10-Q 1 form10-q.htm
false Q3 --12-31 0001569340 P5Y P5Y 0001569340 2023-01-01 2023-09-30 0001569340 2023-11-06 0001569340 2023-09-30 0001569340 2022-12-31 0001569340 us-gaap:NonrelatedPartyMember 2023-09-30 0001569340 us-gaap:NonrelatedPartyMember 2022-12-31 0001569340 us-gaap:RelatedPartyMember 2023-09-30 0001569340 us-gaap:RelatedPartyMember 2022-12-31 0001569340 CLCS:SeriesAConvertiblePreferredStockMember 2023-09-30 0001569340 CLCS:SeriesAConvertiblePreferredStockMember 2022-12-31 0001569340 CLCS:SeriesBConvertiblePreferredStockMember 2023-09-30 0001569340 CLCS:SeriesBConvertiblePreferredStockMember 2022-12-31 0001569340 CLCS:SeriesCConvertiblePreferredStockMember 2023-09-30 0001569340 CLCS:SeriesCConvertiblePreferredStockMember 2022-12-31 0001569340 CLCS:NotesPayableMember us-gaap:NonrelatedPartyMember 2023-09-30 0001569340 CLCS:NotesPayableMember us-gaap:NonrelatedPartyMember 2022-12-31 0001569340 us-gaap:ConvertibleNotesPayableMember us-gaap:NonrelatedPartyMember 2023-09-30 0001569340 us-gaap:ConvertibleNotesPayableMember us-gaap:NonrelatedPartyMember 2022-12-31 0001569340 us-gaap:ConvertibleNotesPayableMember us-gaap:RelatedPartyMember 2023-09-30 0001569340 us-gaap:ConvertibleNotesPayableMember us-gaap:RelatedPartyMember 2022-12-31 0001569340 2023-07-01 2023-09-30 0001569340 2022-07-01 2022-09-30 0001569340 2022-01-01 2022-09-30 0001569340 us-gaap:NonrelatedPartyMember 2023-07-01 2023-09-30 0001569340 us-gaap:NonrelatedPartyMember 2022-07-01 2022-09-30 0001569340 us-gaap:NonrelatedPartyMember 2023-01-01 2023-09-30 0001569340 us-gaap:NonrelatedPartyMember 2022-01-01 2022-09-30 0001569340 us-gaap:RelatedPartyMember 2023-07-01 2023-09-30 0001569340 us-gaap:RelatedPartyMember 2022-07-01 2022-09-30 0001569340 us-gaap:RelatedPartyMember 2023-01-01 2023-09-30 0001569340 us-gaap:RelatedPartyMember 2022-01-01 2022-09-30 0001569340 CLCS:SeriesAConvertiblePreferredStockMember us-gaap:PreferredStockMember 2022-12-31 0001569340 CLCS:SeriesCConvertiblePreferredStockMember us-gaap:PreferredStockMember 2022-12-31 0001569340 us-gaap:CommonStockMember 2022-12-31 0001569340 us-gaap:AdditionalPaidInCapitalMember 2022-12-31 0001569340 us-gaap:RetainedEarningsMember 2022-12-31 0001569340 CLCS:SeriesAConvertiblePreferredStockMember us-gaap:PreferredStockMember 2023-01-01 2023-03-31 0001569340 CLCS:SeriesCConvertiblePreferredStockMember us-gaap:PreferredStockMember 2023-01-01 2023-03-31 0001569340 us-gaap:CommonStockMember 2023-01-01 2023-03-31 0001569340 us-gaap:AdditionalPaidInCapitalMember 2023-01-01 2023-03-31 0001569340 us-gaap:RetainedEarningsMember 2023-01-01 2023-03-31 0001569340 2023-01-01 2023-03-31 0001569340 CLCS:SeriesAConvertiblePreferredStockMember us-gaap:PreferredStockMember 2023-03-31 0001569340 CLCS:SeriesCConvertiblePreferredStockMember us-gaap:PreferredStockMember 2023-03-31 0001569340 us-gaap:CommonStockMember 2023-03-31 0001569340 us-gaap:AdditionalPaidInCapitalMember 2023-03-31 0001569340 us-gaap:RetainedEarningsMember 2023-03-31 0001569340 2023-03-31 0001569340 CLCS:SeriesAConvertiblePreferredStockMember us-gaap:PreferredStockMember 2023-04-01 2023-06-30 0001569340 CLCS:SeriesCConvertiblePreferredStockMember us-gaap:PreferredStockMember 2023-04-01 2023-06-30 0001569340 us-gaap:CommonStockMember 2023-04-01 2023-06-30 0001569340 us-gaap:AdditionalPaidInCapitalMember 2023-04-01 2023-06-30 0001569340 us-gaap:RetainedEarningsMember 2023-04-01 2023-06-30 0001569340 2023-04-01 2023-06-30 0001569340 CLCS:SeriesAConvertiblePreferredStockMember us-gaap:PreferredStockMember 2023-06-30 0001569340 CLCS:SeriesCConvertiblePreferredStockMember us-gaap:PreferredStockMember 2023-06-30 0001569340 us-gaap:CommonStockMember 2023-06-30 0001569340 us-gaap:AdditionalPaidInCapitalMember 2023-06-30 0001569340 us-gaap:RetainedEarningsMember 2023-06-30 0001569340 2023-06-30 0001569340 CLCS:SeriesAConvertiblePreferredStockMember us-gaap:PreferredStockMember 2023-07-01 2023-09-30 0001569340 CLCS:SeriesCConvertiblePreferredStockMember us-gaap:PreferredStockMember 