UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

[X] Quarterly Report Pursuant to Section 13 Or 15(d) Of The Securities Exchange Act of 1934

For the quarterly period ended ~~October~~January 31, ~~2019~~2020

[ ] Transition Report Under Section 13 Or 15(d) Of The Securities Exchange Act of 1934

For the transition period ________ to ________

COMMISSION FILE NUMBER 000-~~23920~~52711

REGI, U.S., INC.

(Exact name of small business issuer as specified in its charter)

OREGON		91-1580146
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)
7520 N Market St., #10, Spokane, WA (Address of principal executive office)		99217 (Postal Code)

7520 N Market St., #10, Spokane, WA		99217
(Address of principal executive office)		(Postal Code)

(509) 474-1040
(Issuer’s telephone number)

(509) 474-1040

(Issuer’s telephone number)

Title of Each Class		Trading Symbol		Name of Each Exchange on Which Registered
Common Stock,		RGUS		OTCQB

Indicate by check mark whether the issuer (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 [X] No [ ]

Indicate by checkmark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post filed). Yes [X] No [ ]

Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “Accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act (Check one):

	Large Accelerated Filer [ ]		Accelerated Filer [ ]
	Non-Accelerated Filer [X]		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]

As of ~~December~~April 320, ~~2019~~2020, there were ~~115~~121,~~838~~393,~~601~~082 shares of registrant’s common stock, no par value, issued and outstanding.

NOTE 1 - Contents

PART I - FINANCIAL INFORMATION		3
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION.	2526
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	2829
ITEM 4.	CONTROLS AND PROCEDURES	2829
PART II - OTHER INFORMATION		2830
ITEM 1.	LEGAL PROCEEDINGS.	2830
ITEM 1A.	RISK FACTORS.	2830
ITEM 2.	RECENT SALES OF UNREGISTERED SECURITIES.	2830
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES.	3031
ITEM 4.	MINE SAFETY ~~DISCOSURES~~DISCLOSURES.	3031
ITEM 5.	OTHER INFORMATION.	3031
ITEM 6.	EXHIBITS	31

PART I - FINANCIAL INFORMATION

REGI U.S., INC.

CONSOLIDATED BALANCE SHEETS

	October 31, 2019 (Unaudited)			April 30, 2019
	January 31, 2020 (Unaudited)			April 30, 2019
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	~~325~~102,~~446~~935		$	19,044
Accounts receivable		632,~~250~~021			10,000
Prepaid expenses		168,~~540~~056			8,683
Inventory		6,604			-
Other receivables, net of allowance for uncollectible accounts		4,675			4,675
TOTAL CURRENT ASSETS		~~352~~154,~~911~~291			42,402
Furniture and equipment, net		104,105			20,968
FURNITURE AND EQUIPMENT, NET		116,048			20,968
TOTAL ASSETS	$	457,016		$	63,370
DEPOSIT		2,000			-
TOTAL ASSETS	$	272,339		$	63,370
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable and accrued liabilities	$	~~888~~756,~~833~~426		$	769,454
Due to related parties		53,099			53,099
Deferred revenue		2225,~~500~~000			25,000
Derivative liability, net of unamortized discount of $Nil and $59,368, respectively		-			306,696
Derivative liability, net of unamortized discount of $Nil and $20,470, respectively		-			306,696
Convertible promissory notes, current portion - net of unamortized discount of $25,600 and $160,065, respectively		877,672			1,087,613
Convertible promissory notes, current portion - net of unamortized discount of $2,062 and $160,065, respectively		569,421			1,087,613
Other notes payable, current portion		4446,~~658~~960			25,000
TOTAL CURRENT LIABILITIES		1,~~886~~450,~~762~~906			2,266,862
LONG-TERM LIABILITIES:
Convertible promissory notes – long term portion, net of unamortized discount of $99,347 and $5,570, respectively		742,446			415,792
Convertible promissory notes – long term portion, net of unamortized discount of $144,081 and $5,570, respectively		969,034			415,792
Other notes payable, long term portion		~~309~~315,~~821~~950			15,969
TOTAL LONG-TERM LIABILITIES		1,~~052~~284,~~267~~984			431,761
TOTAL LIABILITIES		2,~~939~~735,~~027~~890			2,698,623
COMMITMENTS AND CONTINGENCIES		-			-
STOCKHOLDERS’ EQUITY (DEFICIT)
Common Stock, no par value; unlimited shares authorized; 110,568,908 and 108,911,309 shares issued and outstanding, respectively		24,537,335			24,091,017
Common Stock, no par value; unlimited shares authorized; 118,358,476 and 108,911,309 shares issued and outstanding, respectively		25,164,119			24,091,017
Returnable shares issued Nil and 2,000,000 shares, respectively		-			(114,000	)
Shares to be issued		~~264,830~~-			19,117
Accumulated deficit		(2627,~~976~~319,~~186~~678	)		(26,323,395	)
Accumulated other comprehensive loss		(362,775	)		(362,775	)
TOTAL REGI US, Inc. stockholders’ deficit		(2,~~536~~518,~~796~~334	)		(2,690,036	)
Non-controlling interest		54,783			54,783
TOTAL STOCKHOLDERS’ DEFICIT		(2,~~482~~463,~~013~~551	)		(2,635,253	)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	~~457~~272,~~016~~339		$	63,370

The accompanying notes are an integral part of these consolidated financial statements.

Page 3 of 3233

REGI U.S., INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)

	Three months ended October 31,						Six months ended October 31,
	Three months ended January 31,						Nine months ended January 31,
	2019			2018			2019			2018
	2020			2019			2020			2019
TOTAL REVENUE FROM SALES	$	-		$	40,000		$	25,000		$	40,000
REVENUE	$	37,750		$	35,000		$	62,750		$	75,000
COST OF REVENUE		18,188			-			18,188			-
GROSS MARGIN		19,562			35,000			44,562			75,000
OPERATING EXPENSE
Accounting and legal		1725,~~654~~126			2530,~~233~~831			4772,~~854~~980			4576,~~954~~785
Consulting and management		1,253			69,623			163,274			166,537
Compensation and consulting		232,059			72,296			395,333			238,833
Stockholder relations		~~11,479~~(357	)		1613,~~733~~124			5554,~~206~~849			3750,~~343~~467
Depreciation and amortization		27,~~364~~058			~~1,552~~946			512,~~003~~061			34,~~103~~049
Stock-based compensation		~~149~~19,~~877~~740			-			~~197~~217,~~961~~701			-
General and administrative expenses		299,~~793~~692			819,~~290~~608			5363,~~674~~366			3049,~~015~~623
Research and development		62(115,~~091~~675	)		~~121~~124,~~050~~301			~~191~~76,~~709~~034			~~241~~365,~~408~~709
TOTAL OPERATING EXPENSES		~~274~~177,~~511~~643			~~242~~261,~~481~~106			~~714~~892,~~681~~324			~~524~~785,~~360~~466
LOSS FROM OPERATIONS		(~~274~~158,~~511~~081	)		(~~202~~226,~~481~~106	)		(~~689~~847,~~681~~762	)		(~~484~~710,~~360~~466	)
OTHER INCOME (EXPENSE)
Interest expense		(30,136	)		(162,115	)		(63,197	)		(315,178	)
Interest and financing expense		(33,127	)		(237,081	)		(96,324	)		(552,258	)
Interest expense, related party		(2528,~~477~~331	)		-			(4978,~~985~~316	)		-
Amortization of derivative and debt discount		(6148,~~311~~540	)		-			(~~177~~225,~~094~~634	)		-
Gain on settlement of debt		-			7,217			-			7,217
Loss on issuance of note		-			(156,870	)		-			(156,870	)
Gain on change in fair value of derivative liability		-			-			327,166			-
Loss on extinguishment of debt		(75,413	)		-			(75,413	)		-
Miscellaneous revenue		-			15,000			-			15,000
Loss on settlement of debt		-			(57,605	)		-			(50,388	)
TOTAL OTHER INCOME (EXPENSE)		(116,924	)		(139,898	)		36,890			(292,961	)
Loss on change in fair value of derivative liability		-			(311,071	)		327,166			(311,071	)
NET LOSS	$	(391,435	)	$	(342,379	)	$	(652,791	)	$	(777,321	)
Miscellaneous revenue		-			-			-			15,000
Loss per share – basic and diluted	$	(0.004	)	$	(0.003	)	$	(0.006	)	$	(0.008	)
TOTAL OTHER INCOME (EXPENSE)		(185,411	)		(762,627	)		(148,521	)		(1,055,587	)
Weighted average number of common shares outstanding – basic and diluted		108,348,304			100,991,028			108,033,606			100,391,218
NET LOSS	$	(343,492	)	$	(988,733	)	$	(996,283	)	$	(1,766,053	)
Loss per share – basic and diluted	$	(0.00	)	$	(0.01	)	$	(0.01	)	$	(0.02	)
Weighted average number of common shares outstanding – basic and diluted		111,705,233			103,289,817			108,033,606			101,865,541

The accompanying notes are an integral part of these consolidated financial statements.

Page 4 of 3233

REGI U.S., INC.

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (Unaudited)

For the ~~six~~nine months ended ~~October~~January 31, ~~2019~~2020 and ~~2018~~2019

	Common shares			Capital			Returnable shares			Shares to be issued			Retained deficit			Accumulated Other Comprehensive loss			Total Stockholders’ Deficit			Non- controlling interest		Total
Balance at April 30, 2018		99,698,583		$	22,956,578		$	-		$	-		$	(24,063,399	)	$	(358,675	)	$	(1,465,496	)	$	54,783	$	(1,410,713	)
Net loss								-			-			(434,942	)					(434,942	)				(434,942	)
Shares issued for debt conversion		129,672			12,963			-			-									12,963					12,963
Beneficial conversion feature					5,850			-			-									5,850					5,850
Balance at July 31, 2018		99,828,255		$	22,975,391		$	-		$	-		$	(24,498,341	)	$	(358,675	)	$	(1,881,625	)	$	54,783	$	(1,826,842	)
Net loss		-			-			-			-			(342,379	)		-			(342,379	)		-		(342,379	)
Shares issued for debt conversion		737,189			63,275			-			-			-			-			63,275			-		63,275
Shares issued for debt conversion, related parties		1,200,000			120,000			-			-			-			-			120,000			-		120,000
Balance at October 31, 2018		101,765,444		$	23,158,666		$	-		$	-		$	(24,840,720	)	$	(358,675	)	$	(2,040,729	)	$	54,783	$	(1,985,946	)
Net loss		-			-			-			-			(988,733	)		-			(988,733	)		-		(988,733	)
Shares issued for debt conversion		1,937,596			175,593			-			-			-			-			175,593			-		175,593
Returnable shares issued		2,000,000			114,000			(114,000	)		-			-						-					-
Shares issued for service		40,000			2,000			-			-			-			-			2,000			-		2,000
Balance at January 31, 2019		105,743,040		$	23,450,259		$	(114,000	)	$	-		$	(25,829,452	)	$	(358,675	)	$	(2,851,868	)	$	54,783	$	(2,797,085	)
Balance at April 30, 2019		108,911,309		$	24,091,017		$	(114,000	)	$	19,117		$	(26,323,395	)	$	(362,775	)	$	(2,690,036	)		54,783	$	(2,635,253	)
Net loss		-			-			-			-			(261,356	)		-			(261,356	)		-		(261,356	)
Share based compensation		-			48,084			-			-			-			-			48,084			-		48,084
Shares issued for common shares and warrants		-			-			-			20,000			-			-			20,000			-		20,000
Shares issued for debt conversion		156,432			24,566			-			-			-			-			24,566			-		24,566
Beneficial conversion feature		-			30,000			-			-			-			-			30,000			-		30,000
Shares to be issued		251,167			19,117			-			(8,737	)		-			-			10,380			-		10,380
Returnable shares cancelled		(2,000,000	)		(114,000	)		114,000			-			-			-			-			-		-
Balance at July 31, 2019		107,318,908		$	24,098,784		$	-		$	30,380		$	(26,584,751	)	$	(362,775	)	$	(2,818,362	)		54,783	$	(2,763,579	)
Net loss		-			-			-			-			(391,435	)		-			(391,435	)		-		(391,435	)
Share based compensation		-			149,877			-			-			-			-			149,877			-		149,877
Shares issued for common shares and warrants		2,400,000			120,000						264,830			-			-			384,830			-		384,830
Shares issued for debt conversion		550,000			63,000			-			(30,380	)		-			-			32,620			-		32,620
Shares issued for accrued liabilities		300,000			19,740			-			-			-			-			19,740			-		19,740
Beneficial conversion feature		-			85,934			-			-			-			-			85,934			-		85,934
Balance at October 31, 2019		110,568,908		$	24,537,335		$	-		$	264,830		$	(26,976,186	)	$	(362,775	)	$	(2,536,796	)	$	54,783	$	(2,482,013	)
Net loss		-			-			-			-			(343,492	)		-			(343,492	)		-		(343,492	)
Shares issued for common shares and warrants		5,322,860			272,600						(260,000	)		-			-			12,600			-		12,600
Shares issued for debt conversion		2,388,175			203,143			-			(4,830	)		-			-			198,313			-		198,313
Shares issued for accrued liabilities		78,533			5,890			-			-			-			-			5,890			-		5,890
Extinguishment of debt					75,413			-			-			-			-			75,413			-		75,413
Beneficial conversion feature		-			69,738			-			-			-			-			69,738			-		69,738
Balance at January 31, 2020		118,358,476		$	25,164,119		$	-		$	-		$	(27,319,678	)	$	(362,775	)	$	(2,518,334	)	$	54,783	$	(2,463,551	)

The accompanying notes are an integral part of these consolidated financial statements.

