BioCorRx Inc

Previous wording

Grant receivables were $109,736 and $76,266 as of June 30, 2024 and December 31, 2023, respectively. Deferred revenues related to the grant were $0 as of June 30, 2024 and December 31, 2023. $518,667 and $248,006 were recorded as grant income during the three months ended June 30, 2024 and 2023, respectively. $631,630 and $489,155 were recorded as grant income during the six months ended June 30, 2024 and 2023, respectively.

Current wording

Grant receivables were $314,170 and $76,266 as of September 30, 2024 and December 31, 2023, respectively. Deferred revenues related to the grant were $0 as of September 30, 2024 and December 31, 2023. $572,777 and $300,985 were recorded as grant income during the three months ended September 30, 2024 and 2023, respectively. $1,204,407 and $790,140 were recorded as grant income during the nine months ended September 30, 2024 and 2023, respectively.

Previous wording

On January 25, 2023, the Company issued an unsecured promissory note payable to a third party for $50,000 with principal and interest due January 25, 2024, with a stated interest rate of 12.5% per annum. The interest rate was increased to 20% on January 26, 2024 due to default. Under the terms of the note the Company shall pay quarterly interest payments of $1,563. The balance outstanding as of June 30, 2024 and December 31, 2023 was $50,000. The interest expense during the three months ended June 30, 2024 and 2023 was $2,493 and $1,558, respectively. The interest expense during the six months ended June 30, 2024 and 2023 was $4,729 and $2,688, respectively. The Company made interest payments of $0 and $1,563 during the six months ended June 30, 2024 and 2023, respectively. As additional consideration for the loan the Company issued 4,285 shares of common stock and valued at $6,000, which was recognized as debt discount. During the three months ended June 30, 2024 and 2023, the Company amortized $0 and $1,495 of debt discount as interest expense, respectively. During the six months ended June 30, 2024 and 2023, the Company amortized $395 and $2,580 of debt discount as interest expense, respectively.

Current wording

On January 25, 2023, the Company issued an unsecured promissory note payable to a third party for $50,000 with principal and interest due January 25, 2024, with a stated interest rate of 12.5% per annum. The interest rate was increased to 20% on January 26, 2024 due to default. Under the terms of the note the Company shall pay quarterly interest payments of $1,563. The balance outstanding as of September 30, 2024 and December 31, 2023 was $50,000. The interest expense during the three months ended September 30, 2024 and 2023 was $2,521 and $1,576, respectively. The interest expense during the nine months ended September 30, 2024 and 2023 was $7,250 and $4,264, respectively. The Company made an interest payment of $1,563 and $3,125, respectively, during the nine months ended September 30, 2024 and 2023. As additional consideration for the loan the Company issued 4,285 shares of common stock and valued at $6,000, which was recognized as debt discount. During the three months ended September 30, 2024 and 2023, the Company amortized $0 and $1,513 of debt discount as interest expense, respectively. During the nine months ended September 30, 2024 and 2023, the Company amortized $395 and $4,093 of debt discount as interest expense, respectively.

Previous wording

On September 6, 2023, the Company issued an unsecured promissory note payable to one third party for $150,000 with principal and interest due September 6, 2024, with a stated interest rate of 8% per annum. The third party has the option to select the repayment in cash or in stock of the Company at $2.00 per share. The balance outstanding as of June 30, 2024 and December 31, 2023 was $150,000. The interest expense during the three months ended June 30, 2024 was $2,992. The interest expense during the six months ended June 30, 2024 was $5,984. If the Company fails to make any payment due under the terms of the promissory note, the interest rate shall increase to 15% per annum. In connection with the issuance of the promissory note, the Company issued the warrant that entitles the third party to purchase 150,000 common shares. The warrant shall have a term of three years with an exercise price of $2.00 and shall be equitably adjusted to offset the effect of any stock splits and similar events. The Company allocated the proceeds based on the relative fair value of the debt and the warrants, resulting in the recognition of $88,820 of debt discount on such promissory note. As additional consideration for the debt, the Company issued 18,000 shares of common stock valued at $30,240, which was also recognized as debt discount. During the three months ended June 30, 2024, the Company amortized $29,683 of debt discount as interest expense. During the six months ended June 30, 2024, the Company amortized $59,367 of debt discount as interest expense.

Current wording

On September 6, 2023, the Company issued an unsecured promissory note payable to one third party for $150,000 with principal and interest due September 6, 2024, with a stated interest rate of 8% per annum. The interest rate was increased to 15% on September 6, 2024 due to default. The third party has the option to select the repayment in cash or in stock of the Company at $2.00 per share. The balance outstanding as of September 30, 2024 and December 31, 2023 was $150,000. The interest expense during the three months ended September 30, 2024 and 2023 was $3,715 and $822, respectively. The interest expense during the nine months ended September 30, 2024 was $9,699 and $822, respectively. In connection with the issuance of the promissory note, the Company issued the warrant that entitles the third party to purchase 150,000 common shares. The warrant shall have a term of three years with an exercise price of $2.00 and shall be equitably adjusted to offset the effect of any stock splits and similar events. The Company allocated the proceeds based on the relative fair value of the debt and the warrants, resulting in the recognition of $88,820 of debt discount on such promissory note. As additional consideration for the debt, the Company issued 18,000 shares of common stock valued at $30,240, which was also recognized as debt discount. During the three months ended September 30, 2024 and 2023, the Company amortized $21,529 and $8,155 of debt discount as interest expense, respectively. During the nine months ended September 30, 2024, the Company amortized $80,896 and $8,155 of debt discount as interest expense, respectively.

