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Ainos, Inc. AIMD US Equity

Information Technology · CIK 1014763 · FY ends Dec 31
$1.41
-0.01 (-0.70%)
USD · as of 2026-08-28 · marketstack

Ainos, Inc. (Nasdaq: AIMD), an SEC filer in Computer Peripheral Equipment, NEC, closed at $1.41, -0.7%, on 2026-08-28, with a market cap of $10M as of 2026-08-27, a return on equity of -128.0%, a net margin of -11897.0% and 3-year sales growth of -67.2%. Institutional ownership, earnings history and filed financials are on the tabs below.

AIMD · 10-K · period ended 2020-12-31

← all AIMD documents
filed 2021-03-30 · EDGAR original ↗

Our rendering of the filing — original pagination and typography are not reproduced, and tables are reduced to their short label cells (the figures live on FA). Nothing is summarized: every line below is the filing's own text.

blocks 1600 of 2,721126k characters rendered

10-K

1

amar_10k.htm

ANNUAL REPORT

amar_10k

U.S.

Securities and Exchange Commission

Washington, D.C.

20549

FORM 10-K

(Mark

One)

Commission File Number 0-20791

AMARILLO

BIOSCIENCES, INC.

(Exact

name of registrant as specified in its charter)

(Address of principal executive offices) Zip Code

Issuer’s

telephone number, including area code:

(806) 376-1741

Securities

registered under Section 12(b) of the Exchange Act.

None.

Securities

registered under Section 12(g) of the Exchange Act.

Common

Stock, Par Value $.01

Indicate by check mark whether the registrant is a well-known

seasoned issuer, as defined in Rule 405 of the Securities Act. [

]Yes [√ ]No

Indicate by check mark whether the issuer is not required to file

reports pursuant to Section 13 or 15(d) of the Exchange 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 Exchange

Act of 1934 during the past 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 if there is no disclosure of delinquent

filers in response to Item 405 of Regulation S-K (Sec. 229.405 of

this chapter) is not contained herein, and will not be contained,

to the best of registrant’s knowledge, in definitive proxy or

information statements incorporated by reference in Part III of

this Form 10-K or any amendment to this Form 10-K.

[√]

Indicate by check mark whether the registrant is a large

accelerated filer, an accelerated filer, a non-accelerated filer, a

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 is a shell company

(as defined in Rule 12b-2 of the Exchange Act). [ ] Yes [√]

No

As of

December 31, 2020, there were issued and outstanding 42,066,172

shares of the registrant’s common stock, par value $0.01,

which is the only class of common or voting stock of the

registrant. As of that date, the aggregate market value of

22,305,240 shares of common stock held by non-affiliates of the

registrant was approximately $3,791,891 (based on the closing price

of $0.17 for the common stock on the OTC BB.AMAR December 31,

2020). Shares of common stock held by officers, directors and each

shareholder owning ten percent or more of the outstanding common

stock have been excluded in that such persons may be deemed to be

affiliates.

The

number of shares of the Registrant’s common stock issued and

outstanding as of March 30, 2021 was 42,066,172.

PART

I

The following contains forward-looking statements that involve

risks and uncertainties. The Company’s actual results could

differ materially from those discussed in the forward-looking

statements as a result of certain factors, including those set

forth in “Management’s 2021 Plan of Operations”

as well as those discussed elsewhere in this Form 10-K. The

following discussion should be read in conjunction with the

Financial Statements and the Notes thereto included elsewhere in

this Form 10-K.

ITEM

1.

BUSINESS.

Overview

Amarillo

Biosciences, Inc. (the "Company” or “the

Company”) is a Texas corporation formed in 1984 engaged in

developing biologics for the treatment of human and animal

diseases. Our current focus is research aimed at the treatment of

human disease indications, particularly influenza, hepatitis C,

thrombocytopenia, and other indications using interferon (IFN)

alpha that is administered in a proprietary low-dose non-injectable

form. In addition to its core technology the Company is working to

expand the Company’s current focus into a diversified

healthcare business portfolio in order to generate new revenue

streams.

The

Company presently owns eight issued patents with two

patents pending. This collection consists of patents with claims

that encompass method of use or treatment, and/or composition of

matter and manufacturing as well as design utility and/or

invention. Of the eight issued patents, four patents are related to

the low-dose oral delivery of interferon, one patent is for a

product promoting oral health, and three patents are associated

with treatment of metabolic disorders.

