,943)
Total Stockholders' Deficit (1,782,728) (2,064,927)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT 335,660 350,528
Series A Convertible Preferred Stock Member    
Stockholders' Deficit    
Series A Convertible Preferred Stock - $0.001 par value, 1,000,000 shares Authorized and 0 shares issued and outstanding $ 0 $ 0