UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: ~~June~~December 3031, 2021

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

Commission file number:

000-54672

American CryoStem Corporation (Exact name of registrant as specified in its charter)

(Exact Name of Registrant as Specified in its Charter)

Nevada

26-4574088

(State or Other Jurisdiction of
Incorporation or Organization)

(I.R.S. Employer
Identification No.)

Nevada		26-4574088
1 Meridian Road, Eatontown, NJ		07724
(State or Other Jurisdiction of		(I.R.S. Employer
(Address of Principal Executive Offices)		(Zip Code)
Incorporation or Organization)		Identification No.)

1(732) Me747-1007 ~~Road~~(Registrant’s telephone number, ~~Eatontown~~including area code) (Former name, NJformer ~~07724~~address and former fiscal year, if changed since last report)

(Address of Principal Executive Offices) (Zip Code)

(732) 747-1007

(Registrant’s Telephone Number, Including Area Code)

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

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

Title of each class	Trading symbol(s)	Name of each exchange on which registered

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.

x Yes o No

Indicate by check mark whether the registrant has submitted electronically 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~~ that the registrant was required to submit such files).

x Yes o No

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 o Accelerated filer o Non-accelerated ~~Filer~~filer x Smaller reporting company x Emerging growth company o

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. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

o Yes x No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of ~~August~~February 1318, ~~2021~~2022, the issuer’s $0.001 par value Common Stock totaled 6043,~~584~~521,~~185~~920 shares outstanding.

TABLE OF CONTENTS

		Page No.	~~Page No.~~
PART I. - FINANCIAL INFORMATION		3	3
Item 1.	Consolidated Financial Statements.	3	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Plan of Operations.	18	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	38	33
Item 4.	Controls and Procedures.	38	34
PART II - OTHER INFORMATION		39	35
Item 1.	Legal Proceedings.	39	35
Item 1A.	Risk Factors.	39	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	39	35
Item 3.	Defaults Upon Senior Securities.	39	36
Item 4.	Mine Safety Disclosures	39	36
Item 5.	Other Information.	39	36
Item 6.	Exhibits.	39	36

PART I. –- FINANCIAL INFORMATION

~~Item~~ ITEM 1. CONSOLIDATED ~~Financial~~FINANCIAL ~~StatementS~~STATEMENTS.

American CryoStem Corporation

Consolidated Balance Sheets

As of ~~June 30~~December 31, 2021 and September 30, ~~2020~~2021

	30-Jun-21			30-Sep-20
ASSETS	31-Dec-21			30-Sep-21
	Unaudited
ASSETS
Current Assets:
Cash	$	7103,~~369~~027		$	418,~~760~~244
Accounts Receivable - net of allowance for bad debt		~~874~~83,~~560~~736			~~500~~78,~~000~~782
Inventory		2523,~~782~~928			2017,~~401~~934
Prepaid Expenses		—			5,000
Deferred Contract Expense		39,370			39,370
Total Current Assets		907,711			567,161
Prepaid Expenses		37,942			52,619
Total Current Assets		288,003			196,949
Other Assets:
Investment in Baoxin - at cost		~~300~~244,~~000~~919			~~300~~244,~~000~~919
Security Deposit		13,540			13,540
Patents and Patents Development - net of accumulated amortization		~~367~~377,~~843~~998			~~365~~371,~~676~~849
Fixed Assets - net of accumulated depreciation		~~188~~110,~~788~~206			~~126~~113,~~591~~483
Finance Lease - Right-of-Use-Asset		—107,815			85115,~~817~~516
Operating Lease Right-of-Use-Asset		—			18,064
Total Assets	$	1,142,481		$	1,056,256
Total Assets	$	1,777,882		$	1,476,849
LIABILITIES AND SHAREHOLDERS’ DEFICIT
Current Liabilities:
Accounts Payable & Accrued Expenses	$	~~309~~244,~~573~~018		$	~~181~~553,~~924~~120
Legal & Accounting Payable		6046,~~738~~221			2397,~~568~~824
Bridge Notes Payable		226,500			226,500
Convertible Notes Payable		~~573~~709,~~500~~544			~~558~~573,~~552~~500
PPP Loan - Current Portion		23,407			1423,~~304~~407
Finance Lease Liability		—33,100			2634,~~722~~512
Operating Lease Liability		—			18,064
Deferred Revenue		84,360			122,045
Total Current Liabilities		1,~~193~~367,~~718~~150			1,~~049~~630,~~634~~908
Long Term Liabilities:
PPP Loan		—			9,103
Accrued Executive Salaries		1,073,186			980,186
Accrued Executive Salaries		920,186			740,186
Convertible Notes Payable		—			132,631
Convertible Notes Payable		129,218			—
Finance Lease Liability		2,961			11,651
Note Payable to Related Parties		147,775			99,125
Note Payable to Related Party		130,433			147,775
Payable to Related Paty		629			—
Payable to Related Party		—			658
Total Liabilities		2,~~391~~573,~~526~~730			12,~~898~~903,~~048~~809
Commitments and Contingencies		0			0
Shareholders’ Deficit:
Preferred Stock - $.0001 par value, 50,000,000 shares authorized, 0 shares issued and outstanding at June 30, 2021 and September 30, 2020		0			0
Preferred Stock - $.0001 par value, 50,000,000 shares authorized, 1,000,000 shares issued and outstanding at December 31, 2021 and 0 shares issued and outstanding at September 30, 2021		100			0
Common Stock - $.001 par value, 300,000,000 shares authorized, 60,584,185 shares issued and outstanding at June 30, 2021 and 59,570,666 issued and outstanding at September 30, 2020		60,585			59,572
Common Stock - $.001 par value, 300,000,000 shares authorized, 43,521,920 shares issued and outstanding at December 31, 2021 and 61,374,524 issued and outstanding at September 30, 2021		43,523			61,376
Additional Paid in Capital		1618,~~541,~~183,648			1517,~~917~~368,~~408~~836
Accumulated Deficit		(1719,~~215~~658,~~412~~520	)		(1619,~~398~~277,~~179~~765	)
Total Shareholders’ Deficit		(~~613~~1,~~644~~431,249	)		(~~421~~1,~~199~~847,553	)
Total Liabilities & Shareholders’ Deficit	$	1,~~777~~142,~~882~~481		$	1,~~476~~056,~~849~~256

See the notes to the financial statements.

American CryoStem Corporation

Consolidated Statements of Operations

For the ~~Nine~~Quarters ~~Months and the Three Months~~ Ended ~~June~~December 3031, 2021 and 2020

Unaudited

	9 months						3 months
	31-Dec-21			31-Dec-20
	30-Jun-21			30-Jun-20			30-Jun-21			30-Jun-20
Revenues
Revenues
Tissue Processing & Storage	$	60,585		$	1,600
Tissue Processing & Storage	$	7,575		$	11,900		$	4,800			—
Product Sales		600			—
Product Sales		760			22,670			—			6,770
Licensing Fees & Royalties		—			125,000
Licensing Fees & Royalties		375,000			398,333			125,000			131,666
Total Revenues		61,185			126,600
Total Revenues		383,335			432,903			129,800			138,436
Less Cost of Revenues		(18,862	)		(3,301	)
Less Cost of Revenues		(8,672	)		(21,216	)		(582	)		(4,506	)
Gross Margin		42,323			123,299
Gross Margin		374,663			411,687			129,218			133,930
Operating Expenses
Operating Expenses
Clinical Study		2,031			—
Research & Development		298,889			—			119,570			—
Laboratory Expense		19,496			46,626
Laboratory Expense		50,056			78,702			17,712			14,904
Sales & Marketing		435			762
Sales & Marketing		5,196			24,314			1,186			1,553
Professional Fees		50,516			17,935
Professional Fees		142,026			81,230			39,836			9,010
General & Administrative		324,322			106,529
Stock Compensation Expense		296,109			—			296,109			—
Total Operating Expenses		396,800			171,852
Bad Debt Expense		990			326,800			990			—
Net Gain (Loss) from Operations		(354,477	)		(48,553	)
General & Administrative		346,798			342,630			95,589			108,384
Other Income (Expenses):
Total Operating Expenses		1,140,064			853,676			570,992			133,851
Interest Income		—			2
Net Gain (Loss) from Operations		(765,401	)		(441,989	)		(441,774	)		79
Laboratory Rent		—			3,000
Other Income (Expenses):
Gain on write off of Liability		—			24,000
Interest Income		3			27			—			5
Interest Expense		(22,865	)		(16,292	)
EIDL Grant		—			4,000			—			4,000
Interest Expense (beneficial conversion feature-debenture)		(3,413	)		(8,191	)
Laboratory Rent		3,000			—			—			—
Net Loss		(380,755	)		(46,034	)
Gain on Value of Derivative		—			7,968			—			(125,924	)
Basic & Fully Diluted Net Income (Loss) per Common Share:	$	(0.007	)	$	(0.001	)
Gain on write off of Liability		24,000			174,167			—			7,500
Weighted Average of Common Shares Outstanding - Basic & fully diluted		53,541,539			59,677,562
Loss on Debt Settlement		—			(2,504	)		—			—
Foreign Taxes		—			(19,192	)		—			(5,384	)
Loss on Loan Issuance		—			(92,951	)		—			—
Amortization of Debt Discount		—			(168,000	)		—			(84,000	)
Exchange Rate		86			386			—			386
Interest Expense		(59,422	)		(61,858	)		(21,283	)		(18,928	)
Interest Expense (beneficial conversion feature-debenture)		(19,499	)		(49,573	)		(3,413	)		(8,191	)
Penalties		—			(25	)		—			—
Net Loss	$	(817,233	)	$	(649,544	)	$	(466,470	)	$	(230,457	)
Basic & Fully Diluted Net Income (Loss) per Common Share:	$	(0.014	)	$	(0.013	)	$	(0.008	)	$	(0.004	)
Weighted Average of Common Shares Outstanding - Basic & fully diluted		60,141,838			50,578,058			60,496,428			51,967,950

See the notes to the financial statements.

American CryoStem Corporation

Consolidated Statements of Cash Flows

For the ~~Nine~~Quarters ~~Months~~ Ended ~~June~~December 3031, 2021 and 2020

Unaudited

	30-Jun-21			30-Jun-20
	31-Dec-21			31-Dec-20
Operating Activities:
Net loss	$	(~~817~~380,~~233~~755	)	$	(~~649~~46,~~544~~034	)
Adjustments to reconcile net loss items not requiring the use of cash:
Gain on Write Off of Liability		~~(24,000~~	)		—(24,000	)
Derivative change in fair value		—			(7,968	)
Common Stock for Services					20,000
Loss on Loan Issuance		—			92,951
Depreciation & Amortization Expense		14,509			9,297
Amortization of Debt Discount		—			168,000
Stock Based Compensation		105,522
Bad Debt Expense		990			326,800
Interest paid in Common Stock		26,537
Common Stock for Services		41,000			1,750
Interest Expense - Beneficial Conversion Feature		3,413			8,191
Stock Compensation Expense		296,109			—
Interest paid in Common Stock		44,346			60,366
Interest Expense - Beneficial Conversion Feature		19,499			49,573
Depreciation & Amortization Expense		56,640			27,578
Changes in operating assets and liabilities
Accounts Receivable		(~~375~~4,~~550~~954	)		(~~372~~126,~~576~~600	)
Prepaid expense		80,000			—
Inventory		(5,994	)		(1,932	)
Inventory		(5,381	)		(13,839	)
Prepaid expense		14,677			(7,500	)
Accounts Payable and Accrued Expenses		~~188~~(360,~~819~~705	)		~~(259~~28,~~562~~927	)
Accrued Executive Compensation		180,000			180,000
Accrued Executive Salaries		93,000			60,000
Deferred Revenue		—(37,685	)		~~(23,333~~—	)
Net cash used by operations		(~~314~~532,~~761~~435	)		(~~419~~79,~~804~~651	)
Investing activities:
Purchase of equipment		—			(3,882	)
Patents development		(9,680	)		(8,569	)
Patents development		(35,187	)		(5,326	)
Net cash used by investing activities		(9,680	)		(8,569	)
Net cash used by investing activities		(35,187	)		(9,208	)
Financing activities:
Issuance of Common Shares		~~143~~665,000			~~275~~87,~~000~~500
PPP Loan		—			23,407
Paid down Finance Lease		(10,102	)		(9,729	)
Issuance of Convertible Notes		150,000			168,000
Payable to related party		(18,000	)		(350	)
Paid down Finance Lease		(26,722	)		(26,280	)
Net cash provided by financing activities		636,898			77,421
Payable to related party		49,279			(6,340	)
Net change in cash		94,783			(10,799	)
Net cash provided by financing activities		315,557			433,787
Cash balance at beginning of the period		8,244			8,244
Net change in cash		(34,391	)		4,775
Cash balance at end of the period	$	103,027		$	(2,555	)
Cash balance at beginning of the period		41,760			23,800
Cash balance at end of the period	$	7,369		$	28,575
Supplemental disclosures of cash flow information:
Interest paid during the period	$	1,~~435~~873		$	~~5,397~~830
Income taxes paid during the period		—			—

See the notes to the financial statements.

American CryoStem Corporation

Consolidated ~~Statements~~Statement of Changes in Shareholders’ Deficit

For the ~~Nine~~ ~~Months and the Three Months~~ Quarters Ended ~~June~~December 3031, 2021 and 2020

Unaudited

	Common		Par		Paid in			Accumulated			Total
	Preferred Stock				Common Stock
	Shares		Par Value		~~Capital~~Shares			~~Deficit~~Par Value			~~Deficit~~Paid inCapital			AccumulatedDeficit			TotalDeficit
Balance at September 30, 2019		49,387,918	$	49,389	$	13,931,500		$	(15,218,894	)	$	(1,238,005	)
Balance at September 30, 2020		—		—		59,570,665		$	59,572		$	15,917,408		$	(16,398,179	)	$	(421,199	)
Issuance of common shares		~~1,541,667~~—		~~1,542~~—		~~273~~412,~~458~~500			—412			~~275~~87,~~000~~088			—			87,500
Conversion of Note Payable		2,965,659		2,965		430,235			—			433,200
Shares issued for services provided		—		—		80,000			80			19,920			—			20,000
Interest Due		185,050		185		49,714			—			49,899
Net loss		—		—		—			—			—			(46,034	)		(46,034	)
Net loss		—		—		—			(649,544	)		(649,544	)
Balance at December 31, 2020		—		—		60,063,165		$	60,064		$	16,024,416		$	(16,444,213	)	$	(359,733	)
Balance at June 30, 2020		54,080,294	$	54,081	$	14,684,907		$	(15,868,438	)	$	(1,129,450	)
Balance at September 30, 2021		—		—		61,374,524		$	61,376		$	17,368,836		$	(19,277,765	)	$	(1,847,553	)
Balance at September 30, 2020		59,570,665	$	59,572	$	15,917,408		$	(16,398,179	)	$	(421,199	)
Issuance of common shares		—		—		2,050,000			2,050			662,950			—			665,000
Issuance of common shares		640,000		640		142,360			—			143,000
Shares issued for to pay interest		—		—		97,396			97			26,440			—			26,537
Common Stock for Services		164,000		164		40,836			—			41,000
Transfer of Common Stock to Preferred Stock		1,000,000	$	100		(20,000,000	)		(20,000	)		19,900						—
Common Stock for Prepaid Expenses		100,000		100		74,900			—			75,000
Stock Options Granted		—		—		—			—			105,522						105,522
Common Stock for Interest		109,519		109		44,237			—			44,346
Net loss		—		—		—			—			—			(380,755	)		(380,755	)
Stock Compensation Expense						296,109						296,109
Balance at December 31, 2021		1,000,000	$	100		43,521,920		$	43,523		$	18,183,648		$	(19,658,520	)	$	(1,431,249	)
Beneficial Conversion Feature		—		—		25,333			—			25,333
Net loss		—		—		—			(817,233	)		(817,233	)
Balance at June 30, 2021		60,584,184	$	60,585	$	16,541,183		$	(17,215,412	)	$	(613,644	)
Balance at March 31, 2020		50,262,918	$	50,264	$	14,105,625		$	(15,637,981	)	$	(1,482,092	)
Issuance of Common Shares		666,667		667		99,333			—			100,000
Conversion of Note Payable		2,965,659		2,965		430,235			—			433,200
Interest Due		185,050		185		49,714			—			49,899
Net loss		—		—		—			(230,457	)		(230,457	)
Balance at June 30, 2020		54,080,294	$	54,081	$	14,684,907		$	(15,868,438	)	$	(1,129,450	)
Balance at March 31, 2021		60,471,696	$	60,473	$	16,205,988		$	(16,748,942	)	$	(482,481	)
Common Stock for Interest Due		28,488		28		18,170			—			18,198
Common Stock for Services		84,000		84		20,916			—			21,000
Stock Compensation Expense						296,109						296,109
Net loss		—		—		—			(466,470	)		(466,470	)
Balance at June 30, 2021		60,584,184	$	60,585	$	16,541,183		$	(17,215,412	)	$	(613,644	)

See the notes to the financial statements.

American CryoStem Corporation

Notes to the Consolidated Financial Statements

~~June~~December 3031, 2021

Unaudited

NOTE 1. Organization of the Company and Significant Accounting Policies

American CryoStem Corporation (the “Company”) is a publicly held corporation formed on March 13, 2009 in the state of Nevada as R&A Productions Inc. (R&A).

In April 2011, R&A purchased substantially all the assets and liabilities of American CryoStem Corporation (ACS) a company formed in 1987, for 21 million shares of common stock. ACS was deemed to be the accounting acquirer. At the date of the purchase, the former operations of R&A were discontinued and the name of the Company was changed to American CryoStem Corporation ~~(ticker symbol: CRYO)~~.

~~CRYO~~The Company is ain ~~clinical~~the ~~stage~~business ~~biotechnology company~~of collecting adipose tissue, ~~pioneering~~processing it to separate the ~~development~~adult ~~and~~stem ~~delivering~~cells, ~~personalized~~preparing ~~manufactured~~such stem cells for long-term storage and developing autologous mesenchymal stem cell therapies. ~~through~~The ~~its~~process ~~patented,~~allows individuals to preserve their ~~“Regenerative~~stem ~~Medicine~~cells ~~Platform”~~for future personal use in cellular therapy. ~~CRYO~~The ~~operates~~adipose a,derived ~~FDA~~stem ~~registered~~cells ~~laboratory,~~are prepared and stored in ~~Monmouth~~their ~~Junction~~raw form without manipulation, ~~New~~bio-generation ~~Jersey~~or the addition of biomarkers or other materials, ~~USA~~making them suitable for use in cellular treatments and ~~has~~therapies ~~licensed~~offered ~~laboratory~~by ~~facilities~~existing inand ~~Hong~~planned ~~Kong,~~treatment ~~China~~centers worldwide. Individualized collection and ~~Thailand~~storage of adult stem cells provides personalized medicine solutions by making the patient’s own preserved stem cells available for future cellular therapies.

~~Through~~The Company has devoted a ~~single~~significant ~~adipose-tissue harvest,~~amount ~~the~~of ~~Company~~its ~~has~~time ~~the~~and ~~ability~~resources to ~~deliver~~develop ~~successive~~its ~~multiple~~technologies ~~cellular~~and ~~treatments~~intellectual property. These efforts have resulted in the development of ~~genetically~~cell ~~matched~~lines, ~~cells~~cell toculture ~~individuals.~~medium, other laboratory products and cellular therapies which the ~~CRYO’s~~Company IPbelieves ~~Portfolio~~are (4suitable USfor licensing and 2distribution ~~International~~by ~~Patents~~third ~~Granted~~parties. Additionally, 36the USCompany ~~and~~has ~~International~~initiated ~~Patents~~a ~~pending)~~licensing program ~~and~~to ~~scalable~~license ~~Adipose Tissue~~its ~~Regenerative~~technologies ~~Medicine~~to ~~Platform~~laboratories ~~supports~~currently aprocessing ~~growing~~other ~~pipeline~~types of biologic ~~therapies~~materials including cord blood and general blood banks. The Company closed its first licensing agreement in 2014 and intends to pursue additional licensing partners in the future.

~~CRYO is uniquely positioned~~The toaccompanying ~~develop~~consolidated ~~new~~financial ~~adult~~statements ~~stem~~include ~~cell~~the ~~therapies.~~accounts ~~CRYO~~of ~~has~~American ~~developed~~CryoStem aCorporation ~~validated robust~~ and ~~scalable,~~its ~~manufacturing~~wholly ~~processes~~owned ~~which produces~~subsidiaries. ~~high~~The ~~quality adult stem cells. CRYO~~Company’s ~~process~~subsidiaries ~~produces adult stem cells that~~ are ~~consistent~~APAC ~~with~~CryoStem ~~the~~Limited, ~~International~~a ~~Society for~~Hong ~~Cell~~Kong company and ~~Gene~~APAC ~~Therapy~~CryoStem (~~ISCT~~Shenzhen) ~~standards~~Ltd. ~~for~~which ~~homogeneity,~~were ~~plasticity,~~established to ~~self-renewal~~support ~~and~~its ~~tri-lineage~~licensing ~~differentiation.~~agreement ~~CRYO~~and ~~has successfully~~operations, ~~completed~~and ~~large~~collect ~~animal~~the ~~pre-clinical~~licensing ~~and~~fees ~~human~~in ~~pre-clinical~~Hong ~~safety~~Kong ~~studies~~and ofChina. ~~its~~Currently, ~~flagship~~Mr. ~~proprietary autologous~~Arnone ~~adult~~and ~~stem~~Mr. ~~cell~~Dudzinski ~~product~~serve ~~ATCell.~~as ~~CRYO~~management ~~plans~~and todirectors ~~promote~~of ~~clinical~~both ~~candidates~~companies. ~~targeting~~All significant ~~unmet~~intercompany ~~medical~~accounts ~~needs~~and transactions have been eliminated in ~~osteoarthritis, wound~~the ~~healing,~~consolidation. ~~post-concussion~~Management ~~syndrome,~~believes ~~Duchene~~all ~~Muscular~~amounts ~~Dystrophy~~have ~~and~~been ~~long~~adjusted ~~COVID~~properly.

~~CRYO,~~Accounting policies inrefer ~~collaboration~~to ~~with its~~specific ~~strategic~~accounting ~~partners~~principles and ~~leading~~the ~~academic~~methods ~~medical~~of ~~institutions,~~applying isthose ~~developing~~principles ato ~~clinical/non-clinical~~present ~~pipeline~~fairly the company’s financial position and results of ~~products~~operations ~~for~~in accordance with generally accepted accounting principles. The policies discussed ~~additional~~below ~~studies~~include ~~for~~those ~~use~~that inmanagement ~~wound~~has ~~healing~~determined ~~and~~to ~~orthopedic~~be ~~regenerative~~the ~~medicine~~most ~~treatments~~appropriate ~~and~~in ~~application~~preparing ofthe ~~its~~company’s ~~ATCell~~financial ~~product~~statements.

~~CRYO’s~~Use of ~~team~~Estimates ~~and~~- ~~advisors~~The preparation of the financial statements in conformity with United States generally accepted accounting ~~are~~principles ~~experienced~~(“GAAP”) uniformly applied requires management to make reasonable estimates and ~~accomplished~~assumptions inthat affect the ~~use~~reported amounts of ~~FDA~~the assets and EUliabilities ~~accelerated~~and ~~approval,~~disclosure ~~Regenerative~~of ~~Medicine~~contingent ~~Advanced~~assets ~~Therapy,~~and ~~Orphan~~liabilities and the reported amounts ~~Disease~~of revenues and ~~Expanded~~expenses ~~Use~~at ~~Authorization~~the ~~Regulatory~~date ~~Pathways~~of the financial statements and for the period they include. Actual results may differ from these estimates.

~~The~~Cash ~~accompanying~~- ~~consolidated~~For ~~financial statements include~~ the ~~accounts~~purpose of ~~American~~calculating ~~CryoStem~~changes ~~Corporation~~in ~~and~~cash ~~its~~flows, ~~wholly~~cash ~~owned~~includes ~~subsidiaries.~~all ~~The~~cash ~~Company’s~~balances ~~subsidiaries~~and ~~are~~highly ~~APAC~~liquid ~~CryoStem~~short-term ~~Limited,~~investments with aan ~~Hong~~original ~~Kong~~maturity ~~company~~of ~~and~~three ~~APAC~~months ~~CryoStem~~or ~~(Shenzhen) Ltd~~less. ~~which were established to support its licensing agreement and operations~~Occasionally, ~~and collect~~ the ~~licensing~~Company ~~fees~~maintains incash ~~Hong~~balances ~~Kong~~at ~~and~~financial ~~China. Currently Mr. Arnone~~institutions ~~and~~that ~~Mr.~~exceed ~~Dudzinski~~federally ~~serves~~insured ~~as management and directors of both companies~~limits. ~~All significant intercompany accounts and transactions have been eliminated in the consolidation. Management believes all amounts have been adjusted properly.~~

Accounting for ~~policies~~Investments ~~refer~~- ~~to specific~~The ~~accounting~~Company ~~principles~~accounts ~~and~~for investments based upon the ~~methods~~type and nature of ~~applying~~the ~~those~~investment ~~principles~~and the availability of current information to ~~present~~determine ~~fairly~~its value. Investments in marketable securities in which there is a trading market will be valued at market value on the ~~company~~nearest trading date relative to the Company’s financial ~~position~~reporting requirements. Investments ~~and~~which ~~results~~there ofis ~~operations~~no intrading ~~accordance~~market ~~with~~from ~~generally~~which ~~accepted~~to ~~accounting~~obtain ~~principles.~~recent ~~The~~pricing ~~policies~~and ~~discussed~~trading ~~below~~data ~~include~~for ~~those~~valuation purposes will be valued based ~~that~~upon management’s ~~has~~review ~~determined~~of toavailable befinancial information, disclosures related to the ~~most~~investment ~~appropriate~~and inrecent ~~preparing~~valuations related to the ~~company~~investment’s ~~financial~~fundraising ~~statements~~efforts.

~~The~~Research and ~~Consolidated~~Development ~~Financial~~- Research and development expenses include both external and internal expenses. External expenses primarily ~~Statement~~include ~~Disclosures~~costs of intellectual property development, clinical trial development, fees paid for ~~the~~third ~~quarter~~party ~~ended~~testing ~~June~~services, 30clinical supply and manufacturing expenses, ~~2021~~regulatory ~~are~~filing ~~condensed~~fees, consulting and ~~all~~professional ~~necessary~~fees ~~adjustments~~as ~~have~~well ~~been~~as ~~made.~~other ~~These~~general ~~Financial~~costs related ~~Statements~~to ~~should~~the beexecution ~~read~~of research and development activities. Internal expenses primarily include compensation of employees engaged in ~~conjunction~~research ~~with~~and ~~the~~development ~~Company’s~~activities. ~~Form~~Research ~~10K~~and ~~for~~development ~~the~~expenses ~~year~~are ~~ended~~expensed ~~September~~as ~~30,~~incurred. ~~2020~~Manufacturing costs are generally expensed as incurred.

Use of Estimates - The preparation of the financial statements in conformity with United States generally accepted accounting principles (“GAAP”) uniformly applied requires management to make reasonable estimates and assumptions that affect the reported amounts of the assets and liabilities and disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses at the date of the financial statements and for the period they include. Actual results may differ from these estimates.7

~~Cash~~American ~~- For the purpose~~CryoStem of calculating changes in cash flows, cash includes all cash balances and highly liquid short-term investments with an original maturity of three months or less. Occasionally, the Company maintains cash balances at financial institutions that exceed federally insured limits.Corporation

7Notes to the Consolidated Financial Statements

~~Accounting for~~December Investments - The Company accounts for investments based upon the type and nature of the investment and the availability of current information to determine its value. Investments in marketable securities in which there is a trading market will be valued at market value on the nearest trading date relative to the Company’s financial reporting requirements. Investments which there is no trading market from which to obtain recent pricing and trading data for valuation purposes will be valued based upon management’s review of available financial information31, ~~disclosures related to the investment and recent valuations~~ ~~related to the investment’s fundraising efforts.~~2021

Revenue Recognition - Effective October 1, 2018, we adopted ASC 606, Revenue from Contracts with Customers (“ASC 606”), using the modified retrospective transition method. We recognized the cumulative effect of applying the new revenue standard to all contracts with customers that were not completed as of October 1, 2018. The comparative information has not been restated and continues to be reported under the accounting standards in effect for the periods presented, since there is no material effect on the presentation of the financial positions or statements of operations. This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, certain collaboration arrangements and financial instruments. ASC 606 also impacts certain other areas, such as the accounting for costs to obtain or fulfill a contract. The standard also requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The adoption of ASC 606 did not have an impact on the amount of reported revenues. See Note 3 “Revenue Recognition” for additional information.Unaudited

~~Advertising - Advertising~~NOTE ~~Cost are reported as they are incurred~~1. ~~Advertising~~Organization ~~Costs~~of ~~were $582 and $222 for~~ the ~~nine~~Company ~~months ended~~ and ~~the~~Significant ~~three~~Accounting ~~months~~Policies ended June 30, 2021; and $0 for the nine months ended June 30, 2020 and $0 for the three months ended June 30, 2020, which is included in Sales and Marketing Expenses within the Consolidated Statements of Operations.(continued)

~~Bad~~Revenue Recognition - ~~Debt~~Effective ~~Expense~~October -1, ~~The~~2018, ~~Company provides~~we adopted ASC 606, ~~through~~Revenue ~~charges~~from toContracts ~~income~~with orCustomers ~~loss~~(“ASC 606”), ausing ~~charge~~the modified ~~for~~retrospective ~~bad~~transition ~~debt~~method. ~~expense,~~The ~~which~~comparative isinformation ~~based~~has ~~upon~~not ~~management’s~~been ~~evaluation~~restated and continues to be reported under ofthe ~~numerous~~accounting ~~factors~~standards in effect for the periods presented. ~~These~~This ~~factors~~standard ~~include~~applies ~~economic~~to ~~conditions~~all ~~prevailing~~contracts with customers, aexcept ~~predictive~~for contracts ~~analysis~~that ofare within the ~~outcome~~scope of ~~the~~other ~~current portfolio~~standards, bysuch ~~client~~as leases, insurance, certain collaboration arrangements and ~~prior~~financial instruments. ~~credit~~ASC ~~loss~~606 ~~experience~~also ofimpacts ~~each~~certain ~~client.~~other ~~The~~areas, ~~Company~~such ~~uses~~as the ~~information~~accounting ~~from~~for ~~this~~costs ~~analysis~~ to ~~develop an~~obtain ~~estimate~~or offulfill ~~bad~~a ~~debt~~contract. ~~reserve~~The ~~based~~standard also ~~upon~~requires disclosure of the nature, amount, oftiming, ~~accounts~~and ~~receivable~~uncertainty byof ~~client~~revenue atand ~~the~~cash ~~balance~~flows ~~sheet~~arising ~~date~~from contracts with customers. The ~~Allowance for~~adoption ~~Doubtful~~of ~~Accounts~~ASC ~~was~~606 ~~$338,504~~did atnot ~~June~~have ~~30,~~an ~~2021~~impact ~~and~~on ~~$337,515~~the atamount ~~September~~of ~~30,~~reported ~~2020~~revenues. See Note 123 “Revenue Recognition” for ~~further~~additional ~~explanation~~information.

~~Inventory~~ Advertising - ~~Inventory~~Advertising isCosts ~~valued at~~are ~~lower~~expensed ofas ~~cost~~they orare ~~market~~incurred. ~~using~~Advertising ~~the~~Costs ~~first~~were ~~in,~~$222 ~~first~~for ~~out~~the ~~method.~~three ~~Inventory~~months ~~consists~~ended ofDecember 31, ~~the~~2021 ~~disposables~~ and ~~materials~~$223 ~~used to create production kits,~~ for ~~processing~~the ofthree ~~adipose~~months ~~tissue~~ended ~~and~~December ~~cellular~~31, ~~samples~~2020, ~~the~~which ~~manufacture~~is ofin ~~Medias~~Sales ~~used~~and toMarketing ~~prepare~~Expenses within the ~~samples~~Consolidated ~~and~~Statements ~~cryoprotectant for the storage~~ of ~~the samples~~Operations.

~~Inventory~~Bad Debt ~~was~~Expense ~~composed~~- The Company provides, through charges to income or loss, a charge for bad debt expense, which is based upon management’s evaluation of ~~Raw~~numerous ~~Materials~~factors. These factors include economic conditions prevailing, a predictive analysis ~~and~~of ~~Finished~~the ~~Goods~~outcome of the current portfolio by client, ~~which~~and ~~was~~prior ~~valued~~credit loss experience of each client. The Company uses the information from this analysis to develop an estimate of bad debt reserve based upon the amount of accounts receivable by client at the balance sheet date. The Allowance for Doubtful Accounts was $25860,~~782~~933 at ~~June~~December 3031, 2021 and $20860,~~401~~933 at September 30, ~~2020~~2021. (See Note 3 for additional information)

~~Long Lived Assets~~ Inventory - ~~The~~Inventory ~~Company reviews~~is ~~for~~valued ~~the~~at ~~impairment~~lower of ~~long-lived~~cost ~~assets~~or ~~whenever~~market ~~events~~using orthe ~~changes~~first in, ~~circumstances~~first ~~indicate~~out ~~that~~method. ~~the~~Inventory ~~carrying~~consists ~~amount~~ of anthe ~~asset~~disposables and ~~may~~materials ~~not~~used beto ~~recoverable.~~create Anproduction ~~impairment~~kits, ~~loss~~for ~~would~~processing beof ~~recognized~~adipose ~~when~~tissue ~~estimated~~and ~~future~~cellular ~~cash~~samples, ~~flows~~the ~~expected~~manufacture toof ~~result~~Medias ~~from~~used ~~the~~to ~~use~~prepare of the ~~asset~~samples and ~~its~~cryoprotectant ~~eventual~~for ~~disposition~~the isstorage ~~less~~of ~~than~~the ~~its carrying amount~~samples.

