abmt_10q.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
 
FORM 10-Q
 
þ  
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarter ended January 31, 2014
 
OR
 
o  
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934
 
Commission file number 000-53051
 
Advanced BioMedical Technologies, Inc.
(Exact name of registrant as specified in its charter)
 
Nevada
(State or other jurisdiction of incorporation or organization)
 
350 Fifth Avenue, 59th Floor
New York, NY 10118
(Address of principal executive offices, including zip code.)
 
(718) 766-7898
(Registrant's telephone number, including area code)
 
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  YES þ    NO o
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  YES o    NO  þ
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “small reporting company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer  o                                                                                     Accelerated filer  o
 
 
Non-accelerated filer   o                                                                           Smaller reporting company  þ
 
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).   Yes   o      No   þ
 
As of March 17, 2014, there are 56,874,850 shares of common stock outstanding.
 
All references in this Report on Form 10-Q to the terms “we”, “our”, “us”, the “Company”, “ABMT” and the “Registrant” refer to Advanced BioMedical Technologies, Inc. unless the context indicates another meaning.
 


 
 
 
 
 
TABLE OF CONTENTS

 
 
 
Page
 
       
PART I
FINANCIAL INFORMATION
     
Item 1.
Financial Statements
 
3
 
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
 
5
 
Item 3.
Quantitative and Qualitative Disclosures about Market Risk
 
13
 
Item 4.
Controls and Procedures
 
13
 
         
PART II
OTHER INFORMATION
     
Item 1.
Legal Proceedings
 
14
 
Item 1A.
Risk Factors
 
14
 
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
 
14
 
Item 3.
Defaults upon Senior Securities
 
14
 
Item 4.
Mine Safety Disclosure
 
14
 
Item 5.
Other Information
 
14
 
Item 6. 
Exhibits
 
15
 

 
2

 
 
PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS
 
The accompanying condensed consolidated unaudited financial statements of Advanced BioMedical Technologies, Inc., a Nevada corporation are condensed and, therefore, do not include all disclosures normally required by accounting principles generally accepted in the United States of America. These statements should be read in conjunction with the Company's most recent annual financial statements for the year ended October 31, 2013 included in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on February 13, 2014. 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 for the period ended January 31, 2014 are not necessarily indicative of the operating results that may be expected for the full year ending October 31, 2014.
 
 
3

 
 
ADVANCED BIOMEDICAL TECHNOLOGIES, INC.
AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)

CONTENTS
 
    Page
     
Condensed Consolidated Balance Sheets as of January 31, 2014 (unaudited) and October 31, 2013
  F-1
     
Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended January 31, 2014 and 2013 and the period from September 25, 2002 (inception) through January 31, 2014 (unaudited)
  F-2
     
Condensed Consolidated Statements of Stockholders’ Deficit for the period from September 25, 2002 (inception) through January 31, 2014 (unaudited)
  F-3
     
Condensed Consolidated Statements of Cash Flows for the three months ended January 31, 2014 and 2013 and the period from September 25, 2002 (inception) through January 31, 2014 (unaudited)
  F-4
     
Notes to the Condensed Consolidated Financial Statements (unaudited)
  F-5 to F-7
 
 
4

 
 
ADVANCED BIOMEDICAL TECHNOLOGIES, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED BALANCE SHEETS
 
   
January 31,
   
October 31,
 
   
2014
   
2013
 
   
(unaudited)
       
ASSETS
           
             
CURRENT ASSETS
           
Cash and cash equivalents   $ 54,752     $ 48,380  
Other receivables and prepaid expenses     22,733       21,105  
Total Current Assets     77,485       69,485  
                 
PROPERTY AND EQUIPMENT, NET
    128,263       126,568  
DEPOSIT FOR PURCHASE OF PROPERTY AND EQUIPMENT
    -       1,140  
                 
TOTAL ASSETS
  $ 205,748     $ 197,193  
                 
LIABILITIES AND STOCKHOLDERS' DEFICIT
               
                 
CURRENT LIABILITIES
               
Other payables and accrued expenses   $ 79,722     $ 59,237  
Due to directors     444,609       455,574  
Due to a stockholder     360,619       349,911  
Due to related parties     2,465,175       2,266,916  
Total Current Liabilities     3,350,125       3,131,638  
                 
