NU-MED PLUS, INC.
The financial statements included
herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission.
Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted. However, in the opinion of management, all adjustments (which include only normal
recurring accruals) necessary to present fairly the financial position and results of operations for the periods presented have been made.
These financial statements should be read in conjunction with the Form 10-K for the period ended December 31, 2021, accompanying notes,
and with the historical financial information of the Company. The results of operations for the three and six months ended June 30, 2022
are not necessarily indicative of the results to be expected for the year ending December 31, 2022.
Notes to the Condensed Financial Statements
June 30, 2022
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The recent COVID 19 Pandemic (“the Pandemic”) has had
a dramatic effect on our business as well as the business of our contract developers. The wide-ranging effect on the world-wide business
market has led to a closure or partial closure of firms we are relying on in our product development. As a result their work on our project
has been slowed. While we cannot predict when the influence of the Pandemic will end, we trust businesses will be able to open and expand
activities to their former levels and increase following a return to normal operations.
a. Basis of Presentation
The accompanying unaudited condensed consolidated financial statements
include the accounts of Nu-Med Plus, Inc. (the “Company”). These financial statements are condensed and, therefore, do not
include all disclosures normally required by accounting principles generally accepted in the United States of America. Therefore, these
statements should be read in conjunction with the most recent annual consolidated financial statements of Nu-Med Plus, Inc. for the year
ended December 31, 2021 included in the Company’s Form 10-K filed with the Securities and Exchange Commission on March 31, 2022.
In particular, the Company’s significant accounting principles were presented as Note 1 to the Consolidated Financial Statements
in that report. In the opinion of management, all adjustments necessary for a fair presentation have been included in the accompanying
condensed consolidated financial statements and consist of only normal recurring adjustments. The results of operations presented in the
accompanying condensed consolidated financial statements are not necessarily indicative of the results that may be expected for the full
year ending December 31, 2022.
b. Revenue Recognition
The Financial Accounting Standards Board (“FSB”)
issued new guidance for the recognizing and reporting of revenue in contracts with customers. The effective date for implementation for
public companies was January 1, 2018.
The new guidance established a five-step analysis to be followed when determining
the recognition of revenue.
| 1. | Identify the contract with a customer. |
| 2. | Identify the performance obligations in the contract. |
| 3. | Determine the transaction price. |
| 4. | Allocate the transaction price to the performance obligations in the contract. |
| 5. | Recognize revenue when, or as, the reporting organization satisfied a performance obligation. |
While the Company is an early-stage company with no revenue, at the
time we begin to generate revenue the Company will recognize such revenue in conformity with the guidelines set forth by ASC 606.
c. Estimates
The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those
estimates.
d. Cash and Cash Equivalents
The Company considers all deposit accounts and investment
accounts with an original maturity of 90 days or less to be cash equivalents. The cash balance we currently have on deposit is within
the limits for which the FDIC insures.
e. Property and Equipment
Property and equipment is stated at cost. Expenditure
for minor repairs, maintenance, and replacement parts which do not increase the useful lives of the assets are charged to expense as incurred.
Expenditures, exceeding $500, for new assets or that increase the useful life of existing assets are capitalized. Depreciation is
computed using the straight-line method. The lives over which the property and equipment are depreciated are five to seven years.
f. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between market participants at the measurement date. FASB Accounting Standards
Codification (“ASC”) Topic 820 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring
fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities
(level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements), as follows:
Level 1 - Quoted market prices in active markets for identical assets or
liabilities;
Level 2 - Inputs other than level one inputs that are either directly or
indirectly observable; and
Level 3 - Unobservable inputs developed using estimates and assumptions,
which are developed by the reporting entity and reflect those assumptions that a market participant would use.
All cash, accounts payable and accrued liabilities are carried at cost,
which approximates fair value due to the short-term nature of these financial instruments. Additionally, we measure certain financial
instruments at fair value on a recurring basis.
g. Earnings per Share
The computation of earnings per share of common stock is based on the weighted
average number of shares outstanding during the period of the financial statement. The company included -0- and -0- shares subscribed
but unissued in its calculation of basic and diluted earnings per share for the three and six months ended June 30, 2022 and 2021, respectively.
Diluted earnings per share is computed using the weighted
average number of common shares plus dilutive common share equivalents outstanding during the period. As of June 30, 2022 and 2021 there
were -0- and -0-, respectively, potential dilutive shares that needed to be considered as common share equivalents. As of June 30, 2022
and 2021 there were no dilutive shares and the basic and diluted calculation is the same. Had there been dilutive shares they would have
been excluded from the calculation for diluted earnings per share as there was a net loss and their inclusion in the calculation would
be anti-dilutive.
h. Concentrations and Credit Risk - The Company has relied
on a small group of investors to fund its operations. If this group becomes unable or unwilling to provide additional funding, the Company
may be unable to remain in business or to execute on its business plan.
i. Income Taxes
Deferred taxes are provided on an asset and liability
approach whereby deferred tax assets are recognized for
deductible temporary
differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences.
Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred
tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all
of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in
tax laws and rates on the date of enactment.
j. Stock-based Compensation
The Company, in accordance with ASC 718, Compensation – Stock
Compensation, records all share-based payments to employees at the grant-date fair value of the equity instruments issued. In accordance
with ASC 718-10-30-9, Measurement Objective – Fair Value at Grant Date, the Company uses the closing price of the stock,
as quoted by NASDAQ, on the date of the grant. The Company believes this pricing method provides the best estimate of fair the fair value
of the consideration given. Compensation cost is recognized over the requisite service period.
k. Leases
The Company accounts for all leases in accordance with ASC 842, Leases,
recognizing both assets and liabilities on the balance sheet for the right to use those assets for the lease term and obligations to make
the lease payments created by those leases that have terms of greater than twelve months.
l. Recent Accounting Pronouncements
The Company has reviewed all recently issued, but
not yet adopted, accounting standards in order to determine their effects, if any, on its consolidated results of operation, financial
position and cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on
its current or future earnings or operations.
NOTE 2 - GOING CONCERN
The Company acknowledges that the funds on hand as
of June 30, 2022, will not be sufficient to enable it to execute its business plan and funding through the sale of equity capital and
short term related party and other shareholder loans in order to meet the planned expenditures for development, operations, and administrative
cost over the next 12 months will be required. Planned expenditures are approximately $1,200,000 for the next twelve months. The Company
is currently funded through August 31, 2022. If plans to obtain further financing prove to be insufficient to fund operations, continued
viability could be at risk. These factors raise substantial doubt about the Company's ability to continue as a going concern.
NOTE 3 – PROPERTY AND EQUIPMENT
Property and equipment and related accumulated depreciation
consisted of the following at June 30, 2022, and December 31, 2021:
| |
June 30, 2022 |
|
December 31, 2021 |
|
| |
|
|
|
|
| Computer and office equipment |
$ 83,893 |
|
$ 90,368 |
|
| Accumulated depreciation |
(83,859) |
|
(88,102) |
|
| Total Property and Equipment |
$ 34 |
|
$ 2,266 |
|
Depreciation expense for the six months ended June 30, 2022 and 2021 was $2,232 and $4,066, respectively.
The Company relocated its laboratory facilities to another location. At
the time of the move it sold the laboratory hood to the lease moving into that space for the amount of $3,000. The hood was fully depreciated
and the Company has recorded the gain on sale of $3,000 in this financial presentation.
NOTE 4 - PREFERRED STOCK
On October 19, 2011, the Company filed Articles of
Incorporation with the State of Utah so as to authorize 10,000,000 shares of preferred stock having a par value of $0.001 per share. No
preferred shares are issued or outstanding at June 30, 2022.
NOTE 5 - COMMON STOCK
There are 90,000,000 shares of common stock with a par value of $0.001
authorized. At June 30, 2022 and December 31, 2021, there were 79,348,469 and 79,348,469 shares of common stock issued and outstanding,
respectively.
NOTE 6 - COMMITMENTS AND CONTINGENCIES
The Company has obligations under both a financing
lease and operating lease, as detailed below.
Operating Lease Obligations
The Company entered into a lease for office space
in February 2017 for $950 per month. In November 2017 the Company signed a six-month extension of the lease with a lease payment of $978
per month. In March 2018 the Company extended the lease agreement through August 31, 2019 at a rate of $1,008 per month. In July 2019
the Company extended the lease agreement through August 31, 2020 at a rate of $1,038 per month. In July 2021 the Company extended the
lease agreement through August 31, 2022 at a rate of $1,058 per month.
Amortization of $6,166 was recorded as rent expense
in the six month period ended June 30, 2022, leaving an operating right-of-use asset at June 30, 2022 of $2,056 and an operating lease
liability of $2,056. Obligations under this lease are as follows:
| |
|
|
|
|
2022 |
2023 |
2024 |
| Office lease |
|
|
|
$ 2,056 |
$ - |
$ - |
As of June 30, 2022, the following disclosures for
remaining lease term and incremental borrowing rates were applicable:
|
Supplemental Disclosures |
Six Months Ended
June 30, 2022 |
| Weighted average remaining lease term |
.17 years |
| Weighted average discount rate |
8.00% |
Upon the adoption of ASC 842, the calculation of our
lease obligation using a discount rate of 8% resulted in an immaterial difference and therefore, no interest will be imputed on the lease
obligation.
NOTE 7 – CONSULTING AGREEMENTS
In June 2020, the Company entered into consulting
agreements with Roger Gill and Peter Kristensen. Both of the agreements begin June 22, 2020 and run for a period of twelve months, terminating
June 30, 2021. Under the terms of the agreements Mr. Gill received 500,000 shares of restricted common stock and Mr. Kristensen received
100,000
shares of restricted
stock for their services. The fair-value of the stock was $565,500 and was recorded as a prepaid. The prepaid amount was amortized over
the period of the agreement and, at June 30, 2022, there is no remaining balance.
On
March 15, 2020 the Company entered into a service agreement with Hanover International, Inc. to provide advisory services to the Company.
The contract is a one year contract, but may be cancelled with thirty days notice any time after the 91st
day of the agreement. Hanover receives a fee of $3,500 per month, from which
fee it pays all of its expenses. In addition, Hanover received 750,000 shares of restricted common stock, earned in quarterly tranches
of 187,500 shares, deemed earned and issuable after services are provided for each quarter. As of June 30, 2022 all of the shares to which
the Company is obligated under this agreement have been issued and the total value of $375,000 has been fully amortized.
NOTE 8 - SUBSEQUENT EVENTS
The Company has evaluated subsequent events pursuant
to ASC Topic 855 and has determined that there are no events that require disclosure as of the date of issuance.