UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[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, 2018

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

For the Transition Period from ____________ to ____________

Commission file number: 000-54004

AVANT DIAGNOSTICS, INC.

(Exact name of registrant as specified in its charter)

Nevada

82-4751804

(State or other Jurisdiction

of Incorporation or Organization)

(I.R.S. Employer

Identification No.)

1050 30^th Street NW Suite 107

Washington DC

20007

(Address of Principal Executive Offices)

(Zip Code)

(708) 710-9200

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [ ] No [X]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, 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 the registrant was required to submit and post such files). Yes [ ] No [X]

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

Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] ~~Smaller reporting company [X]~~ (Do not check if a smaller reporting company) Smaller reporting company [X] Emerging growth company [ ]

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

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

The number of outstanding shares of the Registrant’s common stock, par value $0.00001 per share, at ~~January~~February 720, 2019 was 336,957,722.

AVANT DIAGNOSTICS, INC.

FORM 10-Q

~~June~~December 3031, 2018

TABLE OF CONTENTS

		Page
PART I. FINANCIAL INFORMATION
ITEM 1.	Financial Statements	4
	Condensed consolidated balance sheets as of June 30, 2018 (unaudited) and September 30, 2017	4
	Condensed consolidated balance sheets as of December 31, 2018 (unaudited) and September 30, 2018	4
	Condensed consolidated statements of operations and comprehensive loss for the three and nine months ended June 30, 2018 and 2017 (unaudited)	5
	Condensed consolidated statements of operations and comprehensive loss for the three months ended December 31, 2018 and 2017 (unaudited)	5
	Condensed consolidated statement of changes in stockholders’ equity for the nine months ended June 30, 2018 (unaudited)	6
	Condensed consolidated statement of changes in stockholders’ equity for the three months ended December 31, 2018 (unaudited)	6
	Condensed consolidated statements of cash flows for the nine months ended June 30, 2018 and 2017 (unaudited)	7
	Condensed consolidated statements of cash flows for the three months ended December 31, 2018 and 2017 (unaudited)	7
	Notes to condensed consolidated financial statements (unaudited)	8
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3126
ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	3529
ITEM 4.	Controls and Procedures	3529
PART II. OTHER INFORMATION
ITEM 1.	Legal Proceedings	3630
ITEM 1A.	Risk Factors	3733
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	3733
ITEM 3.	Defaults Upon Senior Securities	3833
ITEM 4.	Mine Safety Disclosures	3833
ITEM 5.	Other Information	3834
ITEM 6.	Exhibits	3834
SIGNATURES		3935

-2-

FORWARD-LOOKING STATEMENTS

Statements in this quarterly report may be “forward-looking statements.” Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors, including those described above and those risks discussed from time to time in this prospectus, including the risks described under “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” as discussed in our Annual Report on Form 10-K for the fiscal year ended September 30, ~~2017~~2018 and in other documents which we file with the Securities and Exchange Commission. In addition, such statements could be affected by risks and uncertainties related to our ability to raise any financing which we may require for our operations, competition, government regulations and requirements, pricing and development difficulties, our ability to make acquisitions and successfully integrate those acquisitions with our business, as well as general industry and market conditions and growth rates, and general economic conditions. Any forward-looking statements speak only as of the date on which they are made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of the filing of this annual report, except as may be required under applicable securities laws.

This Management’s Discussion and Analysis of Financial Condition and Results of Operations includes a number of forward-looking statements that reflect Management’s current views with respect to future events and financial performance. Forward-looking statements are projections in respect of future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. Those statements include statements regarding the intent, belief or current expectations of us and members of our management team as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risk and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Forward-looking statements made in this quarterly report on Form 10-Q includes statements about:

●	our ability to maintain pricing;
●	the cyclical nature of the health care industry;
●	deterioration of the credit markets;
●	delays in obtaining required regulatory approvals;
●	our ability to raise additional capital to fund future capital expenditures;
●	increased vulnerability to adverse economic conditions due to indebtedness;
●	competition within the health care industry;
●	asset impairment and other charges;
●	our limited operating history on which investors will evaluate our business and prospects;
●	our ability to obtain raw materials and specialized equipment;
●	technological developments or enhancements;
●	loss of key executives;
●	management control over stockholder voting;
●	the ability to employ skilled and qualified workers;
●	work stoppages and other labor matters;
●	hazards inherent to the health care industry;
●	inadequacy of insurance coverage for certain losses or liabilities;
●	regulations affecting the health care industry;
●	federal legislation and state legislative and regulatory initiatives relating to health care;
●	costs and liabilities associated with environmental, health and safety laws, including any changes in the interpretation or enforcement thereof;
●	future legislative and regulatory developments;
●	our beliefs regarding the future of our competitors;
●	our expectation that the demand for our products will eventually increase; and
●	our expectation that we will be able to raise capital when we need it.

-3-

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

AVANT DIAGNOSTICS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

Balance Sheet

	December 31, 2018			September 30, 2018

ASSETS
Current Assets:
Cash	$	62,248		$	30,896
Total current assets		62,248			30,896
Non-current Assets
Intellectual Property		4,526,989			4,643,099
Website development cost, net		2,922			3,187
Furniture and Equipment		152,209			16,065
Other Assets		24,332			38,132
Patent costs, net		137,965			86,614
Total non-current assets		4,844,417			4,787,097
Total Assets	$	4,906,664		$	4,817,993

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable		1,858,685			1,531,383
Accrued expenses		527,925			508,131
Accrued payroll and benefits		200,635			180,025
Convertible notes payable		56,259			56,259
Convertible notes payable to related party		-			-
Derivative liability		386,267			472,670
Other Liabilities		-			-
Total current liabilities		3,029,772			2,748,468
Total Liabilities		3,029,772			2,748,468

Commitments and Contingencies

Stockholders’ Equity
Preferred stock, $0.001 par value; 50,000,000 shares authorized
Series A preferred stock $0.001 par value; 1,891,160 and 1,631,655 shares outstanding as of December 31, 2018 and September 30, 2018, respectively		1,891			1,632
Series B preferred stock $0.001 par value; 25,614,865 and 25,614,865 shares outstanding as of December 30, 2018 and September 30, 2018, respectively		25,615			25,615
Series C preferred stock $0.001 par value; 150,000 and 150,000 shares outstanding as of December 30, 2018 and September 30, 2018, respectively		150			150
Common Stock $0.00001 par value, 450,000,000 shares authorized; 336,957,722 and 336,957,722 shares outstanding as of December 31, 2018 and September 30, 2018 respectively		3,370			3,370
Warrants		67			67
Additional paid-in capital		35,828,751			35,569,540
Accumulated deficit		(33,982,951	)		(33,530,848	)
Total Stockholders’ Equity		1,876,893			2,069,526
Total Liabilities and Stockholders’ Equity		4,906,664		$	4,817,993

	June 30, 2018			September 30, 2017
	(Unaudited)
ASSETS
Current Assets:
Cash		267,938		$	1,348
Accounts receivable		-			-
Prepaid expenses		-			-
Total current assets		267,938			1,348
Non-current Assets
Intellectual Property		4,752,442			5,078,060
Website development cost, net		3,453			4,250
Other Assets		40,980			46,560
Patent costs, net		89,707			98,987
Total non-current assets		4,886,582			5,227,857
Total Assets		5,154,520		$	5,229,205
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable		1,477,827		$	1,106,607
Accrued expenses		511,734			542,340
Accrued payroll and benefits		180,106			277,175
Notes payable		65,259			-
Convertible notes payable to related party		-			400,000
Derivative liability		452,021			1,926,800
Total current liabilities		2,686,948			4,252,921
Total Liabilities		2,686,948			4,252,921
Commitments and Contingencies
Stockholders’ Equity
Preferred stock, $0.001 par value; 50,000,000 shares authorized
Series A preferred stock $0.001 par value; 1,446,160 and -0- shares outstanding as of June 30, 2018 and September 30, 2017 respectively		1,446			-
Series B preferred stock $0.001 par value; 25,614,869 and -0- shares outstanding as of June 30, 2018 and September 30, 2017 respectively		25,615			-
Common Stock ($0.00001 par value), 450,000,000 shares authorized; 336,957,722 and 303,927,098 shares outstanding as of June 30, 2018 and September 30, 2017, respectively		3,370			3,040
Additional paid-in capital		35,134,477			32,132,294
Accumulated deficit		(32,697,336	)		(31,159,051	)
Total Stockholders’ Equity		2,467,572			976,283
Total Liabilities and Stockholders’ Equity		5,154,520		$	5,229,205

See accompanying notes which are an integral part of these condensed consolidated financial statements.

-4-

AVANT DIAGNOSTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(unaudited)

	For the three months ended June 30						For the nine months ended June 30,
	For the three months ended December 31
	2018			2017			~~2018~~			~~2017~~
Revenue		-		$	-			-			~~255,951~~
Cost of revenue		-			-			-			~~24,787~~
Gross profit		-			-			-			~~231,164~~
Operating expenses:
Selling, general and administrative		~~510~~277,~~141~~004			~~810~~247,~~127~~832			~~995,390~~			~~1,806,998~~
Amortization Fees		-			-			-			-
Research and development		-			-			-
Research and development - license acquired		-			-			-
Professional fees		~~278~~240,~~029~~959			1112,~~997,212~~803			~~517,654~~			~~6,896,682~~
Merger costs		-			-			-			-
Total operating expenses		~~788~~517,~~170~~962			2360,~~807,339~~635			~~1,513,044~~			~~8,703,680~~
Loss from operations		(~~788~~517,~~170~~962	)		(2360,~~807,339~~635	)		~~(1,513,044~~	)		~~(8,472,516~~	)
Other income
Interest income		-			~~4,034~~-			-			~~4,034~~
Gain on other comprehensive income		-			6837,~~897~~478			~~37,478~~			~~68,897~~
Unrealized Gain on Investment		40(13,~~980~~800	)		-			~~40,980~~
Total other expense		40(13,~~980~~800	)		7237,~~931~~478			~~78,458~~			~~72,931~~
Other expense
Interest expense		36,~~564~~744			3633,~~742~~738			~~(7,515~~	)		~~553,315~~
Other Finance Charges		-			45,500						542,082
Loss on change in fair value of derivative		(86,403	)		(89,620	)
Loss on change in fair value of derivative		200,659			(334,711	)		111,214			(75,300	)
Total other expense		(79,659	)		(55,882	)
Total other expense		204,223			(252,469	)		103,699			1,020,097
Net Loss		(452,103	)		(267,276	)
Net Loss		(951,414	)	$	(2,481,939	)		(1,538,285	)		(9,419,682	)
Loss per Share:
Loss per Share:
Basic and diluted net loss per common share outstanding		(0.00	)		(0.00	)
Basic and diluted net loss per common share outstanding		(0.00	)	$	(0.01	)		(0.01	)		(0.05	)
Basic and diluted weighted average number of common shares outstanding		248,135,340			200,361,619
Basic and diluted weighted average number of common shares outstanding		204,882,644			187,261,237			204,882,644			175,944,679
Comprehensive loss:
Comprehensive loss:
Net loss		(452,103	)		(267,276	)
Net loss		(951,414	)	$	(2,481,939	)		(1,538,285	)		(9,419,682	)
Unrealized loss on available for sale securities		-			-
Unrealized loss on available for sale securities		-			-			-			-
Comprehensive loss		(452,103	)		(267,276	)
Comprehensive loss		(951,414	)	$	(2,481,939	)		(1,538,285	)		(9,419,682	)

See accompanying notes which are an integral part of these condensed consolidated financial statements.

-5-

AVANT DIAGNOSTICS, INC.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

~~NINE~~THREE MONTHS ENDED ~~JUNE~~December 3031, 2018

(unaudited)

	Preferred stock Series A and B				Common Stock				Additional Paid-in		Accumulated			Total Stockholders’
	Warrants				Preferred Stock				Common Stock					Additional Paid-in			Accumulated			Total Stockholders’
	Shares		Amount		Shares		Amount		~~Capital~~Shares		~~Deficit~~Amount			~~Equity~~Capital			Deficit			Equity
Balances at September 30, 2017		-	$	-		303,927,098	$	3,040	$	32,132,294	$	(31,159,051	)	$	976,283
Balances at September 30, 2018		67	$	67		27,397	$	27,397		336,957,722	$	3,370		$	35,569,540		$	(33,530,848	)	$	2,069,526
Sale of common stock		-		-		-		-		-		-			-			-			-
Sale of Preferred Stock		~~930~~-		~~930~~-		-259		-259		~~929,061~~-		-			~~929~~259,~~991~~211			-			259,470
Common stock issued for services		-		-		2,938,551		29		59,142		-			59,171
Warrants issued for service		-		-		-		-		-		-			-			-			-
Stock based compensation		-		-		-		-		-		-			-
Common stock issued for services		-		-		-		-		-		-			-			-			-
Common stock issued to pay debt		-		-		30,092,073		301		373,139		-			373,440
Stock based compensation		-		-		-		-		-		-			-			-			-
Preferred stock issued to pay debt		26,131		26,131						1,640,841					1,666,972
Common stock issued to pay debt		-		-		-		-		-		-			-			-			-
Adjustment related to prior period		-		-		-		-		-		-			-
Preferred stock issued to pay debt		-		-		-		-		-		-			-			-			-
Reclass derivative liability to equity upon note payments		-		-		-		-		-		-			-
Adjustment related to prior period		-		-		-		-		-		-			-			-			-
Net loss		-		-		-		-		-		(1,538,285	)		(1,538,285	)
Reclass derivative liability to equity upon note payments		-		-		-		-		-		-			-			-			-
Balances at June 30, 2018		27,061	$	27,061		336,957,722	$	3,370	$	35,134,477	$	(32,697,336	)	$	2,467,572
Net loss		-		-		-		-		-		-			-			(452,103	)		(452,103	)
Balances at December 31, 2018		67	$	67		27,656	$	27,656		336,957,722	$	3,370		$	35,828,751		$	(33,982,951	)	$	1,876,893

See accompanying notes which are an integral part of these condensed consolidated financial statements.

