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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

Mark One

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

For the quarterly period ended ~~December~~March 31, ~~2022~~ 2023

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

For the transition period from ______ to _______

COMMISSION FILE NO. 000-56368

WEARABLE HEALTH SOLUTIONS, INC.

(Exact name of registrant as specified in its charter)

Nevada	26-3534190	3669
(State or Other Jurisdiction of	IRS Employer	Primary Standard Industrial
Incorporation or Organization)	Identification Number	Classification Code
		Number

2901 W. Coast Highway, Suite 200,

Newport Beach, CA 92663

(Address of principal executive offices)

Phone: 949-270-7460

(Registrant’s telephone number)

Indicate by checkmark whether the issuer: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☐ No ☒

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

☐	Large accelerated filer	☐	Accelerated filer
☒	Non-accelerated filer	☒	Smaller reporting company
		☐	Emerging growth company

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

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

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

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
N/A		N/A		N/A

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

Class		Outstanding as of ~~February~~May 2122, 2023
Common Stock, $0.0001		1,~~534~~561,255,108

WEARABLE HEALTH SOLUTIONS, INC.

TABLE OF CONTENTS

PART I
Item 1.	Financial Statements	3
	Balance Sheets as of December 31, 2022 (unaudited) and June 30, 2022	3
	Consolidated Balance Sheets as of March 31, 2023 (unaudited) and June 30, 2022	3
	Statements of Operations for the Three and Six Months Ended December 31, 2022 and 2021 (Unaudited)	4
	Consolidated Statements of Operations for the Three and Nine Months Ended March 31, 2023 and 2022 (Unaudited)	4
	Statements of Changes in Shareholders’ Deficit for the Three and Six Months Ended December 31, 2022 and 2021 (Unaudited)	5
	Consolidated Statements of Changes in Shareholders’ Deficit for the Three and Nine Months Ended March 31, 2023 and 2022 (Unaudited)	5
	Statements of Cash Flows for the Six Months Ended December 31, 2022 and 2021 (Unaudited)	8
	Consolidated Statements of Cash Flows for the Nine Months Ended March 31, 2023 and 2022 (Unaudited)	11
	Notes to the Financial Statements (Unaudited)	9
	Notes to the Consolidated Financial Statements (Unaudited)	12
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2126
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	2530
Item 4.	Controls and Procedures	2531
PART II
Item 1.	Legal Proceedings	2732
Item 1A.	Risk Factors	2732
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2732
Item 3.	Defaults Upon Senior Securities	2732
Item 4.	Mining Safety Disclosures	2732
Item 5.	Other Information	2732
Item 6.	Exhibits	2833
	Signatures	2934

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

Wearable Healthcare Solutions, Inc.

Consolidated Balance Sheets

As at ~~December~~March 31, ~~2022~~2023 and June 30, 2022

	December 31, 2022			June 30, 2022
	March 31, 2023			June 30, 2022
	(unaudited)
ASSETS
Current Assets
Cash and cash equivalents	$	4516,~~474~~341		$	70,505
Accounts receivable, net		~~9,206~~812			–
Due from related parties (See Footnote 11)		–			155,800
Accounts receivable, other		2,000			2,000
Inventory		6433,~~170~~281			7,064
Prepaid Inventory		–			62,040
Prepaid inventory		–			62,040
Prepaid expenses		3,900			–
Total Current Assets		52,434			297,409
Total Current Assets		124,750			297,409
Property and Equipment
Property and equipment (net of $14,180 and $8,349 depreciation, as of December 31, 2022 and June 30, 2022, respectively)		45,262			41,651
Property and equipment (net of $17,466 and $8,349 depreciation, as of March 31, 2023 and June 30, 2022, respectively)		41,976			41,651
Total Property and Equipment		4541,~~262~~976			41,651
Right-of-use assets		3835,~~786~~505			–
Total Assets	$	~~208~~129,~~798~~915		$	339,060
LIABILITIES and SHAREHOLDERS' DEFICIT
COMMITMENTS AND CONTINGENCIES (Note 12)		–			–
Current liabilities
Accounts payable	$	4566,~~861~~081		$	57,940
Accrued expenses and other current liabilities		~~404~~446,~~021~~650			374,278
Short-term lease liability		13,~~256~~643			–
Related party debt, net		~~240~~508,~~654~~252			213,840
Deferred revenue		6961,~~006~~473			80,880
Line of credit		397,500			397,500
Notes payable		397,~~990~~189			413,099
Note payable - other		50,000			50,000
Note payable - related party		170,000			170,000
Convertible notes – Leonite, net of debt discount of $58,871 and $-0-, respectively, and deferred debt issuance costs of $56,456 and $-0-, respectively		93,006			–
Convertible notes – Leonite, net of debt discount of $46,371 and $-0-, respectively, and deferred debt issuance costs of $44,469 and $-0-, respectively		221,660			–
Convertible notes- other		673,750			673,750
Convertible notes - other		673,750			673,750
Total current liabilities		23,~~555~~006,~~044~~198			2,431,287
Long-term lease liability		2522,~~670~~107			–
Long-term convertible notes – Leonite		104,167			–
TOTAL LIABILITIES		3,028,305			2,431,287
TOTAL LIABILITIES		2,684,881			2,431,287
SHAREHOLDERS’ DEFICIT
Preferred stock - 25,000,000 Shares Authorized, par value $0.0001
Series A Convertible Preferred Stock: $0.0001 par value; 100,000 shares authorized, 688 shares issued and outstanding as of December 31, 2022 and June 30, 2022, respectively	$	1		$	1
Series A Convertible Preferred Stock: $0.0001 par value; 100,000 shares authorized, 688 shares issued and outstanding as of March 31, 2023 and June 30, 2022, respectively	$	1		$	1
Series B Convertible Preferred Stock: $0.0001 par value; 62,500 shares authorized, 9,938 shares issued and outstanding as of December 31, 2022 and June 30, 2022, respectively		1			1
Series B Convertible Preferred Stock: $0.0001 par value; 62,500 shares authorized, 9,938 shares issued and outstanding as of March 31, 2023 and June 30, 2022, respectively		1			1
Series C Preferred Stock: $0.0001 par value; 6,944,445 authorized, 6,838,889 shares issued and outstanding as of December 31, 2022 and June 30, 2022, respectively		684			684
Series C Preferred Stock: $0.0001 par value; 6,944,445 authorized, 6,838,889 shares issued and outstanding as of March 31, 2023 and June 30, 2022, respectively		684			684
Series D Preferred Stock: $0.0001 par value; 500,000 shares authorized, 425,000 shares issued and outstanding as of December 31, 2022 and June 30, 2022, respectively		43			43
Series D Preferred Stock: $0.0001 par value; 500,000 shares authorized, 425,000 shares issued and outstanding as of March 31, 2023 and June 30, 2022, respectively		43			43
Series E Preferred Stock $0.0001 par value, 4,000,000 shares designated, 4,000,000 shares issued and outstanding as of December 31, 2022 and June 30, 2022, respectively		400			400
Series E Preferred Stock $0.0001 par value, 4,000,000 shares designated, 4,000,000 shares issued and outstanding as of March 31, 2023 and June 30, 2022, respectively		400			400
Common stock
Common Stock: $0.0001 par value; 3,000,000,000 shares authorized,1,531,592,608 and 1,493,142,608 shares issued and outstanding as of December 31, 2022 and June 30, 2022, respectively		153,159			149,314
Common Stock: $0.0001 par value; 3,000,000,000 shares authorized,1,549,255,108 and 1,493,142,608 shares issued and outstanding as of March 31, 2023 and June 30, 2022, respectively		154,926			149,314
Common stock to be issued (95,430,000 and 35,602,500 shares as of December 31, 2022 and June 30, 2022, respectively)		811,068			407,677
Common stock to be issued (98,242,500 and 35,602,500 shares as of March 31, 2023 and June 30, 2022, respectively)		814,555			407,677
Additional paid-in capital		37,~~270~~365,~~501~~081			36,773,035
Accumulated deficit		(4041,~~711~~234,~~940~~081	)		(39,423,382	)
Total Shareholders’ Deficit		(2,~~476~~898,~~083~~390	)		(2,092,227	)
Total Liabilities and Shareholders’ Deficit	$	~~208~~129,~~798~~915		$	339,060

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

Wearable Healthcare Solutions, Inc.