Previous wording

On November 10, 2023, the Company issued an unsecured promissory note payable to a third party with principal and interest due August 10, 2024, with a stated interest rate of 8% per annum. The cash proceeds of the promissory note was $200,000, and the principal amount of the promissory note was $220,000. Upon the occurrence of any event of default that has not been cured within 30 calendar days from the date of the event of default, the outstanding balance shall immediately increase to 125% of the outstanding balance immediately prior to the occurrence of the event of default. The fair value of the event of default penalty put option, which was $26,730, was recognized as a derivative liability and debt discount on the consolidated balance sheet at issuance date. The balance outstanding as of June 30, 2024 and December 31, 2023 was $220,000. The interest expense during the three months ended June 30, 2024 was $6,365. The interest expense during the six months ended June 30, 2024 was $10,753. In connection with the issuance of the promissory note, the Company issued the warrant that entitles the third party to purchase 200,000 common shares. The warrant shall have a term of four years with an exercise price of $2.00 and shall be equitably adjusted to offset the effect of any stock splits and similar events. As additional consideration for the debt, the Company issued 24,000 shares of common stock valued at $36,480. The Company allocated the proceeds based on the relative fair value of the debt, the warrants and the stock, resulting in the recognition of $140,355 of debt discount on such promissory note. On March 8, 2024, the Company entered into an amendment agreement to such promissory note. In accordance with the amendment, the parties agreed to modify the amortization payments of the unsecured promissory note. In exchange for the modification, the Company issued 15,000 shares of restricted stock to the debt holder at $1.00 per share for a total value of $15,000, which was recognized as debt discount. During the three months ended June 30, 2024, the Company amortized $64,299 of debt discount as interest expense. During the six months ended June 30, 2024, the Company amortized $122,016 of debt discount as interest expense.

Current wording

On November 10, 2023, the Company issued an unsecured promissory note payable to a third party with principal and interest due August 10, 2024, with a stated interest rate of 8% per annum. The cash proceeds of the promissory note was $200,000, and the principal amount of the promissory note was $220,000. Upon the occurrence of any event of default that has not been cured within 30 calendar days from the date of the event of default, the outstanding balance shall immediately increase to 125% of the outstanding balance immediately prior to the occurrence of the event of default. The fair value of the event of default penalty put option, which was $26,730, was recognized as a derivative liability and debt discount on the consolidated balance sheet at issuance date. In connection with the issuance of the promissory note, the Company issued the warrant that entitles the third party to purchase 200,000 common shares. The warrant shall have a term of four years with an exercise price of $2.00 and shall be equitably adjusted to offset the effect of any stock splits and similar events. As additional consideration for the debt, the Company issued 24,000 shares of common stock valued at $36,480. The Company allocated the proceeds based on the relative fair value of the debt, the warrants and the stock, resulting in the recognition of $140,355 of debt discount on such promissory note. On March 8, 2024, the Company entered into an amendment agreement to such promissory note. In accordance with the amendment, the parties agreed to modify the amortization payments of the unsecured promissory note. In exchange for the modification, the Company issued 15,000 shares of restricted stock to the debt holder at $1.00 per share for a total value of $15,000, which was recognized as debt discount. On July 11, 2024, the Company entered into a second amendment agreement to such promissory note. In accordance with the second amendment, the parties agreed to modify the maturity date of the note from August 10, 2024 to September 30, 2024. The amortization payments of the note were replaced with a single lump sum payment in the amount of $275,000. The principal and interest of such promissory note shall be convertible into common stock of the Company at $1.50 per share unless the Company does not make a payment on September 30, 2024, in which case the conversion price shall be $0.75. The exercise price of the warrants issued in connection with the original promissory note was amended from $2.00 per share to $1.50 per share unless the Company does not make a note payment on September 30, 2024, in which case the exercise price shall be $1.00 per share. In exchange for the modification, the Company issued 50,000 shares of restricted stock to the debt holder at $0.52 per share for a total value of $26,000. The amendment was treated as an extinguishment of the original debt and an issuance of the new debt, in which a debt extinguishment loss of $52,664 was recognized during the thr…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

On December 8, 2023, the Company issued an unsecured promissory note payable to a third party with principal and interest due September 8, 2024, with a stated interest rate of 8% per annum. The cash proceeds of the promissory note was $200,000, and the principal amount of the promissory note was $220,000. Upon the occurrence of any event of default that has not been cured within 30 calendar days from the date of the event of default, the outstanding balance shall immediately increase to 125% of the outstanding balance immediately prior to the occurrence of the event of default. The fair value of the event of default penalty put option, which was $26,730, was recognized as a derivative liability and debt discount on the consolidated balance sheet at issuance date. The balance outstanding as of June 30, 2024 and December 31, 2023 was $220,000. The interest expense during the three months ended June 30, 2024 was $4,388. The interest expense during the six months ended June 30, 2024 was $8,776. In connection with the issuance of the promissory note, the Company issued the warrant that entitles the third party to purchase 200,000 common shares. The warrant shall have a term of four years with an exercise price of $2.00 and shall be equitably adjusted to offset the effect of any stock splits and similar events. As additional consideration for the debt, the Company issued 24,000 shares of common stock valued at $27,120. The Company allocated the proceeds based on the relative fair value of the debt, the warrants and the stock, resulting in the recognition of $123,270 of debt discount on such promissory note. On March 25, 2024, the Company entered into an amendment agreement to such promissory note. In accordance with the amendment, the parties agreed to modify the amortization payments of the unsecured promissory note. In exchange for the modification, the Company issued 15,000 shares of restricted stock to the debt holder at $0.89 per share for a total value of $13,350, which was recognized as debt discount. During the three months ended June 30, 2024, the Company amortized $56,910 of debt discount as interest expense. During the six months ended June 30, 2024, the Company amortized $107,026 of debt discount as interest expense.