-6-

AVANT DIAGNOSTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

	For the nine months ended
	For the three months ended
	June 30,
	December 31,
	2018	~~2018~~		2017	~~2017~~
Cash Flows from Operating Activities:
Net loss	$	(1452,~~538,285~~103	)	$	(9267,~~419,682~~276	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		~~335~~9,~~695~~024			~~335~~111,~~737~~899
Amortization of debt discounts		-			-
Amortization of patent and web design costs
Research and development - license acquired		-			-
Stock-based compensation expenses		~~59,472~~-			759,~~770,153~~171
Loss on change in fair value of derivatives		(186,~~474,779~~403	)		1(69,~~481,449~~620	)
Changes in operating assets and liabilities:
Accounts receivable		-			~~20,883~~-
Prepaid Expenses		-			-
Accounts payable		371,222			330,230
Furniture and Equipment		(136,142	)		-
Accounts payable		327,302			100,937
Accrued payroll and benefits		-			-
Due to related party		~~(97~~20,~~069~~610	)		1617,~~956~~762
Accrued liabilities		~~(30~~19,~~606~~794	)		4876,~~770~~746
Net cash used in operating activities		(2297,~~374,351~~919	)		~~584~~29,~~496~~619
Cash Flows from Investing Activities:
Cash acquired with acquisition of Theranostics Health, Inc. assets		-			-
Licensing costs		-56,000			~~(15,127~~-	)
Other Assets		513,~~580~~800			~~(227~~20,~~521~~000	)
Website development costs		-			-
Net cash provided by (used in) investing activities		569,~~580~~800			~~(242~~20,~~648~~000	)
Cash Flows from Financing Activities:
Proceeds from sale of common stock, net		373,139			80
Proceeds from the issuance of Preferred Stock		259,470			-
Proceeds from sale of preferred stock, net		2,596,963
Net cash provided by financing activities		259,470			-
Proceeds from convertible notes payable		65,259			(275,086	)
Net increase in cash		31,352			49,619
Proceeds from convertible notes payable, related party		(400,000	)		-
Cash at beginning of period		30,896			1,348
Net cash provided by financing activities		2,635,361			(275,006	)
Cash at end of period	$	62,248		$	50,967
Net increase in cash		266,590			66,842
Cash at beginning of period		1,348			851
Cash at end of period	$	267,938		$	67,693
Supplemental disclosure of noncash investing and financing activities:
Net liabilities assumed in connection with recapitalization	$	-		$	-
Effect of recapitalization	$	-		$	-
Shares issued in settlement of related party debt	$	-		$	-
Reclass derivative liability to equity upon note payment	$	-		$	-
Common stock issued to acquire net assets of Theranostics Health, Inc.	$	-		$	-
Common stock issued to acquire net assets of Amarantus Diagnostics, Inc.		-		$	-

See accompanying notes which are an integral part of these condensed consolidated financial statements

-7-

AVANT DIAGNOSTICS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS December 31, 2018

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2018

(UNAUDITED)

NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Avant Diagnostics, Inc. (“Avant”, “we” or the “Company”), ~~was~~a ~~incorporated~~Nevada oncorporation ~~October~~established ~~16, 2008~~ in 2009, ~~the~~is ~~State~~a ofcommercial-stage ~~Nevada~~molecular asdata-generating ~~“Oreon~~company ~~Rental~~that ~~Corporation”.~~focuses Aton the ~~time~~development ofand ~~its~~commercialization ~~incorporation,~~of ~~the~~a ~~management~~series of ~~the Company~~proprietary ~~intended~~data-generating toassays ~~operate~~that ~~electronics~~provide ~~rental~~important ~~stores~~actionable ininformation ~~Ternopil~~for physicians and ~~other~~patients ~~similar~~in ~~cities throughout Ukraine. However, at~~ the ~~time~~areas of ~~its~~ ~~incorporation~~cancers. ~~and~~Avant was ~~its~~originally ~~initial~~named ~~public~~Arrayit ~~offering~~Diagnostics, ofInc. ~~common~~which ~~stock~~was informed ~~October~~as ~~2008,~~a ~~the~~majority ~~Company~~owned ~~did~~subsidiary ~~not~~of ~~own~~Arrayit ~~any~~Corporation ~~such stores, nor~~(“Arrayit”) ~~did~~through ~~it have any ongoing business operations. The Company underwent~~ a ~~change~~technology intransfer ~~management~~ in ~~January~~July ~~2010~~2009. ~~Following~~In ~~the~~January ~~change in management~~2013, the Company ~~decided~~effected ~~not~~a toname ~~proceed~~change ~~with its original plan of operations and~~ to ~~shift~~Avant ~~its~~Diagnostics, ~~business~~Inc. ~~focus to that~~In ofMay ~~an independent oil and gas company engaged in the acquisition, drilling and production~~ of ~~oil and natural gas properties and prospects. During 2014~~2016, the Company ~~wound~~acquired ~~down~~assets ~~its~~from ~~oil~~Theranostics ~~and~~Health, ~~natural~~Inc. ~~gas operations~~ and ~~decided~~Amarantus ~~to complete a reverse recapitalization with Avant~~ Diagnostics, Inc., ato ~~Nevada~~significantly ~~Corporation~~expand its ~~established~~pipeline inand ~~2009~~position itself for commercialization.

~~The~~Basis ~~Company is a commercial-stage molecular data-generating company that focuses on the development and commercialization~~ of a series of proprietary data-generating assays that provide important actionable information for physicians and patients in the areas of oncology. Avant was originally named Arrayit Diagnostics, Inc. which was formed as a majority owned subsidiary of Arrayit Corporation (“Arrayit”) through a technology transfer in July 2009. In January 2013, the Company effected a name change to Avant Diagnostics, Inc.Presentation

~~Acquisition~~Effective December 29, 2014, we completed a reverse recapitalization, as agreed in the definitive Agreement and Plan of Reorganization, of 100% of the outstanding equity interests of American Liberty Petroleum Corp. (“ALP”). Avant shareholders received approximately 74,500,000 shares of common stock for a 93% equity interest in ALP. Such share exchange was calculated based on a one-for-one conversion ratio after a 1 for 17 reverse stock split of ALP which was subsequently effected in March 2015. The split affected the ALP common stock and not the Avant common stock. All references in these consolidated financial statements to the number of shares, options and other common stock equivalents, price per share and weighted-average number of shares outstanding of common stock have been adjusted to retroactively reflect the effect of the stock split. Per the terms of the Agreement and Plan of Reorganization, ALP was delivered with zero assets and $70,000 in liabilities at time of closing. Following the reverse merger, we changed the name of ALP to “Avant Diagnostics, Inc.” The transaction was regarded as a reverse recapitalization whereby Avant was considered to be the accounting acquirer as it retained control of ALP after the exchange. Although ALP is the legal parent company, the share exchange was treated as a recapitalization of ALP. Avant is the continuing entity for financial reporting purposes. Accordingly, the assets and liabilities and the historical operations reflected in the financial statements are those of Avant for all periods presented.

~~Effective~~As of December 2931, ~~2014~~2018, ~~the~~there ~~Company~~remained ~~completed~~ a ~~reverse~~total ~~recapitalization~~3, ~~as agreed in the definitive Agreement and Plan of Reorganization~~510, of000 ~~100% of the outstanding equity interests of American Liberty Petroleum Corp. (“ALP”). Avant stockholders received 74,354,139~~ shares of common stock ~~for~~that astill ~~93%~~had ~~equity~~not ~~interest~~been inconverted ~~ALP.~~by ~~Such~~Avant ~~share exchange was calculated based on a one-for-one~~shareholders ~~conversion~~as ~~ratio~~part ~~after~~of athe ~~1 for 17~~ reverse ~~stock split of ALP which was subsequently effected in March 2015~~recapitalization. The ~~split~~Agreement ~~affected the~~and ~~ALP~~Plan ~~common~~of ~~stock~~Reorganization ~~and~~does not ~~the~~provide ~~Avant~~for ~~common~~cash ~~stock. All references~~ in ~~the~~lieu ~~accompanying~~of ~~consolidated financial statements to the~~exchange ~~number~~ of shares, ~~options~~ and ~~other~~provides ~~common~~that ~~stock~~upon ~~equivalents, price per share and weighted-average number of shares outstanding of common stock have been adjusted to retroactively reflect~~ the ~~effect~~merger, of the ~~reverse~~shareholders ~~stock~~acquired ~~split.~~their ~~Per~~rights ~~the~~in ~~terms of the Agreement and Plan of Reorganization,~~ ALP ~~was~~shares ~~delivered with zero assets~~ and ~~$70,000~~all inoutstanding ~~liabilities~~shares ~~at time~~ of ~~closing. Following the reverse~~ ~~merger,~~Avant wewere ~~changed~~deemed ~~the name of ALP~~ to ~~“Avant~~be ~~Diagnostics, Inc~~cancelled.” ~~The~~There ~~transaction~~is ~~was~~no ~~regarded~~timeframe as ~~a reverse recapitalization whereby Avant was considered~~ to bewhen the ~~accounting~~shareholders ~~acquirer~~must asconvert ittheir ~~retained~~shares ~~control of ALP after the exchange. Although ALP is the legal parent company~~and, ~~the share exchange was treated~~ as ~~a recapitalization~~ of ~~ALP. Avant is~~ the ~~continuing entity for financial~~ ~~reporting~~date ~~purposes.~~of ~~Accordingly~~this report, the ~~assets~~shares ~~and~~have ~~liabilities~~not ~~and~~been ~~the historical operations reflected in the financial statements are those of Avant for all periods presented~~issued.

AsOn ofJanuary ~~June 30~~27, ~~2018~~2015, ~~there~~the ~~remained~~Company effected a ~~total~~change ofin ~~3,510,000~~the ~~shares~~par value of its common stock ~~that~~to ~~still~~$0.00001 ~~had~~per ~~not been converted by Avant stockholders as part of the reverse recapitalization~~share. ~~The Agreement and Plan of Reorganization does not provide for cash in lieu of exchange of shares and provides that upon the merger~~Accordingly, the ~~stockholders acquired their rights in ALP shares and all outstanding shares of~~Company ~~Avant~~has ~~were~~recorded ~~deemed~~a toretroactive bereclassification ~~cancelled. There is no timeframe as~~ to ~~when~~reflect the ~~stockholders~~change ~~must~~in ~~convert~~par ~~their~~value ~~shares~~on ~~and,~~its asconsolidated ofbalance ~~the date~~sheets offor ~~this~~all ~~report, the shares have not been issued~~periods presented.

On May 11, 2016, the Company acquired substantially all of the assets and assumed certain liabilities related to the business of Theranostics Health, Inc., a Delaware corporation (“THI”). THI was a leading developer of phospho-proteomic technologies for measuring the activation status of key signaling pathways that are instrumental in the development of companion diagnostics for molecular-targeted therapies in oncology, which the Company calls Theralink® technology. THI used Theralink® to support the drug development programs of many major pharmaceutical and biotechnology drug development companies. Theralink® had an initial commercial launch under the Clinical Laboratory Improvement Amendments (CLIA) regulatory pathway from late 2014 to late 2015 where important information was obtained regarding cost of goods sold (COGS), reimbursement expectations, scale and adoption. Theralink® was withdrawn from the commercial market in late 2015 due to an inability to reach profitability, which precipitated the sale of assets from THI to Avant. See Note 3.

The Company also owns an exclusive license and has distribution rights for OvaDx®, a noninvasive proteomics diagnostic screening test for the early detection of ovarian cancer. Prior to the acquisitions of assets from THI, the Company’s primary activities since inception had been focused on preparing sample specimens in order for OvaDx® to be further tested according to the guidelines outlined by the Food & Drug Administration for the commercial development of diagnostic tests.

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Recent Developments

During the fiscal year ended September 30, ~~2017~~2018, the Company curtailed its operations as a result of its limited operating capital. Since the end of the fiscal year ended September 30, ~~2017~~2018 through ~~September~~the ~~30,~~date ~~2018~~of this filing, we have focused on executing our business ~~plan~~ plan by commercializing our proprietary data-generating technology in the area of oncology, as well as focusing on the relocation ~~and~~ and opening of a revenue producing CAP/CLIA laboratory. The Company is focused on improving revenues in the pharma services business by acquiring customers with oncology-focused preclinical and clinical drug development programs. The Company is establishing business relationships with pharmaceutical companies in early and late stage clinical development.

In connection with the purchase of the business assets and certain liabilities of Theranostics Health, Inc. (“THI”), the Company acquired a CLIA laboratory located in Gaithersburg, Maryland. THI was a leading developer of proteomic technologies for measuring the activation status of key signaling pathways that are instrumental in the development of companion diagnostics for molecular-targeted therapies. THI has used these proteomic technologies to support the drug development programs of most major pharmaceutical and biotechnology drug development companies. THI is also providing these testing capabilities to clinical oncologists to advance personalized medicine through its TheraLink® data-generating assays.

As a result of the cost cutting measures taken during the fiscal year ended September 30, ~~2017~~2018, the Company substantially curtailed the use of the CLIA laboratory. As a result of these cost cutting measures, the Company was unable to timely make certain payments on the terms of the lease. As a result, the Company defaulted on its lease at the location of the Maryland laboratory and the landlord held the equipment located in the facility as collateral for amounts owed under the lease. AVDX Investors Group, LLC (“AVDX”), an entity controlled by Jeff Busch, our Executive Chairman (“Busch”), loaned the Company the capital to purchase the equipment. The note issued to AVDX is a demand promissory note that bears no interest and is secured by the equipment. During the fiscal year ended September 30, 2018 and until this filing, AVDX, Busch and his affiliated entities also loaned and/or paid certain obligations amounts on behalf of the Company.

Once the Company reacquired the equipment for the laboratory, management undertook a review of the Company’s current operations and decided to move the CLIA laboratory from Maryland to Golden, Colorado (the “New Lab”) In connection with the relocation to the New Lab, the Company executed a lease, built out the space for the New Lab and moved the equipment from Maryland to Colorado. In connection with this relocation, management, in consultation with scientists from George Mason University, the licensor of the Company’s Theralink technology (“Licensor”), evaluated the status of the Company’s equipment. It was determined that the equipment was not properly maintained and was left in poor working order by prior management. As a result, the Company had to spend approximately $152,209 during the ~~fiscal~~calendar year ended ~~September~~December 3031, 2018 to have the equipment ~~fixed~~ refurbished for the New Lab, so the Licensor could assist management with the set up and validation of the equipment to be used for the technology. The Company continues to build out the lab and plans to have it operational during the fiscal year ended September 30, 2019.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for annual financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the condensed consolidated financial statements of the Company as of December 31, 2018 and the condensed consolidated results of its operations and cash flows for the three months ended December 31, 2018. The results of operations for the three months ended December 31, 2018 are not necessarily indicative of the operating results for the full year ending December 31, 2018, or any other period. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related disclosures of the Company as of September 30, 2018 and for the year then ended, which was filed with the Securities and Exchange Commission on Form 10-K on March 1, 2019.

