10-Q 1 asdn-20210630.htm Astro Aerospace Ltd. - 1425203 - 2021
00020210001425203Q2--12-31false 0001425203 2021-01-01 2021-06-30 0001425203 2021-09-29 0001425203 2020-12-31 0001425203 2021-06-30 0001425203asdn:AdditionalPaidInCapitalSeriesAPreferredStockMember 2020-12-31 0001425203asdn:AdditionalPaidInCapitalSeriesAPreferredStockMember 2021-06-30 0001425203asdn:AdditionalPaidInCapitalSeriesBPreferredStockMember 2020-12-31 0001425203asdn:AdditionalPaidInCapitalSeriesBPreferredStockMember 2021-06-30 0001425203us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2020-12-31 0001425203us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember 2021-06-30 0001425203asdn:SeriesAConvertiblePreferredStockMember 2020-12-31 0001425203asdn:SeriesAConvertiblePreferredStockMember 2021-06-30 0001425203asdn:SeriesBConvertiblePreferredStockMember 2020-12-31 0001425203asdn:SeriesBConvertiblePreferredStockMember 2021-06-30 0001425203 2020-06-30 0001425203 2021-04-01 2021-06-30 0001425203 2020-04-01 2020-06-30 0001425203 2020-01-01 2020-06-30 0001425203us-gaap:SeriesAPreferredStockMember 2019-12-31 0001425203us-gaap:SeriesBPreferredStockMember 2019-12-31 0001425203us-gaap:CommonStockMember 2019-12-31 0001425203asdn:AdditionalPaidInCapitalSeriesAPreferredMember 2019-12-31 0001425203asdn:AdditionalPaidInCapitalSeriesBPreferredMember 2019-12-31 0001425203asdn:AdditionalPaidInCapitalCommonMember 2019-12-31 0001425203us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001425203us-gaap:RetainedEarningsMember 2019-12-31 0001425203 2019-12-31 0001425203us-gaap:CommonStockMember 2020-01-01 2020-03-31 0001425203asdn:AdditionalPaidInCapitalCommonMember 2020-01-01 2020-03-31 0001425203 2020-01-01 2020-03-31 0001425203us-gaap:SeriesAPreferredStockMember 2020-03-31 0001425203us-gaap:SeriesBPreferredStockMember 2020-03-31 0001425203us-gaap:CommonStockMember 2020-03-31 0001425203asdn:AdditionalPaidInCapitalSeriesAPreferredMember 2020-03-31 0001425203asdn:AdditionalPaidInCapitalSeriesBPreferredMember 2020-03-31 0001425203asdn:AdditionalPaidInCapitalCommonMember 2020-03-31 0001425203us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0001425203us-gaap:RetainedEarningsMember 2020-03-31 0001425203 2020-03-31 0001425203us-gaap:SeriesAPreferredStockMember 2020-06-30 0001425203us-gaap:SeriesBPreferredStockMember 2020-06-30 0001425203us-gaap:CommonStockMember 2020-06-30 0001425203asdn:AdditionalPaidInCapitalSeriesAPreferredMember 2020-06-30 0001425203asdn:AdditionalPaidInCapitalSeriesBPreferredMember 2020-06-30 0001425203asdn:AdditionalPaidInCapitalCommonMember 2020-06-30 0001425203us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0001425203us-gaap:RetainedEarningsMember 2020-06-30 0001425203us-gaap:RetainedEarningsMember 2020-12-31 0001425203us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0001425203asdn:AdditionalPaidInCapitalCommonMember 2020-12-31 0001425203asdn:AdditionalPaidInCapitalSeriesBPreferredMember 2020-12-31 0001425203asdn:AdditionalPaidInCapitalSeriesAPreferredMember 2020-12-31 0001425203us-gaap:CommonStockMember 2020-12-31 0001425203us-gaap:SeriesBPreferredStockMember 2020-12-31 0001425203us-gaap:SeriesAPreferredStockMember 2020-12-31 0001425203 2021-03-31 0001425203us-gaap:RetainedEarningsMember 2021-03-31 0001425203us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-31 0001425203asdn:AdditionalPaidInCapitalCommonMember 2021-03-31 0001425203asdn:AdditionalPaidInCapitalSeriesBPreferredMember 2021-03-31 0001425203asdn:AdditionalPaidInCapitalSeriesAPreferredMember 2021-03-31 0001425203us-gaap:CommonStockMember 2021-03-31 0001425203us-gaap:SeriesBPreferredStockMember 2021-03-31 0001425203us-gaap:SeriesAPreferredStockMember 2021-03-31 0001425203us-gaap:RetainedEarningsMember 2021-06-30 0001425203us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-06-30 0001425203asdn:AdditionalPaidInCapitalCommonMember 2021-06-30 0001425203asdn:AdditionalPaidInCapitalSeriesBPreferredMember 2021-06-30 0001425203asdn:AdditionalPaidInCapitalSeriesAPreferredMember 2021-06-30 0001425203us-gaap:CommonStockMember 2021-06-30 0001425203us-gaap:SeriesBPreferredStockMember 2021-06-30 0001425203us-gaap:SeriesAPreferredStockMember 2021-06-30 0001425203 2021-01-01 2021-03-31 