Company Quick10K Filing
Guided Therapeutics
Price0.00 EPS1,780
Shares0 P/E0
MCap0 P/FCF-0
Net Debt0 EBIT7
TEV0 TEV/EBIT0
TTM 2019-03-31, in MM, except price, ratios
10-K 2020-12-31 Filed 2021-04-07
10-Q 2020-09-30 Filed 2020-11-05
S-1 2020-09-10 Public Filing
10-Q 2020-06-30 Filed 2020-08-20
10-Q 2020-03-31 Filed 2020-07-07
10-K 2019-12-31 Filed 2020-04-20
10-Q 2019-09-30 Filed 2020-03-09
10-Q 2019-06-30 Filed 2020-02-11
10-Q 2019-03-31 Filed 2019-07-11
10-K 2018-12-31 Filed 2019-05-08
10-Q 2018-09-30 Filed 2018-11-14
10-Q 2018-06-30 Filed 2018-08-14
S-1 2018-06-14 Public Filing
10-Q 2018-03-31 Filed 2018-05-21
10-K 2017-12-31 Filed 2018-04-17
10-Q 2017-09-30 Filed 2017-11-20
10-Q 2017-06-30 Filed 2017-08-18
10-Q 2017-03-31 Filed 2017-05-22
10-K 2016-12-31 Filed 2017-03-22
10-Q 2016-09-30 Filed 2016-12-05
10-Q 2016-06-30 Filed 2016-08-17
10-Q 2016-03-31 Filed 2016-05-19
10-K 2015-12-31 Filed 2016-03-15
10-Q 2015-09-30 Filed 2015-11-12
10-Q 2015-06-30 Filed 2015-08-13
10-Q 2015-03-31 Filed 2015-05-13
10-K 2014-12-31 Filed 2015-03-25
10-Q 2014-09-30 Filed 2014-11-12
10-Q 2014-06-30 Filed 2014-08-13
10-Q 2014-03-31 Filed 2014-05-15
10-K 2013-12-31 Filed 2014-03-26
10-Q 2013-09-30 Filed 2013-11-13
10-Q 2013-06-30 Filed 2013-08-14
10-Q 2013-03-31 Filed 2013-05-14
10-K 2012-12-31 Filed 2013-03-27
10-Q 2012-09-30 Filed 2012-11-13
10-Q 2012-06-30 Filed 2012-08-14
10-Q 2012-03-31 Filed 2012-05-14
10-Q 2011-09-30 Filed 2011-11-14
10-Q 2011-06-30 Filed 2011-08-15
10-Q 2011-03-31 Filed 2011-05-16
10-K 2010-12-31 Filed 2011-03-30
10-Q 2010-09-30 Filed 2010-11-10
10-Q 2010-06-30 Filed 2010-08-12
10-Q 2010-03-31 Filed 2010-05-13
10-K 2009-12-31 Filed 2010-03-23
8-K 2020-09-16
8-K 2020-03-31
8-K 2020-03-31
8-K 2019-04-03
8-K 2018-11-14
8-K 2018-10-25
8-K 2018-08-31

GTHP 10Q Quarterly Report

Part I  -  Financial Information: Item 1.  Financial Statements
Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3.   Quantitative and Qualitative Disclosures About Market Risk
Item 4.   Controls and Procedures
Part II - Other Information
Item 1.  Legal Proceedings
Item 1A.  Risk Factors
Item 2.  Unregisterred Sales of Equity Securities and Use of Proceeds.
Item 3. Defaults Upon Senior Securities
Item 6.  Exhibits
EX-31 gthp_ex31.htm
EX-32 gthp_ex32.htm

Guided Therapeutics Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
4.4-0.5-5.4-10.2-15.1-20.02012201420172020
Assets, Equity
10.07.44.72.1-0.6-3.22012201420172020
Rev, G Profit, Net Income
2.61.91.30.6-0.0-0.72012201420172020
Ops, Inv, Fin

10-Q 1 gthp_10q.htm QUARTERLY REPORT gthp_10q
 

  UNITED STATES SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 [  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT 1934
 
For the quarterly period ended June 30, 2020
Commission File No. 0-22179
  
GUIDED THERAPEUTICS, INC.
(Exact Name of Registrant as Specified in Its Charter)
 
Delaware
(State or other jurisdiction of incorporation or organization)
 
58-2029543
(I.R.S. Employer Identification No.)
  
5835 Peachtree Corners East, Suite B
Norcross, Georgia 30092
(Address of principal executive offices) (Zip Code)
 
(770) 242-8723
(Registrant’s telephone number, including area code)     
 
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes [ ] No[X]
 
Indicate by check mark whether the registrant has submitted electronically, if any, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes [X] No [ ]
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act (Check one):
 
 
Large Accelerated filer ☐
Accelerated filer ☐
Non-accelerated filer ☐
Smaller reporting company  ☒
 
Emerging growth company ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised accounting standards provided pursuant to Section 13 (a) of the Exchange Act. [ ]
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act. Yes [ ] No [X] 
 
As of August 14, 2020, the registrant had 13,096,189 shares of common Stock, $0.001 par value per share, outstanding.
   