2023-07-01 2023-09-30 0001569340 us-gaap:CommonStockMember 2023-07-01 2023-09-30 0001569340 us-gaap:AdditionalPaidInCapitalMember 2023-07-01 2023-09-30 0001569340 us-gaap:RetainedEarningsMember 2023-07-01 2023-09-30 0001569340 CLCS:SeriesAConvertiblePreferredStockMember us-gaap:PreferredStockMember 2023-09-30 0001569340 CLCS:SeriesCConvertiblePreferredStockMember us-gaap:PreferredStockMember 2023-09-30 0001569340 us-gaap:CommonStockMember 2023-09-30 0001569340 us-gaap:AdditionalPaidInCapitalMember 2023-09-30 0001569340 us-gaap:RetainedEarningsMember 2023-09-30 0001569340 CLCS:SeriesAConvertiblePreferredStockMember us-gaap:PreferredStockMember 2021-12-31 0001569340 CLCS:SeriesCConvertiblePreferredStockMember us-gaap:PreferredStockMember 2021-12-31 0001569340 us-gaap:CommonStockMember 2021-12-31 0001569340 us-gaap:AdditionalPaidInCapitalMember 2021-12-31 0001569340 us-gaap:RetainedEarningsMember 2021-12-31 0001569340 2021-12-31 0001569340 CLCS:SeriesAConvertiblePreferredStockMember us-gaap:PreferredStockMember 2022-01-01 2022-03-31 0001569340 CLCS:SeriesCConvertiblePreferredStockMember us-gaap:PreferredStockMember 2022-01-01 2022-03-31 0001569340 us-gaap:CommonStockMember 2022-01-01 2022-03-31 0001569340 us-gaap:AdditionalPaidInCapitalMember 2022-01-01 2022-03-31 0001569340 us-gaap:RetainedEarningsMember 2022-01-01 2022-03-31 0001569340 2022-01-01 2022-03-31 0001569340 CLCS:SeriesAConvertiblePreferredStockMember us-gaap:PreferredStockMember 2022-03-31 0001569340 CLCS:SeriesCConvertiblePreferredStockMember us-gaap:PreferredStockMember 2022-03-31 0001569340 us-gaap:CommonStockMember 2022-03-31 0001569340 us-gaap:AdditionalPaidInCapitalMember 2022-03-31 0001569340 us-gaap:RetainedEarningsMember 2022-03-31 0001569340 2022-03-31 0001569340 CLCS:SeriesAConvertiblePreferredStockMember us-gaap:PreferredStockMember 2022-04-01 2022-06-30 0001569340 CLCS:SeriesCConvertiblePreferredStockMember us-gaap:PreferredStockMember 2022-04-01 2022-06-30 0001569340 us-gaap:CommonStockMember 2022-04-01 2022-06-30 0001569340 us-gaap:AdditionalPaidInCapitalMember 2022-04-01 2022-06-30 0001569340 us-gaap:RetainedEarningsMember 2022-04-01 2022-06-30 0001569340 2022-04-01 2022-06-30 0001569340 CLCS:SeriesAConvertiblePreferredStockMember us-gaap:PreferredStockMember 2022-06-30 0001569340 CLCS:SeriesCConvertiblePreferredStockMember us-gaap:PreferredStockMember 2022-06-30 0001569340 us-gaap:CommonStockMember 2022-06-30 0001569340 us-gaap:AdditionalPaidInCapitalMember 2022-06-30 0001569340 us-gaap:RetainedEarningsMember 2022-06-30 0001569340 2022-06-30 0001569340 CLCS:SeriesAConvertiblePreferredStockMember us-gaap:PreferredStockMember 2022-07-01 2022-09-30 0001569340 CLCS:SeriesCConvertiblePreferredStockMember us-gaap:PreferredStockMember 2022-07-01 2022-09-30 0001569340 us-gaap:CommonStockMember 2022-07-01 2022-09-30 0001569340 us-gaap:AdditionalPaidInCapitalMember 2022-07-01 2022-09-30 0001569340 us-gaap:RetainedEarningsMember 2022-07-01 2022-09-30 0001569340 CLCS:SeriesAConvertiblePreferredStockMember us-gaap:PreferredStockMember 2022-09-30 0001569340 CLCS:SeriesCConvertiblePreferredStockMember us-gaap:PreferredStockMember 2022-09-30 0001569340 us-gaap:CommonStockMember 2022-09-30 0001569340 us-gaap:AdditionalPaidInCapitalMember 2022-09-30 0001569340 us-gaap:RetainedEarningsMember 2022-09-30 0001569340 2022-09-30 0001569340 us-gaap:OptionMember 2023-01-01 2023-09-30 0001569340 us-gaap:OptionMember 2022-01-01 2022-09-30 0001569340 us-gaap:WarrantMember 2023-01-01 2023-09-30 0001569340 us-gaap:WarrantMember 2022-01-01 2022-09-30 0001569340 us-gaap:CommonStockMember 2023-01-01 2023-09-30 0001569340 us-gaap:CommonStockMember 2022-01-01 2022-09-30 0001569340 us-gaap:ConvertibleNotesPayableMember CLCS:CurrentLiabilitiesMember 2023-09-30 0001569340 us-gaap:ConvertibleNotesPayableMember CLCS:CurrentLiabilitiesMember us-gaap:SubsequentEventMember 2023-11-14 0001569340 us-gaap:SubsequentEventMember 2023-10-01 2023-10-31 0001569340 CLCS:OptionPricingMethodMember 2023-07-01 2023-07-01 