Electromedical Technologies Files 10-Q for Q1 2024
Ticker: EMED · Form: 10-Q · Filed: Jun 14, 2024 · CIK: 1715819
Sentiment: neutral
Topics: 10-Q, financials, medical-instruments
TL;DR
Electromedical Tech 10-Q filed. Financials updated for Q1 2024.
AI Summary
Electromedical Technologies, Inc. filed a 10-Q for the period ending March 31, 2024. The filing details financial information, including changes in fair value of derivative liabilities and preferred stock. The company is based in Scottsdale, Arizona, and operates in the surgical and medical instruments sector.
Why It Matters
This filing provides investors with an update on Electromedical Technologies' financial health and operational status for the first quarter of 2024.
Risk Assessment
Risk Level: medium — The company operates in the medical device sector, which can be subject to regulatory and market risks, and the filing itself may contain forward-looking statements that carry inherent uncertainties.
Key Numbers
- N/A — Revenue (Specific revenue figures for the quarter are not explicitly detailed in the provided header information.)
- N/A — Net Income (Specific net income figures for the quarter are not explicitly detailed in the provided header information.)
- 1000000 — Commitments and Contingencies (Indicates a potential financial obligation or risk disclosed in the filing.)
Key Players & Entities
- Electromedical Technologies, Inc. (company) — Filer of the 10-Q
- 20240331 (date) — End of the reporting period
- Scottsdale, AZ (location) — Company's business and mailing address
- 3841 (number) — Standard Industrial Classification code for Surgical & Medical Instruments & Apparatus
FAQ
What was the change in the fair value of derivative liabilities during the reporting period?
The filing references a URL for 'ChangeInFairValueOfDerivativeLiabilities' at http://electromedtech.com/20240331, indicating this information is detailed within the full report.
What is the company's Standard Industrial Classification (SIC) code?
The company's SIC code is 3841, which corresponds to 'Surgical & Medical Instruments & Apparatus'.
When does Electromedical Technologies, Inc. have its fiscal year end?
The company's fiscal year ends on December 31st.
What is the SEC file number for Electromedical Technologies, Inc.?
The SEC file number for Electromedical Technologies, Inc. is 000-56192.
What are the company's business and mailing addresses?
The company's business and mailing addresses are both listed as 16561 N 92ND STREET, SUITE 101, SCOTTSDALE, AZ 85260.
Filing Stats: 4,545 words · 18 min read · ~15 pages · Grade level 15.8 · Accepted 2024-06-14 17:11:11
Filing Documents
- elcq-20240331x10q.htm (10-Q) — 1305KB
- elcq-20240331xex31d1.htm (EX-31.1) — 10KB
- elcq-20240331xex31d2.htm (EX-31.2) — 10KB
- elcq-20240331xex32d1.htm (EX-32.1) — 6KB
- elcq-20240331x10q001.jpg (GRAPHIC) — 6KB
- 0001410578-24-001009.txt ( ) — 5616KB
- elcq-20240331.xsd (EX-101.SCH) — 45KB
- elcq-20240331_cal.xml (EX-101.CAL) — 40KB
- elcq-20240331_def.xml (EX-101.DEF) — 185KB
- elcq-20240331_lab.xml (EX-101.LAB) — 402KB
- elcq-20240331_pre.xml (EX-101.PRE) — 297KB
- elcq-20240331x10q_htm.xml (XML) — 820KB
FINANCIAL INFORMATION
PART I. FINANCIAL INFORMATION Item 1. UNAUDITED FINANCIAL STATEMENTS: 3 BALANCE SHEETS AS OF MARCH 31, 2024 AND DECEMBER 31, 2023 3 4 6 7 NOTES TO THE UNAUDITED FINANCIAL STATEMENTS 8 Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 19 Item 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 23 Item 4.
CONTROLS AND PROCEDURES
CONTROLS AND PROCEDURES 23
OTHER INFORMATION
PART II. OTHER INFORMATION 25 Item 1.
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS 25 Item 1A.
RISK FACTORS
RISK FACTORS 25 Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 25 Item 3. DEFAULTS UPON SENIOR SECURITIES 42 Item 4. MINE SAFETY DISCLOSURE 42 Item 5. OTHER INFORMATION 43 Item 6. EXHIBITS 43
SIGNATURES
SIGNATURES 46 2 Table of Contents
FINANCIAL STATEMENTS
ITEM 1. FINANCIAL STATEMENTS ELECTROMEDICAL TECHNOLOGIES, INC. BALANCE SHEETS (UNAUDITED) March 31, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 78,843 $ 87,704 Accounts receivable 3,501 4,399 Inventories 46,561 68,517 Prepaid expenses and other current assets 290,470 288,565 Total current assets 419,375 449,185 Right of use asset 137,942 149,493 Property and equipment, net 149,705 149,705 Total assets $ 707,022 $ 748,383 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable $ 241,970 $ 239,481 Credit cards payable 27,077 28,097 Accrued expenses and other current liabilities 603,630 916,971 Customer deposits 185,275 197,325 Convertible promissory notes, net of discount of $ 0 and $ 375,865 , respectively 1,629,559 1,393,601 Lease liability, current portion 50,762 48,745 Derivative liabilities- convertible promissory notes 1,408,002 532,334 Total current liabilities 4,146,275 3,356,554 Long-term liabilities: Government debt, net of current portion 150,000 150,000 Lease liability, net of current portion 92,671 106,200 Other liabilities 6,260 8,416 Total liabilities 4,395,206 3,621,170 Commitments and contingencies (Note 10) — — Stockholders' deficit Series A Preferred Stock, $ .00001 par value, 1,000,000 shares authorized and outstanding 365,000 365,000 Series B Preferred Stock, $ .00001 par value, 1 share authorized and outstanding at March 31, 2024 and December 31, 2023 400,000 400,000 Common stock, $ .00001 par value, 1,999,000,000 shares authorized; 486,482,787 and 463,286,208 shares outstanding at March 31, 2024 and December 31, 2023, respectively 4,863 4,631 Additional paid-in-capital 23,847,975 23,827,330 Accumulated deficit ( 28,306,022 ) ( 27,469,748 ) Total stockholders' deficit ( 3,688,184 ) ( 2,872,787 ) Total liabilities and stockholders' deficit $ 707,
NOTES TO FINANCIAL STATEMENTS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) NOTE 1. ORGANIZATION AND NATURE OF BUSINESS ElectroMedical Technologies, LLC ("the Company"), was formed in November 2010 as an Arizona limited liability company. In August 2017, the Company converted to a Delaware C Corporation under Electromedical Technologies, Inc. The Company is a bioelectronic engineering company with medical device certifications in the United States (FDA) and Mexico (Cofepris). The Company engineers simple-to-use portable bioelectronics devices, which provide fast and long -lasting pain relief across a broad range of ailments. NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Method The accompanying unaudited financial statements of Electromedical Technologies, Inc. have been prepared in accordance with Accounting Principles Generally Accepted in the United States of America ("GAAP") for interim financial information and in accordance with Rule 8-03 of Regulation S-X. Certain information and disclosures normally included in the annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments, consisting of normal recurring adjustments considered necessary for a fair presentation, have been included. We have reclassified certain amounts in prior-period financial statements to conform to the current period's presentation. These interim financial statements should be read in conjunction with the audited annual financial statements of the Company as of and for the year ended December 31, 2023. The results of operations for the three months ended March 31, 2024, are not necessarily indicative of the results that may be expected for the full year. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities, certain disclosures at the d