COMMITMENTS AND CONTINGENCIES
    -       -  
                 
STOCKHOLDERS' DEFICIT
               
Common stock, $0.00001 par value, 100,000,000 shares                
authorized, 56,874,850 shares issued and outstanding                
as of January 31, 2014 and October 31, 2013     569       569  
Additional paid-in capital     1,913,242       1,907,889  
Accumulated deficit during development stage     (4,771,651 )     (4,572,351 )
Accumulated other comprehensive loss     (286,537 )     (270,552 )
Total Stockholders' Deficit     (3,144,377 )     (2,934,445 )
                 
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT
  $ 205,748     $ 197,193  
 
The accompanying notes are an integral part of these condensed consolidated financial statements
 
 
F-1

 
 
ADVANCED BIOMEDICAL TECHNOLOGIES, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)
 
   
Three months ended
   
September 25, 2002 (inception) through
 
   
January 31,
   
January 31,
   
January 31,
 
   
2014
   
2013
   
2014
 
OPERATING EXPENSES
                 
General and administrative expenses
  $ 133,179     $ 109,111     $ 3,882,678  
Depreciation
    6,698       6,438       323,533  
Research and development
    10,416       19,411       297,848  
Total Operating Expenses
    150,293       134,960       4,504,059  
                         
LOSS FROM OPERATIONS
    (150,293 )     (134,960 )     (4,504,059 )
                         
OTHER EXPENSES
                       
Government grants
    -       -       244,479  
Interest income
    24       20       1,907  
Interest paid to a stockholder and related parties
    (41,417 )     (30,784 )     (435,955 )
Imputed interest
    (5,353 )     (5,965 )     (257,780 )
Other, net
    (2,261 )     (3,572 )     (37,448 )
Total Other Expenses, net
    (49,007 )     (40,301 )     (484,797 )
                         
NET LOSS
    (199,300 )     (175,261 )     (4,988,856 )
Net loss attributable to non-controlling interests
    -       -       217,205  
NET LOSS ATTRIBUTABLE TO ABMT COMMON STOCKHOLDERS
    (199,300 )     (175,261 )     (4,771,651 )
                         
OTHER COMPREHENSIVE LOSS
                       
Foreign currency translation loss
    (15,985 )     (6,456 )     (286,537 )
                         
COMPREHENSIVE LOSS ATTRIBUTABLE TO ABMT COMMON STOCKHOLDERS
  $ (215,285 )   $ (181,717 )   $ (5,058,188 )
                         
Net loss per share
                       
- basic and diluted
  $ (0.00 )   $ (0.00 )        
                         
Weighted average number of shares outstanding during the period
                       
- basic and diluted
    56,874,850       56,574,850          
 
The accompanying notes are an integral part of these condensed consolidated financial statements
 
 
F-2

 
 
ADVANCED BIOMEDICAL TECHNOLOGIES, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT (UNAUDITED)
 
                                                               
 
Common stock
   
Shares to be issued
   
Stock
   
Additional
   
Deferred
   
Accumulated
deficit during
   
Accumulated
other
   
Non-
       
 
Number
         
Number
         
subscriptions
   
paid-in
   
stock
   
development
   
comprehensive
   
controlling
       
 
of shares
   
Amount
   
of shares
   
Amount
   
receivable
   
capital
   
compensation
   
stage
   
loss
   
interests
   
Total
 
                                                                 
Stock issued to founders for cash
  50,510,000     $ 505       -     $ -     $ -     $ 275,002     $ -     $ -     $ -     $ 217,205     $ 492,712  
                                                                                       
Net loss for the period
  -       -       -       -       -       -       -       (40,343 )     -       (17,290 )     (57,633 )
                                                                                       
Foreign currency translation loss
  -       -       -       -       -       -       -       -       (225 )     10       (215 )
                                                                                       
