The following discussion of our financial condition and results of operations
for the years ended March 31, 2021 and March 31, 2020 should be read in
conjunction with our consolidated financial statements and the notes to those
statements that are included elsewhere in this Annual Report on Form 10-K. Our
discussion includes forward-looking statements based upon current expectations
that involve risks and uncertainties, such as our plans, objectives,
expectations and intentions. Actual results and the timing of events could
differ materially from those anticipated in these forward-looking statements as
a result of a number of factors. We use words such as "anticipate", "estimate",
"plan", "project", "continuing", "ongoing", "expect", "believe", "intend",
"may", "will", "should", "could", and similar expressions to identify
forward-looking statements.



OVERVIEW


We offer high-grade full spectrum cannabinoid oil to the market through our
website and store front/clinic accounts. Through our positive results in studies
on breast cancer and immune cells through the University of Central Oklahoma, in
addition to studies through DV Biologics that prove the Company's CBD oil
formulation lowers cortisol and functions as a neuro-protectant, with positive
result case studies through key health organizations. We formulate, market and
distribute the CBD oil used through our studies to the public, offering the most
effective quality of CBD on the market.



Our favored division effectively became a non-profit organization on February
11, 2019 and is structured to accept grants and donations to conduct further
studies and help donate EST's effective CBD products to those in need.



We expect to realize revenue from our consumer products business segment to fund
our working capital needs. However, in order to fund our pharmaceutical product
development efforts, we will need to raise additional capital either through the
issuance of equity and/or the issuance of debt. In the event we are unable to
fund our drug development efforts, we may need to curtail or delay such
activity.



RESULTS OF OPERATIONS


The following tables present a summary of the information on the cost of products for the year ended. March 31, 2021 and for the year ended March 31, 2020:


                                          For the Years Ended
                                               March 31,
                                           2021          2020

                     Revenue            $  140,902     $ 526,139
                     Cost of revenues      100,968       307,665
                     Gross Profit           39,934       218,474



We had product sales of $140,902 and gross profit of $39,934, representing a
gross margin of 28% in 2021 compared with product sales of $526,139 and gross
profit of $218,474, representing a gross margin of 42% in 2020. The sales
decreased in 2021 compared with 2020 is primarily due to the Covid-19 pandemic
causing many of our store accounts to closing down and customers ordering less.



27






OPERATING EXPENSE



A reconciliation from our net income (loss) to Adjusted EBITDA, a non-GAAP
measure, for the years ended March 31, 2021 and 2020 are outlined in the table
below:



                                                   Fiscal Year Ended March 31, 2021 and March 31, 2020
                                               2021                  2020             $ Change        % Change
Compensation - officers                   $       208,750       $       194,019     $     14,731               8 %
Officer Compensation Stock                $             -       $       142,590     $   (142,590 )          (100 )%
Marketing                                 $             -       $        47,071     $    (47,071 )          (100 )%
General and administrative                $       228,790       $       551,480     $   (322,690 )           (59 )%
Donations                                 $             -       $             -     $          -               -
Loss on disposal of assets                $             -       $             -     $          -               -
Patent Impairment Expense                 $             -       $             -     $          -               -
Professional fees                         $        26,535       $        30,991     $     (4,456 )           (14 )%
Bad Debt Expense                          $             -                31,211     $    (31,211 )          (100 )%
Cost of legal proceedings                 $       105,773       $        84,777     $     20,996              25 %
Litigation Expense                        $     3,763,200                     -     $  3,763,200             100 %
Research and development                  $         9,000                76,113     $    (67,113 )           (88 )%
Total operating expenses                  $     4,342,048       $     1,127,041     $  3,215,007             285 %

Loss from operations                           (4,302,114 )            (908,567 )   $ (3,377,106 )           372 %