Consolidated Statements of Operations

For the Three and ~~Six~~Nine Months Ended ~~December~~ March 31, 2023 ~~2022~~ and ~~2021~~2022 (unaudited)

For the Three Months Ended

For the ~~Six~~Nine Months Ended

12/31/2022

12/31/2021

12/31/2022

12/31/2021

March 31, 2023

March 31, 2022

March 31, 2023

March 31, 2022

Revenue

~~198~~193,~~039~~745

~~304~~212,~~524~~982

~~414~~608,~~499~~244

~~606~~819,~~619~~601

Cost of sales

(99135,~~418~~207

)

(~~143~~111,~~138~~434

)

(~~219~~354,~~420~~627

)

(~~345~~457,~~873~~307

)

Gross profit

9858,~~621~~538

~~161~~101,~~386~~548

~~195~~253,~~079~~617

~~260~~362,~~746~~294

Operating expenses

Selling expense

8033,~~272~~784

~~126~~44,~~124~~346

~~270~~304,~~282~~066

~~274~~318,~~362~~708

Depreciation

3,~~287~~286

2,500

59,~~831~~117

35,~~349~~849

Research and development expense

–

71209,~~212~~800

2,180

~~270~~374,~~212~~484

Consulting and professional fees

6519,~~505~~528

~~183~~106,~~920~~624

~~107~~127,~~819~~347

~~381~~462,~~374~~998

Insurance

2735,~~326~~557

628,~~973~~124

5692,~~518~~075

2250,~~381~~507

Rent

64,~~780~~080

4,050

1216,~~190~~270

812,~~505~~555

Salaries and wages

~~354~~358,~~429~~386

~~277~~6,~~013~~974,610

~~857~~1,~~285~~215,671

310,~~806~~904,~~466~~649

Software expense

–

2924,~~633~~500

–

~~123~~22,~~110~~887

General and administrative

8083,~~449~~559

6689,~~767~~084

~~162~~245,~~426~~985

77295,~~903~~659

Total Operating expenses

~~618~~538,~~048~~180

~~768~~7,~~182~~483,638

12,~~474~~012,~~531~~711

412,~~967~~448,~~662~~296

Loss from operations

(~~519~~479,~~427~~642

)

(~~606~~7,~~796~~382,090

)

(1,~~279~~759,~~452~~094

)

(412,~~706~~086,~~916~~002

)

Other income / (expense), net

Change in fair value of derivative instrument

–

~~25,102~~–

–

(213,053

)

Gain on debt extinguishment

–

~~80,313~~–

–

96,145

Gain on settlement of accounts payable

–

~~156,618~~–

–

156,616

Other income

–

–23,000

19,500

–23,000

Interest income

–

1,500

–

Interest expense

(2042,~~364~~499

)

(248,~~212~~493

)

(3072,~~106~~605

)

(5668,~~512~~009

)

Total other income (expense), net

(2042,~~364~~499

)

~~237~~14,~~821~~507

(951,~~106~~605

)

(165,~~804~~301

)

Net loss before taxes

(~~539~~522,~~791~~141

)

(~~368~~7,~~985~~367,583

)

(1,~~288~~810,~~558~~699

)

(412,~~723~~091,~~720~~303

)

Income tax

–

Net loss

(~~539~~522,~~791~~141

)

(~~368~~7,~~985~~367,583

)

(1,~~288~~810,~~558~~699

)

(412,~~723~~091,~~720~~303

)

Net loss per common share - Basic and Diluted

(0.~~00035~~00034

)

(0.~~00036~~00731

)

(0.~~00085~~00118

)

(0.~~00980~~01487

)

Weighted average common shares outstanding - Basic & Diluted

1,~~531~~536,~~592~~378,~~608~~441

1,~~035~~008,~~682~~459,~~403~~767

1,~~524~~528,~~691~~530,~~793~~473

~~481~~813,~~805~~299,~~430~~239

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

Wearable Healthcare Solutions, Inc.

Consolidated ~~Statement~~Statements of Shareholders’ Deficit

For the Three and ~~Six~~Nine Months Ended ~~December~~ March 31, 2023 ~~2022~~ and ~~2021~~2022 (unaudited)

Series A

Series B

Series C

Series C to be issued

Amount

As at June 30, 2021

688

9,938

6,838,889

684

–

Loss for the period

–

Common stock for comp

–

Common stock for compensation

–

Common stock for debt conversion

–

Common stock for officer comp

–

Common stock for officer compensation

–

Preferred stock for compensation

–

Shares sold for cash

–

As at September 30, 2021

688

9,938

6,838,889

684

–

Loss for the period

–

Common stock for services

–

Common stock for comp

–

Common stock for compensation

–

Common stock for debt conversion

–

Preferred stock for compensation

–

Subscription receivable

–

Shares sold for cash

–

As at December 31, 2021

688

9,938

6,838,889

684

–

As at June 30, 2022

688

9,938

6,838,889

684

–

Loss for the period

–

Common stock for services

–

Common stock for compensation

–

Common stock to be issued for compensation

–

Common stock for debt conversion

–

Common stock for officer compensation

–

Preferred stock for compensation

–

Common stock to be issued for officer comp

–

Subscription receivable

–

Shares issued for services

–

Shares sold for cash

–

Shares sold for cash – prior quarter

–

As at March 31, 2022

688

9,938

6,838,889

684

–

Shares sold for cash – current quarter

–

Payment of subscription receivable

–

As at September 30, 2022

688

9,938

6,838,889

684

–

Loss for the period

–

Common stock for compensation

–

Common stock to be issued for compensation

–

Common stock for officer compensation

–

Common stock to be issued for officer compensation

–

Shares issued for services

–

Commitment shares – Leonite convertible note

–

Shares sold for cash – prior quarter

–

Shares sold for cash – current quarter

–

Payment of subscription receivable

–

As at December 31, 2022

688

9,938

6,838,889

684

–

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

Wearable Healthcare Solutions, Inc.

Consolidated ~~Statement~~Statements of Shareholders’ Deficit

For the Three and ~~Six~~Nine Months Ended ~~December~~ March 31, 2023 ~~2022~~ and ~~2021~~2022 (unaudited)

(continued)

Series D

Series E

Series E to be issued

Series A

Series B

Series C

Series C to be issued

Amount

As at June 30, 2021

425,000

1,900,000

190

100,000

57,000

As at June 30, 2022

688

9,938

6,838,889

684

–

Loss for the period

–

Common stock for comp

–

Common stock for compensation

–

Common stock for debt conversion

–

Common stock to be issued for compensation

–

Common stock for officer comp

–

Common stock for officer compensation

–

Preferred stock for compensation

–

2,000,000

200

–

Common stock to be issued for officer compensation

–

Shares sold for cash

–

Shares issued for services

–

As at September 30, 2021

425,000

3,900,000

390

100,000

57,000

Shares sold for cash – prior quarter

–

Loss for the period

–

Shares sold for cash – current quarter

–

Common stock for services

–

Payment of subscription receivable

–

Common stock for comp

–

As at September 30, 2022

688

9,938

6,838,889

684

–

Common stock for debt conversion

–

Loss for the period

–

Preferred stock for compensation

–

100,000

(100,000

)

(57,000

)

Common stock for compensation

–

Subscriptions receivable

–

Common stock to be issued for compensation

–

Shares sold for cash

–

Common stock for officer compensation

–

As at December 31, 2021

425,000

4,000,000

400

–

Common stock to be issued for officer compensation

–

As at June 30, 2022

425,000

4,000,000

400

–

Shares issued for services

–

Loss for the period

–

Shares sold for cash – prior quarter

–

Common stock for compensation

–

Shares sold for cash – current quarter

–

Common stock to be issued for compensation

–

Payment of subscription receivable

–

Common stock for officer compensation

–

As at December 31, 2022

688

9,938

6,838,889

684

–

Common stock to be issued for officer comp

–

Loss for the period

–

Shares issued for services

–

Common stock for compensation

–

Shares sold for cash – prior quarter

–

Common stock to be issued compensation

–

Shares sold for cash – current quarter

–

Common stock for officer compensation

–

Payment of subscription receivable

–

Common stock to be issued for officer compensation

–

As at September 30, 2022

425,000

4,000,000

400

–

Shares issued for services

–

Loss for the period

–

Shares sold for cash – prior quarter

–

Common stock for compensation

–

Shares sold for cash – current quarter

–

Common stock to be issued for compensation

–

Payment of subscription receivable

–

Common stock for officer compensation

–

As at March 31, 2023

688

9,938

6,838,889

684

–

Common stock to be issued for officer comp

–

Shares issued for services

–

Commitment shares – Leonite convertible note

–

Shares sold for cash – prior quarter

–

Shares sold for cash – current quarter

–

Payment of subscription receivable

–

As at December 31, 2022

425,000

4,000,000

400

–

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

Wearable Healthcare Solutions, Inc.