Balance at December 31, 2003
  50,510,000     $ 505       -     $ -     $ -     $ 275,002     $ -     $ (40,343 )   $ (225 )   $ 199,925     $ 434,864  
                                                                                       
Net loss for the year
  -       -       -       -       -       -       -       (65,960 )     -       (28,269 )     (94,229 )
                                                                                       
Foreign currency translation loss
  -       -       -       -       -       -       -       -       (357 )     2       (355 )
                                                                                       
Balance at December 31, 2004
  50,510,000     $ 505       -     $ -     $ -     $ 275,002     $ -     $ (106,303 )   $ (582 )   $ 171,658     $ 340,280  
                                                                                       
Imputed Interest on advances from
                                                                                     
a stockholder and related company
  -       -       -       -       -       23,103       -       -       -       -       23,103  
                                                                                       
Net loss for the year
  -       -       -       -       -       -       -       (357,863 )     -       (153,370 )     (511,233 )
                                                                                       
Foreign currency translation loss
  -       -       -       -       -       -       -       -       (12,290 )     2,064       (10,226 )
                                                                                       
Balance at December 31, 2005
  50,510,000     $ 505       -     $ -     $ -     $ 298,105     $ -     $ (464,166 )   $ (12,872 )   $ 20,352     $ (158,076 )
                                                                                       
Imputed Interest on advances from
                                                                                     
a stockholder and related company
  -       -       -       -       -       27,184       -       -       -       -       27,184  
                                                                                       
Net loss for the year
  -       -       -       -       -       -       -       (172,738 )     -       (18,276 )     (191,014 )
                                                                                       
Foreign currency translation loss
  -       -       -       -       -       -       -       -       (6,084 )     (2,076 )     (8,160 )
                                                                                       
Balance at December 31, 2006
  50,510,000     $ 505       -     $ -     $ -     $ 325,289     $ -     $ (636,904 )   $ (18,956 )   $ -     $ (330,066 )
                                                                                       
Imputed Interest on advances from
                                                                                     
a stockholder and related party
  -       -       -       -       -       39,021       -       -       -       -       39,021  
                                                                                       
Net loss for the year
  -       -       -       -       -       -       -       (196,871 )     -       -       (196,871 )
                                                                                       
Foreign currency translation loss
  -       -       -       -       -       -       -       -       (27,401 )     -       (27,401 )
                                                                                       
Balance at December 31, 2007
  50,510,000     $ 505       -     $ -     $ -     $ 364,310     $ -     $ (833,775 )   $ (46,357 )   $ -     $ (515,317 )
                                                                                       
Imputed Interest on advances from
                                                                                     
a stockholder and related company
  -       -       -       -       -       27,764       -       -       -       -       27,764  
                                                                                       
Net loss for the year
  -       -       -       -       -       -       -       (227,038 )     -       -       (227,038 )
                                                                                       
Foreign currency translation loss
  -       -       -       -       -       -       -       -       (35,833 )     -       (35,833 )
                                                                                       
Balance at October 31,2008
  50,510,000     $ 505       -     $ -     $ -     $ 392,074     $ -     $ (1,060,813 )   $ (82,190 )   $ -     $ (750,424 )
                                                                                       
Recapitalization
  5,104,000       51       -       -       -       (51 )     -       -       -       -       -  
                                                                                       
Stock issued for services ($3.05 per share)
  100,000       1       -       -       -       304,999       (292,292 )     -       -       -       12,708  
                                                                                       
Stock issued for cash in private placement
                                                                                     
($1.15 per share)
  5,000       -       -       -       -       5,750       -       -       -       -       5,750  
                                                                                       
Stock issued for cash in private placement
                                                                                     
($1.15 per share)
  2,000       -       -       -       -       2,300       -       -       -       -       2,300  
                                                                                       
Contributed capital
  -       -       -       -       -       26,950       -       -       -       -       26,950  
                                                                                       
Distributed to the stockholders
  -       -       -       -       -       (31,409 )     -       -       -       -       (31,409 )
                                                                                       