 
 
 
GUIDED THERAPEUTICS, INC. AND SUBSIDIARY
 
INDEX
 
 
 3
 
 
 3
 
 
 3
 
 
 5
 
 
 6

 
  8
 
 
  9
 
 
36
 
 
44
 
 
44
 
 
         44
 
 
  44
 
 
44
 
 
        44
 
 
    44
 
 
44
 
 
45
 
 
 
 
 
 
2
 
 
PART I - FINANCIAL INFORMATION: ITEM 1.  FINANCIAL STATEMENTS
 
GUIDED THERAPEUTICS, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS (unaudited, in thousands)
 
ASSETS
 
June 30,
2020
 
 
December 31,
2019
 
CURRENT ASSETS:
 
 
 
 
 
 
    Cash and cash equivalents
 $763 
 $899 
    Accounts receivable, net of allowance for doubtful accounts of $125 and $114 at June 30, 2020 and December 31, 2019, respectively
  - 
  13 
    Inventory, net of reserves of $838 and $831 at June 30, 2020 and December 31, 2019, respectively
  51 
  48 
    Other current assets
  41 
  70 
                    Total current assets
  855 
  1,030 
NONCURRENT ASSETS:
    
    
    Property and equipment, net
  1 
  - 
    Lease-right-of-use asset, net of amortization
  86 
  132 
    Other assets
  - 
  18 
                    Total noncurrent assets
  87 
  150 
                    TOTAL ASSETS
  942 
  1,180 
 
    
    
LIABILITIES AND STOCKHOLDERS’ DEFICIT
    
    
CURRENT LIABILITIES:
    
    
    Notes payable in default, related parties
  2 
  349 
    Notes payable in default
  307 
  427 
    Short-term notes payable
  1 
  380 
    Short-term notes payable, related parties
  - 
  646 
    Short-term notes payable, related parties, past due
  53 
  - 
    Convertible notes, past due
  1,828 
  - 
    Convertible notes in default
  432 
  2,915 
    Short-term convertible notes payable
  33 
  73 
    Short-term convertible notes payable, related parties
  - 
  513 
    Accounts payable
  2,791 
  2,897 
    Accounts payable, related parties
  125 
  136 
    Accrued liabilities
  2,871 
  3,235 
    Subscription receivable
  - 
  635 
    Current portion of lease liability
  86 
  103 
    Deferred revenue
  101 
  101 
                   Total current liabilities
  8,630 
  12,410 
LONG-TERM LIABILITIES:
    
    
    Warrants, at fair value
  7,576 
  5,092 
    Lease liability
  - 
  29 
    Long-term debt
  50 
  - 
    Long-term convertible notes payable, net
  525 
  15 
    Long-term debt-related parties
  584 
  569 
                    Total long-term liabilities
  8,735 
  5,705 
                    TOTAL LIABILITIES
  17,365 
  18,115 
 
    
    
COMMITMENTS & CONTINGENCIES (Note 7)
    
    
 
 
3
 
 
 
 
STOCKHOLDERS’ DEFICIT:
 
 
 
 
 
 
Series C convertible preferred stock, $.001 par value; 9.0 shares authorized, 0.3 shares issued and outstanding as of June 30, 2020 and December 31, 2019. (Liquidation preference of $286 at June 30, 2020 and December 31, 2019).
  105 
  105 
Series C1 convertible preferred stock, $.001 par value; 20.3 shares authorized, 1.0 shares issued and outstanding as of June 30, 2020 and December 31, 2019. (Liquidation preference of $1,049 at June 30, 2020 and December 31, 2019).
  170 
  170 
Series C2 convertible preferred stock, $.001 par value; 5.0 shares authorized, 3.3 shares issued and outstanding as of June 30, 2020 and December 31, 2019. (Liquidation preference of $3,263 at June 30, 2020 and December 31, 2019).
  531 
  531 
Series D convertible preferred stock, $.001 par value; 6.0 shares authorized, 0.8 and nil shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively. (Liquidation preference of $554 and nil at June 30, 2020 and December 31, 2019).
  276 
  - 
Series E convertible preferred stock, $.001 par value; 5.0 shares authorized, 0.9 and nil shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively. (Liquidation preference of $853 and nil at June 30, 2020 and December 31, 2019).
  853 
  - 
Common stock, $.001 par value; 3,000,000 shares authorized, 12,765 and 3,319 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively
  3,403 
  3,394 
   Additional paid-in capital
  121,975 
  118,552 
   Treasury stock, at cost
  (132)
  (132)
   Accumulated deficit
  (143,604)
  (139,555)
                   TOTAL STOCKHOLDERS’ DEFICIT
  (16,423)
  (16,935)
  TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT
  942 
  1,180 
 
The accompanying notes are an integral part of these consolidated statements.
 
 
4
 
 
GUIDED THERAPEUTICS INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in Thousands, except per share data)
 
 
 
FOR THE THREE
MONTHS
ENDED JUNE 30,
 
 
FOR THE SIX
 MONTHS
ENDED JUNE 30,
 
 
 
2020
 
 
2019
 
 
2020
 
 
2019 
REVENUE:
 
 
 
 
 
 
 
 
 
 
 
 
          Sales – devices and disposables
 $- 
 $1 
 $- 
 $19 
          Cost of goods sold
  6 
  65 
  6 
  66 
                                 Gross loss
  (6)
  (64)
  (6)
  (47))
 
    
    
    
    
OPERATING EXPENSES:
    
    
    
    
         Research and development
  55 
  43 
  80 
  90 
         Sales and marketing
  37 
  31 
  71 
  76 
         General and administrative
  271 
  189 
  453 
  371 
                                 Total operating expenses
  363 
  263 
  604 
  537 
 
    
    
    
    
                                 Operating loss
  (369)
  (327)
  (610)
  (584)
 
    
    
    
    
OTHER INCOME (EXPENSES):
    
    
    
    
         Other income
  50 
  16 
  51 
  19 
         Interest expense
  (308)
  (264)
  (594)
  (634)
         Loss from extinguishment of debt
  (343)
  - 
  (316)
  - 
         Change in fair value of warrants
  (5,779)
  (2,088)
  (2,551)
  (1,679)
                                  Total other expenses
  (6,380)
  (2,336)
  (3,410)
  (2,294)
 
