8-K 1 zander053019form8k.htm FORM 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): May 29, 2019

 

ZANDER THERAPEUTICS, INC.

(Exact name of small business issuer as specified in its charter)

 

Nevada 47-4321638
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)

 

Commission File No. 333-220790

 

4700 Spring Street, St 304, La Mesa, California 91942

(Address of Principal Executive Offices)

 

(619) 702 1404

(Issuer’s telephone number)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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ITEM 4.02 Non-Reliance on Previously Issued Financial Statements.

On May 29, 2019 , the Board of Directors of Zander Therapeutics, Inc. (the “Company”) concluded that the previously issued Balance Sheet, Statement of Operations and Statement of Cash Flow for the quarter ended September 30, 2018 and the quarter ended December 31, 2018 filed with the Company’s Form 10-Q for the quarter ended September 30, 2018 and the quarter ended December 31, 2018 should not be relied upon. The Company’s senior management has determined that, with regard to a Derivative Asset recognized by the company in connection with a $350,000 Convertible Note Receivable held by the Company, the bifurcation requirement is not met since the host is closely related to the embedded derivative therefore recognition of the Derivative Asset does not comply with FASB ASC 815-15-25-1. The Company’s senior management has determined that , as originally presented, the Company’s Statement of Operations for the quarter ended September 30, 2018 understated consulting expenses by $13,033. The Company’s senior management has discussed the matters disclosed in this Item 4.02 of this Current Report with Prager Metis CPA’s LLP, the Company’s independent registered public accounting firm.

 

Subsequent to the original issuance of Zander’s quarterly financial statements for the periods ended September 30, 2018 and December 31, 2018 the Company determined that the following revisions are required:

 

For the Quarter Ended September 30, 2018:

 

The inclusion in Retained Deficit of $13,033 of Research and Development Expenses incurred by the Company

 

The inclusion in Accounts Payable of $13,033 of Research and Development Expenses incurred by the Company

 

The derecognition of a Derivative Asset valued at $1,416,666

 

The derecognition from Retained Deficit of $1,416,666 of Gain on Derivative

 

The recognition during the Quarter ended September 30, 2018 of $13,033 of Research and Development Expenses incurred by the Company

 

The derecognition during the Quarter ended September 30, 2018 of a $1,416,666 of Gain on Derivative

 

For the Quarter Ended December 31, 2018:

 

The derecognition of a Derivative Asset valued at $555,555

 

The derecognition from Retained Deficit of $861,110 of Loss on Derivative

 

The derecognition during the Quarter ended December 31, 2018 of $861,110 of Loss on Derivative

 

The following tables reflect the corrections:

 

          
          
   As of  Adjustments  As of
   September 30, 2018     September 30,
2018
   (as originally presented)     As Restated
ASSETS               
CURRENT ASSETS               
Cash   301,906         301,906 
Prepaid Expenses, Related Parties   38,814         38,814 
Prepaid Expenses   7,127         7,127 
Due From Related Party               
Total Current Assets   347,847         347,847 
OTHER ASSETS               
Convertible Note Receivable, Related Party   350,000         350,000 
Investment Securities, Related Party   61,250         61,250 
Derivative Asset, Related Party   1,416,666    (1,416,666)   0 
TOTAL OTHER ASSETS   1,827,916         411,250 
Total Assets   2,175,763         759,097 
                
LIABILITIES               
Current Liabilities:               
Accounts Payable   1,342,558    13,033    1,355,591 
Accrued Expenses   8,435         8,435 
Total Current Liabilities   1,350,993         1,364,026 
Total Liabilities   1,350,993         1,364,026 
                