Imputed Interest on advances from
                                                                                     
a stockholder and related company
  -       -       -       -       -       31,656       -       -       -       -       31,656  
                                                                                       
Net loss for the year
  -       -       -       -       -       -       -       (558,432 )     -       -       (558,432 )
                                                                                       
Foreign currency translation loss
  -       -       -       -       -       -       -       -       (1,856 )     -       (1,856 )
                                                                                       
Balance at October 31, 2009
  55,721,000     $ 557       -     $ -     $ -     $ 732,269     $ (292,292 )   $ (1,619,245 )   $ (84,046 )   $ -     $ (1,262,757 )
                                                                                       
Stock issued for cash in private placement
                                                                                     
($1.5 per share)
  6,667       -       -       -       -       10,000       -       -       -       -       10,000  
                                                                                       
Stock issued for cash in private placement
                                                                                     
($1.5 per share)
  16,667       -       -       -       -       25,000       -       -       -       -       25,000  
                                                                                       
Stock issued for cash in private placement
                                                                                     
($1.5 per share)
  136,833       2       -       -       -       205,248       -       -       -       -       205,250  
                                                                                       
Stock issued for cash in private placement
                                                                                     
($1.0 per share)
  -       -       230,000       2       (230,000 )     229,998       -       -       -       -       -  
                                                                                       
Stock issued for services ($1 per share)
  100,000       1       -       -       -       99,999       (100,000 )     -       -       -       -  
                                                                                       
Stock issued for services ($1 per share)
  13,683       -       -       -       -       13,683       (13,683 )     -       -       -       -  
                                                                                       
Stock issued for services ($1 per share)
  150,000       2       -       -       -       149,998       (150,000 )     -       -       -       -  
                                                                                       
Amortisation for stock issued for services
  -       -       -       -       -       -       349,516       -       -       -       349,516  
                                                                                       
Imputed interest on advances from
                                                                                     
a stockholder and related company
  -       -       -       -       -       28,356       -       -       -       -       28,356  
                                                                                       
Net loss for the year
  -       -       -       -       -       -       -       (816,799 )     -       -       (816,799 )
                                                                                       
Foreign currency translation loss
  -       -       -       -       -       -       -       -       (29,063 )     -       (29,063 )
                                                                                       
Balance at October 31, 2010
  56,144,850     $ 562       230,000     $ 2     $ (230,000 )   $ 1,494,551     $ (206,459 )   $ (2,436,044 )   $ (113,109 )   $ -     $ (1,490,497 )
                                                                                       
                                                                                       
Stock issued for cash in private placement
                                                                                     
($1 per share)
  230,000       2       (230,000 )     (2 )     230,000       -       -       -       -       -       230,000  
                                                                                       
Stock issued for cash in private placement
                                                                                     
($1.05 per share)
  100,000       1       -       -       -       104,999       (105,000 )     -       -       -       -  
                                                                                       
Imputed interest on advances from
                                                                                     
a stockholder and related company
  -       -       -       -       -       27,060       -       -       -       -       27,060  
                                                                                       
Amortisation for stock issued for services
  -       -       -       -       -       -       223,958       -       -       -       223,958  
                                                                                       
Net loss for the year
  -       -       -       -       -       -       -       (487,439 )     -       -       (487,439 )
                                                                                       
Foreign currency translation loss
  -       -       -       -       -       -       -       -       (65,852 )     -       (65,852 )
                                                                                       
Balance at October 31, 2011
  56,474,850     $ 565       -     $ -     $ -     $ 1,626,610     $ (87,501 )   $ (2,923,483 )   $ (178,961 )   $ -     $ (1,562,770 )
                                                                                       
Stock issued for services ($0.2 per share)
  100,000       1       -       -       -       19,999       (20,000 )     -       -       -       -  
                                                                                       
Imputed interest on advances from directors
  -       -       -       -       -       25,347       -       -       -       -       25,347  
                                                                                       
Amortisation for stock issued for services
  -       -       -       -       -       -       105,834