    
    
    
    
LOSS INCOME BEFORE INCOME TAXES
  (6,749)
  (2,663)
  (4,020)
  (2,878)
 
    
    
    
    
PROVISION FOR INCOME TAXES
  - 
  - 
  - 
  - 
 
    
    
    
    
NET LOSS
  (6,749)
  (2,663)
  (4,020)
  (2,878)
PREFERRED STOCK DIVIDENDS
  (17)
  9 
  (29)
  - 
 
    
    
    
    
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS
 $(6,766)
 $(2,654)
 $(4,049)
 $(2,878)
 
    
    
    
    
NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS
    
    
    
    
      BASIC
 $(0.57)
 $(0.81)
 $(0.48)
 $(0.87)
      DILUTED
 $(0.57)
 $(0.81)
 $(0.48)
 $(0.87)
 
    
    
    
    
WEIGHTED AVERAGE SHARES OUTSTANDING
    
    
    
    
      BASIC
  11,913 
  3,284 
  8,463 
  3,319 
     DILUTED
  11,913  
  3,284  
  8,463  
  3,319  
 
The accompanying notes are an integral part of these consolidated financial statements.
 
 
5
 
GUIDED THERAPEUTICS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT
FOR THE SIX MONTHS ENDED JUNE 30, 2020 AND 2019
(In Thousands except per share data)
(Unaudited)
 
 
 
Preferred Stock
Series C
 
 
Preferred Stock
Series C1
 
 
Preferred Stock
Series
C2
 
 
Preferred Stock
Series
D
 
 
Preferred Stock
Series
E
 
 
 
Common Stock
 
 
Additional Paid-In
 
 
 
Treasury
 
 
 
Accumulated
 
 
 
 
 
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
Shares Amount
 
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
Capital
 
 
Stock
 
 
Deficit
 
 
TOTAL
 
BALANCE, December 31, 2019
  - 
 $105 
  1 
 $170 
  3 
 $531 
  - 
 $- 
  - 
 $- 
  3,319 
 $3,394 
 $118,552 
 $(132)
 $(139,555)
 $(16,935)
Issuance of preferred stock in financing
  - 
  - 
  - 
  - 
  - 
  - 
  763 
  276 
  853 
  853 
  - 
  - 
  487 
  - 
  - 
  1,616 
Conversion of debt into common stock
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
    
    
  7,957 
  8 
  2,692 
  - 
  - 
  2,700 
Issuance of common stock in financing
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
    
    
  1,476 
  1 
  177 
  - 
  - 
  178 
Issuance of warrants in financing
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
    
    
  - 
  - 
  67 
  - 
  - 
  67 
Issuance of common stock for manufacturing agreements
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  13 
  - 
  - 
  - 
  - 
  - 
Net loss
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
    
    
  - 
  - 
  - 
  - 
  (4,049)
  (4,049)
BALANCE,
June 30, 2020
  - 
 $105 
  1 
 $170 
  3 
 $531 
  763 
 $276 
  853 
 $853 
  12,765 
 $3,403 
 $121,975 
 $(132)
 $(143,604)
 $(16,423)
 
 
 
Preferred Stock
Series C
 
 
Preferred Stock Series
C1
 
 
Preferred Stock Series
C2
 
 
 
Common Stock
 
 
Additional Paid-In
 
 
 
Treasury
 
 
 
Accumulated
 
 
 
 
 
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
Capital
 
 
Stock
 
 
Deficit
 
 
TOTAL
 
BALANCE, December 31, 2018
  - 
 $105 
  1 
 $170 
  3 
 $531 
  2,669 
 $2,877 
 $118,259 
 $(132)
 $(137,634)
 $(15,824)
Conversion of debt into common stock
  - 
  - 
  - 
  - 
  - 
  - 
  650 
  517 
  (404)
  - 
  1 
  114 
Stock-based compensation
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  5 
  - 
  - 
  5 
Net loss
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (2,878)
  (2,878)
BALANCE,
June 30, 2019
  - 
 $105 
  1 
 $170 
  3 
 $531 
  3,319 
 $3,394 
 $117,860 
 $(132)
 $(140,512)
 $(18,585)
 
    
    
    
    
    
    
    
    
    
    
    
    
 
The accompanying notes are an integral part of these consolidated statements
 
 
6
 
 
GUIDED THERAPEUTICS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT
FOR THE THREE MONTHS ENDED JUNE 30, 2020 AND 2019
(In Thousands except per share data)
(Unaudited)
 
 
 
Preferred Stock
Series C
 
 
Preferred Stock
Series C1
 
 
Preferred Stock Series
C2
 
 
Preferred Stock Series
D
 
 
Preferred Stock Series
E
 
 
 
Common Stock
 
 
Additional Paid-In
 
 
 
Treasury
 
 
 
Accumulated
 
 
 
 
 
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
Shares Amount
 
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
Capital
 
 
Stock
 
 
Deficit
 
 
TOTAL
 
BALANCE, March 31, 2020
  - 
 $105 
  1 
 $170 
  3 
 $531 
  738 
 $268 
  - 
 $- 
  11,765 
 $3,402 
 $121,150 
 $(132)
 $(136,839)
 $(11,345)
Issuance of preferred stock in financing
  - 
  - 
  - 
  - 
  - 
  - 
  25 
  8 
  853 
  853 
  - 
  - 
  21 
  - 
  - 
  1,062 
Conversion of debt into common stock
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
    
    
  1,000 
  1 
  624 
  - 
  - 
  625 
Net loss
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
    
