DELAWARE
|
33-0824714
|
(State
of Incorporation)
|
(I.R.S.
Employer Identification No.)
|
8885
Rehco Road, San Diego, California
|
92121
|
(Address
of Principal Executive Offices)
|
(Zip
Code)
|
BIO-MATRIX
SCIENTIFIC GROUP, INC. AND SUBSIDIARIES
|
||||||||
(A
Development Stage Company)
|
||||||||
Condensed
Consolidated Balance Sheet
|
||||||||
as
of
|
as
of
|
|||||||
December
31, 2008
|
September
30, 2008
|
|||||||
(unaudited)
|
||||||||
ASSETS
|
||||||||
CURRENT
ASSETS
|
||||||||
Cash
|
$ | 13,796 | $ | 8,410 | ||||
Securities
Available for sale
|
10,000 | 550,000 | ||||||
Pre-paid
Expenses
|
38,693 | 49,258 | ||||||
Total
Current Assets
|
62,489 | 607,668 | ||||||
PROPERTY
& EQUIPMENT (Net of Accumulated Depreciation)
|
538,868 | 538,868 | ||||||
Other
Assets
|
25,507 | 21,307 | ||||||
TOTAL
ASSETS
|
$ | 626,864 | $ | 1,167,843 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT
LIABILITIES
|
||||||||
Accounts
payable
|
$ | 123,335 | $ | 89,974 | ||||
Notes
Payable
|
336,809 | 111,459 | ||||||
Accrued
Payroll
|
220,500 | 150,000 | ||||||
Accrued
Payroll taxes
|
29,675 | 29,998 | ||||||
Accrued
Interest
|
23,651 | 24,323 | ||||||
Accrued
expenses
|
35,000 | 30,000 | ||||||
Current
Portion of Convertible Note
|
143,400 | |||||||
Current
Portion of Note to Affiliated party
|
1,000 | |||||||
Total
Current Liabilities
|
913,370 | 435,754 | ||||||
LONG
TERM LIABILITIES
|
||||||||
Convertible
Note (Less Current Portion)
|
360,000 | 503,400 | ||||||
Note
to Affiliated Party (Less Curent Portion)
|
500,000 | |||||||
TOTAL
LIABILITIES
|
1,273,370 | 1,439,154 | ||||||
STOCKHOLDERS'
EQUITY
|
||||||||
Preferred
Stock ($.0001 par value)
|
||||||||
20,000,000
shares authorized; 5,668,547 and 4,744,547
|
476 | 567 | ||||||
issued
and outstanding as of September 30, 2008 and December 31,
2008
|
||||||||
Series
AA Preferred Stock ($0.001 par value)
|
||||||||
100,000
shares authorized, 4852 issued and outstanding
|
||||||||
as
of September 30, 2008 and December 31, 2008
|
||||||||
Common
Stock, ($.0001 par value)
|
||||||||
80,000,000
shares authorized; 24,870,869 and 26,102,993
|
||||||||
shares
issued and outstanding as of September 30, 2008 and December 31,
2008
|
2,610 | 2,488 | ||||||
Additional
paid in Capital
|
7,686,148 | 7,631,648 | ||||||
Contributed
Capital
|
499,000 | |||||||
Accumulated
Other Comprehensive Income
|
(490,000 | ) | 50,000 | |||||
Deficit
accumulated during the development stage
|
(8,344,736 | ) | (7,956,014 | ) | ||||
Total
Stockholders' Equity (Deficit)
|
$ | (646,502 | ) | $ | (271,311 | ) | ||
TOTAL
LIABILITIES
|
||||||||
&
STOCKHOLDERS' EQUITY
|
$ | 626,864 | $ | 1,167,843 | ||||
From
Inception
|
||||||||||||
3
Months Ended
|
3
Months Ended
|
(August
2, 2005)
|
||||||||||
December
31, 2008
|
December
31, 2007
|
through
|
||||||||||
December
31, 2008
|
||||||||||||
(unaudited)
|
(unaudited)
|
(unaudited)
|
||||||||||
REVENUES
|
||||||||||||
Sales
|
$ | - | $ | - | $ | - | ||||||
Total
Revenues
|
0 | 0 | 0 | |||||||||
COSTS
AND EXPENSES
|
||||||||||||
Research
and Development
|
43,628 | 34,307 | 701,535 | |||||||||
General
and administrative
|
257,204 | 225,275 | 3,672,408 | |||||||||
Depreciation
and amortization
|
334 | 2,668 | ||||||||||
Consulting
and professional fees
|
62,300 | 142,237 | 3,820,832 | |||||||||