The

Company primarily operates three business units: the Medical,

Pharmaceutical, and Consumer Product Divisions. Historically, the

Company has focused on R&D involving low-dose, orally

administered lozenges containing the natural immune system

activator interferon-alpha as a treatment for a variety of disease

indications. The Company owns a proprietary library of over thirty

years of scientific and clinical data on the human and animal

applications of low-dose oral interferon. Through the

Pharmaceutical Division, the Company seeks to out-license or

leverage in other ways its core technology by forming partnerships

to develop current and new discoveries and commercialize the

resulting products.

An

integral part of the company’s operating strategy is to

create multiple revenue streams through the implementation of

programs (including but not limited to in-licensing) of medical and

healthcare products and therapeutics. The Medical Division and

Consumer Products Division facilitate the enhancement of these

revenue streams. These programs will be the catalysts that allow

the Company to enter markets in Taiwan, Hong Kong, China, and other

Asian countries for the distribution of new medical and healthcare

products.

2

Over

the past several years the Company has focused its research efforts

towards the development of a novel pulsatile insulin pump infusion

therapy in Taiwan that consists of delivering insulin intravenously

in pulses, as opposed to the typical subcutaneous route of

administration, in order to more closely imitate how the pancreas

secretes insulin in healthy non-diabetics. The Company plans to

offer an innovative and comprehensive diabetes treatment that

provides solutions to all stages of diabetes from pre-diabetes

through late-stage diabetes with advanced complications. The

Company intends to target Taiwan first as an R&D base and

demonstration platform in Greater China, and subsequently establish

a licensing platform for clinics in Greater China. The Consumer

Product Division is presently focused on sales of liposomal

nutraceuticals and food supplements that include Vitamin C,

Glutathione, CoQ10, Curcumin/Resveratrol, DHA, and a

Multi-Vitamin.

The

Company maintains a representative branch office in Taiwan –

Amarillo Biosciences, Inc. (the “Taiwan Branch”) to

increase the Company's presence in Taiwan and to serve as an

operational hub to access growing Asian markets.

Injectable

high-dose interferon is FDA-approved to treat some neoplastic,

viral and autoimmune diseases. Many patients experience

moderate to severe side-effects causing them to discontinue

injectable interferon therapy. Our core technology is primarily

based on low-dose non-injectable interferon-alpha that is delivered

into the oral cavity as a lozenge in low doses. The lozenge

dissolves in the mouth where interferon binds to surface (mucosal)

cells in the mouth and throat, resulting in activation of hundreds

of genes in the peripheral blood that stimulate the immune

system. Human studies have shown that oral interferon is

safe and effective against viral and neoplastic diseases. Oral

interferon is given in concentrations 10,000 times less than that

usually given by injection. The Company’s low-dose

formulation results in almost no side effects, in contrast to high

dose injectable interferon, which causes adverse effects in at

least 50% of recipients.

Governmental

or FDA approval is required for low-dose oral interferon. We

believe that our technology is sound and can be commercialized for

various indications. Due to lack of appropriate interferon supply

in the market over the past several years, we have been

unsuccessful at such commercialization to date. However, as a

result of Covid-19, Chinese government health authorities have

recommended use of anti-AIDS drugs and interferon. The Company

believes this has brought renewed attention in the importance of

incorporating low-dose interferon as a treatment to help stem the

pandemic. In light of these circumstances, the Company is uniquely

positioned to potentially develop safe, low-dose

interferon.

While

the pharmaceutical industry is creating and marketing new and

effective anti-viral medications, there still exists opportunities

to develop and commercialize low-dose interferon as a safer

anti-viral treatment for influenza, hepatitis, and other conditions

caused by viruses such as genital warts and canker sores.

Interferon also has powerful cytotoxic effects which in combination

with its immune stimulating activities could play a role in the

rapidly expanding field of cancer immunotherapy. Other demonstrated

effects of interferon offer opportunities to commercialize low-dose

interferon for the treatment of Thrombocytopenia and chronic cough

in lung diseases such as COPD and Idiopathic Pulmonary Fibrosis

(IPF). The Company has the opportunity to capitalize on its

relationship channels in the Asian markets to explore sources of

raw materials, capital, production facilities, and to target a

significant and growing sales market.