Consolidated ~~Statement~~Statements of Shareholders’ Deficit

For the Three and ~~Six~~Nine Months Ended ~~December~~ March 31, 2023 ~~2022~~ and ~~2021~~2022 (unaudited)

(continued)

Common Stock

Common Stock to be issued

Additional Paid in Capital

Accumulated Profit/Deficit

Total

Series D

Series E

Series E to be issued

Amount

~~Amount~~Shares

~~Shares~~Amount

~~Amount~~

As at June 30, 2021

~~647~~425,~~074,177~~000

~~64,708~~43

201,~~050~~900,000

~~169,005~~190

22100,~~732,295~~000

~~(26~~57,~~374,227~~000

)

~~(3,350,300~~

)

Loss for the period

–

~~(4,354,735~~–

)

~~(4,354,735~~

)

Common stock for comp

7,000,000

700

5,000,000

60,000

74,300

–

135,000

Common stock for compensation

–

Common stock for debt conversion

~~25,269,253~~–

~~2,527~~–

–

~~250,166~~–

–

~~252,693~~

Common stock for officer comp

–

225,000

2,498

–

2,498

Common stock for officer compensation

–

Preferred stock for compensation

–

–2,000,000

–200

~~2,999,800~~–

–

~~3,000,000~~

Shares sold for cash

~~232,500,000~~–

~~23,250~~–

~~(10,000,000~~–

)

~~(100,000~~–

)

~~2,301,750~~–

–

~~2,225,000~~

As at September 30, 2021

~~911~~425,~~843,430~~000

~~91,185~~43

153,~~275~~900,000

~~131,503~~390

28100,~~358,311~~000

~~(30~~57,~~728,962~~000

)

~~(2,089,845~~

)

Loss for the period

–

~~(368,985~~–

)

~~(368,985~~

)

Common stock for services

~~10,000,000~~–

~~1,000~~–

~~(10,000,000~~–

)

~~(69,000~~–

)

~~68,000~~–

–

Common stock for comp

–

225,000

2,422

–

2,422

Common stock for compensation

–

Common stock for debt conversion

~~41,149,178~~–

~~4,114~~–

–

~~420,900~~–

–

~~425,014~~

Preferred stock for compensation

–

–100,000

–10

56(100,~~990~~000

)

–(57,000

)

–

Subscriptions receivable

–

~~(100,000~~–

)

–

~~(100,000~~

)

Shares sold for cash

~~97,500,000~~–

~~9,750~~–

~~20,000,000~~–

~~200,000~~–

~~965,250~~–

–

~~1,175,000~~

As at December 31, 2021

1425,~~060,492,608~~000

~~106,049~~43

254,~~500~~000,000

~~264,925~~400

~~29,769,450~~–

~~(31,097,947~~–

)

~~(956,394~~

)

As at June 30, 2022

1,493,142,608

149,314

35,602,500

407,677

36,773,035

(39,423,382

)

(2,092,227

)

Loss for the period

–

Loss for the period

–

(748,767

)

(748,767

)

Common stock for services

–

Common stock for compensation

~~5,000,000~~–

~~500~~–

~~(2,000,000~~–

)

~~(30,000~~–

)

~~65,500~~–

–

~~36,000~~

Common stock to be issued for compensation

–

32,500

441

–

441

Common stock for debt conversion

–

Common stock for officer compensation

6,950,000

695

(6,950,000

)

(101,262

)

100,567

–

Preferred stock for compensation

–

Common stock to be issued for officer comp

–

3,475,000

47,144

–

47,144

Subscriptions receivable

–

Shares issued for services

5,000,000

500

–

88,500

–

89,000

Shares sold for cash

–

Shares sold for cash – prior quarter

21,500,000

2,150

(21,500,000

)

(215,000

)

212,850

–

As at March 31, 2022

425,000

4,000,000

400

–

Shares sold for cash – current quarter

–

67,950,000

604,500

–

604,500

Payment of subscription receivable

–

30,000

–

30,000

As at September 30, 2022

1,531,592,608

153,159

76,610,000

713,500

37,270,452

(40,172,149

)

(2,033,909

)

Loss for the period

–

(539,791

)

(539,791

)

Common stock for compensation

–

Common stock to be issued for compensation

–

32,500

210

–

210

Common stock for officer compensation

–

Common stock to be issued for officer comp

–

3,475,000

22,422

–

22,471

Shares issued for services

–

Commitment shares – Leonite convertible note

–

15,000,000

49,936

–

49,936

Shares sold for cash – prior quarter

–

Shares sold for cash – current quarter

–

312,500

25,000

–

25,000

Payment of subscription receivable

–

As at December 31, 2022

1,531,592,608

153,159

95,430,000

811,068

37,270,501

(40,711,940

)

(2,476,083

)

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

Wearable Healthcare Solutions, Inc.

Consolidated ~~Statement~~Statements of ~~Cash Flows~~Shareholders’ Deficit

For the ~~Six~~Three and Nine Months Ended ~~December~~March 31, 2023 ~~2022~~ and ~~2021~~ 2022 (unaudited)

	2022			2021
Cash flow from operating activities
Net loss	$	(1,288,558	)	$	(4,723,720	)
Adjustment for non-cash charges and other items:
Depreciation		5,831			3,349
Amortization of deferred debt issuance costs		3,480			–
Stock compensation expense		195,266			3,139,920
Change in fair value of derivative instrument		–			213,053
Gain on debt extinguishment		–			(96,145	)
Gain on settlement of accounts payable		–			(156,616	)
Amortization of debt discount		3,629			–
Total adjustments		(1,080,352	)		(1,620,159	)
Changes in working capital
Decrease / (increase) in accounts receivable		(9,206	)		12,936
Decrease / (increase) in inventory		(57,106	)		–
Decrease / (increase) in prepaid inventory		62,040			–
Decrease / (increase) in prepaid expenses		(3,900	)		9,402
(Decrease) / increase in trade and other payables		(12,079	)		(61,688	)
(Decrease) / increase in accrued expenses		29,883			73,424
(Decrease) / increase in accrued expenses - related party		26,814			(207,444	)
(Decrease) / increase in deferred revenue		(11,874	)		(13,283	)
Total changes in working capital		24,572			(186,653	)
Cash flow used in operating activities	$	(1,055,780	)	$	(1,806,812	)
Cash flow from investing activities
Purchase of property and equipment		(9,442	)		(50,000	)
Cash flow used in financing activities		(9,442	)		(50,000	)
Cash flow from financing activities
Proceeds from note payable		–			25,000
Proceeds received from related parties		155,800			–
Proceeds from issuance of convertible notes		240,000			–
Proceeds from issuance of stock for cash		659,500			3,300,000
Repayments of note payable		(15,109	)		(685,510	)
Payments to related parties		–			(30,155	)
Cash flow provided by financing activities		1,040,191			2,609,335
(Decrease) Increase in cash and cash equivalents		(25,031	)		752,523
Cash and cash equivalents at the beginning of the period		70,505			847,430
Cash and cash equivalents at end of the period	$	45,474		$	1,599,953
Cash paid for interest and taxes
Interest	$	–		$	–
Taxes	$	–		$	–

(continued)

Series D

Series E

Series E to be issued

Amount

As at June 30, 2022

425,000

4,000,000

400

–

Loss for the period

–

Common stock for compensation

–

Common stock to be issued for compensation

–

Common stock for officer compensation

–

Common stock to be issued for officer compensation

–

Shares issued for services

–

Shares sold for cash – prior quarter

–

Shares sold for cash – current quarter

–

Payment of subscription receivable

–

As at September 30, 2022

425,000

4,000,000

400

–

Loss for the period

–

Common stock for compensation

–

Common stock to be issued for compensation

–

Common stock for officer compensation

–

Common stock to be issued for officer compensation

–

Shares issued for services

–

Commitment shares – Leonite convertible note

–

Shares sold for cash – prior quarter

–

Shares sold for cash – current quarter

–

Payment of subscription receivable

–

As at December 31, 2022

425,000

4,000,000

400

–

Loss for the period

–

Common stock for compensation

–

Common stock to be issued for compensation

–

Common stock for officer compensation

–

Common stock to be issued for officer compensation

–

Shares issued for services

–

Commitment shares – Leonite convertible note

–

Shares sold for cash – prior quarter

–

Shares sold for cash – current quarter

–

Payment of subscription receivable

–

As at March 31, 2023

425,000

4,000,000

400

–

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

Wearable Healthcare Solutions, Inc.

Consolidated Statements of Shareholders’ Deficit

For the Three and Nine Months Ended March 31, 2023 and 2022 (unaudited)

(continued)


	Common Stock				Common Stock to be issued						Additional Paid in Capital			Accumulated Profit/Deficit			Total
	Shares		Amount		Shares			Amount			Amount			Shares			Amount

As at June 30, 2021		647,074,177	$	64,708		20,050,000		$	169,005		$	22,732,295		$	(26,374,227	)	$	(3,350,300	)

Loss for the period		–		–		–			–			–			(4,354,735	)		(4,354,735	)
Common stock for compensation		7,000,000		700		5,000,000			60,000			74,300			–			135,000
Common stock for debt conversion		25,269,253		2,527		–			–			250,166			–			252,693
Common stock for officer compensation		–		–		225,000			2,498						–			2,498
Preferred stock for compensation		–		–		–			–			2,999,800			–			3,000,000
Shares sold for cash		232,500,000		23,250		(10,000,000	)		(100,000	)		2,301,750			–			2,225,000

As at September 30, 2021		911,843,430	$	91,185		15,275,000		$	131,503		$	28,358,311		$	(30,728,962	)	$	(2,089,845	)

Loss for the period		–		–		–			–			–			(368,985	)		(368,985	)
Common stock for services		10,000,000		1,000		(10,000,000	)		(69,000	)		68,000			–			–
Common stock for compensation		–		–		225,000			2,422			–			–			2,422
Common stock for debt conversion		41,149,178		4,114		–			–			420,900			–			425,014
Preferred stock for compensation		–		–		–			–			56,990			–			–
Subscriptions receivable		–		–		–			–			(100,000	)		–			(100,000	)
Shares sold for cash		97,500,000		9,750		20,000,000			200,000			965,250			–			1,175,000