Current wording

On December 8, 2023, the Company issued an unsecured promissory note payable to a third party with principal and interest due September 8, 2024, with a stated interest rate of 8% per annum. The cash proceeds of the promissory note was $200,000, and the principal amount of the promissory note was $220,000. Upon the occurrence of any event of default that has not been cured within 30 calendar days from the date of the event of default, the outstanding balance shall immediately increase to 125% of the outstanding balance immediately prior to the occurrence of the event of default. The fair value of the event of default penalty put option, which was $26,730, was recognized as a derivative liability and debt discount on the consolidated balance sheet at issuance date. In connection with the issuance of the promissory note, the Company issued the warrant that entitles the third party to purchase 200,000 common shares. The warrant shall have a term of four years with an exercise price of $2.00 and shall be equitably adjusted to offset the effect of any stock splits and similar events. As additional consideration for the debt, the Company issued 24,000 shares of common stock valued at $27,120. The Company allocated the proceeds based on the relative fair value of the debt, the warrants and the stock, resulting in the recognition of $123,270 of debt discount on such promissory note. On March 25, 2024, the Company entered into an amendment agreement to such promissory note. In accordance with the amendment, the parties agreed to modify the amortization payments of the unsecured promissory note. In exchange for the modification, the Company issued 15,000 shares of restricted stock to the debt holder at $0.89 per share for a total value of $13,350, which was recognized as debt discount. On August 23, 2024, the Company entered into a second amendment agreement to such promissory note. In accordance with the second amendment, the parties agreed to modify the maturity date of the note from September 8, 2024 to October 31, 2024. The amortization payments of the note were replaced with a single lump sum payment in the amount of $275,000. The principal and interest of such promissory note shall be convertible into common stock of the Company at $1.50 per share unless the Company does not make a payment on October 31, 2024, in which case the conversion price shall be $0.75. The exercise price of the warrants issued in connection with the original promissory note was amended from $2.00 per share to $1.50 per share unless the Company does not make a note payment on October 31, 2024, in which case the exercise price shall be $1.00 per share. In exchange for the modification, the Company issued 50,000 shares of restricted stock to the debt holder at $0.30 per share for a total value of $15,000. The amendment was treated as an extinguishment of the original debt and an issuance of the new debt, in which a debt extinguishment loss of $13,665 was recognized during the thr…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

On March 14, 2024, the Company issued an unsecured promissory note payable to a third party with principal and interest due December 14, 2024, with a stated interest rate of 8% per annum. The cash proceeds of the promissory note was $200,000, and the principal amount of the promissory note was $220,000. Upon the occurrence of any event of default that has not been cured within 30 calendar days from the date of the event of default, the outstanding balance shall immediately increase to 125% of the outstanding balance immediately prior to the occurrence of the event of default. The fair value of the event of default penalty put option, which was $26,730, was recognized as a derivative liability and debt discount on the consolidated balance sheet at issuance date. The balance outstanding as of June 30, 2024 was $220,000. The interest expense during the three months ended June 30, 2024 was $12,440. The interest expense during the six months ended June 30, 2024 was $13,260. In connection with the issuance of the promissory note, the Company issued the warrant that entitles the third party to purchase 200,000 common shares. The warrant shall have a term of four years with an exercise price of $2.00 and shall be equitably adjusted to offset the effect of any stock splits and similar events. As additional consideration for the debt, the Company issued 24,000 shares of common stock valued at $22,080. The Company allocated the proceeds based on the relative fair value of the debt, the warrants and the stock, resulting in the recognition of $115,419 of debt discount on such promissory note. During the three months ended June 30, 2024, the Company amortized $47,039 of debt discount as interest expense. During the six months ended June 30, 2024, the Company amortized $55,826 of debt discount as interest expense.