STOCKHOLDER'S EQUITY               
Common Stock, Authorized 100,000,000, $0.0001 Par Value 4,758,001 shares and 6,033,001 shares issued and outstanding as of June 30, 2018 and September 30, 2018 respectively   603         603 
Preferred Stock, $0.0001 par value  Authorized  50,000,000 as of September 30, 2018 and June 30, 2018               
Series M Preferred Stock, $0.0001 par,  Authorized 10,000,000 as of September 30, 2018 and June 30,2018 9,000,000 shares outstanding as of June 30, 2018 and September 30, 2018 Respectively   900         900 
Common Stock subscribed for but unissued , 100000 and 0 shares as of June 30, 2018 and September 30, 2018 respectively               
Series AA Preferred Stock, $0.0001 par, Autorized 1,000,000 200 and 200 shares outstanding as of June 30, 2018 and September 30, 2018 , respectfully   0         0 
Additional Paid In Capital   2,534,688         2,534,688 
Contributed Capital, Related Party   413,878         413,878 
Retained Deficit   (2,125,299)   (1,429,699)   (3,554,998)
Total Stockholder's Equity   824,770         (604,929)
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY   2,175,763         759,097 
                
The Accompanying Notes are an Integral Part of These Financial Statements               

 

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Zander Therapeutics, Inc         
STATEMENT OF OPERATIONS         
(unaudited)         
   Three Months Ended  Adjustments  Three Months Ended
   September 30, 2018     September 30, 2018
   ( as originally presented)     ( as restated)
 TOTAL REVENUES               
 COSTS AND EXPENSES               
 Research and Development:               
 License Fees Due to Related Party   27,425         27,425 
 Contract Research Fees   410,000         410,000 
 Consulting Costs   1,350    13,033    14,383 
 Total Research and Development   438,775         451,808 
 General and Administrative:               
 General and Administrative, Paid By Related Party               
 General and Administrative   180,836         180,836 
 Total General and Administrative   180,836         180,836 
 Rent, Paid By Related Party               
 Rent   12,000         12,000 
 Consulting:               
 Consulting Costs, Paid by Related Party               
 Consulting Costs   173,302         173,302 
 Total Consulting   173,302         173,302 
 Total Costs and Expenses   804,913         817,946 
                
 OPERATING LOSS   (804,913)        (817,946)
 OTHER INCOME AND EXPENSES               
 Interest Expense, Related Party               
 Unrealized Gain, Investment Securities Related Party   26,250         26,250 
 Gain On Derivative   1,416,666    (1,416,666)   0 
 Total Other Income ( Expenses)   1,442,916         26,250 
 NET INCOME (LOSS)   638,003         (791,696)
 Inome Taxes               
 NET INCOME (LOSS)   638,003         (791,696)
 BASIC AND FULLY DILUTED               
 EARNINGS (LOSS) PER SHARE   0.119         (0.148)
 WEIGHTED AVERAGE NUMBER OF COMMON               
 SHARES OUTSTANDING   5,359,375         5,359,375 
                
 The Accompanying Notes are an Integral Part of These Financial Statements

 3 

 

Zander Therapeutics, Inc         
STATEMENT OF CASH FLOWS         
(unaudited)         
          
   Quarter Ended  Adjustments  Quarter Ended
   September 30, 2018     September 30, 2018
   ( as originally reported)     ( as restated)
CASH FLOWS FROM OPERATING ACTIVITIES               
Net Income (Loss)   638,003    (1,429,699)   (791,696)
Adjustments to reconcile net Income (loss) to net cash               
Stock Issued for Expenses   7,622         7,622 
(Increase) Unrealized Gain from Investment Securities   (26,250)        (26,250)
(Increase) Decrease in Derivative Income   (1,416,666)   1,416,666    0 
Changes in Operating Assets and Liabilities               
Increase (Decrease) in Accounts Payable   254,589    13,033    267,622 
Increase (Decrease) in Accrued Expenses   (3,158)        (3,158)
(Increase) Decrease in Due from Related Party   35,000         35,000 
(Increase) Decrease in Prepaid Expenses   27,453         27,453 
Net Cash provided by (used) in Operating Activities   (483,407)        (483,407)
                
CASH FLOW FROM INVESTING ACTIVITIES               
(Increase) Decrease in Convertible Notes Receivable   (350,000)        (350,000)
(Increase) Decrease in Investment Securities   (35,000)        (35,000)
Net Cash Used  by Investing Activities   (385,000)        (385,000)
                