0001425203asdn:AdditionalPaidInCapitalCommonMember 2021-01-01 2021-03-31 0001425203us-gaap:CommonStockMember 2021-01-01 2021-03-31 0001425203us-gaap:SeriesAPreferredStockMember 2020-01-01 2020-03-31 0001425203us-gaap:SeriesBPreferredStockMember 2020-01-01 2020-03-31 0001425203asdn:AdditionalPaidInCapitalSeriesAPreferredMember 2020-01-01 2020-03-31 0001425203asdn:AdditionalPaidInCapitalSeriesBPreferredMember 2020-01-01 2020-03-31 0001425203us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0001425203us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0001425203us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0001425203us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0001425203asdn:AdditionalPaidInCapitalCommonMember 2020-04-01 2020-06-30 0001425203asdn:AdditionalPaidInCapitalSeriesBPreferredMember 2020-04-01 2020-06-30 0001425203asdn:AdditionalPaidInCapitalSeriesAPreferredMember 2020-04-01 2020-06-30 0001425203us-gaap:CommonStockMember 2020-04-01 2020-06-30 0001425203us-gaap:SeriesBPreferredStockMember 2020-04-01 2020-06-30 0001425203us-gaap:SeriesAPreferredStockMember 2020-04-01 2020-06-30 0001425203us-gaap:SeriesAPreferredStockMember 2021-01-01 2021-03-31 0001425203us-gaap:SeriesBPreferredStockMember 2021-01-01 2021-03-31 0001425203asdn:AdditionalPaidInCapitalSeriesAPreferredMember 2021-01-01 2021-03-31 0001425203asdn:AdditionalPaidInCapitalSeriesBPreferredMember 2021-01-01 2021-03-31 0001425203us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-03-31 0001425203us-gaap:RetainedEarningsMember 2021-01-01 2021-03-31 0001425203us-gaap:RetainedEarningsMember 2021-04-01 2021-06-30 0001425203asdn:AdditionalPaidInCapitalSeriesBPreferredMember 2021-04-01 2021-06-30 0001425203asdn:AdditionalPaidInCapitalSeriesAPreferredMember 2021-04-01 2021-06-30 0001425203us-gaap:CommonStockMember 2021-04-01 2021-06-30 0001425203us-gaap:SeriesBPreferredStockMember 2021-04-01 2021-06-30 0001425203us-gaap:SeriesAPreferredStockMember 2021-04-01 2021-06-30 0001425203us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-06-30 0001425203asdn:AdditionalPaidInCapitalCommonMember 2021-04-01 2021-06-30 0001425203asdn:HorizonAircraftIncMember 2021-06-30 0001425203srt:ParentCompanyMemberus-gaap:NotesPayableOtherPayablesMember 2021-06-30 0001425203asdn:EquityPurchaseAndRegistrationRightsAgreementMember 2019-08-26 0001425203asdn:EquityPurchaseAgreementMemberus-gaap:CommonStockMember 2021-09-01 2021-09-29 0001425203asdn:EquityPurchaseAgreementMembersrt:MinimumMemberus-gaap:CommonStockMember 2021-09-29 0001425203asdn:EquityPurchaseAgreementMembersrt:MaximumMemberus-gaap:CommonStockMember 2021-09-29 0001425203us-gaap:SeniorSubordinatedNotesMember 2021-05-05 0001425203asdn:SeniorSubordinatedNotesFirstTrancheMember 2021-05-05 0001425203us-gaap:SeniorSubordinatedNotesMember 2021-06-30 0001425203asdn:HorizonAircraftIncMember 2021-05-28 0001425203asdn:HorizonAircraftIncMember 2021-05-01 2021-05-28 0001425203asdn:HorizonAircraftIncMemberus-gaap:SubsequentEventMember 2021-07-03 2021-09-27 0001425203asdn:SeriesBConvertiblePreferredStockMember 2020-01-01 2020-06-30 0001425203asdn:SeriesBConvertiblePreferredStockMember 2021-01-01 2021-06-30 0001425203asdn:SeriesBConvertiblePreferredStockMember 2020-04-01 2020-06-30 0001425203asdn:SeriesBConvertiblePreferredStockMember 2021-04-01 2021-06-30 0001425203us-gaap:FairValueInputsLevel1Member 2021-06-30 0001425203us-gaap:FairValueInputsLevel3Member 2021-06-30 0001425203us-gaap:FairValueInputsLevel1Member 2020-12-31 0001425203us-gaap:FairValueInputsLevel3Member 2020-12-31 0001425203us-gaap:SeniorSubordinatedNotesMember 2021-03-01 2021-03-05 0001425203us-gaap:SeniorSubordinatedNotesMember 2021-03-05 0001425203us-gaap:WarrantMemberus-gaap:SeniorSubordinatedNotesMember 2021-03-05 0001425203 2021-03-01 2021-03-05 0001425203us-gaap:SeniorSubordinatedNotesMember 2018-11-20 2018-11-21 0001425203us-gaap:SeniorSubordinatedNotesMember 2018-11-21 0001425203asdn:SeniorSubordinatedNotesFirstTrancheMember 2018-11-21 0001425203asdn:SeniorSubordinatedNotesFirstTrancheMember 2018-11-20 2018-11-21 0001425203asdn:SeniorSubordinatedNotesSecondTrancheMember 2019-02-12 0001425203asdn:SeniorSubordinatedNotesSecondTrancheMember 2019-02-11 2019-02-12 