Recent Business Expansion Opportunity

On

December 24, 2020, the Company entered into a Securities Purchase

Agreement (“Ainos Agreement”) with Ainos, Inc., a

Cayman Islands corporation (“Purchaser”) and certain

principal shareholders of the Company including (i) Stephen T.

Chen, individually and as Trustee of the Stephen T. Chen and

Virginia M. Chen Living Trust, dated April 12, 2018, (ii) Virginia

M. Chen, individually and as Trustee of the Stephen T. Chen and

Virginia M. Chen Living Trust, dated April 12, 2018, and (iii) Hung

Lan Lee (collectively, “Principal

Shareholders”).

3

Pursuant

to the Ainos Agreement, upon the closing of the transactions

contemplated thereby (the “Closing”), the Company will

acquire certain patent assets (the “Patent Assets”) by

issuing 100,000,000 shares of common stock (the

“Shares”) valued at $0.20 to Purchaser. The

Patent Assets encompass technologies relating to development and

manufacturing of point-of-care testing rapid test kit products that

include diagnostics for COVID-19 (SARS CoV2 Antigen Rapid Test),

pneumonia, vaginal infection and helicobacter pylori (H. pylori)

bacterial infection. The Company anticipates that the Shares

issued to the Purchaser will represent approximately 70.39% of the

issued and outstanding shares of common stock of the Company and

effect a change of control in the Company at the Closing. The

Ainos Agreement provides for certain registration rights to the

Purchaser regarding the Shares.

The

Closing is conditioned on the Company (1) obtaining shareholder

approval for, among other things: (i) the adoption of the Ainos

Agreement and approval of the transactions contemplated by the

Agreement; (ii) the amendment of the Company’s charter

documents to (A) increase the number of authorized shares of common

stock to 300,000,000 shares, and (B) rename the Company to

“Ainos, Inc.” or any other corporate name designated by

Purchaser and (iii) the expansion of the number of directors on the

Company’s Board of Directors (“Company Board”)

and the election of directors as designated by the Purchaser

(collectively, the “Company Actions Required for

Closing”); and (2) file with the Securities and Exchange

Commission (the “SEC”)_a proxy statement or information

statement, which shall include the recommendation of the Company

Board that the Company’s shareholders approve the Ainos

Agreement and authorize the transactions contemplated thereby (the

“Company Board Recommendation”).

The

Ainos Agreement contains certain customary termination rights that

are (i) in favor of each of the Company and Purchaser, including by

mutual agreement or for uncured breach by the other party and (ii)

in favor of Purchaser, including if there is a change of the

Company Board Recommendation or, if the Closing has not been

consummated by the end of day on the forty-fifty day after the date

of the Ainos Agreement, subject to certain limitations. The Ainos

Agreement contains customary representations, warranties and

covenants, including covenants obligating the Company to continue

to conduct its business in the ordinary course and to cooperate in

seeking regulatory approvals, as needed.

Under

the Ainos Agreement, the Principal Shareholders agree to be

responsible jointly and severally with the Company for the

Company’s indemnification obligations provided in the Ainos

Agreement and to cause their controlled entities to enter into

joinder agreements to be bound by the terms and conditions of the

Agreement as a Principal Shareholder prior to the

Closing.

The

foregoing description of the Ainos Agreement is not complete and is

qualified in its entirety by the text of the agreement, which is

included as Exhibit 2.1 to the Form 8-K filed by the Company with

the SEC on December 30, 2020.

On

December 18, 2020, the Company Board, and on January 25,

2021,the

holders owning a majority of the shares of common stock of the

Company as of the record date of January 22, 2021 approved the

Company Actions Required for Closing. The Company filed a

definitive information statement regarding the majority stockholder

approval of the Company Actions Required for Closing on March 19,

2021 and completed mailing of the information statements to its

shareholders on March 26, 2021. The Company expects the Closing to

occur on or after April 15, 2021, subject to the terms and

conditions of the Ainos Agreement.

4

Patents and Proprietary Rights

Since

inception, the Company has worked to build an extensive patent

portfolio for low-dose orally administered interferon. This

portfolio consists of patents with claims that encompass method of

use or treatment, and/or composition of matter and manufacturing.

As listed below, the Company presently owns eight issued

patents with two patents pending.