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The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for annual financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the condensed consolidated financial statements of the Company as of June 30, 2018 and the condensed consolidated results of its operations and cash flows for the nine months ended June 30, 2018. The results of operations for the nine months ended June 30, 2018 are not necessarily indicative of the operating results for the full year ending September 30, 2018, or any other period. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related disclosures of the Company as of September 30, 2017 and for the year then ended, which was filed with the Securities and Exchange Commission on Form 10-K on December 5, 2018.

NOTE 2 – GOING CONCERN AND MANAGEMENT’S LIQUIDITY PLANS

Since inception, the Company has financed its operations primarily through equity and debt financings and advances from related parties. As of ~~June~~December 3031, 2018, the Company had an accumulated deficit of $3233.7098 million. During the ~~nine~~three months ended ~~June~~December 3031, 2018 and 2017, the Company incurred net losses of $~~1.54~~452,103 ~~million~~ and $~~9.42 million~~267,276, respectively, and used cash in operating activities of of ($2297,~~374,351~~919) and provided $~~584~~29,~~496~~619, respectively. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

The Company recognizes it will need to raise additional capital in order to fund operations, meet its payment obligations and execute its business plan. There is no assurance that additional financing will be available when needed or that management will be able to obtain financing on terms acceptable to the Company and whether the Company will generate revenues, become profitable and generate positive operating cash flow.

If the Company is unable to raise sufficient additional funds on favorable terms, it will have to develop and implement a plan to further extend payables and to raise capital through the issuance of debt or equity on less favorable terms until sufficient additional capital is raised to support further operations. There can be no assurance that such a plan will be successful. If the Company is unable to obtain financing on a timely basis, the Company could be forced to sell its assets, discontinue its operations and/or pursue other strategic avenues to commercialize its technology, and its intellectual property could be impaired.

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company, AVDX, and ~~AVDX~~its wholly owned subsidiary, Avant Diagnostics Acquisition Corporation (ADAC). ADAC and American Liberty Petroleum Corp. was dissolved. All intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of expenses during the reporting period. The Company’s significant estimates include the valuation of derivative liabilities, useful lives of long-lived assets, the valuation of debt and equity instruments, the valuation allowance relating to stock-based compensation and the Company’s deferred tax assets. Actual results could differ from those estimates.

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Revenue Recognition

For revenue from product sales and services, the Company recognizes revenue in accordance with Accounting Standards Codification subtopic 605-10, Revenue Recognition (“ASC 605-10”) which requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. The Company defers any revenue for which the product or services has not been delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required.

The Company derives its revenue from the performance under research and development contracts. These contracts require the Company to provide services directed towards specific objectives and include developmental milestones and deliverables. Up-front payments are recorded as deferred revenue and recognized when milestones are achieved. The Company may be reimbursed for certain costs incurred in preforming the specific research and development activities and records the reimbursement as revenues. As of June 30, 2018, and September 30, 2017, deferred revenue was $10-~~0- and $-0-, respectfully.~~

The Company derives its revenue from the performance under research and development contracts. These contracts require the Company to provide services directed towards specific objectives and include developmental milestones and deliverables. Up-front payments are recorded as deferred revenue and recognized when milestones are achieved. The Company may be reimbursed for certain costs incurred in preforming the specific research and development activities and records the reimbursement as revenues. As of December 31, 2018, and September 30, 2018, deferred revenue was $-0- and $-0-, respectfully.

Cost of Sales and Service

The cost of sales and service consists of the cost of labor, equipment depreciation, and supplies and materials.

Accounts Receivable

Trade receivables are carried at their estimated collectible amounts. Trade credit is generally extended on a short-term basis; thus trade receivables do not bear interest. Trade accounts receivable are periodically evaluated for collectability based on past credit history with customers and their current financial condition.

Allowance for Doubtful Accounts

Any charges to the allowance for doubtful accounts on accounts receivable are charged to operations in amounts sufficient to maintain the allowance for uncollectible accounts at a level management believes is adequate to cover any probable losses. Management determines the adequacy of the allowance based on historical write-off percentages and the current status of accounts receivable. Accounts receivable are charged off against the allowance when collectability is determined to be permanently impaired. As of ~~June 30,~~December 31, 2018 and September 30, ~~2017~~2018, allowance for doubtful accounts was $-0-.

Property and Equipment

Property and equipment are stated at cost. When retired or otherwise disposed, the related carrying value and accumulated depreciation are removed from the respective accounts and the net difference less any amount realized from disposition, is reflected in earnings. For financial statement purposes, property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives as follows:

Office equipment	5 years
Lab equipment	35 ~~to 7~~ years

Net Loss per Share of Common Stock

The Company computes basic net loss per share by dividing net loss per share available to common stockholders by the weighted average number of common shares outstanding for the period, adjusted to give effect to the 17-for-1 reverse stock split, which was effective in the market in March 2015, and excludes the effects of any potentially dilutive securities. Diluted earnings per share, if presented, would include the dilution that would occur upon the exercise or conversion of all potentially dilutive securities into common stock using the “treasury stock” and/or “if converted” methods as applicable. The computation of basic and diluted loss per share for the ~~nine~~three months ended ~~June~~December 3031, 2018 and 2017 excludes potentially dilutive securities when ~~their~~ their inclusion would be anti-dilutive, or if their exercise prices were greater than the average market price of the common stock ~~during~~ during the period.

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The following securities are excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive:

	June 30, 2018		June 30, 2017
	December 31, 2018		December 31, 2017
Shares issued upon conversion of convertible notes		-		-

Intangible Assets

The Company’s intangible assets consists of the following:

Intellectual property for the technology transfer agreement and licensing payments for use of various patents for its worldwide exclusive licensed rights to OvaDx, a diagnostic screening test for the early detection of ovarian cancer which the Company is reviewing to assess the commercialization plan. The carrying value of ~~June~~December 3031, 2018 and ~~March~~September 3130, 2018 was $1,~~208~~125,~~506~~161 and $1,~~250~~166,~~179~~834, respectively.

Intellectual property acquired from the THI have led to the development of proteomic technologies for measuring the activation status of key signaling pathways that are instrumental in the development of companion diagnostics for molecular-targeted therapies. In the past, the Company used these proteomic technologies to support the drug development programs of many major pharmaceutical and biotechnology drug development companies. The carrying value of ~~June~~December 3031, 2018 and ~~March~~September 3130, 2018 was $3,~~543~~410,~~935~~202 and $3,~~610~~477,~~802~~068, respectively.

Intangible assets with finite lives are amortized over their estimated useful lives. Intangible assets with indefinite lives are not amortized, but are tested for impairment annually. The Company’s intangible asset with a finite life included intellectual property acquired from THI Acquisition, capitalized website development costs, ~~and~~ patent costs, and lab equipment, which are being amortized over their economic or legal life, whichever is shorter.

The gross carrying amounts and accumulated amortization related to acquired intangible assets as of ~~June~~December 3031, 2018 are as follows (in thousands, except year amounts):

	Book Value		Additions		Total		Remaining		Amortization Expense for the		Book Value
	as of		~~Additions~~during the		~~Total~~after		~~Remaining~~life		~~for the~~ Quarter Ended		~~Value~~as of
Description	~~March~~September 3130, 2018		~~during the~~ year		~~after~~ Additions		~~life~~ In years		~~Ended~~December ~~June 30~~31, 2018		asDecember ~~of June 30~~31, 2018
License Rights to OvaDx		1,~~250~~167		-		1,~~250~~167		9		42		1,~~209~~125
THI Acquisition on May 11, 2016		3,~~611~~477		-		3,~~611~~477		15		67		3,~~544~~410
Website development cost		43		-		43		5		0-		3
Patent costs		9387		-56		93143		9		35		90138
		4,958				4,958				112		4,846
Lab Equipment		15		136		151		5		8		144
		4,749		192		4,941				121		4,820

The Company incurred amortization expense associated with its finite-lived intangible assets of $~~112~~121,000 for the three months ended ~~June~~December 3031, 2018.

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Convertible Instruments

U.S. GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. An exception to this rule is when the host instrument is deemed to be conventional, as that term is described under applicable ASC 480-10.

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When the Company has determined that the embedded conversion options should not be bifurcated from their host instruments, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption.

Derivative Financial Instruments

The Company classifies as equity any contracts that (i) require physical settlement or net-share settlement or (ii) provide the Company with a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement) providing that such contracts are indexed to the Company’s own stock. The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the Company’s control) or (ii) gives the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement).

The Company assesses classification of its common stock purchase warrants, if any, and other free-standing derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required.

The Company’s free-standing derivatives consist of embedded conversion options with issued convertible notes. The Company evaluated these derivatives to assess their proper classification in the condensed consolidated balance sheets as of ~~June~~December 3031, 2018 using the applicable classification criteria enumerated under ASC 815-Derivatives and Hedging. The Company determined that certain embedded conversion features do not contain fixed settlement provisions. The convertible notes contain a conversion feature such that the Company could not ensure it would have adequate authorized shares to meet all possible conversion demands.

As such, the Company was required to record the debt derivatives which do not have fixed settlement provisions as liabilities and mark to market all such derivatives to fair value at the end of each reporting period.

Recent Accounting Pronouncements

Cash Flows

In August 2016, the FASB issued ASU No. 2016-15 Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments, which addresses specific cash flow classification issues where there is currently diversity in practice including debt prepayment and proceeds from the settlement of insurance claims. ASU 2016-15 is effective for annual periods beginning after December 15, 2017, with early adoption permitted. The Company elected to early adopt ASU 2016-15 effective as of September 30, 2016. The adoption of ASU 2016-15 did not impact our results of operations or cash flows.

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In November 2016, the FASB issued ASU No. 2016-18 Statement of Cash Flows - Restricted Cash, which requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. ASU 2016-18 is effective for annual periods beginning after December 15, 2017, with early adoption permitted. The Company elected to early adopt ASU 2016-18 including retrospective adoption for all prior periods. The impact of the adoption of ASU 2016-18 is the addition of a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet and was not material to the results.

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Stock Compensation

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendment is to simplify several aspects of the accounting for share-based payment transactions including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public entities, the amendments in ASU 2016-09 are effective for interim and annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact that ASU 2016-09 will have on its consolidated financial statements and related disclosures.

In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, which clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. It is effective prospectively for the annual period ending December 31, 2018 and interim periods within that annual period. Early adoption is permitted. The Company is currently evaluating the impact of adopting this standard on the consolidated financial statements and disclosures, but does not expect it to have a significant impact.

The Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award. For employees and directors, the fair value of the award is measured on the grant date and for non-employees, the fair value of the award is generally re-measured on vesting dates and interim financial reporting dates until the service period is complete. The fair value amount is then recognized over the period during which services are required to be provided in exchange for the award, usually the vesting period. Stock-based compensation expense is recorded by the Company in the same expense classifications in the condensed consolidated statements of operations and comprehensive loss, as if such amounts were paid in cash.

Leases

In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842) which supersedes FASB ASC Topic 840, Leases (Topic 840) and provides principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than twelve months regardless of classification. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. The standard will be effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted upon issuance. The Company is currently evaluating the impact that ASU 2016-02 will have on its consolidated financial statements and related disclosures.

Business Combinations

In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805) Clarifying the Definition of a Business” The amendments in this ASU clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. Early adoption is permitted, including for interim or annual periods for which the financial statements have not been issued or made available for issuance. The Company adopted this guidance as of September 30, 2016.

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In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815). The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, Debt—Debt with Conversion and Other Options), including related EPS guidance (in Topic 260). The amendments in Part II of this Update recharacterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. Those amendments do not have an accounting effect. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Company is currently evaluating the impact of adopting this standard on the consolidated financial statements and disclosures.

Subsequent Events

The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the condensed consolidated financial statements, except as disclosed.

NOTE 4 - FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company measures the fair value of financial assets and liabilities based on the guidance of ASC 820 “Fair Value Measurements and Disclosures” which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

ASC 820 describes three levels of inputs that may be used to measure fair value:

	Level 1 —	quoted prices in active markets for identical assets or liabilities

	Level 2 —	quoted prices for similar assets and liabilities in active markets or inputs that are observable

	Level 3 —	inputs that are unobservable based on an entity’s own assumptions, as there is little, if any, related market activity (for example, cash flow modeling inputs based on assumptions)

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Financial liabilities as of ~~June~~December 3031, 2018 measured at fair value on a recurring basis are summarized below:

The Company determined that certain conversion option related to convertible notes issued did not have fixed settlement provisions and are deemed to be derivative financial instruments, since the exercise price was subject to adjustment based on certain subsequent equity transactions that would change the exercise price, the Company elected to use a lower reset provision. Accordingly, the Company was required to record such conversion option as a derivative liability and mark such derivative to fair value each reporting period. Such instrument was classified within Level 3 of the valuation hierarchy. For the purpose of calculating the potential embedded derivatives, the Company utilized an estimated conversion price of $0.0302 in estimating the fair value of the conversion option.

The fair value of the conversion option was calculated using a binomial lattice formula with the following range of assumptions during the ~~nine~~three months ~~June~~December 3031, 2018:

	At Inception			~~June~~December 3031, 2018
Common Stock Estimated Fair Value	$	0.05		$	0.0302
Conversion Price per share		0.05-0.10			0.015-0.0625
Conversion Shares		3,125,000			0-
Call Option Value		0.0104 to 0.0226			0.~~002~~00 to 0.~~017~~013
Dividend Yield		0.00	%		0.00	%
Volatility		120.00	%		6568.6010	%
Risk-free Interest rate		0.68	%		12.5251% to 2.63	%
Contractual Term		0.75 to 1.00 years			1.0858 to 2.0090 years

In the opinion of management, there is not a sufficient viable market for the Company’s common stock to determine its fair value, therefore management considers recent sales of its common stock to independent qualified investors and estimated fair value of net assets acquired through issuance of common stock. Since the valuation model inputs are not fixed, management has estimated the fair value to be utilizing a binomial lattice model. Considerable management judgment is necessary to estimate the fair value at each reporting period. Accordingly, actual results could vary significantly from management’s estimates.

Conversion price per share and conversion shares are based on the lower of reset or floor price of the respective notes.

