QUANTRX BIOMEDICAL CORP - Quarter Report: 2015 March (Form 10-Q)

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QUANTRX BIOMEDICAL CORPORATION

Nevada		33-0202574
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification Number)

10190 SW 90th Avenue, Tualatin, Oregon 97123

(Address of Principal Executive Offices) (Zip Code)

(212) 980-2235

(Registrant's Telephone Number, Including Area Code)

Large accelerated filer	[   ]	Accelerated filer	[   ]
Non-accelerated filer	[   ]	Smaller reporting company	[X]

 

		PAGE
PART I - FINANCIAL INFORMATION
ITEM 1.	Financial Statements	1
	Consolidated Balance Sheets as of March 31, 2015 (Unaudited) and December 31, 2014	2
	Consolidated Statements of Operations (Unaudited) for the three months ended March 31, 2015 and 2014	3
	Consolidated Statements of Cash Flows (Unaudited) for the three months ended March 31, 2015 and 2014	4
	Condensed Notes to (Unaudited) Consolidated Financial Statements	5
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
ITEM 4.	Controls and Procedures	17
PART II – OTHER INFORMATION
ITEM 1.	Legal Proceedings	18
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	18
ITEM 3.	Defaults Upon Senior Securities	18
ITEM 4.	Mine Safety Disclosures	18
ITEM 5.	Other Information	18
ITEM 6.	Exhibits	18
Signatures		19

 

		March 31,				December 31,
		2015				2014
		(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents		$	189,379			$	218,546
Accounts receivable			155				352
Prepaid expenses			18,938				40,902
Total Current Assets			208,472				259,800
Investments			200,000				200,000
Property and equipment, net			1,918				2,191
Intangible assets, net			26,378				28,521
Total Assets		$	436,768			$	490,512
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current Liabilities:
Accounts payable		$	474,299			$	462,306
Accrued expenses			36,846				42,770
Notes payable, net of discount			1,196,696				1,156,378
Current portion of notes payable			2,255				2,229
Total Current Liabilities			1,710,096				1,663,683
Notes payable, less current portion			41,196				41,771
Total Liabilities			1,751,292				1,705,454
Commitments and Contingencies			-				-
Stockholders’ Equity (Deficit):
Preferred stock; $0.01 par value, 25,000,000 authorized shares; 20,500,000 shares designated as Series B Convertible Preferred Stock; Series B Convertible Preferred shares 16,676,942 issued and outstanding			166,769				166,769
Common Stock; $0.01 par value; 150,000,000 authorized; 65,654,227 and  63,341,163 shares issued and outstanding, respectively			656,542				633,412
Common Stock to be issued			-				63,000
Additional paid-in capital			48,581,982				48,428,724
Accumulated deficit			(50,719,817)				(50,506,847	)
Total Stockholders’ Equity (Deficit)			(1,314,524	)			(1,214,942	)
Total Liabilities and Stockholders’ Equity (Deficit)		$	436,768			$	490,512

 

	Three Months Ended  March 31,
		2015				2014
Revenue:
Revenue		$	156			$	602
Total Revenue			156				602
Costs and Operating Expenses:
Cost of goods sold (excluding depreciation and amortization)			-				241
Sales, general and administrative			95,216				39,994
Professional fees			62,584				43,934
Research and development			13,154				6,098
Amortization			2,143				1,853
Depreciation			273				274
Total Costs and Operating Expenses			173,370				92,394
Loss from Operations			(173,214	)			(91,792	)
Other Income (Expense):
Interest and dividend income			-				1,972
Interest expense			(38,660	)			(21,613	)
Gain on settlement of debt			12,336
Other financing costs			-				(21,760	)
Amortization of debt discount to interest expense			(13,432	)			(49,211	)
Loss on Impairment			-				(1,972	)
Total Other Income (Expense), net			(39,756	)			(92,584	)
Loss Before Taxes			(212,970	)			(184,376	)
Provision for Income Taxes			-				-
Net Loss		$	(212,970	)		$	(184,376	)
Basic and Diluted Net Loss per Common Share		$	(0.00	)		$	(0.00	)
Basic and Diluted Weighted Average Shares Used in per Share Calculation			64,394,509				52,728,644

 

 

Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on previously reported losses, total assets or stockholders equity.

 

 

 

 

 

		March 31,  2015				December 31, 2014
Licensed patents and patent rights		$	50,000			$	50,000
Patents			41,004				41,004
NuRx licensed technology			13,200				13,200
Less: accumulated amortization			(77,826	)			(75,684	)
Intangibles, net		$	26,378			$	28,521

Asset Categories		Estimated Useful Life in Years
Patents			17
Patents under licensing			10
Intangibles acquired in 2008 (weighted average)			15

In connection with the issuance of the 2012 Notes and 2013 Notes, the Company has recorded debt discount and expenses of the beneficial conversion feature of $106,261 and $28,998, respectively.  The Company will amortize these expenses over the life of the 2012 Notes and 2013 Notes.  

		March 31, 2015 (unaudited)				December 31, 2014
Prepaid expenses:
Prepaid insurance		$	16,577			$	24,866
Other			2,361				16,036
Prepaid expenses		$	18,938			$	40,902
Property and equipment:
Computers and office furniture, fixtures and equipment		$	28,031			$	28,031
Machinery and equipment			5,475				5,475
Less: accumulated depreciation			(31,588	)			(31,315	)
Property and equipment, net		$	1,918			$	2,191
Accrued expenses:
Other accrued expenses			36,846				42,770
Accrued expenses		$	36,846			$	42,770

 

 

 

 

 

	●	obtain adequate sources of funding to pay operating expenses and fund long-term business operations;
	●	attract and retain additional executive management;
	●	enter into a licensing or other relationship that allows the Company to commercialize its products;
	●	manage or control working capital requirements by reducing operating expenses; and
	●	develop new and enhance existing relationships with product distributors and other points of distribution for the Company’s products.

 

 

 

Exhibit		Description
10.1		Form of Bridge Note (filed herewith)
31		Certification of Chief Executive Officer and Principal Financial and Accounting Officer required under Rule 13a-14(a) or Rule 15d-14(a) of the Securities and Exchange Act of 1934, as amended.
32		Certification of Chief Executive Officer and Principal Financial and Accounting Officer required under Rule 13a-14(a) or Rule 15d-14(a) of the Securities and Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350.
101.INS		XBRL Instance Document
101.SCH		XBRL Taxonomy Extension Schema
101.CAL		XBRL Taxonomy Extension Calculation Linkbase
101.DEF		XBRL Taxonomy Extension Definition Linkbase
101.LAB		XBRL Taxonomy Extension Label Linkbase
101.PRE		XBRL Taxonomy Extension Presentation Linkbase

 

Date: July 22, 2015	/s/ Shalom Hirschman
	Shalom Hirschman Principal Executive and Financial Officer

 

 

 

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