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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-K/A

(Amendment No. 3)

 

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
  For the fiscal year ended December 31, 2021

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
  For the transition period from ___________ to ___________

 

Commission file number 001-38190

 

Panacea Life Sciences Holdings, Inc.

(Exact Name of Registrant as Specified in Its Charter)

 

Nevada   27-1085858

State or Other Jurisdiction of

Incorporation or Organization

 

I.R.S. Employer

Identification No.

     
5910 S University Blvd, C18-193, Greenwood Village, CO   80121
Address of Principal Executive Offices   Zip Code

 

(800) 985-0515

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
N/A   N/A   N/A

 

Securities registered pursuant to Section 12(g) of the Act: Common Stock, par value $0.0001 per share

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ☐ No

 

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 ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

  Large accelerated filer ☐ Accelerated filer ☐  
  Non-accelerated filer Smaller reporting company  
  Emerging growth company    

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No

 

The aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter, June 30, 2021, was approximately $11,185,976. The aggregate market value gives effect to the closing of the Securities Exchange Agreement dated June 30, 2021.

 

The number of outstanding shares of registrant’s common stock was 14,965,317, par value $0.0001 per share, as of June 21, 2022.

 

DOCUMENTS INCORPORATED BY REFERENCE

 

This Amendment No. 3 on Form 10-K/A to Form 10-K for the fiscal year ended December 31, 2021 is being filed to revise the Certification filed as Exhibit 31.1 to Amendment No. 2 on Form 10-K. This Amendment No. 3 on Form 10-K/A does not change the previously reported financial statements or any of the other disclosures contained in Part I, Part II or Part III of the Form 10-K, originally filed on March 31, 2022 and as amended by Amendment No. 1 on Form 10-K/A filed on April 29, 2022, and Amendment No. 2 on Form 10-K/A filed on May 18, 2022.

 

Audit Firm ID Auditor Name Auditor Location
 5041 BF Borgers CPA PC  Lakewood, CO

 

 

 

 

 

 

TABLE OF CONTENTS

 

    Page
  Form 10-K/A  
     
Item 9A.

EXPLNATORY NOTE

2
     
  Controls and Procedures 2
     
  Exhibit Index 4
     
  Signatures5



 1 

 

 

EXPLANATORY NOTE

 

This Amendment No. 3 on Form 10-K/A (the “Amendment”) amends the Annual Report on Form 10-K (the“2021 Form 10-K”) of Panacea Life Sciences Holdings, Inc. (the “Company”) for the year ended December 31, 2021 (“Fiscal 2021”), as filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2022 and as amended on April 29, 2022 (the “Original Form 10-K”). The Company filed a second amendment to the 2021 Form 10-K on May 18, 2022 (the “Second Amendment ”) to clarify Part II, Item 9A “Internal control over financial reporting” (“Item 9A”) of the Original Form 10-K, which inadvertently omitted language necessary to meet the requirements of Item 308(a) of Regulation  S-K. As requested by the Staff of the SEC, Item 9A is also included in the Amendment. This Amendment also includes a revised Exhibit 31.1 which includes all of the required paragraphs including those inadvertently omitted in Exhibit 31.1 to the Second Amendment.

 

The new Item 9A provides a statement of management’s responsibility for establishing and maintaining adequate internal control over financial reporting and clarifies the framework our management uses to assess the effectiveness of such controls as of the end of our fiscal year ended December 31, 2021, including a statement regarding the conclusion of our Principal Executive Officer and our former Principal Financial Officer listing the material weakness in our internal control over financial reporting and a plan to rectify the material weaknesses.

 

The Amendment does not amend the Original Form 10-K in any other way. Specifically, it does not update the Original Form 10-K to reflect events occurring after March 31, 2022. In addition, the Exhibit Index in Item 15 of Part IV of the 2021 Form 10-K is hereby amended and restated in its entirety and currently dated certifications required under Section 302 of the Sarbanes-Oxley Act of 2002 are filed as exhibits to this Amendment. Because no financial statements are contained within this Amendment, we are not filing currently dated certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 

Except as described above, no other changes have been made to the 2021 Form 10-K. The 2021 Form 10-K continues to speak as of the date of the 2021 Form 10-K, and we have not updated the disclosures contained therein to reflect any events which occurred at a date subsequent to the filing of the 2021 Form 10-K other than as expressly indicated in this Amendment.