    
  - 
  - 
  - 
  - 
  (6,765)
  (6,765)
BALANCE,
June 30, 2020
  - 
 $105 
  1 
 $170 
  3 
 $531 
  763 
 $276 
  853 
 $853 
  12,765 
 $3,403 
 $121,975 
 $(132)
 $(143,604)
 $(16,423)
 
 
 
Preferred Stock
Series C
 
 
Preferred Stock Series
C1
 
 
Preferred Stock Series
C2
 
 
Common Stock
 
 
Additional Paid-In
 
 
Treasury
 
 
Accumulated
 
 
 
 
 
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
Capital
 
 
Stock
 
 
Deficit
 
 
TOTAL
 
BALANCE,
March 31, 2019
  - 
 $105 
  1 
 $170 
  3 
 $531 
  3,319 
 $3,393 
 $117,780 
 $(132)
 $(137,858)
 $(16,011)
Conversion of debt into common stock
  - 
  - 
  - 
  - 
  - 
  - 
  80 
  - 
  - 
  - 
  - 
  80 
Net loss
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  - 
  (2,654)
  (2,654)
BALANCE,
June 30, 2019
  - 
 $105 
  1 
 $170 
  3 
 $531 
  3,319 
 $3,394 
 $117,860 
 $(132)
 $(140,512)
 $(18,585)
 
The accompanying notes are an integral part of these consolidated statements
 
 
7
 
 
GUIDED THERAPEUTICS INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
 
 
 
FOR THE SIX MONTHS
ENDED JUNE 30,
 
 
 
2020
 
 
2019
 
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
     Net loss
 $(4,020
 $(2,878)
     Adjustments to reconcile net income (loss) to net cash used in operating activities:
    
    
           Bad debt expense
  13 
  - 
           Depreciation
  - 
  21 
           Amortization of debt issuance costs and discounts
  194 
  46 
           Amortization of beneficial conversion feature
  53 
  54 
           Share-based compensation
  - 
  8 
           Change in fair value of warrants
  2,551 
  1,679 
           Loss from extinguishment of debt
  316 
  - 
 
    
    
    Changes in operating assets and liabilities:
    
    
           Accounts receivable
  - 
  (3)
           Inventory
  (3)
  66 
           Other current assets
  29 
  67 
           Other non-current asset
  18 
  - 
           Accounts payable
  19 
  29 
           Deferred revenue
  - 
  33 
           Accrued liabilities
  (108)
  504 
                         Total adjustments
  3,082 
  2,558 
 
    
    
                         Net cash used in operating activities
  (938)
  (374)
 
    
    
CASH FLOWS FROM INVESTING ACTIVITIES:
    
    
      Additions to property and equipment
  (1)
  - 
                        Net cash used in investing activities
  (1)
  - 
 
    
    
CASH FLOWS FROM FINANCING ACTIVITIES:
    
    
      Proceeds from debt financing, net of discounts and debt issuance costs
  519 
  474 
      Proceeds from issuance of Series E Preferred Stock
  853 
  - 
      Payments made on notes payable
  (697)
  (100)
      Proceeds from the issuance of common stock, net of costs
  128 
  - 
                        Net cash provided by financing activities
  803 
  374 
 
    
    
NET CHANGE IN CASH AND CASH EQUIVALENTS
  (136)
  - 
CASH AND CASH EQUIVALENTS, beginning of year
  899 
  - 
CASH AND CASH EQUIVALENTS, end of period
 $763 
 $- 
SUPPLEMENTAL SCHEDULE OF:
    
    
Cash paid for:
    
    
      Interest
 $209 
 $- 
NONCASH INVESTING AND FINANCING ACTIVITIES:
    
    
  Issuance of common stock as debt repayment
 $2,529 
 $33 
  Dividends on preferred stock
 $29 
 $- 
  Subscription receivable
 $635 
 $- 
  Warrants exchanged for fixed price warrants
 $67 
 $- 
 
The accompanying notes are an integral part of these consolidated financial statements.
 
 
8
 
 
GUIDED THERAPEUTICS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
  
1. 
ORGANIZATION, BACKGROUND, AND BASIS OF PRESENTATION
 
Guided Therapeutics, Inc. (formerly SpectRx, Inc.), together with its wholly owned subsidiary, InterScan, Inc. (formerly Guided Therapeutics, Inc.), collectively referred to herein as the “Company”, is a medical technology company focused on developing innovative medical devices that have the potential to improve healthcare. The Company’s primary focus is the continued commercialization of its LuViva non-invasive cervical cancer detection device and extension of its cancer detection technology into other cancers, including esophageal. The Company’s technology, including products in research and development, primarily relates to biophotonics technology for the non-invasive detection of cancers.
 
Basis of Presentation
 
All information and footnote disclosures included in the consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States.
 
The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed with the Securities and Exchange Commission (“SEC”) pursuant to Section 13 or 15(d) under the Securities Exchange Act of 1934. In the opinion of management, all adjustments (consisting of normal recurring accruals and other items) considered necessary for a fair presentation have been included.
 
A 1:800 reverse stock split of all of the Company’s issued and outstanding common stock was implemented on March 29, 2019. As a result of the reverse stock split, every 800 shares of issued and outstanding common stock were converted into 1 share of common stock. All fractional shares created by the reverse stock split were rounded to the nearest whole share. The number of authorized shares of common stock did not change. The reverse stock split decreased the Company’s issued and outstanding shares of common stock from 2,652,309,322 shares to 3,319,469 shares as of that date with rounding. See Note 4, Stockholders’ Deficit. Unless otherwise specified, all per share amounts are reported on a post-stock split basis, as of June 30, 2020 and December 31, 2019.
 