As at December 31, 2021		1,060,492,608	$	106,049		25,500,000		$	264,925		$	29,769,450		$	(31,097,947	)	$	(956,394	)

Loss for the period		–		–		–			–			–			(7,367,583	)		(7,367,583	)
Common stock for services		–		–		–			–			–			–			–
Common stock for compensation		–		–		402,132,500			6,470,634			–			–			6,470,634
Common stock for debt conversion		–		–		–			–			–			–			–
Preferred stock for compensation		–		–		–			–			–			–			–
Subscriptions receivable		–		–		–			–			–			–			–
Shares sold for cash		20,000,000		2,000		(20,000,000	)		(200,000	)		198,000			–			–

As at March 31, 2022		1,080,492,608	$	108,049		407,632,500		$	6,535,559		$	29,967,450		$	(38,465,530	)	$	(1,853,343	)

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

Consolidated Statements of Shareholders’ Deficit

For the Three and Nine Months Ended March 31, 2023 and 2022 (unaudited)

(continued)

Common Stock

Common Stock to be issued

Additional Paid in Capital

Accumulated Profit/Deficit

Total

Amount

As at June 30, 2022

1,493,142,608

149,314

35,602,500

407,677

36,773,035

(39,423,382

)

(2,092,227

)

Loss for the period

–

(748,767

)

(748,767

)

Common stock for compensation

5,000,000

500

(2,000,000

)

(30,000

)

65,500

–

36,000

Common stock to be issued for compensation

–

32,500

441

–

441

Common stock for officer compensation

6,950,000

695

(6,950,000

)

(101,262

)

100,567

–

Common stock to be issued for officer compensation

–

3,475,000

47,144

–

47,144

Shares issued for services

5,000,000

500

–

88,500

–

89,000

Shares sold for cash – prior quarter

21,500,000

2,150

(21,500,000

)

(215,000

)

212,850

–

Shares sold for cash – current quarter

–

67,950,000

604,500

–

604,500

Fees incurred in connection with equity offering

–

Payment of subscription receivable

–

30,000

–

30,000

Other

–

As at September 30, 2022

1,531,592,608

153,159

76,610,000

713,500

37,270,452

(40,172,149

)

(2,033,909

)

Loss for the period

–

(539,791

)

(539,791

)

Common stock for compensation

–

Common stock to be issued for compensation

–

32,500

210

–

210

Common stock for officer compensation

–

Common stock to be issued for officer compensation

–

3,475,000

22,422

–

22,471

Shares issued for services

–

Commitment shares – Leonite convertible note

–

15,000,000

49,936

–

49,936

Shares sold for cash – prior quarter

–

Shares sold for cash – current quarter

–

312,500

25,000

–

25,000

Fees incurred in connection with equity offerings

–

Payment of subscription receivable

–

Other

–

As at December 31, 2022

1,531,592,608

153,159

95,430,000

811,068

37,270,501

(40,711,940

)

(2,476,083

)

Loss for the period

–

(522,141

)

(522,141

)

Common stock for compensation

–

Common stock to be issued for compensation

–

Common stock for officer compensation

2,662,500

266

(2,662,500

)

(22,846

)

22,580

–

Common stock to be issued for officer compensation

–

3,475,000

16,333

–

16,333

Shares issued for services

15,000,000

1,500

–

73,500

–

75,000

Commitment shares – Leonite convertible note

–

Shares sold for cash – prior quarter

–

Shares sold for cash – current quarter

–

2,000,000

10,000

–

10,000

Fees incurred in connection with equity offering

–

(1,500

)

–

(1,500

)

Payment of subscription receivable

–

Other

–

As at March 31, 2023

1,549,255,108

154,926

98,242,500

814,555

37,365,081

(41,234,081

)

(2,898,390

)

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

Wearable Healthcare Solutions, Inc.

Consolidated Statements of Cash Flows

For the Nine Months Ended March 31, 2023 and 2022 (unaudited)


	2023			2022
Cash flow from operating activities
Net loss	$	(1,810,699	)	$	(12,091,303	)
Adjustment for non-cash charges and other items:
Depreciation		9,117			5,849
Amortization of deferred debt issuance costs		15,467			–
Stock-based compensation expense		286,600			9,610,554
Change in fair value of derivative instrument		–			213,053
Gain on debt extinguishment		–			(96,145	)
Gain on settlement of accounts payable		–			(156,616	)
Amortization of debt discount		16,129			–
Total adjustments		(1,483,386	)		(2,514,608	)
Changes in working capital
Decrease / (increase) in accounts receivable		(812	)		25,694
Decrease / (increase) in inventory		(26,217	)		–
Decrease / (increase) in prepaid inventory		62,040			–
Decrease / (increase) in prepaid expenses		–			16,485
(Decrease) / increase in trade and other payables		8,141			(67,992	)
(Decrease) / increase in accrued expenses		72,617			99,393
(Decrease) / increase in accrued expenses - related party		225,047			(204,121	)
(Decrease) / increase in deferred revenue		(19,407	)		(25,992	)
Total changes in working capital		321,409			(156,533	)
Cash flow used in operating activities		(1,161,977	)		(2,671,141	)

Cash flow from investing activities
Purchase of property and equipment		(9,442	)		(50,000	)
Cash flow used in investing activities		(9,442	)		(50,000	)

Cash flow from financing activities
Proceeds from note payable		–			25,000
Proceeds received from related parties		225,165			–
Proceeds from issuance of convertible notes		240,000			–
Proceeds from issuance of stock for cash		669,500			3,300,000
Repayments of note payable		(15,910	)		(825,864	)
Fees paid in connection with equity offerings		(1,500	)		–
Payments to related parties		–			(55,452	)
Cash flow provided by financing activities		1,117,255			2,443,684
Decrease in cash and cash equivalents		(54,164	)		(277,457	)
Cash and cash equivalents at the beginning of the period		70,505			847,430
Cash and cash equivalents at end of the period	$	16,341		$	569,973

Non-Cash Investing and Financial Activities:
Conversions of notes and accrued interest	$	–		$	269,954

Cash paid for interest and taxes
Interest	$	8,382		$	–
Taxes	$	–		$	–

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

WEARABLE HEALTHCARE SOLUTIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~December~~March 31, ~~2022~~2023 (unaudited) and June 30, 2022

Note 1 – Nature and Continuance of Operations

Wearable Healthcare Solutions Inc. (the Company) was incorporated as Medical Alarm Concepts Holding, Inc. on June 4, 2008, under the laws of the State of Nevada. The Company was formed for the sole purpose of acquiring all of the membership units of Medical Alarm Concepts LLC, a Pennsylvania limited liability company (“Medical LLC”). On May 26, 2016, the Company filed an Amended and Restated Articles of Incorporation with the Secretary of State of the State of Nevada to change its name from “Medical Alarm Concepts, Inc.” to “Wearable Health Solutions, Inc.”

The Company provides mobile health (mHealth) products and services to be used by customers in case of an emergency. As a provider of personal emergency devices, the Company provides innovative wearable healthcare products, tracking services, and turn-key solutions that enable our users to be proactive with their health, as well as safe and protected.

The Company’s flagship products are the iHelp devices, the 3G and the next generation iHelp MAX™ – personal emergency alarm that are used to summon help in the event of an emergency at home.

Basis of presentation

The accompanying interim consolidated financial statements are unaudited, but in the opinion of management of Wearable Healthcare Solutions, Inc. (the Company), contain all adjustments, which include normal recurring adjustments, necessary to present fairly the financial position at ~~December~~March 31, ~~2022~~2023, and the results of ~~operations~~ operations and changes in shareholders’ deficit for the three and ~~six~~nine months ended ~~December~~March 31, ~~2022~~2023 and cash flows for the ~~six~~ nine months ended March ~~December~~ 31, ~~2022~~2023. The balance sheet as of June 30, 2022, is derived from the Company’s audited financial statements.

Certain information and footnote disclosures normally included in financial statements that have been prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission, although management of the Company believes that the disclosures contained in these financial statements are adequate to make the information presented therein not misleading. For further information, refer to the financial statements and the notes thereto included in the Company’s Annual Report on this Form 10-K for the fiscal year ended June 30, 2022.

The results of operations for the three and ~~six~~nine months ended ~~December~~March 31, ~~2022~~2023, are not necessarily indicative of the results of operations to be expected for the full fiscal year ending June 30, 2023.

Note 2 – Summary of Significant Accounting Policies

Principles of Consolidation – The consolidated financial statements include the accounts of the Company and its wholly-owned ~~or controlled~~ operating subsidiary: Medical Alarm Concepts, LLC. All intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates – The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Future events and their effects cannot be determined with absolute certainty. Therefore, the determination of management’s estimates requires the exercise of judgment. The Company’s management evaluates these significant estimates and assumptions including those related to the fair value of acquired assets and liabilities, stock-based compensation, income taxes, allowance for doubtful accounts, long-lived assets, and inventories, and other matters that affect the consolidated financial statements and disclosures. Actual results could differ from those estimates.