0001569340 CLCS:OptionPricingMethodMember 2022-01-01 2022-12-31 0001569340 us-gaap:MeasurementInputDiscountForLackOfMarketabilityMember 2023-07-01 0001569340 us-gaap:MeasurementInputDiscountForLackOfMarketabilityMember 2022-12-31 0001569340 us-gaap:MeasurementInputOptionVolatilityMember 2023-07-01 0001569340 us-gaap:MeasurementInputOptionVolatilityMember 2022-12-31 0001569340 us-gaap:OptionMember 2023-01-01 2023-09-30 0001569340 us-gaap:OptionMember 2022-01-01 2022-09-30 0001569340 us-gaap:WarrantMember 2023-01-01 2023-09-30 0001569340 us-gaap:WarrantMember 2022-01-01 2022-09-30 0001569340 us-gaap:ConvertibleNotesPayableMember 2023-01-01 2023-09-30 0001569340 us-gaap:ConvertibleNotesPayableMember 2022-01-01 2022-09-30 0001569340 us-gaap:ConvertiblePreferredStockMember 2023-01-01 2023-09-30 0001569340 us-gaap:ConvertiblePreferredStockMember 2022-01-01 2022-09-30 0001569340 us-gaap:ConvertibleNotesPayableMember 2023-09-30 0001569340 us-gaap:ConvertibleNotesPayableMember 2022-09-30 0001569340 CLCS:AccruedInterestMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0001569340 CLCS:AccruedCompensationMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0001569340 CLCS:AccruedInterestMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2023-01-01 2023-03-31 0001569340 CLCS:AccruedCompensationMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2023-01-01 2023-03-31 0001569340 CLCS:AccruedInterestMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2023-03-31 0001569340 CLCS:AccruedCompensationMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2023-03-31 0001569340 CLCS:AccruedInterestMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2023-04-01 2023-06-30 0001569340 CLCS:AccruedCompensationMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2023-04-01 2023-06-30 0001569340 CLCS:AccruedInterestMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2023-06-30 0001569340 CLCS:AccruedCompensationMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2023-06-30 0001569340 CLCS:AccruedInterestMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2023-07-01 2023-09-30 0001569340 CLCS:AccruedCompensationMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2023-07-01 2023-09-30 0001569340 CLCS:AccruedInterestMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2023-09-30 0001569340 CLCS:AccruedCompensationMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2023-09-30 0001569340 CLCS:AccruedInterestMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001569340 CLCS:AccruedCompensationMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001569340 CLCS:AccruedInterestMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2022-01-01 2022-03-31 0001569340 CLCS:AccruedCompensationMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2022-01-01 2022-03-31 0001569340 CLCS:AccruedInterestMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001569340 CLCS:AccruedCompensationMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001569340 CLCS:AccruedInterestMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2022-04-01 2022-06-30 0001569340 CLCS:AccruedCompensationMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2022-04-01 2022-06-30 0001569340 CLCS:AccruedInterestMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2022-06-30 0001569340 CLCS:AccruedCompensationMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2022-06-30 0001569340 CLCS:AccruedInterestMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2022-07-01 2022-09-30 0001569340 CLCS:AccruedCompensationMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2022-07-01 2022-09-30 0001569340 CLCS:AccruedInterestMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2022-09-30 0001569340 CLCS:AccruedCompensationMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2022-09-30 0001569340 us-gaap:MeasurementInputRiskFreeInterestRateMember srt:MinimumMember 2023-07-01 2023-09-30 0001569340 us-gaap:MeasurementInputRiskFreeInterestRateMember srt:MaximumMember 2023-07-01 2023-09-30 0001569340 