CASH FLOWS FROM FINANCING ACTIVITIES               
Common Stock Issued for Cash   800,000         800,000 
Net Cash provided by (used) in Financing Activities   800,000         800,000 
                
Net Increase (Decrease) in Cash   (68,407)        (68,407)
                
Cash at Beginning of Period   370,313         370,313 
Cash at End of Period   301,906         301,906 
                
Supplemental Disclosure of Noncash investing and financing activities:               
Common Shares issued, previously subscribed and paid for   100,000         100,000 
                
The Accompanying Notes are an Integral Part of These Financial Statements

 4 

 

 

Zander Therapeutics, Inc         
BALANCE SHEET         
(unaudited)         
   As of     As of
   December 31, 2018  Adjustments  December 31, 2018
   (as originally presented)     (as restated)
ASSETS               
CURRENT ASSETS               
Cash   71,345         71,345 
Prepaid Expenses, Related Parties   11,390         11,390 
Prepaid Expenses   6,387         6,387 
Due From Related Party               
Accrued Interest Receivable   4,363         4,363 
Total Current Assets   93,485         93,485 
OTHER ASSETS               
Convertible Note Receivable, Related Party   350,000         350,000 
Investment Securities, Related Party   14,700         14,700 
Derivative Asset, Related Party   555,555    (555,555)   0 
TOTAL OTHER ASSETS   920,255         364,700 
Total Assets   1,013,740         458,185 
                
LIABILITIES               
Current Liabilities:               
Accounts Payable   1,363,802    6,636    1,370,438 
Accrued Expenses   36,051         36,051 
Total Current Liabilities   1,399,853         1,406,489 
Total Liabilities   1,399,853         1,406,489 
                
STOCKHOLDER'S EQUITY               
Common Stock, Authorized 100,000,000, $0.0001 Par Value 4,758,001 shares and 6,033,001 shares issued and outstanding as of June 30, 2018 and December 31, 2018 respectively   603           
Preferred Stock, $0.0001 par value  Authorized  50,000,000 as of December 31, 2018 and June 30, 2018               
Series M Preferred Stock, $0.0001 par,  Authorized 10,000,000 as of December 31, 2018 and June 30,2018 9,000,000 shares outstanding as of June 30, 2018 and December 31, 2018 Respectively   900         900 
Common Stock subscribed for but unissued , 100000 and 0 shares as of June 30, 2018 and December 31, 2018 respectively               
Series AA Preferred Stock, $0.0001 par, Authorized 1,000,000; 200 and 200 shares outstanding as of June 30, 2018 and December 31, 2018 , respectfully   0         0 
Additional Paid In Capital   2,534,688         2,534,688 
Contributed Capital, Related Party   413,878         413,878 
Retained Deficit   (3,336,182)   (562,192)   (3,898,374)
Total Stockholder's Equity   (386,113)        (948,305)
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY   1,013,740         458,185 
                
The Accompanying Notes are an Integral Part of These Financial Statements

 5 

 

Zander Therapeutics, Inc                  
STATEMENT OF OPERATIONS                  
(unaudited)                  
                   
   Three Months Ended  Adjustments  Three Months Ended  6 Months Ended  Adjustments  6 Months Ended
   December 31, 2018     December 31, 2018  December 31, 2018     December 31, 2018
   ( as originally presented)     ( as restated)  ( as originally presented)  ( As restated)
 TOTAL REVENUES                              
 COSTS AND EXPENSES                              
 Research and Development:                              
 License Fees Due to Related Party   27,425         27,425    54,849         54,849 
 License Fees   568         568    568         568 
 Contract Research Fees                  410,000         410,000 
 Consulting Costs   14,847         14,847    22,594    6,636    29,230 
 Total Research and Development   42,840         42,840    488,011         494,647 
 General and Administrative:                              
 General and Administrative, Paid By Related Party                              
 General and Administrative   179,349         179,349    360,185         360,185 
 Total General and Administrative   179,349         179,349    360,185         360,185 
 Rent, Paid By Related Party                              
 Rent   24,000         24,000    36,000         36,000 
 Consulting:                              
 Consulting Costs, Paid by Related Party                              
 Consulting Costs   62,100         62,100    235,402         235,402 
 Total Consulting   62,100         62,100    235,402         235,402 
 Total Costs and Expenses   308,289         308,289    1,119,598           
                               