Page 5 of 3233

REGI U.S., INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	For the six months ended
	For the nine months ended
	October 31, 2019			October 31, 2018
	January 31, 2020			January 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(~~652~~996,~~791~~283	)	$	(~~777~~1,~~321~~766,053	)
Adjustments to reconcile net loss to cash used by operating activities
Amortization of debt discount and promissory note fees		~~177~~225,~~094~~634			~~225~~523,~~199~~999
Change in fair value of derivative liability		(327,166	)
Loss on initial recording of derivative liability		-			131,871
Change in fair value of derivative liability		(327,166	)		-
Gain recognized on donated equipment		-			(15,000	)
Depreciation		5,003			3,103
Loss on extinguishment of convertible notes		75,413			-
Share based compensation		197,961
Depreciation		12,061			4,049
Convertible promissory notes issued for services					16,357
Share based compensation and shares issued for service		197,961			2,000
Convertible promissory notes issued for services		300			16,357
Convertible promissory notes, related party issued for services		75,000			79,332
Changes in operating assets and liabilities:
Prepaid expenses		~~(7,857~~627	)		~~7,776~~(244	)
Accounts receivable and other current assets		3(22,~~750~~021	)		-
Accounts payable, accrued interest and other accrued liabilities		162,938			287,171
Inventory		(6,604	)		-
Accrued interest		89,601			-
Deposit		(2,000	)		-
Deferred revenue		(2,500	)		-
Accounts payable, accrued interest and other accrued liabilities		209,510			325,636
Due to related parties		-			(11,539	)
Derivative liability		-			311,069
Net cash used by operating activities		(278,968	)		(184,922	)
Accrued interest		54,059			-
Due to related parties		-			8,373
Net cash used by operating activities		(503,509	)		(378,611	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of furniture and equipment		(5,601	)		-
Net cash used by investing activities		(5,601	)		-
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds (repayment) from promissory note, related party		225,370			(492	)
Proceeds from promissory note, related party		225,000			-
Proceeds from subscription of common stock		260,000			-
Repayment of promissory note, related party		(479	)		-
Proceeds from sales of common stock and warrants		120,000			-
Repayment of equipment loans		(4,120	)		-
Proceeds from issuance of convertible promissory notes		-			90,000
Proceeds from sales of common stock and warrants		132,600			-
Repayment of convertible promissory notes		(220,000	)		-
Proceeds from subscription of common stock		260,000			496,555
Proceeds from issuance of convertible promissory notes		-			-
Repayment of convertible promissory notes		(220,000	)		(169,200	)
Proceeds from issuance of convertible promissory notes, related party		200,000			-
Net cash provided by financing activities		~~585~~593,~~370~~001			89327,~~508~~355
Net increase (decrease) in cash and cash equivalents		~~306~~83,~~402~~891			(9551,~~414~~256	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		19,044			111,823
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	~~325~~102,~~446~~935		$	1660,~~409~~567
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments for:
Interest	$	~~360~~-		$	-
Taxes	$	-		$	-
NON-CASH FINANCING AND INVESTING ACTIVITIES:
Shares issued for conversion of promissory notes	$	87285,~~566~~879		$	~~170~~371,~~491~~831
Shares issued (returned) from security deposit		(114,000	)		-114,000
Discount on promissory notes for beneficial conversion features		~~115~~185,~~934~~670			5,850
Purchase of equipment with note payable		88101,~~140~~540			-
Accounts payable and accrued liabilities settled with convertible notes		6398,~~500~~070			253,~~746~~000
Shares issued for accrued liabilities		1929,740			-
Shares to be issued settled with common shares		19,117			-
Convertible notes settled with shares to be issued	$	4,830		$	-
Shares issued for vendor payables		96,898
Reclassification of rent deposit	$	2,000		$	-

The accompanying notes are an integral part of these consolidated financial statements.

Page 6 of 3233

REGI, U.S., INC. ~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) OCTOBER 31, 2019~~

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

JANUARY 31, 2020

1)	NATURE OF OPERATIONS

REGI U.S., Inc. (“we”, “our”, the “Company”, “REGI”) has been engaged in the business of developing and building improved axial vane-type rotary devices for civilian, commercial and government applications with the marketing and intellectual rights in the UUnited States.S. Effective February 17, 2017 REGI purchased the worldwide marketing and ~~intellectual~~ intellectual rights, other than in the U.S., from Reg Technologies, Inc. (“Reg Tech”), a British Columbia company.

REGI formed a wholly owned subsidiary, Rad Max Technologies, Inc., on April 10, 2007 in the State of Washington.

2)	SIGNFICANT ACCOUNTING POLICIES

Basis of Presentation

This summary of significant accounting policies is presented to assist in understanding the financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States.

Principles of consolidation

These financial statements include the accounts of the Company, its wholly owned subsidiary RadMax Technologies, Inc., and its previously wholly owned subsidiary Rand Energy Group Inc. (“Rand”).

All significant inter-company balances and transactions have been eliminated upon consolidation.

Investment in associates

Investments in which the Company has the ability to exert significant influence but does not have control are accounted for using the equity method whereby the original cost of the investment is adjusted annually for the Company’s share of earnings, losses and dividends during the current year.

The Company entered into a Mutual Accord and Purchase Agreement on March 7, 2018, to sell all its interest in Minewest Silver & Gold Inc. (“Minewest”), a British Columbia company, in exchange for settlement of its outstanding debt of $7,217 to Minewest. The Company completed the final transfer of mining rights and Claim titles to Minewest on August 13, 2018.

Risks and uncertainties

The Company operates in an emerging industry that is subject to market acceptance and technological change. The Company’s operations are subject to significant risks and uncertainties, including financial, operational, technological and other risks associated with operating an emerging business, including the potential risk of business failure.

Cash and cash equivalents

For the purposes of the statement of cash flows, the Company considers all highly liquid investments with original maturities of three months or less when acquired to be cash equivalents.

Page 7 of 3233

REGI, U.S., INC. ~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) OCTOBER 31, 2019~~

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

JANUARY 31, 2020

Revenue Recognition

The Company accounts for revenue in accordance with Accounting Standards Codification (ASC) Topic 606: Revenue from Contracts with Customers. Revenue is recognized using the following five-step model: (i) identification of the promised goods in the contract; (ii) determination of whether the promised goods are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company applies this model when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer.

Under Topic 606, a performance obligation is a promise in a contract with a customer to transfer a distinct good or service to the customer. The Company’s contracts with customers typically contain a single performance obligation. A contract’s transaction price is recognized as revenue when, or as, the performance obligation is satisfied.

The Company considers the contractual consideration payable by the customer when determining the transaction price of each contract. Revenue is recorded net of charges for certain sales incentives and discounts, and applicable state and local sales taxes, which represent components of the transaction price. Charges are estimated upon shipment of the product based on contractual terms, and actual charges typically do not vary materially from our estimates. Shipping estimates are determined by utilizing shipping costs provided by the various service providers websites based on number of packages, weight and destination. Shipping costs are included in the cost of goods sold as the revenue is captured in total sales.

The Company receives payments from customers based on the terms established in the Company’s contracts. When amounts are billed before a performance obligation has been satisfied, they are included in deferred revenue.

Performance obligations for product sales are satisfied as of a point in time. Revenue is recognized when control of the product transfers to the customer, generally upon product shipment. Performance obligations for site support and engineering services are satisfied over-time if the customer receives the benefits as we perform work and we have a contractual right to payment. Revenue recognized on an over-time basis is based on costs incurred to date relative to milestones and total estimated costs at completion to measure progress.

The Company product revenue includes compressors and expanders. The Company also provides direct site support and engineering services to customers, such as repair and upgrade of its products. During the year ended April 30, 2019, the Company’s revenue was $60,000 from sale of prototypes.

During the ~~six~~nine months ended ~~October~~January 31, ~~2019~~2020, revenue was earned from contract with two customers. As of ~~October~~January 31, ~~2019~~2020, the Company had a deferred revenue balance of $2225,~~500~~000 from these customers related to deliverables in progress at that date.

Furniture and equipment

Property and equipment are stated at cost, which includes the acquisition price and any direct costs to bring the asset into use at its intended location, less accumulated amortization.

Depreciation of property and equipment is calculated using the straight-line method to write off the cost, net of any estimated residual value, over their estimated useful lives of the assets as follows: Office equipment 5 years and electronic equipment 3 years.

Fair value of financial instruments

The carrying values of cash and cash equivalents, amounts due to related parties and accounts payable approximate their fair values because of the short-term maturity of these financial instruments.

Page 8 of 3233

REGI, U.S., INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

~~OCTOBER~~JANUARY 31, ~~2019~~2020

Fair value measurements

ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures.

When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period are included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date.

Derivative instruments

The Company has financing arrangements that contain freestanding derivative instruments or hybrid instruments that contained embedded derivative features. In accordance with U.S. GAAP, derivative instruments and hybrid instruments are recognized as either assets or liabilities in the Company’s balance sheet and are measured at fair value with gains or losses recognized in earnings depending on the nature of the derivative or hybrid instruments. Embedded derivatives that are not clearly and closely related to the host contract are bifurcated and recognized at fair value with changes in fair value recognized as either a gain or loss in earnings if they can be reliably measured. When the fair value of embedded derivative features cannot be reliably measured, the Company measures and reports the entire hybrid instrument at fair value with changes in fair value recognized as either a gain or loss in earnings. The Company determines the fair value of derivative instruments and hybrid instruments based on available market data using a Binomial model, giving consideration to all of the rights and obligations of each instrument and precluding the use of “blockage” discounts or premiums in determining the fair value of a large block of financial instruments. Fair value under these conditions does not necessarily represent fair value determined using valuation standards that give consideration to blockage discounts and other factors that may be considered by market participants in establishing fair value.

Interest Rate Risk

The Company is not exposed to significant interest rate risk due to the short-term maturity of its monetary assets and liabilities.

Credit Risk

The Company’s financial asset that is exposed to credit risk consists primarily of cash. To manage the risk, cash is placed with major financial institutions.

Currency Risk

The Company’s functional currency is the US dollar and the reporting currency is the US dollar.

Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income. Foreign currency transactions are primarily undertaken in US dollars. The Company has not, to the date of these consolidated financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.

For reporting purposes assets and liabilities with Canadian dollar as functional currency are translated into US dollar at the period end rates of exchange, and the results of the operations are translated at average rates of exchange for the period. The resulting translation adjustments are included the Company’s consolidated statements of operations and comprehensive loss and stated in US dollars.

Page 9 of 3233

REGI, U.S., INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

~~OCTOBER~~JANUARY 31, ~~2019~~2020

Income taxes

Deferred income taxes are reported for timing differences between items of income or expense reported in the consolidated financial statements and those reported for income tax purposes in accordance with ASC 740, “Income Taxes”, which requires the use of the asset/liability method of accounting for income taxes. Deferred income taxes and tax benefits are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases, and for tax losses and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company provides for deferred taxes for the estimated future tax effects attributable to temporary differences and carry-forwards when realization is more likely than not.

Basic and diluted net loss per share

Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible debt using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive.

Stock-based compensation

The Company accounts for stock-based compensation in accordance with FASB ASC 718 which establishes the accounting treatment for transactions in which an entity exchanges its equity instruments for goods or services. Under the provisions of FASB ASC 718, measurement of the value of employee services received in exchange for an award of an equity instrument based on the grant-date fair value of the award. Non-employee stock-based compensation is granted at the Board of Director’s discretion to award select consultants for exceptional performance. Prior to issuance of the awards, the Company is not under any obligation to issue the stock options. The award vests over a specified period determined by the Company’s Board of Directors. The measurement date of the grant is also the date of the award. The fair value of options is expensed ratably during the specified vesting period.