ACTIVE PATENTS:

"TREATMENT

OF THROMBOCYTOPENIA USING ORALLY ADMINISTERED INTERFERON" as

described and claimed in U.S. Patent No. 9,526,694 B2 issued

December 27, 2016, Owned. Expiration: April 2033.

“TREATMENT

OF THROMBOCYTOPENIA USING ORALLY ADMINISTERED INTERFERON" as

described and claimed in U.S. Patent No. 9,750,786 B2 issued

September 5, 2017, Owned. Expiration: April 2033.

“TREATMENT

OF THROMBOCYTOPENIA USING ORALLY ADMINISTERED INTERFERON" as

described and claimed in U.S. Patent No. 9,839,672 B2 issued

December 12, 2017, Owned. Expiration: April 2033.

"TREATMENT

OF THROMBOCYTOPENIA USING ORALLY ADMINISTERED INTERFERON" as

described and claimed in TAIWAN Patent No. I592165 issued July 21,

2017, Owned. Expiration: May 2033.

"COMPOSITION

AND METHOD FOR PROMOTING ORAL HEALTH" as described and claimed in

U.S. Patent No. 6,656,920 B2 issued December 2003, Owned.

Expiration: April 2021.

“SMART DRUG INJECTION DEVICE” as described and claimed

in TAIWAN invention patent application number 108137797, Owned,

Issued: November 27, 2020, Expiration: October 18,

2039

“SMART DRUG INJECTION DEVICE” as described and claimed

in TAIWAN design utility model patent application number 108213819,

Owned, Issued: December 12, 2019, Expiration: November 11,

2038.

“SMART DRUG INJECTION DEVICE” as described and claimed

in CHINA design utility model patent application number

201921808292.6, Owned, Issued: July 28, 2020, Expiration: June 27,

2039.

“SMART DRUG INJECTION DEVICE” as described and claimed

in CHINA invention patent application number 201911024619.5,

Pending.

“SMART DRUG INJECTION DEVICE” as described and claimed

in US invention patent application number 17/069,418,

Pending.

There

are no current patent litigation proceedings involving the

Company.

Cost of Compliance with Environmental Regulations

The

Company incurred no costs to comply with environment regulations in

2020.

United States Regulation

Before

products with health claims can be marketed in the United States,

they must receive approval from the U.S. Food and Drug

Administration (“FDA”). To receive this approval, any

drug must undergo rigorous preclinical testing and clinical trials

that demonstrate the product candidate’s safety and

effectiveness for each indicated use. This extensive regulatory

process controls, among other things, the development, testing,

manufacture, safety, efficacy, record keeping, labeling, storage,

approval, advertising, promotion, sale, and distribution of

pharmaceutical products.

5

In

general, before any ethical pharmaceutical product can be marketed

in the United States, the FDA will require the following

process:

● Preclinical laboratory and animal tests;

● Submission of a New Drug Application (NDA) to the FDA; and

Substantial

financial resources are necessary to fund the research, clinical

trials, and related activities necessary to satisfy FDA

requirements or similar requirements of state, local, and foreign

regulatory agencies. At such time as the Company undertakes to

commercialize any of its products, all necessary preclinical

testing, clinical trials, data review, and approval steps will be

judiciously executed to insure that the product satisfies all

regulatory requirements at all levels.

505(b)(2)

The

Company has historically followed and will continue to follow the

traditional approval process for New Drugs as set out in Section

505(b)(1) of the Federal Food, Drug, and Cosmetic Act. If an

alternative path to FDA approval for new or improved formulations

of previously approved products is scientifically and economically

feasible and beneficial to the Company and the public, the Company

may choose to follow this alternative path as established by

section 505(b)(2) of the Federal Food, Drug, and Cosmetic Act. This

section of the Act permits the applicant to rely on certain

preclinical or clinical studies conducted for an approved product

as some of the information required for approval and for which the

applicant has not obtained a right of reference. The process of

approval under 505(b)(2) will be followed as judiciously as

505(b)(1) or any regulation.

Orphan Drug Designation

Under

the Orphan Drug Act, the FDA may grant orphan drug designation to

drugs intended to treat a rare disease or condition, which is

generally a disease or condition that affects fewer than 200,000

individuals in the United States. The Company may choose to seek

approval for a product satisfying the definition of an Orphan Drug

if that product can be used to treat such an indication. Orphan

drug designation does not convey any advantage in or shorten the

duration or rigidity of the regulatory review and approval process.