The risk-free interest rate is the United States Treasury rate on the measurement date having a term equal to the remaining contractual life of the instrument. Since the Company’s stock has not been publicly traded with significant volume, the Company is utilizing an expected volatility based on a review of historical volatilities over a period of time equivalent to the expected life of the instrument being valued of similarly positioned public Companies within. The dividend yield is 0% as the Company has not made any dividend payment and has no plans to pay dividends in the foreseeable future.

Level 3 liabilities are valued using unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the derivative liabilities.

Level 3 financial liabilities consist of the derivative liabilities for which there is no current market for these securities such that the determination of fair value requires significant judgment or estimation. Changes in fair value measurements categorized within Level 3 of the fair value hierarchy are analyzed each period based on changes in estimates or assumptions and recorded as appropriate.

-16-

Significant observable and unobservable inputs include stock price, exercise price, annual risk-free rate, term, and expected volatility, and are classified within Level 3 of the valuation hierarchy. An increase or decrease in volatility or interest free rate, in isolation, can significantly increase or decrease the fair value of the derivative liabilities. Changes in the values of the derivative liabilities are recorded as a component of other income (expense) on the Company’s condensed consolidated statements of operations and comprehensive loss.

The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities that are measured at fair value on a recurring basis for the nine months ended June 30, 2018:-16-

Balance - Beginning of period	$	1,926,800
Aggregate fair value of derivative instruments issued		-
Transfers out upon payoff of notes payable		(1,585,993	)
Change in fair value of derivative liabilities		111,214
Balance - End of period	$	452,021

The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities that are measured at fair value on a recurring basis for the three months ended December 31, 2018:

Balance - Beginning of period	$	472,670
Aggregate fair value of derivative instruments issued		-
Transfers out upon payoff of notes payable		-
Change in fair value of derivative liabilities		(86,403	)
Balance - End of period	$	386,267

NOTE 5 – CONVERTIBLE NOTES PAYABLE

As of ~~June~~December 3031, 2018 the Company had $~~244~~232,~~032~~832 in Convertible Notes Payable.

OnNOTE May 25th 2018, the Company entered into an exchange Agreement (the “Coastal Exchange Agreement”) with Coastal Investment Partners, LLC (“Coastal”). Pursuant to the terms of the Coastal Exchange Agreement, the Company agreed to exchange the principal amount due under the convertible promissory note dated July 6, ~~2016~~– ~~plus~~PROMISSORY ~~accrued~~NOTES but unpaid interest and default and other amounts due and payable under such notes, which was $305,664 as of the Effective Date (the “Coastal Notes”) in exchange for (i) 192,832 shares of Series A Preferred Stock having an aggregate value of $192,832 and (ii) the issuance of new convertible promissory notes due eighteen (18) months from the Effective Date in the aggregate principal amount of $192,832 (the “New Coastal Note”). The New Coastal Note shall bear interest at 8% per annum and is convertible into shares of the Company’s common stock at $0.015 per share, subject to adjustment. Coastal has contractually agreed to restrict their ability to convert the New Coastal Note such that the number of shares of the Company common stock held by them and their affiliates after such conversion does not exceed 9.99% of the Company’s then issued and outstanding shares of common stock. In connection with the Coastal Exchange Agreement, Coastal agreed to waive the defaults and breaches that have resulted on or prior to the Effective Date as well as any penalties, interest or other amounts that may have accrued under the Coastal Notes after March 31, 2018. In addition, Coastal entered into a termination agreement with the Company pursuant to which as of the Effective Date, (i) the securities purchase agreements and pledge agreements entered into with Coastal (the “Coastal Prior Agreements”) were terminated in their entirety and shall have no further force or effect, (ii) the security interests granted by the pledge agreement were terminated and shall have no further force or effect and (iii) neither party shall have any further rights or obligations under the Coastal Prior Agreements. Coastal also authorized the Company or its representatives to take all actions as they determine in their sole discretion to discharge and release any and all security interests, pledges, liens, and other encumbrances held by it on the Company’s assets.PAYABLE

~~NOTE~~As 6–of ~~PROMISSORY~~December ~~NOTES~~31, ~~PAYABLE~~2018 the Company had $56,259 in Promissory Notes Payable.

As of June 30, 2018 the Company had $65,259 in Promissory Notes Payable.

On May 25 2018, the Company entered into an exchange agreement (the “Black Mountain Exchange Agreement”) with Black Mountain Equity Partners LLC (“Black Mountain”). Pursuant to the terms of the Black Mountain Exchange Agreement, the Company agreed to exchange the principal amount due under the convertible promissory note dated November 11, 2016 (the “Black Mountain Note”) in exchange for the issuance of new promissory note due twelve (12) months from the Effective Date in the aggregate principal amount of $20,000 (which includes a prepayment amount of $5,000 made on the Effective Date) (the “New Black Mountain Note”). The New Black Mountain Note shall bear interest at 12% per annum and has mandatory payments of $5,000 every 90 days until paid in full. In connection with the Black Mountain Exchange Agreement, Black Mountain agreed to waive the defaults and breaches that have resulted on or prior to the Effective Date as well as any penalties, interest or other amounts that may have accrued under the Black Mountain Note after March 31, 2018.

-17-

On May 25 2018, the Company entered into an exchange agreement with a certain investor for the issuance of new promissory note due twenty-four (24) months from the Effective Date in the aggregate principal amount of $47,259 (the “New 2016 Investor Note”). The New 2016 Investor Note shall bear interest at 12% per annum and has mandatory payments of $2,000 every 30 days until paid in full starting June 25, 2018. In connection with the 2016 Investors Exchange Agreement, the 2016 Investors have agreed to waive the defaults and breaches that have resulted on or prior to the Effective Date as well as any penalties, interest or other amounts that may have accrued under the 2016 Notes after March 31, 2018.

NOTE 7 – STOCKHOLDERS’ EQUITY

Common Stock

The board of directors authorized the following issuances of stock for services. The Company evaluated in accordance with ASC 505-50 “Equity-Based Payments to Non-Employees”:

~~During the nine months ended June 30, 2018, the Company issued 40,000 restricted shares of common stock for bonus shares to a note for a fair value of $1,200~~None.

During the nine months ended June 30, 2018, the Company issued 2,898,551 restricted shares of common stock to Amarantus BioScience Holdings, Inc. converting part of their contingency liability for legal settlement for a fair value of $57,971.

During the nine months ended June 30, 2018, the Company issued 30,092,073 restricted shares of common stock to Amarantus BioScience Holdings, Inc to relinquish all convertible notes, accrued interest, and notes receivable for a fair value of $373,440.

Preferred Stock

On May 25, 2018, the Company filed a Certificate of Designation of Preferences, Rights and Limitations of the Series A Preferred Stock with the Secretary of State of the State of Nevada (the “Series A Certificate of Designation”). The number of shares of Series A Preferred Stock designated shall be up to 4,000,000. Each share of Series A Preferred Stock shall have a par value of $0.001 per share and a stated value equal to $1.00. Except as otherwise required by law, no dividend shall be declared or paid on the Series A Preferred Stock. Except as otherwise expressly required by law, the holder of Series A Preferred Stock shall be entitled to vote on all matters submitted to shareholders of the Company and shall have the number of votes equal all other outstanding shares of capital stock of the Company outstanding at the record date for the determination of shareholders entitled to vote on such matter or, if no such record date is established, at the date such vote is taken or any written consent of shareholders is solicited, such that the holders of outstanding shares of Series A Preferred Stock shall always constitute 50.1% of the voting power of the Company until the Series A is converted into common stock. The shares of Series A Preferred Stock are not redeemable by the Company. The shares of Series A Preferred Stock are not entitled to any preemptive or subscription rights in respect of any securities of the Company. Upon a consummation of a reverse stock split of the Company’s common stock, such that after consummation of such reverse stock split there are approximately 15,000,000 shares of the Company’s common stock outstanding (the “Reverse Split”), the holders shall take all necessary steps with the Company to exchange all outstanding shares of Series A Preferred Stock into shares of the Company’s common stock at a rate of to be agreed upon by the parties.

-18-

On May 25, 2018, the Company filed a Certificate of Designation of Preferences, Rights and Limitations of the Series B Preferred Stock with the Secretary of State of the State of Nevada (the “Series B Certificate of Designation”). The number of shares of Series B Preferred Stock designated shall be up to 27,000,000. Each share of Series B Preferred Stock shall have a par value of $0.001 per share and a stated value equal to the total number of shares of Series B Preferred Stock issued to the Holder divided by their Owed Amount (as defined in the Series B Certificate of Designation). Except as otherwise required by law, no dividend shall be declared or paid on the Series B Preferred Stock. Except as otherwise expressly required by law, each holder of Series B Preferred Stock shall be entitled to vote on all matters submitted to shareholders of the Corporation and shall be entitled to vote on an as-converted basis for each share of Series B Preferred Stock owned at the record date for the determination of shareholders entitled to vote on such matter or, if no such record date is established, at the date such vote is taken or any written consent of shareholders is solicited. Except as otherwise required by law, the holders of shares of Series B Preferred Stock shall vote together with the holders of common stock on all matters and shall not vote as a separate class. The shares of Series B Preferred Stock are not redeemable by the Company. The shares of Series B Preferred Stock are not entitled to any preemptive or subscription rights in respect of any securities of the Company. Upon filing an amendment to the Company’s articles of incorporation to increase the number of shares of authorized common stock so that there is an adequate amount of shares of authorized common stock for issuance upon conversion of the Series B Preferred Stock (the “Amendment”), the shares of Series B Preferred Stock will be automatically converted into common stock and such conversion will require no action on behalf of the Company or the holder of the Series B Preferred Stock. Each share of Series B Preferred Stock shall convert into ten (10) shares of common stock of the Company, subject to adjustment.

On May 25, 2018 (the “Effective Date”), the Company entered into securities purchase agreements (collectively, the “Purchase Agreement”) with accredited investors (the “Investors”) pursuant to which the Company sold an aggregate of six hundred and fifty thousand (650,000) shares of its series A convertible preferred stock (the “Series A Preferred Stock”) for aggregate gross proceeds of $650,000. In addition, existing debtholders of the Company exchanged an aggregate of $516,155 (currently due and payable under existing indebtedness) for an aggregate of 516,155 shares of Series A Preferred Stock pursuant to exchange agreements described below.

On May 25 2018, the Company entered into an exchange agreement (collectively, the “2016 Investors Exchange Agreement”) with the investors who purchased convertible promissory notes between November 2016 and January 2017 (the “2016 Notes”) for an aggregate principal amount of $786,500 (the “2016 Investors”). Pursuant to the terms of the 2016 Investors Exchange Agreement, the Company agreed to exchange (i) the principal amount due under the 2016 Notes in exchange for an aggregate of (i) 323,323 shares of Series A Preferred Stock having an aggregate value of $323,323 and (ii) approximately 3,324,065 shares of series B convertible preferred stock having an aggregate value of approximately $498,610 (the “Series B Preferred Stock”). In connection with the 2016 Investors Exchange Agreement, the 2016 Investors have agreed to waive the defaults and breaches that have resulted on or prior to the Effective Date as well as any penalties, interest or other amounts that may have accrued under the 2016 Notes after March 31, 2018.

On May 25 2018, the Company entered into an exchange agreement (collectively, the “2017 Investors Exchange Agreement”) with the investors who purchased convertible promissory notes between June 2017 and October 2017 (the “2017 Notes”) for an aggregate principal amount of $545,000 (the “2017 Investors”). Pursuant to the terms of the 2017 Investors Exchange Agreement, the Company agreed to exchange (i) the principal amount due under the 2017 Notes (ii) warrants to purchase 18,166,667 shares of common stock and (iii) purchase rights to purchase shares of common stock for an aggregate of 72,666,667 shares of common stock, in exchange for an aggregate approximately 22,290,800 shares of series B convertible preferred stock having an aggregate value of $545,000 (the “Series B Preferred Stock”). The 2017 Investors have agreed to waive the defaults and breaches that have resulted on or prior to the Effective Date as well as any penalties, interest or other amounts that may have accrued under the 2017 Notes after March 31, 2018. The terms of the Series B Preferred Stock are set forth under Item 3.02 below. In addition, each 2017 Investor entered into a termination agreement with the Company (collectively, the “2017 Investors Termination Agreement”) pursuant to which as of the Effective Date, (i) the securities purchase agreements and pledge agreements entered into with the 2017 Investors (the “2017 Investors Prior Agreements”) were terminated in their entirety and shall have no further force or effect, (ii) the security interests granted by the pledge agreements were terminated and shall have no further force or effect and (iii) neither party shall have any further rights or obligations under the Prior Agreements. The 2017 Investors also authorized the Company or his/her/its representatives to take all actions as they determine in their sole discretion to discharge and release any and all security interests, pledges, liens, and other encumbrances held by such 2017 Investor on the Company’s assets.

-19-

In connection with the 2017 Investors Exchange Agreement, the 2017 Investors have agreed to a lock-up agreement with respect to any shares of common stock it may receive beginning on May 25, 2018 and ending on the nine (9) month anniversary of the date the Company’s laboratory is open for business (the “Lockup Period”). For the first one hundred and eighty (180) days after termination of the Lockup Period, the 2017 Investors shall be subject to a daily liquidation limit for any sales of common stock equal to two and a half percent (2.5%) of the average trading volume of the Company’s common stock for the prior five (5) trading days, but excluding the date of sale (the “Leakout Limitation”). For any sale proposed by the 2017 Investors in excess of the Leakout Limitation, the Company will have (a) a right of first refusal for a period of 15 business days after receipt of written notice of such sale from the 2017 Investor, to purchase such shares of common stock subject to the Leakout Limitation at a price equal to the average closing price per share of the Company’s common stock for the prior five (5) trading days prior to such notice, and (b) if not purchased by the Company, the Company will have approval rights of the counter party proposed by a 2017 Investor for the sale of any such securities, such approval in the Company’s sole and absolute discretion.

For a period of one year from the date of final closing of the offering, Investors holding at least a majority of the Series A Preferred Stock outstanding from time to time shall have the right to cause the Company to sell for cash to such Investors on a pro rata basis up to an aggregate of $1,000,000 of common stock in one or more transactions at a 10% discount to the average closing price of the common stock (as reported for consolidated transactions with respect to securities listed on the principal national securities exchange on which the Common Stock is listed or admitted to trading or, if the Common Stock is not listed or admitted to trading on any national securities exchange, then in the over-the-counter market, as reported on any tier maintained by the OTC Markets Group, Inc.) for the thirty (30) consecutive trading days immediately prior to (and including) the Friday preceding the date of such purchase or purchases.