The Company estimates the fair value of employee stock option awards on the date of grant using a Black-Scholes valuation model which requires management to make certain assumptions regarding: (i) the expected volatility in the market price of the Company’s common stock; (ii) dividend yield; (iii) risk-free interest rates; and (iv) the period of time employees are expected to hold the award prior to exercised (referred to as the expected holding period). The expected volatility under this valuation model is based on the current and historical implied volatilities of the Company’s common stock. The dividend yield is based on the approved annual dividend rate in effect and current market price of the underlying common stock at the time of grant. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for bonds with maturities ranging from one month to five years. The expected holding period of the awards granted is estimated using the historical exercise behavior of employees. In addition, the Company estimates the expected impact of forfeited awards and recognize stock-based compensation cost only for those awards expected to vest. The Company utilizes historical experience to estimate projected forfeitures. If actual forfeitures are materially different from estimates, stock-based compensation expense could be significantly different from what we have recorded in the current period. The cumulative effect on current and prior periods of a change in the estimated forfeiture rate is recognized as compensation cost in the period of the revision.

The Company has adopted ASC 2018-07 for non-employee stock-based compensation.

Stock Granted to Employees and Non-Employees in Lieu of Cash Payments

The Company periodically issues shares of its common stock in lieu of cash payments to certain consultants, vendors and employees. The Company follows financial accounting standards that require the measurement of the value of services received in exchange for an award of an equity instrument based on the grant-date fair value of the award.

Page 10 of 3233

REGI, U.S., INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

~~OCTOBER~~JANUARY 31, ~~2019~~2020

Use of estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant areas requiring the use of management assumptions and estimates relate to long-lived asset impairments and stock-based compensation valuation. Actual results could differ from these estimates and assumptions and could have a material effect on the Company’s reported financial position and results of operations.

Research and development costs

Research and development costs are expensed as incurred.

Related Parties

In accordance with ASC 850 “Related Party Disclosure”, a party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal with if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests.

Reclassifications

Certain reclassifications have been made to the prior year financial information to conform to the presentation used in the financial statements for the three and ~~six~~nine months ended ~~October~~January 31, ~~2019~~2020. There is no impact to net income from the reclassification.

New Accounting Pronouncements

In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation, Improvements to Nonemployee Share-Based Payment Accounting. ASU No. 2018-07 aligns accounting for share-based payment transactions for acquiring goods and services from nonemployees with transaction with employees. The update is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company has elected early adoption of ASC 2018-07 for non-employee stock-based compensation.

In February 2016, the FASB issued ASU 2016-02 Leases (Subtopic 842), which requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by most leases. The update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The ASU is effective for the Company in the first quarter of fiscal year 2020. The Company currently holds no leases subject to ASU 2016-02.

Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures.

3)	GOING CONCERN

The Company incurred a net loss of $~~652~~996,~~791~~283 for the ~~six~~nine months ended ~~October~~January 31, ~~2019~~2020 and has a working capital deficit of $1,~~533~~296,~~851~~615 and an accumulated deficit of $2627,~~976~~319,~~186~~678 aton ~~October~~January 31, ~~2019~~2020. These factors raise substantial doubt about the ability of the Company to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. As a result, the Company’s consolidated financial statements as of ~~October~~January 31, ~~2019~~2020 and for the ~~six~~three months ended have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business.

Page 11 of 3233

REGI, U.S., INC. ~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) OCTOBER 31, 2019~~

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

JANUARY 31, 2020

The Company also receives interim support from related parties and plans to raise additional capital through debt and/or equity financings. There is no assurance that any of these activities will be successful. There continues to be insufficient funds to provide enough working capital to fund ongoing operations for the next twelve months.

4)	EARNINGS PER SHARE

Basic Earnings Per Share (“EPS”) is computed as net income (loss) available to common stockholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock options and warrants.

The outstanding securities at ~~October~~January 31, ~~2019~~2020 and April 30, 2019 that could have a dilutive effect are as follows:

	October 31, 2019		April 30, 2019
	January 31, 2020		April 30, 2019
Stock options		10,225,000		8,200,000
Warrants		79,~~742~~191,~~860~~432		-
Convertible notes and accrued interest, non-related parties		1417,~~326~~980,~~238~~060		19,520,948
Convertible notes and accrued interest, related parties		12,~~678~~689,~~325~~031		5,881,314
TOTAL POSSIBLE DILUTIVE SHARES		4450,~~972~~085,~~423~~523		33,602,262

For the three and ~~six~~nine months ended ~~October~~January 31, ~~2019~~2020 and ~~2018~~2019, respectively, the effect of the Company’s outstanding stock options would have been anti-dilutive and so are excluded in the diluted EPS.

5)	FAIR VALUE OF FINANCIAL INSTRUMENTS

The carrying values of cash and cash equivalents and conversion notes approximate fair value due to their limited time to maturity or ability to immediately convert them to cash in the normal course. The carrying values of convertible notes is net of a discount and does not reflect fair value of similar instruments. The approximate fair value of the convertible notes and accrued interest based upon the number of shares into which the notes and accrued interest are convertible is $12,~~998~~269,~~338~~423 and $1,978,836 using the closing price per share of stock at ~~October~~January 31, 2020 and April 30, 2019, respectively.

The table below sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of ~~October~~January 31, ~~2019~~2020 and April 30, 2019, respectively, and the fair value calculation input hierarchy that the Company has determined has applied to each asset and liability category.

	October 31, 2019		April 30, 2019		Input Hierarchy Level
	January 31, 2020		April 30, 2019		Input Hierarchy Level
Liabilities:
Conversion option derivative	$	Nil	$	306,696	Level 3

Page 12 of 3233

REGI, U.S., INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

~~OCTOBER~~JANUARY 31, ~~2019~~2020

6)	PROPERTY AND EQUIPMENT

Property and equipment at ~~October~~January 31, ~~2019~~2020 and April 30, 2019 consists of the following:

	October 31, 2019			April 30, 2019
	January 31, 2020			April 30, 2019
Equipment	$	~~110~~129,~~180~~181		$	22,040
Furniture and fixtures		14,213			14,213
		124,393			36,253
		143,394			36,253
Less accumulated depreciation		(2027,~~288~~346	)		(15,285	)
TOTAL PROPERTY AND EQUIPMENT	$	~~104~~116,~~105~~048		$	20,968

Depreciation expense totaled $27,~~364~~058 and $~~1,552~~946 for the three months ended ~~October~~January 31, ~~2019~~2020 and ~~2018~~2019, respectively. Depreciation expense was $512,~~003~~ 061 and $34,~~103~~049 for the ~~six~~nine months ended ~~October~~January 31, ~~2019~~2020 and ~~2018~~2019, respectively.

7)	ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts payable and accrued liabilities at April 30, 2019 consist of the following:

	Related party		Non-related party		Total
Accounts payable	$	96,721	$	46,029	$	142,750
Interest payable		33,641		168,726		202,367
Other accrued liabilities		287,425		136,912		424,337
	$	417,787	$	351,667	$	769,454

Accounts payable and accrued liabilities at ~~October~~January 31, ~~2019~~2020 consist of the following:

Related party

Non-related party

Total

Accounts payable

~~111~~79,~~293~~828

1710,~~007~~254

~~128~~90,~~300~~082

Interest payable

8468,~~276~~470

~~146~~90,~~272~~299

~~230~~158,~~548~~769

Other accrued liabilities

~~358~~350,~~348~~471

~~171~~157,~~637~~104

~~529~~507,~~985~~575

~~553~~498,~~917~~769

~~334~~257,~~916~~657

~~888~~756,~~833~~426

Related parties are the officers of the Company, companies with common directors or owners, and companies indirectly controlled by directors or officers of the Company. Amounts owed to directors or officers of the Company as of ~~October~~January 31, ~~2019~~2020 and April 30, 2019 are the result of consulting fees that are disclosed as director or executive compensation above, including amounts paid for benefit of the Company and represents out-of-pocket expenses that were not paid as of ~~October~~January 31, ~~2019~~2020 and April 30, 2019 respectively.

The Company does not have written agreements relating to related party advances, except as delineated in several on-demand promissory and convertible promissory notes, related parties (Note 9 and Note 11). The balances are non-interest bearing, unsecured and due on demand per verbal agreements with these related parties.

During the three months ended ~~October~~January 31, ~~2019~~2020, the Company recognized $Nil of management fees and salaries and $Nil of payroll tax expense for related parties. During the three months ended ~~October~~January 31, ~~2018~~2019, the Company recognized $5724,~~719~~847of of management fees and salaries and $~~9,563~~Nil of payroll tax expense for related parties.

During the ~~six~~nine months ended ~~October~~January 31, ~~2019~~2020, the Company recognized $9395,~~750~~656 of management fees and salaries, $79,~~172~~075 of payroll tax ~~expense~~ expense and $19,740 of directors fees for related parties. During the ~~six~~nine months ended ~~October~~January 31, ~~2018~~2019, the Company recognized $~~125~~187,~~057~~ 507 of management fees and salaries and $209,~~719~~283 of payroll tax expense for related parties.

~~Page~~The amounts 13owed to related parties include accrued payroll and payroll taxes which, as of 32January 31, 2020 and April 30, 2019, were $350,471 and $287,425, respectively.

Page 13 of 33

REGI, U.S., INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

~~OCTOBER~~JANUARY 31, ~~2019~~2020

The amounts owed to related parties include accrued payroll and payroll taxes which, as of October 31, 2019 and April 30, 2019, were $358,348 and $287,425, respectively.

8)	DUE TO RELATED PARTIES

Related parties are the officers of the Company, companies with common directors or owners, and include companies indirectly controlled by directors or officers of the Company.

During the three months ended ~~October~~January 31, ~~2019~~2020, changes to the amounts owed to/by related parties are as follows:

	April 30, 2019			(Repayment)/Loan		~~October~~January 31, ~~2019~~2020
Due to Minewest	$	-		$	-	$	-
Due from Linux Gold Corp.		(191	)		-		(191	)
Due to IAS Energy, Inc.		7,431			-		7,431
Due to Information Highway, Inc.		18,792			-		18,792
Due to Teryl Resources Corp.		27,067			-		27,067
Total	$	53,099		$	-	$	53,099

9)	SECURED CONVERTIBLE PROMISSORY NOTES

THREE AND ~~SIX~~NINE MONTHS ENDED ~~OCTOBER~~JANUARY 31, ~~2018~~2019

As of ~~October~~January 31, ~~2018~~2019, REGI had outstanding senior secured convertible promissory notes (the “Convertible Notes”) of $~~257~~253,~~007~~783 (net of unamortized discount of $3428,~~903)~~901 issued to related parties and $1,~~117~~378,~~770,~~472 (net of unamortized discount of $~~321~~238,~~943~~855) issued to non-related parties.

During the ~~six~~nine months ended ~~October~~January 31, ~~2018~~2019 the Company issued Convertible Notes for service debt provided by related parties of $4779,~~400~~332and $16,357 to non-related parties. During the nine months ended January 31, 2019 the Company issued Convertible Notes for cash proceeds of $39,200 to related parties and $457,355 to non-related parties while redeeming $16,000 of related parties and $150,000 or non-related parties Convertible Notes for cash.

The Convertible Notes are secured against all assets of the Company, repayable two years after the issuance, bearing simple interest rate of 10% during the term of the notes and simple interest rate of 20% after the due date with the exception of one Convertible Note of $140,278 (net of unamortized discount of $3,012) repayable nine months after issuance, bearing simple interest of 2% during the term of the note and simple interest rate of 15% after the due date.

As of ~~October~~January 31, ~~2018~~2019, $17,436, $40,800, $1,~~513~~682,~~385~~576, $60,000 and $100,000 of the Convertible Notes are convertible at any time on or after ninety days from the issuance date into the Company’s common stocks at $0.174, $0.12, $0.10, $0.09 and $0.08 per share respectively.

The Company analyzed the conversion option in the notes for derivative accounting treatment under ASC Topic 815, “Derivatives and Hedging,” and determined that the instrument does not qualify for derivative accounting.

The Company determined that the conversion option was subject to a beneficial conversion feature and during the ~~six~~nine months ended ~~October~~ January 31, ~~2018~~2019 the company recorded amortization of the beneficial conversion feature of $113,692 as interest expense.

THREE AND SIX MONTHS ENDED OCTOBER 31, 2019

Non-related parties

On November 30, 2018, the Company issued a Convertible Note to Labrys Fund LP (the “Labrys Note”) in the amount of $220,000, of which $198,000 of the actual amount was received in cash proceeds by the company and the remaining $22,000 was recognized as an Original Issuance Discount, to be amortized over the life of the note. The Labrys Note was due on May 30, 2019 and bore simple interest of 12% per annum.