Cash and Cash Equivalents – For purposes of the Statement of Cash Flows, the Company considers highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

9Accounts Receivable – The Company estimates credit loss reserves for accounts receivable on an individual receivable basis. A specific impairment allowance reserve is established based on expected future cash flows and the financial condition of the debtor. The Company charges off customer balances in part or in full when it is more likely than not that we will not collect that amount of the balance due. The Company considers any balance unpaid after the contract payment period to be past due. There are $24,517 and $-0- in accounts receivable net of allowances of $23,705 and $-0- at March 31, 2023 and June 30, 2022, respectively.

Accounts Receivable – The Company estimates credit loss reserves for accounts receivable on an individual receivable basis. A specific impairment allowance reserve is established based on expected future cash flows and the financial condition of the debtor. The Company charges off customer balances in part or in full when it is more likely than not that we will not collect that amount of the balance due. The Company considers any balance unpaid after the contract payment period to be past due. There are $32,911 and $-0- in accounts receivable net of allowances of $23,705 and $-0- at December 31, 2022 and June 30, 2022, respectively.

Software Development for internal use - The Company accounts for software development costs in accordance with applicable guidelines. Software development costs include payroll, employee benefits, stock-based compensation expense, and other headcount-related expenses associated with product development. Software development costs also include third-party development and programming costs, localization costs incurred to translate software for international markets, and the amortization of purchased software code and services content. Such costs related to software development are included in software development expense until the point that technological feasibility is reached. Once technological feasibility is reached, such costs are capitalized and depreciated over the useful estimated lives of the software. For software modifications or developments, the Company expenses the costs. The Company purchased its dealer portal for $50,000 on August 30, 2021 which is being depreciated over 5 years.

Concentration of Credit Risk - Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses.

Recognition of Revenues – Recognition of Revenues – In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 establishes a single comprehensive model for entities to use in accounting for revenue arising from outside contracts with customers and supersedes most of the existing revenue recognition guidance and notes that lease contracts with customers are a scope exception. ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services and also requires certain additional disclosures. On August 12, 2015, the FASB issued ASU 2015-14 to defer the effective date of ASU 2014-09. Public business entities may elect to adopt the amendments as of the original effective date; however, adoption is required for annual reporting periods beginning after December 15, 2017. The Company has adopted this pronouncement.

The Company’s revenues are derived principally from utilizing new technology in the medical alarm industry to provide 24-hour personal response monitoring services and related products to subscribers with medical or age-related conditions. The Company recognizes revenue when it is realized or realizable and earned. For hardware sales, the Company recognizes revenues at a point in time when the product is shipped. Customers are billed on Net 30 terms. For service revenue, the Company recognizes revenues over the term of the service contract and when the services are rendered. For customers who pay several months at a time, the Company records revenues for the month’s services and the balance of funds to deferred revenues, and records the balance of revenues as they become current.

Schedule of revenues

3 months ended December 31,

6 months ended December 31,

3 months ended March 31,

9 months ended March 31,

REVENUES

~~2022~~2023

~~2021~~2022

~~2022~~2023

~~2021~~2022

Hardware revenue

2331,~~849~~476

235,~~402~~659

5082,~~725~~201

7682,~~985~~644

Service revenue

~~174~~162,~~190~~269

~~281~~207,~~122~~323

~~363~~526,~~774~~043

~~529~~736,~~634~~957

TOTAL REVENUES

~~198~~193,~~039~~745

~~304~~212,~~524~~982

~~414~~608,~~499~~244

~~606~~819,~~619~~601

The following table discloses changes in unearned revenue for the ~~six~~nine months ended ~~December~~March 31, ~~2022~~2023 and ~~2021~~2022:

Schedule of unearned revenue
	2022			2021
	2023			2022
Balance at beginning of period - June 30,	$	80,880		$	108,298
Deferred revenue		84120,~~241~~688			~~120~~168,~~313~~823
Recognition of unearned revenue		(96140,~~115~~095	)		(~~133~~194,~~596~~815	)
Balance at the end of the period - December 31,	$	69,006		$	95,015
Balance at the end of the period - March 31,	$	61,473		$	82,306

Deferral of revenues at ~~December~~March 31, ~~2022~~2023 and ~~December~~ March 31, ~~2021~~2022 was $6961,~~006~~473 and $9582,~~015~~306, respectively. The deferred revenue represents quarterly and annual prepaid service fees, which ~~were~~ were invoiced and paid at the onset of customer service agreements and which pertain to service obligations not realized at ~~December~~March 31, ~~2022~~ 2023 and ~~December~~March 31, ~~2021~~2022, respectively. We have no agreements longer than 12 months.

Deferred Taxes – The Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date.

ASC 740, Income Taxes, requires a company to first determine whether it is more likely than not (which is defined as a likelihood of more than fifty percent) that a tax position will be sustained based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information. A tax position that meets this more-likely-than-not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority.

The Federal and state income tax returns of the Company for 2021, 2020, and 2019 are subject to examination by the Internal Revenue Service and state taxing authorities for three (3) years from the date filed.14

The Federal and state income tax returns of the Company for 2022, 2021, and 2020 are subject to examination by the Internal Revenue Service and state taxing authorities for three (3) years from the date filed.

Fair value of financial instruments. The Company measures its financial and non-financial assets and liabilities, as well as makes related disclosures, in accordance with FASB Accounting Standards Codification No. 820, Fair Value Measurement (“ASC 820”), which provides guidance with respect to valuation techniques to be utilized in the determination of fair value of assets and liabilities. Approaches include, (i) the market approach (comparable market prices), (ii) the income approach (present value of future income or cash flow), and (iii) the cost approach (cost to replace the service capacity of an asset or replacement cost). ASC 820 utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices that are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

Level 3: Unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one more significant inputs or significant value drivers are unobservable.

From time to time, our financial instruments include cash, accounts payable and accrued expenses, convertible notes, lines of credit, and credit cards.

Research and Development - Research and development costs are charged to operations as they are incurred. Legal fees and other direct costs incurred in obtaining and protecting patents are also expensed as incurred, due to the uncertainty with respect to future cash flows resulting from the patents. For the three and ~~six~~nine months ended ~~December~~March 31, ~~2022~~2023 and ~~2021~~2022, the Company recorded $-0- and $712,~~212~~180 and $2209,~~180~~800 and $~~270~~374,~~212~~484 in research and development costs, respectively.

Basic and Diluted Loss per Common Share - Basic loss per common share excludes dilution and is computed by dividing loss available to common stockholders by the weighted average number of common shares outstanding during the period of computation. Diluted loss per share gives effect to all potential dilutive common shares outstanding during the period of compensation. Diluted income (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the net income of the Company, subject to anti-dilution limitations.

Schedule of anti-dilutive shares

Basis of conversion

Dilution

~~2022~~2023

~~2021~~2022

Series A Convertible

688 shares outstanding

1 share A: 2 shares

1,376

Series B Convertible

9,938 shares outstanding

1 share B: 2 shares

19,876

Series C Convertible

6,838,889 shares outstanding

1 share C: 10 shares

68,388,890

Series D Convertible

425,000 shares outstanding

1 share D: 10 shares

4,250,000

Series E Convertible

4,000,000 shares outstanding

1 share E: 100 shares

400,000,000

472,660,142

The Company has incurred losses for the past two years, as a result, the basic and diluted share bases will be presented as the same. For the three-month periods ended ~~December~~March 31, ~~2022~~2023 and ~~2021~~2022, the Company incurred losses of ($0.~~00035~~00034) and ($0.~~00036~~00731) per basic share and diluted share, respectively. For the ~~six~~nine months ended ~~December~~March 31, ~~2022~~2023 and ~~2021~~2022, the Company incurred losses of ($0.~~00085~~00118) and ($0.~~00980~~01487) per basic share and diluted share, respectively.

1115

Recent Accounting Pronouncements

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes. The update is intended to simplify the current rules regarding the accounting for income taxes and addresses several technical topics including accounting for franchise taxes, allocating income taxes between a loss in continuing operations and in other categories such as discontinued operations, reporting income taxes for legal entities that are not subject to income taxes, and interim accounting for enacted changes in tax laws. The new standard is effective for fiscal years beginning after December 15, 2020; however, early adoption is permitted. The Company does not expect the adoption of this standard have a material impact on the consolidated financial statements.

In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU 2020-06), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Among other changes, ASU 2020-06 removes from U.S. GAAP the liability and equity separation model for convertible instruments with a cash conversion feature, and as a result, after adoption, entities will no longer separately present in equity an embedded conversion feature for such debt. Similarly, the embedded conversion feature will no longer be amortized into income as interest expense over the life of the instrument. Instead, entities will account for a convertible debt instrument wholly as debt unless (1) a convertible instrument contains features that require bifurcation as a derivative under ASC Topic 815, Derivatives and Hedging, or (2) a convertible debt instrument was issued at a substantial premium. Among other potential impacts, this change is expected to reduce reported interest expense, increase reported net income, and result in a reclassification of certain conversion feature balance sheet amounts from shareholders’ equity to liabilities as it relates to the Company’s convertible senior notes. Additionally, ASU 2020-06 requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share (EPS), which is consistent with the Company’s accounting treatment under the current standard. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted for fiscal years beginning after December 15, 2020, and can be adopted on either a fully retrospective or modified retrospective basis. The Company early adopted the ASU on July 1, 2022, the beginning of its fiscal year.