~~Fixed Assets - Fixed~~Inventory ~~assets~~was ~~are~~composed ~~stated~~of atRaw ~~cost.~~Materials ~~Depreciation~~and ~~expense~~Finished isGoods, ~~computed~~which ~~using~~was ~~the~~valued ~~straight-line~~at ~~method~~$23,928 ~~over~~at ~~the~~December ~~estimated~~31, ~~useful~~2021 ~~life~~and ~~of the assets~~$17,934 ~~which~~at isSeptember ~~estimated as follows:~~30, 2021.

~~Schedule~~Long Lived Assets - The Company reviews for the impairment of ~~Fixed~~long-lived ~~Assets,~~assets ~~Useful~~whenever ~~Life~~events or changes in circumstances indicate that the carrying amount of ~~Assets~~an asset may not be recoverable. An impairment loss would be recognized when estimated future cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount.

Office Equipment	5 years
Lab Equipment & Furniture	7 years
Lab Software	5 years
Leasehold Improvements	15 years

Fixed Assets - Fixed assets are stated at cost. Depreciation expense is computed using the straight-line method over the estimated useful life of the assets, which is estimated as follows:

~~Income~~Schedule ~~taxes~~of -Fixed ~~The~~Assets, ~~Company accounts~~Useful ~~for~~Life income taxes in accordance with generally accepted accounting principles which require an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for differences between financial statement and income tax bases of assets and liabilities that will result in taxable income or deductible expenses in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets and liabilities to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period adjusted for the change during the period in deferred tax assets and liabilities.Assets

The Company follows the accounting requirements associated with uncertainty in income taxes using the provisions of Financial Accounting Standards Board (FASB) ASC 740, Income Taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more likely than not the positions will be sustained upon examination by the tax authorities. It also provides guidance for derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As of June 30, 2021 and September 30, 2020, the Company has no uncertain tax positions that qualify for either recognition or disclosure in the financial statements. All tax returns from fiscal years 2014 to 2019 are subject to IRS and State of New Jersey audit.


Office Equipment	5 years
Lab Equipment & Furniture	7 years
Lab Software	5 years
Leasehold Improvements	15 years

8Income taxes - The Company accounts for income taxes in accordance with generally accepted accounting principles which require an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for differences between financial statement and income tax bases of assets and liabilities that will result in taxable income or deductible expenses in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets and liabilities to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period adjusted for the change during the period in deferred tax assets and liabilities.

~~Recently~~The Company ~~Issued~~follows the accounting requirements associated with uncertainty in income taxes using the provisions of Financial Accounting ~~Pronouncements~~Standards Board (FASB) ASC 740, Income Taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more likely than not the positions will be sustained upon examination by the tax authorities. It also provides guidance for derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As of December 31, 2021 and September 30, 2021, the Company has no uncertain tax positions that qualify for either recognition or disclosure in the financial statements. All tax returns from fiscal years 2015 to 2020 are subject to IRS and State of New Jersey audit.

In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments-Credit Losses. The new guidance provides better representation about expected credit losses on financial instruments. This Update requires the use of a methodology that reflects expected losses and requires consideration of a broader range of reasonable and supportive information to inform credit loss estimates. This ASU is effective for reporting periods beginning after December 15, 2022, with early adoption permitted. The company is studying the impact of adopting the ASU in fiscal year 2024, and what effect it could have. The Company believes the accounting change would not have a material effect on the financial statements.8

~~In November~~American ~~2018, the FASB issued ASU~~CryoStem 2018-18, Clarifying the Interaction between Topic 808 and Topic 606. This new ASU applies to companies that have collaborative arrangements, or agreements that involve two parties that actively participate in a joint operating activity. We believe our contract with Baoxin falls under the collaborative arrangements guidance in (ASC 808). ASU 2018-18 is effective for public companies for years beginning after December 15, 2019. The Company has implemented ASU 2018-18 in Fiscal 2021.Corporation

~~Implementation of~~Notes ~~ASU 2018-18 has not affected prior or current revenue recognition, since according~~ to the ~~contract we bill License Fees for~~ ~~the~~Consolidated ~~use~~Financial ~~of our intellectual property and for any products shipped.~~Statements

~~NOTE~~December ~~2. Going Concern~~31, 2021

The accompanying consolidated financial statements have been presented in accordance with generally accepted accounting principles in the U.S., which assume the continuity of the Company as a going concern. However, the Company has incurred significant losses since its inception which raises substantial doubt about the Company’s ability to continue as a going concern. Management has made this assessment for the period one year from date of the issuance of this report. Management’s plans with regard to this matter are to continue to fund its operations through fundraising activities for the rest of fiscal 2021. The Company has recently executed a firm Letter of Intent (LOI) for a $10 million financing with EF Hutton.Unaudited

NOTE 3 1. ~~Revenue~~Organization of ~~Recognition~~the Company and Significant Accounting Policies (continued)

~~Under ASC 606, we recognize revenue when our customer obtains control of promised goods or services in an amount~~Recently ~~that~~Issued ~~reflects~~Accounting the consideration which we expect to receive in exchange for those goods or services. To determine revenue recognition for arrangements that we determine are within the scope of ASC 606, we perform the following five steps:Pronouncements

a.The ~~Identify~~FASB recently ~~the~~issued ~~contract~~ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, to reduce complexity in applying GAAP to certain financial instruments with acharacteristics ~~customer;~~of liabilities and equity.

b.The ~~Identify~~guidance in ASU 2020-06 simplifies the ~~performance~~accounting ~~obligations~~for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock. The guidance in ASC 470-20 applies to convertible instruments for which the embedded conversion features are not required to be bifurcated from the host contract; and accounted for as derivatives.

cIn addition, the amendments revise the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification. ~~Determine~~These amendments are expected to result in more freestanding financial instruments qualifying for equity classification (and, therefore, not accounted for as derivatives), as well as fewer embedded features requiring separate accounting from the ~~transaction~~host ~~price;~~contract.

d.The ~~Allocate~~amendments in ASU 2020-06 further revise the ~~transaction~~guidance ~~price~~in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the ~~performance~~if-converted ~~obligations~~method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in ~~the~~cash ~~contract;~~or ~~and~~shares.

e.The ~~Recognize~~amendments in ~~revenue~~ASU ~~when~~2020-06 ~~(or~~are ~~as)~~effective for our company for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company is currently assessing the ~~performance~~impact ~~obligations~~of ~~are~~these ~~satisfied~~amendments on its future financial reporting.

WeIn ~~only~~June ~~apply~~ 2016, the ~~five~~FASB ~~step model~~issued toASU ~~contracts~~No. ~~when~~2016-13 itFinancial isInstruments-Credit ~~probable~~Losses. ~~that~~The wenew ~~will~~guidance ~~collect~~provides ~~the~~better ~~consideration we are entitled to in exchange for the goods or~~representation ~~services~~about weexpected ~~transfer~~credit tolosses ~~the~~on ~~customer~~financial instruments. AtThis ~~contract~~Update ~~inception,~~requires if the ~~contract~~use ~~is determined to be within the scope~~ of ~~ASC~~a ~~606, we~~methodology ~~assess the goods or services promised within each contract, determine those~~ that ~~are~~reflects ~~performance~~expected ~~obligations,~~ losses and ~~assess~~requires ~~whether each~~consideration ~~promised~~of ~~good~~a orbroader ~~service~~range ~~is distinct. We then recognize as revenue the amount~~ of ~~the~~reasonable ~~transaction~~and ~~price~~supportive ~~that~~information ~~is allocated~~ to ~~the~~inform ~~respective~~credit ~~performance~~loss ~~obligation when (or as) the performance obligation is satisfied~~estimates. ~~Our~~This ~~major~~ASU ~~sources of revenue during~~is ~~the~~effective for reporting periods ~~were~~beginning 1.after ~~Tissue~~December ~~Collection~~15, ~~Processing~~2022, ~~and~~with ~~Storage~~early ~~revenue~~adoption ~~from various customers; 2~~permitted. ~~Annual~~The ~~Storage Fees~~company ~~for~~is ~~our~~studying ~~ATGRAFT~~the ~~and~~impact ~~ATCELL~~of ~~products,~~adopting ~~from~~the ~~customers~~ASU ~~who have stored~~ in ~~our~~fiscal ~~laboratory~~year ~~facility; 3. Licensing and other fees from Baoxin~~2024, ~~Cell Source, CryoViva, Pepro-Tech~~ and ~~Personal~~what ~~Cell~~effect ~~Sciences;~~it ~~and~~could 4have. ~~Products~~The ~~sales~~Company ~~revenues~~believes ~~from~~the ~~Baoxin and CryoViva.~~accounting ~~The~~change ~~adoption~~would ~~of ASC 606 did~~ not have ana ~~impact~~material effect on the ~~pattern~~financial ~~or timing of recognition of our Tissue Processing, Storage Fees or Product Sales Revenue, since:~~statements.

1NOTE 2. ~~Tissue~~ ~~Collection,~~Going ~~Processing & Storage Revenue is recognized on the date the process is completed and stored in our facility.~~Concern

2The accompanying consolidated financial statements have been presented in accordance with generally accepted accounting principles in the U. S., ~~Storage~~which ~~Fees~~assume the continuity of the Company as a going concern. However, the Company has incurred significant losses since its inception which raises substantial doubt about the Company’s ability to continue as a going concern. Management has made this assessment for the period one year from date of the issuance of this report. Management’s plans with regard to this matter are ~~charged~~to ~~annually~~continue to fund its operations through fundraising activities in fiscal 2022 for future operations and business expansion. The Company has executed a firm Letter of Intent (LOI) for a $10 million financing with EF Hutton in 2022.

NOTE 3. ~~Licensing~~ ~~and other Fees - This is based on the passage of time and~~Revenue ~~as the customer has access to the license. The Company reviewed and analyzed the contract with Baoxin. Management’s judgments are:~~Recognition

~~a. Baoxin~~Under ~~qualifies~~ASC as606, awe recognize revenue when our customer ~~since~~obtains ~~American~~control ~~CryoStem~~of ~~does~~promised ~~not~~goods ~~take~~or services in an amount that reflects the consideration which we expect to receive ~~significant~~in ~~risks~~exchange for those goods or ~~receive~~services. ~~significant~~To ~~gains~~determine ~~from~~revenue recognition for arrangements that we determine are within the ~~agreement.~~scope of ASC 606, we perform the following five steps:

ba. ~~The~~ ~~right~~Identify ~~to use~~ the ~~license~~contract(s) ~~does~~with ~~not~~a ~~have significant standalone functionality because consulting is required by American CryoStem in order for the~~ customer ~~to be able to use the license.~~;

9b. Identify the performance obligations in the contract;

c. ~~The~~ ~~Company~~Determine ~~has determined as of~~ the ~~date~~transaction of this report not to make an allowance upon recognition of the Baoxin revenue based upon review of Baoxin’s most recent audited financial statements, documentation provided by Baoxin concerning the completion of their new 100,000 sq ft facility during the pandemic and the ongoing uncertainties regarding the continuing effects of the COVID 19 pandemic in China.price;

4d. ~~The~~ ~~majority~~Allocate ofthe ~~our~~transaction ~~Product~~price ~~Sales Revenue continues~~ to ~~be recognized when~~ the ~~customer~~performance ~~takes~~obligations ~~control~~in of the ~~product.~~contract; and

Wee. ~~believe~~Recognize ~~our~~revenue ~~contract~~when ~~with Baoxin falls under the collaborative arrangements guidance in~~ (~~ASC~~or ~~808~~as) ~~from~~ the ~~FASB~~performance ~~issued~~obligations ~~ASU~~are ~~2018-18, Clarifying the Interaction between Topic 808 and Topic 606~~satisfied. Implementation of ASU 2018-18 has not affected prior or current revenue recognition, since according to the contract, we bill License Fees for the use of our intellectual property and for any products shipped.

~~Revenue and Allowances~~9

~~The~~American ~~following table provides~~CryoStem ~~information about Fees and Product Sales Revenue for the Nine Months and Three Months ended June 30, 2021 and 2020.~~Corporation

		9 months ended				3 months ended
		6/30/2021		6/30/2020		6/30/2021		6/30/2020
Licensing & Other Fees	Baoxin	$	375,000	$	375,000	$	125,000	$	125,000
	Cell Source		—		23,333		—		6,666
	Totals	$	375,000	$	398,333	$	125,000	$	131,666
Product Sales	Baoxin	$	—	$	11,680	$	—	$	5,840
	CryoViva		—		10,060		—		—
	Science Diagnostics		760		930		—		930
	Totals	$	760	$	22,670	$	—	$	6,770

Notes to the Consolidated Financial Statements

~~Performance~~December ~~Obligations~~31, 2021

At contract inception, we assess the goods and services promised in our contracts and identify the performance obligations for each promise to transfer to the customer goods or to provide the customer with a service that is distinct. To identify the performance obligations, we consider all of the goods and services promised in the contract regardless of whether they are specifically stated or are implied by customary business practices. We determined that the following distinct goods or services represent separate performance obligations:Unaudited

·NOTE 3. ~~ATGRAFT~~Revenue ~~and~~Recognition ~~ATCELL Customer Tissue Processing Fees~~(continued)

·We ~~ATGRAFT~~only apply the five step model to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services we transfer to the customer. At contract inception, if the contract is determined to be within the scope of ASC 606, we assess the goods or services promised within each contract, determine those that are performance obligations, and ~~ATCELL~~assess ~~Customer~~whether each ~~Storage~~promised ~~Fees~~good or service is distinct. We then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.

·Our major sources of revenue during the reporting periods were 1. Tissue Collection, Processing and Storage revenue from various customers; 2. Annual Storage Fees for our ATGRAFT and ATCELL products, from customers who have had stored in our laboratory facility, along with former Bio-Life and Cytori storage customers purchased by American CryoStem; 3. Licensing and other fees from Baoxin; and 4. Products sales revenues. The adoption of ASC 606 did not have an impact on the pattern or timing of recognition of our Tissue Processing, Storage Fees or Product Sales Revenue, since:

·1. ~~Supply of our~~ Tissue Collection, Processing ~~and~~& Storage ~~Products~~Revenue tois ~~Baoxin~~recognized on the date the process is completed and ~~CryoViva~~stored in our facility.

~~We principally sell our products to end users, who have agreements with us to utilize our processing and storage technology~~2. WeStorage ~~provide~~Fees ~~processing~~are ~~and~~charged ~~storage services to individual customers~~annually. We charge various fees for consulting services or licensing of our technologies; which includes processing and storage agreements, arrangements with biotechnology processing facilities for the provision of our services within a limited geographic area.

~~For~~3. ~~customers~~Licensing ~~that purchase our Tissue Collection, Processing~~ and ~~Storage~~other ~~Products~~Fees we- ~~transfer~~This ~~control~~is atbased on the ~~point~~passage inof time ~~when~~and as the ~~goods~~customer ~~are~~has ~~shipped~~access ~~from our~~to ~~facility,~~the ~~shipping~~license. ~~costs~~The ~~are~~Company ~~paid~~reviewed ~~by the customer~~ and ~~these~~analyzed ~~costs~~the ~~are~~contract ~~not~~with ~~accrued~~Baoxin. ~~when~~Management’s ~~the~~judgments ~~related revenue is recognized.~~are:

~~Variable~~a. ~~Consideration~~Baoxin qualifies as a customer since American CryoStem does not take significant risks or receive significant gains from the agreement.

~~Under~~b. ~~ASC~~The ~~606,~~right ~~we are required~~ to ~~make~~use ~~estimates of~~ the ~~net~~license ~~sales~~does ~~price,~~not ~~including~~have ~~estimates~~significant ofstandalone ~~variable~~functionality ~~consideration~~because ~~(such~~consulting asis ~~rebates~~required ~~and~~by ~~discounts)~~American ~~and~~CryoStem ~~recognize the~~in ~~estimated~~order ~~amount~~for ~~as revenue when we transfer control of~~ the ~~product~~customer ~~or provide the service~~ to ~~our customers. Variable Consideration must~~ be ~~determined~~able ~~using~~to ~~either~~use ~~an “expected value” or a “most likely amount” method. At~~ the current time the Company does not offer rebates or discounts on our provision of ATGRAFT and ATCELL customer processing and storage fees; Licensing and other Fees; and offer Tissue Collection, Processing and Storage products; therefore we have not made any provisions for variable consideration related to discounts or rebateslicense.

10c. The Company has determined as of the date of this report, due to Baoxin’s payment history during the COVID pandemic, to make an adjustment for recognition of the Baoxin revenue. The Company considered during its review Baoxin’s most recent audited financial statements, documentation provided by Baoxin concerning the completion of their new 100,000 sq. ft facility in 2021, the uncertainty of the timing for restarting their tissue processing operations in the new facility, and the ongoing uncertainties regarding the continuing effects of the COVID-19 pandemic in China. (See Notes 13 and 14 for additional information)

4. The majority of our Product ~~Returns~~Sales Revenue continues to be recognized when the customer takes control of the product.

WeRevenue ~~only~~and offer product returns in the event a delivered product is found to be defective for which we offer replacement only. The Company has not had any product returned based upon a defective product claim; however return experience may change over time.Allowances

~~NOTE~~The following table provides 4.information ~~Loss~~about ~~per~~Fees ~~Share~~Revenue for the quarters ended December 31, 2021 and 2020:

The Company applies ASC 260, “Earnings per Share” to calculate loss per share. In accordance with ASC 260, basic and fully diluted net loss per share has been computed based on the weighted average of common shares outstanding during the years. The dilutive effects of the convertible notes and the options outstanding are not included in the calculation of loss per share since their inclusion would be anti-dilutive.


	Quarters Ended December 31,
	2021		2020
Licensing & Other Fees
Baoxin	$	—	$	125,000
Cell Source		—		—
Totals	$	—	$	125,000

~~The~~Tissue ~~Company~~Processing ~~had 10,436,500~~ and ~~8,761,500 shares of Common Stock issuable upon exercise of all outstanding stock options for the nine months ended June 30,~~Storage ~~2021~~was ~~and~~not ~~2020,~~included ~~respectively;~~in ~~and 2,334,784 and 2,134,784 shares issuable on~~ the ~~conversion~~table ofsince ~~outstanding~~this ~~Convertible~~revenue ~~Notes~~was ~~for the~~provided ~~three~~by ~~months~~customers ~~ended~~who ~~June~~were ~~30,~~individuals ~~2021~~rather ~~and~~than ~~2020,~~corporate ~~respectively~~partners.

~~Net~~Performance ~~Loss per share for the following periods is computed below:~~Obligations

	9 months						3 months
	30-Jun-21			30-Jun-20			30-Jun-21			30-Jun-20
Net Loss	$	(817,233	)	$	(649,544	)	$	(466,470	)	$	(230,457	)
Basic & Fully Diluted Net Income (Loss) per Common Share:	$	(0.014	)	$	(0.013	)	$	(0.008	)	$	(0.004	)
Weighted Average of Common Shares Outstanding - Basic & fully diluted		60,141,838			50,578,058			60,496,428			51,967,950

~~NOTE~~· 5.ATGRAFT ~~Fixed~~and ~~Assets~~ATCELL Customer Tissue Processing Fees

~~The~~· ~~fixed~~ATGRAFT ~~assets~~and ~~accounts~~ATCELL ~~of the~~Customer ~~Company~~Storage ~~are comprised as follows:~~Fees

	June 30, 2021			September 30, 2020
Laboratory Equipment	$	362,103		$	257,905
Laboratory Leasehold Improvements		110,286			110,286
Laboratory Furniture		1,841			1,841
Office Equipment		27,869			27,869
Office Leasehold Improvements		2,650			2,650
Office Furniture		1,812			1,812
Accumulated Depreciation		(317,773	)		(275,772	)
Net Property and Equipment	$	188,788		$	126,591

Licensing and other Fees

~~Depreciation expense~~· ~~for~~Supply ~~the~~of ~~nine~~our ~~months~~Tissue ~~ended June 30~~Collection, ~~2021~~Processing and ~~2020~~Storage ~~were~~Products ~~$9,832~~to ~~and~~Baoxin ~~$9,552, respectively~~ and ~~for the three months ended June 30, 2021 and 2020 were $3,277 and $4,886, respectively.~~CryoViva

~~NOTE 6. Patents & Patent Filings~~ 10

~~The~~American ~~patent~~CryoStem and patents development are recorded at cost and are being amortized on a straight line basis over a period of seventeen years. The company capitalizes Legal and Administrative Fees incurred in the process of filing for its patents. The Company has only been amortizing the patents issued. Amortization Expense for the nine months ended June 30, 2021 and 2020 were $33,020 and $4,239, respectively and for the three months ended June 30, 2021 and 2020 were $3,493 and $1,407, respectivelyCorporation

~~Patents still~~Notes into the ~~application process and trademarks have not been amortized. The unamortized costs of patents in the application process~~ ~~along~~Consolidated ~~with~~Financial costs of trademarks are $190,746 as of June 30, 2021 and $297,731 as of September 30, 2020. Amortizable Patent Costs were $238,172 at June 30, 2021 and $96,000 at September 30, 2020. The following is the amortization expense for these patents for the next 5 years:Statements

~~Schedule~~December ~~of patent amortization~~31, 2021

For the twelve months ending June 30,
2022	$	14,010
2023	$	14,010
2024	$	14,010
2025	$	14,010
2026	$	14,010

Unaudited

~~The following~~NOTE is3. aRevenue ~~description~~Recognition ~~of the Company’s patent assets:~~(continued)

OnWe ~~August~~principally 2,sell ~~2011,~~our ~~the Company~~products ~~was~~to ~~awarded~~end ~~U.S.~~users, ~~Patent~~who ~~No.~~have USagreements ~~7,989,205~~with ~~B2,~~us ~~titled~~to ~~Cell~~utilize ~~Culture~~our ~~Media,~~processing ~~Kits,~~ and ~~Methods~~storage ~~of Use~~technology. ~~The~~We ~~Patent~~provide isprocessing ~~for~~and ~~cell culture~~storage ~~media~~services ~~kits~~to ~~for~~individual ~~the~~customers. ~~support~~We ofcharge ~~primary~~various ~~culture~~fees offor ~~normal~~consulting ~~non-hematopoietic~~services ~~cells~~or licensing of ~~mesodermal~~our ~~origin~~technologies; ~~suitable~~which ~~for both research~~includes ~~and~~processing ~~clinical applications. The Company filed~~ and ~~maintains~~storage ~~a continuation (U.S. Serial No. 13/194~~agreements,~~900)~~ ~~and~~arrangements ~~additional~~with ~~claims~~biotechnology ~~were granted~~processing onfacilities ~~November~~for 8,the ~~2016~~provision ~~under patent Number 9,487,755. The Company filed an additional continuation on November 7, 2016 as part~~ of our ~~overall~~services ~~patent~~within a ~~strategy~~limited ~~and~~geographic ~~to cover expanded modifications of the original patent grant, US Patent Application No~~area. ~~15/344,805.~~

11For the customers that purchase our Tissue Collection, Processing and Storage Products we transfer control at the point in time when the goods are shipped from our facility, shipping costs are paid by the customer and these costs are not accrued when the related revenue is recognized.

OnVariable July 3, 2018, the Company was awarded U. S. Patent No. US 10,014,079 B2 titled “Business Method for Collection, Cryogenic Storage and Distribution of a Biologic Sample Material originally filed as US Serial No 13/702,304 filed June 6, 2011 with a priority date of June 6, 2010. The patent covers the Company’s comprehensive business method for collecting, processing, cryogenic storage and distribution of a biologic sample material. The Company has filed a continuation of the patent to cover addition claims and will file additional Continuation in Part claims for improvements that it has developed since the original patent filing.Consideration

OnUnder ~~December 18,~~ASC ~~2018~~606, ~~the~~we ~~Company~~are ~~was~~required to ~~awarded~~make USestimates ~~Patent~~of ~~No.~~the USnet 10sales price,~~154,664~~ B2including ~~titled~~estimates ~~“Systems~~of variable consideration (such as rebates and ~~Methods~~discounts) ~~for~~and recognize the ~~Digestion~~estimated amount as revenue when we transfer control of ~~Adipose~~the product or provide the service to our customers. Variable Consideration ~~Tissue~~must ~~Samples~~be ~~Obtained~~determined ~~from~~using either an “expected value” or a ~~Client~~“most ~~for~~likely ~~Cryopreservation~~amount” Umethod.S. ~~Serial~~At ~~No.~~the ~~13/646,647~~current ~~filed~~time the ~~October~~Company 5,does ~~2012~~not ~~with~~offer arebates ~~priority date~~or discounts on our provision of ~~October~~ATGRAFT 6and ATCELL customer processing and storage fees; Licensing and other Fees; and offer Tissue Collection, ~~2011~~Processing and Storage products; therefore we have not made any provisions for variable consideration related to discounts or rebates.

~~The~~Product Company has filed the following additional patents to extend its intellectual property to encompass additional aspects of the Company’s platform processing technologies. To date the following additional patent filings have been made:Returns

AWe ~~business~~only offer product returns ~~method~~in ~~for~~the ~~Collection,~~event ~~Cryogenic~~a ~~Storage~~delivered ~~and~~product ~~Distribution~~is offound ato ~~Biologic~~be ~~Sample~~defective ~~Material~~for USwhich ~~Serial~~we Nooffer ~~13/702,304~~replacement ~~filed~~only. ~~June~~The 6,Company has not had any product ~~2011~~returned ~~with~~based upon a ~~priority~~defective ~~date~~product ofclaim ~~June~~however 6,return ~~2010~~experience may change over time.

~~Additionally,~~NOTE ~~this patent has been filed European Union Application No~~4. ~~EPI3800847.9~~Loss ~~and~~per ~~China Application No. 2013800391988.~~Share

~~Human~~The Company applies ASC 260, ~~Serum~~“Earnings ~~for~~per ~~Cell~~Share” ~~Culture~~to ~~Medium~~calculate ~~for~~loss ~~Clinical~~per ~~Growth~~share. ofIn ~~Human~~accordance ~~Adipose~~with ~~Stromal~~ASC ~~Cells~~260, ~~International~~basic ~~PCT~~and ~~filing~~fully ~~PCT/US/68350~~diluted ~~filed~~net loss ~~December~~per ~~31,~~share ~~2015~~has ~~with~~been acomputed ~~priority~~based ~~date~~on the weighted average of ~~December~~common ~~31,~~shares ~~2014~~outstanding during the years. ~~During~~The ~~2017~~dilutive effects of the ~~Company~~convertible ~~extended~~notes and the ~~filing~~options ~~into~~outstanding ~~China,~~are ~~the~~not ~~EU,~~included ~~India, Japan,~~in the ~~Kingdom~~calculation of ~~Saudi~~loss ~~Arabia,~~per ~~Canada~~share ~~and~~since ~~Mexico~~their inclusion would be anti-dilutive.

The Company had 11,536,500 and 7,986,500 shares of Common Stock issuable upon exercise of all outstanding stock options and iswarrants ~~currently~~for ~~developing~~the ~~additional~~quarters USended December 31, 2021 and ~~foreign~~2020, ~~patent~~respectively; ~~applications~~and, 2,334,784 and ~~expects~~2,134,784 toshares ~~file~~issuable aon ~~number~~the conversion of ~~additional~~outstanding ~~provisional~~Convertible ~~and PCT~~Notes ~~patent~~for ~~applications~~quarters inended ~~Fiscal~~December ~~2022~~31, 2021 and 2020, respectively.

~~NOTE~~Net Loss 7.per ~~Debt~~share for the following quarters is computed below:

The following table describes the Company’s debt outstanding as of June 30, 2021:

	31-Dec-21			31-Dec-20
Net Loss		(380,755	)		(46,034	)
Basic & Fully Diluted Net Income (Loss) per Common Share:	$	(0.007	)	$	(0.001	)
Weighted Average of Common Shares Outstanding - Basic & fully diluted		53,541,539			59,677,562

Debt	Carrying Value		Maturity	Rate
Bridge Notes	$	226,500	Demand	8.00%
Convertible Notes @ 75 cents	$	150,000	Fiscal 2022	5.00%
Convertible Notes @ 40 cents	$	100,000	Demand	8.00%
Convertible Notes @ 35 cents	$	83,500	Demand	8.00%
Convertible Notes @ 33 cents	$	150,000	Demand	5.00%
Convertible Notes @ 30 cents	$	45,000	Demand	8.00%
Convertible Notes @ 20 cents	$	155,000	Demand	8.00%
Convertible Notes @ 15 cents	$	40,000	Demand	8.00%
PPP Loan	$	23,407	Monthly Installments begin Sept 2021 to Feb 2023	1.00%

See the notes to the financial statements.

~~The~~NOTE ~~convertible notes are exercisable at any time and have exercise prices ranging from $0~~5.15 toFixed $0.75 with the amount of shares exercisable based on the face value of the convertible note. The holders of the bridge notes also have an option to purchase shares of the Company at $0.05 per share with the number of shares dependent upon the face value of the bridge note. As of the date of this report, 36,500 of these options remain outstanding.Assets

~~On April 6, 2018, the Company issued a debenture and received proceeds of $100,000.~~ The ~~debenture~~fixed ~~matured~~assets ~~March~~accounts ~~2020 and has an exercise price~~ of ~~$.40 with~~ ~~interest~~the atCompany ~~8%.~~are ~~The~~comprised ~~entire~~as ~~Carrying Value of $100,000 was due March 2020.~~follows:

In April 2019, the Company issued debentures and received proceeds of $150,000. The debentures mature in 2021 and have an exercise price of $.33 with interest at 5%. The entire Carrying Value of $150,000 is due in Fiscal 2021.

	12-31-2021			09-30-2021
Laboratory Equipment	$	257,905		$	257,905
Laboratory Leasehold Improvements		110,286			110,286
Laboratory Furniture		1,841			1,841
Office Equipment		27,869			27,869
Office Leasehold Improvements		2,650			2,650
Office Furniture		1,812			1,812
Accumulated Depreciation		(292,157	)		(288,880	)

Net Property and Equipment	$	110,206		$	113,483

~~As a result of the issue, the~~Depreciation ~~Company recognized interest~~ expense ~~of $61,364 as a beneficial conversion feature of the debenture which has been amortized over the life of the note. The Interest Expense due to the Beneficial Conversion Feature~~ for ~~the~~quarters ~~Nine Months~~ ended ~~June~~December 3031, 2021 and 2020 ~~was~~were $143,~~948~~277 and $243,~~573~~278, respectively~~; and $0 and $8,191 for the Three Months ended June 30, 2021 and 2020, respectively~~.

In March 2021, the Company issued debentures and received proceeds of $150,000. The debentures mature in December 2022 and have an exercise price of $.75 with interest at 5%. The entire Carrying Value of $150,000 is due in Fiscal 2022.11

AsAmerican ~~a result of the issue, the Company~~CryoStem recognized interest expense of $25,333 as a beneficial conversion feature of the debentures, which has been amortized over the lives of the notes. The Interest Expense due to the Beneficial Conversion Feature for the Nine Months and Three Months ended June 30, 2021 was $4,551 and $3,413, respectively.Corporation

12Notes to the Consolidated Financial Statements

~~Note~~December ~~8. Common Stock Issuances~~31, 2021

During the nine months ended June 30, 2020, the Company issued 1,541,667 shares and received proceeds of $275,000. The share price was determined by agreement with the purchasers, based upon the current market price less a discount for purchasing restricted securities.Unaudited

~~During~~NOTE ~~the~~6. ~~nine~~Patent ~~months ended~~& ~~June~~Patents ~~30, 2020, the Company issued 2,965,659 shares for the conversion of a note along with interest and fees totaling $433,200. The share price was determined based upon the original note agreement.~~Filings

~~During~~The ~~the~~patent ~~nine months ended~~and ~~June~~patents ~~30,~~development ~~2020,~~are ~~the~~recorded ~~Company~~at ~~issued~~cost ~~185,050~~and ~~shares~~are tobeing ~~pay~~amortized ~~interest~~on ~~due~~a tostraight ~~holders~~line ofbasis ~~the~~over ~~bridge~~a ~~notes~~period ~~and~~of ~~convertible~~seventeen ~~notes~~years. The ~~value~~company ofcapitalizes Legal and Administrative Fees incurred in the ~~interest~~process ~~paid~~of ~~was~~filing ~~$49,899~~for its patents. The ~~share~~Company ~~prices~~has ~~were~~only ~~determined~~been amortizing by the ~~aggregate~~patents ~~market~~issued. ~~price~~Amortization Expense for the ~~week~~quarters inended ~~which~~December ~~the shares~~31, 2021 and 2020 were ~~issued~~$3,531 and $1,423, respectively.