~~Page~~The Labrys 14Note allowed the holder to convert outstanding debt to shares of 32the Company’s common stock at a price other than a fixed conversion price per share. The conversion price of the Labrys Note is 60% of the lowest traded price of the Company’s common stock during the twenty consecutive trading day period immediately preceding any conversion notice. Management has determined that these provisions cause the conversion options to require derivative liability accounting (Note 10).

Page 14 of 33

REGI, U.S., INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

~~OCTOBER~~JANUARY 31, ~~2019~~2020

~~The~~In connection with Labrys Note, ~~allowed~~the Company also issued 2,000,000 shares of common stock (the ~~holder~~“Returnable Shares”) to the ~~convert~~holder ~~outstanding~~as ~~debt~~a tocommitment ~~shares~~fee, ofprovided however, the Returnable Shares must be returned to the Company’s ~~common~~treasury ~~stock~~if atthe Note ais ~~price~~fully ~~other~~repaid ~~than a~~prior ~~fixed~~to ~~conversion~~180 ~~price~~days ~~per~~after ~~share~~the issuance date. ~~The~~During ~~conversion~~the ~~price~~nine ofmonths ended January 31, 2020, the ~~Labrys~~Company ~~Note~~issued to isrelated ~~60%~~parties, oftwo ~~the~~secured ~~lowest~~promissory ~~traded~~notes ~~price~~in the amounts of ~~the~~$150,000 ~~Company’s~~and $75,000, respectively. See Note 11 for further ~~common~~discussion. ~~stock~~The ~~during~~Company used $220,000 of the ~~twenty~~proceeds ~~consecutive~~from ~~trading~~the ~~day~~notes ~~period~~to ~~immediately~~pay ~~preceding~~the ~~any~~outstanding ~~conversion~~balance ~~notice.~~of ~~Management~~the ~~has~~Labrys ~~determined~~Note. On June ~~that~~5, ~~these~~2019, ~~provisions~~Labrys ~~cause~~returned 2,000,000 shares of common stock as the ~~conversion~~Labrys ~~options~~Note was repaid prior to ~~require~~180 ~~derivative~~days ~~liability~~of ~~accounting~~issuance.

InTHREE ~~connection~~AND ~~with~~NINE ~~Labrys~~MONTHS ~~Note,~~ENDED ~~the~~JANUARY ~~Company also issued 2~~31,~~000,000~~ shares of common stock (the “Returnable Shares”) to the holder as a commitment fee, provided however, the Returnable Shares must be returned to the Company’s treasury if the Note is fully repaid prior to 180 days after the issuance date.2020

~~During~~The ~~the~~following ~~six~~is ~~months~~a ~~ended~~summary ~~October~~of ~~31, 2019,~~ the ~~Company~~activity ~~issued~~related to ~~related~~the ~~parties,~~Convertible ~~two secured promissory~~ notes ~~in the amounts of $150,000 and $75,000, respectively. See Note 11~~ for ~~further discussion. The Company used $220,000 of~~ the ~~proceeds~~three ~~from~~months ~~the~~ended ~~notes~~January ~~to pay the outstanding balance of the Labrys Note. On June 5~~31, ~~2019, Labrys returned 2,000,000 shares of common stock as the Labrys Note was repaid prior to 180 days of issuance.~~2020:

Between August 1 and August 24, 2019, the Company issued new convertible notes to five holders whose notes had matured with an aggregate principal balance of $168,849 plus accrued interest of $33,780. The notes mature two years from the date of issuance and have a conversion price of $0.10 per share.

	Number of notes			Non-related party			Related party			Total			Weighted average conversion price
Beginning balance		129		$	1,070,882		$	671,683		$	1,742,565		$	0.06
Convertible notes issued for accounts payable		2			300			-			300			0.05
Convertible notes issued for accrued liabilities		6			500			10,000			10,500			0.05
Convertible notes issued for cash														0.06
Convertible notes issued (retired) for other debt, net		2			(500	)		-			(500	)		0.10
Conversion of notes for common shares		(18	)		(159,275	)					(159,275	)		0.11
Rollover of convertible notes		(20	)		(305,500	)		(74,768	)		(380,268	)		0.10
Issuance of convertible notes for rollover and accrued interest		12			382,476			88,800			471,276			0.05
Ending balance		113		$	988,883		$	695,715		$	1,684,598		$	0.06

OnThe ~~August~~following ~~31,~~is ~~2019,~~ a ~~holder~~summary ~~elected~~of tothe ~~convert~~activity ~~a non-~~related ~~party note with a balance of $500 plus accrued interest of $100 into 6,000 common shares pursuant~~ to the ~~terms~~Convertible ofNotes for the ~~agreement~~nine atmonths aended ~~conversion~~January ~~price~~31, ~~of $0~~2020.~~10 per share.~~

On September 20, 2019, a holder elected to convert a non-related party note with a balance of $30,000 plus accrued interest of $6,000 into 300,000 common shares pursuant to the terms of the agreement at a conversion price of $0.12 per share.

	Number of notes			Non-related party			Related party			Total			Weighted average conversion price
Beginning balance		146		$	1,334,358		$	334,683		$	1,669,041		$	0.10
Convertible notes issued for services		1			-			75,000			75,000			0.05
Convertible notes issued for accounts payable		2			300			20,000			20,300			0.05
Convertible notes issued for accrued liabilities		6			1,000			40,000			41,000			0.05
Convertible notes issued for cash		4			-			200,000			200,000			0.06
Convertible notes issued (retired) for other debt, net		(3	)		751			-			751			0.10
Repayment of convertible notes		(1	)		(220,000	)		-			(220,000	)		0.07
Conversion of notes for common shares		(34	)		(238,272	)		-			(238,272	)		0.11
Rollover of convertible notes		(32	)		(474,349	)		(134,768	)		(609,117	)		0.10
Issuance of convertible notes for rollover and accrued interest		24			585,095			160,800			745,895			0.05
Ending balance		113		$	988,883		$	695,715		$	1,684,598		$	0.06

~~On September~~Page ~~20,~~15 ~~2019, a holder elected to convert a non-related party note with a balance~~ of ~~$10,000 plus accrued interest of $2,000 into 100,000 common shares pursuant to the terms of the agreement at a conversion price of $0.12 per share.~~33

On October 14, 2019, a holder elected to convert two non-related party notes with an aggregate balance of $3,350 plus accrued interest of $670 into 40,200 common shares pursuant to the terms of the agreement at a conversion price of $0.10 per share.

On October 31, 2019, a holder elected to convert a non-related party note with a balance of $1,775 plus accrued interest of $355 into 21,300 common shares pursuant to the terms of the agreement at a conversion price of $0.10 per share.

On October 31, 2019, a holder elected to convert a non-related party note with a balance of $2,250 plus accrued interest of $450 into 27,000 common shares pursuant to the terms of the agreement at a conversion price of $0.10 per share.

The Company determined that the conversion option of several convertible notes issued to non-related parties were subject to a beneficial conversion feature and during the six months ended October 31, 2019 the company recorded a total beneficial conversion feature of $80,376. The Company recorded amortization of the beneficial conversion feature of $46,340 as interest expense for the three months ended October 31, 2019 and $125,294 as interest expense for the six months ended October 31, 2019.

Related parties

On May 10, 2019, the Company issued a convertible promissory note to a related party in consideration of $50,000. The convertible promissory note is secured against all assets of the Company, repayable two years after the issuance, bearing simple interest rate of 10% during the term of the notes and simple interest rate of 20% after the due date. The convertible promissory note is convertible at any time after the original issuance date into a number of shares of the Company’s common stock, determined by dividing the amount to be converted by conversion price of $0.07 per share.

On May 15, 2019, the Company issued a convertible promissory note to a related party in consideration of $50,000. The convertible promissory note is secured against all assets of the Company, repayable two years after the issuance, bearing simple interest rate of 10% during the term of the notes and simple interest rate of 20% after the due date. The convertible promissory note is convertible at any time after the original issuance date into a number of shares of the Company’s common stock, determined by dividing the amount to be converted by conversion price of $0.07 per share.

On May 24, 2019, the Company issued a new convertible note to a related party of $36,000 in consideration of accrued interest of $6,000 and a former convertible note whose principal balance of $30,000 matured on the same date. The new convertible promissory note is secured against all assets of the Company, repayable two years after the issuance, bearing simple interest rate of 10% during the term of the notes and simple interest rate of 20% after the due date. The convertible promissory note is convertible at any time after the original issuance date into a number of shares of the Company’s common stock, determined by dividing the amount to be converted by conversion price of $0.07 per share.

Page 15 of 32

REGI, U.S., INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

~~OCTOBER~~JANUARY 31, ~~2019~~2020

OnThe ~~May~~conversion ~~30,~~price ~~2019,~~exceeded the ~~Company~~closing ~~issued~~price ~~a convertible promissory note~~ of ~~$75,000 to a related party in consideration of consulting services provided. The convertible promissory note is secured against all assets of~~ the Company,’s ~~repayable~~common ~~two~~stock ~~years~~on ~~after~~ the ~~issuance, bearing~~date ~~simple~~of ~~interest~~issuance ~~rate~~ of ~~10%~~several ~~during~~Convertible Notes ~~the~~for ~~term of~~ the ~~notes~~nine ~~and~~months ~~simple~~ended ~~interest~~January ~~rate~~31, ~~of 20% after the due date~~2020. The ~~convertible promissory~~Company ~~note~~determined isthe ~~convertible~~notes atwere ~~any~~subject ~~time~~to ~~after~~a ~~the~~beneficial ~~original~~conversion ~~issuance~~feature provisions ~~date~~and ~~into~~recorded a ~~number~~discount of ~~shares~~beneficial ofconversion ~~the~~feature ~~Company’s~~which ~~common stock,~~shall ~~determined~~be byamortized ~~dividing~~over the ~~amount~~remaining tolife ~~be converted by conversion price~~ of ~~$0.07~~the ~~per share~~respective note.

OnThe ~~May~~following ~~31,~~is ~~June 30 and July 31, 2019, respectively, the Company issued three convertible promissory notes to~~ a ~~related~~summary ~~party with an aggregate principal balance~~ of $14,400 in consideration of matured convertible promissory notes with a principal balance of $12,000 and accrued interest of $2,400. The new convertible promissory notes are secured against all assets of the ~~Company,~~activity ~~repayable two~~related ~~years~~to ~~after~~ the ~~issuance,~~unamortized ~~bearing~~discount ~~simple interest rate~~ of ~~10%~~beneficial ~~during~~conversion ~~the~~feature ~~term~~for of the ~~notes~~three ~~and simple interest rate of 20%~~months ~~after~~ended ~~the~~January ~~due dates. The convertible promissory notes are convertible at any time after the original issuance date into a number of shares of the Company’s common stock~~31, ~~determined by dividing the amount to be converted by a conversion price of $0.07 per share.~~2020:

On August 1, 2019, the Company issued a convertible promissory note to a related party in consideration of cash proceeds of $50,000. The convertible promissory note is secured against all assets of the Company, repayable two years after the issuance, bearing simple interest rate of 10% during the term of the notes and simple interest rate of 20% after the due date. The convertible promissory note is convertible at any time after the original issuance date into a number of shares of the Company’s common stock, determined by dividing the amount to be converted by a conversion price of $0.05 per share.

	Non-related party			Related party			Total
Beginning balance	$	89,328		$	35,619		$	124,947
Establish beneficial conversion feature		41,216			28,520			69,736
Amortization of beneficial conversion feature		(38,037	)		(10,503	)		(48,540	)
Ending balance	$	92,507		$	53,636		$	146,143

OnThe ~~September~~following ~~15,~~is ~~2019, the Company issued~~ a ~~convertible~~summary ~~promissory note to a related party in consideration~~ of ~~cash proceeds of $50,000. The convertible promissory note is secured against all assets of~~ the ~~Company,~~activity ~~repayable~~related ~~two~~to ~~years after~~ the ~~issuance,~~unamortized ~~bearing simple~~discount ~~interest rate~~ of ~~10%~~beneficial ~~during~~conversion ~~the~~feature ~~term~~for of the ~~notes~~nine ~~and simple interest rate of 20% after the due date. The convertible promissory~~months ~~note~~ended isJanuary ~~convertible at any time after the original issuance date into a number of shares of the Company’s common stock~~31, ~~determined by dividing the amount to be converted by a conversion price of $0.05 per share.~~2020:

On September 15, 2019, the Company issued a convertible promissory note to a related party with principal balances of $50,000 in consideration of accrued liabilities of $30,000 and reimbursable accounts payable of $20,000. The new convertible promissory note is secured against all assets of the Company, repayable two years after issuance, bearing simple interest rate of 10% during the term of the notes and simple interest rate of 20% after the due dates. The convertible promissory notes are convertible at any time after the original issuance date into a number of shares of the Company’s common stock, determined by dividing the amount to be converted by a conversion price of $0.05 per share.