0001425203us-gaap:WarrantMemberasdn:SeniorSubordinatedNotesFirstTrancheMember 2018-11-21 0001425203asdn:SeniorSubordinatedNotesFirstTrancheMember 2021-01-01 2021-03-31 0001425203us-gaap:WarrantMemberasdn:SeniorSubordinatedNotesSecondTrancheMember 2019-02-12 0001425203asdn:SeniorSubordinatedNotesSecondTrancheMember 2020-01-01 2020-03-31 0001425203us-gaap:SeniorSubordinatedNotesMemberus-gaap:CommonStockMember 2020-01-01 2020-03-31 0001425203us-gaap:SeniorSubordinatedNotesMemberus-gaap:CommonStockMember 2021-01-01 2021-03-31 0001425203us-gaap:SeniorSubordinatedNotesMember 2021-03-31 0001425203us-gaap:SeniorSubordinatedNotesMember 2020-12-31 0001425203us-gaap:SeniorSubordinatedNotesMember 2019-12-02 0001425203us-gaap:SeniorSubordinatedNotesMember 2019-12-01 2019-12-02 0001425203us-gaap:SeniorSubordinatedNotesMember 2021-01-01 2021-06-30 0001425203us-gaap:SeniorSubordinatedNotesMember 2021-01-01 2021-03-31 0001425203us-gaap:SeniorSubordinatedNotesMemberus-gaap:CommonStockMember 2020-01-01 2020-01-29 0001425203us-gaap:SeniorSubordinatedNotesMember 2021-01-01 2021-01-15 0001425203asdn:SeniorSubordinatedNotesFirstTrancheMember 2021-01-01 2021-01-15 0001425203asdn:SeniorSubordinatedNotesSecondTrancheMember 2021-01-01 2021-01-15 0001425203asdn:SeniorSubordinatedNotesThirdTrancheMember 2021-01-01 2021-01-15 0001425203us-gaap:SeniorSubordinatedNotesMemberus-gaap:CommonStockMember 2021-01-01 2021-01-22 0001425203us-gaap:SeniorSubordinatedNotesMember 2021-01-22 0001425203us-gaap:SeniorSubordinatedNotesMemberus-gaap:CommonStockMember 2021-01-01 2021-01-25 0001425203us-gaap:SeniorSubordinatedNotesMember 2021-01-25 0001425203us-gaap:SeniorSubordinatedNotesMemberus-gaap:CommonStockMember 2021-03-01 2021-03-12 0001425203us-gaap:SeniorSubordinatedNotesMemberus-gaap:CommonStockMember 2021-02-01 2021-02-12 0001425203us-gaap:SeniorSubordinatedNotesMember 2021-02-12 0001425203us-gaap:SeniorSubordinatedNotesMemberus-gaap:CommonStockMember 2021-03-12 0001425203us-gaap:SeniorSubordinatedNotesMember 2021-03-12 0001425203asdn:SeniorSubordinatedNotesFirstTrancheMember 2021-03-05 0001425203us-gaap:SeniorSubordinatedNotesMember 2021-04-01 2021-06-30 0001425203 2019-12-01 2019-12-02 0001425203asdn:SeniorSubordinatedNotesFirstTrancheMember 2019-05-21 0001425203asdn:SeniorSubordinatedNotesFirstTrancheMember 2019-05-20 2019-05-21 0001425203asdn:SeniorSubordinatedNotesFirstTrancheMember 2020-06-30 0001425203asdn:FirstSeniorSubordinatedNotesMember 2020-06-02 0001425203asdn:FirstSeniorSubordinatedNotesMember 2020-06-30 0001425203asdn:FirstSeniorSubordinatedNotesMember 2019-12-02 0001425203asdn:FirstSeniorSubordinatedNotesMember 2020-06-29 2020-06-30 0001425203us-gaap:SeniorSubordinatedNotesMember 2019-09-11 0001425203srt:ParentCompanyMemberus-gaap:NotesPayableOtherPayablesMember 2018-03-14 0001425203srt:ParentCompanyMemberus-gaap:NotesPayableOtherPayablesMember 2018-03-01 2018-03-14 0001425203srt:ParentCompanyMemberus-gaap:NotesPayableOtherPayablesMember 2020-12-31 0001425203us-gaap:SeriesAPreferredStockMember 2015-01-01 2015-12-31 0001425203us-gaap:SeriesAPreferredStockMember 2015-12-31 0001425203asdn:MAABNonAffiliateMemberus-gaap:SeriesAPreferredStockMember 2021-01-01 2021-06-30 0001425203asdn:MAABNonAffiliateMemberus-gaap:SeriesAPreferredStockMember 2020-01-01 2020-12-31 0001425203us-gaap:SeriesBPreferredStockMember 2018-05-04 0001425203us-gaap:SeriesBPreferredStockMember 2018-05-03 2018-05-04 0001425203us-gaap:InvestorMemberus-gaap:SeriesBPreferredStockMember 2021-01-01 2021-01-26 0001425203us-gaap:InvestorMemberus-gaap:SeriesBPreferredStockMemberus-gaap:CommonStockMember 2021-01-01 2021-01-26 0001425203asdn:ConfidaAerospaceLtdMemberus-gaap:SeriesBPreferredStockMember 2018-05-01 2018-05-08 0001425203us-gaap:SeriesAPreferredStockMember 2016-01-01 2016-01-31 0001425203us-gaap:WarrantMember 2019-12-31 0001425203us-gaap:WarrantMember 2020-01-01 2020-06-30 0001425203us-gaap:WarrantMember 2020-12-31 0001425203us-gaap:WarrantMember 2021-06-30 0001425203srt:MaximumMemberus-gaap:WarrantMember 2019-12-31 0001425203srt:MaximumMemberus-gaap:WarrantMember 2020-06-30 0001425203srt:MaximumMemberus-gaap:WarrantMember 2020-12-31 0001425203us-gaap:WarrantMember 2021-01-01 2021-06-30 