~~During~~Patents still in the ~~nine~~application ~~months~~process ~~ended June~~have ~~30,~~not ~~2021,~~been amortized. The unamortized costs of patents in the ~~Company~~application ~~issued~~process ~~640~~are $173,~~000~~874 ~~shares~~as of December 31, 2021 and ~~received~~$164,194 ~~proceeds~~as of ~~$143~~September 30,~~000~~ 2021. ~~The~~Amortizable ~~share~~Patent ~~price~~Costs ~~was~~were ~~determined~~$238,172 byat ~~agreement~~December 31, 2021 and $238,172 ~~with~~at ~~the~~September ~~purchasers~~30, ~~based~~2021. ~~upon~~The following is the ~~current~~anticipated ~~market~~amortization ~~price~~expense ~~less~~for athese ~~discount~~patents for ~~purchasing~~the ~~restricted~~next ~~securities.~~5 years:

~~During~~Schedule ~~the~~of ~~nine~~patent months ended June 30, 2021, the Company issued 164,000 shares and for services valued at $41,000. The share price was determined by agreement with the service provider, based upon the current market price less a discount for purchasing restricted securities.amortization

During the nine months ended June 30, 2021, the Company issued 100,000 shares for services to be provided valued at $75,000. The share price was determined by agreement with the service provider, based upon the current market price less a discount for purchasing restricted securities.

Twelve Months ending December 31,
2022	$	14,010
2023	$	14,010
2024	$	14,010
2025	$	14,010
2026	$	14,010

~~During~~The ~~the nine months ended~~following ~~June~~is ~~30,~~a ~~2021,~~description ~~the Company issued 109,519 shares to pay interest due holders~~ of ~~bridge notes and convertible notes. The amount of interest paid was $44,346. The share prices were determined by~~ the ~~aggregate~~Company’s ~~market~~patent ~~price for the week in which the interest became due.~~assets:

~~NOTE~~On August 2, 2011, the Company was awarded U.S. Patent No. US 7,989,205 B2, titled Cell Culture Media, Kits, and Methods of Use. The Patent is for cell culture media kits for the support of primary culture of normal non-hematopoietic cells of mesodermal origin suitable for both research and clinical applications. The Company filed and maintains a continuation (U.S. Serial No. 13/194,900) and additional claims were granted on November 8, 2016 under patent Number 9,487,755. ~~Option~~The ~~Issuances~~Company filed an additional continuation on November 7, 2016 as part of our overall patent strategy and to cover expanded modifications of the original patent grant, US Patent Application No. 15/344,805.

~~The~~On ~~Company~~July ~~applies~~3, ~~ASC 718~~2018, ~~“Accounting~~the ~~for~~Company ~~Stock-Based~~was ~~Compensation”~~awarded toU. ~~account~~S. ~~for~~Patent ~~its option issues~~No. ~~Accordingly~~US 10,014,079 ~~all~~B2 ~~options~~titled ~~granted~~“Business ~~are~~Method ~~recorded at~~for ~~fair~~Collection, ~~value~~Cryogenic ~~using~~Storage aand Distribution ~~generally~~of ~~accepted~~a ~~option~~Biologic ~~pricing~~Sample ~~model~~Material atoriginally ~~the~~filed ~~date~~as ofUS ~~the~~Serial ~~grant.~~No ~~The~~13/702,304 ~~Company~~filed ~~uses~~June ~~the~~6, ~~Black-Sholes~~2011 ~~option pricing~~with ~~model~~a topriority ~~measure the fair values~~ date of ~~its~~June ~~option~~6, ~~grants~~2010. ~~For~~The ~~purposes~~patent ofcovers ~~determining~~ the ~~option~~Company’s ~~values~~comprehensive atbusiness ~~issuance~~method for collecting, ~~the~~processing, cryogenic storage ~~fair~~and ~~value~~distribution of ~~each~~a ~~option~~biologic ~~granted~~sample ismaterial. ~~measured~~The atCompany ~~the~~has ~~date~~filed a continuation of the ~~grant~~patent byto ~~the~~cover ~~option~~addition ~~pricing~~claims ~~model~~and will ~~using~~file ~~the~~additional ~~parameters~~Continuation ofin ~~the volatility~~Part ofclaims ~~the~~for ~~Company’s~~improvements ~~share~~that ~~prices~~it ~~and~~has ~~the~~developed ~~risk~~since ~~free~~the ~~interest~~original ~~rate~~patent filing.

~~The~~On December ~~Company~~18, ~~normally~~2018, ~~issues options to its key personnel and consultants at~~ the ~~end~~Company ofwas ~~each~~awarded ~~fiscal~~US ~~year~~Patent ~~or as may be included in retainer or employment agreements~~No. ~~The~~US ~~Company prepares an option agreement for each option grant that includes the date of the grant~~10, ~~the vesting schedule~~154,664 ~~the~~B2 ~~expiration~~titled ~~date~~“Systems and ~~other~~Methods ~~terms of the granted options. The Company’s option plan calls~~ for the ~~immediate~~Digestion ~~expiration and cancellation~~ of ~~the granted options in the event of the termination of employment or the contract~~Adipose ~~associated~~Tissue ~~with~~Samples ~~the~~Obtained ~~original~~from ~~option~~a ~~grant~~Client ~~except~~ for ~~certain~~Cryopreservation” ~~circumstances~~U.S. ~~including~~Serial ~~retirement or disability~~No. ~~The~~13/646,647 ~~Company’s method~~filed ~~for~~October ~~exercising~~5, ~~options~~2012 ~~is to require delivery of the executed option agreement~~ with ~~the~~a ~~payment of the option price to~~priority ~~the~~date ~~Company by the option holder. Upon receipt and confirmation~~ of ~~payment~~October ~~of the exercise price by Company management~~6, the Company prepares board minutes and issues instructions to the Company’s transfer agent to issue the requisite number of shares underlying the option exercise The company issued 2,500,000 options at market value during the three months ended June 30, 20212011.

The Company ~~options~~has ~~vest,~~filed ~~50%~~the ~~upon~~following ~~issuance,~~additional ~~25%~~patents atto ~~the~~extend ~~first~~its ~~year~~intellectual ~~anniversary,~~property ~~25%~~to atencompass additional aspects of the ~~second~~Company’s platform ~~year~~processing ~~anniversary~~technologies. ~~and~~To ~~expire~~date inthe 5following ~~years.~~additional patent filings have been made:

~~The~~A ~~stock based~~business ~~compensation~~ method for ~~the~~Collection, ~~nine~~Cryogenic Storage and ~~three~~Distribution ~~months~~of ~~ended~~a ~~June~~Biologic ~~30,~~Sample ~~2021~~Material ~~was~~US ~~$296~~Serial No 13/702,~~109.~~304 ~~The~~filed ~~remaining~~June ~~balance~~6, to2011 bewith a ~~amortized~~priority isdate ~~$296~~of June 6,~~109~~ 2010.

~~The~~Additionally, ~~fair~~this ~~value~~patent ofhas ~~the~~been ~~options~~filed ~~issued~~European ~~during~~Union ~~the~~Application ~~three~~No. ~~months~~EPI3800847.9 ~~ended~~and ~~June~~China ~~30,~~Application ~~2021~~No. ~~was calculated using the following assumptions:~~2013800391988.

Dividend yield		0.00	%
Risk free interest rate		0.87	%
Volatility		177.16	%
Share Price	$	0.25
Exercise Price	$	0.25
Term		5 years

Human Serum for Cell Culture Medium for Clinical Growth of Human Adipose Stromal Cells, International PCT filing PCT/US/68350 filed December 31, 2015 with a priority date of December 31, 2014. During 2017 the Company extended the filing into China, the EU, India, Japan, the Kingdom of Saudi Arabia, Canada and Mexico.

13The Company is currently developing additional US and foreign patent applications and expects to file a number of additional provisional and PCT patent applications in Fiscal 2022.

~~The table below summarizes option activity and balances for nine months ended June 30, 2021 and 2020:~~12

	Amount		Exercise Price Range		Weighted Average Exercise Price		Weighted Average Remaining Term (Years)
Outstanding at September 30, 2019		8,761,500	$	0.05 - $0.40		0.26		1.85
Granted		—
Exercised		—
Expired		—
Forfeited		—
Outstanding at June 30, 2020		8,761,500	$	0.05 - $0.40		0.20		1.80
Outstanding at September 30, 2020		7,986,500	$	0.05 - $0.40		0.26		2.32
Granted		2,500,000	$	0.25		0.25
Exercised		—
Expired		—
Forfeited		—
Outstanding at June 30, 2021		10,486,500	$	0.05 - $0.40		0.20		1.22
Vested at June 30, 2021		7,986,500	$	0.05 - $0.40		0.26		1.08

American CryoStem Corporation

~~Option forfeitures~~Notes ~~are~~to ~~recorded as they occur. The intrinsic value of~~ the ~~outstanding stock options is $88,550 and the intrinsic value~~ ofConsolidated ~~the~~Financial ~~vested stock options is $132,300 at June 30, 2021.~~Statements

~~NOTE~~December ~~10. Fair Values of Financial Instruments~~31, 2021

Fair Value Measurements under generally accepted accounting principles clarifies the principle that fair value should be based on the assumptions market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. Under the standard, fair value measurements are separately disclosed by level within the fair value hierarchy as follows:Unaudited

~~Level~~NOTE ~~1 - Quoted prices in active markets for identical assets or liabilities~~7. Debt

~~Level~~The ~~2 - Observable inputs~~following ~~other~~table ~~than~~describes ~~Level~~the 1Company’s ~~prices~~debt ~~such~~outstanding as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of ~~the~~December ~~assets~~31, ~~or liabilities.~~2021:

Level 3 - Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities.

Debt	Carrying Value		Maturity	Rate
Bridge Notes	$	226,500	Demand		8.00	%
Convertible Notes @ 75 cents	$	150,000	Fiscal 2022		5.00	%
Convertible Notes @ 40 cents	$	100,000	Demand		8.00	%
Convertible Notes @ 35 cents	$	83,500	Demand		8.00	%
Convertible Notes @ 33 cents	$	150,000	Demand		8.00	%
Convertible Notes @ 30 cents	$	45,000	Demand		8.00	%
Convertible Notes @ 20 cents	$	155,000	Demand		8.00	%
Convertible Notes @ 15 cents	$	40,000	Demand		8.00	%
PPP Loan	$	23,407	Fiscal 2022		1.00	%
Note Payable to Related Party	$	130,433	Fiscal 2024		10.00	%
Finance Lease Liability	$	36,061	Fiscal 2021		13.25	%

ToThe ~~the~~convertible ~~extent~~notes ~~that~~are ~~valuation~~exercisable isat ~~based~~any ontime ~~models~~and orhave ~~inputs~~exercise ~~that~~prices ~~are~~ranging ~~less~~from ~~observable~~$0.15 orto ~~unobservable~~$0.48 inwith the ~~market,~~amount ~~the~~of ~~determination~~shares ofexercisable ~~fair~~based ~~value~~on ~~requires~~the face value ~~more~~of ~~judgment~~the convertible note. InThe ~~certain~~holders ~~cases,~~of the ~~inputs~~bridge ~~used~~notes toalso ~~measure~~have ~~fair~~an ~~value~~option ~~may~~to ~~fall~~purchase ~~into~~shares ~~different levels~~ of the ~~fair~~Company ~~value~~at ~~hierarchy~~$0. In05 ~~such~~per ~~cases,~~share with ~~for~~the ~~disclosure~~number ~~purposes,~~of ~~the~~shares ~~level~~dependent inupon the ~~fair~~face value ~~hierarchy~~of ~~within which~~ the ~~fair~~bridge ~~value~~note. ~~measurement~~As isof ~~disclosed and is determined based on~~ the ~~lowest~~date ~~level~~of ~~input~~this ~~that~~report, is36,500 ~~significant~~of tothese ~~the~~options remain ~~fair value measurement~~outstanding.

~~The Company~~In ~~valued~~March ~~Accounts Receivable~~2021, the ~~Bridge~~Company ~~Notes~~issued debentures and ~~Convertible~~received ~~Notes~~proceeds atof ~~cost~~$150,000. ~~Financial~~The ~~instruments’~~debentures ~~carrying~~mature ~~value~~in ~~approximates~~December 2022 and have an exercise price ~~fair~~of ~~value~~$0.75 ~~Stock~~with ~~Options~~interest ~~are~~at ~~valued~~5%. ~~using~~The ~~level~~entire 3Carrying Value of ~~the~~$150,000 ~~fair~~is ~~value~~due ~~hierarchy~~in Fiscal 2023.

~~Note~~As 11a result of the issue, the Company recognized interest expense of $25,333 as a beneficial conversion feature of the debentures, which has been amortized over the lives of the notes. ~~Leases~~The Interest Expense due to the Beneficial Conversion Feature for the three months ended September 30, 2021 was $3,143.

~~The~~NOTE ~~Company determines whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification criteria of finance or operating lease~~8. ~~When~~Common ~~available,~~Stock the Company uses the rate implicit in the lease to discount lease payments to present value; however, one of the Company’s leases does not provide a readily determinable implicit rate. Therefore, the Company must discount lease payments based on an estimate of its incremental borrowing rate which is based on the interest rate of similar debt outstanding. Effective October 1, 2019, the Company adopted the provision of ASC 842 Leases.Transactions

14During the quarter ended December 31, 2020, the Company issued 412,500 shares and received proceeds of $87,500. The share price was determined by agreement with the purchasers, based upon the current market price less a discount for purchasing restricted securities.

~~The~~During ~~Company leases~~the ~~its~~quarter ~~office~~ended ~~facility~~December 31, ~~in Eatontown~~2020, ~~New~~the ~~Jersey,~~Company ~~from~~issued ~~Eaton Holdings LLC. The lease expired on April 30~~80,000 ~~2021~~shares and ~~the Company can exercise a renewal option~~ for anservices ~~additional~~valued ~~three years. The company has not exercised its option to renew for 36 months~~ at $220,~~650 per month~~000. The ~~company~~share isprice ~~renting~~was ~~month~~determined toby ~~month~~agreement atwith the ~~$2,650~~service ~~per month~~provider, ~~while~~based ~~management~~upon ~~evaluates whether it will renew~~ the ~~lease.~~current ~~Since~~market ~~the~~price ~~lease obligation is~~ less ~~than twelve months, the Company does not report~~ a ~~lease~~discount ~~related asset or liability~~ for ~~this~~restricted ~~lease~~securities. ~~The lease expense for the nine months ended June 30, 2021 and 2020 was $23,850 and $23,850, respectively and for the three months ended June 30, 2021 and 2020 was $7,950 and $7,950, respectively.~~

~~The~~During ~~Company~~the ~~leases~~quarter ~~its~~ended ~~laboratory~~December ~~facility~~31, ~~in Monmouth Junction~~2021, ~~New~~the ~~Jersey, from Princeton Corporate Plaza LLC. The~~ Company ~~renewed~~issued ~~its lease on April 1~~2,050,000 ~~2021 for~~shares anand ~~additional~~received 12proceeds ~~months~~of ~~and pays~~ $2665,~~763 per month~~000. ~~Since~~The ~~the~~share ~~lease~~price ~~obligation~~was isdetermined ~~less~~by ~~than~~agreement ~~twelve months, the Company does~~with ~~not report a lease related asset or liability for this lease. Rent paid for~~ the ~~laboratory~~purchasers, ~~facility~~based ~~for~~upon the ~~nine~~current ~~months~~market ~~ended June~~price ~~30,~~less ~~2021~~a ~~and~~discount ~~2020 was $22,623 and $21,501, respectively; and~~ for ~~the~~purchasing ~~three~~restricted ~~months ended June 30, 2021 and 2020 was $8,289 and $7,167, respectively~~securities.

~~NOTE~~During 12the quarter ended December 31, 2021, the Company issued 97,396 shares to pay interest due to holders of the bridge notes and convertible notes. The ~~Concentration~~value of the interest paid was $26,537. The share prices were determined by the aggregate market price for the week in which ~~Credit~~the shares were issued.

The Company ~~received 98% of its revenues~~ ~~for~~exchanged ~~the nine months ended June 30~~1, ~~2021 from one client~~000,000 ~~Baoxin.~~newly ~~The~~created ~~Company~~Series ~~received~~A ~~97%~~Voting ofConvertible ~~its~~Preferred ~~revenues~~Shares for ~~the nine months ended June 30~~20, ~~2020 from three clients~~000, ~~Baoxin, Cell Source and CryoViva. The Company also had accounts receivable from Baoxin of $1,200,~~000 atcommon ~~June~~shares ~~30,~~held ~~2021~~by ~~and~~ACS ~~$575~~Global,~~000 at June 30, 2020~~ Inc. ~~For~~(See ~~the~~Note ~~Baoxin~~14 ~~receivable, the Company has recorded an allowance~~ for ~~doubtful~~more ~~accounts of $325,000~~details).

~~NOTE~~ 13~~. Investments~~

~~During the~~American ~~first quarter of 2018, the Company invested $300,000 in Baoxin Ltd., a Chinese company that is involved in tissue storage~~CryoStem and processing in Baoxin, China. Baoxin is not a publically traded corporation and the investment is carried at cost at June 30, 2021 and September 30, 2020. The Company annually reviews its investments for impairment. After reviewing investment transactions of Baoxin, the Company has determined that no impairment of its investment is necessary for the nine months ended June 30, 2021.Corporation

~~Baoxin~~Notes will develop, own and operate multiple laboratory/treatment/training facilities in China using American CryoStem’s intellectual property. American CryoStem has received an upfront fee of $300,000 USD and a 5 year minimum annual guarantee of $500,000 USD per year from Baoxin. Additionally, as part of the transaction American CryoStem has invested $300,000 into Baoxin to obtain a 5% minority equity in Baoxin (China) and an option to acquire up to a 20% equity ownership interest in its Regenerative Medicine Center in Hong Kong (HK). The short term goals are to set up two additional GMP grade adipose tissue processing and storage facilities in Beijing and Shanghai to cover the ~~need of the whole China region, and a proper education facility in China to promote the use of ATGRAFT~~ asConsolidated aFinancial ~~more natural dermal filler over artificial fillers.~~Statements

~~NOTE~~December ~~14. Related Party Transactions~~31, 2021

On October 1, 2020 the Company executed a note with ACS Global for a principal amount of $99,125 representing the outstanding balance due to ACS Global. Inc. The Note matures on October 1, 2023 and carries an interest rate of 10% per annum which may be paid in cash or stock. The note is due and payable in full upon maturity. On March 1, 2021 the note was increased by $49,000 for advances to the Company. The note may be prepaid at any time by the Company. The principal balance of the note at June 30, 2021 is $147,775.Unaudited

~~The~~NOTE ~~Company was indebted to a company that is majority owned by the Company’s two officers in the amount of $629 at June 30, 2021 and $99,125 at September 30, 2020~~9. ~~The~~Option ~~advances were unsecured, and carry no interest rate and were collectible at the discretion of the company’s two officers/directors.~~Issuances

~~NOTE~~The 15Company applies ASC 718, “Accounting for Stock-Based Compensation” to account for its option issues. ~~Subsequent~~Accordingly, ~~Events~~all options granted are recorded at fair value using a generally accepted option pricing model at the date of the grant. The Company uses the Black-Sholes option pricing model to measure the fair values of its option grants. For purposes of determining the option values at issuance, the fair value of each option granted is measured at the date of the grant by the option pricing model using the parameters of the volatility of the Company’s share prices and the risk free interest rate.

The ~~Company~~ ~~has~~Company ~~made~~normally aissues ~~review~~options to its key personnel and consultants at the end of ~~material~~each ~~subsequent~~fiscal ~~events~~year ~~from~~or ~~June~~as 30may be included in retainer or employment agreements. The Company prepares an option agreement for each option grant that includes the date of the grant, the ~~2021~~vesting ~~through~~schedule, the expiration date and other terms of ~~issuance~~the granted options. The Company’s option plan calls for the immediate expiration and cancellation of ~~this~~the ~~report~~granted options in the event of the termination of employment or the contract associated with the original option grant except for certain circumstances including retirement or disability. The Company’s method for exercising options is to require delivery of the executed option agreement with the payment of the option price to the Company by the option holder. Upon receipt and ~~reports~~confirmation of payment of the exercise price by Company management, the Company ~~following~~prepares ~~subsequent~~board ~~event~~minutes and issues instructions to the Company’s transfer agent to issue the requisite number of shares underlying the option exercise. The company did not issue stock options for the quarter ended December 31, 2021 or the quarter ended December 31, 2020.

~~The Company~~Schedule ~~has recently executed a firm Letter~~ of ~~Intent~~Stock ~~(LOI)~~Option ~~for a $10 million financing with EF Hutton.~~Outstanding

	Amount		Exercise Price Range		Weighted Average Exercise Price		Weighted Average Remaining Term (Years)
Outstanding at September 30, 2020		7,936,500	$	0.05 - $0.40		0.26		2.33

Granted		—	$	0.22 - $0.25		0.25
Exercised		—
Expired		—	$	0.20
Forfeited		—
Outstanding at December 31, 2020		7,936,500	$	0.05 - $0.40		0.26		2.08

Outstanding at September 30, 2021		11,536,500	$	0.05 - $0.40		—		3.73

Granted		—	$	0.22 - $0.25		0.25
Exercised		—
Expired		—	$	0.20
Forfeited		—
Outstanding at December 31, 2021		11,536,500	$	0.05 - $0.40		0.26		3.48
Vested at December 31, 2021		7,711,500	$	0.05 - $0.40		0.28		2.99

~~ITEM~~Option 2Forfeitures are recorded as they occur. ~~MANAGEMENT’S~~The ~~DISCUSSION~~intrinsic ~~AND~~value ~~ANALYSIS~~of OFthe ~~FINANCIAL~~outstanding ~~CONDITION~~stock ~~AND~~options ~~PLAN~~is OF$5,035,225 ~~OPERATIONS~~and the intrinsic value of the outstanding vested stock options is $3,232,225 at December 31, 2021.

~~Forward-looking Statements~~14

~~We and~~American ~~our representatives may from time to time make written or oral statements that are “forward-looking,”~~CryoStem including statements contained in this quarterly report and other filings with the Securities and Exchange Commission (the “SEC”), reports to our stockholders and news releases. All statements that express expectations, estimates, forecasts or projections are forward-looking statements. In addition, other written or oral statements which constitute forward-looking statements may be made by us or on our behalf. Words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “project,” “forecast,” “may,” “should,” variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in or suggested by such forward-looking statements. We undertake no obligation to update or revise any of the forward-looking statements after the date of this quarterly report to conform forward-looking statements to actual results. Important factors on which such statements are based on assumptions concerning uncertainties, including but not limited to, uncertainties associated with the following:Corporation

·Notes ~~Inadequate capital and barriers~~ to ~~raising~~ the Consolidated ~~additional~~Financial capital or to obtaining the financing needed to implement our business plans; · Our failure to earn revenues or profits; · Inadequate capital to continue business; · Volatility or decline of our stock price; · Potential fluctuation in quarterly results; · Rapid and significant changes in markets; · Litigation with or legal claims and allegations by outside parties; and · Insufficient revenues to cover operating costs.Statements

~~The following~~December discussion should be read in conjunction with the financial statements and the notes thereto which are included in this quarterly report. This discussion contains forward-looking statements that involve risks31, ~~uncertainties and assumptions. Our actual~~ ~~results may differ substantially from those anticipated in any forward-looking statements included in this discussion as a result of various factors.~~2021

16Unaudited

~~Background~~NOTE 10. Fair Values of Financial Instruments

~~American CryoStem~~Fair ~~Corporation~~Value ~~was~~Measurements ~~incorporated~~under generally inaccepted ~~the~~accounting ~~state~~principles ofclarifies ~~Nevada~~the onprinciple ~~March~~that ~~13,~~fair ~~2009.~~value Onshould ~~April~~be ~~20,~~based ~~2011,~~on wethe ~~acquired,~~assumptions ~~through~~market ~~our wholly~~participants ~~owned~~would ~~subsidiary~~use ~~American~~when ~~CryoStem~~pricing ~~Acquisition~~an ~~Corporation,~~asset ~~substantially~~or ~~all~~liability ofand ~~the~~establishes ~~assets~~a ~~from,~~fair ~~and~~value ~~assumed~~hierarchy ~~substantially~~that ~~all of~~prioritizes the ~~liabilities~~information ~~of,~~used ~~ACS~~to ~~Global,~~develop those ~~Inc~~assumptions. ~~(“ACS”)~~Under inthe ~~exchange~~standard, ~~for~~fair ~~our~~value ~~issuance~~measurements ofare ~~21,000,000~~separately ~~shares~~disclosed ~~of Common~~by ~~Stock~~level towithin ~~ACS (~~the ~~“Asset~~fair ~~Purchase”).~~value ~~We filed a Current Report on Form 8-K with the Securities~~hierarchy ~~and~~as ~~Exchange Commission (SEC) on April 27, 2011 disclosing the Asset Purchase and certain related matters.~~follows:

~~Overview~~Level 1 - Quoted prices in active markets for identical assets or liabilities.

~~American CryoStem~~Level ~~Corporation~~2 is- aObservable ~~biotechnology~~inputs other ~~pioneer~~than inLevel ~~the~~1 ~~field~~prices ofsuch ~~Regenerative~~as ~~and~~quoted ~~Personalized~~prices ~~Medicine~~for ~~and~~similar ~~operates~~assets aor ~~state-of-the-art, FDA-registered,~~liabilities; ~~laboratory~~quoted ~~dedicated~~prices toin ~~standardized~~markets ~~processing,~~with ~~bio-banking and development of cellular tools and cell therapy~~insufficient ~~treatment~~volume ~~applications,~~or ~~using~~infrequent ~~autologous~~transactions ~~adipose~~ (~~fat)~~less ~~tissue~~active ~~and~~markets); ~~adipose~~or model-derived ~~stem~~valuations ~~cells~~in ~~(“ADSCs”). The~~which ~~Company~~all ~~has~~significant ~~developed,~~inputs ~~patented,~~are ~~and fully validated its core platform for the collection, processing, and storage of adipose~~observable ~~tissue~~or ~~(Atgraft)~~can ~~and~~be ~~adipose~~ derived ~~stem~~principally ~~cell~~from ~~(ATCell)~~or ~~and~~corroborated isby ~~currently~~observable ~~focusing~~market itdata ~~efforts~~for onsubstantially ~~obtaining~~the ~~FDA~~full ~~marketing~~term ~~clearance for~~of the ~~use~~assets ~~of its ATCell product in clinical regenerative therapies~~or liabilities.

~~Due to~~Level ~~the~~3 ~~effects~~- ofUnobservable ~~the Corona pandemic, we have focused our efforts~~ inputs to advance clinical studies for our autologous therapeutic cellular product, ATCell (autologous adipose derived mesenchymal stem cells), patented technologies and business methods. Our focus on advancing ATCELL into clinical study has resulted in the ~~Company’s~~valuation ~~approved~~methodology ~~Investigational~~that ~~New~~are ~~Drug~~significant ~~Application (IND)~~to ~~with~~ the USmeasurement Food and Drug Administration (FDA). The IND Phase I clinical study filing titled “ATCell™ Expanded Autologous Adipose Derived Mesenchymal Stem Cells deployed via Intravenous Infusion for the Treatment of ~~Post-~~fair ~~Concussion~~value ~~Syndrome (PCS) in Retired Athletes and Military Personnel” FDA File number 19089 was approved on September 17, 2020. This human study~~ of ~~autologous~~assets ~~adipose~~or ~~derived stem cells (ATCell) for the treatment of Post Concussion Syndrome is underway, to date we have recruited 18 of the 20 participants~~liabilities. ~~We expect to begin delivering therapies during the fourth quarter of 2021.~~

~~Significant~~To the extent that valuation tois ~~this~~based ~~FDA~~on ~~approval~~models ~~was~~or inputs that are less observable or unobservable in the ~~review~~market, the determination of ~~our~~fair ~~Chemistry~~value ~~Manufacturing~~requires more ~~and~~judgment. ~~Control~~In ~~(CMC)~~certain ~~modules~~cases, ofthe ~~our~~inputs ~~IND~~used ~~filing~~to ~~(our~~measure ~~ATCell~~fair ~~manufacturing platform)~~value ~~and~~may ~~acceptance~~fall into different levels of the ~~platform~~fair tovalue ~~manufacture~~hierarchy. In such cases, for disclosure purposes, the ~~clinical~~level ~~trial~~in ~~samples~~the ~~for~~fair IVvalue ~~infusion~~hierarchy ~~delivery~~within which the fair value measurement is disclosed and is determined based on the lowest level input that is significant to the ~~trial~~fair ~~participants~~value measurement.

The Company ~~has~~valued ~~refined~~Accounts ~~its~~Receivable, ~~IND~~Bridge ~~strategy~~Notes ~~to advance its application approval process~~ and ~~development~~Convertible ~~efforts~~Notes toat ~~focus on low-risk treatments in the short term~~cost. ~~The~~Financial Company will leverage its validated ATCell manufacturing platform (CMC) to produce cellular samples for direct injection into joints for the treatment of osteoarthritis and for topical use in the treatment of non-healing wounds such as diabetic ulcers and bed sores. The Company believes that based upon FDAinstruments’s ~~approval~~carrying ~~history~~value ~~for these types~~approximates offair hCTP therapies and reliance on the CMC section of our currently approved IND for the manufacture of the ATCell product that we can accelerate the approval timeline of ATCell as a treatment option for low-risk targetsvalue. ~~The~~Stock ~~Company~~Options isare ~~currently~~valued ~~developing study~~using ~~protocols~~level ~~with~~3 ~~clinical partners experienced in the treatment~~ of ~~these conditions and expects to complete~~ the ~~protocols for~~fair ~~filing~~value ~~with FDA in Fiscal 2022~~hierarchy.

~~The Company’s~~NOTE long-term goals include completion of its approved Post-Concussion Syndrome study and, further development of ATCell as a treatment regimen for incurable and untreatable systemic diseases such as Duchene Muscular Dystrophy, and a currently planned study treatment of the post infection symptoms associated with COVID-19 or Long COVID11. The Company is currently working with clinical partners to complete development of the study protocols and expects to file these additional IND applications in Fiscal 2022. The Company believes that its long term focus on systemic diseases with significant untreated neurologic conditions will provide future opportunities for clinical studies of ATCell for Alzheimer’s Disease, Parkinson’s Disease, Amyotrophic Lateral Sclerosis (ALS or Lou Gehrig’s Disease) and Rheumatoid Arthritis among others.Leases

The Company ~~believes~~determines ~~the~~whether ~~reproducibility~~a ofcontract ~~scientific~~is ~~studies~~or iscontains a ~~substantial~~lease ~~issue~~at ininception ~~life~~of ~~science~~the ~~research~~contract ~~from~~and ~~drug~~whether ~~discovery~~that ~~and~~lease ~~development~~meets the classification ~~through~~criteria ~~clinical~~of ~~trials~~finance asor ~~researchers~~operating ~~throughout~~lease. When available, the ~~world~~Company ~~continue~~uses tothe ~~use~~rate ~~different~~implicit ~~materials~~in ~~and~~the ~~protocols~~lease ~~for~~to ~~processes~~discount ~~associated~~lease payments ~~with~~to ~~sample~~present ~~preparation~~value; however, ~~cryopreservation~~one ~~and~~of ~~cold~~the ~~chain~~Company’s ~~management.~~leases Wedoes ~~believe~~not ~~our~~provide ~~validated~~a ~~and~~readily ~~standardized~~determinable ~~handling,~~implicit ~~processing~~rate. Therefore, ~~storage,~~the ~~and~~Company ~~transportation~~must ~~protocols~~discount ~~(CMC~~lease ~~platform)~~payments ~~has~~based ~~substantially~~on ~~improved~~an ~~the~~estimate ~~quality and reproducibility~~ of ~~our~~its ~~preclinical data~~incremental ~~already~~borrowing ~~submitted~~rate towhich ~~the~~is USbased ~~FDA~~on ~~to support and accelerate~~ the ~~transition~~interest rate of ~~ATCell~~similar ~~therapeutic~~debt ~~uses~~outstanding. ~~from~~Effective ~~pre-clinical~~October ~~product and~~1, ~~protocol~~2019, ~~development~~the toCompany ~~clinical~~adopted ~~study~~the ~~applications~~provision toof ~~regulatory~~ASC ~~approval~~842 ~~(BLA) and market launch~~Leases.

~~Simultaneously~~Finance with the development and validation of its platform technologies for the collection processing and storage of tissue and cellular samples, the Company has built a strong, strategic portfolio of intellectual property, patent applications, and proprietary operating processes that form its core standardized cellular platform which we believe supports and promotes a growing pipeline of biologic products and processes, services, and international licensing opportunities. Our FDA registered laboratory for human tissue processing, cryo-storage and cell culture and differentiation media development is located in Monmouth Junction, New Jersey. Lease

17The Company leases Equipment at its laboratory from NFS Leasing, Inc. Lease payments are $2,993.62 per month for eighteen (18) months. The final lease payment is scheduled for January 1, 2023. When the final payment is made, the Company will own the equipment. The table below presents the lease related asset and liability recorded on the Company’s consolidated balance sheets as of December 31, 2021:

~~The~~Schedule Company has successfully negotiated a Cooperative Research and Development Agreement (CRADA) with Walter Reed National Military Medical Center (WRNMMC), our first collaboration with a government entity. The Company is developing additional studies necessary for approval of ~~ATCell~~Finance ~~for~~Lease ~~Long~~related ~~Covid,~~Assets ~~wound healing, Duchene Muscular Dystrophy,~~ and ~~orthopedic uses. See Section Product Development below for additional information concerning these ongoing efforts.~~Liability

The Company also markets a proprietary, patent pending processing platform for the collection, preparation, and cryo-preservation of adipose tissue without manipulation, bio-generation, animal-derived products or other chemical materials. The platform is used by plastic and cosmetic surgeons for the storage of adipose tissue for future tissue transfer procedures and is compliant with Section 361 of the US Food, Drug and Cosmetic Act and Title 21 part 1271 of the US Code of Federal Regulations for use as a homologous filler. Management believes this core process makes each adipose tissue sample suitable for use in cosmetic grafting procedures or for further processing to adult stem cells for other types of stem cell therapies.