Similarly,

substantial financial resources are necessary to fund the research,

design, testing, fabrication and related activities necessary to

satisfy FDA requirements or similar requirements of state, local,

and foreign regulatory agencies for medical devices. The Company

may seek to obtain FDA clearance for the sales, marketing, and use

of its novel pulsatile insulin pump for the U.S. market after

obtaining FDA approvals under one of the following regulatory

approvals:

Premarket Notification 510(k)

Each person who intends to market in the U.S., a Class I, II, and

III device intended for human use, for which a Premarket Approval

application (“PMA”) is not required, must submit a

510(k) to FDA unless the device is exempt from 510(k) requirements

of the Federal Food, Drug, and Cosmetic Act (the “FD&C

Act”) and does not exceed the limitations of exemptions in .9

of the device classification regulation chapters (e.g., 21 CFR

862.9, 21 CFR 864.9).

6

If the

Company’s novel pulsatile insulin pump is determined to be

similar to one already cleared for the U.S. market, the Company

will seek FDA clearance under 510(k) at least 90 days before the

device is marketed. A

510(k) application requires demonstration of substantial

equivalence to another legally U.S. marketed device. Substantial

equivalence means that the new device is as safe and effective as

the predicate. Documented laboratory testing among other

submissions will be required and if the Company’s device

features significant alterations from predecessor devices the

Company may be required to present results from clinical

trials.

Premarket Approval (PMA)

Alternatively,

if the Company’s device is deemed to be completely new to the

U.S. market or classifiedas aClass

III device,the

Company will be required to apply for PMA approval. The Medical Device Amendments of 1976

to the FD&C Act established three regulatory classes for

medical devices. The three classes are based on the degree of

control necessary to assure that the various types of devices are

safe and effective. The most regulated devices are in Class III.

The amendments define a Class III device as one that supports or

sustains human life or is of substantial importance in preventing

impairment of human health or presents a potential, unreasonable

risk of illness or injury

Under Section 515 of the FD&C Act, all devices placed into

Class III are subject to premarket approval requirements. Premarket

approval by FDA is the required process of scientific review to

ensure the safety and effectiveness of Class III

devices.

Foreign Regulation

In

addition to regulations in the United States, a variety of foreign

regulations govern clinical trials and commercial sales and

distribution of products in foreign countries. Whether or not the

Company obtains FDA approval for a product, the Company must obtain

approval of a product by the comparable regulatory authorities of

foreign countries before the Company can commence clinical trials

or market the product in those countries. The approval process

varies from country to country, and the time may be longer or

shorter than that required for FDA approval. The requirements

governing the conduct of clinical trials, product licensing,

pricing and reimbursement vary greatly from country to

country.

The

policies of the FDA and foreign regulatory authorities may change

and additional government regulations may be enacted which could

prevent or delay regulatory approval of investigational drugs or

approval of new diseases for existing products and could also

increase the cost of regulatory compliance. It is not possible to

predict the likelihood, nature or extent of adverse governmental

regulation that might arise from future legislative or

administrative action, either in the United States or

abroad.

Research and Development

During

the year ended December 31, 2020, the Company incurred $40,389 of

which $40,000 was paid in stock and $389 in cash, towards research,

development and IP protection related activities associated

entirely with the development of a proprietary pulsatile insulin

treatment. Other than corporate administrative and professional

accounting fees related to maintaining public listing requirements,

a significant portion, if not all, of the Company’s Selling,

General & Administrative expenses were also allocated towards

the research and development of the Company’s pulsatile

insulin treatment pump.

7

The

better focus the Company’s research and development efforts,

the Company elected to terminate or not extend the following

licensing agreements and transactions:

A License Agreement

by and between the Company and The Texas A&M University System,

dated as of March 22, 1998 and amended by that certain Amendment

No. 1, dated as of September 28, 1998. The Licensor licensed to the

Company certain intellectual property rights under U.S. Patent

Number 4,497,795 entitled “Appetite and Feed/Gain”,

Continuation-in-Part Patent Application filed January 4, 1985

entitled “Method of Using Interferon in Low Dosage to

Regulate Appetite and Efficiency of Food Utilization”, U.S.