0001425203srt:MinimumMemberus-gaap:WarrantMember 2019-12-31 0001425203srt:MinimumMemberus-gaap:WarrantMember 2020-06-30 0001425203us-gaap:WarrantMemberasdn:SeniorSubordinatedNotesFirstTrancheMember 2018-11-20 2018-11-21 0001425203us-gaap:WarrantMemberasdn:SeniorSubordinatedNotesSecondTrancheMember 2019-02-11 2019-02-12 0001425203us-gaap:WarrantMemberasdn:SeniorSubordinatedNotesFirstTrancheMember 2021-03-05 0001425203us-gaap:WarrantMemberasdn:SeniorSubordinatedNotesFirstTrancheMember 2021-03-01 2021-03-05 0001425203us-gaap:WarrantMember 2020-06-30 0001425203srt:MinimumMemberus-gaap:WarrantMember 2020-12-31 0001425203srt:MinimumMemberus-gaap:WarrantMember 2021-06-30 0001425203srt:MaximumMemberus-gaap:WarrantMember 2021-06-30 0001425203asdn:EquityPurchaseAgreementMember 2020-01-01 2020-12-31 0001425203asdn:EquityPurchaseAgreementMembersrt:MinimumMember 2021-06-30 0001425203asdn:EquityPurchaseAgreementMembersrt:MaximumMember 2021-06-30 0001425203asdn:EquityPurchaseAgreementMember 2021-01-01 2021-06-30 0001425203asdn:EquityPurchaseAndRegistrationRightsAgreementMember 2019-08-25 2019-08-26 0001425203asdn:EquityPurchaseAgreementMembersrt:MinimumMember 2020-12-31 0001425203asdn:EquityPurchaseAgreementMembersrt:MaximumMember 2020-12-31 0001425203us-gaap:StockOptionMemberasdn:TwoThousandFourteenStockAwardsPlanMember 2014-11-30 0001425203us-gaap:StockOptionMemberasdn:TwoThousandFourteenStockAwardsPlanMember 2014-11-01 2014-11-30 0001425203us-gaap:StockOptionMemberasdn:TwoThousandFourteenStockAwardsPlanMember 2018-03-13 2018-03-14 0001425203us-gaap:StockOptionMemberus-gaap:ConvertibleNotesPayableMemberasdn:TwoThousandFourteenStockAwardsPlanMember 2018-03-13 2018-03-14 0001425203asdn:SbcInvestmentsLtdMemberasdn:BusinessAdvisoryAgreementMember 2021-02-10 0001425203asdn:SbcInvestmentsLtdMemberus-gaap:SeriesBPreferredStockMemberasdn:BusinessAdvisoryAgreementMember 2021-02-01 2021-02-10 0001425203asdn:KtapLlcMemberus-gaap:CommonStockMemberasdn:BusinessAdvisoryAgreementMember 2021-02-01 2021-02-10 0001425203asdn:KtapLlcMemberasdn:BusinessAdvisoryAgreementMember 2021-02-10 0001425203asdn:KingswoodCapitalMarketsMemberasdn:PlacementAgentAgreementMember 2021-02-08 0001425203asdn:WestworldCapitalMemberus-gaap:SubsequentEventMember 2021-06-25 2021-07-01 0001425203asdn:WestworldCapitalMemberus-gaap:SubsequentEventMember 2021-07-01 0001425203asdn:WestworldCapitalMemberus-gaap:SubsequentEventMember 2021-06-25 2021-07-02 0001425203asdn:WestworldCapitalMemberus-gaap:SubsequentEventMember 2021-07-02 0001425203asdn:LallandePoydrasMemberus-gaap:SubsequentEventMemberasdn:SecuritiesPurchaseAgreementMember 2021-07-03 2021-07-08 0001425203asdn:LallandePoydrasMemberus-gaap:SubsequentEventMemberasdn:SecuritiesPurchaseAgreementMember 2021-07-08 0001425203asdn:TradigitalMarketingGroupMemberus-gaap:SubsequentEventMemberasdn:ServicesAgreementMember 2021-08-01 2021-08-03 0001425203asdn:TradigitalMarketingGroupMemberus-gaap:SubsequentEventMemberasdn:ServicesAgreementMember 2021-08-03 0001425203asdn:AnargyrosArtyMandalasMemberus-gaap:SubsequentEventMember 2021-08-01 2021-08-04 0001425203asdn:DavidSmulowitzMemberus-gaap:SubsequentEventMember 2021-08-01 2021-08-04 0001425203asdn:AnargyrosArtyMandalasMemberus-gaap:SubsequentEventMember 2021-08-04 0001425203asdn:DavidSmulowitzMemberus-gaap:SubsequentEventMember 2021-08-04 0001425203asdn:WestworldCapitalMemberus-gaap:SubsequentEventMember 2021-08-01 2021-08-17 0001425203asdn:WestworldCapitalMemberus-gaap:SubsequentEventMember 2021-08-17 0001425203asdn:HorizonAircraftIncMemberus-gaap:SubsequentEventMemberasdn:SbcInvestmentsMember 2021-08-01 2021-08-19 0001425203asdn:HorizonAircraftIncMemberus-gaap:SubsequentEventMemberasdn:SbcInvestmentsMember 2021-08-19 0001425203us-gaap:SubsequentEventMember 2021-08-01 2021-08-25 0001425203us-gaap:SubsequentEventMember 2021-08-25 0001425203asdn:WestworldCapitalMemberus-gaap:SubsequentEventMember 2021-08-01 2021-08-31 0001425203asdn:WestworldCapitalMemberus-gaap:SubsequentEventMember 2021-08-31 0001425203asdn:WestworldCapitalMemberus-gaap:SubsequentEventMember 2021-09-01 2021-09-13 0001425203asdn:WestworldCapitalMemberus-gaap:SubsequentEventMember 2021-09-13 xbrli:pure xbrli:shares iso4217:USD iso4217:USDxbrli:shares