	Classification on Balance Sheet	December 31, 2021
Assets
Finance Lease Asset	Finance lease right of use asset	$	107,815
Total Finance lease assets		$	107,815
Liabilities
Current Liabilities
Finance lease liability	Current finance lease liability	$	33,100
Noncurrent liabilities
Finance lease liability	Long-Term finance lease liability		2,961
Total operating lease liability		$	36,061

~~Products and~~Schedule ~~Services~~of Finance Lease Obligation

ATCELL™ Adipose Derived Stem Cells (ADSCs) Processed and characterized adipose derived regenerative cells (ADRCs), mesenchymal stem cells (MSCs) are cultured utilizing the Company’s proprietary Standard Operating Procedures (SOPs), ACSelerate™ patented cell culture and differentiation media and processing methodology. Cell lines are custom created and stored for patients that can be delivered “On Demand” for their personal use in future Regenerative Medicine procedures when approved for use by FDA or for use under the FDA’s expanded use programs as applicable. The Company charges its customers for ATCell cellular processing based upon the requested cell quantity. A typical 25ml sample of adipose tissue can yield multiple master samples and expanded cell quantities up to one billion cells or more per master sample. Storing large quantities of expanded cells provides the opportunity for a client to receive multiple future treatments from a single ATCELL expansion process on demand for approved FDA treatment. All customer samples submitted for processing must utilize the CELLECT® collection system and ACSelerate™ mediums to conform to our internal SOPs, product specifications and quality control standards.

Lease obligations at December 31, 2021:
Twelve Months ending December 31, 2022	$	35,923
Twelve Months ending December 31, 2023		2,994
Total Payments		38,917
Amount representing interest		(2,856	)
Finance lease obligation, net	$	36,061
Finance lease obligation, current portion		33,100
Finance lease obligation, long-term		2,961

The Company’s ATCELL™ cell lines are processed and cultured in our patented ACSelerate™ cell culture media. All tissue, cells, and research materials made available for sale to research institutions are tested for sterility, disease, lifespan, and population doubling rate (PDL). Cell morphology is confirmed by (i) flow cytometry and (ii) differentiation analysis using ACSelerate™ differentiation media. Each ATCELL™ line can be further cultured and differentiated allowing the Company to provide genetically matched cell types. We believe this research methodology may provide opportunities for the Company’s ATCELL™ and ACSelerate™ products to become the building blocks of final developed commercial applications.15

~~CELLECT® Validated~~American ~~Collection, Transportation, and Storage System – The Company developed and implemented an unbreakable~~CryoStem “chain of custody” clinical solution to collect and deliver tissue samples utilizing proprietary and patented methods and materials. The CELLECT® service successfully eliminated the high cost and logistical complications associated with utilizing liquid nitrogen DEWARS or dry ice during shipments of adipose tissue. The service is monitored in real-time and assures the highest cell viability upon laboratory receipt. The CELLECT® system incorporates our proprietary ACSelerate–TR™ transport medium into all collection bags which supports the health of the tissue during transport at ambient temperature. The CELLECT® kit is an integral part of our validated ATGRAFT™ and ATCELL™ technology platform to be used by our domestic physician network and licensees of our platform technologies. The CELLECT® service is included in our granted patent “Business Method for Collection, Processing, Cryogenic Storage and Distribution of a Biologic Sample Material” US Patent Number 10,014,079, issued July 3, 2018.Corporation

18Notes to the Consolidated Financial Statements

~~During the~~December development of the CELLECT® service the Company incorporated the International Blood Banking identification and labeling and product identification coding system. The coding system was developed in conjunction with the American Association of Blood Banks (AABB)31, ~~the American Red Cross and the International Society of Blood Transfusion (ISBT). These groups form the~~ International Council for Commonality in Blood Banking Automation (ICCBBA) and developed the ISBT 128 Standard for machine readable labeling. This labeling system is an acceptable machine readable labeling standard, product description, and bar coding system for the FDA Center for Biologics Evaluation and Research under 21 CFR 606.12(c) 13. American CryoStem conforms to this standard in its laboratory facility and all cellular and tissue products produced at the facility carry our W3750 ICCBBA facility identifier.; The identifier allows any hospital, clinic, laboratory and regulator worldwide to identify the origin and obtain additional information on any sample produced at an American CryoStem facility. The Company promotes this standard in all laboratories that license or utilize our technology.2021

~~ATGRAFT™ Adipose Tissue Storage Service~~ Unaudited

~~The Company~~Note ~~developed this clinical fat processing and storage (ATGRAFT™) as a solution for physicians to provide their patients with multiple tissue and cell storage options~~11. ~~Through~~Leases one liposuction procedure, the ATGRAFT™ service, allows individuals to prepare for future cosmetic or regenerative procedures by storing multiple samples of their own adipose tissue to be returned in the future as a natural biocompatible filler, or to be further processed to create cellular therapy applications without the trauma of further liposuctions. ATGRAFT™ procedures may include breast reconstruction, layered augmentation, buttocks enhancement or volume corrections of the hands, feet, face and neck areas that experience significant adipose tissue (~~fat~~continued) volume reduction as we age. ATGRAFT™ is processed and stored utilizing our validated standard operating procedures so that stored fat tissue sample(s) may be retrieved in the future and delivered to the physician on demand or for re-processing to create stem cells “ATCELL™” for use in Regenerative medicine applications. The Company charges fees for the reprocessing of a 25ml stored ATGRAFT™ sample and may charge additional fee’s if expansion of the newly created ATCELL™ sample is also requested. The ATGRAFT™ service is included in our granted patent “Business Method for Collection, Processing, Cryogenic Storage and Distribution of a Biologic Sample Material” US Patent Number 10,014,079, issued July 3, 2018.

The ~~Company~~ ~~charges~~lease ~~standardized~~payments ~~fees~~ for ~~ATGRAFT™ tissue processing based upon~~ the ~~volume of tissue stored. These~~ ~~processing~~three ~~fees~~months ~~may~~ended beDecember ~~paid~~31, to2021 ~~the~~were ~~Company~~$11,975, bywhich ~~the~~consisted ~~collecting/treating~~of ~~physician~~amortization orof ~~the consumer. The Company earns additional fees~~$10,102 ~~for~~and ~~storage,~~interest ~~thawing~~$1,873 ~~packaging~~ and ~~shipment of the stored samples back to the physician or clinic for immediate use upon~~payments ~~receipt. The ATGRAFT™ service lowers physician/patient overall costs by eliminating additional liposuction procedures~~ for ~~each~~the ~~scheduled~~three ~~fat~~months ~~transfer~~ended orDecember ~~therapy~~31, ~~procedure.~~2020 ~~Physician~~were ~~cost savings may include: materials~~$10, ~~supplies~~559, ~~equipment, and~~which ~~the~~consisted ~~expenses~~ of ~~utilizing~~amortization aof ~~surgical center~~$9,729 ~~hospital~~and ~~operating~~interest ~~room~~of ~~or an in-office aseptic procedure room~~$830. ~~The ATGRAFT™~~At ~~service~~December is31, ~~designed~~2021, tothe ~~operate~~remaining ~~under~~lease ~~the~~term ~~minimally~~was ~~manipulated~~1.06 ~~regulations~~years ~~contained~~(13 inmonths) ~~both~~and 21the ~~CFR~~discount ~~1271.10~~rate ~~and~~was ~~PHS 361~~13.25%.

~~Cell~~Operating Culture Media Products– On August 2, 2011, the Company was issued US patent number 7,989,205 for “Cell Culture Media, Kits and Methods of Use.” The granted claims include media variations for cellular differentiation of ADSCs into osteoblasts (bone), chondrocytes (cartilage), adipocytes (fat), neural cells, and smooth muscles cells in both HSA medium (clinical) grade and FBS (research) grade. This patent covers both research grades and grades - suitable for cell culture of adipose-derived stem cells intended for use in humans. Additionally, on November 8, 2016 the Company was granted additional claims from the continuation U.S. Serial No. 13/194,900 issued as a new Patent Serial No. 9,487,755.Lease

The Company leases ~~developed~~its ~~and~~office ~~patented~~facility, ~~cell~~in ~~culture~~Eatontown, ~~media~~New ~~products~~Jersey, ~~for~~from ~~growing~~Eaton ~~human~~Holdings ~~stromal~~LLC. ~~cells~~The ~~(including~~lease ~~all~~expired ~~cells~~on ~~found~~April ~~in human skin~~30, ~~fat~~2021 and ~~other~~the ~~connective~~Company can ~~tissue)~~exercise a renewal option for an additional three years. ~~ACSelerate™~~The ~~MAX~~company ~~cell~~has ~~culture~~not ~~media~~exercised isits ~~manufactured~~option ~~animal~~to ~~serum~~renew for 36 months at ~~free~~$2,650 ~~which~~per ismonth. ~~suitable~~The ~~for~~company ~~human~~is ~~clinical~~renting ~~and~~month ~~therapeutic~~to ~~uses.~~month ~~Additional~~at ~~versions~~$2,650 ~~have~~per ~~been~~month, ~~developed~~while ~~and~~management ~~patented~~evaluates ~~for~~whether ~~application development~~it ~~and~~will ~~research~~renew the ~~purposes~~lease. ~~The~~Since ~~ACSelerate™~~the ~~cell~~lease ~~culture~~obligation ~~media~~is ~~product~~less ~~line~~than ~~was~~twelve ~~specifically developed~~months, tothe ~~address~~Company ~~increasing~~does ~~industry~~not ~~demands~~report ~~for~~a ~~animal~~lease ~~serum-free~~related ~~cell~~asset ~~culture~~or ~~products~~liability for ~~and~~this lease. The lease expense for the ~~acceleration~~quarter ofended ~~products from~~December ~~the~~31, ~~laboratory~~2021 toand ~~the~~2020 ~~patient~~was $7,950 and $7,950, respectively.

OnThe ~~March~~Company ~~16,~~leases ~~2016,~~its ~~the~~laboratory ~~Company~~facility, ~~entered~~in ~~into~~Monmouth aJunction, ~~licensing~~New ~~and~~Jersey, ~~manufacturing~~from ~~agreement~~Princeton ~~for~~Corporate ~~manufacturing~~Plaza ofLLC. ~~ACSelerate~~The ~~Max~~Company ~~media~~renewed ~~with~~its ~~PeproTech,~~lease aon ~~life~~April ~~sciences~~1, ~~company~~2021 ~~formed~~for inan ~~1988~~additional ~~and a~~12 ~~trusted~~months ~~source for the development~~ and ~~manufacturing~~pays of$2,462 ~~high-quality~~per ~~products~~month. ~~for~~Since the ~~life-science~~lease ~~and~~obligation ~~cell~~is ~~therapy~~less ~~markets.~~than ~~PeproTech~~twelve ~~has grown into a global enterprise with state-of-~~months, the~~-art~~ ~~manufacturing~~Company ~~facilities~~does innot ~~the~~report ~~US,~~a ~~and~~lease ~~offices~~related ~~around~~asset ~~the world.~~or ~~The~~liability ~~agreement calls~~ for ~~PeproTech~~this tolease. ~~manufacture~~Rent ~~the~~paid ~~medium~~ for the ~~Company’s~~laboratory ~~use~~facility infor ~~processing the ATCell product~~quarter ~~and~~ended ~~permits~~December ~~PeproTech~~31, to2021 ~~sell~~and ~~the~~2020 ~~product~~was ~~under~~$7,687 ~~its~~and ~~PeproGrow~~$7,187, ~~brand~~respectively. ~~The Company receives royalties from such sales. The Agreement automatically renews for one-year periods on its anniversary date.~~

19NOTE 12. Investments

~~On December~~During ~~31,~~the ~~2014~~first quarter of 2018, the Company ~~filed~~invested a$300,000 ~~patent~~in ~~application~~Baoxin ~~for~~Ltd., ana ~~advanced~~Chinese ~~medium~~company ~~formulation~~that ~~titled~~is ~~Human~~involved ~~Albumin~~in ~~Serum~~tissue ~~for Cell Culture~~storage ~~Medium~~and ~~for~~processing ~~Clinical~~in ~~Growth~~Baoxin, ofChina. Baoxin ~~Human~~is ~~Adipose~~not ~~Stromal~~a ~~Cells.~~publically ~~(US~~traded ~~Serial~~corporation ~~No.~~and ~~62/098799).~~the Oninvestment ~~December~~is ~~31,~~carried ~~2015,~~at the ~~Company converted~~lower ~~the~~of ~~provisional~~cost ~~application~~or tomarket anvalue. ~~international~~The ~~PCT~~Company ~~filing~~annually ~~(PCT/US/68350)~~reviews ~~under~~its ~~the~~investments ~~title Human Serum~~ for ~~Cell Culture for Clinical Growth of Human Adipose Stromal Cells~~impairment. ToBased ~~date~~on the ~~patent~~Company’s ~~has~~year ~~also~~end ~~been filed in~~ review, the ~~following~~carrying ~~additional~~value ~~countries:~~of ~~China~~the ~~and Hong~~Baoxin ~~Kong,~~Investment ~~India,~~was ~~Mexico,~~reported ~~Brazil,~~as ~~the European Union~~$244,919 ~~US,~~at ~~Japan,~~December ~~Thailand~~31, ~~Brazil,~~2021 ~~Russia,~~and ~~Australia~~$244,919 ~~New~~at ~~Zealand,~~September ~~Canada~~30, ~~and Saudi Arabia~~2021.

WeThe ~~have generated~~Agreement ~~minimal~~with ~~culture~~Baoxin ~~media~~is ~~revenue~~for ~~from~~Baoxin ~~PeproTech~~to develop, own and operate multiple laboratory/treatment/training facilities in China using the American CryoStem’s ~~sales~~intellectual ~~efforts~~property. Under the Agreement, ~~management~~American ~~believes~~CryoStem ~~that~~received wean ~~are~~upfront ~~well~~fee ~~positioned~~of $200,000 USD and a yearly minimum annual guarantee of $500,000 USD per year from Baoxin until the entire amount of the Contract ($6,000,000 USD) is paid. Additionally, as part of the transaction American CryoStem has invested $300,000 into Baoxin to ~~utilize~~obtain a 5% minority equity in ~~our~~Baoxin ~~developed~~(China) ~~products~~and an option to acquire up to a 20% equity ownership interest in its Regenerative Medicine Center in Hong Kong (HK). The goals are to set up two additional GMP grade adipose tissue processing and ~~services~~storage asfacilities in Beijing and Shanghai to cover the ~~foundation~~need ~~for~~of ~~domestic~~the whole China region, and ~~international~~a ~~distribution~~proper ~~through~~education ~~licensees~~facility in China to promote the use of ATGRAFT as a more natural dermal filler over artificial fillers. Due to the uncertainty caused by the pandemic and our ~~technologies~~pending public offering, the Company has decided to increase its allowance for adoubtful ~~host~~accounts to include the amount owed by Baoxin at this time and to suspend its recognition of ~~Regenerative~~revenue ~~Medicine~~from ~~application~~Baoxin ~~uses~~until such time as circumstances in China ease and ~~future~~Baoxin ~~therapy~~is ~~products~~able to return to normal operations and make the contractual payments.

~~Contract~~NOTE ~~Manufacturing, Autokine-CM® Anti-Aging, Autologous Skin Care Product Line – Under agreement with Personal Cell Sciences Corp~~13. ~~(PCS),~~Concentration we manufacture the key ingredient Autokine-CM®(autologous adipose derived stem cell conditioned medium) for PCS’ U-Autologous™ anti-aging topical formulation. Each product is genetically unique to the individual and custom blended, deriving its key ingredients from the individual client’s own stem cells. The Company provides its CELLECT® Tissue Collection service to collect the required tissue to manufacture the U-Autologous™ product and processes it under the same Standard Operating Procedures that it developed for the ATGRAFT™ and ATCELL™ cell processing services utilizing ACSelerate™ cell culture media. The Company receives collection, processing and long-term storage fees and earns a royalty on all U-Autologous product sales. The utilization of ~~the Company’s core services in its contract manufacturing relationships provides opportunities for the Company and its ATGRAFT™ and ATCELL™ products.~~Credit

~~Our~~ The Company’s ~~contract~~received ~~manufacturing~~96% ~~services~~of its ~~can~~revenue befrom ~~extended~~one toclient, ~~develop~~Baoxin, ~~custom and/or white label products and services~~ for ~~both~~ ~~local~~the ~~and~~quarter ~~global~~ended ~~cosmetic~~December ~~and regenerative medicine companies~~31, ~~physicians,~~2020. ~~wellness~~There ~~clinics~~were ~~and~~no ~~medical~~such ~~spas.~~concentrations ~~The~~for ~~Company intends~~the tothree ~~expand~~months ~~its~~ended ~~relationships~~December ~~and~~31, ~~contract manufacturing services domestically~~2021.

~~International Licensing Program –Many jurisdictions outside the US currently permit use of cellular therapies and regenerative medicine applications.~~ The Company ~~receives~~regularly ~~international inquiries concerning the sale or licensing of our SOPs, products and services~~reviews ~~into~~all ~~the~~receivables ~~Regenerative Medicine~~ and ~~Medical~~determines ~~Tourism Markets. The Company believes that~~ the ~~inquiries~~amount ~~to date are a result~~ of ~~the global~~allowances ~~boom~~if inany ~~Regenerative~~on ~~Medicine,~~a ~~Medical~~quarterly ~~Tourism and, the pace of approval of cellular therapies and regenerative medicine applications in the US~~basis. To address the Company’s sales, marketing and branding opportunities globally, the Company has created its international licensing program. To date we have licensed our technologies in Hong Kong, Shenzhen and Shanghai, China, and Bangkok Thailand. The Company is currently in discussions for additional licensed territories.

The difficulties and uncertainties ~~Company~~caused ~~believes~~by itCOVID, ~~can~~Chinese ~~take~~government ~~advantage~~policies and Baoxin’s going concern considerations have caused concern as to the collectibility of the ~~significant~~Baoxin ~~growth~~receivable. ofCommunications and correspondence with Baoxin Management indicate a continuing commitment to American CryoStem’s technology and the ~~global~~Agreement ~~cellular~~to ~~therapy~~a ~~market~~Territorial ~~through~~License of its ~~international licensing~~patents and ~~marketing~~other ~~efforts~~intellectual property. A Baoxin recently ~~published~~completed ~~study~~its bystate ~~Transparency~~of ~~Market~~the ~~Research~~art ~~predicts~~facilities in Shenzhen to roll out therapies to the ~~global~~Chinese ~~market~~people. ~~for~~Although ~~stem~~Baoxin ~~cells~~has confirmed isthe ~~expected~~receivable, tothe ~~register~~Technology Fees billed of $500,000 annually and a ~~healthy~~total ~~CAGR~~contractual obligation of 13$6,000,000, there is concern about to their ability to pay.8% ~~during~~For this reason, the ~~period~~Company ~~from~~is ~~2017~~not toreporting ~~2025~~the toFees ~~become worth~~from ~~US$270.5~~this bncontract byas ~~2025~~revenue.

Baoxin is still relying on investment (~~https://www~~financing) to continue its operations, which is typical for biotechnology companies globally and is currently in negotiations with the Chinese government which include funding requests.~~transparencymarketresearch~~ Management is optimistic that the effects of the pandemic will eventually subside, Baoxin’s operations will return to normal and they will obtain the financing necessary to pay American CryoStem.~~com/pressrelease/stem-cells-market.htm)~~

~~China~~16

OnAmerican ~~July~~CryoStem 12, 2018 the Company announced the national launch of CRYO's ATGRAFTTM tissue collection, processing and storage technology by Baoxin Asia Pacific Biotechnology (Shenzhen) Co. Ltd. ("Baoxin") in China. Under the terms of the Agreement, Baoxin agreed to pay the Company a minimum annual guarantee against a fixed fee per process and purchase certain necessary consumables from CRYO required for the collection, processing and storage of the collected adipose tissue. The Company invested in and currently holds approximately five percent (5%) of Baoxin shares. Mr. Arnone and Mr. Dudzinski were elected to serve as Directors of Baoxin in 2018. Mr. Arnone resigned as a board Member of Baoxin in 2019. Mr. Dudzinski continues to serve the Company’s interests as a board member of Baoxin. During Fiscal 2020 due to the effects of the COVID pandemic in China, politics and government regulations Baoxin suspended operations at the onset of COVID-19. We have been informed by Baoxin’s Chairman and CEO that they and recently completed a new laboratory facility located in Shenzhen, China and were preparing to restart their sales and marketing efforts as soon as possible. The Company cannot at this time estimate timing to reopen operations in China.Corporation

20Notes to the Consolidated Financial Statements

~~Hong~~December 31, ~~Kong~~2021

On June 30, 2014 the Company granted Health Information Technology Company, LTD (“HIT”) exclusive rights to utilize the Company’s Standard Operating Procedures (SOP’s) to market the Company’s ATGRAFT™ tissue storage service in Hong Kong. The Agreement called for upfront fees, royalties and the purchase by HIT of certain consumables manufactured by the Company. The Company and HIT reached further agreement to extend their relationship on a non-exclusive basis to include HIT’s cord blood laboratory located in Shenzhen, Guangdong Province, one of China’s most successful Special Economic Zones. The HIT agreement includes, initial upfront fees and royalty payments for predetermined gross revenue volumes. HIT will also purchase CRYO ACSelerate™ storage media, CELLECT™ collection and transportation kits as well as other American CryoStem products necessary for clinical adipose tissue processing and storage at the Shenzhen facility. The final master licensing agreement is for a period of 5 years with renewal options and was executed between the parties on September 24, 2014, the Agreement automatically renewed on September 24, 2019 for an additional 3 year period.Unaudited

InNOTE ~~2017 as part of the Company’s transaction with Baoxin, HIT and the Company agreed to transfer certain product and distribution rights granted to HIT under its 2014 agreement to Baoxin~~14. ~~The~~Related ~~Company~~Party was paid a fee of US $100,000 in the transaction. In addition, the Company was provided with an initial ownership of five percent and a warrant to purchase an additional fifteen percent in a planned Regenerative Treatment Center to be established by Baoxin in Hong Kong for an exclusive right to distribute the Company’s cell culture media products in Hong Kong. Due to regulatory changes in Hong Kong regarding cellular therapy treatments and manufacturing, Baoxin has not established the Regenerative Medicine Center in Hong Kong and has not distributed any Company medium products under the granted license.Transactions

~~Thailand~~On October 1, 2020 the Company executed a note with ACS Global, Inc. for a principal amount of $99,125 representing the outstanding balance due to ACS Global. Inc. The Note matures on October 1, 2023 and carries an interest rate of 10% per annum which may be paid in cash or stock. The note is due and payable in full upon maturity. On March 1, 2021, the note was increased by $49,000. The note may be prepaid at any time by the Company.

OnFrom ~~April~~time to 5,time ~~2018~~ the Company ~~announced~~makes ~~further~~principal ~~expansion~~payments ofon ~~its~~the global laboratory and cellular technology footprint by entering into an agreement to license its ATGRAFT™ and ATCELL adipose tissue (fat) processing and storage technologies with CRYOVIVA (Thailand) Ltdnote., aDuring ~~Bangkok,~~the ~~Thailand,~~three ~~based~~months ~~Cord~~ended ~~Blood~~December ~~processing and storage facility. CRYOVIVA~~31, ~~Thailand~~2021, ~~currently~~the ~~offers~~Company ~~collection,~~paid down ~~processing~~the ~~and,~~note ~~storage of Cord Blood derived biologics to patients throughout Thailand and Southeast Asia~~$18,000.

American CryoStem has licensed to CRYOVIVA (Thailand) Ltd., established in 2007, the rights to utilize the Company’s Standard Operating Procedures (SOP’s) to create and market the Company’s ATGRAFT™ tissue storage service and ATCELL™ adipose derived stem cell processing and storage services in Thailand. The ~~financial terms generally, called for the payment of certain~~principal upbalance ~~front training fees and, a percentage~~ of the ~~gross~~Note ~~revenue~~is ~~subject~~$130,433 toat ~~annual~~December ~~minimum payments generated from our products. Additionally~~31, ~~the~~2021 ~~Agreement calls for the purchase of CRYO consumable products required for ATGRAFT™~~ and ~~ATCELL™ sample processing including CRYO’s ACSelerate™ non-DMSO cryogenic tissue storage media~~147,775 ~~transportation~~at ~~media,~~September ~~Cellect™ tissue collection kit~~30, ~~and ACSelerate – Max™ cell culture medium~~2021.

The Company ~~assisted~~exchanged ~~CRYOVIVA~~1,000,000 ~~with~~newly ~~the~~created ~~development~~Series ofA ~~their~~Voting ~~branding~~Convertible ~~and~~Preferred ~~marketing~~Shares ~~campaign~~ for Thailand and providing technical assistance and support for their import of consumables purchased from the Company. CRYOVIVA had scheduled the launch of its marketing campaign for the first quarter of 2021. Due to the global impact of COVID-1920,000,000 ~~CRYOVIVA~~common ~~greatly~~shares ~~reduced~~held ~~their~~by ~~operations~~ACS ~~in 2021 and the~~Global, ~~Company has generated minimal revenue~~Inc. ~~The Company cannot at this time estimate the timing for Thailand to restart operations due to COVID-19 and associated lockdowns in Thailand.~~

~~Product~~Terms of the ~~Development~~Series A Voting Convertible Preferred Shares are as follows:

~~Our strategic~~1. ~~approach~~Each toSeries ~~product~~A ~~development~~Share is toconvertible ~~design,~~into ~~develop~~20 ~~and~~shares ~~launch new products and services that utilize our existing products and services, i.e. the use~~ of ~~the~~American ~~CELLECT®~~CryoStem ~~collection~~common ~~materials~~stock ~~in providing ATCell and ATGRAFT™ processing and storage services~~$0.001 ~~This~~par ~~approach~~value, ~~allows~~subject ~~progress with our co-developed clinical studies~~ to ~~build~~any ~~our~~recapitalization ~~application pipeline with cellular therapies~~event. We can rely upon the production and validation data to support our FDA application and Biologic License Application filings. Management believes that this approach may also provide the Company with opportunities to attract strong international licensing and collaborative partners and accumulate complementary scientific data.

212. Stated annual dividend of $0.20 per share payable quarterly in cash or stock at the discretion of the Company’s Board of directors.

To leverage the Company’s development efforts, the Company incorporates its proprietary and patented patent pending laboratory products, such as our ACSelerate™ cell culture media, into our processing and product production services3. ~~The~~Each ~~Company~~preferred ~~requires~~share ~~licensees of~~shall ~~our~~have ~~tissue~~20 ~~and~~votes ~~cell~~on ~~processing~~all ~~technologies~~matters tosubject purchase the consumable products required in the collection, processing, and storage of tissue/stem cells as part of the licensing agreement including our CELLECT® Collection, Transportation, and Storage System and ACSelerate™ Cell Culture Media Products. Strategically, the incorporation of proprietary products into our current clinical studies generates the uniform and consistent data necessary to ~~support~~a ~~product~~Company ~~approval~~shareholder ~~applications with FDA~~vote.

~~Our~~4. ~~product development~~Convertible ~~efforts~~after ~~have~~one ~~resulted~~year inat ~~completing and validating~~ the ~~Company’s~~discretion ~~platform technologies for the collection, processing and storage~~ of ~~adipose tissue and stem cells evidences~~ the ~~Company’s~~ACS ~~ability~~Global toboard ~~provide uniform cell samples and quantities from any adipose tissue sample. The consistency~~ of the platform to produce autologous cellular therapy samples allows for the collection of reproduceable manufacturing results and additional clinical study data which is required by the US FDA and similar regulatory agencies around the globe to obtain clinical study and marketing approvalsdirectors.

~~The~~NOTE ~~Company’s validated its platform technologies for the Chemistry Manufacturing and Control (CMC) sections of its submitted and approved IND application for Post-Concussion Syndrome~~15. ~~The~~Subsequent Company will incorporate and rely on the approved CMC as the manufacturing platform for all future IND applications with the FDA which management believes will help to accelerate the approval of its planed studies for orthopedic, wound healing and Duchene Muscular Dystrophy clinical study applications.Events

WeThe ~~intend to~~Company ~~expand~~has ~~our~~made ~~product~~a ~~and~~review ~~services~~of ~~pipelines~~material ~~based~~subsequent ~~upon~~events ~~our~~from ~~intellectual~~December ~~property portfolio~~31, ~~FDA~~2021 ~~clinical~~through ~~study~~the ~~applications,~~date ~~collaborative development~~of ~~relationships,~~issuance ~~and~~of ~~international~~this ~~licensing and partnering opportunities~~report. ~~Our~~There ~~plans include supporting collaborations~~are byno ~~providing~~subsequent ~~our~~events ~~products~~to ~~and~~report ~~services~~as ~~with~~of the ~~expectation~~issuance ~~that~~of ~~they~~these ~~become~~financial ~~the basis for new adipose tissue and stem cell based Regenerative Medicine therapies, FDA clinical study applications approved biologic license approvals~~statements.

~~Investigational New Drug (IND)~~17

~~The~~ITEM ~~Company filed its first Investigational New Drug Application (IND) with the US Food and Drug Administration (FDA) for the ATCELL cellular therapy product~~2. The IND filing is titled “ATCell™ Expanded Autologous Adipose Derived Mesenchymal Stem Cells deployed via Intravenous Infusion for the Treatment of Post Concussion Syndrome (PCS) in Retired Athletes and Military Personnel”. The Company made the original filing in August of 2019 to the FDA Electronic Common Technical Document system (eCTD) for technical review. Following this review, the Company made several amendments and received additional technical comments from FDAMANAGEMENT’~~s technical~~S ~~group.~~DISCUSSION ~~The~~AND ~~Company~~ANALYSIS ~~completed~~OF ~~all~~FINANCIAL ~~technical~~CONDITION ~~changes~~AND toPLAN ~~the~~OF filing in October 2019 and was assigned File number 19089, for the filing accepted for review by the FDA on October 22, 2019. The Company received further comments from the FDA in a clinical hold letter dated December 19, 2019. The letter requested additional information, clarification of certain aspects of the filed documents, amendment to the screening and treatment protocols, and the implementation of additional testing during the production and release of the final samples. The FDA approved our application on September 17, 2020, and the Company began recruiting participants in March of 2021. We expect to complete the Phase I study in the first half of fiscal 2022.OPERATIONS

~~Cooperative~~Forward-looking ~~Research and Development Agreement (CRADA)~~Statements

OnWe ~~December~~and 3,our ~~2020~~representatives may from time to time make written or oral statements that are “forward-looking,” including ~~the~~statements ~~Company~~contained ~~entered~~in ~~into~~this aquarterly ~~Cooperative~~report ~~Research~~and other filings with the Securities and ~~Development~~Exchange ~~Agreement~~Commission (~~CRADA~~the “SEC”), ~~with~~reports ~~Walter~~to ~~Reed~~our ~~National~~stockholders and news releases. All statements that express expectations, estimates, ~~Military~~forecasts ~~Medical~~or ~~Center~~projections ~~(WRNMMC)~~are forward-looking statements. In addition, ~~the~~other ~~nation’s~~written ~~largest~~or ~~and~~oral ~~most~~statements ~~renowned~~which ~~joint~~constitute forward-looking ~~military~~statements ~~medical~~may ~~center~~be ~~serving~~made ~~the~~by ~~Army~~us or on our behalf. Words such as “expect,” “anticipate,” ~~Navy~~“intend,” ~~Air~~“plan,” ~~Force~~“believe,” “seek,” “estimate,” “project,” “forecast,” “may,” “should,” variations of such words and ~~Marines~~similar expressions ~~located~~are inintended ~~Bethesda~~to identify such forward-looking statements. These statements are not guarantees of future performance and involve risks, ~~Maryland~~uncertainties and assumptions which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in or suggested by such forward-looking statements. We undertake no obligation to update or revise any of the forward-looking statements after the date of this quarterly report to conform forward-looking statements to actual results. Important factors on which such statements are based on assumptions concerning uncertainties, including but not limited to, uncertainties associated with the following:

~~A Cooperative~~· ~~Research~~Inadequate capital and ~~Development~~barriers ~~Agreement~~to ~~(CRADA)~~raising isthe aadditional ~~written~~capital ~~agreement~~or ~~between~~to aobtaining ~~government agency and a non-federal entity that allows~~ the ~~federal~~financing ~~government~~needed ~~and its non-federal partners~~ to ~~optimize~~implement ~~and~~our ~~maximize~~business ~~use~~plans; of· ~~their~~Our ~~resources,~~failure ~~exchange technical~~to ~~expertise~~earn inrevenues aor ~~protected~~profits; ~~fashion,~~· ~~share~~Inadequate ~~intellectual~~capital ~~property~~to ~~resulting~~continue ~~from~~business; ~~collaborative~~· ~~effort,~~Volatility ~~and~~or ~~speed~~decline ~~commercialization~~ of ~~federally~~our ~~developed~~stock ~~technology.~~price; ~~The~~· ~~Company~~Potential ~~has~~fluctuation ~~committed~~in toquarterly ~~provide~~results; ~~materials~~· ~~including~~Rapid ~~ATCell samples~~ and ~~Umbilical~~significant ~~Cord stem~~changes ~~cells,~~in ~~ACSelerate~~markets; ~~Max~~· ~~Growth~~Litigation ~~and~~with ~~differentiation~~or ~~mediums~~legal ~~testing~~claims and ~~other~~allegations ~~processing~~by ~~supplies,~~outside ~~processing~~parties; and ~~testing~~· ~~methods. The~~Insufficient ~~Company’s~~revenues ~~total in-kind and financial commitments are limited~~ to ~~$120,000~~cover inoperating ~~supplies and expense reimbursement during the life of the Agreement~~costs.