-17-

At any time on or after the Effective Date and until the Company’s 2019 annual meeting of stockholders, the Investors, jointly and severally, shall have the exclusive right, voting separately as a class, to elect up to six (6) directors (each director, an “Investor Director”). A Preferred Director so elected shall serve for a term of one year and until his successor is elected and qualified. An Investor Director may, during his or her term of office, be removed at any time, with or without cause, by and only by the affirmative vote, at a special meeting of holders of Series A Preferred Stock called for such purpose. Any vacancy created by such removal may also be filled at such meeting or by such consent for the remainder of such initial one-year term. At any time on or after the Effective Date and until the Company’s 2019 annual meeting of stockholders, Infusion 51a, LP (“Infusion”) shall have the right to elect up to three (3) directors (each director, an “Infusion Director”). An Infusion Director so initially elected shall serve for a term of one year and until his successor is elected and qualified. Any vacancy in the position of an Infusion Director may be filled only by the affirmative vote of Infusion. An Infusion Director may, during his or her term of office, be removed at any time, with or without cause. Any vacancy created by such removal may also be filled by Infusion for the remainder of such initial one-year term.

As soon as practicable after the final closing of the offering, the Company shall use commercially reasonable efforts to take all necessary actions and to obtain such approvals of the Company’s stockholders as may be required to increase the Company’s authorized shares of Common Stock such that the Company can issue all of the shares of Common Stock issuable upon completion of the restructuring and undertake a reverse stock split at such ratio where the number of shares of Common Stock outstanding after consummation of such reverse stock split shall be approximately 15,000,000 shares (the “Reverse Split”) before the exchange of the Series A Preferred Stock into shares of common stock (the “Stockholder Approval”). Until the consummation of the Reverse Split (as defined herein), the Investors appointed AVDX Investors Group, LLC (the “Investor Representative”) as its attorney-in-fact for the purpose of carrying out the Stockholder Approval.

-20-

From the Effective Date until the consummation of the Reverse Split, upon any issuance by the Company of common stock or Common Stock Equivalents (as defined in the Series A Certificate of Designations (as defined below)) for cash consideration, indebtedness or a combination of units thereof (a “Subsequent Financing”), each Qualifying Purchaser (as defined below) shall have the right to participate in up to an amount of the Subsequent Financing equal to 50% of the Subsequent Financing on the same terms, conditions and price provided for in the Subsequent Financing. For purposes herein, “Qualifying Purchaser” means an Investor with a subscription amount of at least $150,000.

Beginning on the six month anniversary of the final closing of the offering, on or prior to the sixtieth (60th) calendar day after the date of receipt of written demand from Investors holding at least 51% of Registrable Securities (as defined in the Purchase Agreement), the Company shall prepare and file with the Securities and Exchange Commission (the “SEC”) a registration statement covering the resale of all of the Registrable Securities that are not then registered on an effective registration statement.

In connection with the offering, we agreed to pay our placement agent, a registered broker-dealer, or the Placement Agent, (i) a cash commission of 8% of the gross proceeds raised from investors in the offering, and to issue to the Placement Agent warrants to purchase a number of shares of common stock equal to 4% of the gross proceeds divided by the respective offering price, with a term of seven years from the date of issuance.

On ~~June~~October 1817, 2018, the Company entered into a securities purchase agreement with anHenry ~~accredited~~Cole, ~~investor~~a director of the Company, pursuant to which the Company sold an aggregate of ~~fifty~~twenty thousand (5020,000) shares of its Series A Preferred Stock for aggregate gross proceeds of $5020,000.

On June 22, 2018, the Company entered into a securities purchase agreement with an accredited investor, pursuant to which the Company sold an aggregate of thirty thousand (30,000) shares of its Series A Preferred Stock for aggregate gross proceeds of $30,000.-18-

On ~~June~~October 2517, 2018, the Company entered into a securities purchase agreement with anJeffrey ~~accredited investor~~Busch, the Company’s executive chairman, pursuant to which the Company sold an aggregate of ~~one~~two ~~hundred and fifty~~ thousand-five hundred (~~150~~2,~~000~~500) shares of its Series A Preferred Stock for aggregate gross proceeds of $~~150~~2,~~000~~500.

On October 26, 2018, the Company entered into a securities purchase agreement with Dr. Rajesh Shrotriya, a director of the Company, a director of the Company, pursuant to which the Company sold an aggregate of one hundred thousand (100,000) shares of its Series A Preferred Stock for aggregate gross proceeds of $100,000.

On November 26, 2018, the Company entered into a securities purchase agreement with an accredited investor, pursuant to which the Company sold an aggregate of twenty-five thousand (25,000) shares of its Series A Preferred Stock for aggregate gross proceeds of $25,000.

On November 27, 2018, the Company entered into a securities purchase agreement with Jeffrey Busch, the Company’s executive chairman, pursuant to which the Company sold an aggregate of twelve thousand (12,000) shares of its Series A Preferred Stock for aggregate gross proceeds of $12,000.

On December 19, 2018, the Company entered into a securities purchase agreement with an accredited investor, pursuant to which the Company sold an aggregate of twenty-five thousand (25,000) shares of its Series A Preferred Stock for aggregate gross proceeds of $25,000.

On December 19, 2018, the Company entered into a securities purchase agreement with Jeffrey Busch, the Company’s executive chairman, pursuant to which the Company sold an aggregate of twenty-five thousand (25,000) shares of its Series A Preferred Stock for aggregate gross proceeds of $25,000.

On December 31, 2018, the Company entered into a securities purchase agreement with Dr. Rajesh Shrotriya, a director of the Company, a director of the Company, pursuant to which the Company sold an aggregate of fifty thousand (50,000) shares of its Series A Preferred Stock for aggregate gross proceeds of $50,000.

NOTE 8 – COMMITMENTS AND CONTINGENCIES

Legal

On January 13, 2014, Plaintiff Tamarin Lindenberg sued Arrayit Corporation, the Company, John Howell, Steven Scott and Gregg Linn in Civil Action No. L7698-13. Plaintiff alleged violations of the New Jersey Conscientious Employee Protection Act NJSA 34:19-1 to NJSA 34:19-8 (“CEPA”), breach of contract, breach of covenant of good faith and fair dealing, economic duress and intentional infliction of emotional distress. On August 6, 2014, the District Court dismissed Plaintiff’s complaint against Arrayit Corporation for failure to state a claim upon which relief may be granted and against John Howell for lack of jurisdiction. The Company and its officers remain as defendants in the action. The Company and its officers have mounted a vigorous defense against these claims and believe they are without legal merit.

-2119-

On or about September 16, 2017, Memory DX, LLC (“MDX”) filed a lawsuit against Amarantus Biosciences Holdings, Inc. (“AMBS”), Amarantus Bioscience Holdings, Inc., Amarantus Diagnostics, Inc., the Company and Avant Diagnostics Acquisition Corporation, et al (collectively the “Defendants”) in the Superior Court of the State of Arizona, County of Maricopa (Case Number CV2017-015026) (the “AZ Court”). On or about December 14, 2017, a default judgment (the “Default Judgment”) was rendered in the Court against the Defendants. On or about February 15, 2017, MDX and the Defendants entered into a settlement agreement related to the satisfaction of the Default Judgment. On May 25, 2017, the parties entered into an amended and restated settlement agreement pursuant to which in consideration for fully satisfying the Default Judgment, the Company paid MDX $30,000, (the “Initial Cash Amount”). In addition, the Company agreed to pay MDX an aggregate of $175,000 by July 30, 2017 (the “Additional Cash Amount” and together with the Initial Cash Amount, the “Cash Consideration”). If the Additional Cash Amount was not paid by July 30, 2017, the Company agreed to pay MDX $20,000 per month beginning August 30, 2017 in full satisfaction of the Additional Cash Amount. On September 19, 2017, the parties entered into a second amended and restated settlement agreement pursuant to which in consideration for fully satisfying the Default Judgment, the Company agreed to provide MDX the following: (i) an aggregate of $250,000 (the “Cash Consideration”) payable as follows: (i) $35,000 which has been previously paid, (ii) $3,500 which was paid upon execution of the agreement (iii) $2,000 which will be payable on the last calendar day of each month for October and November 2017, (iv) $5,000 which will be payable on the last calendar day for December 2017 and each of January and February 2018 and (v) $10,000 which will be payable on the last calendar day of each month until the full consideration is paid. Notwithstanding the foregoing, upon the sale by the Company of its equity securities in a single offering for aggregate gross proceeds of at least $7,500,000 (the “Qualified Offering”) after the date of the agreement, the Company will pay any remaining amount of the Cash Consideration then outstanding upon the final closing of such Qualified Offering. The Company previously issued to MDX 5,000,000 restricted shares of common stock (the “Initial Shares”) on or prior to the date of the amended agreement as partial consideration for the Default Judgment. In addition, the Company agreed to issue MDX an additional 5,000,000 restricted shares of common stock (the “Additional Shares”). Within three (3) business days of the issuance of the Additional Shares, MDX shall take all necessary action to withdraw the recorded Default Judgment. The Default Judgment shall be set aside without prejudice. Upon a default of the obligations to timely pay the Cash Consideration, after written notice and five (5) business days to cure, MDX will be entitled to reinstate the Default Judgment. MDX shall assign the License Agreement between MDX and University of Leipzig dated May 22, 2013, as amended, to the Company, as well as assign the Asset Purchase Agreement between MDX and AMBS to the Company upon final settlement of this matter.

On or about January 23, 2017, Ellenoff Grossman & Schole LLP (“EGS”) filed a complaint (the “EGS Complaint”) in the Supreme Court of the State of New York, County of New York (the “Court”), Case No. 650328/2017, against the Company alleging, among other things, breach of contract, account stated and quantum meruit. On or about June 19, 2017, the Company entered into a settlement agreement with EGS settling all of the allegations set forth in the EGS Complaint. The settlement agreement provides (a) a release of all claims by both parties, and (b) payment of $40,000 to EGS in 10 equal installments. On October 11, 2017, EGS notified the Company that is was in default under the terms of the settlement agreement.

On or about April 24, 2017, John G. Hartwell (“Hartwell”) and Corrine Ramos (“Ramos” and collectively with Hartwell, the “Plaintiffs”) filed a lawsuit against the Company, Avant Diagnostics Acquisition Corp. and Gregg Linn (collectively the “Defendants”) in the Circuit Court for Montgomery County, Maryland (Case Number 432180-V) (the “MD Court”), On or about June 8, 2017, the parties entered into a settlement agreement pursuant to which the Company agreed to pay Defendants an aggregate of approximately $154,000 in installments as set forth in the agreement (the “Initial Settlement Agreement”). The first payment of $29,819.99 was made by the Defendants to Plaintiffs on or about July 10, 2017. As a result of the first payment being made pursuant to the ~~agreement~~ Initial Settlement Agreement, Plaintiffs dismissed the action against the Defendants without prejudice on or about July 13, 2017. The Company subsequently defaulted on the terms of the Initial Settlement Agreement. On or about April 2, 2018, John G. Hartwell (“Hartwell”) and Corrine Ramos (“Ramos” and collectively with Hartwell, the “Plaintiffs”) refiled a lawsuit against the Company, Avant Diagnostics Acquisition Corp. and Gregg Linn (collectively the “Defendants”) in the Circuit Court for Montgomery County, Maryland (Case Number 445068-V) (the “MD Court”) On or about February 15, 2019, the parties entered into a new settlement agreement pursuant to which the Company agreed to pay Defendants an aggregate of approximately $132,280 in installments as set forth in the agreement. The first payment of $10,000 was made by the Defendants to Plaintiffs on or about February 15, 2019.

-22-

On or about June 27, 2017, Sichenzia Ross Ference Kesner LLP (“SRFK”) filed a complaint (the “SRFK Complaint”) in the Court, Case No. 654465/2017, alleging, among other things, breach of contract, account stated, quantum meruit and unjust enrichment against the Company, in connection with a retainer agreement, dated March 8, 2016, by and between the Company and SRFK (the “Agreement”). SRFK is seeking, among other things, compensatory damages in excess of $120,110, legal fees, interest and such other relief as the Court deems just and proper. On July 23, 2018, a default judgment was entered against the Company in the amount of $120,110 plus costs and disbursements. The Company does not believe it was ever properly served by SRFK. The Company denies the material allegations of the SRFK Complaint and intends to vigorously defend itself in this action. The results of any litigation are inherently uncertain and there can be no assurance that we will prevail in the litigation matter stated above or otherwise.

-20-

On or about August 7, 2017, Clear Financial Solutions, Inc. (“CFS”) and Steven Plumb (collectively with CFS, the “Texas Plaintiffs”) filed a complaint (the “Texas Complaint”) in the 129^th Judicial District Court of Harris County, Texas (the “Texas Court”), Case No. 2017-52184, against the Company, Gregg Linn, the Company’s former CEO, Signature Stock Transfer, Inc., the Company’s former transfer agent, and Jason Bogutski, the CEO of the Company’s former transfer agent (collectively, the “Texas Defendants”), alleging, among other things, breach of contract, promissory estoppel, quantum meruit, tortious interference and violations of Nevada law against the Texas Defendants, in connection with the failure to remove the legend on restricted stock held by CFS. The Texas Plaintiffs are seeking, among other things, damages in legal fees, interest and such other and further relief to which the Texas Plaintiffs may be entitled at law or in equity. The Company denies the material allegations of the Texas Complaint and is vigorously defending itself in this action. The results of any litigation are inherently uncertain and there can be no assurance that we will prevail in the litigation matter stated above or otherwise.

On September 18, 2018, the Company was named as a respondent in an Order Instituting Administrative Proceedings and Notice of Hearing brought by the SEC pursuant to Section 12(j) of the Exchange Act, File No. 3-18784 (the “Hearing”). The purpose of the Hearing before an Administrative Law Judge is to determine whether it is necessary and appropriate for the protection of investors to suspend for a period not exceeding twelve months or revoke the registration, of each class of securities of the Company registered pursuant to Section 12 of the Securities Exchange Act of 1934. The Hearing was scheduled because the Company was delinquent in its periodic filings with the SEC. Subsequent to September 18, 2018, the Company filed Form 10-Qs for each of the quarters ended December 31, 2016, March 31, 2017 and June 30, 2017, its Form 10-K for its fiscal year ended September 30, 2017, Form 10-Qs for each of the quarters ended December 31, 2017, March 31, 2018 and June 30, 2018 and its Form 10-K for the fiscal year ended September 30, 2018. Upon the filing of this Form 10-Q for the quarter ended December 31, 2018, the Company will be current in its reports with the SEC. To date, the Company and the SEC have not had any substantive discussions regarding the Hearing. In light of the Company becoming current in its periodic reports with the SEC and the lack of any notice of further action by the SEC, the Company does not believe a Hearing is necessary and appropriate to protect the interest of investors, however there can be no assurance that the SEC will not take further steps to pursue the Hearing despite the fact that the Company is current in its reporting obligations with the SEC.