Other Income (Expenses)
Other Income                              $           407       $        26,351
Interest expense                          $        (4,765 )     $        (4,765 )
Interest Expense-Convertible Note 1-GHS   $        (4,254 )     $       (39,117 )
Interest Expense-Convertible Note 2-GHS   $       (11,122 )     $       (79,330 )
Interest Expense-Convertible Note 3-GHS   $        (9,005 )     $       (92,002 )
Interest Expense-Convertible Note 4-GHS   $        (9,012 )     $       (91,326 )
Interest Expense-Convertible Note 5-GHS   $       (37,909 )     $        (8,071 )
Interest Expense-Promissory Note-GHS      $        (5,399 )     $        (3,426 )
Interest income                                         -                     -
Total other income (expenses)                     (81,059 )            (291,686 )

Net loss before income taxes                   (4,383,173 )           1,200,253 )

Income taxes                                            -                     -

Net loss                                  $    (4,383,173 )     $    (1,200,253 )

Net loss per common share: Loss per common share – basic and diluted $ (0.08) $ (0.03)




28
For the year ended March 31, 2021, the Company had a net loss from continuing
operations of approximately $4,383,173 compared to a loss from continuing
operations of approximately $1,200,253 for the year ended March 31, 2020. This
increase in net loss is due largely to litigation expenses from the Cromogen
litigation and receivership fees.



General and administrative costs represent bank costs, office costs, rent and administrative costs.


INTEREST EXPENSE


Interest charges supported up to $ 4,765 in 2021 compared to $ 4,765 in 2020.


NON-GAAP FINANCIAL MEASURES



We use Adjusted EBITDA internally to evaluate our performance and make financial
and operational decisions that are presented in a manner that adjusts from their
equivalent GAAP measures or that supplement the information provided by our GAAP
measures. Adjusted EBITDA is defined by us as EBITDA (net income (loss) plus
depreciation expense, amortization expense, interest and income tax expense,
minus income tax benefit), further adjusted to

exclude certain non-cash expenses and other adjustments as set forth below. We
use Adjusted EBITDA because we believe it more clearly highlight trends in our
business that may not otherwise be apparent when relying solely on GAAP
financial measures, since Adjusted EBITDA eliminates from our results specific
financial items that have less bearing on our core operating performance.



We use Adjusted EBITDA in communicating certain aspects of our results and
performance, including in this Annual Report, and believe that Adjusted EBITDA,
when viewed in conjunction with our GAAP results and the accompanying
reconciliation, can provide investors with greater transparency and a greater
understanding of factors affecting our financial condition and results of
operations than GAAP measures alone. In addition, we believe the presentation of
Adjusted EBITDA is useful to investors in making period-to-period comparison of
results because the adjustments to GAAP are not reflective of our core business
performance.



Adjusted EBITDA is not presented in accordance with, or as an alternative to,
GAAP financial measures and may be different from non-GAAP measures used by
other companies. We encourage investors to review the GAAP financial measures
included in this Annual Report, including our consolidated financial statements,
to aid in their analysis and understanding of our performance

and in making comparisons.



29






CASH FLOW & ASSETS


A summary of our changes in cash flow and assets for the years ended March 31, 2021 and 2020 is provided below:


                                                       March 31, 2021       March 31, 2020
                      ASSETS
Current Assets:
Cash                                                  $         16,161     $         30,723
Accounts Receivable(net allowance of $101,404 and
$101,404 respectively)                                $          6,108     $         38,933
Prepaid expenses and other current assets                            -     
             54
Inventory                                                       21,739               63,348
Total current assets                                            44,008              133,058

Property and equipment, net                                      1,712                4,133

Other Assets:
Patent, net                                                          -                    -
Rou Asset                                                       12,653               11,170
Deposits                                                         6,191                6,191
Total other assets                                              18,844               17,361
Total Assets                                          $         64,564     $        154,552

LIABILITIES AND EQUITY

Current Liabilities:
Accounts payable                                      $        173,994     $         82,228
PPP Loan                                              $         31,750     $              -
PPP Loan 2                                            $         31,215     $              -
Issa Loan Advance                                     $         49,980     $              -
SBA EDIL Loan                                         $        106,800     $              -
Accrued expenses                                      $        234,319     $        154,552
Accrued settlement                                    $      3,994,523     $        231,323
Interest Payable-Conv Notes-GHS                                 29,107     