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

[x]    Quarterly Report Pursuant to Section 13 or 15(d) Securities Exchange Act of 1934 for Quarterly Period Ended June 30, 2021

 

-OR-

 

[ ]    Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transaction period from _________ to________

 

Commission File Number 333-149000

 

ASTRO AEROSPACE LTD.

(Exact name of registrant as specified in its charter)

 

Nevada

 

98-0557091

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification)

 

320 W. Main Street, Lewisville, TX 75057

(Address of principal executive offices, including zip code)

 

(469) 702-8344

(Registrant's telephone number, including area code)

 

Indicate by check mark whether the issuer (1) 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 [x]    No [ ]

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [x]    No [ ]

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerate filer, or a small reporting company (as defined by Rule 12b-2 of the Exchange Act):

 

Large accelerated filer [ ]

 

Non-accelerated filer             [ ]

Accelerated filer          [ ]

 

Smaller reporting company   [x]

   

Emerging growth company   [ ]

 

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

 

The number of outstanding shares of the registrant's common stock as of September 29, 2021: 16,590,767

 


 
ASTRO AEROSPACE LTD.
FORM 10-Q
 
INDEX
 
Item 1.  Condensed Consolidated Financial Statements
   
    
 
3
 
    
 
4
 
    
 
5
 
    
 
6
 
    
 
9
 
    
 
11
 
    
 
28
 
 
34
 
 
34
 
 
 
 
36
 
 
36
 
 
36
 
 
36
 
 
36
 
 
36
 
 
36
 
    
 
37
 
 

2

 
Astro Aerospace Ltd.  and Subsidiary
Condensed Consolidated Balance Sheets
 
     
June 30,
     
December 31,
 
     
2021
     
2020
 
     

(unaudited)

         
Assets
               
Cash
  $ 38,775     $ 38,517  
Other Receivables
    62,178       75,781  
Prepaid Expense
    20,967       -  
  Total Current Assets
    121,920       114,298  
Property and Equipment
    61,484       -  
Acquired In-Process Research and Development
    3,040,000       871,000  
Non-Compete Agreements
    433,800       -  
Deposits
    97,107       18,125  