On or about February 26, 2019, Michael Linn filed a lawsuit against the Company in the Superior Court of the State of Arizona, County of Maricopa (Case Number CC2019042166RC) alleging breach of contract for the failure to pay for services rendered in April and May 2017. The Company denies the material allegations of this complaint and intends to vigorously defending itself in this action. The results of any litigation are inherently uncertain and there can be no assurance that we will prevail in the litigation matter stated above or otherwise.

NOTE 9 – RELATED PARTY TRANSACTIONS

The Company had accrued expenses due to current and former officers, consisting mainly of salary and expenses. As of ~~June~~December 3031, ~~2018~~ 2018 and September 30, ~~2017~~2018, accrued payroll and benefits due to officers were $~~180~~200,~~106~~635 and $~~277~~180,~~175~~025, respectively.

-2321-

The following selling, general and administrative expenses for the ~~nine~~three months ended ~~June~~December 3031, 2018 were incurred by Mick Ruxin, ~~Jeffrey~~ Jeffrey Busch, Investor Representative, and Scott VanderMeer:

	For the Nine Months
	For the three months ended
	ended
	December 31, 2018
	June 30, 2018
Salary and Wages	$	44,361
Consultant	$	104,166
Due to Officers		20,610
Due to Officers		10
Expense Reimbursement		13,548
Expense Reimbursement		8,092
Payroll Expense		22,920
Salary and Wages		14,787
Total	$	101,439
Payroll Expense		7,896
Total	$	134,951
Mick Ruxin, M.D.

	For the Nine Months
	For the three months ended
	ended
	December 31, 2018
	June 30, 2018
Salary and Wages	$	7,500
Salary and Wages	$	2,500
Loan		13,050
Loan		15,895
Total	$	20,550
Total	$	18,395
Jeffrey Busch

	For the Nine Months
	For the three months ended
	ended
	December 31, 2018
	June 30, 2018
Consultant- Related Party	$	40,000
Consultant- Related Party	$	13,333
Total	$	40,000
Total	$	13,333
Investor Representative

	For the Nine Months
	For the three months ended
	ended
	December 31, 2018
	June 30, 2018
Consultant- Related Party	$	36,075
Consultant- Related Party	$	48,725
Total	$	36,075
Due to Officers		96
Expense Reimbursement		1,681
Total	$	50,502
Scott VanderMeer

On December 4, 2017, the Company accepted the resignation of Philippe Goix as the Company’s chief executive officer and director, effective immediately. On December 15, 2017, the Company entered into a Separation and Release Agreement (the “Goix Separation Agreement”) with Philippe Goix, the Company’s former Chief Executive Officer, pursuant to which Dr. Goix’s status as chief executive officer and director of the Company ended effective December 4, 2017. Pursuant to the Goix Separation Agreement, upon the occurrence of a Triggering Event (as defined in the Goix Separation Agreement), the Company shall pay Dr. Goix a lump sum cash payment of $27,346.84 within three (3) business days of the date such Triggering Event occurs.

-24-

On May 25, 2018, the Company entered into an employment agreement (the “Ruxin Agreement”) with Dr. Ruxin under which he will serve as Chief Executive Officer of the Company. The term of the Ruxin Agreement was effective as of May 25, 2018, continues until May 25, 2023 and automatically renews for successive one-year periods at the end of each term until either party delivers written notice of their intent not to renew at least 60 days prior to the expiration of the then effective term. Under the terms of the Ruxin Agreement, Dr. Ruxin will receive an annual salary of $250,000. He is eligible to receive a cash bonus of up to 100% of his base salary. The bonus shall be earned upon the Company’s achievement of performance targets for a fiscal year to be mutually agreed upon by Dr. Ruxin and the board or a committee thereof. Additionally, following the adoption by the Company of an equity compensation plan and subject to approval of the board or a committee thereof, Dr. Ruxin shall receive (i) a one-time restricted stock unit award having a fair value of approximately $100,000 and which shall vest over a five year period following the date of grant and (ii) an option to purchase ten percent (10%) of the outstanding shares of the Company (calculated on the date of grant), which shall vest over a five-year period following the date of grant and expire on the tenth anniversary of the date of grant. Dr. Ruxin is entitled to participate in any and all benefit plans, from time to time, in effect for senior management, along with vacation, sick and holiday pay in accordance with the Company’s policies established and in effect from time to time.

-22-

Dr. Ruxin is an “at-will” employee and his employment may be terminated by the Company at any time, with or without cause. In the event Dr. Ruxin’s termination of employment is the result of termination by the Company without Cause (as defined in the Ruxin Agreement) with Good Reason (as defined in the Ruxin Agreement) or as a result of a non-renewal of the term of employment under the Ruxin Agreement, Dr. Ruxin shall be entitled to receive the sum of (I) the Severance Multiple (as defined below), multiplied by his base salary immediately prior to such termination and (II) a pro-rata portion of his bonus for the year in which such termination occurs equal to (a) his bonus for the most recently completed calendar year (if any), multiplied by (b) a fraction, the numerator of which is the number of days that have elapsed from the beginning of such calendar year through the date of termination and the denominator of which is the total number of days in such calendar year. “Severance Multiple” shall mean 2.0; provided, however, that if the date of termination occurs on or at any time during the twelve (12)-month period following a Change in Control (as defined in the Ruxin Agreement), the Severance Multiple shall mean 3.0. In addition, the Company shall accelerate the vesting of any outstanding, unvested equity awards granted to Dr. Ruxin prior to the date of termination and he shall be entitled to reimbursement of any COBRA payment made during the 18-month period following the date of termination.

The Ruxin Agreement also contains covenants (a) restricting the executive from engaging in any activity competitive with our business during the term of the employment agreement and in the event of termination, for a period of one year thereafter, (b) prohibiting the executive from disclosing confidential information regarding us, and (c) soliciting our employees, customers and prospective customers during the term of the employment agreement and for a period of one year thereafter.

On May 25, 2018, the Company entered into an employment agreement (the “Busch Agreement”) with Mr. Busch under which he will serve as Executive Chairman of the Company. The term of the Busch Agreement was effective as of May 25, 2018, continues until May 25, 2023 and automatically renews for successive one-year periods at the end of each term until either party delivers written notice of their intent not to renew at least 60 days prior to the expiration of the then effective term. Under the terms of the Busch Agreement, Mr. Busch will receive an annual salary of $30,000, which amount shall be automatically increased to $120,000 on the first anniversary of the date of the Busch Agreement. He is eligible to receive a discretionary cash bonus at the option of the board based on their evaluation of his performance of duties and responsibility. Additionally, following the adoption by the Company of an equity compensation plan and subject to approval of the board or a committee thereof, Mr. Busch shall receive (i) a one-time restricted stock unit award having a fair value of approximately $100,000 and which shall vest over a five year period following the date of grant and (ii) an option to purchase ten percent (10%) of the outstanding shares of the Company (calculated on the date of grant), which shall vest over a five-year period following the date of grant and expire on the tenth anniversary of the date of grant. Mr. Busch is entitled to participate in any and all benefit plans, from time to time, in effect for senior management, along with vacation, sick and holiday pay in accordance with the Company’s policies established and in effect from time to time.

-25-

Mr. Busch is an “at-will” employee and his employment may be terminated by the Company at any time, with or without cause. In the event Mr. Busch’s termination of employment is the result of termination by the Company without Cause (as defined in the Busch Agreement) with Good Reason (as defined in the Busch Agreement) or as a result of a non-renewal of the term of employment under the Busch Agreement, Mr. Busch shall be entitled to receive the sum of (I) the Severance Multiple (as defined below), multiplied by his base salary immediately prior to such termination and (II) a pro-rata portion of his bonus for the year in which such termination occurs equal to (a) his bonus for the most recently completed calendar year (if any), multiplied by (b) a fraction, the numerator of which is the number of days that have elapsed from the beginning of such calendar year through the date of termination and the denominator of which is the total number of days in such calendar year. “Severance Multiple” shall mean 2.0; provided, however, that if the date of termination occurs on or at any time during the twelve (12)-month period following a Change in Control (as defined in the Busch Agreement), the Severance Multiple shall mean 3.0. In addition, the Company shall accelerate the vesting of any outstanding, unvested equity awards granted to Mr. Busch prior to the date of termination and he shall be entitled to reimbursement of any COBRA payment made during the 18-month period following the date of termination.

-23-

The Busch Agreement also contains covenants (a) restricting the executive from engaging in any activity competitive with our business during the term of the employment agreement and in the event of termination, for a period of one year thereafter, (b) prohibiting the executive from disclosing confidential information regarding us, and (c) soliciting our employees, customers and prospective customers during the term of the employment agreement and for a period of one year thereafter.

On May 25 2018, the Company entered into a Consulting Agreement (the “Agreement”) with AVDX Investors Group LLC (the “Investor Representative”). Under the Agreement, the Investor Representative shall perform such consulting and advisory services, within Investor Representative’s area of expertise, as the Company or any of its subsidiaries may reasonably require from time to time. During the six-month term of the Agreement, Jeff Busch shall perform the services on behalf of Investor Representative (“Designated Person”). The Agreement has an initial term of six months from the date of execution and shall automatically renew on a monthly basis unless either party gives notice of non-renewal to the other party at least fifteen days prior to the date of the Agreement, provided this agreement shall not extend beyond 12 months from the date of the Agreement. Pursuant to the Agreement, the Company shall pay Investor Representative an annual amount of $160,000, payable either in cash or Series A Preferred Stock (or Common Stock upon filing of the Charter Amendment and consummation of the Reverse Split) during the term of the Agreement (the “Base Compensation”). The Company shall promptly reimburse Investor Representative for all travel, meals, entertainment and other ordinary and necessary expenses incurred by Investor Representative in the performance of its duties to the Company. Investor Representative’s and Designated Person’s position with the Company may be terminated at any time, with or without cause or good reason, upon at least 30 days prior written notice. During the term of the Agreement and for a period of twelve months thereafter, Investor Representative and Designated Person will be subject to non-competition and non-solicitation provisions, subject to standard exceptions. Investors will also provide Investor Representative an irrevocable proxy to vote their shares on all corporate matters until completion of the Reverse Split.

During the ~~nine~~three months ended ~~June~~December 3031, 2018, Mick Ruxin, M.D., Company CEO, incurred $~~104~~44,~~166~~361 ~~of consultant fees and $14,787~~ in salary and wages.

During the ~~nine~~three months ended ~~June~~December 3031, 2018, Jeffrey Busch, Chairman of the Board, incurred $27,500 of salary and wages.

During the ~~nine~~three months ended ~~June~~December 3031, 2018, the Investor Representative, incurred $1340,~~333~~000 of consultant fees – related party.

During the ~~nine~~three months ended ~~June~~December 3031, 2018, Scott VanderMeer, acting CFO, incurred $4836,~~725~~075 of consultant fees – related party.

~~-26-~~Directors – Series A

Jeffrey Busch – Related Party

Infusion 51a LP - Related Party

On May 25, 2018 (the “Effective Date”), the Company entered into securities purchase agreements (collectively, the “Purchase Agreement”) with accredited investor (the “Investor”) pursuant to which the Company sold an aggregate of two hundred and fifty thousand (250,000) shares of its Series A convertible preferred stock for aggregate gross proceeds of $250,000 (the “Series A Preferred Stock”). In addition, existing debtholder of the Company exchanged an aggregate of $94,215 (currently due and payable under existing indebtedness) for an aggregate of 94,215 shares of Series A Preferred Stock pursuant to exchange agreements described below.

On May 25, 2018 the Company entered into an exchange agreement (collectively, the “2017 Investors Exchange Agreement”) with the investors who purchased convertible promissory notes between June 2017 and October 2017 (the “2017 Notes”) for an aggregate principal amount of $395,000 (the “2017 Investors”). Pursuant to the terms of the 2017 Investors Exchange Agreement, the Company agreed to exchange (i) the principal amount due under the 2017 Notes (ii) warrants to purchase 13,166,667 shares of common stock and (iii) purchase rights to purchase shares of common stock for an aggregate of 52,666,667 shares of common stock, in exchange for an aggregate approximately 17,347,619 shares of series B convertible preferred stock having an aggregate value of $395,000 (the “Series B Preferred Stock”). The 2017 Investors have agreed to waive the defaults and breaches that have resulted on or prior to the Effective Date as well as any penalties, interest or other amounts that may have accrued under the 2017 Notes after March 31, 2018. The terms of the Series B Preferred Stock are set forth under Item 3.02 below. In addition, each 2017 Investor entered into a termination agreement with the Company (collectively, the “2017 Investors Termination Agreement”) pursuant to which as of the Effective Date, (i) the securities purchase agreements and pledge agreements entered into with the 2017 Investors (the “2017 Investors Prior Agreements”) were terminated in their entirety and shall have no further force or effect, (ii) the security interests granted by the pledge agreements were terminated and shall have no further force or effect and (iii) neither party shall have any further rights or obligations under the Prior Agreements. The 2017 Investors also authorized the Company or his/her/its representatives to take all actions as they determine in their sole discretion to discharge and release any and all security interests, pledges, liens, and other encumbrances held by such 2017 Investor on the Company’s assets.

International Infusion LP – Related Party

On the Effective Date, the Company entered into an exchange with existing debtholders of the Company and exchanged an aggregate of $89,256 (currently due and payable under existing indebtedness) for an aggregate of 89,256 shares of Series A Preferred Stock pursuant to exchange agreements described below.