The Company’s prospects must be considered in light of the substantial risks, expenses and difficulties encountered by entrants into the medical device industry. This industry is characterized by an increasing number of participants, intense competition and a high failure rate. The Company has experienced net losses since its inception and, as of June 30, 2020, it had an accumulated deficit of approximately $143.6 million. To date, the Company has engaged primarily in research and development efforts and the early stages of marketing its products. The Company may not be successful in growing sales for its products. Moreover, required regulatory clearances or approvals may not be obtained in a timely manner, or at all. The Company’s products may not ever gain market acceptance and the Company may not ever generate significant revenues or achieve profitability. The development and commercialization of the Company’s products requires substantial development, regulatory, sales and marketing, manufacturing and other expenditures. The Company expects operating losses to continue for the foreseeable future as it continues to expend substantial resources to complete development of its products, obtain regulatory clearances or approvals, build its marketing, sales, manufacturing and finance capabilities, and conduct further research and development.
 
Certain prior year amounts have been reclassified in order to conform to the current year presentation.
 
Going Concern
 
The Company’s consolidated financial statements have been prepared and presented on a basis assuming it will continue as a going concern. The factors below raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary from the outcome of this uncertainty.
 
At June 30, 2020, the Company had a negative working capital of approximately $7.8 million, accumulated deficit of $143.6 million, and net loss of $4.0 million for the six months then ended (the net loss was in part the result of a $2.5 million change in fair value of warrants that was recorded in the period). Stockholders’ deficit totaled approximately $16.4 million at June 30, 2020, primarily due to recurring net losses from operations, deemed dividends on warrants and preferred stock, offset by proceeds from the exercise of options and warrants and proceeds from sales of stock.
 
 
 
9
 
 
The Company has taken steps to improve its going concern opinion, including:
 
● 
During the end of 2019 and beginning of 2020, the Company was able to raise $4.0 million in equity and debt investments;
● 
The Company has executed several exchange agreements that converted to approximately $2.3 million of debt for equity, as well as eliminate some existing debt;
● 
Subsequent to June 30, 2020, the Company uplisted to the Over the Counter (OTC) bulletin board;
 
If sufficient capital cannot be raised during 2020, the Company will continue its plans of curtailing operations by reducing discretionary spending and staffing levels and attempting to operate by only pursuing activities for which it has external financial support. However, there can be no assurance that such external financial support will be sufficient to maintain even limited operations or that the Company will be able to raise additional funds on acceptable terms, or at all. In such a case, the Company might be required to enter into unfavorable agreements or, if that is not possible, be unable to continue operations, and to the extent practicable, liquidate and/or file for bankruptcy protection.
 
The Company had warrants exercisable for approximately 28.3 million shares of its common stock outstanding at June 30, 2020, with exercise prices ranging between $0.04 and $1.82 per share. Exercises of in the money warrants would generate a total of approximately $5.0 million in cash, assuming full exercise, although the Company cannot be assured that holders will exercise any warrants. Management may obtain additional funds through the public or private sale of debt or equity, and grants, if available.
 
2.   SIGNIFICANT ACCOUNTING POLICIES
 
Use of Estimates
 
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant areas where estimates are used include the allowance for doubtful accounts, inventory valuation and input variables for Black-Scholes, Monte Carlo simulations and binomial calculations. The Company uses the Monte Carlo simulations and binomial calculations in the calculation of the fair value of the warrant liabilities and the valuation of embedded conversion options and freestanding warrants.
 
Principles of Consolidation
 
The accompanying consolidated financial statements include the accounts of Guided Therapeutics, Inc. and its wholly owned subsidiary. All intercompany transactions are eliminated.
 
Accounting Standard Updates
 
Recently Adopted Accounting Pronouncements
 
In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires that expected credit losses relating to financial assets are measured on an amortized cost basis and available-for-sale debt securities be recorded through an allowance for credit losses. ASU 2016-13 limits the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value and also requires the reversal of previously recognized credit losses if fair value increases. The Company adopted the standard on January 1, 2020. The adoption of ASU 2016-13 did not have a material impact on the Company.
 
In August 2018, the FASB issued Accounting Standards Update No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, or ASU 2018-13. The amendments in ASU 2018-13 eliminate, add, and modify certain disclosure requirements for fair value measurements. The amendments are effective for the Company’s interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted for either the entire ASU or only the provisions that eliminate or modify requirements. The amendments with respect to changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty are to be applied prospectively. All other amendments are to be applied retrospectively to all periods presented. The adoption of ASU 2016-13 did not have a material impact on the Company.
 
 
 
10
 
 
A variety of proposed or otherwise potential accounting standards are currently under consideration by standard-setting organizations and certain regulatory agencies. Because of the tentative and preliminary nature of such proposed standards, management has not yet determined the effect, if any, that the implementation of such proposed standards would have on the Company’s consolidated financial statements.
 
Cash Equivalents
 
The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be a cash equivalent.
 
Accounts Receivable
 
The Company performs periodic credit evaluations of its distributors’ financial conditions and generally does not require collateral. The Company reviews all outstanding accounts receivable for collectability on a quarterly basis. An allowance for doubtful accounts is recorded for any amounts deemed uncollectable. Uncollectibility, is determined based on the determination that a distributor will not be able to make payment and the time frame has exceeded one year. The Company does not accrue interest receivable on past due accounts receivable.
 
Concentrations of Credit Risk
 
The Company, from time to time during the years covered by these consolidated financial statements, may have bank balances in excess of its insured limits. Management has deemed this a normal business risk.
 