	Non-related party			Related party			Total
Beginning balance	$	125,660		$	31,390		$	157,050
Establish beneficial conversion feature		121,592			64,078			185,670
Amortization of beneficial conversion feature		(154,745	)		(41,832	)		(196,577	)
Ending balance	$	92,507		$	53,636		$	146,143

OnAt ~~August~~January 31, ~~September 30 and October 31~~2020, ~~2019,~~balances ~~respectively,~~on the Company issued three convertible promissory notes to a related party with aggregate principal balances of $21,600 in consideration of matured convertible promissory notes with a principal balance of $18,000 and accrued interest of $3,600. The new convertible promissory notes are secured ~~against all assets of the Company, repayable two years after issuance, bearing simple interest rate of 10% during the term of the notes and simple interest rate of 20% after the due dates. The~~ convertible promissory notes are ~~convertible~~as ~~at any time after the original issuance date into a number of shares of the Company’s common stock, determined by dividing the amount to be converted by a conversion price of $0.05 per share.~~follows:

The Company determined that the conversion option of several convertible notes issued to related parties were subject to a beneficial conversion feature and during the six months ended October 31, 2019 the company recorded a total beneficial conversion feature of $35,558. The Company recorded amortization of the beneficial conversion feature of $14,970 as interest expense, related parties for the three months ended October 31, 2019 and $31,330 as interest expense, related parties for the six months ended October 31, 2019.

	Principal balance			Unamortized discount of beneficial conversion feature			Net
Related parties	$	695,715		$	(48,142	)	$	647,573
Non-related parties		988,883			(98,001	)		890,882
		1,684,598			(146,143	)		1,538,455
Less current portion		(571,483	)		2,062			(569,421	)
Convertible promissory note-long term portion	$	1,113,115		$	(144,081	)	$	969,034

Page 16 of 3233

REGI, U.S., INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

~~OCTOBER~~JANUARY 31, ~~2019~~2020

At October 31, 2019, balances on the secured convertible promissory notes are as follows:

	Principal balance			Unamortized discount of beneficial conversion feature			Net
Related parties	$	782,083		$	(35,619	)	$	746,464
Non-related parties		962,982			(89,328	)		873,654
		1,745,065			(124,947	)		1,620,118
Less current portion		(903,272	)		25,600			(877,672	)
Convertible promissory note-long term portion	$	841,793		$	(99,347	)	$	742,446

CONVERSION EQUIVALENTS

The aggregate principal and accrued interest balance due to convertible note holders is convertible at any time after the original issue date into a number of shares of the Company’s common stock, determined by dividing the amount to be converted by a weighted average conversion price.

As of ~~October~~January 31, ~~2019~~2020, the aggregate principal and accrued interest balance is convertible to common shares of the Company’s stock as follows:

Principal

Interest

Total

Average conversion price

Conversion equivalents

Related parties

~~782~~695,~~083~~715

7350,~~075~~840

~~855~~746,~~158~~555

0.~~0675~~059

12,~~678~~689,~~325~~031

Non-related parties

~~962~~988,~~982~~883

~~146~~90,~~272~~299

1,~~109~~079,~~254~~182

0.~~0774~~060

1417,~~326~~980,~~238~~060

1,~~745~~684,~~065~~598

~~219~~141,~~347~~139

1,~~964~~825,~~412~~737

0.~~0727~~060

2730,~~004~~669,~~563~~091

10)

DERIVATIVE LIABILITY

On April 18, 2018 and November 30, 2018, respectively, the Company issued two convertible notes (The Labrys Note and the First Fire Note, respectively) which contained provisions allowing holders of the notes to convert outstanding debt to shares of the Company’s ~~common~~ common stock at a price other than a fixed conversion price per share (Note 9). Management has determined that these provisions ~~cause~~ cause the conversion options to require derivative liability accounting.

The First Fire Note contained provisions which, after 180 days from the date of issuance, called for the debt conversion exercise price to be the lower of $0.10 per share or seventy-five percent (75%) of the lowest traded price of the Company’s common stock during the twenty consecutive trade days immediately preceding the date of a conversion. Management valued that portion of derivative liability associated with the First Fire Note at fair value of the derivative at the earliest date in which the holder of the note would have been eligible to convert the note to shares of the Company’s stock. The Company utilized the assumptions in determining fair value of the initial derivative liability associated with the First Fire Note:

Stock price	$	0.0675
Conversion price		0.045075
Expected volatility		122.25	%
Expected term (years)		0.337
Risk free rate		2.28	%
Fair value of conversion option derivative units	$	106,117

The Company recognized loss on initial recording of the conversion derivative liability of $106,117 and concurrently recorded an unamortized discount on the derivative liability of $150,000, to be amortized over the remaining life of the note. The unamortized discount on the derivative liability was charged to the “Capital” account.

Page 17 of 32

REGI, U.S., INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

OCTOBER 31, 2019

On November 19, 2018, the Company issued the Labrys Note, the proceeds of which paid the remaining outstanding balance of the First Fire Note. The Labrys Note contained provisions which called for the debt conversion exercise price to be sixty percent (60%) of the lowest traded price of the Company’s common stock during the twenty consecutive trade days immediately preceding the date of a conversion. The Company utilized the following assumptions in determining fair value of the initial derivative liability associated with the Labrys Note:

Stock price	$	0.0569
Conversion price		0.024
Expected volatility		167.6	%
Expected term (years)		0.5
Risk free rate		2.52	%
Fair value of conversion option derivative units	$	351,870

Page 17 of 33

REGI, U.S., INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

JANUARY 31, 2020

The Company recognized loss on initial recording of the conversion derivative liability associated with the Labrys Note in the amount of $351,870 and concurrently recorded an unamortized discount on the derivative liability of $195,000, to be amortized over the remaining life of the note. The unamortized discount on the derivative liability was charged to the “Capital” account.

At April 30, 2019, the fair value of conversion option derivative units was estimated at the period’s end using the Binomial option pricing model using the following assumptions:

Stock price	$	0.0779
Conversion price		0.032
Expected volatility		28.68	%
Expected term (years)		0.052
Risk free rate		2.46	%
Fair value of conversion option derivative units	$	327,166

Below is the detail of change in conversion option liability balance for the ~~six~~nine months ended ~~October~~January 31, ~~2019~~2020 and year ended April 30, 2019, respectively:

	For the six months ended			For the year ended
	For the nine months ended			For the year ended
	October 31, 2019			April 30, 2019
	January 31, 2020			April 30, 2019
Beginning balance	$	306,696		$	-
Initial loss on fair value of derivative liability		-			457,986
Initial fair value of derivative discount		-			(345,000	)
Amortization of derivative discount		20,470			310,090
Revaluation of conversion option liability resulting from extinguishment of convertible debt		(327,166	)		(91,677	)
Net change in fair value of conversion option liability		-			(24,703	)
Ending balance	$	-		$	306,696

11)

OTHER NOTES PAYABLE

On September 25, 2018, the Company entered into a promissory note with a director of the Company’s board. The term of the agreement is five (5) years and has principal and interest payments of $445 per month. The agreement has a stated interest rate of 12% per annum.

On March 12, 2019, the Chief Executive Officer also loaned $10,000 to the Company, payable on demand and bearing simple interest at 12% per annum.

On April 23, 2019, a current member of the Company’s Board of Directors loaned $15,000 to the Company, payable on demand and being simple interest at 12% per annum.

Page 18 of 32

REGI, U.S., INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

OCTOBER 31, 2019

On May 30, 2019, the Company issued to related parties, two secured promissory notes in the amounts of $150,000 and $75,000, respectively. The notes bear interest at ten percent (10%) per annum and are due and payable on May 30, 2021. The notes are secured by a General Security Agreement dated May 30, 2019. The Company used $220,000 of the proceeds from the notes to pay the balance of the Labrys note (Note 9).

On September 19, 2019, the Company executed an Equipment Finance Agreement with U.S. Bank Equipment Finance in the amount of $88,140 for purchase of a milling center. The note which bears interest at 4.47% per annum is secured by the equipment and is payable in sixty (60) monthly installments of $1,642 commencing on November 25, 2019.

~~At October~~Page ~~31,~~18 ~~2019,~~of ~~balances on the other notes payable are as follows:~~33

	Related party		Non-related party		Current Portion			Total
Promissory note – September 25, 2018	$	16,339	$	-	$	(3,566	)	$	12,773
Demand note – April 23, 2019		15,000		-		(15,000	)		-
Demand note – May 30, 2019		10,000		-		(10,000	)		-
Promissory note – May 30, 2019		150,000		-		-			150,000
Promissory note – May 30, 2019		75,000		-		-			75,000
Equipment Finance Agreement – September 19, 2019		-		88,140		(16,092	)		72,048
TOTAL NOTES PAYABLE	$	266,339	$	88,140		(44,658	)	$	309,821

At October 31, 2019, principal payments on the other notes payable are due as follows:

	Related party		Non-related party		Total
Year ending October 31, 2020	$	28,566	$	16,092	$	44,658
Year ending October 31, 2021		229,024		16,826		245,849
Year ending October 31, 2022		4,534		17,593		22,127
Year ending October 31, 2023		4,215		18,395		22,610
Year ending October 31, 2024		-		19,234		19,234
TOTAL NOTES PAYABLE	$	266,339	$	88,140	$	354,479

12) STOCKHOLDERS’ EQUITY

Issuance of common stock on exercise of convertible of notes, related parties

During the three and six months ended October 31, 2018, convertible promissory notes, related parties of $100,000 and accrued interest of $20,000 were converted to 1,200,000 shares of the Company’s common stock at $0.10 per share.

During the three months ended October 31, 2019, there were no shares of common stock issued for conversion of related party convertible promissory notes.

Page 19 of 32

REGI, U.S., INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

~~OCTOBER~~JANUARY 31, ~~2019~~2020

At January 31, 2020, balances on the other notes payable are as follows:

	Related party		Non-related party		Current Portion			Total
Promissory note – September 25, 2018	$	15,490	$	-	$	(3,675	)	$	11,815
Demand note – April 23, 2019		15,000		-		(15,000	)		-
Demand note – May 30, 2019		10,000		-		(10,000	)		-
Promissory note – May 30, 2019		150,000		-		-			150,000
Promissory note – May 30, 2019		75,000		-		-			75,000
Equipment Finance Agreement – September 19, 2019		-		84,184		(16,272	)		67,912
Equipment Finance Agreement – December 3, 2019		-		13,236		(2,013	)		11,223
TOTAL NOTES PAYABLE	$	265,490	$	97,420		(46,960	)	$	315,950

At January 31, 2020, principal payments on the other notes payable are due as follows:

	Related party		Non-related party		Total
Year ending January 31, 2021	$	28,675	$	18,285	$	46,960
Year ending January 31, 2022		229,147		19,113		248,260
Year ending January 31, 2023		4,673		19,979		24,652
Year ending January 31, 2024		2,995		20,884		23,879
Year ending January 31, 2025		-		16,886		16,886
Thereafter		-		2,273		2,273
TOTAL NOTES PAYABLE	$	265,490	$	97,420	$	362,910

12)

STOCKHOLDERS’ EQUITY

Issuance of common stock on exercise of convertible of notes, related parties

During the nine months ended January 31, 2019, convertible promissory notes, related parties of $100,000 and accrued interest of $20,000 were converted to 1,200,000 shares of the Company’s common stock at $0.10 per share.

Issuance of common stock on exercise of convertible notes, non-related parties

For the ~~six~~nine months ended ~~October~~January 31, ~~2018~~2019, convertible promissory notes, non-related party of $70209,~~491~~859 and accrued interest of $2441,~~831~~ 972 were converted to ~~866~~2,~~811~~804,457 shares of the Company’s common stock at $0.08 to $0.10 per share.

~~Between~~For ~~April~~the 15nine ~~and~~months ~~April~~ended 30January 31, ~~2019~~2020, ~~several~~thirty-four holders elected to convert ~~certain~~non-related ~~convertible~~party notes with an aggregate principal balance of $5238,~~117~~272 ~~including~~and accrued interest ~~(Note~~of 9)$52,437 into 513,~~167~~094,607 common shares ofpursuant to the ~~Company’s~~terms ~~common~~of ~~stock~~the agreements at ~~the~~a average conversion price of $0.10094 per share ~~as per terms of the agreements~~.