us-gaap:MeasurementInputRiskFreeInterestRateMember srt:MinimumMember 2022-07-01 2022-09-30 0001569340 us-gaap:MeasurementInputRiskFreeInterestRateMember srt:MaximumMember 2022-07-01 2022-09-30 0001569340 us-gaap:MeasurementInputRiskFreeInterestRateMember srt:MinimumMember 2023-01-01 2023-09-30 0001569340 us-gaap:MeasurementInputRiskFreeInterestRateMember srt:MaximumMember 2023-01-01 2023-09-30 0001569340 us-gaap:MeasurementInputRiskFreeInterestRateMember srt:MinimumMember 2022-01-01 2022-09-30 0001569340 us-gaap:MeasurementInputRiskFreeInterestRateMember srt:MaximumMember 2022-01-01 2022-09-30 0001569340 us-gaap:MeasurementInputExpectedTermMember srt:MinimumMember 2023-07-01 2023-09-30 0001569340 us-gaap:MeasurementInputExpectedTermMember srt:MaximumMember 2023-07-01 2023-09-30 0001569340 us-gaap:MeasurementInputExpectedTermMember srt:MinimumMember 2022-07-01 2022-09-30 0001569340 us-gaap:MeasurementInputExpectedTermMember srt:MaximumMember 2022-07-01 2022-09-30 0001569340 us-gaap:MeasurementInputExpectedTermMember srt:MinimumMember 2023-01-01 2023-09-30 0001569340 us-gaap:MeasurementInputExpectedTermMember srt:MaximumMember 2023-01-01 2023-09-30 0001569340 us-gaap:MeasurementInputExpectedTermMember srt:MinimumMember 2022-01-01 2022-09-30 0001569340 us-gaap:MeasurementInputExpectedTermMember srt:MaximumMember 2022-01-01 2022-09-30 0001569340 us-gaap:MeasurementInputPriceVolatilityMember 2023-07-01 2023-09-30 0001569340 us-gaap:MeasurementInputPriceVolatilityMember 2022-07-01 2022-09-30 0001569340 us-gaap:MeasurementInputPriceVolatilityMember 2023-01-01 2023-09-30 0001569340 us-gaap:MeasurementInputPriceVolatilityMember 2022-01-01 2022-09-30 0001569340 us-gaap:MeasurementInputExpectedDividendRateMember 2023-07-01 2023-09-30 0001569340 us-gaap:MeasurementInputExpectedDividendRateMember 2022-07-01 2022-09-30 0001569340 us-gaap:MeasurementInputExpectedDividendRateMember 2023-01-01 2023-09-30 0001569340 us-gaap:MeasurementInputExpectedDividendRateMember 2022-01-01 2022-09-30 0001569340 2022-01-01 2022-12-31 0001569340 CLCS:NotesPayableMember 2023-09-30 0001569340 CLCS:NotesPayableMember 2023-07-01 2023-09-30 0001569340 CLCS:NotesPayableMember 2022-07-01 2022-09-30 0001569340 CLCS:NotesPayableMember 2023-01-01 2023-09-30 0001569340 CLCS:NotesPayableMember 2022-01-01 2022-09-30 0001569340 CLCS:NotesPayableMember 2022-12-31 0001569340 us-gaap:LoansPayableMember 2023-06-12 2023-06-12 0001569340 us-gaap:LoansPayableMember 2023-06-12 0001569340 us-gaap:LoansPayableMember 2023-07-01 2023-09-30 0001569340 CLCS:ConvertibleNotesPayableOneMember 2023-09-30 0001569340 CLCS:ConvertibleNotesPayableOneMember 2023-01-01 2023-09-30 0001569340 CLCS:ConvertibleNotesPayableTwoMember 2023-09-30 0001569340 CLCS:ConvertibleNotesPayableTwoMember 2023-01-01 2023-09-30 0001569340 CLCS:ConvertibleNotesPayableThreeMember 2023-01-01 2023-09-30 0001569340 CLCS:ConvertibleNotesPayableThreeMember us-gaap:SeriesCPreferredStockMember 2023-01-01 2023-09-30 0001569340 CLCS:ConvertibleNotesPayableThreeMember us-gaap:CommonStockMember 2023-01-01 2023-09-30 0001569340 CLCS:ConvertibleNotesPayableThreeMember 2023-09-30 0001569340 CLCS:MrVerstraeteMember 2022-03-10 0001569340 CLCS:MrVerstraeteMember 2022-03-10 0001569340 CLCS:MrVerstraeteMember 2023-02-28 0001569340 CLCS:MrVerstraeteMember 2023-04-01 2023-04-30 0001569340 CLCS:MrVerstraeteMember 2023-05-01 2023-05-31 0001569340 CLCS:MrVerstraeteMember 2023-07-01 2023-07-31 0001569340 CLCS:MrVerstraeteMember 2023-08-01 2023-08-31 0001569340 CLCS:MrVerstraeteMember 2023-09-01 2023-09-30 0001569340 CLCS:MrVerstraeteMember 2023-09-30 0001569340 CLCS:MrVerstraeteMember us-gaap:WarrantMember 2023-09-30 0001569340 CLCS:MrVerstraeteMember us-gaap:WarrantMember 2023-01-01 2023-09-30 0001569340 CLCS:SoaveNoteMember 2023-04-28 0001569340 CLCS:SoaveNoteMember 2023-09-30 0001569340 CLCS:SeriesAConvertiblePreferredStockMember 2023-07-26 0001569340 CLCS:SeriesCConvertiblePreferredStockMember 2023-07-26 0001569340 CLCS:SeriesBConvertiblePreferredStockMember