Impairment
of goodwill & intangibles
|
34,688 | |||||||||||
Total
Costs and Expenses
|
363,132 | 402,153 | 8,232,131 | |||||||||
OPERATING
LOSS
|
(363,132 | ) | (402,153 | ) | (8,232,131 | ) | ||||||
OTHER
INCOME & (EXPENSES)
|
||||||||||||
Interest
Expense
|
(25,590 | ) | (3,659 | ) | (112,938 | ) | ||||||
Interest
Income
|
306 | |||||||||||
Other
income
|
100 | |||||||||||
Other
Expense
|
(74 | ) | ||||||||||
Total
Other Income & (Expenses)
|
(25,590 | ) | (3,659 | ) | (112,606 | ) | ||||||
NET
INCOME (LOSS)
|
$ | (388,722 | ) | $ | (405,812 | ) | $ | (8,344,737 | ) | |||
BASIC
AND DILUTED EARNINGS (LOSS) PER SHARE
|
(0.015 | ) | (0.02 | ) | ||||||||
WEIGHTED
AVERAGE NUMBER OF
|
25,257,809 | 23,335,098 | ||||||||||
COMMON
SHARES OUTSTANDING
|
Series
AA
|
Additional
|
Accumulated
|
|||||||||||||||||||||
Preferred
|
Preferred
|
Common
|
Paid-in
|
Retained
|
Contributed
|
Other
|
|||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Earnings
|
Capital
|
Comprehensive
|
Total
|
|||||||||||||
Income
(Loss)
|
|||||||||||||||||||||||
Shares
issued to parent
|
25,000 | 35,921 | 0 | 35,921 | |||||||||||||||||||
Net
Loss August 2, 2005
|
0 | ||||||||||||||||||||||
through
September 30, 2005
|
(1,000 | ) | (1,000 | ) | |||||||||||||||||||
Balance
September 30, 2005
|
25,000 | 35,921 | 0 | (1,000 | ) | 34,921 | |||||||||||||||||
Net
Loss October 1, 2005
|
0 | ||||||||||||||||||||||
through
December 31, 2005
|
(366,945 | ) | (366,945 | ) | |||||||||||||||||||
Balance
December 31, 2005
|
25,000 | 35,921 | 0 | (367,945 | ) | (332,024 | ) | ||||||||||||||||
Recapitalization
|
9,975,000 | (34,921 | ) | 34,921 | 0 | ||||||||||||||||||
Stock
issued Tasco merger
|
2,780,000 | 278 | (278 | ) | 0 | ||||||||||||||||||
Stock
issued for services
|
305,000 | 31 | 759,719 | 759,750 | |||||||||||||||||||
Stock
issued for Compensation
|
300,000 | 30 | 584,970 | 585,000 | |||||||||||||||||||
Net
Loss January 1, 2006
|
|||||||||||||||||||||||
through
September 30, 2006
|
(2,053,249 | ) | (2,053,249 | ) | |||||||||||||||||||
Balance
September 30, 2006
|
13,385,000 | 1,339 | 1,379,332 | (2,421,194 | ) | (1,040,523 | ) | ||||||||||||||||
Stock
issued for services
|
100,184 | 10 | 112,524 | 112,534 | |||||||||||||||||||
Stock
issued for Compensation
|
153,700 | 15 | 101,465 | 101,480 | |||||||||||||||||||
Stock
issued in exchange for canceling debt
|
2,854,505 | 284 | 1,446,120 | 1,446,404 | |||||||||||||||||||
Net
Loss October 1, 2006
|
|||||||||||||||||||||||
through
December 31, 2006
|
(466,179 | ) | (466,179 | ) | |||||||||||||||||||
Balance
December 31, 2006
|
16,493,389 | 1,649 | 3,039,441 | (2,887,373 | ) | 153,717 | |||||||||||||||||
Stock
issued for cash
|
500,000 | 50 | 124,950 | 125,000 | |||||||||||||||||||
Stock
issued for services
|
359,310 | 36 | 235,042 | 235,078 | |||||||||||||||||||
Stock
issued for Compensation
|
143,920 | 14 | 88,400 | 88,414 | |||||||||||||||||||
Stock
issued in exchange for canceling debt
|
500,000 | 50 | 124,950 | 125,000 | |||||||||||||||||||
Net
Loss January 1, 2007
|
|||||||||||||||||||||||
through
March 31, 2007
|
(515,624 | ) | (515,624 | ) | |||||||||||||||||||
Balance
March 31, 2007
|
17,996,619 | 1,800 | 3,612,783 | (3,402,997 | ) | 211,585 | |||||||||||||||||
Stock
issued for cash
|