On May 25, 2018 the Company entered into an exchange agreement (collectively, the “2017 Investors Exchange Agreement”) with the investors who purchased convertible promissory notes between June 2017 and October 2017 (the “2017 Notes”) for an aggregate principal amount of $168,806 (the “2017 Investors”). Pursuant to the terms of the 2017 Investors Exchange Agreement, the Company agreed to exchange an aggregate approximately 1,125,376 shares of series B convertible preferred stock having an aggregate value of $168,806 (the “Series B Preferred Stock”). The 2017 Investors have agreed to waive the defaults and breaches that have resulted on or prior to the Effective Date as well as any penalties, interest or other amounts that may have accrued under the 2017 Notes after March 31, 2018. The terms of the Series B Preferred Stock are set forth under Item 3.02 below. In addition, each 2017 Investor entered into a termination agreement with the Company (collectively, the “2017 Investors Termination Agreement”) pursuant to which as of the Effective Date, (i) the securities purchase agreements and pledge agreements entered into with the 2017 Investors (the “2017 Investors Prior Agreements”) were terminated in their entirety and shall have no further force or effect, (ii) the security interests granted by the pledge agreements were terminated and shall have no further force or effect and (iii) neither party shall have any further rights or obligations under the Prior Agreements. The 2017 Investors also authorized the Company or his/her/its representatives to take all actions as they determine in their sole discretion to discharge and release any and all security interests, pledges, liens, and other encumbrances held by such 2017 Investor on the Company’s assets.

-27-

NOTE 10 – SUBSEQUENT EVENTS

On July 1, 2018 through December 31, 2018, the Company entered into securities purchase agreements with accredited investors pursuant to which the Company sold an aggregate of four hundred and forty-five thousand (445,000) shares of its series A convertible preferred stock (the “Series A Preferred Stock”) for aggregate gross proceeds of $445,000. Through these dates, Jeffrey Busch, our executive chairman purchased (50,000) shares of Series A Preferred Stock for aggregate gross proceeds of $50,000, which are listed below.

On July 1, 2018, the Company entered into a securities purchase agreement with Jeffrey Busch, the Company’s executive chairman, pursuant to which the Company sold an aggregate of ten thousand-five hundred (10,500) shares of its Series A Preferred Stock for aggregate gross proceeds of $10,500.

On July 5, 2018, the Company entered into a securities purchase agreement with an accredited investor, pursuant to which the Company sold an aggregate of fifty thousand (50,000) shares of its Series A Preferred Stock for aggregate gross proceeds of $50,000.

On August 20, 2018, the Company entered into a securities purchase agreement (the “Series C Purchase Agreement”) with an institutional investor (the “Series C Investor”) pursuant to which the Company sold an aggregate of one hundred and fifty thousand (150,000) shares of its series C convertible preferred stock (the “Series C Preferred Stock”) for aggregate gross proceeds of $150,000.

On August 23, 2018, the Company entered into a securities purchase agreement with Dr. Mick Ruxin, the Company’s chief executive officer, pursuant to which the Company sold an aggregate of twenty-five thousand (25,000) shares of its Series A Preferred Stock for aggregate gross proceeds of $25,000.

On August 24, 2018, the Company filed a Certificate of Designation of Preferences, Rights and Limitations of the Series C Preferred Stock with the Secretary of State of the State of Nevada (the “Series C Certificate of Designation”). The following is only a summary of the Series C Certificate of Designation.

Designation, Amount and Par Value. The number of shares of Series C Preferred Stock designated shall be up to 1,000,000. Each share of Series C Preferred Stock shall have a par value of $0.001 per share and a stated value equal to $1.00 (the “Series C Stated Value”).

Dividends: The holders of Series C Preferred Stock shall not be entitled to dividends.

Liquidation Preference: In the event of a merger, sale (of substantially all stock or assets) or liquidation of the Company, unless waived by the holders of a majority of the Series C Preferred Stock, the holders of the Series C Preferred Stock shall receive in preference to the holders of Common Stock an amount per share equal to the Series C Stated Value.

Voting Rights. Except as otherwise required by law, the Series C Preferred Stock shall have no voting rights. However, as long as any shares of Series C Preferred Stock are outstanding, the Corporation shall not, without the affirmative vote of the Holders of a majority of the then outstanding shares of the Series C Preferred Stock, (a) alter or change adversely the powers, preferences or rights given to the Series C Preferred Stock or alter or amend this Certificate of Designation, (b) amend its articles of incorporation or other charter documents in any manner that adversely affects any rights of the holder, (c) increase the number of authorized shares of Series C Preferred Stock, or (d) enter into any agreement with respect to any of the foregoing.

-28-

Exercisability. A holder may not exercise any portion of the Series C Preferred Stock to the extent that the holder, together with its affiliates and any other person or entity acting as a group, would own more than 4.99% of the outstanding common shares after exercise, except that upon at least 61 days’ prior notice from the holder to us, the holder may increase the amount of ownership of outstanding shares after exercising the holder’s Series C Preferred Stock up to 9.99% of the number of our common shares outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the Series C Preferred Stock.

No Redemption; No Preemptive Rights. The shares of Series C Preferred Stock are not redeemable by the Company. The shares of Series C Preferred Stock are not entitled to any preemptive or subscription rights in respect of any securities of the Company.

Fundamental Transaction. If, at any time while the Series C Preferred Stock is outstanding, the Company enters into a Fundamental Transaction, then, the Company shall cause any Successor to assume in writing all of the obligations of the Company under the Series C Certificate of Designation pursuant to written agreements in form and substance reasonably satisfactory to the holder and approved by the holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the holder of the Series C Preferred Stock, deliver to the holder in exchange for the Series C Preferred Stock a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to the Series C Preferred Stock, and which is reasonably satisfactory in form and substance to the holder.

Exchange for Common Stock. Upon a consummation of the Reverse Split, the holders shall take all necessary steps with the Company to exchange all outstanding shares of Series C Preferred Stock into shares of the Company’s common stock at a rate of to be agreed upon by the parties.

For a period of one year from the date of final closing of the offering, the Series C Investor, together with the Investors, shall have the right to cause the Company to sell for cash to such investors on a pro rata basis up to an aggregate of $1,000,000 of common stock in one or more transactions at a 10% discount to the average closing price of the common stock (as reported for consolidated transactions with respect to securities listed on the principal national securities exchange on which the Common Stock is listed or admitted to trading or, if the Common Stock is not listed or admitted to trading on any national securities exchange, then in the over-the-counter market, as reported on any tier maintained by the OTC Markets Group, Inc.) for the thirty (30) consecutive trading days immediately prior to (and including) the Friday preceding the date of such purchase or purchases.

As soon as practicable after the final closing of the offering, the Company shall use commercially reasonable efforts to take all necessary actions and to obtain Stockholder Approval to, among other things, undertake the Reverse Split. Until the consummation of the Reverse Split, the Series C Investor appointed the Investor Representative as its attorney-in-fact for the purpose of carrying out the Stockholder Approval.

From the Effective Date until the consummation of the Reverse Split, upon a Subsequent Financing, the Series C Investor shall have the right to participate in up to an amount of the Subsequent Financing equal to 50% of the Subsequent Financing on the same terms, conditions and price provided for in the Subsequent Financing.

Beginning on the six month anniversary of the final closing of the offering, on or prior to the sixtieth (60th) calendar day after the date of receipt of written demand from both the Investors and the Series C Investor holding at least 51% of Registrable Securities (as defined in the Series C Purchase Agreement), the Company shall prepare and file with the SEC a registration statement covering the resale of all of the Registrable Securities that are not then registered on an effective registration statement.

-29-

The Series C Investor has contractually agreed to restrict its ability to convert and/or exchange the Series C Preferred Stock such that the number of shares of the Company common stock held by them and their affiliates after such conversion or exchange does not exceed 4.99% of the Company’s then issued and outstanding shares of common stock.

On September 12, 2018, the Company entered into a securities purchase agreement with an accredited investor, pursuant to which the Company sold an aggregate of fifty thousand (50,000) shares of its Series A Preferred Stock for aggregate gross proceeds of $50,000.

On October 17, 2018, the Company entered into a securities purchase agreement with Henry Cole, a director of the Company, pursuant to which the Company sold an aggregate of twenty thousand (20,000) shares of its Series A Preferred Stock for aggregate gross proceeds of $20,000.

On October 17, 2018, the Company entered into a securities purchase agreement with Jeffrey Busch, the Company’s executive chairman, pursuant to which the Company sold an aggregate of two thousand-five hundred (2,500) shares of its Series A Preferred Stock for aggregate gross proceeds of $2,500.

-24-

~~-30-~~NOTE 10 – SUBSEQUENT EVENTS

On February 8, 2019, the Company entered into a securities purchase agreement with an accredited investor, pursuant to which the Company sold an aggregate of thirty-five thousand (35,000) shares of its Series A Preferred Stock for aggregate gross proceeds of $35,000.

-25-

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled “Risk Factors” set forth in our Annual Report on Form 10-K for the fiscal year ended September 30, ~~2017~~2018, any of which may cause our company’s or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. These risks include, by way of example and not in limitation:

● general economic and business conditions; ● substantial doubt about our ability to continue as a going concern; ● our needs to raise additional funds in the future which may not be available on acceptable terms or at all; ● our inability to successfully recruit and retain qualified personnel in order to continue our operations; ● our ability to successfully implement our business plan; ● if we are unable to successfully acquire, develop or commercialize new products; ● our expenditures not resulting in commercially successful products; ● third parties claiming that we may be infringing their proprietary rights that may prevent us from manufacturing and selling some of our products; ● the impact of extensive industry regulation, and how that will continue to have a significant impact on our business, especially our product development, manufacturing and distribution capabilities; and ● other factors discussed under the section entitled “Risk Factors” set forth in our Form 10-K for the year ended September 30, ~~2017~~2018 filed with the Securities and Exchange Commission.

Readers are urged to carefully review and consider the various disclosures made by us in this report and in our other reports filed with the Securities and Exchange Commission. The following Management’s Discussion and Analysis of Financial Condition and Results of Operations of the Company should be read in conjunction with the Condensed Consolidated Financial Statements and notes related thereto included in this Quarterly Report on Form 10-Q. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in the future operating results over time except as required by law. We believe that our assumptions are based upon reasonable data derived from and known about our business and operations. No assurances are made that actual results of operations or the results of our future activities will not differ materially from our assumptions.

As used in this Quarterly Report on Form 10-Q and unless otherwise indicated, the terms “we”, “us”, “our”, “Avant” or the “Company” refer to Avant Diagnostics, Inc. and its subsidiaries. Unless otherwise specified, all dollar amounts are expressed in United States dollars.

Overview

During the fiscal year ended September 30, ~~2017~~2018, the Company curtailed its operations as a result of its limited operating capital. Since the end of the fiscal year ended September 30, ~~2017~~2018 through ~~September~~the ~~30,~~filing ~~2018~~of this report, we have focused on executing our business ~~plan~~ plan by commercializing our proprietary data-generating technology in the area of oncology, as well as focusing on the relocation ~~and~~ and opening of a revenue producing CAP/CLIA laboratory. The Company is focused on improving revenues in the pharma services business by acquiring customers with oncology-focused preclinical and clinical drug development programs. The Company is establishing business relationships with pharmaceutical companies in early and late stage clinical development.

In connection with the purchase of the business assets and certain liabilities of Theranostics Health, Inc. (“THI”) the Company acquired a CLIA laboratory located in Gaithersburg, Maryland. THI was a leading developer of proteomic technologies for measuring the activation status of key signaling pathways that are instrumental in the development of companion diagnostics for molecular-targeted therapies. In the past, THI has used these proteomic technologies to support the drug development programs of many major pharmaceutical and biotechnology drug development companies. THI is also planning on providing these testing capabilities to clinical oncologists to advance personalized medicine through its TheraLink® data-generating assays.

~~-31-~~As a result of the cost cutting measures taken during the fiscal year ended September 30, 2018, the Company substantially curtailed the use of the CLIA laboratory. As a result of these cost cutting measures, the Company was unable to timely make certain payments on the terms of the lease. As a result, the Company defaulted on its lease at the location of the Maryland laboratory and the landlord held the equipment located in the facility as collateral for amounts owed under the lease. AVDX Investors Group, LLC (“AVDX”), an entity controlled by Jeff Busch, our Executive Chairman (“Busch”) loaned the Company the capital to purchase the equipment. The note issued to AVDX is a demand promissory note that bears no interest and is secured by the equipment. During the fiscal year ended September 30, 2018, AVDX, Busch and his affiliated entities also loaned and/or paid certain obligation amounts on behalf of the Company.

AsOnce athe ~~result~~Company ofreacquired the ~~cost~~equipment ~~cutting~~for ~~measures taken during~~ the ~~fiscal~~laboratory, ~~year~~management ~~ended~~undertook ~~September~~a ~~30,~~review ~~2017,~~of the Company’s ~~substantially~~current ~~curtailed~~operations ~~the~~and ~~use~~decided ofto move the CLIA laboratory. Asfrom aMaryland ~~result~~to ofGolden, ~~these~~Colorado ~~cost~~(the ~~cutting~~“New ~~measures~~Lab”) In connection with the relocation to the New Lab, the Company ~~was~~executed ~~unable~~a tolease, ~~timely~~built ~~make~~out ~~certain~~the ~~payments on~~space for the ~~terms~~New ofLab and moved the ~~lease~~equipment from Maryland to Colorado. In Asconnection awith ~~result~~this relocation, ~~the~~management, ~~Company~~in ~~defaulted~~consultation onwith ~~its~~scientists ~~lease~~from atGeorge Mason University, the ~~location~~licensor of the ~~Maryland~~Company’s ~~laboratory~~Theralink® ~~and~~technology (“Licensor”), evaluated the ~~landlord~~ ~~held~~status of the Company’s equipment. It ~~located~~was indetermined that the ~~facility~~equipment aswas ~~collateral~~not ~~for~~properly ~~amounts~~maintained ~~owed~~and ~~under~~was ~~the~~left ~~lease.~~in ~~AVDX~~poor ~~Investors~~working ~~Group,~~order ~~LLC~~by prior management. As a ~~(“AVDX”)~~result, anthe ~~entity~~Company ~~controlled~~had byto ~~Jeff~~spend ~~Busch~~approximately $152,209 ~~our~~during ~~Executive~~the ~~Chairman~~calendar ~~(“Busch”)~~year ~~loaned~~ended ~~the~~December ~~Company~~31, ~~the capital~~2018 to ~~purchase~~have the equipment. fixed ~~The~~for ~~note~~the ~~issued~~New toLab, ~~AVDX~~so isthe aLicensor ~~demand~~could ~~promissory~~assist ~~note~~management ~~that~~with ~~bears~~the noset ~~interest~~up and isvalidation ~~secured~~of by the equipment. ~~During~~to ~~the~~be ~~fiscal~~used ~~year~~for the ~~ended~~technology. ~~September~~The ~~30,~~Company ~~2018,~~continues ~~AVDX,~~to ~~Busch~~build ~~and~~out ~~his~~the ~~affiliated~~lab ~~entities~~and ~~also~~plans ~~loaned~~to ~~and/or~~have ~~paid certain~~it ~~obligation~~operational ~~amounts~~during onthe ~~behalf~~fiscal ofyear ~~the~~ended ~~Company~~September 30, 2019.