Inventory Valuation
 
All inventories are stated at lower of cost or net realizable value, with cost determined substantially on a “first-in, first-out” basis.  Selling, general, and administrative expenses are not inventoried, but are charged to expense when incurred. At June 30, 2020 and December 31, 2019, our inventories were as follows (in thousands):
 
 
 
June 30,
 
 
December 31,
 
 
 
2020
 
 
2019
 
Raw materials
 $784 
 $781 
Work in process
  81 
  81 
Finished goods
  24 
  17 
Inventory reserve
  (838)
  (831)
       Total
 $51 
 $48 
 
    
    
The company periodically reviews the value of items in inventory and provides write-downs or write-offs of inventory based on its assessment of market conditions. Write-downs and write-offs are charged to cost of goods sold.
 
Property and Equipment
 
Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over estimated useful lives of three to seven years. Leasehold improvements are amortized at the shorter of the useful life of the asset or the remaining lease term. Depreciation and amortization expense are included in general and administrative expense on the statement of operations. Expenditures for repairs and maintenance are expensed as incurred. Property and equipment are summarized as follows at June 30, 2020 and December 31, 2019 (in thousands):
 
 
 
June 30,
 
 
December 31,
 
 
 
2020
 
 
2019
 
Equipment
 $1,350 
 $1,349 
Software
  740 
  740 
Furniture and fixtures
  124 
  124 
Leasehold Improvement
  180 
  180 
 
  2,394 
  2,393 
Less accumulated depreciation and amortization
  (2,393)
  (2,393)
            Total
 $1 
 $- 
 
    
    
 
 
11
 
 
Debt Issuance Costs
 
Debt issuance costs are capitalized and amortized over the term of the associated debt. Debt issuance costs are presented in the balance sheet as a direct deduction from the carrying amount of the debt liability consistent with the debt discount.
 
Patent Costs (Principally Legal Fees)
 
Costs incurred in filing, prosecuting, and maintaining patents are recurring, and expensed as incurred. Maintaining patents are expensed as incurred as the Company has not yet received U.S. FDA approval and recovery of these costs is uncertain. Such costs aggregated approximately $4,000 and $10,000 for the six months ended June 30, 2020 and 2019, respectively.
 
Leases
With the implementation of ASU 2016-02, “Leases (Topic 842)”, the Company recorded a lease-right-of-use asset and a lease liability. The implementation required the analysis of certain criteria in determining its treatment. The Company determined that its corporate office lease met those criteria. The Company implemented the guidance using the alternative transition method. Under this alternative, the effective date would be the date of initial application. The Company analyzed the lease at its effective date and calculated an initial lease payment amount of $267,380 with a present value of $213,000 using a 20% discount. As of June 30, 2020, the balance of the lease-right-of-use asset and lease liability was approximately $86,000.
 
The cumulative effect of initially applying the new guidance had an immaterial impact on the opening balance of retained earnings. The Company elected the practical expedients permitted under the transition guidance within the new standards, which allowed the Company to carry forward the historical lease classification.
 
Accrued Liabilities
 
Accrued liabilities are summarized as follows (in thousands):
 
 
June 30,
2020
 
 
December 31,
 2019
 
Compensation
 $1,174 
 $1,123 
Professional fees
  23 
  181 
Interest
  1,361 
  1,603 
Warranty
  2 
  2 
Vacation
  37 
  41 
Preferred dividends
  149 
  120 
Other accrued expenses
  125 
  165 
            Total
 $2,871 
 $3,235 
 
Subscription receivables
 
Cash received from investors for common stock shares that has not completed processing is recorded as a liability to subscription receivables. As of June 30, 2020, the Company had not issued 50,000 common stock shares to an investor. As of June 30, 2020, the outstanding subscription receivable was $5,820. As of December 31, 2019, the Company had reserved 1,270,000 common stock shares in exchange for $635,000.
 
 
 
12
 
Revenue Recognition
 
The Company follows, ASC 606 Revenue from Contracts with Customers establishes a single and comprehensive framework which sets out how much revenue is to be recognized, and when. The core principle is that a vendor should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the vendor expects to be entitled in exchange for those goods or services. Revenue will now be recognized by a vendor when control over the goods or services is transferred to the customer. In contrast, Revenue based revenue recognition around an analysis of the transfer of risks and rewards; this now forms one of a number of criteria that are assessed in determining whether control has been transferred. The application of the core principle in ASC 606 is carried out in five steps: Step 1 – Identify the contract with a customer: a contract is defined as an agreement (including oral and implied), between two or more parties, that creates enforceable rights and obligations and sets out the criteria for each of those rights and obligations. The contract needs to have commercial substance and it is probable that the entity will collect the consideration to which it will be entitled. Step 2 – Identify the performance obligations in the contract: a performance obligation in a contract is a promise (including implicit) to transfer a good or service to the customer. Each performance obligation should be capable of being distinct and is separately identifiable in the contract. Step 3 – Determine the transaction price: transaction price is the amount of consideration that the entity can be entitled to, in exchange for transferring the promised goods and services to a customer, excluding amounts collected on behalf of third parties. Step 4 – Allocate the transaction price to the performance obligations in the contract: for a contract that has more than one performance obligation, the entity will allocate the transaction price to each performance obligation separately, in exchange for satisfying each performance obligation. The acceptable methods of allocating the transaction price include adjusted market assessment approach, expected cost plus a margin approach, and, the residual approach in limited circumstances. Discounts given should be allocated proportionately to all performance obligations unless certain criteria are met and reallocation of changes in standalone selling prices after inception is not permitted. Step 5 – Recognize revenue as and when the entity satisfies a performance obligation: the entity should recognize revenue at a point in time, except if it meets any of the three criteria, which will require recognition of revenue over time: the entity’s performance creates or enhances an asset controlled by the customer, the customer simultaneously receives and consumes the benefit of the entity’s performance as the entity performs, and the entity does not create an asset that has an alternative use to the entity and the entity has the right to be paid for performance to date.
 