srt:DirectorMember 2023-09-20 0001569340 CLCS:SeriesBConvertiblePreferredStockMember srt:DirectorMember 2023-09-21 0001569340 us-gaap:PreferredStockMember 2023-07-01 2023-09-30 0001569340 us-gaap:PreferredStockMember 2022-07-01 2022-09-30 0001569340 us-gaap:PreferredStockMember 2023-01-01 2023-09-30 0001569340 us-gaap:PreferredStockMember 2022-01-01 2022-09-30 0001569340 us-gaap:PreferredStockMember 2023-09-30 0001569340 us-gaap:PreferredStockMember 2022-12-31 0001569340 CLCS:SeriesAAndCConvertiblePreferredStockMember 2023-01-01 2023-09-30 0001569340 CLCS:SeriesAAndCConvertiblePreferredStockMember 2023-09-30 0001569340 CLCS:SeriesCConvertiblePreferredStockMember 2023-01-01 2023-09-30 0001569340 us-gaap:CommonStockMember 2023-01-01 2023-09-30 0001569340 CLCS:SeriesCConvertiblePreferredStockMember us-gaap:CommonStockMember 2023-01-01 2023-09-30 0001569340 CLCS:ConsultantMember 2023-01-01 2023-09-30 0001569340 CLCS:PromissoryNoteMember 2023-01-01 2023-09-30 0001569340 us-gaap:WarrantMember 2023-05-25 2023-05-25 0001569340 us-gaap:WarrantMember 2023-05-25 0001569340 CLCS:FormerDirectorMember 2023-08-09 0001569340 CLCS:FormerDirectorMember 2023-08-09 2023-08-09 0001569340 us-gaap:EmployeeStockOptionMember 2023-07-01 2023-09-30 0001569340 us-gaap:WarrantMember 2023-07-01 2023-09-30 0001569340 CLCS:ConsultingServicesMember 2023-07-01 2023-09-30 0001569340 us-gaap:EmployeeStockOptionMember 2022-07-01 2022-09-30 0001569340 us-gaap:EmployeeStockOptionMember 2023-01-01 2023-09-30 0001569340 us-gaap:WarrantMember 2023-01-01 2023-09-30 0001569340 CLCS:ConsultingServicesMember 2023-01-01 2023-09-30 0001569340 us-gaap:EmployeeStockOptionMember 2022-01-01 2022-09-30 0001569340 srt:DirectorMember 2023-09-30 0001569340 srt:DirectorMember 2022-12-31 0001569340 CLCS:YedaResearchAndLicenseAgreementMember 2023-09-30 0001569340 CLCS:YedaResearchAndLicenseAgreementMember 2022-12-31 0001569340 CLCS:MDAndersonSponsoredResearchAgreementsMember 2023-07-01 2023-09-30 0001569340 CLCS:MDAndersonSponsoredResearchAgreementsMember 2022-07-01 2022-09-30 0001569340 CLCS:MDAndersonSponsoredResearchAgreementsMember 2023-01-01 2023-09-30 0001569340 CLCS:MDAndersonSponsoredResearchAgreementsMember 2022-01-01 2022-09-30 0001569340 CLCS:MDAndersonSponsoredResearchAgreementsMember 2022-12-31 0001569340 CLCS:PromissoryNoteMember 2019-01-31 0001569340 2019-10-01 2019-10-31 0001569340 CLCS:CourtOfficerMember 2021-01-01 2021-12-31 0001569340 CLCS:ThirdPartyMember 2021-01-01 2021-12-31 0001569340 2023-08-01 2023-08-31 0001569340 2022-08-31 0001569340 CLCS:SeriesBConvertiblePreferredStockMember us-gaap:SubsequentEventMember 2023-10-30 0001569340 us-gaap:ConvertiblePreferredStockMember us-gaap:SubsequentEventMember 2023-10-30 0001569340 us-gaap:ConvertiblePreferredStockMember us-gaap:SubsequentEventMember 2023-10-25 0001569340 CLCS:SeriesBConvertiblePreferredStockMember us-gaap:SubsequentEventMember 2023-10-31 0001569340 us-gaap:CommonStockMember us-gaap:SubsequentEventMember 2023-10-31 0001569340 us-gaap:InvestorMember us-gaap:SubsequentEventMember 2023-10-30 2023-10-31 0001569340 us-gaap:SubsequentEventMember 2023-10-30 2023-10-31 0001569340 us-gaap:SubsequentEventMember us-gaap:WarrantMember 2023-10-30 0001569340 CLCS:SoaveNoteMember 2023-11-07 2023-11-08 0001569340 CLCS:VerstraeteNoteMember 2023-11-07 2023-11-08 0001569340 us-gaap:SubsequentEventMember us-gaap:ConvertibleNotesPayableMember CLCS:InvestorsMember 2023-10-01 2023-10-31 0001569340 us-gaap:SubsequentEventMember us-gaap:ConvertibleNotesPayableMember CLCS:InvestorsMember 2023-10-01 0001569340 us-gaap:SubsequentEventMember us-gaap:ConvertibleNotesPayableMember CLCS:InvestorsMember CLCS:SeriesCConvertiblePreferredStockMember 2023-10-01 2023-10-31 0001569340 us-gaap:SubsequentEventMember us-gaap:ConvertibleNotesPayableMember us-gaap:CommonStockMember CLCS:InvestorsMember 2023-10-01 2023-10-31 0001569340 CLCS:MDAndersonSponsoredResearchAgreementsMember 2023-11-05 2023-11-06 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure

 

 

 

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: 000-55413

 

Cell Source, Inc. 

 

(Exact name of registrant as specified in its charter)

 

Nevada   32-0379665

(State or other jurisdiction

of incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

57 West 57th Street, Suite 400

New York, NY 10019

(Address of principal executive offices)

 

(646) 416-7896

(Issuer’s telephone number)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading symbol(s)   Name of each exchange on which registered
None   N/A   N/A

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

 

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

 

Large accelerated filer ☐ Accelerated filer ☐
   
Non-accelerated filer Smaller reporting company
   
  Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any news 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

 

As of November 6, 2023, the registrant had 38,546,231 shares of $0.001 par value common stock outstanding.

 

 

 

   

 

 

CELL SOURCE, INC.

 

FORM 10-Q

 

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2023

 

TABLE OF CONTENTS

 

PART I - FINANCIAL INFORMATION
 
Item 1. Financial Statements. 3
   
Condensed Consolidated Balance Sheets as of September 30, 2023 (Unaudited) and December 31, 2022 3
   
Unaudited Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2023 and 2022 4
   
Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Deficiency for the Three and Nine Months Ended September 30, 2023 and 2022 5
   
Unaudited Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2023 and 2022 6
   
Notes to Unaudited Condensed Consolidated Financial Statements 7
   
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. 14
   
Item 3. Quantitative and Qualitative Disclosures About Market Risk. 18
   
Item 4. Controls and Procedures. 18
   
PART II - OTHER INFORMATION  
   
Item 1. Legal Proceedings. 19
   
Item 1A. Risk Factors. 19
   
Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities. 19
   
Item 3. Defaults Upon Senior Securities. 19
   
Item 4. Mine Safety Disclosures. 19
   
Item 5. Other Information. 19
   
Item 6. Exhibits. 20
   
SIGNATURES 21

 

   

 

 

PART I – FINANCIAL INFORMATION

 

Item 1. Financial Statements.

 

CELL SOURCE, INC.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

   September 30,   December 31, 
   2023   2022 
   (Unaudited)     
Assets        
Current Assets:          
Cash  $2,582   $222,665 
Prepaid expenses   242,375    164,175 
Other current assets   3,400    23,005 
Total Assets  $248,357   $409,845 
           
Liabilities and Stockholders’ Deficiency          
           
Current Liabilities:          
Accounts payable  $1,580,863   $680,325 
Accrued expenses   1,126,536    1,485,857 
Accrued expenses - related party   130,000    86,500 
Accrued interest   962,183    809,426 
Accrued interest - related parties   1,443,452    987,310 
Accrued compensation   885,665    849,898 
Notes payable, net of debt discount of $0 and $12,968 as of September 30, 2023 and December 31, 2022, respectively   681,093    768,126 
Notes payable - related parties   150,000    150,000 
Convertible notes payable, net of debt discount of $21,954 and $41,650 as of September 30, 2023 and December 31, 2022, respectively   1,328,006    908,311 
Convertible notes payable - related parties, net of debt discount of $0 and $147,230 as of September 30, 2023 and December 31, 2022, respectively   7,315,036    6,077,770 
Financing liability   130,040    - 
Advances payable   135,000    135,000 
Advances payable - related party   100,000    100,000 
Accrued dividend payable   310,630    5,217 
Total Liabilities   16,278,504    13,043,740 
           
Commitments and contingencies (Note 8)   -    - 
           
Stockholders’ Deficiency:          
Preferred stock, $0.001 par value, 10,000,000 shares authorized          
Series A Convertible Preferred Stock, 1,350,000 shares designated,
1,342,195 shares issued and outstanding as of September 30, 2023 and December 31, 2022; liquidation preference of $10,294,818 and $10,066,463 and as of September 30, 2023 and December 31, 2022, respectively
   1,342    1,342 
Series B Convertible Preferred Stock, 2,000,000 shares designated,
0 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively; liquidation preference of $0 as of September 30, 2023 and December 31, 2022
   -    - 
Series C Convertible Preferred Stock, 1,000,000 shares designated,
532,110 and 502,776 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively; liquidation preference of $4,073,102 and $3,776,039 as of September 30, 2023 and December 31, 2022, respectively
   532    503 
Common stock, $0.001 par value, 200,000,000 shares authorized;
38,495,617 and 36,081,758 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively
   38,495    36,082 
Additional paid-in capital   24,546,969    23,674,354 
Accumulated deficit   (40,617,485)   (36,346,176)
Total Stockholders’ Deficiency   (16,030,147)   (12,633,895)
Total Liabilities and Stockholders’ Deficiency  $248,357   $409,845 