22The following discussion should be read in conjunction with the financial statements and the notes thereto which are included in this quarterly report. This discussion contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ substantially from those anticipated in any forward-looking statements included in this discussion as a result of various factors.

The Company maintains the rights to commercialize all technology developed under this CRADA Agreement. The technology is centered on creating in vitro (test tube) assays to standardize and commercialize new treatment protocols; optimizing quality control measures; and developing standardized protocol potency assays for precise therapy dosing.18

~~Management believes that these new assays can be commercialized to generate substantial sales and licensing revenues and create value for the Company’s stakeholders.~~Background

~~Through~~We were incorporated in the ~~Collaboration~~state ~~entitled~~of ~~“Stem~~Nevada ~~Cells~~on ~~for~~March ~~Regeneration~~13, ~~and~~2009. ~~Medical~~On ~~Innovation~~April 20, a2011, ~~multi-faceted~~we ~~and~~acquired, ~~multi-staged~~through ~~research~~our wholly owned subsidiary American CryoStem ~~project~~Acquisition ~~with~~Corporation, ~~WRNMMC~~substantially ~~Biomedical~~all ~~Laboratories~~of the assets from, and assumed substantially all of the ~~Company~~liabilities ~~plans~~of, toACS ~~develop~~Global, Inc. ~~validate~~(“ACS”) ~~and~~in ~~standardize~~exchange ~~baseline~~for ~~and~~our ~~assay~~issuance ~~metrics to~~of ~~identify~~21,000,000 ~~mesenchymal~~shares ~~stem~~of ~~cell~~our common stock, par value $0.001 per share, to ACS (~~MSC~~the “Asset Purchase”). ~~characteristics~~We ~~and~~filed ~~quantities~~a ~~across~~Current ~~various~~Report ~~cell~~on ~~biomarkers~~Form 8-K with the Securities and ~~exosome~~Exchange ~~expressions~~Commission (SEC) ~~data~~on ~~sets~~April ~~for~~27, ~~its~~2011, ~~ATCell™~~disclosing ~~product~~the ~~for~~Asset ~~biologics~~Purchase ~~developers’~~and ~~use~~certain ~~worldwide.~~related ~~The~~matters ~~focus~~including, but not limited to, the appointment of our present officers and directors as well as the ~~Collaboration~~resignation isby tothe ~~enable~~former chief executive officer and sole director. Our fiscal year ends September 30 of each calendar year. Upon the ~~creation~~closing of ~~predictive~~the ~~and~~Asset ~~prescriptive~~Purchase: ~~cellular~~(i) ~~models~~ACS ~~which~~Global ~~will~~became ~~further~~our ~~enhance~~majority ~~American~~shareholder, (ii) ~~CryoStem’s~~John ~~mission~~Arnone was appointed as aour chief executive officer and president Anthony Dudzinski was appointed as our chief operating ~~premier~~officer, ~~biologics’~~treasurer ~~manufacturer~~and secretary, and ~~developer~~(iii) John Arnone and beAnthony ~~highly~~Dudzinski ~~valuable~~were appointed to ~~the~~our ~~medical~~board ~~community~~of directors, ~~biotech~~with ~~developers~~Mr. Arnone being appointed as Chairman of the Board. Mr. Dudzinski is also a director, president and ~~the~~treasurer of ACS Global and Mr. ~~public~~Arnone atis ~~large~~a director and secretary of ACS Global.

WRNMMC is part of The Military Health System (MHS) which is the enterprise within the United States Department of Defense that provides health care to active duty, Reserve component and retired U.S. Military personnel and their dependents.Overview

~~The~~American CryoStem ~~missions~~Corporation; of(CRYO) founded in 2008, is a biotechnology pioneer, having developed standardized adipose tissue derived technologies (Adult Stem Cells) for the ~~MHS~~fields of regenerative and personalized medicine. These standardized technologies which include granted patents, are ~~complex~~the basis for our chemistry, manufacturing, and ~~interrelated:~~controls To(cGMP ~~ensure~~Manufacturing) ~~America’s~~of ~~1.4~~our ~~million~~ATCell™ ~~active~~autologous ~~duty~~cellular therapy product for use in clinical investigations for Biologic License Applications with the US Food and ~~331,000~~Drug ~~reserve-component~~Administration ~~personnel~~(FDA). Our laboratory stem cell products are ~~healthy~~characterized soadult ~~they~~human ~~can~~Mesenchymal ~~complete~~Stem ~~their~~Cell ~~national~~(MSC’s) ~~security~~derived ~~missions~~from adipose tissue that work in conjunction with our patented (non-animal) medium lines and knowhow.

·The ToCompany filed ~~ensure~~its ~~that~~first ~~all~~Investigational ~~active~~New ~~and~~Drug ~~reserve~~Application ~~medical~~(IND) ~~personnel~~with inthe ~~uniform~~FDA ~~are~~for ~~trained~~our ATCell™ cellular therapy product. The IND filing is titled “ATCell™ Expanded Autologous Adipose Derived Mesenchymal Stem Cells deployed via Intravenous Infusion for the Treatment of Post-Concussion Syndrome (PCS) in Retired Athletes and ~~ready~~Military Personnel” File number 19089 was approved by the FDA on September 17, 2020 to ~~provide~~commence ~~medical~~the ~~care~~Phase 1 Clinical Trial. Post-concussion syndrome is a chronic, incurable central nervous system condition affecting a significant number of the United States military and athletes, especially those involved in ~~support~~contact sports such as football, boxing, soccer, and other sports where participants have suffered one or more concussions or mild traumatic brain injuries (mTBI). Published research has indicated that up to 30% of ~~operational~~all ~~forces~~military ~~around~~personal, active and retired, may suffer from this condition. According to the ~~world~~Department of Defense evaluation of U.S. military casualty statistics, From 2000-2019 Q3, 413,858 United States Military personnel worldwide experienced a; were considered mild, 9.8% moderate, and 2.3% penetrating or severe.

·The ToCompany built ~~provide~~and validated a ~~medical~~new ~~benefit~~cGMP ~~commensurate~~clean ~~with~~room ~~the~~processing ~~service~~ and ~~sacrifice~~manufacturing ofarea ~~more~~at ~~than~~our ~~9.5~~facility ~~million~~in ~~active-duty~~Monmouth ~~personnel~~Junction NJ, ~~military~~implemented and ~~retirees,~~validated cGMP Standard Operating Procedures (SOPs) and ~~their~~installed ~~families~~a new Quality Management System to support its IND filings and an increased focus on patent and product development and support additional clinical activities.

The Company ~~MHS~~has ~~also~~built ~~provides~~a ~~health~~domestic ~~care,~~and ~~through~~international patent portfolio consisting of 32 patents. Our 4 primary operating patents regarding the “collection ~~TRICARE~~– ~~health~~processing ~~plan,~~– cryopreservation and return to: point-of-care” of adipose derived stem cells, have been granted.

·The ~~Active-duty~~Company is ~~service~~expanding ~~members~~its efforts to attract and ~~their~~cultivate ~~families~~collaborative partners to accelerate its product development efforts, harnessing its manufacturing platform and tissue processing platforms. The R&D collaborations are to discover, develop, and commercialize cellular therapies, laboratory products and combinations thereof with synergistic technologies to create regenerative medicine applications and develop new intellectual property.

~~· Retired service members and their families,~~Adipose Tissue

·The Company’s ~~Reserve~~manufacturing ~~component~~platform ~~members~~technologies, cell transportation products, cell culture mediums and ~~their~~cell ~~families~~therapies are focused on the acquisition and processing of adipose tissue as the primary raw material. Many of our developed technologies have been successfully applied to other raw materials such as bone marrow, umbilical and placenta tissue. Adipose tissue, also known as fat tissue or fatty tissue, is a connective tissue that is mainly composed of fat cells called adipocytes. Adipocytes are energy storing cells that contain large globules of fat known as lipid droplets surrounded by a structural network of fibers. tissue and other stromal tissues. The Company is focused on adipose tissue because it contains higher densities of mesenchymal stems cells (often 500 to 1000 times more) per gram of raw material when compared to other sources (bone marrow, umbilical cord tissue, etc). The higher cellular density of adipose tissue supports the ability to create regenerative cellular products more efficiently and with less expansion (lower passages and population doublings), which is preferred when producing cellular therapy products.

~~· Surviving family members,~~19

·Adipose ~~Medal~~tissue is considered one of ~~Honor~~the ~~recipients~~top human stem cell sources considering its accessibility, abundance, and least painful collection procedure when compared to other sources such as bone marrow. The adipose derived mesenchymal stem cells (ADSCs) that adipose tissue contains can be maintained and expanded in culture for long periods of time without losing their ~~families~~differentiation capacity, leading to large cell quantities being increasingly used in cell therapy purposes. Many published and peer reviewed reports show that ADSC-based cell therapy products demonstrated optimal efficacy and efficiency in various clinical indications for both autologous and allogeneic purposes, hence they are increasingly being considered as potential tools for replacing, repairing, and regenerating dead or damaged cells.

·Adipose ~~Some~~tissue is ~~former~~a ~~spouses~~specialized type of connective tissue that arises from the differentiation of mesenchymal stem cells into adipocytes during fetal development. Mesenchymal stem cells are multipotent cells that can transform into various cell types, including fat cells, bone cells, cartilage cells, and muscle cells among others. Adipose tissue can be found in a number of different places throughout the body. Adipose tissue is the most abundant type of fat in humans. It is distributed within subcutaneous fat, visceral fat, and bone marrow fat. Subcutaneous fat is found throughout the whole body, in the spaces between the skin and underlying muscles. Visceral fat is predominantly found around the organs in the abdominal cavity, such as the liver, intestines and kidneys, as well as in the peritoneum (a serous membrane that lines the outside of the abdominal organs). Adipose tissue is also present in bone marrow (a sponge-like tissue present in the central cavity of bones). In addition, adipose tissue can be found in the pericardium surrounding the heart, or cushioning other parts of the body, like the soles of the feet, eyeballs, and certain blood vessels.

·The ~~Others~~main ~~identified~~function of asadipocytes ~~eligible~~is to store excess energy in the ~~Defense~~form ~~Enrollment~~of ~~Eligibility~~fatty ~~Reporting~~molecules, ~~System~~mainly triglycerides. Fat storage is regulated by several hormones, including insulin, glucagon, catecholamines (adrenaline and noradrenaline), and cortisol. Depending on the body’s immediate energy requirements, these hormones can either stimulate adipose tissue formation and storage (i.e. lipogenesis) or initiate the release of fat from adipose tissue (i.e. lipolysis). Under the influence of insulin, for instance, adipocytes can increase the uptake of blood glucose and transform it into fatty molecules, thereby increasing fat storage.

~~The~~In addition ~~MHS~~to ~~has~~being aan ~~$50+~~energy ~~billion~~storing ~~budget~~reservoir, adipose tissue performs important endocrine and ~~serves~~metabolic ~~approximately~~roles ~~9.5~~by ~~million~~secreting ~~beneficiaries~~several biologically-active factors known as adipokines. ~~The~~These ~~MHS~~molecules ~~employs~~contribute ~~more~~to ~~than~~a ~~144~~variety of different functions,~~217~~ inincluding 51regulation ~~hospitals~~of energy balance, ~~424~~food ~~clinics,~~intake ~~248~~and ~~dental~~satiety, ~~clinics~~inflammatory response, and ~~251~~metabolism ~~veterinary~~of ~~facilities~~steroid ~~across~~hormones. ~~the~~Finally, ~~nation~~adipose tissue also helps cushion and ~~around~~protect parts of the ~~world~~body, as well as ininsulate ~~contingency and~~the ~~combat-theater~~body ~~operations~~from ~~worldwide~~extreme temperatures.

~~The~~In addition ~~Company’s~~to ~~long~~adipocytes, ~~term~~adipose ~~research~~tissue iscontains ~~focused~~the onstromal ~~further~~vascular ~~developing~~fraction ~~standardized~~(SVF) ~~cellular~~comprised ~~processing~~of ~~models~~cells toincluding ~~support FDA~~preadipocytes, ~~IND~~fibroblasts, ~~treatment~~vascular ~~protocol~~endothelial ~~approvals by further identifying~~cells, and ~~validating~~a ~~certain~~variety ~~mechanisms and characteristics~~ of ~~mesenchymal~~immune ~~stem~~ cells ~~related~~such toas ~~regulating~~adipose ~~modulation of immune response(s) and promoting~~ tissue ~~regeneration~~macrophages. ~~and~~Far ~~stability~~from ~~(homeostasis)~~being ~~for~~hormonally inert, ~~the~~adipose ~~treatment~~tissue ofhas, ~~traumatic~~in ~~injuries,~~recent ~~inflammation~~years, ~~auto-immune~~been ~~diseases,~~recognized ~~and~~as ~~brain~~a ~~and~~major endocrine organ, ~~damage~~as ~~associated~~it ~~with~~produces ~~viruses~~hormones such as ~~SARS-CoV-2 (COVID-19)~~leptin, ~~including~~estrogen, resisting, ~~the~~and ~~expanding~~cytokines ~~group~~(especially ofTNFα). ~~people~~Adipose ~~dealing~~tissue ~~with~~contains ~~the~~some ~~chronic~~of ~~and~~the ~~debilitating~~highest ~~symptoms~~concentrations of ~~what is~~adult ~~commonly~~stem ~~termed~~cells, progenitor ~~“Long~~cells ~~Haul~~and ~~COVID”~~immune ~~or “Long COVID~~cells.”

23Processing Technology

~~PeproTech~~The FDA considers processing and expanding cells as the manufacturing of a drug product. The Company’s completed proprietary, patented processing ~~Inc~~and manufacturing platform is designed for the collection, preparation and cryo-preservation of pure adipose tissue and adipose tissue derived cells. The processing platform has been validated to enable the Company to deliver cellular therapy samples with repeatable and identifiable characteristics of safety, potency, viability, and purity which are the core FDA requirements for the cGMP manufacturing of all drug products. Our manufacturing platform is approved by FDA for use in our current clinical study of Post Concussion Syndrome for the manufacturing of the cellular therapy samples. The Company believes that the platform is suitable to support the Company’s growing pipeline of product development and planned clinical studies, and future biologic license applications for an array of target diseases and conditions.

OnThe ~~April~~Company 4,believes ~~2016~~ the ~~Company~~reproducibility ~~entered~~of ~~into~~scientific anstudies ~~Agreement~~is ~~with~~a ~~PeproTech,~~substantial ~~Inc~~issue ofin ~~Rocky~~cellular ~~Hill~~therapy research, ~~NJ.~~from ~~Under~~drug ~~the~~discovery ~~Agreement PeproTech manufactures,~~and ~~markets~~development ~~and~~through ~~distributes~~clinical ~~the~~trials ~~Company’s~~as ~~ACSelerate~~researchers –throughout ~~Max~~the ~~cell~~world ~~growth~~continue ~~medium.~~to ~~The~~use ~~Company~~different ~~and~~protocols ~~PeproTech~~for ~~completed~~processes ~~the~~associated ~~optimization~~with ~~and~~cell ~~scale~~sample uppreparation, ~~manufacturing~~cryopreservation, ~~studies~~ and ~~the~~cold ~~licensed~~chain ~~medium~~management. isWe ~~marketed~~believe ~~under~~our ~~both~~validated ~~PeproTech’s,~~manufacturing ~~PeproGrow~~processes ~~and~~for ~~the~~our ~~Company’s~~ATCell™ ~~ACSelerate~~product ~~MAX™~~solves ~~brands~~this issue. ToThe ~~date~~samples ~~sales~~we ofproduce ~~the~~with ~~medium~~our bypatented ~~PeproTech~~platform ~~have~~and ~~been~~proprietary ~~minimal.~~products ~~The~~have ~~Company has~~proven ~~had~~purity, ~~discussions~~consistent ~~with~~viabilities ~~PeproTech~~above ~~related~~80 topercent, ~~increasing~~and ~~the~~cell ~~visibility~~identification ~~and~~panels ~~sales~~across ofsix ~~the~~biomarkers ~~medium~~ and ~~the~~proven ~~optimization~~sterility. ~~of additional~~Our ~~medium~~standardizing ~~products~~handling, ~~focused~~storage, onand ~~the~~transportation ~~differentiation~~protocols ofsubstantially ~~adult~~improve ~~stem cells that are synergistic to~~ the ~~cell~~quality ~~culture~~and ~~medium.~~reproducibility Inof ~~connection~~adipose ~~with~~tissue ~~these~~derived ~~discussions,~~stem ~~the~~cells ~~Company~~and ~~completed~~the anadipose ~~amendment~~tissue tocollection, ~~its~~processing, ~~original~~storage ~~agreement~~and ~~for~~retrieval ~~the~~which ~~expansion~~is ~~its~~designed ~~collaborative~~to ~~efforts~~permit us to ~~finalize~~accelerate ~~development~~the oftime ~~its~~line ~~differentiation~~of ~~mediums~~creating and ~~support~~processing ~~additional~~cellular ~~product~~therapy ~~development.~~products ~~The~~- ~~additional~~from ~~product~~lab ~~development project~~research ~~is currently on hold due~~ to ~~the~~regulatory ~~effects~~submission and ofFDA ~~COVID-19~~approval.

~~Cells on Ice:~~20

InEach individual ~~August~~process ~~of 2015~~has the ~~Company~~potential ~~entered~~to ~~into~~create anmultiple ~~Agreement~~autologous ~~with~~products ~~Cells~~and Onto ~~Ice,~~generate ~~Inc.~~multiple ~~(COI)~~revenue ~~located~~streams inincluding customer ~~Los~~fees ~~Angeles,~~for ~~California~~storage toof ~~process~~biomaterials. Our processing platform and ~~cryopreserve~~methodology allow the opportunity for continuing revenue ~~adipose~~streams from each tissue sample received and ~~adipose~~processed ~~derived~~including, cellular ~~samples~~therapy treatments, pure tissue storage for ~~future~~secondary procedures, ~~use~~processing, inand ~~Regenerative~~handling ~~Medicine~~fees asand aCRYO ~~contract~~storage ~~manufacturer~~and release fees.

~~On January 3,~~We 2018, the Company received a warning letter from the US FDA concerning its contract manufacturing services provided to Cells On Ice. The FDA informed the Company that the FDA has determined that autologous adipose derived cells are aleveraging ~~drug~~our ~~under~~patented ~~current~~platform ~~FDA regulations~~ and ~~guidance~~developing ~~and~~our ~~requested~~product ~~that~~portfolio ~~the Company cease shipment of ATCell under the agreement with COI and file an Investigational New Drug (IND) application for ATCell. In response~~ to ~~the~~create ~~letter~~a ~~the~~global ~~Company~~footprint ~~immediately complied with the FDA request to cease shipment~~ of ~~its~~licensed ~~ATCELL™ product within the United States and entered into discussions with the FDA concerning the filing~~laboratory ofaffiliates, ~~an IND. Since the Company~~physician’s ~~initial response to the Warning letter~~networks, it has spent considerable time and effort to develop and refine an IND filing with requisite data collection and process validation to address the concerns and observations highlighted in the letter. Specificallypatients, ~~the~~research Company fully validated it manufacturing and quality control processes which are collective referred to as Chemistry Manufacturing and Control (CMC); and filed it first Investigation New Drug Application with FDA which was accepted for review on October 22organizations, ~~2019~~ and ~~was~~licensees ~~approved~~who onpurchase ~~September~~tissue 17collection, ~~2020,Additionally, the Company developed ,implemented, qualified,~~processing and ~~validated~~storage aservices ~~complete~~or ~~redesign~~consumables offrom ~~its~~our ~~manufacturing SOPs and Quality Management program, as well as constructed new cleanroom manufacturing space in its facility in Monmouth Junction, N.J, The~~ Company ~~submitted its final responses to FDA regarding the Warning Letter which was delivered to FDA OTAT in January 2020~~. ~~The FDA has acknowledged the receipt of our response on March 31, 2020.~~

~~Additional~~Products ~~Collaborations~~and Services

~~The Company~~Therapy ~~is developing collaborations with industry and university partners. These developing relationships in their earliest stages~~Product are covered by Confidential Disclosure Agreements (CDA) and those that are more advanced may also include Material Transfer Agreements (MTA) under which the Company supplies either ATCELL™ or ACSelerate™ medium products for evaluation, testing, and the development of new cellular therapy applications. No assurance can be given that these relationships will progress to full collaborative agreements or ultimately result in new technology for future commercialization.Development

~~Intellectual~~During the Company’s ~~Property~~initial stage of developing its manufacturing protocol and products chose adipose tissue as its source material following review and experiments that included other biomaterials and cell sources such as bone marrow and peripheral blood samples. The selection of adipose tissue is based upon a number of factors including high cell density and its wide array of other cell types including precursor and immune cells that may be derived and developed as future products. Although the Company is currently focused on the development of cellular therapy products utilizing adipose derived mesenchymal cells, the platform is designed to be easily extendable to permit the acquisition and expansion of additional cellular derivatives from other biomaterials.

~~From~~A ~~the Company’s~~significant ~~formation,~~amount ~~our~~of ~~strategy~~research, ~~has~~case ~~been~~studies toand ~~invest~~anecdotal ~~time~~evidence ~~and~~has ~~capital~~been inpublished ~~intellectual~~over ~~property~~the ~~protection.~~past ~~This~~several ~~strategy~~decades isconcerning ~~intended~~the tostudy ~~strengthen~~of ~~our~~cellular ~~Company’s~~therapies ~~foundation~~for ina ~~any~~wide ~~defensive~~range orof ~~offensive~~diseases ~~legal challenge. In addition, we are developing our IP portfolio to ensure~~ and ~~enhance~~maladies ~~our~~from ~~business~~ALS ~~flexibility~~ and ~~allow~~Parkinson’s us to ~~gain~~wound ~~favorable~~healing ~~terms~~and ~~in potential future collaborative~~immunological ~~partnerships~~support. ~~with~~The ~~third~~Company, ~~parties.~~recognizing ~~Our~~that ~~intellectual~~each ~~property~~new ~~portfolio~~application ~~currently~~for ~~includes~~therapy ~~four~~approval ~~issued~~requires ~~U.S.~~a ~~patents~~standalone ~~(No.~~clinical 7study,~~989,205,~~ has refined ~~and~~its ~~Serial~~development ~~No.~~strategy ~~9,487,755,~~to ~~“Cell~~initially ~~Culture~~encompass ~~Media~~mild ~~Kits~~traumatic ~~and~~brain ~~Methods~~injury ofand ~~Use”,~~immunosuppression ~~“Systems~~as ~~and~~core ~~Methods~~targets for ~~the~~its development ~~Digestion~~strategy. ofWe ~~Adipose~~focus ~~Tissue~~our ~~Samples~~efforts ~~Obtained~~on ~~from~~expanding aour ~~Client~~product ~~for~~pipelines ~~Cryopreservation”~~based USupon ~~10,154,664~~our ~~issued~~intellectual ~~December~~property 18portfolio, ~~2018,~~collaborative ~~and~~development ~~“Business~~relationships, ~~Method~~target ~~for~~market ~~Collection~~size, ~~Processing,~~medical ~~Cryogenic Storage and Distribution of a Biologic Sample Material” US Patent Number 10~~need,~~014,079,~~ ~~issued~~disease ~~July 3~~classification, ~~2018);~~and ~~has~~international ~~additional~~licensing ~~pending~~and ~~patent applications which are detailed in the~~partnering ~~following chart:~~opportunities.

24The completion, submission and approval of our validated manufacturing platform is the culmination of the Company’s development efforts. Validation of the manufacturing platform for the study has provided the Company with the opportunity to expand its efforts and resources on the further development of its downstream intellectual property. The objective is to provide deliverable commercial cell therapy products to address patient populations with large unmet medical needs such as brain injuries and conditions that include immunologic complications. The Company’s continuing efforts in the development of additional products includes an increased focus on the recruitment of collaborative partners and the extension of our existing manufacturing capabilities to development of other adipose tissue derivative and cellular/biomaterial combination products. Leveraging our repeatable processing platform provides the Company with contributable technology and capabilities to rapidly develop clinical studies, accumulate complementary scientific data and attract strong collaborative and developmental partners.

Title	Technology	Patent / Application Number
Cell culture media, Kits, and Methods of Use	ACS cell culture media line Covers 12 types of Medium	US Patent No. 7,989,205 Issued August 2, 2011
Cell culture media, Kits, and Methods of Use	ACS cell culture media line Additional claim Granted for all 12 medium types	US Patent No. 9,487,755 Issued November 8, 2016 Continuation of US Patent No. 7,989,205
Cell culture media, Kits, and Methods of Use	ACS cell culture media line Continuation of Granted Patent covering additional improvements	US Patent Application No. 15/344,805 Continuation of US Patent No. 7,989,205
Human serum for cell culture medium for growth of human adipose stromal cells	A cell culture medium for growth of human adipose stromal cells for human and therapeutic applications	PCT/US15/68350 30 month National Phase entry date of June 31, 2017, additional International Filings for China, India, the European Union, Saudi Arabia, Israel, Brazil, Mexico, Australia and New Zealand.
A Business Method for Collection, Cryogenic Storage and Distribution of a Biological Sample Material	Company Core Tissue Collection Processing and Storage Methodology Covers CELLECT Kit, Transport and Cryopreservation Medium for ATGRAFT and ATCELL Products	US Serial No 13/194,900 Filed June 6, 2010 Patent Application Published December 5, 2013 Claims Granted US Patent No. 10,014,079. Continuation filed upon issuance.
A Business Method for Collection, Cryogenic Storage and Distribution of a Biological Sample Material	Company Core Tissue Collection Processing and Storage Methodology Continuation covering Improvements	Developed Improvement established; Divisional, Continuation-In-Part claiming priority to US Serial No. 13/194,900 imminent (PCT Application filing planned)
Systems and Methods for the Digestion of Adipose Tissue Samples Obtained From a Client For Cryopreservation	Adipose Tissue Digestion Laboratory Processing Methods	U.S. Serial No. 13/646,647 filed October 6, 2011, Claims Granted US Patent No.10,154,664 December 18,2018. Continuation filed upon issuance.
Systems and Methods for the Digestion of Adipose Tissue Samples Obtained From a Client For Cryopreservation	Adipose Tissue Digestion Laboratory Processing Methods	Developed Improvement established; Divisional, Continuation-In-Part claiming priority to US Serial No. 13/646,900 imminent (PCT Application filing planned)
Compositions and Methods for collecting, Washing, Cryoprocessing, Recovering and Return of Lipoaspirate to Physicians for Autologous Adipose Transfer Procedures”	Company Adipose Tissue Storage Platform for Cosmetic Procedures Covers the core processing adipose tissue for ATGRAFT adipose tissue dermal filler product	U.S. Serial No. 14/406,203 National Phase entry date of December 5, 2014 based on PCT/US2013/044621 European Union Application No. EPI3800847.9 China Application No. 2013800391988
Compositions and Methods for “Collecting, Washing, Cryoprocessing, Recovering and Return of Lipoaspirate to Physicians for Autologous Adipose Transfer Procedures”	Company Adipose Tissue Storage Platform for Cosmetic Procedures Covers additional claims related to ATGRAFT process not included in original application	Developed Improvement established; Divisional, Continuation-In-Part claiming priority to US Serial No. 14/406,203 imminent (PCT Application filing planned)

Our activities include supporting collaborations by providing our products and services (ACSelerate^™ and ATCELL^™) with the goal and expectation that our products and services become the basis for new cell based Regenerative Medicine and cellular therapy applications.

25Part of this strategic approach to therapy product development is to design, develop and launch new products and services that rely on our core processing technology and leverage existing products and services. Examples of this approach are the use of the CELLECT® collection kit/ box and materials to collect fresh tissue for cellular therapy sample processing, use of our patented non-animal growth medium for cell culture and use of our storage medium for cryo-storage. Management is currently pursing collaborative product development agreements with healthcare institutions, universities, and other biotech companies.

~~The~~2022 ~~Company~~Therapy ~~in-licenses the following IP:~~Pipeline

Patent Title	Use of Patent	Application #
Cosmetic compositions including tropoelastin isomorphs (wound healing)	Protein Genomics and American CryoStem (Autogenesis) collaboration	USPTO #5,726,040
Cosmetic compositions (wound healing)	Protein Genomics and American CryoStem (Autogenesis) collaboration	USPTO #6,451,326
Recombinant hair treatment compositions (wound healing)	Protein Genomics and American CryoStem (Autogenesis) collaboration	USPTO #6,572,845
Wound healing compositions and methods using tropoelastin and lysyl oxidase (wound healing)	Protein Genomics and American CryoStem (Autogenesis) collaboration	USPTO: #6,808,707
Business methods, processes and systems for collection, cryogenic storage and distribution of cosmetic formulations from an obtained stem cell based a biological (PCS)	Personal Cell Sciences and American CryoStem collaboration	USPTO application #61/588,841

The Company has developed and refined its pipeline around its flagship cellular product, ATCell™, for clinical therapeutic use. The initiation of this pipeline strategy occurred with the filing, approval and commencement of its Post-Concussion Syndrome Phase 1 clinical study. During this review process, the US FDA fully reviewed the Company’s manufacturing platform contained in the Chemistry, Manufacturing and Control section of the Investigational New Drug (IND) submission. The Company’s filing included unpublished research of ATCell™ use in an animal model as well as a report covering its safety results from a pilot study that included the treatment of more than 80 patients that received one or more treatments with the ATCell™ product that resulted in no reported adverse events.

~~Trademarks~~21

~~In addition~~1. toThe ~~patents,~~Company ~~the~~filed ~~Company~~its ~~has~~first ~~registered~~Investigational ~~the~~New ~~following~~Drug ~~trademarks~~Application (IND) with the ~~U.S.~~US ~~Patent~~Food and ~~Trademark~~Drug ~~Office:~~Administration ~~American~~(FDA) ~~CryoStem®, American~~for ~~CryoStem~~the ATCELL cellular therapy product. The IND filing is titled “~~America’s~~ATCell™ Expanded Autologous Adipose Derived Mesenchymal Stem ~~Cell~~Cells ~~Bank~~deployed via Intravenous Infusion for the Treatment of Post-Concussion Syndrome (PCS) in Retired Athletes and Military Personnel”, ®File number 19089, ~~CELLECT®~~which ~~and~~was ~~ATGRAFT™. We~~approved ~~utilize~~by ~~additional~~the ~~trademarks~~FDA ~~for~~on ~~our~~September ~~products~~17, ~~slogans~~2020. ~~and~~The ~~themes~~Company intends to beinvite ~~used~~additional developers of cellular therapies to initiate additional arms of the clinical study focused on the use of ATCELL™ for use in ~~our~~systemic ~~marketing~~inflammatory ~~initiatives,~~response ~~including,~~relief for ~~example, ACSelerate~~patient –suffering ~~MAX~~from ~~SFM™,~~systemic ~~ACSelerate-SFM™,~~diseases. ~~ACSelerate-~~A ~~LSM™~~number of these additional study targets have been identified and ~~ATCELL™~~ongoing discussions support the Company’s belief that clinical investigations can be developed and rapidly added upon completion of the new treatment protocol and outcome assessment methodologies.

2. DMD – The Company has ~~also~~completed ~~secured~~the aprotocol ~~number~~for the treatment of ~~online~~Duchene ~~domain~~Muscular ~~names~~Dystrophy ~~relevant~~and tois in final discussions with its ~~business~~Collaborative partner, ~~including~~to ~~www.americancryostem.com,~~select ~~www.acslaboratories.com~~ the principal investigator (PI) and ~~ATGRAFT~~clinical trial site selection.~~com.~~

~~Marketing~~ 3. Long COVID – The Company has completed the protocol for treatment of Long COVID and ~~Distribution~~is currently finalizing its FDA filings. We have completed, along with a government partner the clinical protocol for a new Investigational New Drug (IND) application to be filed with FDA within the next 90 days for Long COVID. According to the Centers for Disease Control and Prevention, “post-COVID conditions can be considered a lack of return to a usual state of health following acute COVID-19 illness.” In the US, following COVID recovery, it is reported that up to 30% of those afflicted, diagnosed, or treated for COVID-19 have continuing symptoms and medical complications following recovery from the acute illness.

~~The key~~4. ~~objective~~Wound ofHealing ~~our~~- ~~marketing strategy is to position American CryoStem in~~ the ~~market~~creation asof ~~the~~topical ~~“Gold Standard” for adipose tissue collection, cell processing and cryogenic storage, therapeutic~~ applications, and ~~research/commercial~~ingredients ~~uses~~used ofby ~~adipose tissue~~physicians ~~within~~in the ~~current~~wound ~~regulatory~~care ~~framework.~~and ~~The~~cosmetic ~~combination~~industries ofas awell ~~traditional~~as ~~sales~~therapeutic ~~approach~~cellular ~~supported~~applications ~~by continuous internal~~ and ~~external~~bio-materials ~~marketing programs is closely coordinated with the expansion of our laboratory processing capabilities~~development. ~~Our~~An initial ~~marketing~~ ~~efforts~~pilot ~~intend~~study toinvolving ~~disseminate~~a ~~current~~minimum ~~and future uses~~ of ~~adipose~~10 ~~tissue~~participants ~~and~~for ~~adult~~the ~~stem~~assessment ~~cells~~of ~~which~~its ~~support~~autologous ~~our~~tissue ~~business model,~~ products ~~and~~for ~~services.~~the Wewound ~~intend~~healing tomarket ~~continue~~is tounderway. ~~employ~~The ~~advertising~~Company ~~and~~is ~~social~~combining ~~media~~its ~~sales~~tissue ~~campaigns. In addition~~products, wewhich ~~plan to~~do ~~continue~~not torequire ~~utilize~~FDA ~~key leaders~~approval, ~~and~~with ~~early~~current ~~adopters~~standard-of-care inmethods ~~the medical community as a marketing resource~~ to ~~enhance~~accelerate ~~awareness of our proprietary, patented products~~ and ~~services~~improve ~~and to increase~~ the ~~number~~healing of ~~surgeons~~diabetic ~~who join our network, university~~ and ~~private collaboration~~non-diabetic ~~and~~wounds ~~consumers who use our products~~ and ~~services~~ulcers.