Common shares issued for common stock and warrants

The Company received proceeds of $14,000 pursuant to the terms of a Private Placement a price of $0.07 per unit for 200,000 shares of its Common Stock and warrants to purchase an additional 200,000 shares of its common stock to an investor pursuant to a private placement of its securities. The offering consisted of the sale of “units” of the Company’s securities at the per unit price of $0.07. Each unit consisted of one share of common stock and one warrant to purchase an additional share of common stock. Warrants issued pursuant to the offering entitle the holder thereof to purchase shares of common stock for the price of $0.15 per share. The term of each warrant is for eighteen months commencing with its subscription date of June 1, 2019.

Page 19 of 33

REGI, U.S., INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

JANUARY 31, 2020

On August 1, 2019, the Company issued 400,000 shares of its common stock, and warrants to purchase an additional 400,000 shares of its common stock to an investor pursuant to a private placement of its securities (the “2019 Offering”). The 2019 Offering consisted of the sale of “units” of the Company’s securities at the per unit price of $0.05. Each unit consisted of one shares of common stock and one warrants to purchase an additional share of common stock. Warrants issued pursuant to the 2019 Offering entitle the holders thereof to purchase shares of common stock for the price of $0.10 per share. The term of each warrant is for eighteen months commencing with its issuance date. The Company raised a total of $20,000 to date pursuant to the 2019 Offering.

On October 15, 2019, the Company received from an investor proceeds of $10,000 pursuant to the terms of a Private Placement for sale of units for 142,860 shares of its Common Stock and warrants to purchase an additional 142,860 shares of its common stock. The offering consisted of the sale of “units” of the Company’s securities at the per unit price of $0.07. Each unit consisted of one share of common stock and one warrant to purchase an additional share of common stock. Warrants issued pursuant to the offering entitle the holder thereof to purchase shares of common stock for the price of $0.15 per share. The term of each warrant is for eighteen months commencing with its issuance date of October 15, 2019.

On October 31, 2019, the Company received from an investor proceeds of $250,000 pursuant to the terms of a Private Placement for sales of units for 5,000,000 shares of its Common Stock and warrants to purchase an additional 5,000,000 shares of its common stock. The offering consisted of the sale of “units” of the Company’s securities at the per unit price of $0.05. Each unit consisted of one share of common stock and one warrant to purchase an additional share of common stock. Warrants issued pursuant to the offering entitle the holder thereof to purchase shares of common stock for the price of $0.10 per share. The term of each warrant is for eighteen months commencing with its subscription date of September 30, 2019.

Between November 15 and November 27, 2019, the Company issued 5,191,160 shares of its common stock for Shares to Be Issued with a balance of $264,830 in consideration of proceeds from private placements and conversion of promissory notes prior to October 31, 2019.

For the three months ended January 31, 2020, the Company received from investor proceeds of $12,600 pursuant to the terms of two Private Placements for sales of units for 180,000 shares of its Common Stock and warrants to purchase an additional 180,000 shares of its common stock. The offering consisted of the sale of “units” of the Company’s securities at the per unit price of $0.07. Each unit consisted of one share of common stock and one warrant to purchase an additional share of common stock. Warrants issued pursuant to the offering entitle the holder thereof to purchase shares of common stock for the price of $0.15 per share. The term of each warrant is for eighteen months commencing with its subscription date of December 30, 2019.

Common Shares Issued In Lieu of Cash for Services

On ~~September~~November 622, 2019, the Company issued ~~300~~78,~~000~~533 shares of its common stock in lieu of cash payment for services. toThe ~~three~~value ~~members~~ of the ~~board~~shares ofissued ~~directors~~was ~~with~~$5,890, abased ~~fair~~on ~~value~~a price of $~~19,740~~0.075 ~~which~~per ~~was~~share ~~included~~which approximates the ~~“accrued~~fair ~~liabilities”~~value ason ofthe ~~April~~date ~~30,~~of ~~2019~~issuance.

During the three months ended ~~October~~January 31, ~~2019~~2020 and ~~2018~~2019, respectively, there were no other shares of common stock issued for services.

Common shares issued for exercise of options

During the three and ~~six~~nine months ended ~~October~~January 31, ~~2019~~2020 and ~~2018~~2019, respectively, there were no shares of common stock issued for exercise of options.

Page 20 of 33

REGI, U.S., INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

JANUARY 31, 2020

Returnable shares

13)

SHARES TO BE ISSUED

Between May 7 and June 5, 2019, the Company issued 251,167 shares of its common stock for Shares to Be Issued with a balance of $19,117 in consideration of the proceeds from a private placement and conversion of promissory notes prior to April 30, 2019.

OnAs ~~October 15, 2019, the Company received from an investor proceeds~~ of ~~$10,000~~January ~~pursuant to the terms of a Private Placement for sale of units for 142~~31,~~860~~ ~~shares~~2020 ~~of its Common Stock~~ and ~~warrants~~April to30, ~~purchase an additional 142~~2019,~~860~~ ~~shares of its common stock. The offering consisted of~~ the ~~sale~~balance of ~~“units”~~Shares ofto ~~the~~be ~~Company’s~~Issued ~~securities~~was ~~at the per unit price of~~ $~~0.07.~~Nil ~~Each unit consisted of one share of common stock~~ and ~~one warrant to purchase an additional share of common stock. Warrants issued pursuant to the offering entitle the holder thereof to purchase shares of common stock for the price of~~ $~~0.15 per share. The term of each warrant is for eighteen months commencing with its issuance date of October 15~~19,117, ~~2019~~respectively.

Page 20 of 32

REGI, U.S., INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

OCTOBER 31, 2019

On October 31, 2019, as per Note 10, a holder elected to convert a non-related party note with a balance of $2,130 including accrued interest of $355 into 21,300 common shares pursuant to the terms of the agreement at a conversion price of $0.10 per share.

On October 31, 2019, as per Note 10, a holder elected to convert a non-related party note with a balance of $2,700 including accrued interest of $450 into 27,000 common shares pursuant to the terms of the agreement at a conversion price of $0.10 per share.

As of October 31, 2019 and April 30, 2019, the balance of Shares to be Issued was $264,830 and $19,117, respectively.

14)

STOCK OPTIONS

On August 12, 2016, the Company approved the 2016 Stock Option Plan to issue up to 5,000,000 shares to certain key directors and employees. Pursuant to the Plan, the Company has granted stock options to certain directors, consultants and employees. This Stock Option Plan was amended to issue up to 15,000,000 shares. All options granted by the Company under the 2016 Plan vested immediately.

The Stock Option Plan has a fixed maximum percentage of 10% of the Company’s outstanding shares that are eligible for the plan pool, whereby the number of Shares under the plan increases automatically increases as the total number of shares outstanding increase. The number of shares subject to the Stock Option Plan and any outstanding awards will be adjusted appropriately by the Board of Directors if the Company’s common stock is affected through a reorganization, merger, consolidation, recapitalization, restructuring, reclassification dividend (other than quarterly cash dividends) or other distribution, stock split, spin-off or sale of substantially all of the Company’s assets.

The Stock Option plan also has terms and conditions, including without limitations that the exercise price for stock options granted under the Stock Option Plan must equal the stock’s fair value, based on the closing price per share of common stock, at the time the stock option is granted. The fair value of each option award is estimated on the date of grant utilizing the Black-Scholes model and commonly utilized assumptions associated with the Black-Scholes methodology. Options granted under the Plan have a ten-year maximum term and varying vesting periods as determined by the Board.

On June 6, 2019, the Board of Directors authorized the grant of 500,000 options to purchase shares of common stock of the Company for services to an officer of the Company. The Company estimated the fair value of this option grants using the Black-Scholes model with the following information and assumptions:

Options issued		500,000
Exercise price (Weighted average)	$	0.935
Stock price	$	0.075
Expected volatility		217.24	%
Expected term (years)		5 years
Risk free rate		1.88	%
Fair value of options issued	$	48,084

Page 21 of 3233

REGI, U.S., INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

~~OCTOBER~~JANUARY 31, ~~2019~~2020

The options vest upon grant, and are exercisable at the following prices:

Options		Exercise price
	50,000	$	0.10
	50,000		0.20
	25,000		0.35
	25,000		0.50
	50,000		0.75
	50,000		1.00
	125,000		1.25
	125,000		1.50
	500,000	$	0.94

The expiration date of the options is June 6, 2024. The fair value of the options is $48,084 and is recognized as stock-based compensation for the ~~six~~nine months ended ~~October~~January 31, ~~2019~~2020. These costs are classified as management and administrative expense.

On October 1, 2019, REGI granted an aggregate of 625,000 common stock options to directors, employees and consultants. The Company estimated the fair value of these option grants using the Black-Scholes model with the following information and assumptions:

Options issued		625,000
Exercise price (Weighted average)	$	0.15
Stock price	$	0.07
Expected volatility		217.79	%
Expected term (years)		5 years
Risk free rate		1.51	%
Fair value of options issued	$	61,429

The options vest upon grant, and are exercisable at the following prices:

Options		Exercise price
	325,000	$	0.10
	300,000		0.20
	625,000	$	0.15

The expiration date of the options is October 1, 2024. The fair value of the options is $61,429 and is recognized as stock-based compensation for the ~~three~~nine ~~and six months~~ ended ~~October~~January 31, ~~2019~~2020. These costs are classified as management and administrative expense.

On October 2, 2019, REGI granted an aggregate of 900,000 common stock options to directors. The Company estimated the fair value of these option grants using the Black-Scholes model with the following information and assumptions:

Options issued		900,000
Exercise price (Weighted average)	$	0.15
Stock price	$	0.08
Expected volatility		217.85	%
Expected term (years)		5 years
Risk free rate		1.43	%
Fair value of options issued	$	88,448

Page 22 of 3233

REGI, U.S., INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

~~OCTOBER~~JANUARY 31, ~~2019~~2020

The options vest upon grant, and are exercisable at the following prices:

Options		Exercise price
	450,000	$	0.10
	450,000		0.20
	900,000	$	0.15

The expiration date of the options is October 2, 2024. The fair value of the options is $88,448 and is recognized as stock-based compensation for the ~~three~~nine ~~and six~~ months ended ~~October~~January 31, ~~2019~~2020. These costs are classified as management and administrative expense.

The following is a summary of the Company’s options issued and outstanding in conjunction with the Company’s Stock Option Plans:

	For the three months ended October 31,
	For the three months ended January 31,
	2019				2018
	2020				2019
	Options		Price (a)		Options		Price (a)
Beginning balance		8,700,000	$	0.52		9,355,000	$	0.52
Issued		1,525,000		0.15		-		-
Exercised		-		-		-		-
Expired						-		-
Ending balance		10,225,000	$	0.51		9,355,000	$	0.52
Exercisable at end of period		10,225,000	$	0.51		9,163,750	$	0.53

	For the six months ended October 31,
	For the nine months ended January 31,
	2019				2018
	2020				2019
	Options		Price (a)		Options		Price (a)
Beginning balance		8,200,000	$	0.52		9,355,000	$	0.52
Issued		2,025,000		0.15		-		-
Exercised		-		-		-		-
Expired						-		-
Ending balance		10,225,000	$	0.51		9,355,000	$	0.52
Exercisable at end of period		10,225,000	$	0.51		9,163,750	$	0.53

(a)

Weighted average exercise price.

~~Page~~The following 23table summarizes additional information about the options under the Company’s Stock Option Plan as of 32January 31, 2020:

	Options outstanding and exercisable
Date of Grant	Shares		Price		Remaining Term
August 12, 2016		3,700,000	$	0.52		1.47
January 1, 2017		2,800,000		0.14		1.92
March 1, 2017		1,200,000		0.58		3.08
April 30, 2018		500,000		3.00		3.25
June 6, 2019		500,000		0.94		4.35
October 1, 2019		625,000		0.15		4.67
October 2, 2019		900,000		0.15		4.67
Total options		10,225,000	$	0.51		2.49

Page 23 of 33

REGI, U.S., INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

~~OCTOBER~~JANUARY 31, ~~2019~~2020

The ~~following~~total ~~table~~value ~~summarizes~~of ~~additional~~stock ~~information~~option ~~about~~awards is expensed ratably over the ~~options~~vesting ~~under~~period of the ~~Company’s~~employees ~~Stock~~receiving ~~Option~~the ~~Plan~~awards. asAs of ~~October~~January 31, 2020 and January 31, 2019:, respectively, there was no unrecognized compensation cost related to stock-based options and awards.