 

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

 

 

3

 

 

 

CELL SOURCE, INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

(Unaudited)

 

    2023    2022    2023    2022 
   For the Three Months Ended
September 30,
   For the Nine Months Ended
September 30,
 
    2023    2022    2023    2022 
                     
Operating Expenses:                    
Research and development  $500,005   $468,005   $1,175,093   $1,487,520 
Research and development - related party   14,500    14,500    43,500    43,500 
General and administrative   480,875    533,538    2,097,801    1,571,572 
Total Operating Expenses   995,380    1,016,043    3,316,394    3,102,592 
Loss From Operations   (995,380)   (1,016,043)   (3,316,394)   (3,102,592)
                     
Other (Expense) Income:                    
Interest expense   (62,463)   (41,581)   (138,937)   (153,306)
Interest expense - related parties   (199,628)   (138,373)   (496,206)   (386,775)
Amortization of debt discount   (29,912)   (23,561)   (107,487)   (113,249)
Amortization of debt discount - related party   (50,755)   (32,748)   (254,205)   (74,553)
Gain on extinguishment of note payable   -    -    41,920    - 
Total Other Expense   (342,758)   (236,263)   (954,915)   (727,883)
Net Loss   (1,338,138)   (1,252,306)   (4,271,309)   (3,830,475)
Dividend attributable to Series A and Series C preferred stockholders   (309,150)   (299,827)   (907,516)   (869,715)
Net Loss Applicable to Common Stockholders  $(1,647,288)  $(1,552,133)  $(5,178,825)  $(4,700,190)
                     
Net Loss Per Common Share - Basic and Diluted  $(0.04)  $(0.04)  $(0.14)  $(0.14)
                     
Weighted Average Common Shares Outstanding -                    
Basic and Diluted   38,191,731    35,240,745    37,492,478    34,696,011 

 

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

 

 

4

 

 

 

CELL SOURCE, INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIENCY

 

(Unaudited)

 

   Shares   Amount   Shares   Amount   Shares   Amount   Paid-In Capital   Deficit  

Deficiency

 
   FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 
   Convertible Preferred   Convertible Preferred                   Total 
   Stock - Series A   Stock - Series C   Common Stock   Additional   Accumulated   Stockholders’ 
   Shares   Amount   Shares   Amount   Shares   Amount   Paid-In Capital   Deficit  

Deficiency

 
                                     
Balance, January 1, 2023    1,342,195   $1,342    502,776   $503    36,081,758   $36,082   $       23,674,354   $(36,346,176)  $(12,633,895)
                                              
Conversion of convertible notes payable and accrued interest into Series C Convertible Preferred Stock and common stock   -    -    6,667    7    2,747    3    52,050    -    52,060 
                                              
Series A and Series C Convertible Preferred Stock dividends:                                             
Accrual of earned dividends   -    -    -    -    -    -    (297,517)   -    (297,517)
                                              
Issuance of warrants in connection with issuance of convertible notes payable   -    -    -    -    -    -    21,202    -    21,202 
                                              
Conversion of Series C Convertible Preferred Stock into common stock   -    -    (10,000)   (10)   100,000    100    (90)   -    - 
                                              
Stock-based compensation:                                             
Common stock   -    -    -    -    1,000,000    1,000    329,000    -    330,000 
                                              
Net loss   -    -    -    -    -    -    -    (1,691,567)   (1,691,567)
                                              
Balance, March 31, 2023   1,342,195   $1,342    499,443   $500    37,184,505   $37,185   $23,778,999   $(38,037,743)  $(14,219,717)
                                              
Series A and Series C Convertible Preferred Stock dividends:                                             
Accrual of earned dividends   -    -    -    -    -    -    (300,849)   -    (300,849)
Payment of dividends in kind   -    -    -    -    802,880    802    601,300    -    602,102 
                                             
Issuance of common stock in connection with extinguishment of note payable   -    -    -    -    176,000    176    57,904    -    58,080 
                                              
Issuance of warrants in connection with:                                             
Satisfaction of accrued interest   -    -    -    -    -    -    40,167    -    40,167 
Issuance of convertible notes payable   -    -    -    -    -    -    75,462    -    75,462 
                                              
Stock-based compensation:                                             
Warrants   -    -    -    -    -    -    40,600    -    40,600 
                                              
Net loss   -    -    -    -    -    -    -    (1,241,604)   (1,241,604)
                                              
Balance, June 30, 2023   1,342,195   $1,342    499,443   $500    38,163,385   $38,163   $24,293,583   $(39,279,347)  $(14,945,759)
                                              
Conversion of convertible notes payable and accrued interest into Series C Convertible Preferred Stock and common stock   -    -    62,667    62    32,232    32    494,040    -    494,134 
                                              
Issuance of warrants in connection with issuance of convertible notes payable   -    -    -    -    -    -    45,008    -    45,008 
                                              