Once the Company reacquired the equipment for the laboratory, management undertook a review of the Company’s current operations and decided to move the CLIA laboratory from Maryland to Golden, Colorado (the “New Lab”) In connection with the relocation to the New Lab, the Company executed a lease, built out the space for the New Lab and moved the equipment from Maryland to Colorado. In connection with this relocation, management, in consultation with scientists from George Mason University, the licensor of the Company’s Theralink® technology (“Licensor”), evaluated the status of the Company’s equipment. It was determined that the equipment was not properly maintained and was left in poor working order. As a result, the Company had to spend approximately $152,209 during the fiscal year ended September 30, 2018 to have the equipment fixed for the New Lab, so the Licensor could assist management with the set up and validation of the equipment to be used for the technology. The Company continues to build out the lab and plans to have it operational during the fiscal year ended September 30, 2019.-26-

Results of Operations

Comparison of the ~~Nine~~Three Months Ended ~~June~~December 3031, 2018 to the ~~Nine~~Three Months Ended ~~June~~December 3031, 2017

Revenue

For ~~nine~~three months ended ~~June~~December 3031, 2018, total revenue was $-0- compared to $~~255,951~~-0- for the same period in fiscal 2017. The revenue ~~for~~ for the ~~nine~~three months ended ~~June~~December 3031, 2017 and 2018 was related to pharma projects and is comprised of performance under research and development contracts.

Cost of Revenue

~~Cost of revenue was $24,787 or 9.68% of related sales for the nine months ended June 30, 2017 giving us a gross profit of $231,164 or 90.32%.~~ We did not have revenue or cost of revenue for ~~same~~the period inDecember 31, 2017 or 2018.

Operating Expenses

General and administrative expenses

General and administrative expenses ~~decreased~~increased by $~~811~~29,~~608~~172 from $1247,~~806,998~~832 to $~~995~~277,~~390~~004 for the ~~nine~~three months ended ~~June~~December 3031, 2018, as compared to the same period in 2017. The overall ~~decrease~~increase is primarily ~~the~~ result of nothe ~~operating~~increase ~~activities~~in ofsalaries ~~THI~~and wages, ~~net~~payroll ~~with reductions~~expenses, inand ~~service~~conferences ~~provider costs of Avant~~. In addition, during the current ~~year~~quarter, we amortized certain intangible assets and patents. As such, amortization was $~~335~~121,~~695~~024 for the ~~nine~~three months ended ~~June~~December 3031, 2018 as compared to $~~335~~111,~~737~~898 for the same period, last year.

Professional fees

Professional fee expenses ~~decrease~~increased by $6128,~~379,028~~156 from $6112,~~896,682~~803 to $~~517~~240,~~654~~959 for the same period, respectively which was primarily due from ~~legal~~ legal and consultants fees incurred in the current period. Common stock issued for professional services was expensed at the grant ~~date~~ date stock price.

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Other Expenses:

Interest expense

Interest expense during the ~~nine~~three months ended ~~June~~December 3031, 2018 was ($76,~~515)~~744 compared to $~~553~~33,~~315~~738 for the ~~nine~~three months ended ~~June~~December 3031, 2017. Interest expense primarily consists of ~~amortization of debt discounts and~~ accrued interest incurred relating to our issued convertible ~~notes~~ and nonconvertible notes payable.

Loss on change in fair value of derivative

During ~~nine~~three months ended ~~June~~December 3031, 2018, we ~~issued~~had convertible promissory notes with an embedded derivative, all requiring us to fair value the derivatives each reporting period and mark to market as a non-cash adjustment to our current period operations. This resulted in a loss of $186,~~474,779~~403 on change in fair value of derivative liabilities for the ~~nine~~three months ended ~~June~~December 3031, 2018.

Liquidity and Capital Resources

Working Capital

The following table sets forth a summary of working capital as of:

	June 30, 2018			September 30, 2017
	December 31, 2018			September 30, 2018
Current assets	$	~~267~~62,~~938~~248		$	130,~~348~~896
Current liabilities		23,~~686~~029,~~948~~772			42,~~252~~748,~~921~~468
Working capital	$	(2,~~419~~967,~~009~~524	)	$	(42,~~251~~717,~~574~~572	)

Current assets increased by $266,590 from $1,348 to $267,938 for the nine months ended June 30, 2018, as compared to September 30, 2017. The overall increase is primarily due to the subscriptions of Series A during the nine months ended June 30, 2018 for net proceeds of $930,000 and $-027-~~, respectively.~~

~~The~~Current ~~decline~~assets inincreased by $31,352 from $30,896 to $62,248 for the ~~working~~three ~~capital~~months ~~deficit~~ended isDecember ~~primarily~~31, ~~due~~2018, as compared to anSeptember ~~increase~~30, 2018. inThe ~~accounts~~overall ~~payable~~increase ~~and~~is ~~offset~~primarily bydue anto ~~increase~~the subscriptions of ~~cash~~Series ~~and reduction~~A induring ~~accrued~~the ~~interest,~~three ~~accrued~~months ~~expenses~~ended December 31, ~~payroll~~2018 ~~and~~for net ~~benefits~~proceeds of $259,470 and ~~derivative~~$-0-, ~~liabilities~~respectively.

The decline in the working capital deficit is primarily due to an increase in accounts payable and accrued expenses, accrued payroll and benefits and offset by an increase of cash and reduction in derivative liabilities.

Cash Flows

The following table sets forth a summary of changes in cash flows for the ~~nine~~three months ended ~~June~~December 3031, 2018 and 2017:

	Nine Months Ended June 30,
	There Months Ended December 31,
	2018			2017
Net cash used in operating activities	$	(2297,~~374,351~~919	)	$	~~584~~29,~~496~~619
Net cash provided by (used in) investing activities		569,~~580~~800			~~(242~~20,~~648~~000	)
Net cash provided by financing activities		2259,~~635,361~~470			~~(275,006~~-	)
Change in cash	$	~~266~~31,~~590~~352		$	6649,~~842~~619

Total net cash decreased due to a decrease in cash provided by operating activities which was offset by changes in our operating assets and liabilities of ($2202,~~374,351~~492), amortization and depreciation of $~~335~~9,~~695~~024, and with loss on change in derivative liability of ($186,~~474,779~~403) for the ~~nine~~three months ended ~~June~~December 3031, 2018. Net cash provided by investing activities for the ~~nine~~three months ended ~~June 30,~~December 31, 2018 compared to ~~June~~December 3031, 2017 was primarily from licensing and other assets of $569,~~580~~800 and ($~~242~~20,~~648)~~000, respectively. Net cash provided by financing activities for the ~~nine~~three months ended ~~June~~December, 3031 2018 is due to net cash proceeds from the issuance of ~~convertible~~ ~~notes,~~ preferred stock, ~~and common stock~~ of $2259,~~635,361~~470 compared to ($~~275,006)~~-0- for ~~June~~December 3031, 2017.

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Going Concern

The unaudited condensed consolidated financial statements contained in this quarterly report have been prepared assuming that the Company will continue as a going concern. We have accumulated losses since inception of approximately $3233.7098 million. Presently, we do not have sufficient cash resources to meet our plans for the next twelve months. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The unaudited condensed consolidated financial statements do not include any adjustments that may be necessary should the Company be unable to continue as a going concern. Our continuation as a going concern is dependent on our ability to obtain additional financing as may be required and ultimately to attain profitability.

We believe that we will require additional financing to carry out our intended objectives during the next twelve months. There can be no assurance, however, that such financing will be available or, if it is available, that we will be able to structure such financing on terms acceptable to us and that it will be sufficient to fund our cash requirements until we can reach a level of profitable operations and positive cash flows. If we are unable to obtain the financing necessary to support our operations, we may be unable to continue as a going concern. We currently have no firm commitments for any additional capital. Further, if we issue additional equity or debt securities, stockholders may experience additional dilution or the new equity securities may have rights, preferences or privileges senior to those of existing holders of our shares of common stock or the debt securities may cause us to be subject to restrictive covenants.

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Even if we are able to raise the funds required, it is possible that we could incur unexpected costs and expenses or experience unexpected cash requirements that would force us to seek additional financing. If additional financing is not available or is not available on acceptable terms, we will have to curtail our operations.

Cash Requirements

Our plan of operation over the next 12 months is to:

● Get current with the Securities and Exchange Commission; ● Hire 2 Ph.D.’s, 1 histotech and an office manager to begin the staffing of the lab; ● Open the laboratory under GLP compliance; ● Begin the process for CAP/CLIA certification; ● Continue on the road map towards a reimbursement code; ● Hire a Chief Financial Officer or Manager of Finance; ● Obtain contracts for pre-clinical and clinical research with biopharma companies; ● Continue to seek financing to grow the company

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 is material to stockholders.

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Effects of Inflation

We do not believe that inflation has had a material impact on our business, revenues or operating results during the periods presented.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not Applicable

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

As required by Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), our management carried out an evaluation, with the participation of our Chief Executive Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) of the Exchange Act), as of the period covered by this report. Disclosure controls and procedures are defined as controls and other procedures that are designed to ensure that information required to be disclosed by us in reports filed with the SEC under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. Based upon their evaluation, our management (including our former Chief Executive Officer) concluded that our disclosure controls and procedures were not effective as of June 30, 2018, based on the material weaknesses defined below:

	(i)	inadequate segregation of duties consistent with control objectives; and

	(ii)	ineffective controls over period end financial disclosure and reporting processes.

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Management’s Remediation Plan

We plan to take steps to enhance and improve the design of our internal control over financial reporting. During the period covered by this quarterly report on Form 10-Q, we have not been able to remediate the material weaknesses identified above. To remediate such weaknesses, we plan to implement the following changes in the future:

	(i)	appoint additional qualified personnel to address inadequate segregation of duties and ineffective risk management; and

	(ii)	adopt sufficient written policies and procedures for accounting and financial reporting.

The remediation efforts set out in (i) are largely dependent upon our company securing additional financing to cover the costs of implementing the changes required. If we are unsuccessful in securing such funds, remediation efforts may be adversely affected in a material manner. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues, if any, within our company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake.

Management believes that despite our material weaknesses set forth above, our condensed consolidated financial statements for the quarter ended ~~June~~December 3031, 2018 are fairly stated, in all material respects, in accordance with US GAAP.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the quarter ended ~~June~~December 3031, 2018 that ~~have~~ have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, we may become involved in various lawsuits and legal proceedings that arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. We are not currently a party to any material legal proceedings except as described below.

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-31-

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ITEM 1A. RISK FACTORS

As a smaller reporting company (as defined in Rule 12b-2 of the Exchange Act), we are not required to provide the information called for by this Item 1A.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Unless otherwise set forth above, the securities described above were not registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state, and were offered and sold in reliance on the exemption from registration afforded by Section 4(a)(2) under the Securities Act an and corresponding provisions of state securities laws, which exempt transactions by an issuer not involving any public offering.

~~-37-~~On October 17, 2018, the Company entered into a securities purchase agreement with Henry Cole, a director of the Company, pursuant to which the Company sold an aggregate of twenty thousand (20,000) shares of its Series A Preferred Stock for aggregate gross proceeds of $20,000.

~~During~~On October 17, 2018, the ~~nine~~Company ~~months~~entered ~~ended~~into ~~June~~a ~~30,~~securities ~~2018~~purchase agreement with Jeffrey Busch, the Company’s ~~issued~~executive 40chairman,~~000~~ pursuant ~~restricted~~to ~~shares~~which the Company sold an aggregate of ~~common~~two ~~stock~~thousand-five ~~for~~hundred ~~bonus~~(2,500) shares toof aits ~~note~~Series A Preferred Stock for aaggregate ~~fair~~gross ~~value~~proceeds of $12,~~200~~500.

~~During~~On ~~the~~October ~~nine months ended June 30~~26, 2018, the Company ~~issued~~entered 2into a securities purchase agreement with Dr. Rajesh Shrotriya,~~898,551~~ ~~restricted~~a ~~shares~~director of ~~common~~the ~~stock~~Company, a todirector ~~Amarantus~~of ~~BioScience~~the ~~Holdings~~Company, ~~Inc.~~ ~~converting~~pursuant ~~part~~to which the Company sold an aggregate of ~~their~~one ~~contingency~~hundred ~~liability~~thousand ~~for~~(100,000) ~~legal~~shares ~~settlement~~of its Series A Preferred Stock for aaggregate ~~fair~~gross ~~value~~proceeds of $57100,~~971~~000.

~~During~~On ~~the~~November ~~nine months ended June 30~~26, 2018, the Company ~~issued~~entered ~~30,092,073~~into ~~restricted~~a ~~shares~~securities ofpurchase ~~common~~agreement ~~stock~~with toan ~~Amarantus~~accredited ~~BioScience Holdings~~investor, ~~Inc~~ pursuant to ~~relinquish~~which ~~all~~the Company ~~convertible~~sold ~~notes,~~an ~~accrued~~aggregate ~~interest~~of twenty-five thousand (25,000) ~~and~~shares ~~notes~~of ~~receivable~~its ~~for~~Series aA ~~fair~~Preferred ~~value~~Stock for aggregate gross proceeds of $~~373~~25,~~440~~000.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not Applicable.

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ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

No.		Description

31.1*		Certification Statement of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2*		Certification Statement of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1*		Certification Statement of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2*		Certification Statement of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101*		Financial statements formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations and Comprehensive Loss, (iii) the Condensed Consolidated Statements of Changes in Stockholders’ equity (iv) the Condensed Consolidated Statements of Cash Flows and (v) the Notes to Condensed Consolidated Financial Statements tagged as blocks of text.

*	Filed herewith

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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.

	AVANT DIAGNOSTICS, INC.
Date: January 30, 2019	By:	/s/ Mick Ruxin
Date: March 13, 2019	By:	/s/ Mick Ruxin
		Mick Ruxin, M.D.
		Chief Executive Officer (Principal Executive Officer)

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Filing Compare · Avant Diagnostics, Inc