Revenue by product line (in thousands):
 
 
Six Months Ended June 30,
 
 
 
2020
 
 
2019
 
Devices
 $- 
 $- 
Disposables
  - 
  2 
Other
  - 
  15 
Warranty
  - 
  2 
            Total
 $- 
 $19 
 
Revenue by geographic location (in thousands):
 
 
Six Months Ended June 30,
 
 
 
2020
 
 
2019
 
Asia
 $- 
 $5 
Europe
  - 
  14 
            Total
 $- 
 $19 
 
Significant Distributors
 
During the six months ended June 30, 2020, the Company did not have any revenues. Accounts receivable, that netted to nil, and were reserved against, were from more than one distributor and represents 100% of the balance as of June 30, 2020. During the six months ended June 30, 2019, revenues were from two distributors and for extended warranties. Revenues from these distributors totaled $19,000 for the period ended June 30, 2019. Accounts receivable, not reserved against, were from one distributor and represents 100% of the balance for the period ended June 30, 2019.
 
Deferred revenue
 
The Company defers payments received as revenue until earned based on the related contracts and applying ASC 606 as required. As of June 30, 2020, and December 31, 2019, the Company had $101,000 in deferred revenue.
 
Research and Development
 
Research and development expenses consist of expenditures for research conducted by the Company and payments made under contracts with consultants or other outside parties and costs associated with internal and contracted clinical trials. All research and development costs are expensed as incurred.
 
Income Taxes
 
The Company uses the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Management provides valuation allowances against the deferred tax assets for amounts that are not considered more likely than not to be realized.
 
13
 
 
 
The Company has entered into an agreed upon payment plan with the IRS for delinquent payroll taxes and also with the Georgia Department of State. The Company is currently in process of setting up a payment arrangement for its delinquent state income taxes with the State of Georgia and the returns are currently under review by state authorities. Although the Company has been experiencing recurring losses, it is obligated to file tax returns for compliance with IRS regulations and that of applicable state jurisdictions. At December 31, 2019, the Company has approximately $76 million of cumulative net operating losses, but it has not filed its Federal tax returns, therefore this number may not be accurate. Once the returns are filed, the net operating losses will be eligible to be carried forward for tax purposes at federal and applicable states level. A full valuation allowance has been recorded related the deferred tax assets generated from the net operating losses.
 
The current corporate tax rates in the U.S. is 21%.
 
Uncertain Tax Positions
 
The Company assesses each income tax position is assessed using a two-step process. A determination is first made as to whether it is more likely than not that the income tax position will be sustained, based upon technical merits, upon examination by the taxing authorities. If the income tax position is expected to meet the more likely than not criteria, the benefit recorded in the financial statements equals the largest amount that is greater than 50% likely to be realized upon its ultimate settlement. At June 30, 2020 and December 31, 2019, there were no uncertain tax positions.
 
Warrants
 
The Company has issued warrants, which allow the warrant holder to purchase one share of stock at a specified price for a specified period of time. The Company records equity instruments including warrants issued to non-employees based on the fair value at the date of issue. The fair value of warrants classified as equity instruments at the date of issuance is estimated using the Black-Scholes Model. The fair value of warrants classified as liabilities at the date of issuance is estimated using the Monte Carlo Simulation or Binomial model.
 
Stock Based Compensation
 
The Company records compensation expense related to options granted to employees and non-employees based on the fair value of the award. Compensation cost is recorded as earned for all unvested stock options outstanding at the beginning of the first year based upon the grant date fair value estimates, and for compensation cost for all share-based payments granted or modified subsequently based on fair value estimates.
 
For the six months ended June 30, 2020 and 2019, share-based compensation for options attributable to employees, non-employees, officers and Board members were approximately nil and $8,000, respectively. These amounts have been included in the Company’s statements of operations. Compensation costs for stock options which vest over time are recognized over the vesting period. As of June 30, 2020, and 2019 the Company did not have any unrecognized compensation costs related to granted stock options that will be recognized.
 
Beneficial Conversion Features of Convertible Securities
 
Conversion options that are not bifurcated as a derivative pursuant to ASC 815 and not accounted for as a separate equity component under the cash conversion guidance are evaluated to determine whether they are beneficial to the investor at inception (a beneficial conversion feature) or may become beneficial in the future due to potential adjustments. The beneficial conversion feature guidance in ASC 470-20 applies to convertible stock as well as convertible debt which are outside the scope of ASC 815. A beneficial conversion feature is defined as a nondetachable conversion feature that is in the money at the commitment date. The beneficial conversion feature guidance requires recognition of the conversion option’s in-the-money portion, the intrinsic value of the option, in equity, with an offsetting reduction to the carrying amount of the instrument. The resulting discount is amortized as a dividend over either the life of the instrument, if a stated maturity date exists, or to the earliest conversion date, if there is no stated maturity date. If the earliest conversion date is immediately upon issuance, the dividend must be recognized at inception. When there is a subsequent change to the conversion ratio based on a future occurrence, the new conversion price may trigger the recognition of an additional beneficial conversion feature on occurrence.
 
 
14
 
 
Derivatives
 
The Company reviews the terms of convertible debt issued to determine whether there are embedded derivative instruments, including embedded conversion options, which are required to be bifurcated and accounted for separately as derivative financial instruments. In circumstances where the host instrument contains more than one embedded derivative instrument, including the conversion option, that is required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument.
 
