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 July 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 September 22, 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 July 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)
 
 
 
      Page
       
Condensed Consolidated Balance Sheets as of July 31, 2014 (unaudited) and October 31, 2013     F-1
       
Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended July 31, 2014 and 2013 and the period from September 25, 2002 (inception) through July 31, 2014 (unaudited)     F-2
       
Condensed Consolidated Statements of Stockholders’ Deficit for the period from September 25, 2002 (inception) through July 31, 2014 (unaudited)     F-3
       
Condensed Consolidated Statements of Cash Flows for the nine months ended July 31, 2014 and 2013 and the period from September 25, 2002 (inception) through July 31, 2014 (unaudited)     F-4
       
Notes to the Condensed Consolidated Financial Statements (unaudited)      F-5-F-8
 
 
 
4
 
 
ADVANCED BIOMEDICAL TECHNOLOGIES, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED BALANCE SHEETS
 
   
July 31,
    
October 31,
  
   
2014
    
2013
  
   
(unaudited)
        
ASSETS
            
             
CURRENT ASSETS
            
Cash and cash equivalents
   $ 54,377     $ 48,380  
Other receivables and prepaid expenses
     24,212       21,105  
Total Current Assets
     78,589       69,485  
                 
PROPERTY AND EQUIPMENT, NET
     113,496       126,568  
DEPOSIT FOR PURCHASE OF PROPERTY AND EQUIPMENT
     -       1,140  
                 
TOTAL ASSETS
   $ 192,085     $ 197,193  
                 
LIABILITIES AND STOCKHOLDERS' DEFICIT
                
                 
CURRENT LIABILITIES
                
Other payables and accrued expenses
   $ 59,341     $ 59,237  
Due to directors
     405,491       455,574  
Due to a stockholder
     428,220       349,911  
Due to related parties
     2,777,648       2,266,916  
Total Current Liabilities
     3,670,700       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 July 31, 2014 and October 31, 2013
     569       569  
Additional paid-in capital
     1,923,184       1,907,889  
Accumulated deficit during development stage
     (5,167,945 )     (4,572,351 )
Accumulated other comprehensive loss
     (234,423 )     (270,552 )
Total Deficit
     (3,478,615 )     (2,934,445 )
                 
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT
   $ 192,085     $ 197,193  
 
The accompanying notes are an integral part of the 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
    
Nine months ended
    
September 25, 2002 (inception) through
  
   
July 31,
    
July 31,
    
July 31,
    
July 31,
    
July 31,
  
   
2014
    
2013
    
2014
    
2013
    
2014
  
OPERATING EXPENSES
                              
General and administrative expenses
   $ 131,642     $ 101,260     $ 382,706     $ 298,342     $ 4,132,205  
Depreciation
     6,606       6,599       19,966       19,527       336,801  
Research and development
     19,910       5,367       39,744       28,153       327,176  
Total Operating Expenses
     158,158       113,226       442,416       346,022       4,796,182  
                                         
LOSS FROM OPERATIONS
     (158,158 )     (113,226 )     (442,416 )     (346,022 )     (4,796,182 )
                                         
OTHER EXPENSES
                                        
Government grants
     -       -       -       -       244,479  
Interest income
     38       17       101       52       1,984  
Interest paid to a stockholder and related parties
     (46,427 )     (35,732 )     (131,498 )     (99,442 )     (526,036 )
Imputed interest
     (4,851 )     (5,659 )     (15,295 )     (17,425 )     (267,722 )
Other, net
     (2,132 )     (1,948 )     (6,486 )     (7,538 )     (41,673 )
Total Other Expenses, net
     (53,372 )     (43,322 )     (153,178 )     (124,353 )     (588,968 )
                                         
NET LOSS
     (211,530 )     (156,548 )     (595,594 )     (470,375 )     (5,385,150 )
Net loss attributable to non-controlling interests
     -       -       -       -       217,205  
NET LOSS ATTRIBUTABLE TO ABMT
                                        
COMMON STOCKHOLDERS
     (211,530 )     (156,548 )     (595,594 )     (470,375 )     (5,167,945 )
                                         
OTHER COMPREHENSIVE (LOSS) INCOME
                                        
Foreign currency translation (loss)/income
     (41,918 )     (14,096 )     36,129       (40,778 )     (234,423 )
COMPREHENSIVE LOSS ATTRIBUTABLE
                                        
TO ABMT COMMON STOCKHOLDERS
   $ (253,448 )   $ (170,644 )   $ (559,465 )   $ (511,153 )   $ (5,402,368 )
                                         
Net loss per share
                                        
- basic and diluted
   $ (0.00 )   $ (0.00 )   $ (0.01 )   $ (0.01 )        
                                         
Weighted average number of shares
                                        
outstanding during the period
                                        
- basic and diluted
     56,874,850       56,574,850       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)
 
                                             
Accumulated
                    
                                              deficit    
Accumulated
              
   
Common stock
    
Shares to be issued
    
Stock
    
Additional
    
Deferred
    
during
    
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 company
     -       -       -       -       -       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       -       -       -