Conversion of Series C Convertible Preferred Stock into common stock   -    -    (30,000)   (30)   300,000    300    (270)   -    - 
                                              
Series A and Series C Convertible Preferred Stock dividends:                                             
Accrual of earned dividends   -    -    -    -    -    -    (309,150)   -    (309,150)
                                              
Stock-based compensation:                                             
Warrants   -    -    -    -    -    -    23,758    -    23,758 
                                              
Net loss   -    -    -    -    -    -    -    (1,338,138)   (1,338,138)
                                              
Balance, September 30, 2023   1,342,195   $1,342    532,110   $532    38,495,617   $38,495   $24,546,969   $(40,617,485)  $(16,030,147)

 

 

 

  FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 
   Convertible Preferred   Convertible Preferred                   Total 
   Stock - Series A   Stock - Series C   Common Stock   Additional   Accumulated   Stockholders’ 
   Shares   Amount   Shares   Amount   Shares   Amount   Paid-In Capital  

Deficit

  

Deficiency

 
                                     
Balance, January 1, 2022    1,342,195   $1,342    272,021   $272    34,360,546   $34,361   $       21,316,318   $(31,178,428)  $(9,826,135)
                                             
Conversion of convertible notes payable and accrued interest into Series C Convertible Preferred Stock and common stock   -    -    183,422    183    76,530    76    1,432,836    -    1,433,095 
                                              
Series A and C Convertible Preferred Stock dividends:                                             
Accrual of earned dividends   -    -    -    -    -    -    (324,917)   -    (324,917)
                                             
Issuance of warrants in connection with issuance of convertible notes payable   -    -    -    -    -    -    8,043    -    8,043 
                                              
Stock-based compensation:                                             
Warrants   -    -    -    -    -    -    5,372    -    5,372 
                                              
Net loss   -    -    -    -    -    -    -    (1,292,575)   (1,292,575)
                                              
Balance, March 31, 2022   1,342,195    1,342    455,443    455    34,437,076    34,437    22,437,652    (32,471,003)   (9,997,117)
                                              
Conversion of convertible notes payable and accrued interest into Series C Convertible Preferred Stock and common stock   -    -    14,666    15    5,964    6    114,452    -    114,473 
                                              
Series A and C Convertible Preferred Stock dividends:                                             
Accrual of earned dividends   -    -    -    -    -    -    (244,971)   -    (244,971)
Payment of dividends in kind   -    -    -    -    796,629    797    596,634    -    597,431 
                                              
Issuance of warrants in connection with issuance of convertible notes payable   -    -    -    -    -    -    49,219    -    49,219 
                                              
Net loss   -    -    -    -    -    -    -    (1,285,594)   (1,285,594)
                                              
Balance, June 30, 2022   1,342,195    1,342    470,109    470    35,239,669    35,240    22,952,986    (33,756,597)   (10,766,559)
                                              
Conversion of convertible notes payable and accrued interest into Series C Convertible Preferred Stock and common stock   -    -    12,667    13    5,181    5    98,868    -    98,886 
                                              
Series A and C Convertible Preferred Stock dividends:                                             
Accrual of earned dividends   -    -    -    -    -    -    (299,827)   -    (299,827)
                                              
Issuance of warrants in connection with issuance of convertible notes payable   -    -    -    -    -    -    76,509    -    76,509 
                                              
Warrants issued in satisfaction of accrued interest   -    -    -    -    -    -    114,727    -    114,727 
                                              
Stock-based compensation:                                             
Options   -    -    -    -    -    -    74,600    -    74,600 
                                              
Net loss   -    -    -    -    -    -    -    (1,252,306)   (1,252,306)
Balance, September 30, 2022   1,342,195   $1,342    482,776   $483    35,244,850   $35,245   $23,017,863   $(35,008,903)  $(11,953,970)

 

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

 

 

5

 

 

 

CELL SOURCE, INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(Unaudited)

 

   2023   2022 
   For Nine Months Ended 
   September 30, 
   2023   2022 
         
Cash Flows From Operating Activities:          
Net loss  $(4,271,309)  $(3,830,475)
Adjustments to reconcile net loss to net cash used in operating activities:          
Gain on extinguishment of note payable   (41,920)   - 
Amortization of debt discount   361,692    187,802 
Non-cash interest expense - warrants   28,695    96,896 
Stock-based compensation:          
Options   -    74,600 
Warrants   63,709    5,190 
Common stock   341,269    - 
Changes in operating assets and liabilities:          
Prepaid expenses   243,300    (70,568)
Other current assets   19,605    (3,431)
Accounts payable   900,538    451,179 
Accrued expenses   53,697    187,597 
Accrued expenses - related parties   43,500    - 
Accrued interest   165,030    75,892 
Accrued interest - related parties   441,446    346,061 
Accrued compensation   25,147    63,846 
Net Cash Used In Operating Activities   (1,625,601)   (2,415,411)
           
Cash Flows From Financing Activities:          
Proceeds from issuance of convertible notes payable   919,960    395,000 
Proceeds from issuance of convertible notes payable - related party   677,018    2,000,000