Bifurcated embedded derivatives are initially recorded at fair value and are then revalued at each reporting date with changes in the fair value reported as non-operating income or expense. When the equity or convertible debt instruments contain embedded derivative instruments that are to be bifurcated and accounted for as liabilities, the total proceeds received are first allocated to the fair value of all the bifurcated derivative instruments. The remaining proceeds, if any, are then allocated to the host instruments themselves, usually resulting in those instruments being recorded at a discount from their face value. The discount from the face value of the convertible debt, together with the stated interest on the instrument, is amortized over the life of the instrument through periodic charges to interest expense.
 
3.   FAIR VALUE OF FINANCIAL INSTRUMENTS
 
The guidance for fair value measurements, ASC 820, Fair Value Measurements and Disclosures, establishes the authoritative definition of fair value, sets out a framework for measuring fair value, and outlines the required disclosures regarding fair value measurements. Fair value is the price that would be received to sell 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. The Company uses a three-tier fair value hierarchy based upon observable and non-observable inputs as follow:
 
 
 
● Level 1 – Quoted market prices in active markets for identical assets and liabilities;
● Level 2 – Inputs, other than level 1 inputs, either directly or indirectly observable; and
● Level 3 – Unobservable inputs developed using internal estimates and assumptions (there is little or no market date) which reflect those that market participants would use.
 
 
The Company records its derivative activities at fair value, which consisted of warrants as of June 30, 2020. The fair value of the warrants was estimated using the Binomial Simulation model. Gains and losses from changes to derivatives are included in change in fair value of warrants in the statement of operations. The fair value of the Company’s derivative warrants is classified as a Level 3 measurement, since unobservable inputs are used in the valuation.
 
The following table presents the fair value for those liabilities measured on a recurring basis as of June 30, 2020 and December 31, 2019: 
 
 
 
15
 
 
FAIR VALUE MEASUREMENTS (In Thousands)
 
The following is summary of items that the Company measures at fair value on a recurring basis:
 
 
 
Fair Value at June 30, 2020
 
 
 
Level 1
 
 
Level 2
 
 
Level 3
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Warrants issued in connection with Short-term loans
  - 
  - 
  (138)
  (138)
Warrants issued in connection with Long-term loans
  - 
  - 
  (3,512)
  (3,512)
Warrants issued in connection with Senior Secured Debt
  - 
  - 
  (3,926)
  (3,926)
Bifurcated conversion option in connection with Auctus $700,000 loan on December 17, 2019
  - 
  - 
  - 
  - 
            Total long-term liabilities at fair value
 $- 
 $- 
 $(7,576)
 $(7,576)
 
 
 
Fair Value at December 31, 2019
 
 
 
Level 1
 
 
Level 2  
 
 
Level 3
 
 
Total
 
 
 
 
 
 
   
 
 
 
 
 
 
 
Warrants issued in connection with Distributor Debt
  - 
  - 
  (114)
  (114)
Warrants issued in connection with Short-term loans
  - 
  - 
  (83)
  (83)
Warrants issued in connection with Long-term loans
  - 
  - 
  (893)
  (893)
Warrants issued in connection with Senior Secured Debt
  - 
  - 
  (4,002)
  (4,002)
Bifurcated conversion option in connection with Auctus $700,000 loan on December 17, 2019
  - 
  - 
  - 
  - 
            Total long-term liabilities at fair value
 $- 
 $- 
 $(5,092)
 $(5,092)
 
The following is a summary of changes to Level 3 instruments during the six months ended June 30, 2020:
 
 
 
 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 
 
 
Distributor Debt
 
 
Short-Term Loans
 
 
Senior Secured Debt
 
 
Long-Term Loans
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, December 31, 2019
 
 $(114)
 $(83)
 $(4,002)
 $(893)
 $(5,092)
Warrants exchanged for fixed price warrants
  67 
  - 
  - 
  - 
  67 
Change in fair value during the year
  47 
  (55)
  76 
  (2,619)
  (2,551)
Balance, June 30, 2020
 $- 
 $(138)
 $(3,926)
 $(3,512)
 $(7,576)
 
As of June 30, 2020, the fair value of warrants was approximately $7.6 million. A net change of approximately $2.6 million has been recorded to the accompanying statement of operations for the six months ended June 30, 2020.
 
4.  STOCKHOLDERS’ DEFICIT
 
Common Stock
 
The Company has authorized 3,000,000,000 shares of common stock with $0.001 par value, of which 12,764,629 were issued and outstanding as of June 30, 2020. As of December 31, 2019, there were 3,000,000,000 authorized shares of common stock, of which 3,319,469 were issued and outstanding.
 
For the six months ended June 30, 2020, the Company issued 9,445,160 shares of common stock as listed below:
 
Exchange of Debt for common stock shares and warrants
  7,957,013 
Shares issued for manufacturing agreements
  12,147 
Investments
  1,476,000 
Issued during the six months ended June 30, 2020
  9,445,160 
 
Summary table of common stock share transactions:
 
Balance at December 31, 2019
  3,319,469 
Issued in 2020
  9,445,160 
Balance at June 30, 2020
  12,764,629 
 
 
 
16
 
 
Investments
 
During June 2020, the Company received equity investments in the amount of $853,000. These investors received a total of 853 Series E preferred stock (if the Investor elects to convert their Series E preferred stock, each Series E preferred stock shares converts into 4,000 shares of the Company’s common stock shares).
 
During January and April 2020, the Company received equity investments in the amount of $128,000. These investors received a total of 256,000 common stock shares and 256,000 warrants issued to purchase common stock shares at a strike price of $0.25, 256,000 warrants to purchase common stock shares at a strike price of $0.75 and 128 Series D preferred stock (if the Investor elects to convert their Series D preferred stock, each Series D preferred stock shares converts into 3,000 shares of the Company’s common stock shares). Of the amount invested $38,000 was from related parties.