 OPERATING LOSS   (308,289)        (308,289)   (1,119,598)        (1,126,234)
 OTHER INCOME AND EXPENSES                              
 Interest Expense, Related Party                              
 Refunds On Amounts Previously Paid   7,100         7,100    7,100         7,100 
 Interest Income , related Party   4,363         4,363    4,363         4,363 
 Unrealized Gain (Loss), Investment Securities Related Party   (46,550)        (46,550)   (20,300)        (20,300)
 Gain (Loss) On Derivative   (861,110)   861,110    0    555,556    (555,556)   0 
 Total Other Income ( Expenses)   (896,197)        (35,087)   546,719         (8,837)
 NET INCOME (LOSS)   (1,204,486)        (343,376)   (572,879)        (1,135,071)
 Income Taxes                              
 NET INCOME (LOSS)   (1,204,486)        (343,376)   (572,879)        (1,135,071)
 BASIC AND FULLY DILUTED                              
 EARNINGS (LOSS) PER SHARE   (0.200)        (0.057)   (0.102)        (0.202)
 WEIGHTED AVERAGE NUMBER OF COMMON                              
 SHARES OUTSTANDING   6,033,001         6,033,001    5,621,526         5,621,526 
                               
 The Accompanying Notes are an Integral Part of These Financial Statements

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Zander Therapeutics, Inc         
STATEMENT OF CASH FLOWS         
(unaudited)         
   Six Months Ended     Six Months Ended
   December 31, 2018  Adjustments  December 31, 2018
   (as originally reported)     ( as restated)
CASH FLOWS FROM OPERATING ACTIVITIES               
Net Income (Loss)   (572,879)   (562,192)   (1,135,071)
Adjustments to reconcile net Income (loss) to net cash               
Stock Issued for Expenses   7,622         7,622 
(Increase) Unrealized Gain from Investment Securities   20,300         20,300 
(Increase) Decrease in Derivative Income   (555,556)   555,556    0 
                
Changes in Operating Assets and Liabilities               
Increase (Decrease) in Accounts Payable   275,833    6,636    282,469 
Increase (Decrease) in Accrued Expenses   24,457         24,457 
(Increase) Decrease in Due from Related Party   35,000         35,000 
(Increase) Decrease in Prepaid Expenses   55,618         55,618 
(Increase) Decrease in Accrued Interest Receivable   (4,363)        (4,363)
Net Cash provided by (used) in Operating Activities   (713,968)        (713,969)
                
CASH FLOW FROM INVESTING ACTIVITIES               
(Increase) Decrease in Convertible Notes Receivable   (350,000)        (350,000)
(Increase) Decrease in Investment Securities   (35,000)        (35,000)
Net Cash Used  by Investing Activities   (385,000)        (385,000)
                
CASH FLOWS FROM FINANCING ACTIVITIES               
Common Stock Issued for Cash   800,000         800,000 
Increase (Decrease) in Contributed Capital               
Increase (Decrease) in Notes Payable               
Net Cash provided by (used) in Financing Activities   800,000         800,000 
                
Net Increase (Decrease) in Cash   (298,968)        (298,969)
                
Cash at Beginning of Period   370,313         370,313 
Cash at End of Period   71,345         71,345 
                
Supplemental Disclosure of Noncash investing and financing activities:               
Common Shares issued, previously subscribed and paid for   100,000         100,000 
                
The Accompanying Notes are an Integral Part of These Financial Statements

 

 

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SIGNATURE

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  ZANDER THERAPEUTICS, INC.
   
Dated: May 30, 2019 By: 
  David Koos
  Chief Executive Officer

 

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