	Options outstanding and exercisable
Date of Grant	Shares		Price		Remaining Term
August 12, 2016		3,700,000	$	0.52		1.72
January 1, 2017		2,800,000		0.14		2.17
March 1, 2017		1,200,000		0.58		3.33
April 30, 2018		500,000		3.00		3.50
June 6, 2019		500,000		0.94		4.60
October 1, 2019		625,000		0.15		4.92
October 2, 2019		900,000		0.15		4.93
Total options		10,225,000	$	0.51		2.74

The intrinsic value of exercisable options at January 31, 2020 and April 30, 2019, was $Nil and $Nil, respectively.

The total value of stock option awards is expensed ratably over the vesting period of the employees receiving the awards. As of October 31, 2019 and October 31, 2018, respectively, there was no unrecognized compensation cost related to stock-based options and awards.

The intrinsic value of exercisable options at October 31, 2019 and April 30, 2019, was $Nil and $Nil, respectively.

15)

WARRANTS

The following is a summary of activity for warrants to purchase shares of the Company’s stock through ~~October~~January 31, ~~2019~~2020:

	Warrants		Weighted average exercise price
Balance outstanding at April 30, 2019		-	$	-
Issued		79,~~742~~191,~~860~~432		0.1011
Expired		-		-
Balance outstanding at October 31, 2019		7,742,860	$	0.10
Balance outstanding at January 31, 2020		9,191,432	$	0.11

The Company occasionally offers to investors the sale of “units” of the Company’s securities at the specified price per unit. The units consisting of one share of common stock and one warrant to purchase an additional share of common stock. The Company does not allocate a portion of the purchase price between the shares and warrants when the “units” are purchased and records the net proceeds of the offering to its “Capital” account.

The composition of the Company’s warrants outstanding at ~~October~~January 31, ~~2019~~2020 is as follows:

Issue date	Expiration date	Warrants		Price		Remaining Term
May 1, 2019	November 1, 2020		200,000	$	0.15		10.0175
June 1, 2019	March 30, 2020		2,000,000		0.10		1.4116
July 10, 2019	January 10, 2021		400,000		0.10		10.2095
September 30, 2019	March 31, 2021		5,000,000		0.10		1.4216
October 15, 2019	April 15, 2021		142,860		0.15		1.4621
Total warrants			7,742,860	$	0.10		1.39
December 30, 2019	June 30, 2021		1,318,572		0.15		1.41
December 31, 2019	June 30, 2021		130,000		0.15		1.41
Total warrants			9,191,432	$	0.11		1.19

16) SUBSEQUENT ~~EVENT~~EVENTS

Management has evaluated subsequent events from the balance sheet date through the date the financial statements were available to be issued and determined that no material subsequent events exist other than the following.

~~Between~~On ~~November~~February ~~15 and November 27~~10, ~~2019~~2020, the Company issued 554,~~191,160~~700 shares of its common stock ~~for Shares to Be Issued with a balance of $264,830~~ in ~~consideration~~lieu of ~~proceeds~~cash ~~from~~payment ~~private~~to ~~placements~~two ~~and~~vendors ~~conversion~~whose ofaccounts payable ~~promissory~~totaled ~~notes prior to October 31~~$3, ~~2019~~290.

On ~~November~~February 2510, ~~2019~~2020, the Company issued 78100,~~533~~566 shares of its common stock inwith ~~lieu~~a offair ~~cash payment for services. The~~ value of ~~the shares issued was~~ $5,~~890,~~338 ~~based~~to ontwo aemployees ~~price~~through direct ofpurchases ~~$0.075~~via ~~per~~accrued ~~share~~payroll ~~which approximates the fair value on the date of issuance~~deductions.

Page 24 of 3233

REGI, U.S., INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

JANUARY 31, 2020

On February 25, 2020, the Company issued 100,000 shares of its common stock with a fair value of $7,000 to an employee pursuant to terms of an employment agreement.

Between April 3, 2020 and April 10, 2020, five holders elected to convert non-related party notes with an aggregate balance of $34,734 including accrued interest of $5,789 into 347,340 common shares of the Company’s stock pursuant to the terms of their respective agreements at an average conversion price of $0.10 per share.

On April 3, 2020, two holders elected to convert related party notes with an aggregate balance of $43,200 including accrued interest of $7,200 into 432,000 common shares of the Company’s stock pursuant to the terms of their respective agreements at an average conversion price of $0.10 per share.

On March 4, 2020, the Company received from an investor proceeds of $100,000 pursuant to the terms of a Private Placement for sales of units for 2,000,000 shares of its Common Stock and warrants to purchase an additional 2,000,000 shares of its common stock. The offering consisted of the sale of “units” of the Company’s securities at the per unit price of $0.05. Each unit consisted of one share of common stock and one warrant to purchase an additional share of common stock. Warrants issued pursuant to the offering entitle the holder thereof to purchase shares of common stock for the price of $0.10 per share. The term of each warrant is for eighteen months commencing with its subscription date of February 3, 2020.

Page 25 of 33

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION.

Caution Regarding Forward-Looking Information

In addition to historical information, this Form 10-Q contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). This statement is included for the express purpose of availing the Company. of the protections of the safe harbor provisions of the PSLRA.

All statements contained in this Form 10-Q, other than statements of historical facts, that address future activities, events or developments are forward-looking statements, including, but not limited to, statements containing the words “believe,” “expect,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” and similar expressions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any statements of the plans, strategies and objectives of management for future operations; any statements concerning proposed new products, services, developments or industry rankings; any statements regarding future revenue, economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. These statements are based on certain assumptions and analyses made by us in light of our experience and our assessment of historical trends, current conditions and expected future developments as well as other factors we believe are appropriate under the circumstances. However, whether actual results will conform to the expectations and predictions of management is subject to a number of risks and uncertainties described under Item 1A - Risk Factors beginning on page 20 below that may cause actual results to differ materially.

Consequently, all of the forward-looking statements made in this Form 10-Q are qualified by these cautionary statements and there can be no assurance that the actual results anticipated by management will be realized or, even if substantially realized, that they will have the expected consequences to or effects on our business operations. Readers are cautioned not to place undue reliance on such forward-looking statements as they speak only of the Company’s views as of the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Nature of Business

We are an early stage company engaged in the business of developing and building improved axial vane-type rotary devices for civilian, commercial and government applications. We own the worldwide intellectual and marketing rights to the RadMax technology. Our vision is to develop advanced devices that reduce carbon footprint, reduce device size, weight and parts count, and increase fuel and manufacturing efficiencies. We intend to develop and market these devices in cooperation with industry and government partners. We are focused on creating new, disruptive technologies that are more efficient, compact and cost-effective than those currently available.

Going Concern

We incurred net losses of $~~652~~996,~~791~~283 for the ~~six~~nine months ended ~~October~~January 31, ~~2019~~2020 and had a working capital deficit of $1,~~533~~296,~~851~~615 and an accumulated deficit of $2627,~~976~~319,~~186~~678 at ~~October~~January 31, ~~2019~~2020. Further losses are expected until we enter into licensing agreements of our technologies. These factors raise substantial doubt about the ability of the Company to continue as a going concern.

Page 26 of 33

We may receive interim support from related parties and plan to raise additional capital through debt and/or equity financings. We may also raise additional funds when our outstanding options are exercised. However, there is no assurance that any of these activities will be realized.

Due to the uncertainty of our ability to generate sufficient revenues from our operating activities and/or to obtain the necessary financing to meet our obligations and repay our liabilities arising from normal business operations when they come due, in their report on our financial statements for the year ended April 30, 2019, our registered independent auditors included additional comments indicating concerns about our ability to continue as a going concern. Our financial statements contain additional note disclosures describing the circumstances that led to this disclosure by our registered independent auditors. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Reports to Security Holders

The Registrant does not issue annual or quarterly reports to security holders other than the annual Form 10-K and quarterly Forms 10-Q as electronically filed with the SEC. Electronically filed reports may be accessed at www.sec.gov. Interested parties also may read and copy any materials filed with the SEC at the SEC’s Public Reference Room at 450 Fifth Street NW, Washington, DC 20549. Information may be obtained on the operation of the Public Reference Room by calling the SEC at (800) SEC-0330.

Page 25 of 32

PLAN OF OPERATION

The Company is engaged in the business of developing and commercially exploiting an improved axial vane type rotary technology known as RadMax ^®.

Our early engineering and development work have not yet produced revenues and we have a working capital deficit. We have incurred net losses to ~~October~~January 31, ~~2019~~2020 totaling $26,976,186 and further losses are expected until we complete a licensing agreement with a manufacturer and reseller. AtOn ~~October~~January 31, ~~2019~~2020, the Company had working capital deficiency of $1,533,851. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Our ability to emerge from the development stage with respect to our planned principal business activity is dependent upon our successful efforts to raise additional funds or develop a market for our products.

RESULTS OF OPERATIONS

	For the three months ended October 31,
	For the three months ended January 31,
	2019			2018			$ Change			% Change
	2020			2019			$ Change			% Change
Revenue	$	-37,750		$	4035,000		$	~~(40~~2,~~000~~750	)		~~(100~~7.0086	)%
Accounting and legal		17,654			25,233			(7,579	)		(30.0	)%
Cost of revenue		18,188			-			18,188			N/A
Consulting and management		1,253			69,623			(68,370	)		(98.2	)%
Gross margin		19,562			35,000			20,938			59.8	%
Stockholder relations		11,479			16,733			(5,254	)		(31.4	)%
Accounting and legal		25,126			30,831			(5,705	)		(18.5	)%
Depreciation and amortization		2,364			1,552			812			52.3	%
Compensation and consulting		232,059			72,296			(3,442	)		(4.8	)%
Stock-based compensation		149,877			-			149,877			N/A
Stockholder relations		(357	)		13,124			(13,481	)		(102.7	)%
General and administrative expenses		29,793			8,290			21,503			259.4	%
Depreciation and amortization		7,058			946			6,112			646.1	%
Research and development		62,091			121,050			(58,959	)		(48.7	)%
Stock-based compensation		19,740			-			19,740			N/A
Other expense (income)		116,924			139,898			(22,974	)		(16.4	)%
General and administrative expenses		9,692			19,608			(9,916	)		(50.6	)%
NET LOSS	$	(391,435	)	$	(342,379	)	$	49,056			(14.3	)%
Research and development		(115,675	)		124,301			(76,771	)		(61.8	)%
Other expense (income)		185,411			762,627			(577,216	)		(75.7	)%
NET LOSS	$	(343,492	)	$	(988,733	)	$	681,617			(68.9	)%

	For the six months ended October 31
	2019			2018			$ Change			% Change
Revenue	$	25,000		$	40,000		$	(15,000	)		(37.50	)%
Accounting and legal		47,854			45,954			1,900			4.1	%
Consulting and management		163,274			166,537			(3,263	)		(2.0	)%
Stockholder relations		55,206			37,343			17,863			47.8	%
Depreciation and amortization		5,003			3,103			1,900			61.2	%
Stock-based compensation		197,961			-			197,961			N/A
General and administrative expenses		53,674			30,015			23,659			78.8	%
Research and development		191,709			241,408			(49,699	)		(20.6	)%
Other expense (income)		(36,890	)		292,961			(329,851	)		(112.6	)%
NET LOSS	$	(652,791	)	$	(777,321	)	$	(124,530	)		16.0	%

Page 27 of 33

	For the nine months ended January 31,
	2020			2019			$ Change			% Change
Revenue	$	62,750		$	75,000		$	(12,250	)		(16.33	%)
Cost of revenue		18,188			-			18,188			N/A
Gross margin		44,562			75,000			5,938			7.9	%

Accounting and legal		72,980			76,785			(3,805	)		(5.0	%)
Compensation and consulting		395,333			238,833			156,500			65.5	%
Stockholder relations		54,849			50,467			4,382			8.7	%
Depreciation and amortization		12,061			4,049			8,012			197.9	%
Stock-based compensation		217,701			-			217,701			N/A
General and administrative expenses		63,366			49,623			13,743			27.7	%
Research and development		76,034			365,709			(289,675	)		(79.2	%)
Other expense (income)		148,521			1,055,587			(907,066	)		(85.9	%)
NET LOSS	$	(996,283	)	$	(1,766,053	)	$	(769,770	)		43.6	%

Management continues to focus its research and development efforts and administrative support with the increased success in financing the required expenditures.

~~Page~~Consulting and 26management expense for the three months ended January 31, 2020 of 32$68,854 decreased $3,442 as management continued suspension of its salary accrual. Similarly, research and development expense for the three months ended January 31, 2020 of $47,530 decreased $76,771 from the three months ended January 31, 2019 of $124,301 as certain costs were apportioned to “Cost of revenue” and other expenses were reclassified in the current period to “Compensation and consulting”.