9 648

Interest Payable-Promissory Note-GHS                             9,029     
          3,630
Convertible Note 1-GHS                                               -               76,927
Convertible Note 2-GHS                                          62,055               88,596
Convertible Note 3-GHS                                          88,825               88,525
Convertible Note 4-GHS                                          88,894               88,894
Convertible Note 5-GHS                                          88,710               55,000
Promissory Note-GHS                                             30,000               30,000
Lease Liability-Current                                         12,653               11,170
Notes payable - related parties                                 59,558     
         59,558
Total current liabilities                                    5,091,412              980,351
Total liabilities                                            5,091,412              980,351

Commitments and contingencies

Stockholders' (Deficit) Equity:
Common stock, par value $0.001 per share,
75,000,000 shares authorized; 50,883,056 and
37,813,092 shares issued and outstanding as of
March 31, 2021 and March 31, 2020 respectively                  50,553     
         37,814
Additional paid-in capital                                  28,219,577           28,050,192
Accumulated deficit                                        (33,296,878 )        (28,913,505 )
Total stockholders' (Deficit)Equity                         (5,028,848 )           (825,499 )
Total Liabilities and Stockholders' (Deficit)
Equity                                                $         64,564     $        154,552




30






For the year ended March 31, 2021 the Company had a net loss from continuing
operations of approximately $4,383,173 compared to a loss from continuing
operations of approximately $1,200,253 for the year ended March 31, 2020. This
increase in net loss is due to the unprecedented pandemic hindering overall
sales, Cromogen accrued settlement, and the receiver's company Strongbow
Advisors, Inc..



Marketing expenses totaled $47,071 for the twelve months ended March 31, 2021, a
decrease of $195,648 from $47,071 for the twelve months ended March 31, 2020.
This decrease primarily related to the Company reducing marketing costs and
utilizing existing marketing materials.



Research and development costs were totaled $0 for the twelve months ended March
31, 2021, a decrease of $47,071 from $47,071. The decrease is associated with
the Company moving the HygeeTM medical device out of R&D phase and discontinuing
CBD patent applications, (See Part I Note 2 Carrying value, recoverability and
impairment of long-lived assets). The Company determined to suspend current R&D
based on core needs of the business of the Company and the unprecedented
pandemic leading to many stores closing down having the Company have no use
for
any marketing material.



Accrued expenses totaled $234,319 for the twelve months ended March 31, 2021, an
increase of $79,767 from $154,552 for the period ended March 31, 2020. The
Majority of the accrued expenses were $135,000 of Michel Aube's salary that was
never compensated under the management of the Reciever, $66,000 of Nickolas
Tabraue's salary Mr. Tabraue allowed to be accrued to ensure the rest of the
employees and executive team were being compensated, and the remaining $33,000
were of an accrued interest on related Notes Payable.



Executive equity compensation totaled $ 0 for the twelve months ended March 31, 2021, a decrease in $ 142,590 of $ 142,590 for the previous period ended March 31, 2020. This is due to the fact that the receiver does not want to issue shares to the officers of the Company, against their executive approval.



Professional fees totaled $26,535 for the twelve months ended March 31, 2021, a
decrease of $4,456 from $30,991 for the prior period ended March 31, 2020. The
reduction in professional fees was due to timing and general cost savings.



The costs of legal proceedings totaled $105,773 for the twelve months ended
March 31, 2021, an increase of $20,996 from $84,777 for the prior period ended
March 31, 2020. The increase is a result of the Receiver using the Company to
fund the intervener litigation that was brought based on alleged lack of
receivership transparency (See Item 3. Legal Proceedings and Note 8. Subsequent
Events).



Total Revenues - For the years ended March 31, 2021 and 2020, the Company had
total sales of $140,902 and $526,139, respectively. While our revenues
decreased, this was consistent with a corresponding decrease in our cost of
goods sold from $100,968 for the year ended March 31, 2021 to $307,665 for the
year ended March 31, 2020; resulting in a Gross Profit of $39,934 as of March
31, 2021 compared to $295,013 for the previous year ending March 31, 2020. The
decrease in revenue is primarily attributed to inventory constraints as well as
available supply of acceptable raw material the Company requires and the
unprecedented pandemic.



