BRAIN SCIENTIFIC INC.

CIK:0001662382|SEC Filings

Consolidated Statements of Operations and Comprehensive Loss - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Statement [Abstract]
REVENUE	$ 214,564	$ 265,747
COST OF GOODS SOLD	160,239	182,519
GROSS PROFIT	54,325	83,228
OPERATING EXPENSES
Research and development	301,907	329,452
Professional fees	626,578	818,698
Sales and marketing expenses	696,958	1,041,575
Share-based compensation	3,568,461	3,223,674
General and administrative expenses	4,468,828	3,326,306
TOTAL OPERATING EXPENSES	9,662,732	8,739,705
LOSS FROM OPERATIONS	(9,608,407)	(8,656,477)
OTHER INCOME (EXPENSE):
Interest expense	(844,855)	(467,849)
Amortization of debt discount	(2,760,515)	(89,787)
Goodwill impairment	(913,184)
Other income	7,252	1,110
Change in fair market value of derivative liabilities	1,573,792
Gain on forgiveness of paycheck protection loan		112,338
Gain on settlement of debt	201,097
Foreign currency transaction gain/(loss)	962	(21)
TOTAL OTHER INCOME (EXPENSE)	(2,735,451)	(444,209)
LOSS BEFORE INCOME TAXES	(12,343,858)	(9,100,686)
PROVISION FOR INCOME TAXES
NET LOSS	(12,343,858)	(9,100,686)
OTHER COMPREHENSIVE LOSS
Foreign currency translation adjustment	(15)	(3,990)
TOTAL COMPREHENSIVE LOSS	$ (12,343,873)	$ (9,104,676)
NET LOSS PER COMMON SHARE
Basic (in Dollars per share)	$ (12.95)	$ (25.04)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Basic (in Shares)	953,272	363,497

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2022	Dec. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (12,343,858)	$ (9,100,686)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense	804,763	219,833
Amortization of debt discount and non-cash interest expense	2,760,515	89,787
Change in fair market value of derivative liabilities	(1,573,792)
Goodwill impairment	913,184
Gain on forgiveness of paycheck protection loan		(112,338)
Gain on settlement of lease	(1,660)
Loss on disposal of assets		71,872
Fair value of stock options vested	3,568,461	2,943,499
Common stock issued for services		280,174
Gain on settlement of debt	(201,097)
Amortization of long-term assets	20,000
Changes in operating assets and liabilities:
Accounts receivable	15,975	(1,570)
Inventory	(3,468)	(99,372)
Advances to officers	16,941	(9,399)
Prepaid expenses and other current assets	(243,325)	(95,920)
Other long-term assets		(95,000)
Accounts payable and accrued expenses	(365,903)	112,504
Accrued interest	697,961
Operating lease liabilities, net	233	(70,176)
NET CASH USED IN OPERATING ACTIVITIES	(5,935,070)	(5,866,792)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(33,293)	(58,647)
NET CASH USED IN INVESTING ACTIVITIES	(33,293)	(58,647)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from convertible notes payable		3,750,000
Proceeds from convertible notes payable, net of issuance costs	6,421,610
Proceeds from note payable		3,469,982
Repayment of related party loans	(140,989)
Repayment of convertible notes payable	(30,000)
Repayment of notes payable and interest	(320,000)
Repayment of promissory note		(574,133)
NET CASH PROVIDED BY FINANCING ACTIVITIES	5,930,621	6,645,849
Effect of exchange rate changes on cash	93	(3,990)
NET CHANGE IN CASH	(37,649)	716,420
CASH AT BEGINNING OF THE YEAR	785,363	68,943
CASH AT END OF THE YEAR	747,714	785,363
Supplemental Disclosure of Cash Flow Information
Cash paid for interest	148,169	72,000
Cash paid for taxes
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Intangible assets recorded at acquisition		11,113,000
Goodwill recognized at acquisition		913,184
Shares issued for acquisition		7,240,229
Net assets assumed in merger		(1,193,499)
Accounts payable settled with share issuance	129,850
Convertible notes payable and accrued interest converted to common shares	13,921,427
Services received settled with derivative warrants	156,399
Convertible notes payable assumed at merger		2,451,641
Notes payable converted into convertible notes payable		4,119,982
Notes payable assumed in merger		320,000
Accrued interest converted into convertible notes payable		$ 208,425

Consolidated Balance Sheets - USD ($)	Dec. 31, 2022	Dec. 31, 2021
CURRENT ASSETS:
Cash	$ 747,714	$ 785,363
Accounts receivable	947	16,922
Inventory	149,558	146,090
Advances to officers		16,941
Prepaid expenses and other current assets	409,783	166,458
TOTAL CURRENT ASSETS	1,308,002	1,131,774
Property and equipment, net	120,914	122,979
Intangible assets, net	10,151,172	10,920,577
Goodwill		913,184
Operating lease right-of-use asset	88,537	191,702
Long-term prepaid insurance	75,000	95,000
TOTAL ASSETS	11,743,625	13,375,216
CURRENT LIABILITIES:
Accounts payable and accrued expenses	2,512,622	2,987,264
Accrued director’s fees	75,000	75,000
Accrued interest	316,689	356,998
Convertible notes payable, net	2,750,620	337,000
Notes payable		320,000
Loans payable	6,667	6,667
Notes payable - related party	15,110	155,989
Derivative liabilities	1,658,607
Operating lease liability, current portion	83,710	104,591
TOTAL CURRENT LIABILITIES:	7,419,025	4,343,509
Convertible notes payable, net		9,635,551
Operating lease liability, net of current portion	7,378	91,089
TOTAL LIABILITIES	7,426,403	14,070,149
Commitments and contingencies
STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred stock, $0.001 par value; 10,000,000 shares authorized, 0 shares issued and outstanding as of December 31, 2022 and December 31, 2021, respectively
Common stock, $0.001 par value; 750,000,000 shares authorized, 1,242,647 and 593,410 shares issued and outstanding as of December 31, 2022 and December 31, 2021, respectively	1,243	594
Additional paid in capital	38,942,765	21,587,386
Accumulated deficit	(34,622,781)	(22,278,923)
Accumulated other comprehensive loss	(4,005)	(3,990)
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT)	4,317,222	(694,933)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)	$ 11,743,625	$ 13,375,216