Current wording

On March 14, 2024, the Company issued an unsecured promissory note payable to a third party with principal and interest due December 14, 2024, with a stated interest rate of 8% per annum. The cash proceeds of the promissory note was $200,000, and the principal amount of the promissory note was $220,000. Upon the occurrence of any event of default that has not been cured within 30 calendar days from the date of the event of default, the outstanding balance shall immediately increase to 125% of the outstanding balance immediately prior to the occurrence of the event of default. The fair value of the event of default penalty put option, which was $26,730, was recognized as a derivative liability and debt discount on the consolidated balance sheet at issuance date. In connection with the issuance of the promissory note, the Company issued the warrant that entitles the third party to purchase 200,000 common shares. The warrant shall have a term of four years with an exercise price of $2.00 and shall be equitably adjusted to offset the effect of any stock splits and similar events. As additional consideration for the debt, the Company issued 24,000 shares of common stock valued at $22,080. The Company allocated the proceeds based on the relative fair value of the debt, the warrants and the stock, resulting in the recognition of $115,419 of debt discount on such promissory note. On July 11, 2024, the Company entered into an amendment agreement to such promissory note. In accordance with the amendment, the parties agreed to modify the amortization payments of the unsecured promissory note. The principal and interest of such promissory note shall be convertible into common stock of the Company at $1.50 per share unless the Company does not make a note payment on September 14, 2024, in which case the conversion price shall be $0.75. The exercise price of the warrants issued in connection with the original promissory note was amended from $2.00 per share to $1.50 per share unless the Company does not make a note payment in September 2024, in which case the exercise price shall be $1.00 per share. In exchange for the modification, the Company issued 50,000 shares of restricted stock to the debt holder at $0.52 per share for a total value of $26,000. The balance outstanding as of September 30, 2024 was $220,000. The interest expense during the three months ended September 30, 2024 was $4,340. The interest expense during the nine months ended September 30, 2024 was $17,600. During the three months ended September 30, 2024, the Company amortized $17,458 of debt discount as interest expense. During the nine months ended September 30, 2024, the Company amortized $73,284 of debt discount as interest expense.

Previous wording

As of June 30, 2024 and December 31, 2023, the Company owed $200,243 and $136,273 advances to Lourdes Felix.

Current wording

As of September 30, 2024 and December 31, 2023, the Company owed $284,772 and $136,273 advances to Lourdes Felix.

Previous wording

Since September 2022, the Company had received an aggregate of $296,426 advances from Louis C Lucido, a member of the Company’s Board of Directors. On August 29, 2023, the Company issued an unsecured promissory note payable to Louis C Lucido for $150,000 with principal and interest due August 29, 2024, with a stated interest rate of 8% per annum. The promissory note, together with all accrued interest, shall be converted into common shares at a conversion price of $2.00 per share on or before August 29, 2024. The interest expense during the three months ended June 30, 2024 was $789. The interest expense during the six months ended June 30, 2024 was $3,781. In connection with the issuance of the promissory note, the Company issued the warrant that entitles Mr. Lucido to purchase 150,000 common shares. The warrant shall have a term of three years with an exercise price of $2.00 and shall be equitably adjusted to offset the effect of any stock splits and similar events. The Company allocated the proceeds based on the relative fair value of the debt and the warrants, resulting in the recognition of $87,724 of debt discount on such promissory note. As additional consideration for the debt, the Company issued 18,000 shares of common stock valued at $29,340, which was also recognized as debt discount. During the three months ended June 30, 2024, the Company amortized $48,110 of debt discount as interest expense. During the six months ended June 30, 2024, the Company amortized $77,295 of debt discount as interest expense. On April 24, 2024, the Company entered into an Exchange Agreement (the “Louis 2024 Exchange Agreement”) with Mr. Lucido, pursuant to which Mr. Lucido agreed to exchange of the promissory note then outstanding of $446,426 and the accrued interest on the promissory note of $7,858 and director fees of $90,000 into the Company’s 460,477 shares of common stock at $1.18 per share. As of June 30, 2024 and December 31, 2023, the outstanding balance of advances from Mr. Lucido and promissory notes issued to Mr. Lucido was $0 and $275,000, respectively.

Current wording

Since September 2022, the Company had received an aggregate of $296,426 advances from Louis C Lucido, a member of the Company’s Board of Directors. On August 29, 2023, the Company issued an unsecured promissory note payable to Louis C Lucido for $150,000 with principal and interest due August 29, 2024, with a stated interest rate of 8% per annum. The promissory note, together with all accrued interest, shall be converted into common shares at a conversion price of $2.00 per share on or before August 29, 2024. The interest expense during the three months ended September 30, 2024 was $0. The interest expense during the nine months ended September 30, 2024 was $3,781. In connection with the issuance of the promissory note, the Company issued the warrant that entitles Mr. Lucido to purchase 150,000 common shares. The warrant shall have a term of three years with an exercise price of $2.00 and shall be equitably adjusted to offset the effect of any stock splits and similar events. The Company allocated the proceeds based on the relative fair value of the debt and the warrants, resulting in the recognition of $87,724 of debt discount on such promissory note. As additional consideration for the debt, the Company issued 18,000 shares of common stock valued at $29,340, which was also recognized as debt discount. During the three months ended September 30, 2024, the Company amortized $0 of debt discount as interest expense. During the nine months ended September 30, 2024, the Company amortized $77,295 of debt discount as interest expense. On April 24, 2024, the Company entered into an Exchange Agreement (the “Louis 2024 Exchange Agreement”) with Mr. Lucido, pursuant to which Mr. Lucido agreed to exchange of the promissory note then outstanding of $446,426 and the accrued interest on the promissory note of $7,858 and director fees of $90,000 into the Company’s 460,477 shares of common stock at a price of $1.18 per share based on the underlying market value of the common stock at the date of issuance. As of September 30, 2024 and December 31, 2023, the outstanding balance of advances from Mr. Lucido and promissory notes issued to Mr. Lucido was $0 and $275,000, respectively.