Costs and Expenses – Costs of sales include the costs of manufacturing, packaging, warehousing and shipping our products. As we develop and market additional products, we expect our cost of sales to increase.



General and administrative expenses decreased from $551,480 for the year ended
March 31, 2021, to $228,790 for the year ended March 31, 2020. This decrease was
due to the company not having sufficient funds for the receiver to pay his
company Strongbow Advisors, Inc..



The Company had $16,161 in Cash for the period ended March 31, 2021, compared
with $30,723 for the same period ended March 31, 2020. This decrease is
primarily due to inventory constraints as well as available supply of acceptable
raw material the Company requires and the unprecedented pandemic.



The Company had $ 173,994 in accounts payable for the period ended March 31, 2021, compared to $ 82,228 for the same period ended March 31, 2020. This increase is mainly due to the receiver’s refusal to pay the SECOND
Jural advisor, Davisson Associates assistants invoices and the Company’s sales team received commissions.

The Company had $ 59,558 in notes payable and accrued interest for the period ended March 31, 2021. The Company had the same amount in notes payable and accrued interest for the period ended March 31, 2020.

The Company had a Stockholder's Deficit of $5,028,848 for the period ended March
31, 2021, compared with $825,799 of Stockholder's Equity for the same period
ended March 31, 2020. This increase is primarily due to Cromogen's accrued
settlement, and issuance of shares from the conversion of GHS Notes



We are a smaller reporting company, as defined by 17 CFR § 229.10(f)(1). We do
not consider the impact of inflation and changing prices as having a material
effect on our net sales and revenues and on income from our operations for the
previous two years or from continuing operations going forward.



The Company achieved a gross margin percentage of 28% for the year ended March
31, 2021, a decrease of 14% from the gross margin percentage of 42% for the
prior year ended March 31, 2020. The Company expects this gross margin
percentage to be corrected marginally as it achieves greater economies of scale
from higher volumes of sales and is consequently able to purchase inventory at
lower prices, and acquiring other operating companies with high profit margin
products.



31





CASH FLOWS FROM OPERATING ACTIVITIES

Operating Activities – For Completed Years March 31, 2021 and March 31, 2020, the Company used cash for the operating activities of $ 182,124 and $ 421,819, respectively.

CASH FLOWS FROM INVESTING ACTIVITIES

In the past years March 31, 2021 and March 31, 2020, the Company had no cash flow from investing activities.

CASH FLOWS FROM FINANCING ACTIVITIES



During the year ended March 31, 2021, the Company received $0 in cash proceeds
from sales of registered common stock, $60,524 in cash proceeds from sales of
registered shares through its effective S-1, and $50,000 from convertible
Promissory Note from Issa El-Cheikh. For the Year ended March 31, 2020, the
Company received $421,819 in cash from the issuance registered common stock
and
convertible notes.



FUTURE FINANCING


Private investors through standard notes, discounted registered shares.


STOCK BASED COMPENSATION


The Company follows ASC 718 in accounting for its stock based compensation to
employees. This standard states that compensation cost is measured at the grant
date based on the fair value of the award and is recognized at the time granted.



The Company accounts for transactions in which services are received from non-employees in exchange for equity instruments based on the fair value of the equity instrument exchanged in accordance with ASC 505-50.

RECENT ACCOUNTING POSITION STATEMENTS



In January 2017, the FASB issued Accounting Standards Update No. 2017-04,
Intangibles-Goodwill and Other, which simplifies the accounting for goodwill
impairments by eliminating step 2 from the goodwill impairment test. Instead, if
"the carrying amount of a reporting unit exceeds its fair value, an impairment
loss shall be recognized in an amount equal to that excess, limited to the total
amount of goodwill allocated to that reporting unit." The guidance is effective
for fiscal years beginning after December 15, 2019. Early adoption is permitted.
The Company is currently evaluating the impact the adoption of this new standard
will have on its Consolidated Financial Statements.



All the other accounting pronouncements newly issued and not yet entered into force were considered to be immaterial or not applicable.

OFF-BALANCE SHEET ARRANGEMENTS

Nothing.

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