265. ATGRAFT™ - products include adipose tissue and cell sample processing and storage as a form of personal “bio-insurance”, and adipose tissue (fat) storage for cosmetic fat engraftment procedures. High demand for pure and natural aesthetics in fast growing cosmetic industry with non-FDA required plastic, cosmetic, and reconstructive surgical “fat filler”. The global facial fat transfer market alone is expected to growth with a CAGR of 10.7% to $4.2b by 2027.

~~We plan~~About to continue marketing programs focused on reaching plastic and cosmetic surgeons to join the initial group of providers that began to offer our services to their patients. This marketing initiative has been implemented using a traditional sales approach common to the pharmaceutical and biotechnology industries. This fundamental sales approach at the core of our marketing activities is being strategically and tactically expanded using a combination of in-house sales personnel and outside independent channels.ATCELL™

~~Our~~The Company ~~plan,~~has ~~capital~~established ~~permitting, provides for a comprehensive integrated marketing approach using various traditional~~ and ~~new~~trademarked ~~media, such~~ATCELL™ as the ~~Internet,~~brand ~~social~~name ~~media/blogging,~~for ~~video,~~its ~~print,~~line ~~TV, radio and trade shows to reach targeted potential consumers and promote awareness~~ of ~~our~~adipose ~~Company~~derived ~~and~~stem ~~our~~cell ~~branded~~ products ~~and services~~. ~~The essence of this targeted strategy~~ ATCELL™ is toa ~~reach~~purified ~~the end-users~~sample asof ~~quickly~~adipose astissue ~~possible~~derived ~~and~~from toadipose ~~accelerate~~tissue ~~the~~through ~~adoption curve of~~ our ~~products~~manufacturing ~~and~~processes ~~services.~~that Wecan ~~also~~be ~~plan~~incubated ~~to utilize outside~~and ~~marketing~~grown ~~resources~~(cultured) ~~and trade groups~~ to ~~increase~~large ~~the~~quantities ~~number~~in ofcGMP ~~surgeons willing to offer our products and services to their patients~~conditions.

~~Market~~ATCELL™ ~~Size~~Adipose Derived Mesenchymal Cells Processed and ~~Opportunities~~characterized adipose derived cells created using the Company’s proprietary, validated and patented Standard Operating Procedures (SOPs) of its manufacturing platform and the Company’s ACSelerate™ patented cell culture media. Cell lines may also be custom created for patients desiring to store their cells for their own future use in Regenerative Medicine procedures, shipped “On Demand”. Customer samples are collected by the physician in an mini liposuction procedure and delivered to the Company’s facility utilizing the CELLECT® collection system and ACSelerate™ transport medium to conform to our validated quality control standards. The Company charges its customers a fee to process newly collected client tissue samples into cellular samples.

ByATCELL’s ~~leveraging~~repeatable ~~and~~sample ~~capitalizing~~manufacturing onprocess ~~our~~is ~~proprietary~~designed ~~Adipose~~to ~~Tissue~~comply ~~Processing~~with ~~Platform,~~the werequirements ~~are~~of ~~working~~FDA to ~~address~~produce ~~multiple~~highly ~~high~~consistent ~~growths, multi-billion-dollar~~and ~~market opportunities, including those prevailing within the Regenerative Medicine, Cosmeceuticals, Medical~~validated ~~Tourism~~cellular ~~and~~products ~~Cell~~necessary ~~Culture~~to ~~Media~~achieve ~~markets~~regulatory approval. The ~~Company~~validation ~~regularly~~of ~~reviews~~our ~~independent~~manufacturing ~~market~~process ~~research~~and toquality ~~gauge~~control ~~the market dynamics~~results are of ~~its~~great ~~intended~~value ~~domestic~~in ~~and~~biomanufacturing ~~international markets~~ and toserve ~~identify~~as ~~additional areas within these markets where~~ the ~~Company’s cell~~basis ~~culture~~for ~~medium,~~approval ~~laboratory products,~~ and ~~tissue~~commercial ~~and~~product ~~cellular processing services, can be marketed, sold and/or licensed~~development.

~~Global~~The Company’s ~~Stem~~ATCELL™ ~~Cells~~cell ~~Market~~lines are cultured in our patented ACSelerate™ cell culture media. All processed samples: tissue, cells, and research materials are made available for clinical study therapies, tissue transfer or sale to research institutions. All samples are tested for sterility, disease, lifespan, and population doubling rate (PDL). Cell morphology is confirmed by (i) flow cytometry (6 markers) and (ii) tri-lineage differentiation analysis using ACSelerate™ differentiation media. Each ATCELL™ line can be further processed and differentiated allowing the Company to provide genetically matched cell types. We believe this research methodology may provide opportunities for the Company’s ATCELL™ and ACSelerate™ products to become the building blocks of additional commercial application development.

A report from Transparency Market Research (TMR) forecasts that the global stem cells market is expected to register a healthy CAGR of 13.8% during the period from 2017 to 2025 to become worth US$270.5 bn by 2025. Depending upon geography, the key segments of the global stem cells market are North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. At present, North America dominates the market because of the substantial investments in the field, impressive economic growth, rising instances of target chronic diseases, and technological progress. As per the TMR report, the market in North America will likely retain its dominant share in the near future to become worth US$167.33 bn by 2025.22

A report published by Markets and Markets Research in 2017 titled “Cell Expansion Market by Product (Reagent, Media, Flow Cytometer, Centrifuge, Bioreactor), Cell Type (Human, Animal), Application (Regenerative Medicine & Stem Cell Research, Cancer), End user (Research Institute, Cell Bank) - Global Forecasts to 2021”. The ~~report states: The global cell expansion market~~Company isbelieves ~~expected~~it tocan ~~reach~~earn ~~USD~~additional ~~18.76~~fees ~~Billion~~based byupon ~~2021~~storage ~~from~~and ~~USD~~retrieval ~~8.34~~fees ~~Billion in 2016 at a CAGR of 17.6%. Geographically, the cell expansion market is dominated by North America, followed by Europe, Asia,~~ and ~~the~~for ~~Rest~~future ofproduct ~~the World (RoW)~~creation. ~~Growth~~Cell inculturing ~~the North American~~and ~~segment~~differentiation ismay ~~primarily~~be ~~driven~~performed byupon ~~increasing~~receipt ~~incidence~~ of ~~chronic diseases in~~ the ~~North~~raw ~~American~~tissue ~~countries.~~sample ~~According to the American Medical Association and the American Medical Group Association, more than 50% of Americans suffered from one~~ or ~~more~~at ~~chronic~~any ~~diseases in~~time ~~2012;~~on ~~the~~a ~~number~~previously ofprocessed ~~Americans suffering from chronic diseases was around 133 million in 2005~~ and ~~this figure is expected to~~cryopreserved ~~reach~~tissue ~~around~~or ~~157~~master ~~million~~cell ~~by 2020~~sample. ~~With~~ATCELL™ ~~this~~has ~~significant~~shown ~~growth~~that init ~~the~~is ~~number~~ideally ofsuited ~~patients~~for ~~suffering~~differentiation ~~from chronic diseases, the~~into ~~market~~additional ~~for~~ cell ~~expansion~~types is(bone, ~~expected~~cartilage, toetc.) ~~grow~~utilizing inour ~~this~~patented ~~region~~ACSelerate™ inline ~~the~~of ~~coming years~~differentiation mediums.

~~Regenerative~~The ATCELL™ ~~Medicine~~processing, ~~Market~~products and services are incorporated into multiple granted patents including the granted claim of: “Systems and Methods for the Digestion of Adipose Tissue Samples Obtained from a Client for Cryopreservation” US 10,154,664 issued December 18, 2018, and “Business Method for Collection, Processing, Cryogenic Storage and Distribution of a Biologic Sample Material” US Patent Number 10,014,079, issued July 3, 2018. The ACSelerate™ Medium products are incorporated into our granted patents “Cell Culture Media, Kits and Methods of Use”; US Patent No. 7,989,205 issued August 2, 2011, with additional claims granted in US Patent No. 9,487,755 granted November 8, 2016.

~~The Global~~Tissue ~~Translational Regenerative Medicine market is expected to grow significantly over the forecast period. The Global Translational~~Processing Regenerative Medicine market was valued at $5.8bn in 2016. Vision gain forecasts this market to increase to $14.5bn in 2021. The market is estimated to grow at a CAGR of 19.9% in the first half of the forecast period and ~~17.7%~~Storage ~~from 2016 to 2027.~~Services:

27ATGRAFT™–An adipose tissue (fat) collection, processing and storage solution used by cosmetic and plastic surgeons to provide their patients with multiple tissue transfer and storage options. The ATGRAFT™ service, through one liposuction procedure, allows individuals to prepare for multiple future cosmetic or regenerative procedures by using their own stored adipose tissue as natural biocompatible filler, or for multiple cellular therapy applications over time without the trauma of further liposuctions. Many physicians currently offering tissue transfer or “stem cell (SVF)” therapies are required to perform a concurrent tissue harvest for each transfer or procedure which increases the opportunities for infection at the harvest site and the development of long-term complications related to the formation of scar tissue (stroma) at the harvest site(s).

~~Cell~~ATGRAFT™ ~~Culture~~supported ~~Market~~procedures include; breast reconstruction, layered augmentations, buttocks enhancement, volume corrections of the hands, feet, face and neck areas that experience significant adipose tissue (fat) volume reduction as we age. ATGRAFT™ is processed and stored utilizing our cGMP standards so that any stored fat tissue sample may in the future be further processed to create, “ATCELL™”, for use in Regenerative Medicine applications. The ATGRAFT™ service is included in our granted patent “Business Method for Collection, Processing, Cryogenic Storage and Distribution of a Biologic Sample Material” US Patent Number 10,014,079, issued July 3, 2018.

~~Cell~~The ~~Culture~~Company’s ~~Market Global~~charges ~~Forecast~~processing tofees ~~2023, according~~for toATGRAFT™ ~~“marketsandmarkets”~~tissue ~~the~~processing ~~cell~~and ~~culture~~minimum ~~market~~annual isstorage ~~expected~~fees tobased ~~reach~~on ~~USD~~the ~~$26~~volume of tissue processed.28 ~~Billion~~These byprocessing ~~2023~~and ~~from~~storage ~~USD $15.32~~fees ~~Billion~~may inbe ~~2018,~~paid atby athe ~~CAGR~~collecting/treating ofphysician 11or the consumer.~~4%.~~ ~~Growth~~The inCompany earns ~~this~~additional ~~market~~fees isupon ~~driven~~sample byretrieval, for the ~~growing~~thawing, ~~number~~packaging and shipment of ~~regulatory~~the ~~approvals~~stored ~~for cell~~samples ~~culture-based~~to ~~vaccines,~~the ~~increasing~~physician ~~demand~~or clinical “point-of-care” for ~~monoclonal~~immediate ~~antibodies~~use ~~(mAbs)~~upon receipt. Additionally, ~~funding~~physicians ~~for~~may ~~cell-based~~request ~~research,~~that ~~growing~~any ~~preference~~stored ATGRAFT™ ~~for~~tissue ~~single-use~~sample ~~technologies,~~of ~~and~~25ml or greater be reprocessed utilizing the ~~launch~~Company’s ofATCELL™ ~~advanced~~and ~~cell~~Autokine-CM™ processing ~~culture~~to create topical therapy or cosmetic products, on-demand.

~~Development~~Laboratory Products; ofCulture ~~Regional U.S.~~Medium, ~~Markets~~and Manufacturing Services

~~Physician~~CELLECT® ~~Network~~Collection, Transportation, and Storage System – An unbreakable “chain of custody” solution to collect and deliver tissue samples utilizing proprietary and patent pending methods and materials. The CELLECT® service is the required platform for the collection and transportation of live adipose tissue samples to American CryoStem Corporation’s processing facility. Tissue collected and transported in our CELLECT kits is monitored through the transportation process to assures the highest viability upon laboratory receipt. The CELLECT® system incorporates our ACSelerate–TR™ transport medium to support the health of the tissue during transport. The ability to support the health of the collected tissue using our proprietary material and services greatly enhances our highly consistent and repeatable manufacturing and processing protocol. The CELLECT® service is included in our granted patent “Business Method for Collection, Processing, Cryogenic Storage and Distribution of a Biologic Sample Material” US Patent Number 10,014,079, issued July 3, 2018.

~~The~~American CryoStem ~~Company~~is ~~continues~~the tofirst ~~develop~~tissue ~~relationships~~bank to ~~leverage~~globally ~~our~~incorporate ~~products~~through ~~and~~its ~~services~~CELLECT® ~~through~~service ~~existing~~the ~~cosmetic~~International ~~surgery~~Blood Banking identification, labeling and ~~regenerative medicine~~product ~~practices~~identification ~~The~~coding ~~Company~~system. ~~continues~~This ~~its~~labeling ~~efforts~~system tois ~~develop~~an acceptable machine-readable labeling standard, product description, and ~~expand~~bar-coding ~~its~~system ~~network~~for ofFDA ~~individual~~Center ~~physicians~~for Biologics Evaluation and ~~surgeons~~Research ~~seeking~~under 21 CFR 606.12(c)13. toAmerican ~~adopt~~CryoStem ~~the~~conforms ~~Company’s~~to ~~products~~this ~~and~~standard ~~services~~in ~~focusing~~its onlaboratory ~~surgeons~~facility ~~performing~~and ~~liposuction,~~all cellular and tissue ~~transfer~~products ~~and~~produced ~~regenerative~~at the facility ~~procedures~~carry ~~involving~~our ~~the~~W3750 ~~use~~ICCBBA offacility ~~adipose~~identifier ~~tissue.~~allowing ~~The~~any ~~Company~~hospital, ~~intends~~clinic, tolaboratory ~~expand~~and ~~its~~regulator ~~efforts~~worldwide to ~~medical~~identify ~~professionals~~the ~~interested~~origin inand ~~Regenerative~~obtain ~~Medicine~~additional ~~applications~~information ~~utilizing~~on ~~ADSCs~~any tosample ~~establish~~produced ~~itself~~at asan aAmerican ~~primary~~CryoStem ~~source~~laboratory offacility. ~~collection,~~The ~~processing~~Company ~~and~~requires ~~preparation~~use of ~~cellular~~this ~~therapies~~standard asin ~~they~~all ~~are~~laboratories ~~developed~~that ~~and~~license ~~approved~~or ~~for~~utilize ~~patient~~our ~~use by the FDA~~technology.

~~Development of International Markets~~23

~~International~~ACSelerate™ ~~Licensing~~Cell ~~Program~~Culture Media Products – ~~Globally,~~Manufactured ~~many~~patented ~~jurisdictions~~cell ~~outside~~culture ~~the~~media USproducts ~~permit~~for ~~the~~growing ~~use~~human ofstromal ~~adipose~~cells (including ~~tissue~~all ~~based~~cells ~~cellular~~found ~~therapies~~ in human skin, fat and ~~regenerative~~other ~~medicine~~connective ~~applications~~tissue). ~~The~~Certain of the Company’s ~~has~~ACSelerate™ cell ~~received~~culture ~~numerous~~media ~~inquiries~~lines ~~concerning~~are ~~the~~available ~~sale~~in oranimal ~~licensing~~serum offree, ~~our~~which ~~products~~ may be suitable for human and ~~services~~therapeutic uses, or in ~~these~~a ~~jurisdictions~~low serum version for application development and research purposes. The ~~Company~~patented ~~believes~~ACSelerate™ ~~that~~cell culture ~~the~~media ~~inquiries~~line(s) were specifically developed to ~~date~~address ~~are~~increasing aindustry ~~result~~demand for fetal bovine serum-free cell culture products. The use of ~~the~~fetal ~~global~~bovine ~~boom~~serum (FBS) and other animal products in ~~Medical~~cellular therapy application development and manufacture ~~Tourism~~raises concerns and generates debates within the ~~slow~~scientific ~~pace~~and ofregulatory community relating to potential human/animal cross-contamination. These same concerns may lead to additional expensive and expansive testing and documentation requirements with the FDA during the application and approval ofprocess for new cellular therapies ~~and~~manufactured ~~regenerative~~with ~~medicine~~or ~~applications~~containing inanimal ~~the~~or USanimal derived products. FDA Toconcerns ~~address~~are ~~these~~evidenced in their Guidance’s and Guidelines regarding cellular therapy involving human cells, tissues ~~inquiries~~and products (HCT/Ps) published and tomaintained ~~expand~~by the ~~Company’s~~FDA. ~~sales~~Management believes that eliminating or greatly reducing FBS in cellular manufacturing, ~~marketing~~applications and ~~branding~~products ~~opportunities~~can ~~the~~eliminate ~~Company~~or ~~has~~ease ~~designed~~these scientific and isregulatory ~~offering~~concerns and may prove to be a anwinning ~~International~~strategy ~~Licensing~~for ~~Program~~cellular therapy application developers seeking FDA approval.

The Company ~~program~~entered isinto ~~designed~~a ~~to permit the~~ licensing ofand ~~the~~manufacturing ~~Company’s~~agreement ~~products~~with ~~and~~PeproTech ~~services~~(April to4, ~~organizations~~2016) ~~that~~a ~~meet~~life ~~the~~sciences ~~Company’s financial~~company ~~and~~formed ~~technical~~in ~~criteria~~1988. ~~The~~PeproTech is ~~licensing~~the ~~program~~trusted ~~allows~~source for athe ~~variety~~development and manufacturing of ~~business~~high ~~relationship~~quality ~~including~~cytokine ~~franchising,~~products ~~partnering~~ for the life-science and ~~joint~~cell ~~venturing~~therapy markets. PeproTech ~~Marketing~~has ~~efforts~~grown tointo ~~date~~a ~~have~~global ~~been~~enterprise towith ~~clinics,~~state-of-the-art ~~physician~~manufacturing ~~and~~facilities ~~hospitals~~ in ~~foreign~~the ~~jurisdictions~~US, ~~capable~~and offices ofaround ~~rapidly~~the ~~building~~world. orWith ~~committing~~over ~~the~~2,000 ~~appropriate~~products ~~facilities~~PeproTech ~~and~~has ~~personnel~~developed toand ~~create~~refined ~~the~~innovative ~~required~~protocols ~~laboratory facilities~~ to ~~operate the~~ensure ~~CELLECT®~~quality, ~~ATGRAFT™~~ reliability and ~~ATCELL™~~consistency. ~~services~~The inlicensed ~~their~~medium ~~local~~is ~~market.~~marketed ~~Strategically,~~under ~~the~~both ~~Company~~PeproTech’s ~~international~~ ~~licensees~~PeproGrow ~~will~~and ~~maintain~~ the ~~branding of the~~ Company’s ~~services~~ACSelerate ~~along the lines of the “Intel Inside”~~MAX ~~branding program~~brands.

~~Qualified~~On August 2, ~~Licensees~~2011, ~~can~~the ~~quickly~~Company ~~take~~was ~~advantage~~issued ofUS ~~the~~patent ~~rapidly~~number ~~expanding~~7,989,205 ~~opportunity~~for to“Cell ~~collect,~~Culture ~~process~~Media, ~~store~~Kits and ~~culture~~Methods ~~individual~~of ~~regenerative~~Use.” The granted ~~cell~~claims ~~samples~~include media variations for ~~their~~cellular ~~clients~~differentiation ~~with~~of ~~the~~ADSCs ~~comfort~~into osteoblasts (bone), chondrocytes (cartilage), adipocytes (fat), neural cells, and ~~confidence~~smooth ~~that~~muscles ~~they~~cells ~~are~~in ~~providing~~both ~~services~~HSA ~~that~~medium ~~have~~grade ~~been~~and ~~developed~~FBS to(research) ~~conform~~grade. This patent covers both non-GMP toresearch USgrades ~~FDA~~and ~~standards~~cGMP grades suitable for cell culture of adipose-derived stem cells. ~~Core~~Additionally, toon November 8, 2016, the Company ~~relationship~~was isgranted additional claims from the ~~developed~~continuation ~~proprietary~~U.S. ~~patented~~Serial ~~and~~No. ~~patent~~13/194,900 ~~pending~~issued ~~processing~~as ~~and~~a ~~laboratory~~new Patent Serial No. 9,487,755. ~~operational~~Prior ~~methodologies~~to ~~contained~~the inissuance ~~our~~the ~~Standard~~Company ~~Operating~~filed ~~Procedures,~~a ~~Training,~~continuation ~~and~~in ~~Continuous~~part ~~Quality~~(CIP) ~~Management,~~containing ~~Testing Program,~~additional ~~and~~claims ~~Laboratory~~related ~~Operations~~to ~~manuals~~our ongoing media development.

~~Licensing~~The Company ~~programs~~supports ~~may~~its bemarketing ~~initiated~~efforts ~~through~~by amaking ~~letter~~ATCELL™ ofsamples ~~intent~~available ~~(LOI)~~for ~~agreement~~research ~~between~~purposes ~~the Company~~ and ~~the prospective licensee. This LOI~~for ~~agreement~~internal isproduct ~~designed~~development ~~for~~through ~~due~~our ~~diligence~~collaborative and ~~facility~~partnering ~~qualifications purposes~~programs. ~~The~~We ~~Company~~believe ~~may~~these ~~receive~~cell anlines ~~initial~~may ~~fee~~be ~~under~~suitable ~~the~~for ~~agreement~~use ~~which~~by ~~may~~private orresearchers ~~may~~and ~~not~~universities befor ~~credited~~use ~~toward~~in ~~future~~pre-clinical ~~royalty~~trial ~~payments.~~studies ~~Following~~and ~~evaluation~~in-vitro ofresearch. ~~the~~We ~~prospective~~also ~~licensee~~believe ~~the~~that the Company’s ~~will~~ability ~~enter~~to ~~into~~provide athese ~~final~~materials ~~Agreement~~for ~~which~~these ~~outlines~~research ~~all~~and ~~upfront~~development ~~fees~~collaborators, ~~minimum~~partners ~~royalties,~~and ~~consumable~~other ~~purchase obligations~~third ofparties extends the ~~Licensee~~Company’s ~~and~~ability ~~may~~to ~~contain~~become a ~~minimum~~primary ~~annual~~source ~~license~~of ~~fee~~clinical grade materials and services necessary to support approved applications and treatments.

~~Significant to~~The ~~our~~Company ~~international~~has ~~development~~created ~~activities is the global expansion of the American CryoStem branded services and patented products,~~several asversions ~~well as the expansion~~ of ~~the~~its ~~Company’s~~ACSelerate™ ~~services,~~cell ~~technology~~culture ~~and~~media ~~products as the core platform to implement cellular therapies and regenerative medicine.~~including:

~~CRYOVIVA (Thailand)~~· ~~Ltd~~ACSelerate-MAX™ -xeno serum free cell culture media,

~~On August~~· ~~23, 2021the Company entered into an agreement to license its ATGRAFT~~ACSelerate-SFM™ ~~and ATCELL™~~- ~~adipose~~animal ~~tissue~~serum ~~(fat) processing~~free ~~and~~cell ~~storage~~culture ~~technologies to CRYOVIVA (Thailand) Ltd.~~media, established in 2007, (“CRYOVIVA”) a Bangkok, Thailand based Cord Blood processing and storage facility. CRYOVIVA, Thailand, offers collection, processing and storage of Cord Blood derived biologics to patients throughout Thailand and Southeast Asia.

28· ACSelerate-LSM™ - low FBS (0.05%) cell culture media,

~~American CryoStem~~· ~~licensed to CRYOVIVA (Thailand) Ltd., the rights to utilize the Company's Standard Operating Procedures (SOP's) to create and market the Company's ATGRAFT~~ACSelerate-CY™- tissue storage service and ATCELL™ adipose derived stem cell processing and storage services in Thailand. The financial terms include the payment of certain training fees and, a percentage of the gross revenue subject to annual minimum payments generated from our products. Additionally, the Agreement calls for ~~the~~differentiation ~~purchase~~ of ~~CRYO consumable products required for ATGRAFT™ and~~ ATCELL™ ~~sample~~into ~~processing~~chondrocytes ~~including CRYO's ACSelerate™ non~~(ATCELL-~~DMSO cryogenic tissue storage media, transportation media, Cellect~~CY™ ~~tissue collection kit~~), ~~and ACSelerate – Max™ cell culture medium.~~

~~The~~· ~~Company has~~ACSelerate-OB™- ~~been assisting CRYOVIVA with the development of their branding and marketing campaign~~ for ~~Thailand~~differentiation ~~and providing technical assistance and support for their import~~ of ~~consumables~~ATCELL™ ~~purchased~~into ~~from~~osteoblasts the Company. CRYOVIVA had originally scheduled the launch of its marketing campaign for the first quarter of 2020. Based upon communication with the management team of CRYOVIVA, the scheduled launch of CRYOVIVA’s marketing plan has been delayed due to the COVID 19 outbreak, response and lockdown in Thailand and the US.(ATCELL-OB™)

~~Due~~· ~~to the~~ACSelerate-AD™ ~~continuing global impact from COVID~~-~~19,~~ ~~CRYOVIVA has greatly reduced their and operations and put their marketing plans on hold in 2021 and the Company has generated minimal revenues. The Company cannot at this time estimate the timing~~ for ~~Thailand to~~differentiation ~~restart~~of ~~operations~~ATCELL™ ~~due~~into toadipocytes ~~COVID~~(ATCELL-~~19 and associated lockdowns in Thailand.~~AD™)

~~Baoxin Asia~~· ~~Pacific~~ACSelerate-MY™- ~~Biotechnology~~for ~~(Shenzhen)~~differentiation ~~Co.,~~of ~~Ltd~~ATCELL™ into myocytes (ATCELL-MY™)

~~On July~~· ~~12,~~ACSelerate-CP™- ~~2018,~~non-DMSO ~~The Company announced the national launch of CRYO's ATGRAFTTM tissue collection, processing, and storage technology by Baoxin Asia Pacific Biotechnology~~ (~~Shenzhen)~~Dimethyl ~~Co. Ltd. ("Baoxin"~~Sulfoxide) incellular ~~China.~~cryopreservation The management team traveled throughout south east China with the management and marketing team of Baoxin to present the ATGRAFTTM platform to leading plastic and cosmetic surgery hospitals in Shenzhen, Nanning, Guangzhou, Guangxi and Changsha. The China launch activities are in support of the Company's previously announced licensing and supply agreement with Baoxin, under which Baoxin will pay the Company a minimum annual guarantee against a fixed fee per process and purchase certain necessary consumables from CRYO required for the collection, processing and storage of the collected adipose tissue. Under the terms of the Agreements signed in Fiscal 2018, the Company invested in and currently holds five percent (5%) of Baoxin shares. Additionally, Mr. Arnone and Mr. Dudzinski were elected to serve as Directors of Baoxin during their visit to Shenzhen, China. During 2019 Mr. Arnone resigned from the board of Baoxin.media

~~We have~~· ~~been~~ACSelerate-TR™- ~~informed~~sterile bytransportation ~~the~~medium ~~Baoxin’s~~designed ~~Chairman~~to ~~and~~maintain ~~CEO~~the ~~that~~viability ~~they~~of ~~completed~~the ~~their~~tissue ~~new~~during ~~facility located in Shenzhen, China. The Company cannot at this time estimate~~ the ~~timing~~shipment ~~for~~of ~~China~~adipose totissue ~~restart operations due~~ to ~~COVID-19~~our ~~and~~processing ~~associated lockdowns in China~~facility.

~~CellSource~~The Company continues to optimize additional versions of ACSelerate™ media that may be necessary for use in future applications. On December 31, 2014 the Company filed a patent application for an advanced medium formulation titled Human Albumin ~~LTD~~Serum for Cell Culture Medium for Growth of Human Adipose Stromal Cells. –(US ~~Tokyo~~Serial No. 62/098799) representing the initial results of this ongoing optimization program. On December 31, 2015, the Company converted the provisional patent application to an international PCT filing (PCT/US/68350) under the title Human Serum for Cell Culture for Growth of Human Adipose Stromal Cells. To date the patent has also been filed in the following additional countries: China and Hong Kong, India, Mexico, Brazil, the European Union, US, Japan, Thailand, Brazil, Russia, Australia, New Zealand, Canada, and Saudi Arabia.

In the second quarter of 2015 the Company entered into negotiations with CellSource, LLC in Tokyo, Japan for the licensing of its ATGRAFT™ products and services and on June 2, 2015 the Company and Cell Source entered into an initial term sheet licensing the ATGRAFT™ technology to CellSource for Japan. The non-exclusive agreement expired in June of 2020 and has not been renewed.24

~~Health~~Contract ~~Information~~Manufacturing, ~~Technology~~Autokine-CM® ~~Company~~Anti-Aging, ~~LTD~~Autologous Skin Care Product Line– ~~Hong~~Under ~~Kong~~agreement with Personal Cell Sciences Corp. (PCS), we manufacture the key ingredient Autokine-CM® (autologous adipose derived stem cell conditioned medium) for PCS’ U-Autologous™ anti-aging topical formulation. Every product is genetically unique to the patient and ~~Shenzhen~~custom blended, ~~China~~deriving its key ingredients from the individual client’s own adipose derived stem cells. The Company provides its CELLECT® Tissue Collection service to collect the required tissue to manufacture the U-Autologous™ product and processes it under the same Standard Operating Procedures (SOP’s) that it developed for the ATGRAFT™ and ATCELL™ processing services utilizing ACSelerate™ cell culture media. The Company receives collection, processing and storage fees and earns a royalty on all U-Autologous product sales. The utilization of the Company’s core services in its contract manufacturing relationships provides opportunities for the Company to promote ATGRAFT™ and ATCELL™ products.

~~On June 30, 2014 the Company granted Health Information Technology Company, LTD (“HIT”) exclusive rights to utilize the Company~~CRYO’s ~~Standard~~contract ~~Operating~~manufacturing ~~Procedures~~services ~~(SOP’s)~~can tobe ~~market~~extended ~~the~~to ~~Company’s~~develop ~~ATGRAFT™~~custom ~~tissue~~and/or ~~storage~~white ~~service~~label inproducts ~~Hong~~and ~~Kong. The~~services ~~Agreement calls~~ for ~~upfront~~both ~~fees,~~local ~~royalties~~ and ~~the purchase by HIT of certain consumables manufactured by the Company. In~~ ~~2017~~global ascosmetic ~~part~~and ofregenerative ~~the~~medicine ~~Company’s~~companies, ~~transaction with Baoxin~~physicians, ~~HIT~~wellness ~~and~~clinics ~~the Company agreed to transfer certain product~~ and ~~distribution rights~~medical ~~granted to HIT under its 2014 agreement to Baoxin~~spas. The Company ~~was~~intends ~~paid a fee in the transaction and was provided with an initial ownership position in a planned Regenerative Treatment Center~~ to ~~be established by HIT in Hong Kong. The HIT license~~expand ~~has~~its ~~been~~relationships ~~extended~~and ~~per~~contract ~~the~~manufacturing ~~terms~~regionally ofthrough ~~Schedule~~its Bphysician ofnetworks ~~the~~and ~~Term~~globally ~~Sheet,~~through ~~dated~~its ~~June 30, 2014, for an additional 3 year period to June~~International ~~30,~~Licensing ~~2023~~Program.

29International Licensing Program – COVID RISK FACTOR

~~Corporate~~The development ~~Information~~of our products could be disrupted and materially adversely affected in the future by a pandemic, epidemic or outbreak of an infectious disease like the recent outbreak of COVID-19. For example, as a result of measures imposed by the governments in regions affected by COVID-19 businesses have been suspended due to quarantines or “stay at home” orders intended to contain this outbreak. Furthermore, many patients had concerns about making hospital and physician office visits for fear of contracting the virus. These factors may have direct adverse impact on our ability to enroll participants in our clinical trial programs. In addition, travel restrictions, stay-in-place orders and other measures including information control. specifically in Asian countries, such as China, imposed by governmental agencies and health organizations to prevent the spread of COVID-19 and protect the citizenry, have had an adverse impact on the flow of information, goods and services between nations. The supply disruptions have resulted in shortages of goods and materials. This could also impact our ability to produce the products we need to conduct our clinical trials. In addition, these measures have resulted in delays to the regulatory process, which may also have an adverse impact on our business. We are still assessing our business plans and the impact COVID-19 may have on our ability to advance the development of our drug candidates or to raise financing to support the development of our drug candidates, we cannot assure you that we will be able to avoid part or all of any impact from the spread of COVID-19 or its consequences, including downturns in business sentiment generally or in our sector in particular.