Previous wording

Total net revenues for the three months ended June 30, 2024 were $4,045 compared with $19,635 for the three months ended June 30, 2023, reflecting a decrease of 79%. Sales/access fees for the three months ended June 30, 2024 and 2023 were $0 and $9,245, respectively, reflecting a decrease of $9,245. The primary reason for the decrease in 2024 is directly related to the decreased number of patients treated at licensed clinics. Distribution rights income for the three months ended June 30, 2024 and 2023 were $4,045 and $8,721, respectively, reflecting a decrease of $4,676. The primary reason for the decrease in distribution rights income was due to the deferred revenues from certain licenses were fully amortized. Membership/program fees for the three months ended June 30, 2024 and 2023 were $0 and $1,669, respectively. The primary reason for the decrease in 2024 was due to the decreased customers of the Company’s UnCraveRx™ Weight Loss Management Program.

Current wording

Total net revenues for the three months ended September 30, 2024 were $0 compared with $10,145 for the three months ended September 30, 2023, reflecting a decrease of 100%. Sales/access fees for the three months ended September 30, 2024 and 2023 were $0 and $390, respectively, reflecting a decrease of $390. The primary reason for the decrease in 2024 is directly related to the decreased number of patients treated at licensed clinics. Distribution rights income for the three months ended September 30, 2024 and 2023 were $0 and $8,817, respectively, reflecting a decrease of $8,817. The primary reason for the decrease in distribution rights income was due to the deferred revenues from certain licenses were fully amortized. Membership/program fees for the three months ended September 30, 2024 and 2023 were $0 and $938, respectively. The primary reason for the decrease in 2024 was due to the decreased customers of the Company’s UnCraveRx™ Weight Loss Management Program.

Previous wording

Total operating expenses for the three months ended June 30, 2024 and 2023 were $1,373,397 and $966,536, respectively, reflecting an increase of $406,861.

Current wording

Total operating expenses for the three months ended September 30, 2024 and 2023 were $1,659,721 and $972,013, respectively, reflecting an increase of $687,708.

Previous wording

The reasons for the increase in 2024 are primarily due to (i) an increase of $297,943 in research and development expense from $238,419 for the three months ended June 30, 2023 to $536,362 for the three months ended June 30, 2024, and (ii) an increase of $259,473 in accounting and legal fees from $111,102 for the three months ended June 30, 2023 to $370,575 for the three months ended June 30, 2024, and (iii) an increase of $67,015 in stock based compensation from $78,244 for the three months ended June 30, 2023 to $145,259 for the three months ended June 30, 2024, partially offset by (i) a decrease of $94,201 in payroll expense, from $200,546 for the three months ended June 30, 2023 to $106,345 for the three months ended June 30, 2024, and (ii) a decrease of $35,045 in consulting expense, from $159,718 for the three months ended June 30, 2023 to $124,673 for three months ended June 30, 2024.

Current wording

The reasons for the increase in 2024 are primarily due to (i) an increase of $509,056 in stock based compensation from $81,330 for the three months ended September 30, 2023 to $590,386 for the three months ended September 30, 2024, (ii) an increase of $234,419 in accounting and legal fees from $72,355 for the three months ended September 30, 2023 to $306,774 for the three months ended September 30, 2024, and (iii) an increase of $173,176 in research and development expense from $286,962 for the three months ended September 30, 2023 to $460,138 for the three months ended September 30, 2024, partially offset by a decrease of $100,195 in payroll expense, from $196,510 for the three months ended September 30, 2023 to $96,316 for the three months ended September 30, 2024.

Previous wording

Interest expense - related parties for the three months ended June 30, 2024 and 2023 were $203,549 and $162,825, respectively. The increase is mainly due to the full amortization of debt discount upon the conversion of one promissory note into shares of common stock during the three months ended June 30, 2024.

Current wording

Interest expense - related parties for the three months ended September 30, 2024 and 2023 were $158,267 and $169,582, respectively. The decrease is mainly due to the full amortization of debt discount upon the conversion of one promissory note into shares of common stock during 2024.

Previous wording

Interest expense for the three months ended June 30, 2024 and 2023 were $317,907 and $27,489, respectively. The increase is mainly due to (i) the issuance of four note payables with a stated interest rate of 8% per annum, (ii) the increased interest rates due to default on two note payables, and (iii) the accrued interest owed to Pellecome.

Current wording

Interest expense for the three months ended September 30, 2024 and 2023 were $148,999 and $36,883, respectively. The increase is mainly due to (i) the issuance of four note payables after September 30, 2023, (ii) the increased interest rates due to default on three note payables, and (iii) the accrued interest owed to Pellecome.

Previous wording

During the three months ended June 30, 2024 and 2023, the Company recognized grant income of $518,667 as compared to $248,006 for the comparable period last year. (i) The increase in grant income in 2024 was due to on March 1, 2024 the Company’s subsidiary BioCorRx Pharmaceuticals Inc received a Notice of Award from the United States Department of Health and Human Services for a grant from National Institute on Drug Abuse U01 for the Methamphetamine Use Disorder Studies. The grant provides for $4,131,122 in funding during the first year subjects to terms and conditions specified in the grant, including satisfactory progress of project and availability of funds and, (ii) On May 7, 2021, the FDA cleared the Company’s Investigational New Drug Application (IND) application for BICX104. On August 27, 2021, the Company received a Notice of Award from the United States Department of Health and Human Services for a grant from National Institute on Drug Abuse. The grant provides for $3,453,367 in funding during the third year subject to the terms and conditions specified in the grant, including satisfactory progress of project and the availability of funds. On March 31, 2022, the Company received a Notice of Award from the United States Department of Health and Human Services for a grant from National Institute on Drug Abuse. The grant provides for $99,431 in additional funding during the third year subject to the terms and conditions specified in the grant, including satisfactory progress of project and the availability of funds. The funds are available to reimburse the Company for certain incurred direct costs and 17% of indirect costs. Indirect costs are costs that are not directly related to the project itself but are required to conduct the research and are critical to the success of the project and organization as a whole.