The Company reviewed all recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA and the SEC, and they did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

Note 3 – Going Concern

The accompanying consolidated financial statements for the three and ~~six~~nine months ended ~~December~~March 31, ~~2022~~2023 and ~~2021~~2022 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. As at ~~December~~March 31, ~~2022~~2023 and June 30, 2022, the Company has shown losses for the last two years and has an accumulated deficit of ($4041,~~711~~234,~~940~~081) and ($39,423,382), respectively.

During the ~~six~~nine months ended ~~December~~March 31, ~~2022~~2023, ~~the~~ the Company has net cash used in operating activities of $1,~~055~~161,~~780~~977 as well as stock compensation non-cash expense of $~~195~~286,~~266~~600 and a net ~~loss~~ loss of $1,~~288~~810,~~558~~699. The Company had net cash flow of $1,~~040~~117,~~191~~255 from financing activities in the ~~six~~nine months ended ~~December~~March 31, ~~2022~~2023, which ~~resulted~~ resulted in a working capital deficit of $2,~~430~~953,~~294~~764 as of ~~December~~March 31, ~~2022~~2023. If the Company is unable to raise additional adequate capital, it could be forced to cease operations.

Management believes that the Company’s capital requirements will depend on many factors including the success of the Company’s development efforts and its efforts to raise capital. Management also believes the Company needs to raise additional capital for working capital purposes. There can be no assurance that the Company will be able to obtain the additional capital resources necessary to implement its business plan or that any assumptions relating to its business plan will prove accurate.

These factors raise substantial doubt about our ability to continue as a going concern for a period of 12 months from the issue date of this report. The consolidated financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

1216

Note 4 – Inventory, Prepaid Inventory, and Prepaid Expenses

The Company maintains some inventory in its warehouse and purchases some of its inventory overseas. Inventories, except for stock in transit, are stated at lower of cost and net realizable value. Stock in transit is valued at cost comprising invoice value plus other charges thereon. Net realizable value is the estimated selling price in ordinary course of business less estimated costs of completion and selling expenses. The quantity of inventory may vary from time to time depending on the delivery schedule of overseas shipments.

As of ~~December~~March 31, ~~2022~~2023 and June 30, 2022, the ~~Company~~ Company had $6433,~~170~~281 and $7,064 in inventory, respectively, as well as $-0- and $62,040 in prepaid inventory, respectively.

As of ~~December~~March 31, ~~2022~~2023 and June 30, 2022, the ~~Company~~ Company had $~~3,900~~-0- and $-0- in prepaid expenses, respectively.

Note 5 – Property and Equipment

The Company has $20,000 in furnishings, $19,689 in office computers and equipment, and capitalized software development costs of $45,900 which are fully depreciated. On August 30, 2021, the Company purchased its dealer portal for $50,000 for internal use, amortized over 60 months. On September 26, 2022, the Company purchased used furniture for $9,442 for its office warehouse located in Mequon, WI and the Company is depreciating the used furniture over 36 months.

As of ~~December~~March 31, ~~2022~~2023 and June 30, 2022, the ~~Company~~ Company recorded $4541,~~262~~976 and $41,651 in net Property and Equipment, respectively:

Schedule of property, plant and equipment
	December 31, 2022			June 30, 2022
	March 31, 2023			June 30, 2022
Furniture	$	29,442		$	20,000
Office computers, equipment, software		19,689			19,689
Software development costs		45,900			45,900
Dealer Portal		50,000			50,000
Property, plant, and equipment		145,031			135,589
Less accumulated depreciation		(99103,~~769~~055	)		(93,938	)
Net property, plant, and equipment	$	4541,~~262~~976		$	41,651

Note 6 – Accounts payable and accrued expenses and liabilities

The Company recorded Accounts Payable of $4566,~~861~~081 and $57,940, directly related to operating costs, as of ~~December~~March 31, ~~2022~~2023 and June 30, 2022, respectively.

Accrued expenses and other current liabilities are expenses that have been incurred but not yet paid, and mainly include legal fees, audit fees and other professional fees as well as accrued interest in connection with the credit line and notes payable. The Company recorded $~~404~~446,~~021~~650 and $374,278 in accrued expenses and other current liabilities as of ~~December~~March 31, ~~2022~~2023 and June 30, 2022, respectively.

Note 7 – Notes Payable and Note payable-other

Notes payable consists of notes payable from our subsidiary, notes payable-other, convertible notes payable, notes payable for stock purchases under Reg A, short term notes payable, and notes payable-BOAPIN portal, as follows:

Schedule of short term notes payable
	December 31, 2022		June 30, 2022
	March 31, 2023		June 30, 2022
Notes from subsidiary	$	~~159~~158,~~134~~333	$	174,243
Notes payable – Reg A deposits		138,856		138,856
Short term bridge loan		100,000		100,000
Total Notes Payable	$	397,~~990~~189	$	413,099

Notes Payable - subsidiary

The Company has various loans and credit lines outstanding. The credit line carries an interest rate of 6.24%. The bank loans carry interest rates varying between 9.24% – 10.90%.

Schedule of notes payable
	December 31, 2022		June 30, 2022
	March 31, 2023		June 30, 2022
Wells Fargo Loan	$	8,770	$	8,770
On Deck Loan		139,569		139,569
Susquehanna Salt Loan		–		10,500
Prosper Loans		9,994		9,994
Marcus Loan		~~801~~–		5,410
Total Notes from Subsidiary (See Table Above)	$	~~159~~158,~~134~~333	$	174,243

Short term bridge loan - COHEN

On July 31, 2020, the Company secured a $500,000 short term bridge loan from an unaffiliated individual (“COHEN”), 12% interest, due and payable October 20, 2020. The loan is currently in default and continues to accrue interest at 12%.

On August 19, 2021, the Company repaid $300,000 of principal and in November 2021, the Company repaid an additional $100,000 in principal.

At ~~December~~March 31, ~~2022~~2023 and June 30, 2022, the Company recorded a short term note payable of $100,000, respectively. During the three and ~~six~~nine months ended ~~December~~March 31, ~~2022~~2023, the Company expensed $3,000 and $69,000 in interest expense, respectively. During the three and ~~six~~nine months ended ~~December~~March 31, ~~2021~~2022, the Company expensed $43,~~668~~000 and $1518,649, respectively. The accrued interest payable at ~~December~~March 31, ~~2022~~2023 and June 30, 2022 was $8285,677 and $76,677, respectively. ~~These~~ These notes are included in the Notes payable total on the Company’s balance sheet.

Note payable – stock purchases under Reg A

In March 2021 and June 2021, the Company accepted payments of $115,000 for stock purchases under the Reg A filing from two unaffiliated investors, pending blue sky registrations in two states. In July 2021, the Company accepted loans totaling $20,000 from two unaffiliated investors pending blue sky registrations in two additional states. The notes mature in one year and bear interest at 5%. The full amount of the note plus interest is convertible at the Reg A fixed price of $0.01, when possible.

In October 2021, the Company accepted a loan of $5,000 from two unaffiliated investors pending blue sky registrations in two additional states.

At ~~December~~March 31, ~~2022~~2023 and June 30, 2022, the Company has recorded $138,856 and $138,856 in notes payable for stock purchases under Reg A. During the three and ~~six~~nine months ended ~~December~~March 31, ~~2022~~2023, the Company recorded interest expense of $2,700 and $58,~~400~~100, respectively. During the three and ~~six~~nine months ended ~~December~~March 31, ~~2021~~2022, the Company recorded interest expense of $2,700 and $8,736, respectively. The accrued interest payable at ~~December~~March 31, ~~2022~~2023 and June 30, 2022 was $1720,~~707~~407 and $12,307, respectively. These notes are included in the Notes payable total on the Company’s balance sheet.

Note Payable – Other

In November, 2016, the Company secured a $50,000 loan from a party related to a previous CEO, bearing 4% interest, the loan maturing after a successful money raise of $1,000,000 through the acquisition of convertible notes payable (See BENZA, D2CF). The $1,000,000 fundraising was never completed, and the Company has been accruing interest on the original principal amount at 4% since inception. On July 22, 2021, the Company filed suit for damages and the party filed a countersuit on August 26, 2021. There has been no resolution to this situation, and we continue to accrue interest at the face amount.

During the three and ~~six~~nine months ended ~~December~~ March 31, ~~2022~~ 2023, the Company recorded interest expense of $500 and $1,~~000~~500, respectively. During the three and ~~six~~nine months ended ~~December~~March 31, ~~2021~~2022, ~~the~~ the Company recorded interest expense of $500 and $1,000, respectively. The accrued interest payable at ~~December~~March 31, ~~2022~~2023 and June 30, 2022 was $12,~~282~~782 and $11,282, respectively. These notes are included in the Notes payable total on the Company’s balance sheet.