Investment in SPAC

    110,000       -  
  Total Assets
  $ 3,864,311     $ 1,003,423  
Liabilities and Stockholders' Equity (Deficit)
               
Current Liabilities
               
Accounts Payable and Accrued Liabilities
  $ 603,530     $ 376,392  
8% Senior Secured Convertible Promissory Note
    -       688,166  
8% Senior Secured Convertible Promissory Note issued December
  2, 2019
    -       121,691  
8% Senior Secured Convertible Promissory Note issued March 5,
  2021, net of discount of $433,468
    816,532       -  
    Total Current Liabilities
    1,420,062       1,186,249  
Long Term Liabilities
               
Promissory Note from MAAB
    1,476,664       1,209,350  

Canadian Emergency Business Account Loan Payable

    49,677       -  
    Total Liabilities
    2,946,403       2,395,599  

Commitments and Contingencies (Notes 14 and 16)

    -          
Stockholders' Equity (Deficit)
               
Series A Convertible Preferred Stock, $0.0001 par value, 50,000,000
               
     Shares Authorized, 1,562,500 shares Issued and Outstanding 
               
     at June 30, 2021 and December 31, 2020
    156       156  
Series B Convertible Preferred Stock, $0.001 par value, 10,000
               
     Shares Authorized, 10,000 Shares Issued and Outstanding
               
     at June 30, 2021 and December 31, 2020
    1       10  
Common Stock, $0.001 par value, 250,000,000 Shares
               
     Authorized, 13,458,380 and 5,724,312 Shares Issued and
     Outstanding at June 30, 2021 and December 31, 2020
 
13,458
     
5,724
 
Additional Paid-in Capital:
             
     Series A Convertible Preferred Stock
 
124,844
     
124,844
 
     Series B Convertible Preferred Stock
 
357,810
     
7,156,204
 
     Common Stock
 
28,513,636
     
2,899,026
 
Accumulated Other Comprehensive Loss
 
(124,595
)
   
(75,419
)
Accumulated Deficit
 
(27,967,402
)    
(11,502,721
)
  Total Stockholders' Equity (Deficit)
 
917,908
     
(1,392,176
)
  Total Liabilities and Stockholders' Equity (Deficit)
$
3,864,311    
$
1,003,423  
 
The accompanying Notes are an integral part of the condensed consolidated financial statements
 

3

 
 

Astro Aerospace Ltd. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

 

 

   

Three Months Ended June 30,

     

Six Months Ended June 30,

 
     

2021

     

2020

     

2021

     

2020

 

Revenue

  $ -     $ -     $ -     $ -  
                                 

Operating Expenses:

                               
                                 

Sales and Marketing

    466,003       18,220       1,030,043       100,645  

General and Administrative

    219,446       65,865       410,025       134,107  

Research and Development

    72,885       40,764       120,276       70,532  

Impairment Expense

    14,011,720       -       14,011,720       -  

Total Operating Expenses

    14,770,054       124,849       15,572,064       305,284  

Loss from Operations

    (14,770,054 )     (124,849 )     (15,572,064 )     (305,284 )
                                 

Other Expense

                               

Interest Expense, Net

    638,261       211,675       881,761       497,234  

Bank and Financing Fees

    9,201       4,183       10,856       4,319  

Total Other Expense

    647,462       215,858       892,617       501,553  
                                 

Loss Before Income Tax

    (15,417,516 )     (340,707 )     (16,464,681 )     (806,837 )
                                 

Income Tax

    -       -       -       -  
                                 

Net Loss

    (15,417,516 )     (340,707 )     (16,464,681 )     (806,837 )

Less: Preferred Stock Dividends

    2,500       2,500       5,000       5,000  

Net Loss Available to Common

Stockholders

  $ (15,420,016 )   $ (343,207 )   $ (16,469,681 )   $ (811,837 )
                                 

Net Loss per Common Share:

                               

Basic

  $ (1.65 )   $ (0.07 )   $ (1.85 )   $ (0.16 )

Diluted

  $ (1.65 )   $ (0.07 )   $ (1.85 )   $ (0.16 )

Weighted Average Number of Common

                               

Shares Outstanding - Basic

    9,321,995       5,207,026       8,893,718       5,125,482  

Weighted Average Number of Common

                               

Shares Outstanding - Diluted

    9,321,995       5,207,026       8,893,718       5,125,482  

 

The accompanying Notes are an integral part of the condensed consolidated financial statements

 

4

 
 

Astro Aerospace Ltd. and Subsidiaries

Condensed Consolidated Statements of Other Comprehensive Loss

(Unaudited)

 

 

    Three Months Ended June 30,       Six Months Ended June 30,  
     

2021

     

2020

     

2021

     

2020

 
                                 

