AFC BUILDING TECHNOLOGIES INC.

CIK:0001533030|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
Income Statement [Abstract]
Revenues	$ 5,000		$ 24,189
Cost of goods sold
Gross profit	5,000		24,189
Operating expenses:
Personnel costs	555,318	869,046	1,760,921	2,360,765
General and administrative	197,195	313,092	717,631	1,099,137
Legal and professional fees	88,168	160,987	469,307	564,226
Depreciation and amortization expense	30,178	30,179	90,536	299,044
Research and development				13,361
Loss on impairment of intangible assets				3,653,043
Loss on impairment of goodwill				1,190,000
Total operating expenses	870,859	1,373,304	3,038,395	9,179,576
Loss from operations	(865,859)	(1,373,304)	(3,014,206)	(9,179,576)
Other income (expenses):
Interest expense – net	(147,504)	(109,302)	(455,924)	(245,566)
Gain / (loss) on foreign exchange	(6,488)	28,740	19,980	10,944
Loss on contingent royalty liability	(82,082)		(1,487,082)
Loss on extinguishment of debt			(338,897)
Total other expenses	(236,074)	(80,562)	(2,261,923)	(234,622)
Net loss before taxes	(1,101,933)	(1,453,866)	(5,276,129)	(9,414,198)
Income taxes
Net loss	$ (1,101,933)	$ (1,453,866)	$ (5,276,129)	$ (9,414,198)
Net loss per common share:
Loss per common share – basic (in Dollars per share)	$ 0	$ (0.01)	$ (0.02)	$ (0.05)
Loss per common share – diluted (in Dollars per share)	$ 0	$ (0.01)	$ (0.02)	$ (0.05)
Weighted average common shares outstanding—basic (in Shares)	236,962,413	207,422,054	222,192,774	205,740,483
Weighted average common shares outstanding— diluted (in Shares)	236,962,413	207,422,054	222,192,774	205,740,483

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (5,276,129)	$ (9,414,198)
Adjustments to reconcile net loss to net cash used in operating activities from continuing operations:
Amortization of debt discount (premium)	92,960	34,964
Depreciation and amortization expense	90,536	299,044
Loss (gain) on foreign exchange related to notes payable	(1,282)	(5,972)
Loss on impairment of goodwill		1,190,000
Loss on impairment of intangible assets		3,653,043
Loss on extinguishment of debt	338,897
Loss on contingent royalty liability	1,487,082
Payment in-kind interest accrued	267,359
Common stock issued for vested RSUs for current period services		131,304
Stock-based compensation for vested RSUs for current period services	78,226	378,508
Stock options issued for current period services	95,387	177,989
Common stock and warrants issued for prior period services	50,000
Common stock issued for current period services		85,738
Change in operating assets and liabilities:
Accounts receivable, net	2,363
Prepaid expenses	(11,881)	(62,194)
Accounts payable and accrued expenses	1,309,780	219,805
Deferred revenue	931,688	100,000
Net cash used in operating activities	(545,014)	(3,211,969)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(103,922)	(25,000)
Purchase of intangible assets		(49,236)
Net cash used in investing activities	(103,922)	(74,236)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable		875,991
Proceeds from issuance of common stock and warrants	783,151	387,642
Proceeds from exercise of stock options		16,000
Net cash used in financing activities	783,151	1,279,633
Net increase (decrease) in cash and cash equivalents	134,215	(2,006,572)
Cash and cash equivalents at beginning of period	49,224	2,016,057
Cash and cash equivalents at end of period	183,439	9,485
Supplemental disclosure of non-cash investing activities:
Purchase of property and equipment on credit	3,252	221,577
Supplemental disclosure of non-cash financing activities:
Debt discount recognized from warrants issued in conjunction with notes payable		244,747
Stock issued for cancellation of debt	$ 339,082

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 183,439	$ 49,224
Accounts receivable, net	6,189	8,552
Prepaid expenses	106,627	94,746
Total current assets	296,255	152,522
Property and equipment, net	787,764	723,072
Intangible assets, net	45,606	96,912
Total assets	1,129,625	972,506
Current liabilities:
Accounts payable and accrued expenses	3,546,243	2,236,462
Deferred revenue, current	886,688	20,000
Deferred revenue, current – related party	80,000
Notes payable, current, net of discount		237,500
Total current liabilities	7,243,076	2,493,962
Deferred revenue, long term	60,000	75,000
Notes payable, net of discount	594,795	597,381
Contingent royalty liability	2,672,082	1,185,000
Total liabilities	10,569,953	6,821,748
Commitments and contingencies (Note 12)
Shareholders’ equity (deficit):
Preferred stock, $0.001 par value, 100,000 shares authorized, no shares issued and outstanding, respectively
Common stock, $0.001 par value, 500,000,000 shares authorized, 237,159,877 and 210,032,401 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively	237,161	210,033
Additional paid-in capital	47,565,896	45,907,981
Accumulated deficit	(57,243,385)	(51,967,256)
Total shareholders’ equity (deficit)	(9,440,328)	(5,849,242)
Total liabilities and shareholders’ equity (deficit)	1,129,625	972,506
Related Party
Current liabilities:
Notes payable, current, net of discount – related party	2,730,145
Notes payable, net of discount – related party		$ 2,470,405