Convertible note payable – BENZA, D2CF

On March 1, 2016 and March 3, 2016, the Company closed a private placement of debt and received an aggregate of $612,500 by issuing $13,750 (“B2CF”) and $660,000 (“BENZA”) unsecured convertible notes (“convertible notes”) and warrants to two investors, net of original issue discount of $61,250 per the subscription agreements, maturity at March 1, 2017 and March 3, 2017, respectively, bearing 0% interest and 18% default interest. The notes are currently in default, and all outstanding warrants have expired.

The Company is currently in negotiations to settle the $660,000 BENZA loan with principles in the company, although there has been no settlement to date.

As of ~~December~~March 31, ~~2022~~2023 and June 30, 2022, the ~~Company~~ Company reported $673,750 and $673,750 in convertible notes payable, respectively.

Convertible Note – Leonite Capital, LLC

On December 5, 2022, the Company, (the “Borrower”), received $250,000 on issuing the first tranche of $1,000,000 senior secured convertible note (“Leonite Convertible Note”) from Leonite Capital, LLC, a Delaware limited liability company (“Leonite”), net of an original issue discount of $62,500. The term of the convertible note is fifteen months from the date of closing and matures on March 5, 2024. The Company is required to only pay interest expense on a monthly basis for the first six months of the term. During the three and ~~six~~nine months ended ~~December~~March 31, ~~2022~~2023, ~~the~~ the Company accrued $210,~~382~~839 of interest expense related to the convertible notes. The Company will begin making nine equal amortization ~~payments~~ payments of $34,722 commencing in the month of July 2023. The ~~last three months of the scheduled amortization payments are recorded as long-term convertible notes totaling $104,167 on the~~ Company’s ~~balance sheet at December 31, 2022. The Company~~ is required to issue 15,000,000 commitment shares valued at $78,000 to Leonite of which $28,064 was charged to common stock to be issued. In addition, the Company also paid Leonite $10,000 for legal fees incurred by Leonite related to this transaction. The commitment shares and the legal fees have been recorded as deferred debt issuance costs totaling $59,936. The Company amortized $311,~~480~~987 and $15,467 of the deferred debt issuance costs during the three and ~~six~~nine months ended ~~December~~March 31, 2023, ~~2022~~respectively, and the Company also amortized $312,~~629~~500 and $16,129 of the original issue discount during the three and ~~six~~nine months ended ~~December~~March 31, ~~2022~~2023, respectively. The Leonite Convertible Note bears annual interest at the greater of 10% or the Prime Rate plus three percent (3%). The Leonite Convertible Note is convertible into shares of the Company’s common stock at a conversion price ~~equal~~ equal to $0.007 per share with anti-dilution features.

Credit line – MediPendant New York Inc.

On September 30, 2014, our subsidiary entered into a line of credit with Medi Pendant New York, Inc. (“MNY”), which is partially owned by a principal of its subsidiary. Under the line of credit agreement, the Company will be able to borrow up to $500,000 with the rate of interest of 6.5% per annum. The maturity date of the credit line is September 30, 2017, with a one-year extension to September 30, 2018. On January 31, 2015, the limit on the line of credit was increased to $500,000 with same interest rate and due date. The company issued 200,000 shares of common stock to one of the owners of MNY as consideration for the increase of line of credit. These shares were issued on October 19, 2015 and value at $28,000 which was the fair market value at the grant date.

As of ~~December~~March 31, ~~2022~~2023 and June 30, 2022, the ~~Company~~ Company has recorded $397,500 and $397,500 in outstanding line of credit balance, respectively.

Debt settlement – On Deck, Susquehanna, MCA Cure

In 2019, our subsidiary engaged MCA CURE to negotiate settlements with two creditors: On Deck and Susquehanna Salt, noted in the table above. The Company ceased paying the loan payments and paid to MCA Cure $43,875 in 2019 and $47,000 in 2020, at which point the Company was contacted and MCA Cure assured they had enough funds to negotiate with the creditors. In 2020, the Company discovered MCA Cure had not performed when bank accounts were levied for $33,705 by the creditors. $18,705 was subsequently refunded by the collection firm. On September 30, 2020, the bank accounts were again levied for additional funds. Currently the Company has a settlement agreement in place with Susquehanna Salt Loan, and has booked a reserve against the $90,875 funds paid to MCA Cure. The Company has hired an attorney and is making every effort to recover funds and damages from MCA Cure. To date, there has been no resolution to the situation. As of ~~December~~March 31, ~~2022~~2023 and June 30, 2022, the Company recorded $-0- and $-0- in prepaid fund to MCA Cure, and $139,569 and $139,569 in indebtedness to On Deck. The Company negotiated a settlement with Susquehanna Salt for the loan balance, and as of ~~December~~March 31, ~~2022~~2023 and June 30, 2022, the Company recorded indebtedness to Susquehanna Salt of $-0- ~~and~~ and $10,500, respectively.

15Note 10 – Shareholders’ Deficit

Note 10 – Stockholders’ Deficit

Preferred Stock:

The Company is currently authorized to issue 25,000,000 shares of preferred stock, par value of $0.0001.

Series A Convertible Preferred Stock: The Company is currently authorized to issue up to 100,000 shares of Series A Convertible Preferred Stock, par value $0.0001 per share, convertible at a ratio of 1 share of Series A Convertible Preferred Stock for 2 shares of common stock. These shares have no voting rights. As of ~~December~~March 31, ~~2022~~2023 and June 30, 2022, 688 shares of Series A Convertible Preferred Stock were issued and outstanding, respectively.

Series B Convertible Preferred Stock: The Company is currently authorized to issue up to 62,500 shares of Series B Convertible Preferred Stock, par value $0.0001 per share, convertible at a ratio of 1 share of Series B Convertible Preferred Stock for 2 shares of common stock. These shares have voting rights and vote on an “as converted” basis in actions required to have Series B Preferred Stockholder approval. As of ~~December~~March 31, ~~2022~~ 2023 and June 30, 2022, 9,938 shares of Series B Convertible Preferred Stock were issued and outstanding, respectively.

Series C Convertible Preferred Stock: The Company is currently authorized to issue up to 6,944,445 shares of Series C Convertible Preferred Stock, par value $0.0001 per share, convertible at a ratio of 1 share of Series C Convertible Preferred Stock for 10 shares common stock. These shares have voting rights and vote on an “as converted” basis on all matters submitted to our Stockholders for approval.

The Company issued 6,700,003 shares for the BOAPIN asset purchase; these shares were issued on September 1, 2020. As of ~~December~~March 31, ~~2022~~2023 and June 30, 2022, 6,838,889 shares of Series C ~~Convertible~~ Convertible Preferred Stock were issued and outstanding, respectively.

Series D Convertible Preferred Stock: The Company is currently authorized to issue up to 500,000 shares of Series D Convertible Preferred Stock, par value $0.0001 per share, convertible at a ratio of 1 share of Series D Convertible Preferred stock for 10 shares of common stock. These shares have voting rights and vote on an “as converted” basis in actions required to have Series D Preferred Stockholder approval. As of ~~December~~March 31, ~~2022~~ 2023 and June 30, 2022, 425,000 shares of Series D Convertible Preferred Stock were issued and outstanding, respectively.

Series E Convertible Preferred Stock: The Company is currently authorized to issue up to 4,000,000 shares of Series E Convertible Preferred Stock, par value $0.0001 per share, convertible at a ratio of 1 share of Series E Convertible Preferred Stock for 100 shares of common stock. Each of these shares carries a voting right equivalent to 10,000 shares of common stock. The Company may not issue any other shares with extended voting rights.

During the year ended June 30, 2021, as part of the change in control, 4,000,000 shares were returned to treasury to be canceled. In December 2020 the Company issued 1,000,000 shares of Series E Convertible Preferred Stock accrued in the prior year and issued 450,000 shares of Series E Convertible Preferred Stock to each of its two directors, 900,000 shares total, valued at $513,000 or $0.57 per share, accrued 100,000 shares of Series E Preferred stock to be issued to directors for services, valued at $57,000 or $.57 per share, all pricing based on the conversion of one share of Series E Convertible Preferred Stock for 100 shares of common stock and the price of the common stock on the date of accrual. During the year ended June 30, 2022, the Company issued 1,000,000 shares of Series E Convertible Preferred shares to each of its two directors for services, valued at $3,000,000 or $1.50 per share, and issued 50,000 shares to each of its two directors, previously accrued for at $57,000 or $0.57 per share. All shares were recorded at the quoted common stock price of the date of agreement or grant on an as-converted basis.

As of ~~December~~March 31, ~~2022~~2023 and June 30, 2022, 4,000,000 and 4,000,000 shares of Series E Convertible Preferred Stock were issued and outstanding, respectively.

Common Stock:

The Company is currently authorized to issue 3,000,000,000 shares of common stock, par value of $0.0001 per share.

During the ~~six~~nine months ended ~~December~~March 31, ~~2022~~2023, ~~the~~ the Company issued 69,~~950~~612,~~000~~500 shares to its officers as compensation (of which 68,~~162~~825,~~500~~000 shares were granted in a prior period), valued at at $~~101~~124,~~262~~108 or $.~~0146~~0129 per share; 5,000,000 shares to an employee as compensation, valued at $66,000 or $0.0132 per share; 21,500,000 shares issued to investors, valued at $215,000 or $0.01 per share; and 520,000,000 shares issued for services, valued at $89164,000 or $0.~~0178~~0082 per share. All shares were recorded at the stock price of the date of agreement or grant.