Net Loss

  $ (15,417,516 )   $ (340,707 )   $ (16,464,681 )   $ (806,837 )

Foreign Currency Translation

(Loss) Gain

    (16,281 )     (63,785 )     (49,176 )     74,880  

Comprehensive Loss

  $ (15,433,797 )   $ (404,492 )   $ (16,513,857 )   $ (731,957 )

 

The accompanying Notes are an integral part of the condensed consolidated financial statements

 
 

5

 
Astro Aerospace Ltd. and Subsidiaries
Condensed Consolidated Statements of Stockholders’ Equity (Deficit)
Three and Six Months Ended June 30, 2021 and 2020
 
      Series A
Preferred Stock
      Series B
Preferred Stock
     
Common Stock
     
Additional
Paid – In
Capital
Series A
     
Additional
Paid – In
Capital Series
B
     
Additional
Paid – In
Capital
     
Accumulated
Other
Comprehensive
     
Accumulated
     
Total
Stockholders’
Equity
 
     
Shares
     
Amount
     
Shares
     
Amount
     
Shares
     
Amount
     
Preferred
     
Preferred
     
Common
     
(Loss) Income
     
Deficit
     
 (Deficit)
 
Balance at December 31, 2019
    1,562,500     $ 156       10,000     $ 10       4,880,115     $ 4,880     $ 124,844     $ 7,156,204     $ 2,263,958     $ (20,098 )   $ (10,316,875 )   $ (786,921 )
Partial Conversions
  of 8% Senior
  Secured
  Convertible
  Promissory Notes
  (Unaudited)
    -       -       -       -       215,285       215       -       -       166,509       -       -       166,724  
Puts of Common
Stock Under the
Equity Purchase
Agreement, net of
issuance costs of
$9,000
(Unaudited)
    -       -       -       -       36,667       37       -       -       41,844       -       -       41,881  
Foreign Currency
  Translation
  (Unaudited)
    -       -       -       -       -       -       -       -       -       138,665       -       138,665  
Net Loss
  (Unaudited)
    -       -       -       -       -       -       -       -       -       -       (466,130 )     (466,130 )
Balance at March 31
  31, 2020
  (Unaudited)
    1,562,500     $ 156       10,000     $ 10       5,132,067     $ 5,132     $ 124,844     $ 7,156,204     $ 2,472,311     $ 118,567     $ (10,783,005 )   $ (905,781 )
Partial Conversions
  of 8% Senior
  Secured
  Convertible
  Promissory Notes
  (Unaudited)
    -       -       -       -       163,739       164       -       -       106,773       -       -       106,937  
Puts of Common
Stock Under the
  Equity Purchase
Agreement, net of
issuance costs of
$9,000
(Unaudited)
    -       -       -       -       83,333       83                       66,112                      

66,195

 
Foreign Currency
  Translation Loss
  (Unaudited)
    -       -       -       -       -       -       -       -       -       (63,785 )     -       (63,785 )
Net Loss
  (Unaudited)
    -       -       -       -       -       -       -       -       -       -       (340,707 )   0 (340,707 )
Balance at June 30,
  2020 (Unaudited)
    1,562,500     $ 156       10,000     $ 10       5,379,139     $ 5,379     $ 124,844     $ 7,156,204     $ 2,645,196     $ 54,782     $ (11,123,712 )   $ (1,137,141 )
 

6

 
Astro Aerospace Ltd. and Subsidiaries
Condensed Consolidated Statements of Stockholders’ Equity (Deficit)
Three and Six Months Ended June 30, 2021 and 2020 (continued)
 
      Series A
Preferred Stock
      Series B
Preferred Stock
     
Common Stock
     
Additional
Paid – In
Capital
Series A
     
Additional
Paid – In
Capital Series
B
     
Additional
Paid – In
Capital
     
Accumulated
Other
Comprehensive
     
Accumulated
     
Total
Stockholders’
Equity
 
     
Shares
     
Amount
     
Shares
     
Amount
     
Shares
     
Amount
     
Preferred
     
Preferred
     
Common
     
Income (Loss)
     
Deficit
     
(Deficit)
 
Balance at
  December 31,
  2020
    1,562,500     $ 156       10,000     $ 10       5,724,312     $ 5,724     $ 124,844     $ 7,156,204     $ 2,899,026     $ (75,419 )   $ (11,502,721 )   $ (1,392,176 )
Issuance of
Common Stock for
Services
(Unaudited)
    -       -       -       -       14,493       15       -       -       43,681       -       -       43,696  
Partial Conversion
  of 8% Senior
  Secured
  Convertible
  Promissory Notes
  (Unaudited)
    -       -       -       -       1,745,342       1,745       -       -       1,003,982       -       -       1,005,727  
Puts of Common
  Stock Under the
  Equity Purchase
  Agreement, net of
  issuance costs of
  $750
  (Unaudited)
    -       -       -       -       120,000       120       -       -       314,296       -       -       314,416  
Partial Conversion
  of the Series B
  Convertible
  Preferred  Stock(Unaudited)
    -       -       (9,500 )     (9 )     844,233       844       -       (6,798,394 )     6,797,559       -       -       -  
Fair Value of
  Warrants Issued
  with 8% Senior
  Secured
  Convertible
  Promissory Note
  Issued March 5,
  2021 (Unaudited)
    -       -       -       -       -       -       -       -       369,671       -       -       369,671  
Fair Value of
  Beneficial
  Conversion
  Feature of the 8%
  Senior Secured
  Convertible
  Promissory Note,
  Issued March 5,
  2021 (Unaudited)
    -       -       -       -       -       -       -       -       780,128       -       -       780,128  