~~Our~~The Company ~~principal~~is ~~executive~~aware ~~offices~~many ~~are~~jurisdictions ~~located~~outside atthe 1US ~~Meridian~~currently ~~Road,~~permit ~~Eatontown,~~cellular ~~New~~therapies ~~Jersey07724~~ and ~~our~~regenerative ~~telephone~~medicine ~~number~~applications. isThe ~~(732)~~Company has ~~747-1007~~targeted these jurisdictions for licensing its technologies to local operators and facilities and receives numerous unsolicited international inquiries concerning the sale or licensing of our ~~fax~~SOPs, ~~number~~culture ismedium ~~732-747-7782.~~products ~~Our~~and ~~website~~tissue isbanking ~~www.americancryostem.com.~~services for Weuse ~~also~~in ~~lease~~the Regenerative Medicine and ~~operate~~Medical Tourism Markets. The Company believes that the inquiries to date are a ~~tissue~~result ~~processing~~of the ~~laboratory~~global boom in ~~Monmouth~~Medical ~~Junction~~Tourism, ~~New~~Regenerative ~~Jersey~~and atPersonalized 7Medicine ~~Deer~~and ~~Park~~the ~~Drive~~slow pace of approval of cellular therapies and regenerative medicine applications in the US. To address the Company’s sales, ~~Monmouth~~marketing ~~Junction~~and branding opportunities globally, NJthe ~~08852~~Company has included in its international licensing program metrics to vet potential partners and collaborators and their facilities. To date we have licensed our technologies in Hong Kong, China, and Thailand.

~~Available~~The ~~Information~~Company believes it can take advantage of the significant growth of the global cellular therapy market through its international licensing and marketing efforts. A recently published study by Transparency Market Research predicts the global market for stem cells is expected to register a healthy CAGR of 13.8% during the period from 2017 to 2025 to become worth US$270.5 bn by 2025.

~~We file electronically with the U.S. Securities and Exchange Commission~~ (SEC) our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934. The public can obtain materials that we file with the SEC through the SEC’s website at httphttps://www.~~sec~~transparencymarketresearch.~~gov or at the SEC’s Public Reference Room at 100 F Street, NE, Washington, DC 20549. Information on the operation of the Public Reference Room is available by calling the SEC at 800~~com/pressrelease/stem-~~SEC~~cells-~~0330~~market.htm)

~~Going Concern~~China

AsOn ofJuly 12, 2018 the ~~date~~ Company announced the national launch of ~~this~~its ~~report~~ATGRAFTTM tissue collection, ~~there~~processing isand ~~substantial~~storage technology ~~doubt~~by ~~regarding~~Baoxin ~~our~~Asia ~~ability~~Pacific Biotechnology (Shenzhen) Co. Ltd. (“Baoxin”) in China. The Company’s management team traveled throughout southeast China with the management and marketing team of Baoxin to ~~continue~~present asthe aATGRAFTTM platform to ~~going~~leading ~~concern~~plastic asand wecosmetic ~~have~~surgery ~~not~~hospitals ~~generated~~in ~~sufficient~~Shenzhen, Nanning, Guangzhou, Guangxi and Changsha. Additionally, Mr. Arnone ~~cash~~and ~~flow~~Mr. toDudzinski ~~fund~~attended ~~our~~the ~~proposed~~signing ~~business~~of investment documents between Baoxin and Chinese government and Banking officials in Shenzhen, China as well as the official launch presentation and evening gala hosted by Baoxin in Shenzhen.

The ~~accompanying~~China launch ~~consolidated~~activities ~~financial~~were ~~statements~~in ~~have~~support ~~been~~of ~~presented~~the inCompany’s ~~accordance~~licensing ~~with~~and ~~generally~~supply ~~accepted~~agreement ~~accounting~~with ~~principles~~Baoxin, inunder ~~the U.S.,~~ which ~~assume~~Baoxin ~~the~~agreed ~~continuity~~to of pay the Company as a ~~going~~minimum ~~concern.~~annual ~~However,~~guarantee ~~the~~against ~~Company~~a ~~has~~fixed ~~incurred~~fee ~~significant~~per ~~losses~~process ~~since~~and ~~its inception~~purchase ~~which~~certain ~~raises~~necessary ~~substantial~~consumables ~~doubt~~from ~~about~~CRYO required for the ~~Company’s~~collection, ~~ability~~processing toand ~~continue~~storage asof athe ~~going~~collected ~~concern~~adipose tissue. ~~Management~~Under ~~has~~the ~~made this~~terms ~~assessment~~of ~~for~~the Agreements signed in Fiscal 2018, the ~~period~~Company ~~one~~invested ~~year~~in ~~from~~and ~~date~~currently ofholds ~~the~~five ~~issuance~~percent (5%) of ~~these~~Baoxin ~~financial~~shares. ~~statements~~Additionally, Mr. ~~Management’s~~Arnone ~~plan~~and ~~with~~Mr. Dudzinski ~~regard~~were elected to ~~this~~serve ~~matter~~as isDirectors toof ~~continue~~Baoxin during their visit to ~~fund~~Shenzhen, ~~its~~China. ~~operations~~Mr. ~~through~~Arnone ~~fundraising~~resigned ~~activities~~as a board Member of Baoxin in ~~fiscal~~2019. ~~2021~~Mr. Dudzinski continues to ~~fund~~serve ~~future~~the ~~operations and~~Company’s ~~business~~interests ~~expansion~~as a board member of Baoxin.

Our plans with regard to these matters encompass the following actions: (i) obtaining funding from new investors to alleviate our working capital deficiency, and (ii) implementing a plan to generate sales of our proposed products. Our continued existence is dependent upon our ability to resolve our liquidity problems and achieve profitability in our current business operations. However, the outcome of management’s plans cannot be ascertained with any degree of certainty. Our financial statements do not include any adjustments that might result from the outcome of these risks and uncertainties.25

~~Results~~During Fiscal 2020 and 2021, due to the continuing effects of ~~Operations-~~the ~~Three~~COVID ~~Months~~pandemic and associated government policies and regulations Baoxin suspended its processing activities. Baoxin is an emerging biotechnology company in China that has relied to date on investment to fund operation and build their facilities, as is typical for these types of companies. During 2020 and 2021, Baoxin developed a new state of the art facility with sizable clean rooms and biomaterial storage space. The facility was completed in February 2021 and officially opened in May of 2021. Unfortunately, due to the continued effects of COVID and the appearance of new variants Baoxin has been unable to restart operations and its marketing programs.

~~The~~Hong Company’s revenue for the quarter ended June 30, 2021, decreased to $129,800 versus $138,436 in the same period of Fiscal 2020. Licensing Revenue decreased to $125,000 compared to $131,666 in Fiscal 2020.Kong

~~Operating~~On June ~~expenses~~30, ~~increased~~2014 tothe ~~$570~~Company granted Health Information Technology Company,~~992~~ ~~for~~LTD (“HIT”) exclusive rights to utilize the ~~quarter~~Company’s Standard ~~ended~~Operating ~~June~~Procedures ~~30,~~(SOP’s) ~~2021,~~to ~~from~~market ~~$133,851~~the Company’s ATGRAFT™ tissue storage service for Hong Kong. The Agreement calls for upfront fees, royalties and the ~~same~~purchase ~~period~~by inHIT ~~Fiscal~~of ~~2020.~~certain ~~The~~consumables manufactured by the Company. The ~~incurred~~Company ~~increases~~and inHIT ~~its~~reached ~~Research~~further ~~and~~agreement ~~Development~~to ~~efforts~~extend ~~due~~their relationship on a non exclusive basis to ~~the~~include ~~initiation~~HIT’s ofcord ~~the~~blood laboratory ~~Company~~located in Shenzhen, Guangdong Province, one of China’s ~~FDA~~most ~~approved~~successful ~~clinical~~Special Economic Zones. The HIT agreement ~~study~~includes initial upfront fees and royalty payments for ~~Post-Concussion~~predetermined ~~Syndrome~~gross revenue volumes. HIT will also purchase CRYO ACSelerate™ storage media, CELLECT™ collection and ~~Professional~~transportation ~~Fees~~kits ~~(primarily~~as ~~legal)~~well toas ~~prepare~~other American CryoStem products necessary for anclinical adipose ~~upcoming~~tissue ~~financing,~~processing and ~~stock~~storage ~~compensation~~at ~~expense~~the Shenzhen facility. The final master licensing agreement is for a period of 5 years with renewal options and was executed between the parties on September 24, 2014. The HIT license has been extended per the terms of Schedule B of the Term Sheet, dated June 30, 2014, for an additional 3-year period to June 30, 2023.

~~Administrative~~In 2017 ~~expenses~~as ~~decreased~~part toof ~~$95,589~~the ~~from~~Company’s ~~$108~~transaction with Baoxin,~~384,~~ ~~due~~HIT toand the Company’s ~~reduced~~agreed ~~use~~to transfer certain product and distribution rights granted to HIT under its 2014 agreement to Baoxin. The Company was paid of ~~consultants~~fee of US$100,000 in the transaction and was provided with an initial ownership position in a planned Regenerative Treatment Center to be established by HIT in Hong Kong.

~~Interest~~The current ~~expense~~pandemic, ~~for~~changes ~~the~~in ~~quarter~~Chinese ~~ending~~regulations ~~June~~and ~~30,~~policies ~~2021,~~regarding ~~decreased~~Hong ~~to $24~~Kong,~~696~~ ~~compared~~recent topolitical ~~$27,119~~unrest ~~for~~and the ~~same~~inability ~~period~~of ~~in 2020. The interest~~Chinese ~~expense~~citizens ~~for~~to cross the ~~quarters~~border ~~ended~~between ~~June~~Hong ~~30,~~Kong ~~2021,~~ and ~~2020~~China ~~includes~~have ansignificantly ~~additional~~curtailed ~~$3,413~~the ~~and~~ability ~~$8,191~~of ~~respectively~~HIT ~~for~~to ~~the~~implement ~~effects~~its ofbusiness plans to utilize the ~~beneficial~~Company’s ~~conversion~~technology ~~feature~~and ~~associated~~purchase ~~with~~the ~~debenture~~associated ~~holders~~consumables.

Net loss for the third quarter of Fiscal 2021 was $466,470 compared to a loss of $230,457 for the third quarter of Fiscal 2020. The increase in the net loss for the quarter versus the same period in 2020 is attributed to increase in investing in Research and Development an Stock Compensation expense.Thailand

30On April 5, 2018 the Company announced further expansion of its global laboratory and cellular technology footprint by entering into an agreement to license its ATGRAFT™ and ATCELL™ adipose tissue (fat) processing and storage technologies with CRYOVIVA (Thailand) Ltd., a Bangkok, Thailand based Cord Blood processing and storage facility. CRYOVIVA, Thailand, currently offers collection, processing and storage of Cord Blood derived biologics to patients throughout Thailand and Southeast Asia.

~~Liquidity~~American CryoStem licensed to CRYOVIVA (Thailand) Ltd., established in 2007, the rights to utilize the Company’s Standard Operating Procedures (SOP’s) to create and ~~Capital~~market ~~Resources~~the Company’s ATGRAFT™ tissue storage service and ATCELL™ adipose derived stem cell processing and storage services in Thailand. The financial terms generally, call for the payment of certain training fees and, a percentage of the gross revenue subject to annual minimum payments generated from our products. Additionally, the Agreement calls for the purchase of CRYO consumable products required for ATGRAFT™ and ATCELL™ sample processing including CRYO’s ACSelerate™ non-DMSO cryogenic tissue storage media, transportation media, Cellect™ tissue collection kit, and ACSelerate – Max™ cell culture medium.

AsThe current ofCOVID ~~June~~pandemic ~~30,~~has ~~2021,~~delayed ~~the~~CRYOVIVA’s ~~Company~~scheduled ~~had~~launch aof ~~cash~~its ~~balance~~marketing ofcampaign ~~$7,369,~~several atimes ~~decrease~~and ~~of $34~~unfortunately,~~391~~ ~~since~~CRYOVIVA suspended ~~September~~their ~~30,~~tissue banking operations in 2020 and 2021. We ~~used~~are ~~$314,761~~currently ~~of our~~in ~~cash~~discussions ~~for~~with them concerning the restart of their operations and ~~$35,187~~initiation ~~for~~of ~~investing~~their ~~activities,~~marketing inprogram ~~new~~for ~~patents~~calendar ~~development.~~2022 ~~The~~although ~~main~~there ~~sources~~is ofno ~~cash~~certainty ~~provided~~that bythe effects of ~~financing~~the ~~activities~~pandemic ~~included~~will ~~new~~ease ~~equity~~sufficiently ~~and~~to ~~debt~~do ~~issuances~~so ~~totaling~~in ~~$315,557~~the near term.

Accounts Receivable increased to $874,560 at June 30, 2021 from $500,000 at September 30, 2020 mainly due to an increase in receivables from Baoxin for licensing fees due to the current economic and health conditions in China, including increased tariffs and the Corona virus, the Company is closely monitoring the impact of these circumstances.Japan

~~Convertible debt~~In ~~increased to $702,718 as of~~ June 302015, The ~~2021,~~Company ~~versus~~entered ~~$558,552~~into asa oflicensing ~~September~~agreement 30with CellSource, ~~2020~~LTD. ~~This~~(“CellSource”) ~~increase~~located ~~was~~in ~~due~~Shibuya, toTokyo Japan for the ~~issuance~~ licensing of ~~new~~our ~~convertible~~AGRAFT™ ~~notes~~tissue processing and ~~effects~~storage oftechnology ~~amortizing~~and the ~~beneficial~~purchase ~~conversion~~of ~~feature~~our ofCELLECT® collection ~~the~~products ~~notes.~~which ~~See~~include ~~Note~~our 7ACSelerate-TR™ transport medium. ~~Debt~~The ~~reported~~non-exclusive inagreement expired ~~the~~in ~~financial~~June ~~statements~~of 2020.

The Company will continue to focus on its financing and investment activities, but should we be unable to raise sufficient funds, we will be required to curtail our operating plans or cease them entirely. We cannot assure you that we will generate the necessary funding to operate or develop our business. Please see “Cash Requirements” above for our existing plans with respect to raising the capital we believe will be required. In the event that we are able to obtain the necessary financing to move forward with our business plan, we expect that our expenses will increase significantly as we attempt to grow our business. Accordingly, the above estimates for the financing required may not be accurate and must be considered in light these circumstances.26

~~There~~Collaborations ~~was~~/ noPartnering ~~significant~~Opportunities ~~impact~~/ ~~on the Company’s operations as a result of inflation for the nine months ended June 30, 2021.~~Acquisitions

~~Cash~~The Company ~~Requirements~~recognizes the benefits of collaborations with industry and university partners and has increased its efforts to attract and develop these relationships. Strategically, the Company believes that with a current approved IND application with the US FDA and the strength of its granted and pending patent portfolio, that it can attract new partners and collaborative arrangements These relationships are generally covered by Confidential Non-Disclosure Agreements and include Material Transfer Agreements (MTA) under which the Company may supply ATCELL™ and/or ACSelerate™ medium products for evaluation, testing, and the development of new cellular therapy applications. The Company has entered into Non-Disclosure and Material Transfer Agreements with a number of potential collaborators. No assurance can be given that these efforts or relationships will ultimately result in new technology for future commercialization.

WeThe Company ~~will~~has ~~require~~developed ~~additional~~a ~~capital~~strategy to ~~fund~~expand ~~marketing,~~the ~~operational~~opportunities ~~expansion,~~to ~~processing~~commercialize ~~staff~~its ~~training,~~products asby ~~well~~increasing asits ~~for~~ability ~~working~~to ~~capital.~~identify and pursue Wecollaborative ~~are~~and ~~attempting~~partnering toopportunities ~~raise~~by ~~sufficient~~cultivating ~~funds~~and ~~that~~engaging ~~would~~new ~~enable~~relationships uswith tobiotechnology ~~satisfy~~companies ~~our~~engaged in ~~cash~~similar ~~requirements~~or ~~for~~complimentary adevelopment ~~period~~activities. ofIncluded in this strategy is the ~~next~~increased ~~12 to~~recruitment 24of ~~months.~~consultants Inand other ~~order~~biotechnology experts to ~~finance~~identify ~~further~~potential ~~market~~collaborators, ~~development~~partners ~~with~~and ~~the~~acquisition ~~associated~~candidates. ~~expansion~~The ofCompany’s ~~operational~~goal is ~~capabilities~~to ~~for~~develop ~~the time~~additional ~~period,~~standardized wecellular ~~will~~processing ~~need~~models to ~~raise~~support ~~additional~~FDA ~~working~~IND ~~capital~~treatment protocol approvals. ~~However,~~This wemay ~~cannot~~be accomplished ~~assure~~by ~~you~~further weidentifying, ~~can~~and ~~attract~~validating ~~sufficient~~certain ~~capital to~~mechanisms ~~enable~~and uscharacteristics toof ~~fully~~mesenchymal ~~fund~~stem ~~our~~cells ~~anticipated~~related ~~cash~~to regulating ~~requirements~~modulation ~~during~~of ~~this~~immune ~~period.~~response(s) Inand ~~addition,~~promoting wetissue ~~cannot~~regeneration ~~assure~~and ~~you~~stability ~~that~~(homeostasis) for the ~~requisite~~treatment of ~~financing~~traumatic injuries, ~~whether~~inflammation, ~~over~~auto-immune ~~the~~diseases, ~~short~~and orbrain ~~long~~and ~~term,~~organ ~~will~~damage beassociated ~~raised~~with ~~within~~viruses ~~the~~such ~~necessary~~as ~~time~~SARS-CoV-2 (COVID-19), ~~frame~~including, orthe onexpanding ~~terms~~group ~~acceptable~~of topatients ~~us,~~dealing ~~if at~~with ~~all.~~the ~~Should~~chronic weand bedebilitating ~~unable~~symptoms toof ~~raise~~what ~~sufficient~~is ~~funds~~commonly termed we“Long ~~may~~Haul beCOVID” ~~required~~or to“Long ~~curtail~~COVID.” ~~our~~To ~~operating~~date ~~plans~~the ifCompany ~~not~~has ~~cease~~completed ~~them~~agreements ~~entirely.~~with the following Asentities afor ~~result,~~development weof ~~cannot~~new ~~assure~~products ~~you~~and ~~that~~cellular wetherapy ~~will~~targets bealthough ~~able~~the tosuccessful ~~operate~~commercialization ~~profitably~~of onnew aproducts and ~~consistent~~therapies ~~basis,~~resulting orfrom atthese ~~all,~~activities incannot ~~the~~be ~~future~~assured or predicted at this time.

In order to move our Company through its next critical growth phase of development and commercialization and to ensure we are in position to support our research collaborations and market penetration strategies, Management continues to seek new investment into the Company from existing and new investors with particular emphasis on identifying the best deal structure to attract and retain meaningful capital sponsorship from both the retail and institutional investing communities, while limiting dilution to our current shareholders. Management also focuses its efforts on increasing sales and licensing revenue and reducing expenses.WRNMMC

~~Effects~~On December of3, ~~COVID~~2020, 19the Company entered into a Cooperative Research and Development Agreement (CRADA) with Walter Reed National Military Medical Center (WRNMMC), the nation’s largest and most renowned joint military medical center serving the Army, Navy, Air Force and Marines located in Bethesda, Maryland.

~~The~~A Cooperative ~~main~~Research ~~effects~~and ofDevelopment ~~the~~Agreement ~~COVID~~(CRADA) 19is ~~pandemic~~a ~~were~~written ~~with~~agreement ~~the~~between ~~Company’s~~a USgovernment ~~domestic~~agency ~~physician~~and ~~network~~a non-federal entity that allows the federal government and its ~~international~~non-federal partners~~. China,~~ ~~Hong~~to ~~Kong~~optimize and ~~Thailand~~maximize ~~have~~use ~~been~~of their resources, exchange technical expertise in ~~lockdown~~a ~~during~~protected ~~the~~fashion, ~~quarter.~~share ~~This~~intellectual ~~has~~property ~~hindered~~resulting ~~our~~from ~~attempts~~collaborative toeffort, ~~resolve~~and ~~our~~speed ~~outstanding receivable~~commercialization ~~from~~of ~~Baoxin~~federally developed technology. ~~Considering~~The ~~this,~~Company wehas ~~elected~~committed to ~~increase~~provide ~~our~~materials ~~provision~~including ~~for~~ATCell ~~doubtful~~samples ~~accounts~~and byUmbilical ~~$325~~Cord stem cells,~~000~~ inACSelerate Max ~~Fiscal~~Growth ~~2019~~and differentiation mediums testing and other processing supplies, processing and testing methods. The Company maintains ~~with~~the ~~regard~~rights to ~~their~~commercialize ~~outstanding~~all ~~balance~~technology developed under this CRADA Agreement. ~~CRYOVIVA~~The ~~Thailand~~technology ~~was~~is ~~implementing~~centered aon creating in vitro (test tube) assays to standardize and commercialize new ~~marketing~~treatment ~~program~~protocols; inoptimizing ~~January~~quality ~~2021~~control ~~which~~measures; ~~continues~~and developing tostandardized beprotocol ~~delayed~~potency ~~due~~assays for precise therapy dosing. Management believes that these new assays can be commercialized to ~~the~~generate ~~circumstances~~substantial ~~surrounding~~sales ~~the~~and ~~effects~~licensing ofrevenues ~~the~~and ~~COVID-19~~create ~~pandemic~~value infor ~~Thailand~~the Company’s stakeholders.

~~Commitments~~Through the Collaboration entitled “Stem Cells for Regeneration and Medical Innovation, a multi-faceted and multi-staged research project with WRNMMC Biomedical Laboratories, the Company plans to develop, validate and standardize baseline and assay metrics to identify mesenchymal stem cell (MSC) characteristics and quantities across various cell biomarkers and exosome expressions data sets for its ATCell™ product for biologics developers’ use worldwide. The focus of the Collaboration is to enable the creation of predictive and prescriptive cellular models which will further enhance American CryoStem’s mission as a premier biologics’ manufacturer and developer and be highly valuable to the medical community, biotech developers, and the public at large.

~~Effective~~WRNMMC ~~October~~is 1,part ~~2019, the Company adopted the provision~~ of ~~ASC 842 Leases.~~ The Military ~~Company~~Health ~~determines~~System ~~whether~~(MHS) which ~~a contract~~ is ~~or contains a lease at inception of~~ the ~~contract~~enterprise ~~and~~within ~~whether that lease meets~~ the ~~classification~~United ~~criteria~~States Department of ~~finance or operating lease. When~~Defense ~~available,~~that ~~the~~provides ~~Company~~health ~~uses~~care ~~the rate implicit in the lease~~ to ~~discount~~active ~~lease payments to present value; however~~duty, ~~one~~Reserve ofcomponent ~~the Company’s leases does not provide a readily determinable implicit rate~~and retired U.S. ~~Therefore, the Company must discount lease payments based on an~~Military personnel and ~~estimate~~their ~~of its incremental borrowing rate which is based on the interest rate of similar debt outstanding~~dependents.

31The missions of the MHS are complex and interrelated: To ensure America’s 1.4 million active duty and 331,000 reserve-component personnel are healthy so they can complete their national security missions.

~~Operating Lease~~· To ensure that all active and reserve medical personnel in uniform are trained and ready to provide medical care in support of operational forces around the world.

~~The Company~~· ~~leases~~To ~~its~~provide ~~office~~a ~~facility,~~medical inbenefit ~~Eatontown,~~commensurate ~~New~~with ~~Jersey,~~the ~~from~~service ~~Eaton Holdings LLC. The lease expired on April 30, 2021~~ and ~~the~~ ~~Company~~sacrifice ~~can~~of ~~exercise~~more athan ~~renewal option for an additional three years~~9.5 ~~The~~million ~~company~~active-duty ~~has not exercised its option to renew for 36 months at $2~~personnel,~~650~~ ~~per~~military ~~month. The company is renting month to month at $2~~retirees,~~650~~ ~~per~~and ~~month,~~their ~~while management evaluates whether it will renew the lease~~families. ~~See Note 11. Leases in the Financial Statements.~~

The Company leases its laboratory facility, in Monmouth Junction, New Jersey, from Princeton Corporate Plaza LLC. The Company renewed its lease on April 1, 2021 for an additional 12 months and pays $2,763 per month. Since the lease obligation is less than twelve months, the Company does not report a lease related asset or liability for this lease. Rent paid for the laboratory facility for the nine months ended June 30, 2021 and 2020 was $22,623 and $21,501, respectively; and for the three months ended June 30, 2021 and 2020 was $8,289 and $7,167, respectively. Since the lease obligation is less than twelve months, the Company does not report a lease related asset or liability for this lease.27

The MHS ~~Company~~also ~~was~~provides ~~not~~health ~~party~~care, tothrough ~~any~~the ~~litigation~~TRICARE ~~against~~health ~~it and is not aware of any litigation contemplated against it as of June 30~~plan, ~~2021. See also Legal Proceedings below.~~to:

~~We anticipate~~· ~~that~~Active-duty ~~any~~service ~~further~~members ~~capital~~and ~~commitments~~their ~~that may be incurred will be financed principally through the issuance of our securities. However~~families, ~~we cannot assure you that additional financing will be available to us on a timely basis, on acceptable terms, or at all.~~

~~Related Party~~· ~~Transactions~~Retired service members and their families,

On· ~~October~~Reserve 1,component ~~2020~~members the Company executed a note with ACS Global for a principal amount of $99,125 representing the outstanding balance due to ACS Global. The Company increased the amount of the note to $148,125 on March 1, 2021. The Note matures on October 1, 2023 and ~~carries~~their an interest rate of 10% per annum which may be paid in cash or stock. The note is due and payable in full upon maturity. The note may be prepaid at any time by the Company. The principal balance of the note at March 31families, ~~2021 is $147,775.~~

~~Off Balance~~· ~~Sheet~~Surviving ~~Arrangements~~family members,

~~We have~~· noMedal ~~off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results~~ of ~~operations,~~Honor ~~liquidity,~~recipients ~~capital~~and ~~expenditures~~their ~~or capital resources that are material to investors.~~families

~~Critical Accounting~~· ~~Policies~~Some former spouses, and

We· ~~prepare~~Others ~~financial statements~~identified inas ~~conformity~~eligible ~~with U.S. generally accepted accounting principles (“GAAP”), which requires us to make estimates and assumptions that affect the amounts reported~~ in ~~our combined and consolidated financial statements and related notes. See Note 1 and Note 3 to~~ the ~~Financial~~Defense ~~Statements~~Enrollment ~~for~~Eligibility ~~more~~Reporting ~~information.~~System

~~Basis~~The MHS ofhas ~~Presentation~~a $50+ billion budget and serves approximately 9.5 million beneficiaries. The MHS employs more than 144,217 in 51 hospitals, 424 clinics, 248 dental clinics and 251 veterinary facilities across the nation and around the world, as well as in contingency and combat-theater operations worldwide.

~~Our~~Muscular financial statements are presented on the accrual basis of accounting in accordance with generally accepted accounting principles in the United State of America, whereby revenues are recognized in the period earned and expenses when incurred.Dystrophy

32In March 2020, the Company entered into a collaborative agreement with RACEMD, a 501c(3) charitable organization focused on the improvement of treatments and therapies for patient with Duchenne Muscular Dystrophy. Duchenne muscular dystrophy (DMD) is a severe type of muscular dystrophy that primarily affects boys. Muscle weakness usually begins around the age of four and worsens quickly. Muscle loss typically occurs first in the thighs and pelvis followed by the arms. Most affected individuals are unable to walk by the age of 12. Some may have intellectual disability. DMD affects about one in 3,500 to 6,000 males at birth. It is the most common type of muscular dystrophy. The life expectancy is 26; however, with excellent care, some may live into their 30s or 40s. The disease is much rarer in girls, occurring approximately once in 50,000,000 live female births.

~~Management’s~~The terms ~~Use~~of the Agreement call for the Company to work with RACEMD to develop clinical therapies and studies focused on mitigating the effect of ~~Estimates~~the disease, improve muscle strength and quality of life in the short term and to build upon successes to seek a more curative cellular therapy solution to extend life expectancy over the long term. The Company is in the final stages of completing its plans with RACEMD to submit an initial safety study for use of ATCell as the treatment protocol and expects to make its initial filing to FDA in early 2022. RACEMD has committed to funding the initial studies and to assist the Company in creating non-dilutive funding opportunities for larger advanced studies in the future.

~~The~~PeproTech, preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periodsInc. ~~Actual results could differ from those estimates.~~

~~Long-Lived~~On April 4, ~~Assets~~2016 the Company entered into an Agreement with PeproTech, Inc of Rocky Hill, NJ. Under the Agreement PeproTech manufactures, markets and distributes the Company’s ACSelerate – Max cell growth medium. The Company and PeproTech completed the optimization and scale up manufacturing studies and the licensed medium is marketed under both PeproTech’s, PeproGrow and the Company’s ACSelerate MAX brands. PeproTech plans to leverage its current global sales relationships which reach a majority of all research laboratories worldwide to maximize distribution of the optimized media while the Company will concentrate its sales efforts on its collaborative and international licensing partners. Additionally, the Company and PeproTech are discussing the licensing of additional American CryoStem patented media and products for production and distribution by PeproTech, any additional media licensed to PeproTech will undergo similar optimization and scale up production testing prior to being released for sale. The Company is in ongoing discussion with PeproTech related to increasing the visibility and sales of the medium and the optimization of additional medium products focused on the differentiation of adult stem cells that are synergistic to the cell culture medium. On January 5th, 2022, Thermo Fisher Scientific completed its acquisition of PeproTech for $1.85 billion.

WeIntellectual review and evaluate our long-lived assets for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, we compare the assets’ carrying amounts against the estimated undiscounted cash flows to be generated by those assets over their estimated useful lives. If the carrying amounts are greater than the undiscounted cash flows, the fair values of those assets are estimated by discounting the projected cash flows. Any excess of the carrying amounts over the fair values are recorded as impairments in that fiscal period.Property

~~Statement~~From the Company’s formation, our strategy has been to invest time and capital in intellectual property protection. This strategy is intended to strengthen our Company’s foundation in any defensive or offensive legal challenge. In addition, we are developing our IP portfolio to ensure and enhance our business flexibility and allow us to gain favorable terms in potential future collaborative partnerships with third parties. Our intellectual property portfolio currently includes four issued U.S. patents (No. 7,989,205, and Serial No. 9,487,755, Cell Culture Media Kits and Methods of ~~Cash~~Use, ~~Flows~~“Systems and Methods for the Digestion of Adipose Tissue Samples Obtained from a Client for Cryopreservation” US 10,154,664 issued December 18, 2018, and “Business Method for Collection, Processing, Cryogenic Storage and Distribution of a Biologic Sample Material” US Patent Number 10,014,079, issued July 3, 2018); and has additional pending patent applications which are detailed in the following chart:

For purposes of the statement of cash flows, we consider all highly liquid investments (i.e., investments which, when purchased, have original maturities of three months or less) to be cash equivalents.28

Recent Accounting Pronouncements

Title	Technology	Patent / Application Number
Cell culture media, Kits, and Methods of Use	ACS cell culture media line Covers 12 types of Medium	US Patent No. 7,989,205 Issued August 2, 2011
Cell culture media, Kits, and Methods of Use	ACS cell culture media line Additional claim Granted for all 12 medium types	US Patent No. 9,487,755 Issued November 8, 2016 Continuation of US Patent No. 7,989,205
Cell culture media, Kits, and Methods of Use	ACS cell culture media line Continuation of Granted Patent covering additional improvements	US Patent Application No. 15/344,805 Continuation of US Patent No. 7,989,205
Human serum for cell culture medium for growth of human adipose stromal cells	A cell culture medium for growth of human adipose stromal cells for human and therapeutic applications	PCT/US15/68350 30 month National Phase entry date of June 31, 2017, additional International Filings for China, India, the European Union, Saudi Arabia, Israel, Brazil, Mexico, Australia and New Zealand.
A Business Method for Collection, Cryogenic Storage and Distribution of a Biological Sample Material	Company Core Tissue Collection Processing and Storage Methodology Covers CELLECT Kit, Transport and Cryopreservation Medium for ATGRAFT and ATCELL Products	US Serial No 13/194,900 Filed June 6, 2010 Patent Application Published December 5, 2013 Claims Granted US Patent No. 10,014,079. Continuation filed upon issuance.
A Business Method for Collection, Cryogenic Storage and Distribution of a Biological Sample Material	Company Core Tissue Collection Processing and Storage Methodology Continuation covering Improvements	Developed Improvement established; Divisional, Continuation-In-Part claiming priority to US Serial No. 13/194,900 imminent (PCT Application filing planned)
Systems and Methods for the Digestion of Adipose Tissue Samples Obtained From a Client For Cryopreservation	Adipose Tissue Digestion Laboratory Processing Methods	U.S. Serial No. 13/646,647 filed October 6, 2011, Claims Granted US Patent No.10, 154,664. Continuation filed upon issuance.
Systems and Methods for the Digestion of Adipose Tissue Samples Obtained From a Client For Cryopreservation	Adipose Tissue Digestion Laboratory Processing Methods	Developed Improvement established; Divisional, Continuation-In-Part claiming priority to US Serial No. 13/646,900 imminent (PCT Application filing planned)
Compositions and Methods for collecting, Washing, Cryoprocessing, Recovering and Return of Lipoaspirate to Physicians for Autologous Adipose Transfer Procedures”	Company Adipose Tissue Storage Platform for Cosmetic Procedures Covers the core processing adipose tissue for ATGRAFT adipose tissue dermal filler product	U.S. Serial No. 14/406,203 National Phase entry date of December 5, 2014 based on PCT/US2013/044621 European Union Application No. EPI3800847.9 China Application No. 2013800391988
Compositions and Methods for “Collecting, Washing, Cryoprocessing, Recovering and Return of Lipoaspirate to Physicians for Autologous Adipose Transfer Procedures”	Company Adipose Tissue Storage Platform for Cosmetic Procedures Covers additional claims related to ATGRAFT process not included in original application	Developed Improvement established; Divisional, Continuation-In-Part claiming priority to US Serial No. 14/406,203 imminent (PCT Application filing planned)
Systems and methods to isolate and expand stem cells from urine	Isolation of stem cells from urine of patients for use in research and therapeutics	US Serial Nos. 62/335,426 and 62/439,106

~~In November 2018~~Additionally, ~~the FASB issued ASU 2018-18, Clarifying the Interaction between Topic 808 and Topic 606. This new ASU applies to~~ companies that have collaborative arrangements, or agreements that involve two parties that actively participate in a joint operating activity. The Company policy is to enter into collaborative arrangements that benefit its expansion of its products and services. We believe our contract with Baoxin falls under the collaborative arrangement’s guidance in (ASC 808). We are collaborating with Baoxin to develop and expand clinical study of our product in China. According to the agreement, we retain all rights to co-developed intellectual property, while providing a Licensing Agreement to our collaborator allowing the use of our intellectual property in their geographic region. Since ASU 2018-18 is effective for public companies for years beginning after December 15, 2019, the Company has ~~implemented ASU 2018~~in-18licensed ~~for Fiscal 2021. Implementation of ASU 2018-18 has not affected prior or current revenue recognition, since according to~~ the ~~contract~~following ~~we bill License Fees for the use of our intellectual property and for any products shipped.~~ IP:

Patent Title	Use of Patent	Application #
Cosmetic compositions including tropoelastin isomorphs (wound healing)	Protein Genomics and American CryoStem (Autogenesis) collaboration	USPTO #5,726,040
Cosmetic compositions (wound healing)	Protein Genomics and American CryoStem (Autogenesis) collaboration	USPTO #6,451,326
Recombinant hair treatment compositions (wound healing)	Protein Genomics and American CryoStem (Autogenesis) collaboration	USPTO #6,572,845
Wound healing compositions and methods using tropoelastin and lysyl oxidase (wound healing)	Protein Genomics and American CryoStem (Autogenesis) collaboration	USPTO: #6,808,707
Business methods, processes and systems for collection, cryogenic storage and distribution of cosmetic formulations from an obtained stem cell based a biological	Personal Cell Sciences and American CryoStem collaboration	USPTO application #61/588,841

~~ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.~~Trademarks

~~Not~~In addition ~~Applicable~~to patents, the Company has registered the following trademarks with the U.S. Patent and Trademark Office: American CryoStem®, CELLECT® and ATGRAFT™. We plan to obtain additional registered trademarks for our future products, slogans and themes to be used in our marketing initiatives, including, for example, ACSelerate-SFM™, ACSelerate- LSM™ and ATCELL™. The Company has also secured a number of online domain names relevant to its business, including www.americancryostem.com and www.acslaboratories.com.