240,666 | 24 | 60,142 | 60,166 | |||||||||||||||||||
Stock
issued for services
|
406,129 | 41 | 222,889 | 222,930 | |||||||||||||||||||
Stock
issued for Compensation
|
150,000 | 15 | 110,435 | 110,450 | |||||||||||||||||||
Stock
issued in exchange for canceling debt
|
1,316,765 | 132 | 329,059 | 329,191 | |||||||||||||||||||
Net
Loss April 1, 2007
|
|||||||||||||||||||||||
through
June 30, 2007
|
(718,955 | ) | (718,955 | ) | |||||||||||||||||||
Balance
June 30, 2007
|
20,110,179 | 2,011 | 4,335,308 | (4,121,952 | ) | 215,367 | |||||||||||||||||
Stock
issued for cash
|
1,200,000 | 120 | 299,880 | 300,000 | |||||||||||||||||||
Stock
issued for services
|
1,253,000 | 125 | 404,125 | 404,250 | |||||||||||||||||||
Stock
issued for Compensation
|
100,000 | 10 | 24,990 | 25,000 | |||||||||||||||||||
Stock
issued in exchange for canceling debt
|
566,217 | 57 | 143,940 | 143,997 | |||||||||||||||||||
Net
Loss July 1, 2007
|
|||||||||||||||||||||||
through
September 30, 2007
|
(751,989 | ) | (751,989 | ) | |||||||||||||||||||
Balance
September 30, 2007
|
23,229,396 | 2,323 | 5,208,244 | (4,873,941 | ) | 336,626 | |||||||||||||||||
Stock
issued for Cash
|
|||||||||||||||||||||||
Stock
issued for services
|
191,427 | 19 | 62,108 | 62,127 | |||||||||||||||||||
Net
Loss October 1, 2007
|
|||||||||||||||||||||||
through
December 31, 2007
|
(405,812 | ) | (405,812 | ) | |||||||||||||||||||
Balance
December 31, 2007
|
23,420,823 | 2,342 | 5,270,352 | (5,279,753 | ) | (7,059 | ) | ||||||||||||||||
Stock
issued for cash
|
575,000 | 57 | 114,942 | 114,999 | |||||||||||||||||||
Stock
issued for services
|
340,000 | 35 | 146,705 | 15 | 106,651 | 106,701 | |||||||||||||||||
Net
Loss January 1 2008
|
|||||||||||||||||||||||
through
March 31, 2008
|
(417,325 | ) | (417,325 | ) | |||||||||||||||||||
Balance
March 31, 2008
|
915,000 | 92 | 23,567,528 | 2,357 | 5,491,945 | (5,697,078 | ) | (202,684 | ) | ||||||||||||||
Stock
issued for cash
|
2,154,850 | 215 | 672,172 | 672,387 | |||||||||||||||||||
Stock
issued for services
|
1,421,725 | 142 | 232,000 | 23 | 613,439 | 613,604 | |||||||||||||||||
Stock
issued for accrued interest
|
31,245 | 3 | 17,293 | 17,296 | |||||||||||||||||||
Stock
issued as dividend
|
1,075,087 | 108 | (108 | ) | 0 | ||||||||||||||||||
Net
Loss April 1,2008
|
|||||||||||||||||||||||
to
June 30, 2008
|
(1,063,446 | ) | (1,063,446 | ) | |||||||||||||||||||
Balance
June 30, 2008
|
5,566,662 | 557 | 23,830,773 | 2,383 | 6,794,741 | (6,760,524 | ) | 37,158 | |||||||||||||||
Series
AA Stock issued to Officer July 3, 2008
|
4,852 | ||||||||||||||||||||||
Stock
issued for services July 8, 2008
|
905,000 | 91 | 769,159 | 769,250 | |||||||||||||||||||
Stock
issued for Cash July 2, 2008
|
11,667 | 1 | 3,499 | 3,500 | |||||||||||||||||||
Stock
issued for Cash July 25, 2008 (Warrant Exercise)
|
90,000 | 9 | 17,991 | 18,000 | |||||||||||||||||||
Stock
issued for interest between July 30, 2008 and August 30,
2008
|
85,087 | 9 | 21,263 | 21,272 | |||||||||||||||||||
Stock
issued for services September 3, 2008
|
50,000 | 5 | 24,995 | 25,000 | |||||||||||||||||||
Stock
issued due to rounding
|
218 | 9 | |||||||||||||||||||||
Net
Loss July 1, 2008 to September 30, 2008
|
(1,195,491 | ) | (1,195,491 | ) | |||||||||||||||||||
Accumulated