Current wording

(i) on May 7, 2021, the FDA cleared the Company’s Investigational New Drug Application (IND) application for BICX104. On August 27, 2021, the Company received a Notice of Award from the United States Department of Health and Human Services for a grant from National Institute on Drug Abuse UH3. The grant provides for $3,453,367 in funding during the third year subject to the terms and conditions specified in the grant, including satisfactory progress of project and the availability of funds. On March 31, 2022, the Company received a Notice of Award from the United States Department of Health and Human Services for a grant from National Institute on Drug Abuse. The grant provides for $99,431 in additional funding during the third year subject to the terms and conditions specified in the grant, including satisfactory progress of project and the availability of funds. The funds are available to reimburse the Company for certain incurred direct costs and 17% of indirect costs. Indirect costs are costs that are not directly related to the project itself but are required to conduct the research and are critical to the success of the project and organization as a whole.

Previous wording

For the three months ended June 30, 2024, the Company experienced a net loss of $1,233,996 compared with a net loss of $923,547 for the three months ended June 30, 2023. The increase in net loss is primarily due to the increased operating expense and interest expenses, net of increased grant income.

Current wording

For the three months ended September 30, 2024, the Company experienced a net loss of $1,513,010 compared with a net loss of $867,348 for the three months ended September 30, 2023. The increase in net loss is primarily due to the increased operating expense and interest expenses, net of increased grant income.

Previous wording

Total net revenues for the six months ended June 30, 2024 were $7,665 compared with $60,077 for the six months ended June 30, 2023, reflecting a decrease of 87%. Sales/access fees for the six months ended June 30, 2024 and 2023 were $2,205 and $10,255, respectively, reflecting a decrease of $8,050. The primary reason for the decrease in 2024 is directly related to the decreased number of patients treated at licensed clinics. Project support income for the six months ended June 30, 2024 and 2023 were $0 and $25,817, respectively, reflecting a decrease of $25,817. The project support income is generated from administrative support to Biotechnology research customers, which is recognized upon the transfer of promised goods to customers. The primary reason for the decrease in 2024 is directly related to the development of the new revenue stream during 2022 which ceased in January 2023. Distribution rights income for the six months ended June 30, 2024 and 2023 were $4,045 and $17,347, respectively, reflecting a decrease of $13,302. The primary reason for the decrease in distribution rights income was due to the deferred revenues from certain licenses were fully amortized. Membership/program fees for the six months ended June 30, 2024 and 2023 were $1,415 and $6,658, respectively. The primary reason for the decrease in 2024 was due to the decreased customers of the Company’s UnCraveRx™ Weight Loss Management Program.

Current wording

Total net revenues for the nine months ended September 30, 2024 were $7,665 compared with $70,222 for the nine months ended September 30, 2023, reflecting a decrease of 89%. Sales/access fees for the nine months ended September 30, 2024 and 2023 were $2,205 and $10,645, respectively, reflecting a decrease of $8,440. The primary reason for the decrease in 2024 is directly related to the decreased number of patients treated at licensed clinics. Project support income for the nine months ended September 30, 2024 and 2023 were $0 and $25,817, respectively, reflecting a decrease of $25,817. The project support income is generated from administrative support to Biotechnology research customers, which is recognized upon the transfer of promised goods to customers. The primary reason for the decrease in 2024 is directly related to the development of the new revenue stream during 2022 which ceased in January 2023. Distribution rights income for the nine months ended September 30, 2024 and 2023 were $4,045 and $26,164, respectively, reflecting a decrease of $22,119. The primary reason for the decrease in distribution rights income was due to the deferred revenues from certain licenses were fully amortized. Membership/program fees for the nine months ended September 30, 2024 and 2023 were $1,415 and $7,596, respectively. The primary reason for the decrease in 2024 was due to the decreased customers of the Company’s UnCraveRx™ Weight Loss Management Program.

Previous wording

Total operating expenses for the six months ended June 30, 2024 and 2023 were $2,345,709 and $2,063,293, respectively, reflecting an increase of $282,416.

Current wording

Total operating expenses for the nine months ended September 30, 2024 and 2023 were $4,005,430 and $3,035,306, respectively, reflecting an increase of $970,124.

Previous wording

The reasons for the increase in 2024 are primarily due to (i) an increase of $293,690 in accounting and legal fees from $313,457 for the six months ended June 30, 2023 to $607,148 for the six months ended June 30, 2024, (ii) an increase of $274,390 in research and development expense from $475,806 for the six months ended June 30, 2023 to $750,196 for the six months ended June 30, 2024, and (iii) an increase of $142,553 in stock based compensation from $157,461 for the six months ended June 30, 2023 to $300,013 for the six months ended June 30, 2024, partially offset by (i) a decrease of $190,077 in payroll expense, from $406,625 for the six months ended June 30, 2023 to $216,549 for the six months ended June 30, 2024, (ii) a decrease of $63,356 in consulting expense, from $326,511 for the six months ended June 30, 2023 to $263,155 for six months ended June 30, 2024, (iii) a decrease of $47,980 in impairment of intellectual property from $47,980 for the six months ended June 30, 2023 to $0 for the six months ended June 30, 2024, and (iv) a decrease of $38,578 in advertising expenses from $62,786 for the six months ended June 30, 2023 to $24,208 for the six months ended June 30, 2024.