 

Item 9A. Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures

 

Our management carried out an evaluation, with the participation of our principal executive officer (who currently also serves as our principal financial officer) and our former principal financial officer, required by Rule 13a-15 or 15d-15 of the Securities Exchange Act of 1934 (the “Exchange Act”) of the effectiveness of our disclosure controls and procedures as defined in Rule 13a-15(e) or 15d-15(e) under the Exchange Act. Based on their evaluation, our principal executive officer and our former principal financial officer concluded that our disclosure controls and procedures were ineffective as of the end of the period covered by this report to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and is accumulated and communicated to our management, including our principal executive officer and former principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

 

Management’s Annual Report on Internal Control over Financial Reporting

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act). Our management, under the supervision and with the participation of our principal executive officer and principal financial officer, evaluated the effectiveness of our internal control over financial reporting as of the end of the period covered by this report. Our management’s evaluation of our internal control over financial reporting was based on the framework in Internal Control-Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission. In designing and evaluating the disclosure controls and procedures, management recognizes that because of inherent limitations, any controls and procedures, no matter how well designed and operated, may not prevent or detect misstatements and can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

 

 2 

 

 

Our internal control over financial reporting includes those policies and procedures that:

 

  pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;
  provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and
  provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

 

Management’s Assessment of the Effectiveness of the Company’s internal Control over Financial Reporting

 

Our principal executive officer and our former principal financial officer concluded that our disclosure controls and procedures were not effective to ensure that the information relating to us is required to be disclosed in our SEC reports (i) is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and (ii) is accumulated and communicated to our management to allow timely decisions regarding required disclosure as a result of the following material weaknesses in our internal control over financial reporting:

 

  The Company does not have sufficient segregation of duties within accounting functions due to only having two officers and limited resources.
  The Company does not have an audit committee; and
  The Company does not have written documentation of our internal control policies and procedures.

 

We plan to rectify these weaknesses by establishing written policies and procedures for our internal control of financial reporting and hiring additional accounting personnel at such time as we raise sufficient capital to do so.

 

Changes in Internal Controls over Financial Reporting

 

There have been no changes in the internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended December 31, 2021 that have materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

 3 

 

 

PART IV

 

Item 15. Exhibits, Financial Statements Schedules

 

(a) Documents Filed as part of the report.

 

(1) Financial Statements. See Index to Consolidated Financial Statements, which appears on page F-1 hereof. The financial statements listed in the accompanying Index to Consolidated Financial Statements are filed herewith in response to this Item.

 

(2) Exhibits. See the Exhibit Index.

 