~~Consulting~~For ~~and management expense for~~ the ~~three~~nine months ended ~~October~~January 31, ~~2019~~2020, research and development expense of $176,~~253~~034 decreased $68289,~~370~~675 asfrom ~~management~~the ~~suspended~~nine ~~salary~~months ended ~~accrual.~~January ~~Similarly~~31, ~~research~~2019, ~~and~~primarily ~~development~~as ~~expense~~a ~~for~~result ~~the~~of ~~three~~reduction ~~months ended October 31, 2019~~ of ~~$62,091~~management ~~decreased~~salary ~~$58,959 from~~accruals during the ~~three~~period ~~months~~and ~~ended~~apportionment ~~October~~of ~~31,~~certain expenses ~~2018~~to of“Compensation ~~$121,050~~and consulting”.

~~For~~The Company’s basic and diluted loss per share was $0.003 for the ~~six~~three months ended ~~October~~January 31, ~~2019,~~2020 ~~research~~ and ~~development~~$0.01 ~~expense~~for ofthe ~~$191,709~~three months ~~decreased~~ended ~~$49~~January 31,~~699~~ ~~from~~2019. For the ~~six~~nine months ended ~~October~~ January 31, ~~2018,~~2020 ~~primarily~~and as2019, athe ~~result~~basic ofand ~~reduction~~diluted ofloss ~~management~~per ~~salary~~share ~~accruals~~was ~~during~~$0.009 and ~~the~~$0.017, ~~period~~respectively.

The Company’s basic and diluted loss per share was $0.004 for the three months ended October 31, 2019 and $0.003 for the three months ended October 31, 2018. For the six months ended October 31, 2019 and 2018, the basic and diluted loss per share was $0.006 and $0.008, respectively.

LIQUIDITY AND FINANCIAL CONDITION

WORKING CAPITAL	~~October~~January 31, ~~2019~~2020		April 30, 2019
Current assets	$	~~352~~154,~~911~~291	$	42,402
Current liabilities		1,~~886~~450,~~762~~906		2,266,862
Working capital deficit	$	1,~~533~~296,~~851~~615	$	2,224,460

	For the six months ended
	For the nine months ended
CASH FLOWS	~~October~~January 31, ~~2019~~2020			~~October~~January 31, ~~2018~~2019
Cash flow used by operating activities	$	(~~278~~503,~~968~~510	)	$	(~~184~~378,~~922~~611	)
Cash flow used by investing activities		-(5,601	)		-
Cash flow provided by financing activities		~~585~~593,~~370~~001			~~89,508~~327.355
Net increase (decrease) in cash during period	$	~~306~~83,~~402~~891		$	(9551,~~414~~256	)

During the ~~six~~nine months ended ~~October~~January 31, ~~2019~~2020, the Company issued promissory notes to related parties for cash proceeds of $225,~~370~~000 and received cash proceeds from convertible promissory notes promissory notes in the amount of $200,000. The Company repaid debt in the amount of $220,000 and received cash proceeds from the sale of common stock and stock subscriptions in the amount of $~~380~~392,~~000~~600.

Page 28 of 33

The note balances owed to related parties are generally interest bearing, unsecured and repayable on demand. Our related parties have indicated that they will not be demanding repayment of these funds during the next fiscal year and will advance or pay expenses on behalf of the Company if further funds are needed.

As of ~~October~~January 31, ~~2019~~2020, the Company had a working capital deficit of $1,~~533~~296,~~851.~~615

REGI U.S., Inc. anticipates continuing to rely on sales of its debt and/or equity securities in order to continue to fund ongoing operations. Issuances of additional shares of common stock may result in dilution to the Company’s existing stockholders. There is no assurance that the Company will be able to complete any additional sales of equity securities or that it will be able arrange for other financing to fund its planned business activities.

The Company’s continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis, to obtain additional financing as may be required, or ultimately to attain profitability. Potential sources of cash, or relief of demand for cash, include additional external debt, the sale of shares of the Company’s stock or alternative methods such as mergers or sale of the Company’s assets. No assurances can be given, however, that the Company will be able to obtain any of these potential sources of cash. The Company currently requires additional cash funding from outside sources to sustain existing operations and to meet current obligations and ongoing capital requirements.

The Company plans for the long-term continuation as a going concern include financing future operations through sales of our equity and/or debt securities.

OFF-BALANCE SHEET ARRANGEMENTS

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

Page 27 of 32

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ITEM 4.

CONTROLS AND PROCEDURES

Conclusions of Management Regarding Effectiveness of Disclosure Controls and Procedures

At the end of the period covered by this Quarterly Report on Form 10-Q, an evaluation was carried out under the supervision and with the participation of the Company’s management, including the President and Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”), of the effectiveness of the design and operations of the Company’s disclosure controls and procedures (as defined in Rule 13a – 15(e) and Rule 15d – 15(e) under the Exchange Act). Based on that evaluation, the PEO and the PFO have concluded that as of the end of the period covered by this report, the Company’s disclosure controls and procedures were not effective as it was determined that there were material weaknesses affecting our disclosure controls and procedures.

Management of the Company believes that these material weaknesses are due to the small size of the Company’s accounting staff. The small size of the Company’s accounting staff may prevent adequate controls in the future, such as segregation of duties, due to the cost/benefit of such remediation. To mitigate the current limited resources and limited employees, we rely heavily on direct management oversight of transactions, along with the use of external legal and accounting professionals. As the Company grows, management expects to increase the number of employees, which will enable us to implement adequate segregation of duties within the internal control framework.

Page 29 of 33

PEO and PFO Certifications

Appearing immediately following the Signatures section of this report there are Certifications of the PEO and the PFO. The Certifications are required in accordance with Section 03 of the Sarbanes-Oxley Act of 2002 (the Section 302 Certifications). This Items of this report which you are currently reading is the information concerning the Evaluation referred to in Section 302 Certifications and this information should be read in conjunction with Section 302 Certifications for a more complete understanding of the topics presented.

Changes in Internal Control over Financial Reporting

There have been no changes during the quarter ended ~~October~~January 31, ~~2019~~2020 in the Company’s internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, internal controls over financial reporting.

PART II - OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS.

REGI, U.S., Inc. is not a party to any material legal proceedings, and, to Management’s knowledge, no such proceedings are threatened or contemplated. No director, officer or affiliate of REGI, U.S., Inc. and no owner of record or beneficial owner of more than 5% of the Company’s securities or any associate of any such director, officer or security holder is a party adverse to REGI, U.S., Inc. or has a material interest adverse to REGI, U.S., Inc. in reference to pending litigation.

ITEM 1A.

RISK FACTORS.

There have been no material changes from the risk factors as previously disclosed in the Company’s Form 10-K for the year ended April 30, 2019 which was filed with the SEC on September 11, 2019

ITEM 2.

RECENT SALES OF UNREGISTERED SECURITIES.

Page 28 of 32

On May 30, 2019, the Company issued a convertible promissory note of $75,000 to a related party in consideration of consulting services provided. The convertible promissory note is secured against all assets of the Company, repayable two years after the issuance, bearing simple interest rate of 10% during the term of the notes and simple interest rate of 20% after the due date. The convertible promissory note is convertible at any time after the original issuance date into a number of shares of the Company’s common stock, determined by dividing the amount to be converted by conversion price of $0.07 per share.

On May 31, June 30 and July 31, 2019, respectively, the Company issued three convertible promissory notes to a related party with an aggregate principal balance of $14,400 in consideration of matured convertible promissory notes with a principal balance of $12,000 and accrued interest of $2,400. The new convertible promissory notes are secured against all assets of the Company, repayable two years after the issuance, bearing simple interest rate of 10% during the term of the notes and simple interest rate of 20% after the due dates. The convertible promissory notes are convertible at any time after the original issuance date into a number of shares of the Company’s common stock, determined by dividing the amount to be converted by a conversion price of $0.07 per share.

On August 1, 2019, the Company issued a convertible promissory note to a related party in consideration of $50,000 The convertible promissory note is secured against all assets of the Company, repayable two years after the issuance, bearing simple interest rate of 10% during the term of the notes and simple interest rate of 20% after the due date. The convertible promissory note is convertible at any time after the original issuance date into a number of shares of the Company’s common stock, determined by dividing the amount to be converted by a weighted average conversion price of $0.05 per share.

On or about August 1, 2019, the Company issued $50,000 in ten percent (10%) convertible debentures to a related party which are due two (2) year after their original issue date and are convertible into 1,000,000 shares of the Company’s common stock at the conversion price of $.05 per share.

On August 31, September 30 and October 31, 2019, respectively, the Company issued three convertible promissory notes to a related party with aggregate principal balances of $21,600 in consideration of matured convertible promissory notes with a principal balance of $18,000 and accrued interest of $3,600. The new convertible promissory notes are secured against all assets of the Company, repayable two years after issuance, bearing simple interest rate of 10% during the term of the notes and simple interest rate of 20% after the due dates. The convertible promissory notes are convertible at any time after the original issuance date into a number of shares of the Company’s common stock, determined by dividing the amount to be converted by a conversion price of $0.05 per share.

Page 29 of 32

On September 6, 2019, the Company issued 300,000 shares of its common stock in lieu of cash for services to three members of the board of directors with a fair value of $19,740.

On September 15, 2019, the Company issued a convertible promissory note to a related party with principal balances of $50,00 in consideration of accrued liabilities of $30,000 and reimbursable accounts payable of $20,000. The new convertible promissory note is secured against all assets of the Company, repayable two years after issuance, bearing simple interest rate of 10% during the term of the notes and simple interest rate of 20% after the due dates. The convertible promissory notes are convertible at any time after the original issuance date into a number of shares of the Company’s common stock, determined by dividing the amount to be converted by a conversion price of $0.05 per share.

On September 20, 2019, as per Note 10, a holder elected to convert a non-related party note with a balance of $36,000 including accrued interest of $6,000 into 300,000 common shares pursuant to the terms of the agreement at a conversion price of $0.12 per share.

On September 20, 2019, as per Note 10, a holder elected to convert a non-related party note with a balance of $12,000 including accrued interest of $2,000 into 100,000 common shares pursuant to the terms of the agreement at a conversion price of $0.12 per share.

On October 14, 2019, as per Note 10, a holder elected to convert two non-related party notes with an aggregate balance of $4,020 including accrued interest of $670 into 40,200 common shares pursuant to the terms of the agreement at a conversion price of $0.10 per share.

On November 22, 2019, the Company issued 78,533 shares of its common stock in lieu of cash payment for services. The value of the shares issued was $5,890, based on a price of $0.075 per share which approximates the fair value on the date of issuance.

On January 3, 2020, the Company issued 1,268,572 shares of its common stock and 1,268,572 warrants to purchase an additional 1,268,572 shares of its common stock for the price of $0.15 to two holders of convertible notes in consideration for extinguishment of the convertible notes. The warrants expire on June 30, 2021.

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For the three months ended January 31, 2020, ten holders of convertible notes elected to convert a non-related party notes with an aggregate balance of $109,513 including accrued interest of $18,238 into 1,071,303 common shares pursuant to the terms of the agreements at a conversion price of $0.10 per share.

On February 10, 2020, the Company issued 54,700 shares of its common stock in lieu of cash payment to two vendors whose accounts payable totaled $3,290.

On February 10, 2020, the Company issued 100,566 shares of its common stock with a fair value of $5,338 to two employees through direct purchases via accrued payroll deductions.

On February 25, 2020, the Company issued 1000,000 shares of its common stock with a fair value of $7,000 to an employee pursuant to terms of an employment agreement.

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES.

None

ITEM 4. MINE SAFETY ~~DISCOSURES~~DISCLOSURES.

Not applicable

ITEM 5.

OTHER INFORMATION.

None

Page 3031 of 3233

ITEM 6.

EXHIBITS

Exhibit
Number		Description of Exhibits
31.1		Certification of Principal Executive Officer as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2		Certification of Principal Financial Officer as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1		Certification of Principal Executive Officer as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2		Certification of Principal Financial Officer as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS(2)		XBRL Instance
101.SCH*		XBRL Taxonomy Extension Schema
101.CAL*		XBRL Taxonomy Extension Calculation
101.DEF*		XBRL Taxonomy Extension Definition
101.LAB*		XBRL Taxonomy Extension Labels
101.PRE*		XBRL Taxonomy Extension Presentation

Page 3132 of 3233

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.

		REGI, U.S., INC.
Date:	~~December~~April 1624, ~~2019~~2020	By:	/s/ PAUL W. CHUTE
			Paul W. Chute
			Chief Executive Officer
			(Principal Executive Officer)
Date:	~~December~~April 1624, ~~2019~~2020	~~By:~~	/s/ PAUL W. CHUTE
			Paul W. Chute
		By:	Paul W. Chute
			Chief Financial Officer
			(Principal Financial Officer)

Page 3233 of 3233

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