Current wording

(i) an increase of $651,609 in stock based compensation from $238,791 for the nine months ended September 30, 2023 to $890,400 for the nine months ended September 30, 2024, (ii) an increase of $528,110 in accounting and legal fees from $385,813 for the nine months ended September 30, 2023 to $913,922 for the nine months ended September 30, 2024, and (iii) an increase of $447,566 in research and development expense from $762,768 for the nine months ended September 30, 2023 to $1,210,334 for the nine months ended September 30, 2024, partially offset by (i) a decrease of $290,271 in payroll expense, from $603,136 for the nine months ended September 30, 2023 to $312,864 for the nine months ended September 30, 2024, (ii) a decrease of $101,369 in consulting expense, from $498,535 for the nine months ended September 30, 2023 to $397,166 for nine months ended September 30, 2024, (iii) a decrease of $58,557 in advertising expenses from $88,633 for the nine months ended September 30, 2023 to $30,076 for the nine months ended September 30, 2024, (iv) a decrease of $47,980 in impairment of intellectual property from $47,980 for the nine months ended September 30, 2023 to $0 for the nine months ended September 30, 2024, and (v) a decrease of $46,254 in rent expenses from $107,326 for the nine months ended September 30, 2023 to $61,072 for the nine months ended September 30, 2024.

Previous wording

Interest expense - related parties for the six months ended June 30, 2024 and 2023 were $390,377 and $332,205, respectively. The increase is mainly due to the fully amortization of debt discount upon the conversion of one promissory note into shares of common stock during the six months ended June 30, 2024.

Current wording

Interest expense - related parties for the nine months ended September 30, 2024 and 2023 were $548,644 and $501,787, respectively. The increase is mainly due to the fully amortization of debt discount upon the conversion of one promissory note into shares of common stock during 2024.

Previous wording

Interest expense for the six months ended June 30, 2024 and 2023 were $499,727 and $53,529, respectively. The increase is mainly due to (i) the issuance of four note payables with a stated interest rate of 8% per annum, (ii) the increased interest rates due to default on two note payables, and (iii) the accrued interest owed to Pellecome.

Current wording

Interest expense for the nine months ended September 30, 2024 and 2023 were $648,726 and $90,412, respectively. The increase is mainly due to (i) the issuance of four note payables after September 30, 2023, (ii) the increased interest rates due to default on three note payables, and (iii) the accrued interest owed to Pellecome.

Previous wording

During the six months ended June 30, 2024 and 2023, the Company recognized grant income of $631,630 as compared to $489,155 for the comparable period last year. (i) The increase in grant income in 2024 was due to on March 1, 2024 the Company’s subsidiary BioCorRx Pharmaceuticals Inc received a Notice of Award from the United States Department of Health and Human Services for a grant from National Institute on Drug Abuse U01 for the Methamphetamine Use Disorder Studies. The grant provides for $4,131,122 in funding during the first year subjects to terms and conditions specified in the grant, including satisfactory progress of project and availability of funds. (ii) On May 7, 2021, the FDA cleared the Company’s Investigational New Drug Application (IND) application for BICX104. On August 27, 2021, the Company received a Notice of Award from the United States Department of Health and Human Services for a grant from National Institute on Drug Abuse. The grant provides for $3,453,367 in funding during the third year subject to the terms and conditions specified in the grant, including satisfactory progress of project and the availability of funds. On March 31, 2022, the Company received a Notice of Award from the United States Department of Health and Human Services for a grant from National Institute on Drug Abuse. The grant provides for $99,431 in additional funding during the third year subject to the terms and conditions specified in the grant, including satisfactory progress of project and the availability of funds. The funds are available to reimburse the Company for certain incurred direct costs and 17% of indirect costs. Indirect costs are costs that are not directly related to the project itself but are required to conduct the research and are critical to the success of the project and organization as a whole.

Current wording

(i) On May 7, 2021, the FDA cleared the Company’s Investigational New Drug Application (IND) application for BICX104. On August 27, 2021, the Company received a Notice of Award from the United States Department of Health and Human Services for a grant from National Institute on Drug Abuse UH3. The grant provides for $3,453,367 in funding during the third year subject to the terms and conditions specified in the grant, including satisfactory progress of project and the availability of funds. On March 31, 2022, the Company received a Notice of Award from the United States Department of Health and Human Services for a grant from National Institute on Drug Abuse. The grant provides for $99,431 in additional funding during the third year subject to the terms and conditions specified in the grant, including satisfactory progress of project and the availability of funds. The funds are available to reimburse the Company for certain incurred direct costs and 17% of indirect costs. Indirect costs are costs that are not directly related to the project itself but are required to conduct the research and are critical to the success of the project and the organization as a whole.

Previous wording

Other miscellaneous income for the six months ended June 30, 2024 and 2023 were $125,059 and $0, respectively. The increase was mainly due to Grant pass-through expenses.