~~ITEM~~Market Size 4.and ~~CONTROLS AND PROCEDURES~~Opportunities

~~Conclusion~~By leveraging ~~Regarding~~our proprietary Adipose Tissue Processing Platform, the ~~Effectiveness~~Company is working to address multiple high growth, multi-billion dollar market opportunities prevailing within the Regenerative Medicine, Cosmeceuticals, Medical Tourism and Cell Therapy markets. The Company regularly reviews independent market research to gauge the market size of ~~Disclosure~~its ~~Controls~~intended domestic and ~~Procedures~~international markets and to identify additional areas within these markets where the Company’s laboratory products, cell culture medium, and tissue and cellular processing services can be marketed, sold and/or licensed.

The Company’s disclosure controls and procedures are designed to ensure (i) that information required to be disclosed by the Company in the reports the Company files or submits under the Exchange Act are recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms; and (ii) that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.30

~~Our principal~~Global ~~executive~~Stem ~~officer~~Cells and principal financial officer evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2021 and concluded that the disclosure controls and procedures were effective as a whole.Market

~~Changes~~A report from Transparency Market Research (TMR) forecasts that the global stem cells market is expected to register a healthy CAGR of 13.8% during the period from 2017 to 2025 to become worth US$270.5 bn by 2025. Depending upon geography, the key segments of the global stem cells market are North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. At present, North America dominates the market because of the substantial investments in ~~Internal~~the ~~Control~~field, ~~over~~impressive ~~Financial~~economic ~~Reporting~~growth, rising instances of target chronic diseases, and technological progress. As per the TMR report, the market in North America will likely retain its dominant share in the near future to become worth US$167.33 bn by 2025.

~~There~~A report ~~were~~published noby ~~changes~~Markets and Markets Research in ~~our~~2017 ~~internal~~titled ~~control~~“Cell ~~over~~Expansion ~~financial~~Market ~~reporting~~by Product (Reagent, asMedia, Flow ~~defined~~Cytometer, inCentrifuge, ~~Rules~~Bioreactor), ~~13a-15~~Cell Type (fHuman, Animal), ~~and~~Application ~~15d-15~~(fRegenerative Medicine & Stem Cell Research, Cancer), ~~under~~End user (Research Institute, Cell Bank) - Global Forecasts to 2021”. The report states: “The global cell expansion market is expected to reach USD $18.76 Billion by 2021 from USD $8.34 Billion in 2016 at a CAGR of 17.6%. Geographically, the ~~Exchange~~cell ~~Act~~expansion market is dominated by North America, ~~during~~followed ~~our~~by ~~most~~Europe, ~~recently~~Asia, ~~completed~~and ~~fiscal~~the ~~quarter~~Rest ~~that~~of ~~have~~the ~~materially~~World ~~affected~~(RoW). Growth in the North American segment is primarily driven by increasing incidence of chronic diseases in the North American countries. According to the American Medical Association and the American Medical Group Association, more than 50% of Americans suffered from one or ~~are~~more ~~reasonably~~chronic ~~likely~~diseases in 2012; the number of Americans suffering from chronic diseases was around 133 million in 2005 and this figure is expected to ~~materially~~reach ~~affect~~around 157 million by 2020. With this significant growth in the number of patients suffering from chronic diseases, ~~our~~the ~~internal~~market ~~control~~for ~~over~~cell ~~financial~~expansion ~~reporting~~is expected to grow in this region in the coming years.

34Regenerative Medicine Market

~~PART~~The Global Translational IIRegenerative -Medicine market ~~OTHER~~is ~~INFORMATION~~expected to grow significantly over the forecast period. The Global Translational Regenerative Medicine market was valued at $5.8bn in 2016. Vision gain forecasts this market to increase to $14.5bn in 2021. The market is estimated to grow at a CAGR of 19.9% in the first half of the forecast period and 17.7% from 2016 to 2027.

~~ITEM~~Cell 1.Culture Market ~~LEGAL PROCEEDINGS~~

WeCell Culture ~~are~~Market Global ~~currently~~Forecast ~~not~~to ~~involved~~2023, inaccording ~~any~~to ~~litigation~~“marketsandmarkets” the ~~that~~cell weculture ~~believe~~market ~~could~~is ~~have~~expected ato ~~material~~reach ~~adverse~~USD ~~effect~~$26.28 onBillion ~~our~~by ~~financial~~2023 ~~condition~~from ~~or results~~USD ~~of operations~~$15.32 ~~There~~Billion isin ~~no action~~2018, ~~suit,~~at ~~proceeding,~~a ~~inquiry~~CAGR orof ~~investigation~~11.4%. ~~before or by any court, public board, government~~Growth ~~agency,~~in ~~self-regulatory~~this ~~organization~~market oris ~~body~~driven ~~pending~~by ~~or, to~~ the ~~knowledge~~growing ofnumber ~~the executive officers~~ of ~~our~~regulatory ~~company~~approvals orfor ~~any~~cell ofculture-based ~~our subsidiaries~~vaccines, ~~threatened~~increasing ~~against~~demand orfor monoclonal ~~affecting~~antibodies ~~our Company~~(mAbs), ~~our~~funding ~~common~~for ~~stock~~cell-based research, ~~any~~growing ofpreference ~~our~~for ~~subsidiaries~~single-use ortechnologies, ofand ~~our~~the ~~companies or our~~launch ~~subsidiaries’~~of ~~officers~~advanced orcell ~~directors~~culture ~~in their capacities as such, in which an adverse decision could have a material adverse effect~~products.

~~ITEM~~Marketing and ~~1A. RISK FACTORS~~Distribution

~~Not~~The ~~applicable~~key objective of our marketing strategy is to position American CryoStem in the market as the “Gold Standard” for adipose tissue collection, cell processing and cryogenic storage, research/commercial uses and therapeutic applications of adipose tissue within the current regulatory framework. The combination of a traditional sales approach supported by continuous internal and external marketing program(s) is closely coordinated with the expansion of our laboratory processing capabilities. Our initial marketing efforts intend to disseminate current and future uses of adipose tissue and adult stem cells which support our business model, products and services. We intend to continue to employ both print advertising and social media sales campaigns. In addition, we plan to continue to utilize key leaders, and early adopters in the medical community as a marketing resource to enhance awareness of our proprietary, patented products and services and to increase the number of surgeons who join our network, university and private collaboration and consumers who use our products and services.

~~ITEM~~We 2plan to continue direct marketing programs focused on reaching regenerative medicine physicians and plastic and cosmetic surgeons to join our network of providers that offer our services to their patients. ~~UNREGISTERED~~This ~~SALES~~marketing OFinitiative ~~EQUITY~~has ~~SECURITIES~~been ~~AND~~implemented ~~USE~~using OFa ~~PROCEEDS~~traditional sales approach common to the pharmaceutical and biotechnology industries. This fundamental sales approach at the core of our marketing activities is being strategically and tactically expanded using a combination of in-house sales personnel and outside independent channels.

~~During~~Our plan, capital ~~the~~permitting, ~~nine~~provides ~~months~~for ~~ended~~a ~~June~~comprehensive ~~30,~~integrated ~~2020~~marketing approach using various traditional and new media, such as the ~~Company~~Internet, social ~~issued~~media/blogging, 1video,~~541~~ print,~~667~~ ~~shares~~TV, radio and ~~received~~trade ~~proceeds~~shows to reach targeted potential consumers and promote awareness of our ~~$275,000~~Company and our branded products and services. The ~~share~~essence ~~price~~of ~~was~~this targeted strategy is to reach the end-users as quickly ~~determined~~as bypossible ~~agreement~~and ~~with~~to accelerate the ~~purchasers,~~adoption ~~based~~curve ~~upon~~of our products and services. We also plan to utilize outside marketing resources and trade groups to increase the ~~current~~number ~~market~~of ~~price~~surgeons ~~less~~willing ato ~~discount~~offer ~~for~~our ~~purchasing~~products ~~restricted~~and ~~securities~~services to their patients.

During the nine months ended June 30, 2020, the Company issued 2,965,659 shares for the conversion of a note along with interest and fees totaling $180,217. The share price was determined based upon the original note agreement.31

~~During the~~Development ~~nine months ended June 30, 2020, the Company issued 185,050 shares to pay interest due to holders~~ of ~~the bridge notes and~~Regional ~~convertible notes~~U. ~~The value of the interest paid was $49,899~~S. ~~The share prices were determined by the aggregate market price for the week in which the shares were issued.~~Markets

~~During~~Physician the nine months ended June 30, 2021, the Company issued 640,000 shares and received proceeds of $143,000. The share price was determined by agreement with the purchasers, based upon the current market price less a discount for purchasing restricted securities.Network

~~During~~Physician ~~the~~Network ~~nine~~- ~~months~~The ~~ended~~Company ~~June~~continues ~~30,~~to ~~2021,~~develop ~~the~~regional relationships to leverage its new products and services through existing cosmetic surgery and regenerative medicine practices. The Company ~~issued~~continues ~~164,000~~to ~~shares~~develop and ~~for~~expand its network of physicians seeking to adopt its products and services, ~~valued~~initially atfocusing ~~$20~~on surgeons performing liposuction,~~000~~ tissue transfer and regenerative procedures involving the use of adipose tissue. The ~~share~~Company ~~price~~intends ~~was~~to continue expanding its efforts to medical professionals interested ~~determined~~in bytissue ~~agreement~~storage ~~with~~and ~~the~~Regenerative ~~service~~Medicine ~~provider~~applications utilizing ASDCs and establish itself as a primary source of collection, processing, ~~based~~and ~~upon~~preparation ~~the~~of ~~current~~cellular ~~market~~therapies ~~price~~as ~~less~~they aare ~~discount~~developed and approved for ~~purchasing~~patient ~~restricted securities~~use by the FDA.

~~During~~Development ~~the~~of ~~nine~~International months ended June 30, 2021, the Company issued 100,000 shares for services to be provided valued at $75,000. The share price was determined by agreement with the service provider, based upon the current market price less a discount for purchasing restricted securities.Markets

~~During~~International Licensing Program – Globally, many jurisdictions outside the ~~nine~~US ~~months~~permit ~~ended~~the use of adipose tissue based cellular ~~June~~therapies ~~30,~~and ~~2021,~~regenerative ~~the~~medicine applications. The Company ~~issued~~has ~~109,519~~received ~~shares~~numerous toinquiries ~~pay~~concerning ~~interest~~the ~~due~~sale ~~holders~~or licensing of ~~bridge~~our ~~notes~~products and ~~convertible~~services ~~notes~~in these jurisdictions. The ~~amount of~~Company ~~interest~~believes ~~paid~~that ~~was~~the ~~$44,346.~~inquiries ~~The~~to ~~share~~date ~~prices~~are ~~were~~a ~~determined~~result byof the ~~aggregate~~global boom ~~market~~in ~~price~~Medical ~~for~~Tourism and the ~~week~~slow pace of approval of cellular therapies and regenerative medicine applications in ~~which~~the US. To address these inquiries and to expand the ~~interest~~Company’s sales, marketing and branding opportunities the Company has designed ~~became~~and ~~due~~is offering an International Licensing Program.

35The program is designed to permit the licensing of the Company’s products and services to organizations that meet the Company’s financial and technical criteria. The licensing program allows for a variety of business relationship including franchising, partnering and joint venturing. Marketing efforts to date have been to clinics, physician and hospitals in foreign jurisdictions capable of rapidly building or committing the appropriate facilities and personnel to create the required laboratory facilities to operate the CELLECT®, ATGRAFT™ and ATCELL™ services in their local market. Strategically, the Company’s international licensees will maintain the branding of the Company’s services along the lines of the “Intel Inside” branding program.

~~ITEM~~Qualified Licensees 3can quickly take advantage of the rapidly expanding opportunity to collect, process, store and culture individual regenerative cell samples for their clients with the comfort and confidence that they are providing services that have been developed to conform to US FDA standards. ~~DEFAULTS~~Core ~~UPON~~to ~~SENIOR~~the ~~SECURITIES~~relationship is the developed proprietary and patent pending processing and laboratory operational methodologies contained in our Standard Operating Procedures, Training, and Continuous Quality Management, Testing Program, and Laboratory Operations manuals.

~~None~~Licensing programs may be initiated through a letter of intent (LOI) agreement between the Company and the prospective licensee. This LOI agreement is designed for due diligence and facility qualifications purposes. The Company receives an initial fee under the agreement which may or may not be credited toward future royalty payments. Following evaluation of the prospective licensee the Company will enter into a final Agreement which outlines all upfront fees, minimum royalties and consumable purchase obligations of the Licensee.

~~ITEM~~Significant to 4.our ~~MINE~~international ~~SAFETY~~development ~~DISCLOSURES~~activities is the global expansion of the American CryoStem branded services and patented products, as well as the expansion of the Company’s services, technology and products as the core platform to implement cellular therapies and regenerative medicine.

~~Not~~Baoxin ~~Applicable~~Asia Pacific Biotechnology (Shenzhen) Co. Ltd. On July 12, 2018 the Company announced the national launch of CRYO’s ATGRAFTTM tissue collection, processing and storage technology by Baoxin Asia Pacific Biotechnology (Shenzhen) Co. Ltd. (“Baoxin”) in China. The management team traveled throughout southeast China with the management and marketing team of Baoxin to present the ATGRAFTTM platform to leading plastic and cosmetic surgery hospitals in Shenzhen, Nanning, Guangzhou, Guangxi and Changsha. The China launch activities are in support of the Company’s previously announced licensing and supply agreement with Baoxin, under which Baoxin will pay the Company a minimum annual guarantee against a fixed fee per process and purchase certain necessary consumables from CRYO required for the collection, processing and storage of the collected adipose tissue. Under the terms of the Agreements signed in Fiscal 2018, the Company invested in and currently holds five percent (5%) of Baoxin shares. Additionally, Mr. Arnone and Mr. Dudzinski were elected to serve as Directors of Baoxin during their visit to Shenzhen, China. During 2019 Mr. Arnone resigned from the board of Baoxin.

~~ITEM~~During Fiscal 52020 and 2021, due to the continuing effects of the COVID pandemic and associated government policies and regulations Baoxin suspended its processing activities. ~~OTHER~~Baoxin ~~INFORMATION~~is an emerging biotechnology company in China that has relied to date on investment to fund operation and build their facilities, as is typical for these types of companies. During 2020 and 2021, Baoxin developed a new state of the art facility with sizable clean rooms and biomaterial storage space. The facility was completed in February 2021 and officially opened in May of 2021. Unfortunately, due to the continued effects of COVID and the appearance of new variants Baoxin has been unable to restart operations and its marketing programs.

~~None~~See Note 3, Note 13 and Note 14 for additional information.

~~ITEM 6. EXHIBITS~~32

Health Information Technology Company, LTD (aHong Kong) - On June 30, 2014 the Company granted Health Information Technology Company, ~~Exhibits~~LTD ~~furnished~~(“HIT”) exclusive rights to utilize the Company’s Standard Operating Procedures (SOP’s) to market the Company’s ATGRAFT™ tissue storage service for Hong Kong. The Agreement calls for upfront fees, royalties and the purchase by HIT of certain consumables manufactured by the Company. The Company and HIT have reached further agreement to extend their relationship on a non-exclusive basis to include HIT’s cord blood laboratory located in Shenzhen, Guangdong Province, one of China’s most successful Special Economic Zones. The HIT agreement includes initial upfront fees and royalty payments for predetermined gross revenue volumes. HIT will also purchase CRYO ACSelerate™ storage media, CELLECT™ collection and transportation kits as ~~Exhibits~~well ~~hereto:~~as other American CryoStem products necessary for clinical adipose tissue processing and storage at the Shenzhen facility. The final master licensing agreement is for a period of 5 years with renewal options and was executed between the parties on September 24, 2014. The HIT license has been extended per the terms of Schedule B of the Term Sheet, dated June 30, 2014, for an additional 3 year period to June 30, 2023.

Exhibit No.	Description
31.1	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In 2017 as part of the Company’s transaction with Baoxin, HIT and the Company agreed to transfer certain product and distribution rights granted to HIT under its 2014 agreement to Baoxin. The Company was paid a fee in the transaction and was provided with an initial ownership position in a planned Regenerative Treatment Center to be established by HIT in Hong Kong.

36The current pandemic, changes in Chinese regulations and policies regarding Hong Kong, recent political unrest and the inability of Chinese citizens to cross the border between Hong Kong and China have significantly curtailed the ability of HIT to implement its business plans to utilize the Company’s technology and purchase the associated consumables.

~~SIGNATURES~~CRYOVIVA (Thailand), Ltd. - On April 5, 2018 the Company announced further expansion of its global laboratory and cellular technology footprint by entering into an agreement to license its ATGRAFT™ and ATCELL adipose tissue (fat) processing and storage technologies with Cryoviva (Thailand) Ltd., a Bangkok, Thailand based Cord Blood processing and storage facility. Cryoviva, Thailand, currently offers collection, processing and storage of Cord Blood derived biologics to patients throughout Thailand and Southeast Asia.

~~Pursuant~~American CryoStem has licensed to Cryoviva (Thailand) Ltd., established in 2007, the ~~requirements~~rights ofto utilize the ~~Securities~~Company’s ~~Exchange~~Standard ~~Act~~Operating ofProcedures (SOP’s) ~~1934~~to create and market the Company’s ATGRAFT™ tissue storage service and ATCELL™ adipose derived stem cell processing and storage services in Thailand. The financial terms generally, call for the ~~registrant~~payment ~~has~~of ~~duly~~certain ~~caused~~training fees ~~this~~and, ~~report~~a percentage of the gross revenue subject to beannual ~~signed~~minimum onpayments ~~its~~generated ~~behalf~~from our products. Additionally, the byAgreement calls for the ~~undersigned~~purchase ~~thereunto~~of ~~duly~~CRYO ~~authorized~~consumable products required for ATGRAFT and ATCELL sample processing including CRYO’s ACSelerate™ non-DMSO cryogenic tissue storage media, transportation media, Cellect™ tissue collection kit, and ACSelerate – Max™ cell culture medium.

	AMERICAN CRYOSTEM CORPORATION
August 23, 2021	By:	/s/ John Arnone
		John Arnone, Chief Executive Officer
		(Principal Executive Officer)
August 23, 2021	By:	/s/ Anthony Dudzinski
		Anthony Dudzinski, Treasurer
		(Principal Financial Officer)

CellSource Tokyo, Japan - In the second quarter of 2015 the Company entered into negotiations with CellSource, LLC in Tokyo, Japan for the licensing of its ATGRAFT^™ products and services and on June 2, 2015 the Company and Cell Source entered into an initial term sheet licensing the ATGRAFT^™ technology to CellSource for Japan. The non- exclusive agreement expired in June of 2020.

37Corporate Information

Our principal executive offices are located at 1 Meridian Road, Eatontown, New Jersey 07724 and our telephone number is (732) 747-1007. Our website is www.americancryostem.com. We also lease and operate a tissue processing laboratory at Princeton Corporate Plaza in Monmouth Junction NJ. Our laboratory website address is www.acslaboratories.com.

Available Information

We file electronically with the U.S. Securities and Exchange Commission (SEC) our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934. The public can obtain materials that we file with the SEC through the SEC’s website at http://www.sec.gov or at the SEC’s Public Reference Room at 100 F Street, NE, Washington, DC 20549. Information on the operation of the Public Reference Room is available by calling the SEC at 800-SEC-0330.

Going Concern

As of the date of this annual report, there is substantial doubt regarding our ability to continue as a going concern as we have not generated sufficient cash flow to fund our proposed business.

We have suffered recurring losses from operations since our inception. In addition, we have yet to generate an internal cash flow from our business operations or successfully raised the financing required to expand our business. As a result of these and other factors, our independent auditor has expressed substantial doubt about our ability to continue as a going concern. Our future success and viability, therefore, are dependent upon our ability to generate capital financing. The failure to generate sufficient revenues or raise additional capital may have a material and adverse effect upon us and our shareholders.

Results of Operations - Three Months

The Company’s revenue for the quarter ended December 31, 2021, decreased to $61,185 versus $126,600 in the same period of Fiscal 2020.

Operating expenses increased to $396,800 for the quarter ended December 31, 2021, from $171,852 for the same period in Fiscal 2020. The Company incurred increases in its Research and Development efforts due to the initiation of the Company’s FDA approved clinical study for Post-Concussion Syndrome and Professional Fees (primarily legal) to prepare for an upcoming financing and increased stock compensation expenses.

Administrative expenses increased to $324,322 from $106,529. The increase is primarily related to the development of additional clinical studies for the Company’s ATCell products.

Interest expense for the quarter ending December 31, 2021, increased to $26,278 compared to $24,483 for the same period in 2020. The interest expense for the quarters ended December 31, 2021, and 2020 includes an additional $3,413 and $8,191 respectively for the effects of the beneficial conversion feature associated with debenture holders.

Net loss for the first quarter of Fiscal 2021 was $354,477 compared to a net loss of $46,034 for the same period of Fiscal 2020. The increase in the net loss for quarter versus the same period in 2020, was due to increased expenses in Research and Development, primarily Clinical Study efforts.

Liquidity and Capital Resources

As of December 31, 2021, the Company had a cash balance of $103,027, compared to $8,244 at September 30, 2021. We used 532,435 of our cash for operations and $9,680 for investing activities, in new patents development. The main sources of cash provided by financing activities included new equity issuances totaling $665,000

Accounts Receivable increased to $83,736 at December 31, 2021 from $78,782 at September 30, 2021 mainly due to an increase in receivables storage and processing fees.

Convertible debt increased to $709,544 on December 31, 2021, versus $706,131 as of September 30, 2021. This increase was due to the effects of amortizing the beneficial conversion feature of the notes. See Note 7. Debt reported in the financial statements.

There was no significant impact on the Company’s operations as a result of inflation for the nine months ended December 31, 2021.

Cash Requirements

We will require additional capital to fund marketing, operational expansion, processing staff training, as well as for working capital. We are attempting to raise sufficient funds would enable us to satisfy our cash requirements for a period of the next 12 to 24 months. In order to finance further market development with the associated expansion of operational capabilities for the time period discussed above, we will need to raise additional working capital. However, we cannot assure you we can attract sufficient capital to enable us to fully fund our anticipated cash requirements during this period. In addition, we cannot assure you that the requisite financing, whether over the short or long term, will be raised within the necessary time frame or on terms acceptable to us, if at all. Should we be unable to raise sufficient funds we may be required to curtail our operating plans if not cease them entirely. As a result, we cannot assure you that we will be able to operate profitably on a consistent basis, or at all, in the future.

Effects of COVID 19

The development of our drug candidates could be disrupted and materially adversely affected in the future by a pandemic, epidemic or outbreak of an infectious disease like the recent outbreak of COVID-19. For example, as a result of measures imposed by the governments in regions affected by COVID-19 businesses and schools have been suspended due to quarantines or “stay at home” orders intended to contain this outbreak. Furthermore, many patients had concerns about making hospital and physician office visits for fear of contracting the virus. These factors had an direct adverse impact on our ability to enroll participants in our clinical trial programs. In addition, travel restrictions, stay-in-place orders and other measures imposed by governmental agencies and health organizations to prevent the spread of COVID-19 and protect the citizenry, have had an adverse impact on the flow of goods and services between nations. The supply disruptions have resulted in shortages of goods and materials. This could also impact our ability to produce the products we need to conduct our clinical trials. In addition, these measures have resulted in delays to the regulatory process, which may also have an adverse impact on our business. Finally, initially, the outbreak of COVID-19 led to steep declines in the Dow Industrial Average and other domestic and international stock indices at the end of February and during March and April 2020. While the markets have rebounded nicely since then, recent concerns over the “Delta variant” and the impact it may have on the U.S. and global economies, have led to “risk-off” sessions in the global markets. We are still assessing our business plans and the impact COVID-19 may have on our ability to advance the development of our drug candidates or to raise financing to support the development of our drug candidates, we cannot assure you that we will be able to avoid part or all of any impact from the spread of COVID-19 or its consequences, including downturns in business sentiment generally or in our sector in particular.

Commitments

Effective October 1, 2019, the Company adopted the provision of ASC 842 Leases. The Company determines whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification criteria of finance or operating lease. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, one of the Company’s leases does not provide a readily determinable implicit rate. Therefore, the Company must discount lease payments based on an estimate of its incremental borrowing rate which is based on the interest rate of similar debt outstanding.

Finance Lease

The Company leases Equipment at its laboratory from NFS Leasing, Inc. Lease payments are $2,993.62 per month for eighteen (18) months. The final lease payment is scheduled for January 1, 2023. When the final payment is made, the Company will own the equipment. See Note 11. Leases in the Financial Statements.

Operating Lease

The Company leases its office facility, in Eatontown, New Jersey, from Eaton Holdings LLC. The lease expired on April 30, 2021 and the Company can exercise a renewal option for an additional three years. The company has not exercised its option to renew for 36 months at $2,650 per month. The company is renting month to month at $2,650 per month, while management evaluates whether it will renew the lease. See Note 11. Leases in the Financial Statements.

The Company was not party to any litigation against it and is not aware of any litigation contemplated against it as of December 31, 2021. See also Legal Proceedings below.

We anticipate that any further capital commitments that may be incurred will be financed principally through the issuance of our securities. However, we cannot assure you that additional financing will be available to us on a timely basis, on acceptable terms, or at all.

Related Party Transactions

On October 1, 2020, the Company executed a note with ACS Global, Inc. for a principal amount of $99,125 representing the outstanding balance due to ACS Global. Inc. The Note matures on October 1, 2023 and carries an interest rate of 10% per annum which may be paid in cash or stock. The note is due and payable in full upon maturity. On March1, 2021, the note was increased by $49,000. The note may be prepaid at any time by the Company.

From time to time the Company makes principal payments on the note. During the three months ended December 31, 2021, the Company paid down the note $18,000.

The principal balance of the Note is $130,433 at December 31, 2021 and 147,775 at September 30, 2021.

The Company entered into an agreement with ACS Global, Inc wherein the Company exchanged 1,000,000 newly created Series A Voting C The Company entered into an agreement with ACS Global, Inc wherein the Company exchanged 1,000,000 newly created Series A Voting Convertible Preferred Shares for 20,000,000 common shares held by ACS Global, Inc.

Terms of the Series A Voting Convertible Preferred Shares are as follows:

Each Series A Share is convertible into 20 shares of American CryoStem common stock $0.001 par value, subject to any recapitalization event.

Stated annual dividend of $0.20 per share payable quarterly in cash or stock at the discretion of the Company’s Board of directors.

Each preferred share shall have 20 votes on all matters subject to a Company shareholder vote.

Convertible after one year at the discretion of the ACS Global board of directors.

convertible Preferred Shares for 20,000,000 common shares held by ACS Global, Inc.

Terms of the Series A Voting Convertible Preferred Shares are as follows:

Each Series A Share is convertible into 20 shares of American CryoStem common stock $0.001 par value, subject to any recapitalization event.

Stated annual dividend of $0.20 per share payable quarterly in cash or stock at the discretion of the Company’s Board of directors.

Each preferred share shall have 20 votes on all matters subject to a Company shareholder vote.

Convertible after one year at the discretion of the ACS Global board of directors.

Off Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

Critical Accounting Policies

We prepare financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”), which requires us to make estimates and assumptions that affect the amounts reported in our combined and consolidated financial statements and related notes. See Note 1 and Note 3 to the Financial Statements for more information.

Basis of Presentation

Our financial statements are presented on the accrual basis of accounting in accordance with generally accepted accounting principles in the United State of America, whereby revenues are recognized in the period earned and expenses when incurred.

Management’s Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Long-Lived Assets

We review and evaluate our long-lived assets for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, we compare the assets’ carrying amounts against the estimated undiscounted cash flows to be generated by those assets over their estimated useful lives. If the carrying amounts are greater than the undiscounted cash flows, the fair values of those assets are estimated by discounting the projected cash flows. Any excess of the carrying amounts over the fair values are recorded as impairments in that fiscal period.

Statement of Cash Flows

Recent Accounting Pronouncements

The FASB recently issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, to reduce complexity in applying GAAP to certain financial instruments with characteristics of liabilities and equity.

The guidance in ASU 2020-06 simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock. The guidance in ASC 470-20 applies to convertible instruments for which the embedded conversion features are not required to be bifurcated from the host contract and accounted for as derivatives.

In addition, the amendments revise the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification. These amendments are expected to result in more freestanding financial instruments qualifying for equity classification (and, therefore, not accounted for as derivatives), as well as fewer embedded features requiring separate accounting from the host contract.

The amendments in ASU 2020-06 further revise the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares.

The amendments in ASU 2020-06 are effective for our company for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company is currently assessing the impact of these amendments on its future financial reporting.

In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments-Credit Losses. The new guidance provides better representation about expected credit losses on financial instruments. This Update requires the use of a methodology that reflects expected losses and requires consideration of a broader range of reasonable and supportive information to inform credit loss estimates. This ASU is effective for reporting periods beginning after December 15, 2022, with early adoption permitted. The company is studying the impact of adopting the ASU in fiscal year 2024, and what effect it could have. The Company believes the accounting change would not have a material effect on the financial statements.

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not Applicable

ITEM 4.

CONTROLS AND PROCEDURES

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures

Our principal executive officer and principal financial officer evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of December 31, 2021, and concluded that the disclosure controls and procedures were effective as a whole.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS

We are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our Company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

ITEM 1A.

RISK FACTORS

Not applicable.

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

During the quarter ended December 31, 2020, the Company issued 412,500 shares and received proceeds of $87,500. The share price was determined by agreement with the purchasers, based upon the current market price less a discount for purchasing restricted securities.

During the quarter ended December 31, 2020, the Company issued 80,000 shares and for services valued at $20,000. The share price was determined by agreement with the service provider, based upon the current market price less a discount for restricted securities.

During the quarter ended December 31, 2021, the Company issued 2,050,000 shares and received proceeds of $665,000. The share price was determined by agreement with the purchasers, based upon the current market price less a discount for purchasing restricted securities.

During the quarter ended December 31, 2021, the Company issued 97,396 shares to pay interest due to holders of the bridge notes and convertible notes. The value of the interest paid was $26,537. The share prices were determined by the aggregate market price for the week in which the shares were issued.

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4.

MINE SAFETY DISCLOSURES

Not Applicable

ITEM 5.

OTHER INFORMATION

None

ITEM 6.

EXHIBITS

(a) Exhibits furnished as Exhibits hereto:

Exhibit No.		Description

31.1		Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2		Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1		Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS		XBRL Instance Document
101.SCH		XBRL Taxonomy Extension Schema
101.CAL		XBRL Taxonomy Extension Calculation
101.DEF		XBRL Taxonomy Extension Definition
101.LAB		XBRL Taxonomy Extension Label
101.PRE		XBRL Taxonomy Extension Presentation

SIGNATURES

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 thereunto duly authorized.

	AMERICAN CRYOSTEM CORPORATION

February 22, 2022	By:	/s/ John Arnone
		John Arnone, Chief Executive Officer
		(Principal Executive Officer)

February 22, 2022	By:	/s/ Anthony Dudzinski
		Anthony Dudzinski, Treasurer
		(Principal Financial Officer)

Filing Compare · American CryoStem Corp