$NASC

Can B Corp

CIK:0001509957|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenues
Total revenues	$ 15,269	$ 418,957	$ 656,652	$ 1,778,855
Cost of revenues	415,816	1,235,647	2,274,448	2,694,649
Gross profit	(400,547)	(816,690)	(1,617,796)	(915,794)
Selling, general and administrative	2,432,413	2,761,523	5,294,307	5,918,933
Loss on sale of assets			3,142,769
Total operating expenses	2,432,413	2,761,523	8,437,076	5,918,933
Loss from operations	(2,832,960)	(3,578,213)	(10,054,872)	(6,834,727)
Other income (expense):
Change in fair value of warrant liability			1,766	180,468
Interest expense	(430,173)	(585,417)	(1,399,721)	(1,335,799)
Other income (expense)	521	(1,747)	423	68,227
Other income (expense)	(429,652)	(587,164)	(1,397,532)	(1,087,104)
Loss before provision for income taxes	(3,262,612)	(4,165,377)	(11,452,404)	(7,921,831)
Provision for income taxes				9,596
Net loss	$ (3,262,612)	$ (4,165,377)	$ (11,452,404)	$ (7,931,427)
Loss per share - basic	$ (0.05)	$ (0.36)	$ (0.22)	$ (1.08)
Loss per share - dIluted	$ (0.05)	$ (0.36)	$ (0.22)	$ (1.08)
Weighted average shares outstanding - basic	65,435,733	11,589,937	52,526,379	7,358,006
Weighted average shares outstanding - diluted	65,435,733	11,589,937	52,526,379	7,358,006
Product [Member]
Revenues
Total revenues		$ 196,082		$ 1,259,972
Service [Member]
Revenues
Total revenues	$ 15,269	$ 222,875	$ 656,652	$ 518,883

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Operating activities:
Net loss	$ (11,452,404)	$ (7,931,427)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Stock-based compensation	1,163,636	1,451,665
Stock-based wages and salaries		589,216
Depreciation	343,607	1,040,915
Amortization of intangible assets		9,000
Amortization of original-issue-discounts	488,740	522,274
Contract settlement	579,000
Impairment of assets	715,051
Loss on sale of property and equipment	3,142,769
Bad debt expense	1,997,560	38,631
Cancellation of debt		(110,000)
Change in fair value of warrant liability	(1,766)	(180,468)
Stock-based interest expense	97,003	296,633
Stock-based consulting expense		917,694
Changes in operating assets and liabilities:
Accounts receivable	305,806	(64,960)
Inventory	1,463,625	1,239,847
Prepaid expenses	(5,928)	(8,115)
Operating lease right-of-use asset	40,760	140
Other non-current assets	(3,416)
Accounts payable	1,220,983	733,022
Accrued expenses
Net cash provided by (used in) operating activities	95,026	(1,455,933)
Investing activities:
Purchase of property and equipment		(15,000)
Deposits paid	(10,337)	(70,000)
Net cash used in investing activities	(10,337)	(85,000)
Financing activities:
Net proceeds received from notes and loans payable	150,000	2,255,000
Repayments of notes and loans payable	(361,423)	(630,943)
Deferred financing costs		(178,000)
Amounts received from/repaid to related parties, net	100,607	53,000
Net cash (used in) provided by financing activities	(110,816)	1,499,057
Decrease in cash and cash equivalents	(26,127)	(41,876)
Cash and cash equivalents, beginning of period	34,006	73,194
Cash and cash equivalents, end of period	7,879	31,318
Supplemental Cash Flow Information:
Income taxes paid
Interest paid
Non-cash Investing and Financing Activities:
Issuance of common stock in lieu of repayment of notes payable	1,094,764	1,029,942
Issuance of common stock for contract settlement	579,000
Issuance of note payable in connection with note extension	250,000
Issuance of common stock for property and equipment		46,875
Issuance of common stock for payables	584,928
Debt discount associated with convertible note		273,529
Issuance of common stock warrants in connection with convertible promissory note		$ 937,787

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 7,879	$ 34,006
Accounts receivable, less allowance for doubtful accounts of $4,774,088 and $2,818,395, respectively	1,419,978	3,723,344
Inventory	155,917	1,619,542
Prepaid expenses and other current assets	10,065	4,137
Total current assets	1,593,839	5,381,029
Other assets:
Deposits	245,755	235,418
Intangible assets, net		95,144
Property and equipment, net		4,106,283
Right of use assets, net		295,151
Other noncurrent assets	16,555	13,139
Total other assets	262,310	4,745,135
Total assets	1,856,149	10,126,164
Current liabilities:
Accounts payable	2,630,697	1,997,643
Due to related party	457,850	357,243
Notes and loans payable, net	8,555,243	9,372,714
Warrant liabilities		1,766
Operating lease liability - current		254,391
Total current liabilities	11,643,790	11,983,757
Total liabilities	11,643,790	11,983,757
Commitments and contingencies (Note 12)
Stockholders’ equity (deficit):
Common stock, no par value; 1,500,000,000 shares authorized, 70,122,981 and 32,753,196 issued and outstanding at September 30, 2024 and December 31, 2023, respectively	84,818,600	82,459,880
Common stock issuable, no par value; 36,248 shares at September 30, 2024 and December 31, 2023, respectively	119,586	119,586
Treasury stock	(572,678)	(572,678)
Additional paid-in capital	11,559,910	10,396,274
Accumulated deficit	(113,933,102)	(102,480,698)
Total stockholders’ equity (deficit)	(9,787,641)	(1,857,593)
Total liabilities and stockholders’ equity (deficit)	1,856,149	10,126,164
Series A Preferred Stock [Member]
Stockholders’ equity (deficit):
Preferred stock, value	5,320,000	5,320,000
Series C Preferred Stock [Member]
Stockholders’ equity (deficit):
Preferred stock, value	2,900,039	2,900,039
Series D Preferred Stock [Member]
Stockholders’ equity (deficit):
Preferred stock, value	$ 4	$ 4