MyMD Pharmaceuticals, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

Discontinued Operations

3 Months Ended

Mar. 31, 2021

Note 5 – Discontinued Operations

The Company conducted a strategic review of the screening and testing products business. Following such review, in early July 2020, the Company ceased the production and sale of its rapid, point-of-care screening and testing products. The Company had been experiencing declining sales revenue and production backlogs for these products and, as it previously reported, had eliminated its sales force for such products.

The assets and liabilities of the discontinued operations have been reflected in the condensed consolidated balance sheet as of March 31, 2021 and consist of the following:

	March 31, 2021		December 31, 2020

Current Assets:
Prepaid Expenses	$	7,700	$	12,002
Total Assets	$	7,700	$	12,002

Current Liabilities
Trade and Other Payables	$	38,308	$	59,393
Total Liabilities	$	38,308	$	59,393

The results from the discontinued operations have been reflected in the condensed consolidated statements of operations for the three months ended March 31, 2021 and consist of the following:

	For the
	Three Months
	Ended
	March 31,
	2021
Product Revenue	$	-
Product Cost of Sales		2,340
Gross Loss		(2,340	)

Administrative Expenses		30,942
Regulatory and Compliance Expenses		2,110

Loss from Discontinued Operations	$	(35,392	)

As a result of the discontinued operations, the previously presented 2020 financial statements have been revised to present the consolidated financial statements of the continuing operations separate from the discontinued operations.

The effects on the Condensed Consolidated Statement of Comprehensive Loss for the three months ended March 31, 2020 were as follows:

	For the Three Months Ended
	March 31, 2020
	As Previously Reported			Adjusted			As Revised
Product Revenue	$	363,515		$	363,515		$	-
Product Cost of Sales		(172,871	)		(172,871	)		-
Gross Income		190,644			190,644			-

Research and Development Expenses		2,483,057			-			2,483,057
Administrative Expenses		1,157,732			102,584			1,055,148
Sales and Marketing Expenses		14,463			8,213			6,250
Compliance and Regulatory Expenses		72,091			72,091			-
Amortization of Non-Current Assets		8,874			8,874			-
Impairment of Intangible Assets		2,952			2,952			-

Loss from Operations		(3,548,525	)		(4,070	)		(3,544,455	)

Other (Income) Expense
Gain on Investments		36,714			-			36,714
Interest and Dividend Income		(46,703	)		-			(46,703	)
Total Other Income		(9,989	)		-			(9,989	)

Loss from Continuing Operations		(3,538,536	)		-			(3,534,466	)

Loss from Discontinued Operations		-			(4,070	)		(4,070	)

Loss Before Income Taxes		(3,538,536	)		-			(3,538,536	)

Income Tax Benefit		-			-			-

Net Loss		(3,538,536	)		-			(3,538,536	)

Other Comprehensive Loss
Net Unrealized Loss on Marketable Securities		(240,937	)		-			(240,937	)
Total Other Comprehensive Loss		(240,937	)		-			(240,937	)

Comprehensive Loss	$	(3,779,473	)	$	-		$	(3,779,473	)

The Company did not incur any depreciation, amortization or other significant operating non-cash items related to discontinued operations during the three months ended March 31, 2021.