The following discussion and analysis should be read in conjunction with the
consolidated Financial Statements and Notes thereto appearing elsewhere in this
Currently, the Company is focused on immune modulation for the treatment of
several specific diseases. Immune modulation refers to the ability to upregulate
(make more active) or downregulate (make less active) one’s immune system.
Activating one’s immune system is now an accepted method to cure certain
cancers, reduce recovery time from viral or bacterial infections and to prevent
illness. Additionally, inhibiting one’s immune system is vital for reducing
inflammation, autoimmune disorders and allergic reactions.
Nutraceutical Division – TSI has been producing high quality nutraceuticals. Its
flagship product, ProJuvenol®, is a proprietary mixture containing pterostilbene
– one of the most potent antioxidants known. TSI filed a patent application for
Pterostilbene Containing Compositions”.
future dental laboratory to manufacture and fill prescriptions from dentists who
will use our proprietary Sleep Appliance to treat their patients with mild to
moderate obstructive sleep apnea. The Company needs to seek regulatory approval
for its device to treat sleep apnea. As of
formal operations have not commenced.
Results of Operations
We had a net loss of approximately
Net sales increased
sales of the Company’s nutraceutical line of products.
Cost of goods sold increased
net sales of the Company’s new nutraceutical line of products in 2019 vs 2018.
Operating expenses for the years ended
administrative expenses, decreased salaries, wages and related costs, an
increase in consulting fees, a decrease in legal and accounting fees, and a
decrease in research and development.
General and administrative expenses decreased approximately
respectively. This decrease was mainly due to a decrease in bad debt, marketing
and insurance during the year.
Salaries, wages and related expenses decreased approximately
respectively. This decrease was mainly due to a decrease in officers’ salaries.
Consulting fees increased approximately
the years ended
overall consulting services during 2019.
Legal and professional fees decreased approximately
decrease in overall accounting, patent and general counsel services.
Research and development costs decreased approximately
decrease was mainly due to research and development expenses related to the
Company’s nutraceutical line of products.
Total loss from derivatives liabilities decreased approximately
respectively. This decrease was due to a derivative liability expense from
certain convertible notes in 2019 compared to 2018.
Net interest expense increased approximately
for the years ended
mainly due to increased debt balances.
Liquidity and Capital Resources
We have experienced recurring losses over the past years which have resulted in
accumulated deficits of approximately
significant doubt about the Company’s ability to continue as a going concern.
The Company’s ability to continue as a going concern is contingent upon its
ability to secure additional financing, increase sales of its products and
attain profitable operations. It is the intent of management to continue to
raise additional capital. However, there can be no assurance that the Company
will be able to secure such additional funds or obtain such on terms
satisfactory to the Company, if at all.
There is no guarantee we will receive the required financing to complete our
business strategies, and it is uncertain whether future financing will be
available to us on acceptable terms. If financing is not available on
satisfactory terms, we may be unable to continue, develop or expand our
equivalents, representing an increase in cash and cash equivalents of
from the sale of equity and debt. We anticipate that our current sources of
liquidity, including cash and cash equivalents, together with our current
projections of cash flow from operating activities, will provide us with
liquidity into the third quarter of 2020.
Cash Flows from Operating Activities
Our cash flows from operating activities are significantly affected by our cash
outflows to support the growth of our business in areas such as R&D and G&A
expenses. Our operating cash flows are also affected by our working capital
needs to support personnel related expenditures, accounts payable and other
current assets and liabilities.
During the year ended
partially offset by increases in the various accounts payable and accrued
liability accounts totaling
amortization of debt discount of
During the year ended
and increases in prepaids and other current assets of
right-of-use asset of
including stock-based compensation of
Cash Flows from Financing Activities
During the year ended
activities is mainly attributable to a decrease of
from the sale of common stock due to the Company’s declining stock price. Other
cash flows provided by financing activities during the year ended
provided by financing activities during the year ended
included proceeds from convertible notes payable to third parties totaling
Off-Balance Sheet Arrangements.
We currently do not have any off-balance sheet arrangements.
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