other Comprehensive Income as of September 30, 2008
|
50,000
|
50,000 | |||||||||||||||||||||
Balance
September 30, 2008
|
4,852 | 5,668,547 | 567 | 24,870,869 | 2,488 | 7,631,648 | (7,956,015 | ) |
50,000
|
(271,311 | ) | ||||||||||||
Stock
Retired in connection with
Exchange
for Common Shares
December
2, 2008
|
(1,099,000 | ) | (109 | ) | (109 | ) | |||||||||||||||||
Stock
issued in connection with
Exchange
for Preferred Shares
December
2, 2008
|
1,099,000 | 109 | 109 | ||||||||||||||||||||
Stock
Issued for Interest on December 3, 2008
|
133,124 | 13 | 33,268 | 33,281 | |||||||||||||||||||
Stock
issued for Cash December 31, 2008
|
66,670 | 7 | 6,660 | 6,667 | |||||||||||||||||||
Stock
issued for services December 31, 2008
|
33,330 | 3 | 3,330 | 3,333 | |||||||||||||||||||
Stock
issued for Cash December 31, 2008
|
75,000 | 8 | 11,242 | 11,250 | |||||||||||||||||||
Contributed
capital
|
499,000
|
499,000 | |||||||||||||||||||||
Net
Loss October 1, 2008 to December 31, 2008
|
(388,722 | ) | (388,722 | ) | |||||||||||||||||||
Accumulated
other Comprehensive Income as of December 31, 2008
|
(540,000)
|
(540,000 | ) | ||||||||||||||||||||
Balance
December 31, 2008
|
4,852 | 4,744,547 | 476 | 26,102,993 | 2,610 | 7,686,148 | (8,344,737 | ) |
499,000
|
(490,000)
|
(646,502 | ) |
From
August 2, 2005
|
||||||||||||
(Inception)
|
||||||||||||
3
Months Ended
|
3
months Ended
|
through
|
||||||||||
December
31, 2008
|
December
31, 2007
|
December
31, 2008
|
||||||||||
(unaudited)
|
(unaudited)
|
(unaudited)
|
||||||||||
CASH FLOWS FROM OPERATING
ACTIVITIES
|
||||||||||||
Net
Income (loss)
|
$ | (388,722 | ) | $ | (405,812 | ) | $ | (8,344,737 | ) | |||
Adjustments
to reconcile net loss to net cash (used in) provided
|
||||||||||||
by
operating activities:
|
||||||||||||
Depreciation
expense
|
334 | 2,667 | ||||||||||
Stock
issued for compensation to employees
|
910,342 | |||||||||||
Stock
issued for services rendered by consultants
|
3,333 | 62,128 | 3,314,547 | |||||||||
Stock
issued for interest
|
33,281 | 71,849 | ||||||||||
Changes
in operating assets and liabilities:
|
||||||||||||
(Increase)
decrease in receivables
|
(282 | ) | 0 | |||||||||
(Increase)
decrease in prepaid expenses
|
24,601 | (11,047 | ) | (24,657 | ) | |||||||
Increase
(Decrease) in Accounts Payable
|
33,361 | 34,730 | 123,335 | |||||||||
Increase
(Decrease) in Accrued Expenses
|
60,469 | 56,375 | 324,737 | |||||||||
Net
Cash Provided by (Used in) Operating Activities
|
(233,677 | ) | (263,574 | ) | (3,621,917 | ) | ||||||
CASH FLOWS FROM INVESTING
ACTIVITIES
|
||||||||||||
(
Increase) Decrease in Deposits
|
(4,200 | ) | (25,507 | ) | ||||||||
Purchases
of fixed assets
|
(17,473 | ) | (541,536 | ) | ||||||||
Additions
to Securities Available for Sale
|
(500,000 | ) | ||||||||||
Net
Cash Provided by (Used in) Investing Activities
|
(4,200 | ) | (17,473 | ) | (1,067,043 | ) | ||||||
CASH FLOWS FROM FINANCING
ACTIVITIES
|
||||||||||||
Preferred
Stock issued for cash
|
15 | 297 | ||||||||||
Common
stock issued for cash
|
1,472 | |||||||||||
Additional
Paid in Capital
|
17,902 | 1,346,120 | ||||||||||
Principal
borrowings on Notes and Convertible Debentures
|
225,350 | 121,010 | 1,156,265 | |||||||||
Convertible
notes
|
125,000 | 503,400 | ||||||||||
Contributed