Current wording

Other miscellaneous income for the nine months ended September 30, 2024 and 2023 were $129,822 and $0, respectively. The increase was mainly due to Grant pass-through expenses.

Previous wording

For the six months ended June 30, 2024, the Company experienced a net loss of $2,471,459 compared with a net loss of $1,934,133 for the six months ended June 30, 2023. The increase in net loss is primarily due to the increased operating expense and interest expenses, net of increased grant income.

Current wording

For the nine months ended September 30, 2024, the Company experienced a net loss of $3,984,469 compared with a net loss of $2,801,481 for the nine months ended September 30, 2023. The increase in net loss is primarily due to the increased operating expense and interest expenses, net of increased grant income.

Previous wording

As of June 30, 2024, the Company had cash of $8,365. The following table provides a summary of the Company’s net cash flows from operating, investing, and financing activities.

Current wording

As of September 30, 2024, the Company had cash of $90. The following table provides a summary of the Company’s net cash flows from operating, investing, and financing activities.

Previous wording

The Company has historically sought and continue to seek financing from private sources to move its business plan forward. In order to satisfy the financial commitments, the Company had relied upon private party financing that has inherent risks in terms of availability and adequacy of funding. During the six months ended June 30, 2024 and 2023, the Company received $0 and $900,000, respectively, proceeds from common stock subscription agreements.

Current wording

The Company has historically sought and continue to seek financing from private sources to move its business plan forward. In order to satisfy the financial commitments, the Company had relied upon private party financing that has inherent risks in terms of availability and adequacy of funding. During the nine months ended September 30, 2024 and 2023, the Company received $0 and $900,000, respectively, proceeds from common stock subscription agreements.

Previous wording

Net cash used in operating activities was $491,541 for the six months ended June 30, 2024 compared to $968,898 used in operating activities for the six months ended June 30, 2023. The decrease was primarily due to an increase in operating liabilities of $624,690 and non-cash adjustments of $445,063, net an increase in net loss of $537,326 and an increase in operating assets of $55,070.

Current wording

Net cash used in operating activities was $849,084 for the nine months ended September 30, 2024 compared to $1,319,446 used in operating activities for the nine months ended September 30, 2023. The decrease was primarily due to an increase in operating liabilities of $915,441 and non-cash adjustments of $1,125,352, net an increase in net loss of $1,182,988 and an increase in operating assets of $387,443.

Previous wording

Net cash provided by financing activities decreased by $662,903, from $1,097,587 provided by financing activities for the six months ended June 30, 2023 to $434,684 cash provided by financing activities for the six months ended June 30, 2024.

Current wording

Net cash provided by financing activities decreased by $623,288, from $1,407,240 provided by financing activities for the nine months ended September 30, 2023 to $783,952 cash provided by financing activities for the nine months ended September 30, 2024.

Previous wording

During the six months ended June 30, 2023, the Company entered into three subscription agreements pursuant to which the Company issued an aggregate of 517,001 shares of common stock for gross proceeds of $900,000.

Current wording

During the nine months ended September 30, 2023, the Company entered into three subscription agreements pursuant to which the Company issued an aggregate of 517,001 shares of common stock for gross proceeds of $900,000.

Previous wording

During the six months ended June 30, 2023, the Company issued an unsecured promissory note payable to a third party for $50,000 with principal and interest due January 25, 2024, with a stated interest rate of 12.5% per annum.

Current wording

During the nine months ended September 30, 2023, the Company issued an unsecured promissory note payable to a third party for $50,000 with principal and interest due January 25, 2024. During the nine months ended September 30, 2023, the Company issued an unsecured promissory note payable to one third party for $150,000 with principal and interest due September 6, 2024.

Previous wording

During the six months ended June 30, 2024, the Company received $63,970 advances from Lourdes Felix, and $171,426 advances from Mr. Lucido.

Current wording

During the nine months ended September 30, 2024, the Company received $157,500 advances from Lourdes Felix, and $436,525 advances from Mr. Lucido. During the nine months ended September 30, 2024, the Company repaid $9,000 to Lourdes Felix.

Previous wording

During the six months ended June 30, 2023, the Company received $133,273 advances from Lourdes Felix, and $50,000 advances from Mr. Lucido. During the six months ended June 30, 2023, the Company repaid $35,000 to Lourdes Felix.

Current wording

During the nine months ended September 30, 2023, the Company received $143,273 advances from Lourdes Felix, and $200,000 advances from Mr. Lucido. During the nine months ended September 30, 2023, the Company repaid $35,000 to Lourdes Felix.

Previous wording

The Company’s financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern. This contemplates the realization of assets and the liquidation of liabilities in the normal course of business. As of June 30, 2024, the Company had a working capital deficit of $(7,142,958), and an accumulated deficit of $80,557,140. The Company has not yet generated any significant revenues, and has incurred net losses since inception. These conditions raise substantial doubt about the Company’s ability to continue as a going concern for the next twelve-month period since the date of the financial statements were issued.

Current wording

The Company’s financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern. This contemplates the realization of assets and the liquidation of liabilities in the normal course of business. As of September 30, 2024, the Company had a working capital deficit of $(7,871,228), and an accumulated deficit of $82,044,527. The Company has not yet generated any significant revenues, and has incurred net losses since inception. These conditions raise substantial doubt about the Company’s ability to continue as a going concern for the next twelve-month period since the date of the financial statements were issued.