        Incorporated by Reference   Filed or Furnished
Exhibit #   Exhibit Description   Form   Date   Number   Herewith
3.1   Amended Articles of Incorporation   8-K   7/7/21   3.1    
3.1(a)   Certificate of Amendment to its Amended and Restated Articles of Incorporation – name change and reverse stock split   8-K   10/29/21   3.1    
3.2   Amended and Restated Bylaws   10-K   3/31/22   3.2    
3.3   Certificate of Designation for Series A Preferred Stock   8-K   2/18/21   4.1    
3.4   Certificate of Designation for Series B-1 Preferred Stock   8-K   3/4/16   3.1    
3.5   Certificate of Designation for Series B-2 Preferred Stock   8-K/A   2/17/16   3.2    
3.6   Certificate of Designation for Series C Preferred Stock   10-Q   8/23/21   3.7    
3.7   Certificate of Designation for Series C-1 Preferred Stock   10-Q   8/23/21   3.8    
3.8   Certificate of Designation for Series C-2 Preferred Stock   8-K   10/29/21   3.2    
3.9   Certificate of Designation for Series D Preferred Stock   10-Q   8/23/21   3.9    
3.10   Certificate to Withdrawal for Series A   10-K/A   4/29/22   3.10    
4.1   Description of securities registered under Section 12 of the Exchange Act of 1934   10-K   3/31/22   4.1    
10.1   Agreement (redacted) with Dr. Krassen Dimitrov, Digital Diagnostic, Inc. and KD Innovation, Ltd.+   8-K   1/27/21   10.2    
10.2   Securities Purchase Agreement (redacted)+   8-K   2/18/21   10.1    
10.3   Exchange Agreement   8-K   2/18/21   10.2    
10.5   Settlement and Release Agreement with Creed2Med, LLC   10-K/A   4/23/21   10.6    
10.6   Supply Agreement   10-K   4/15/21   10.3    
10.7   Note and Loan Agreement   8-K   4/26/21   10.1    
10.8   Form of Securities Exchange Agreement   8-K   7/7/21   10.1    
10.9   Form of Indemnification Agreement*   8-K   7/7/21   10.2    
10.10   Employment Agreement dated June 30, 2021 – Leslie Buttorff*   10-Q   8/23/21   10.2    
10.11   Form of Promissory Note issued to Quintel-MC Incorporated (Panacea)   10-Q   8/23/21   10.5    
10.12   Form of Promissory Note issued to Leslie Buttorff (Panacea)   10-Q   8/23/21   10.6    
10.13   Form of Promissory Note issued to Leslie Buttorff (Exactus)   10-Q   8/23/21   10.7    
10.14   Note Exchange Agreement+**   10-Q   8/23/21   10.8    
10.15   Assignment of lease   10-Q   8/23/21   10.9    
10.16   Form of Securities Purchase Agreement**   8-K   11/24/21   10.1    
10.17   Form of Original Issue Discount Senior Convertible Promissory Note   8-K   11/24/21   10.2    
10.18   Form of Warrant   8-K   11/24/21   10.3    
10.19   Form of Registration Rights Agreement**   8-K   11/24/21   10.4    
10.20   Amended and Restated 2021 Equity Incentive Plan*   10-K   3/31/22   10.20    
16.1   Letter from RBSM LLP, dated December 28, 2021   8-K   12/29/21   16.1    
23.1   Consent of BF Borgers CPA PC               Filed^
31.1   Certification of Principal Executive Officer and Principal Financial Officer (302)               Filed
32.1   Certification of Principal Executive and Principal Financial Officer (906)               Furnished***^
101.INS   Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document                
101.SCH   Inline XBRL Taxonomy Extension Schema Document               Filed^
101.CAL   Inline XBRL Taxonomy Extension Calculation Linkbase Document               Filed^
101.DEF   Inline XBRL Taxonomy Extension Definition Linkbase Document               Filed^
101.LAB   Inline XBRL Taxonomy Extension Label Linkbase Document               Filed^
101.PRE   Inline XBRL Taxonomy Extension Presentation Linkbase Document               Filed^
104   Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)                

 

* Management contract or compensatory plan or arrangement.

 

** Exhibits and/or Schedules have been omitted. The Company hereby agrees to furnish to the Securities and Exchange Commission upon request any omitted information.

 

*** This exhibit is being furnished rather than filed and shall not be deemed incorporated by reference into any filing, in accordance with Item 601 of Regulation S-K.

 

+Portions of this exhibit have been omitted as permitted by the rules of the SEC. The information excluded is both (i) not material and (ii) the type that the Company customarily and actually treats as private or confidential. The Company undertakes to submit a marked copy of this exhibit for review by the SEC Staff, to the extent it has not been previously provided, and provide supplemental materials to the SEC Staff promptly upon request.

 

^ Previously filed with our 2021 Form 10-K, originally filed with the SEC on March 31, 2022, which is being amended hereby.

 

Copies of this Report (including the financial statements) and any of the exhibits referred to above will be furnished at no cost to our shareholders who make a written request to Panacea Life Sciences Holdings, Inc., at the address on the cover page of this Report, Attention: Corporate Secretary.

 

 4 

 

 

SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  Panacea Life Sciences Holdings, Inc.
     
Date: June 27, 2022 By: /s/ Leslie Buttorff
    Principal Executive Officer and Principal Financial Officer

 

 5