Capital
|
499,000 | 499,000 | ||||||||||
Increase
(Decrease) in Bank Overdraft
|
(7,997 | ) | 0 | |||||||||
Net
borrowings from related parties
|
1,195,196 | |||||||||||
Increase
(Decrease) in Notes from Affiliated party
|
(499,000 | ) | 1000 | |||||||||
Net
Cash Provided by (Used in) Financing Activities
|
243,267 | 238,013 | 4,702,750 | |||||||||
Net
Increase (Decrease) in Cash
|
5,390 | (43,034 | ) | 13,796 | ||||||||
Cash
at Beginning of Period
|
8,410 | 44,110 | 0 | |||||||||
Cash
at End of Period
|
$ | 13,796 | $ | 1,076 | $ | 13,796 | ||||||
Supplemental Cash
Flow Disclosures:
|
||||||||||||
Significant
non-cash activities:
|
||||||||||||
Stock
issued to cancel debt
|
2,044,592 | |||||||||||
Preferred
stock issued for stock dividend
|
108 | |||||||||||
Accumulated
Other Comprehensive income (Loss)
|
(540,000 | ) | (490,000 | ) | ||||||||
Total
|
(540,000 | ) | 1,554,700 | |||||||||
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Estimated
Fair Value
|
|||||||||||||
Corporate
securities
|
500,000 | 50,000 | 540,000 | 10,000 | ||||||||||||
Total
marketable securities
|
$ | 500,000 | $ | 50,000 | $ | 540,000 | $ | 10,000 |
2008
|
2007
|
|||||||||||||||
Weighted
Average
|
Weighted
Average
|
|||||||||||||||
Warrants
|
Exercise
Price
|
Warrants
|
Exercise
Price
|
|||||||||||||
Preferred
Stock
|
(Common)
|
|||||||||||||||
Outstanding
at Beginning of Period
|
11,667
|
0.35
|
200,000
|
4.5
|
||||||||||||
Granted
|
141,670
|
0.13
|
0
|
0
|
||||||||||||
Exercised
|
0
|
0.3
|
||||||||||||||
Expired
Unexercised
|
-11667
|
0.3
|
200,000
|
4.5
|
||||||||||||
Outstanding
at End of period
|
141,670
|
0.13
|
0
|
0
|
Exercise
|
Number
|
Weighted
Average
|
|||||||
Price
|
Outstanding
|
Remaining
Contract Life (Days)
|
|||||||
.10
|
66,670
|
93
|
|||||||
0.15
|
75,000
|
93
|
|||||||
Total
outstanding as of December 31 , 2008
|
141670
|
93
|
As
of December 31 , 2008
|
||||
Deferred
tax assets:
|
||||
Net
operating tax carry forwards
|
$
|
2,84932,40
|
||
Other
|
-0-
|
|||
Gross
deferred tax assets
|
2,,849,320
|
|||
Valuation
allowance
|
(2,848,320)
|
|||
Net
deferred tax assets
|
$
|
-0-
|
Title
|
Estimated
Annual Compensation
|
|||
Director of
Labs
|
$
|
120,000
|
||
Director of
Quality & Assurance
|
$
|
75,000
|
||
Adm.
Director
|
$
|
75,000
|
||
Dir.
Of Engineering / Production
|
$
|
85,000
|
||
Lab
Tech
|
$
|
65,000
|
||
Lab
Tech
|
$
|
65,000
|
||
Customer
Service Representative.
|
$
|
45,000
|
||
Director
of Market & Sales
|
$
|
100,000
|
||
Facility
Manager / Receiving & Shipping
|
$
|
60,000
|
||
Support
Staff
|
$
|
50,000
|
||
Total
|
$
|
740,000
|
31.1
|
Certification
of Chief Executive Officer
|
31.2
|
Certification
of Acting Chief Financial Officer
|
32.1
|
Certification
of Chief Executive Officer under Section 906 of the Sarbanes-Oxley Act of
2002.
|
32.2
|
Certification
of Acting Chief Financial Officer under Section 906 of the Sarbanes-Oxley
Act of 2002.
|
Bio-
Matrix Scientific Group, Inc.
|
|
a
Delaware corporation
|
|
By:
|
/s/
David R. Koos
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David
R. Koos
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Chief
Executive Officer
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Date:
January 30, 2009
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