Patent Application Serial Number 814,317 filed December 30, 1985

entitled “Low Dosage of Interferon to Enhance Vaccine

Efficiency”, U.S. Patent Application Serial Number 044,317

filed April 30, 1987 entitled “Improved Method of

Administering Interferon”, and U.S. Patent Application Serial

Number 927,834 filed November 6, 1986 entitled “Treatment of

Immune-Resistant Disease” (the “Texas A&M

University Patent License Agreement”). The subject license

expired in 2019 and the Company elected not to extend or renew the

license.

Term Sheet for

Cooperative Development and Licensing Venture between the Company

and Xiamen Weiyang Pharmaceutical Co., Ltd. dated July 19, 2019

(“Xiamen Term Sheet”). The Xiamen Term Sheet expired as

of October 19, 2019 and ABI has issued a notification of expiration

dated December 22, 2020.

Memorandum of

Understanding between the Company and Leadtek Research, Inc. dated

June 30, 2020 (“Leadtech MOU”). The Term Sheet expires

as of December 31, 2020 and ABI has issued a notification of

expiration dated December 22, 2020.

Employees

The

Company currently has two full-time employees and two part-time

employees. Of these four employees, two are executive officers and

two work in administrative capacities.

Stephen T. Chen: Chairman, Chief Executive Officer (CEO), President

and Chief Operating Officer (COO), and Chief Financial Officer

(CFO). Dr. Chen was named Chairman of the Board in February 2012,

and he has been a director of the Company since February 1996. He

currently executes the management functions as not only Chairman,

but as CEO, President, COO, and CFO.

Bernard Cohen: Vice President - Administration (VP-Admin). Mr.

Cohen holds BBA and MPA degrees from West Texas A&M University.

He is a long time Amarillo resident with over thirty years of

management experience. Mr. Cohen has been with the Company since

October 2009. Mr. Cohen works with Ms. Shelton, providing the

reporting necessary for the Company’s various SEC filings,

and ordinary-course internal bookkeeping and accounting

services.

Chrystal Shelton: Office Manager & Administration. Ms. Shelton

has been with the Company since 1987. In addition to handling

routine office administration, Ms. Shelton is responsible for

accounting, form, and formatting of SEC filings. She is an integral

part of the reporting process and interacts with outside

professionals who assist the Company in its various compliance

measures.

Maggie Wang: Director of Business Development. Ms. Wang has an

extensive background in business development and marketing of

consumer products in Asian countries. Ms. Wang is also the branch

manager for the Taiwan Branch.

Consultants

From time to time, the Company engages consultants as needed for

specific areas of responsibility. Presently, the Company has

engaged the following consultants: John Junyong Lee, Esq. - Chief

Legal Counsel, Dr. Yung-Hsiang Hung - Director-Medical Division;

Jenny Chiu- Legal and Regulatory Consultant; and Mr. Lawrence Lin-

Executive Advisor. On December 18, 2020, the Board of Directors

nominated and approved the appointment of Mr. John Junyong Lee as

the Company corporate secretary, filling the position vacated by

the former secretary, Mr. Edward L. Morris, Esq. upon his

retirement.

8

ITEM

1A.

RISK

FACTORS.

Please

carefully consider the following discussion of significant factors,

events, and uncertainties that make an investment in our securities

risky. The events and consequences discussed in these risk factors

could, in circumstances we may or may not be able to accurately

predict, recognize, or control, have a material adverse effect on

our business, growth, reputation, prospects, financial condition,

operating results (including components of our financial results),

cash flows, liquidity, and stock price. These risk factors do not

identify all risks that we face; our operations could also be

affected by factors, events, or uncertainties that are not

presently known to us or that we currently do not consider to

present significant risks to our operations. In addition, the

global economic climate amplifies many of these risks.

We Face Intense Competition

The

pharmaceutical industry is an expanding and rapidly changing

industry characterized by intense competition. The Company believes

that our ability to compete will be dependent in large part upon

our ability to successfully operate business lines, continue

recapitalization, and steadily enhance and improve our core

technology products. In order to do so, we must effectively utilize

and expand our research and development capabilities and, once

developed, quickly convert new technology into products and

processes, which can then be commercialized. Competition is based

primarily on scientific and technological superiority, technical

support, availability of patent protection, access to adequate

capital, the ability to develop, acquire and market products and

processes successfully, the ability to obtain governmental

Source: SEC EDGAR (public domain) · 10-K for the period ended 2020-12-31, filed 2021-03-30 · accession 0001654954-21-003517

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