Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. EASTGATE BIOTECH CORP (1099574) 10-Q published on Mar 04, 2019 at 4:10 pm
The Company has not filed its applicable Federal and State tax returns for the year ended December 31, 2012, 2013, and 2014 and may be subject to penalties for noncompliance. The Company has filed an extension for the 2015 and 2016 filings. With the completion of the delinquent filings, the Company intends to bring all tax filings up to date.
In March 2017, the Company issued a total of 4,000,000 shares of common stock to three research consultants (2.0 million, 1.0 million and 1.0 million shares each) at an average price of $0.04 per share (the share price at the time of issuance) for research and development work.
Omni was in default on various notes to banks and lenders, one of which William Abajian (“Abajian”) had a security interest in the equipment of the company in support of a loan in the amount of $845,000. Abajian foreclosed on the Company. Subsequently, Eastgate acquired a ninety-nine percent (99%) equity interest in Omni from Abajian and a second shareholder in exchange for the acquisition of the $845,000 note, and issuance of 20,000,000 common shares of Eastgate Biotech Corp. simultaneously,
Abajian can redeem the shares back to the Company in amounts not to exceed 2.0 million shares per year. In addition, Abajian holds a security interest to the 99% equity interest Eastgate holds in Omni until such time as his Eastgate shares are fully redeemed. As of the date of this filing, the balance due to Abajian is $547,000.
3.
Operating expenses for the nine-months ended September 30, 2017 and 2016 was $3,041,142 and $2,291,718, respectively. The increase in operating expense during the nine-months ended September 30, 2017 versus 2016 is primarily attributed to an increase in general and administrative costs and professional fees. In addition, for the nine-month period ended September 30, 2016, the Company recorded a loss from impairment of assets with no similar discontinued operations of $184,402 and for the nine-month period ended September 2017, the Company recorded a gain on extinguishment of debt of $55,759.