Foreign Currency 
  Translation Loss 
  (Unaudited)

    -       -       -       -       -       -       -       -       -       (32,895 )     -       (32,895 )
Net Loss
  (Unaudited)
    -       -       -       -       -       -       -       -       -       -       (1,047,165 )     (1,047,165 )
Balance at March
  31, 2021
  (Unaudited)
    1,562,500     $ 156       500     $ 1       8,448,380     $ 8,448     $ 124,844     $ 357,810     $ 12,208,343     $ (108,314 )   $ (12,549,886 )   $ 41,402  
 

7

 
Astro Aerospace Ltd. and Subsidiaries
Condensed Consolidated Statements of Stockholders’ Equity (Deficit)
Three and Six Months Ended June 30, 2021 and 2020 (continued)
*
     
Series A
Preferred Stock
     
Series B
Preferred Stock
     
Common Stock
   
Additional
Paid – In
Capital
Series A
   
Additional
Paid – In
Capital Series
B
   
Additional
Paid – In
Capital
   
Accumulated
Other
Comprehensive
     
Accumulate
   
Total
Stockholders’
Equity
   
     
Shares
     
Amount
     
Shares
     
Amount
     
Shares
     
Amount
   
Preferred
   
Preferred
   
Common
   
Income (Loss)
     
Deficit
   
(Deficit)
   

Balance at March 31, 2021:

   

1,562,500

    $

156

     

500

    $ 1.00      

8,448,380

    $

8,448

  $

124,844

   

357,810

  $

12,208,343

  $ (108,314 )   $ (12,549,886 ) $

41,402

   
                                                                                         
Issuance of
Common Stock for
the Acquisition of
Horizon Aircraft,
Inc. (Unaudited)
    -       -       -       -       5,000,000       5,000     -     -     16,222,753     -       -     16,227,753    
Issuance of
Common Stock for
Services
  (Unaudited)
    -       -       -       -       10,000       10     -     -     26,290     -       -     26,300    
Deposit for
Common Stock
(Unaudited)
    -       -       -       -       -       -     -     -     56,250     -       -     56,250    
Foreign Currency
  Translation Loss
  (Unaudited)
    -       -       -       -       -       -     -     -     -     (16,281 )     -     (16,281 )  
Adjustment from
Horizon Aircraft,
Inc. Acquisition
(Unaudited)
    -       -       -       -       -       -     -     -     -     -       (51,223 )   (51,223 )  
Net Loss
  (Unaudited)
    -       -       -       -       -       -     -     -     -     -       (15,417,516 )   (15,417,516 )  
Balance at June 30,
  2021 (Unaudited)
    1,562,500     $ 156       500     $ 1       13,458,380     $ 13,458   $ 124,844   $ 357,810   $ 28,513,636   $ (124,595 )   $ (27,967,402 ) $ 917,908    
 
*Shares have been restated for a 1 for 15 reverse stock split and adjusted for fractional shares
 
The accompanying Notes are an integral part of the condensed consolidated financial statements
 

8

 
Astro Aerospace Ltd. and Subsidiary
Condensed Consolidated Statements of Cash Flow
(Unaudited)
 
      Six Months Ended June 30,  
     
2021
     
2020
 
                 
Cash Flow from Operating Activities:
               
Net Loss
  $ (16,464,681 )   $ (806,837 )
                 
Adjustments to Reconcile Net Loss to Net Cash
  Used In Operating Activities:
               
    Amortization of Note Discounts
    741,331       414,545  
    Issuance of Common Stock for Services
    69,996       -  
    Impairment Expense
    14,011,720       -  
                 
Changes in Operating Assets and Liabilities:
               
    Other Receivables
    33,389       24,957  
    Prepaids
    -       623  
    Deposits
    (188,982 )     3,822  
    Accounts Payable and Accrued Liabilities
    254,977       64,513  
                 
Net Cash Used In Operating Activities
    (1,542,250 )     (298,377 )
                 
Cash Flow from Investing Activities:
               
   Purchase of Property and Equipment
    (28,192 )     -  

Cash acquired in Acquisition

   

131,896

     

-

 
Net Cash Provided by Investing Activities
    103,704       -  
 
               
Cash Flow from Financing Activities:
               
Promissory Note from MAAB
    267,314