During the ~~six~~nine months ended ~~December~~March 31, ~~2022~~2023, ~~the~~ the Company also recorded shares to be issued of 610,~~950~~425,000 to its officers as compensation, valued at $6985,~~616~~949 or $.~~0100~~0082 per share, and ~~shares~~ shares to be issued of 65,000 to an employee as compensation, valued at $651 or $0.0100 per share. In addition, the Company recorded commitment shares to be issued of 15,000,000 valued at $78,000 or $0.0052 per share to Leonite Capital LLC in connection with the issuance of convertible notes on December 5, 2022. All shares were recorded at the stock price of the date of agreement or grant.

During the ~~six~~nine months ended ~~December~~March 31, ~~2022~~2023, ~~the~~ the Company received proceeds totaling $~~629~~639,500 in connection with the issuance of 6870,262,500 shares of common stock. Of the total proceeds received, $325,000 in proceeds was received from the issuance of 37,812,500 common shares that were issued under the terms of subscription agreements at the contract price of $0.008. ~~The~~Proceeds ~~remaining proceeds~~ of $304,500 ~~was~~were received from the issuance of 30,450,000 common shares that were issued under the terms of subscription agreements at the contract price of $0.01, and proceeds of $10,000 was received from the issuance of 2,000,000 common shares that were issued under the terms of a subscription agreement at the contract price of $0.005. These shares are yet to be issued as of ~~December~~ March 31, ~~2022~~2023.

For the ~~six~~nine months ended ~~December~~March 31, ~~2021~~2022, the Company issued 7,000,000 common shares to employees and contractors for contractual bonuses, valued at $75,000 or $.0107 per share, accrued 5,000,000 shares in bonuses to be paid, valued at $52,500 or $.0105 per share, issued 66,418,431 for $260,000 in debt, $9,954 in interest, and $9,000 in fees, valued at $677,707, accrued 450,000 to be issued for management compensation, valued at $4,920 an average of $.0109 per share, and sold 340,000,000 shares under the Reg A at $3,400,000 or $.01 per share, 10,000,000 of which were accrued to be issued as of ~~December~~March 31, ~~2021~~2022. All shares were recorded at the quoted stock price of the date of agreement or grant.

As of ~~December~~March 31, ~~2022~~2023 and June 30, 2022, the ~~Company~~ Company has 1,~~531~~549,~~592~~255,~~608~~108 and 1,493,142,608 shares of common stock issued and outstanding, respectively.

Note 11 – Related Party Transactions

Note payable – BOAPIN purchase

In August 2020, and effective as of June 30, 2020, the Company purchased the BOAPIN portal, including all software, licensing, and ownership rights from Hypersoft Ventures, Inc., a related party through common ownership, for $800,200, which includes six million seven hundred thousand three (6,700,003) shares of Series C Convertible Preferred stock, valued at $375,200 or $0.056 per share, based on the conversion of one share of Series C Preferred stock for 10 shares of common stock and the stock price on the date of the transaction, and a note payable for $425,000, bearing eight percent (8%) interest with no prepayment or delinquency clauses.

As of ~~December~~March 31, ~~2022~~2023 and June 30, 2022, the ~~Company~~ Company has recorded a Note payable-BOAPIN of $170,000 and $170,000, respectively. During the three and ~~six~~nine months ended ~~December~~March 31, ~~2022~~ 2023, the Company recorded interest expense of $3,~~428~~353 and $610,~~856~~209, respectively. During the three and ~~six~~nine months ended ~~December~~March 31, ~~2021~~2022, the Company recorded interest expense of $6,521 and $15,090, respectively. The accrued interest balance at ~~December~~March 31, ~~2022~~2023 and June 30, 2022 was $5659,~~271~~ 624 and $49,415, respectively.

Related party debt, net

From time to time, the Company received ~~funds~~ funds from related parties for day-to-day operations. These are short-term loans which bear no interest, and the Company expects to repay these loans by the end of the fiscal year following the year in which the short-term loan was made. The following table reflects the composition of the related party debt, net balance at ~~December~~March 31, ~~2022~~2023 and June 30, 2022. The Company had a receivable from certain management employees totaling $155,800 at June 30, 2022. The total receivable balance was subsequently collected by the Company on September 27, 2022.

Schedule of related party transactions
	December 31,		June 30,
	March 31,		June 30,
	2022		2022
	2023		2022
Related parties – subsidiary	$	177,320	$	202,875
Due from related parties		–		(155,800	)
Accrued salaries, bonus, fees		63330,~~334~~932		10,965
Total loans from related parties, net	$	~~240~~508,~~654~~252	$	58,040

Note 12 – Commitments and contingencies

Legal Matters

From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business.

1) Wearable Health Solutions, Inc. v. Barry Honig, GRQ Consultants Inc., Benza Pharma LLC and John Does 1-10, Supreme Court of the State of New York County of New York, July 22, 2021. Company is disputing the validity of Notes from 3/2016 and seeking damages, reparations, and related costs. 2) GRQ Consultants, Inc. v. Wearable Health Solutions, Inc., Supreme Court of the State of New York, County of New York, August 26, 2021, Parties are seeking summary judgment of $50,000 plus accrued interest in response to lawsuit by Company regarding $50,000 loan from 11/2016. 3) Benza Pharma LLC, Sandor Capital, LP, and John Lemak v. Wearable Health Solutions, Inc., District Court, Clark County, Nevada, Parties are seeking summary judgment of $3,000,000 plus accrued interest in regards to convertible notes payable from March, 2016. The Company believes that there is a very low probability that it will pay this amount and as a result has not accrued for it on the Company’s balance sheet. ~~(See~~On ~~Note~~February ~~15)~~3, 2023, the plaintiffs in the case of Sandor Capital, LP and John Lemak v. Wearable Health Solutions, Inc., informed the Company that they would be discontinuing their legal action against the Company. 4) Medical Alarm Concepts LLC v. MCA Cure, LLC, Superior Court of New Jersey, Law Division, Morris County. Company is seeking return of payments for non-performance plus attorney fees and court costs. A settlement was reached between the parties whereby MCA Cure will pay an initial $10,000 and $6,500 each month until debt is satisfied in 2023 (See Note 14).

Commitments and Contingencies. The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows.

Note 13 – Office/Warehouse lease

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes the current accounting for leases and while retaining two distinct types of leases, finance and operating, (1) requires lessees to record a right of use asset and a related liability for the rights and obligations associated with a lease, regardless of lease classification, and recognize lease expense in a manner similar to current accounting, (2) eliminates most real estate specific lease provisions, and (3) aligns many of the underlying lessor model principles with those in the new revenue standard. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. For public companies, the new standard is effective for annual and interim periods in fiscal years beginning after December 15, 2018. For all other entities, including emerging growth companies, this standard is effective for annual reporting periods beginning after December 15, 2019, and interim periods within fiscal years beginning after December 2020.

The Company maintains its corporate office at 2901 W. Coast Highway, Suite 200, Newport Beach, CA 92663. The Company currently pays $175 a month for its office space and the term is month-to-month. The Company’s subsidiary maintained a warehouse office in Pennsylvania to facilitate inventory arrival and product shipment. The three-year lease at $1,100 per month expired on September 30, 2021, and was renewed for 12 months at $1,300 per month beginning October 1, 2021 and expiring on September 30, 2022. The subsidiary subsequently entered into a month-to-month arrangement with this office warehouse and then terminated the arrangement and vacated the facility as of December 31, 2022. The Company entered into a new three-year lease agreement on September 9, 2022 for new warehouse space located in Mequon, Wisconsin. The monthly rent for this new warehouse space is currently $1,325 per month for the first twelve months of the lease agreement. Expenditures for the ~~six~~nine months ending ~~December~~March 31, ~~2022~~ 2023 and ~~2021~~March 31, 2022 are as follows:

Schedule lease cost
	2022		2021
	2023		2022
Rent expense	$	1216,~~190~~270	$	712,~~700~~555

The Company leased a fulfillment center in the U.S., which was classified as an operating lease which subsequently expired on September 30, 2022. The Company determines if an arrangement qualifies as a lease at the lease inception. Operating lease liabilities are recorded based on the present value of the future lease payments over the lease term, assessed as of the commencement date. The Company’s real estate leases, which are for a fulfillment center, generally have a lease term between 3 and 5 years. The Company’s leases are comprised of fixed lease payments and also include executory costs such as common area maintenance, as well as property insurance and property taxes. The Company has elected to account for the lease and non-lease components as a single lease component for its real estate leases. Lease payments, which may include lease components and non-lease components, are included in the measurement of the Company’s lease liabilities to the extent that such payments are either fixed amounts or variable amounts based on a rate or index (fixed in substance) as stipulated in the lease contract. Any actual costs in excess of such amounts are expensed as incurred as variable lease cost.

The Company’s lease agreements generally do not specify an implicit borrowing rate, and as such, the Company utilizes its incremental borrowing rate by lease term, in order to calculate the present value of the future lease payments. The discount rate represents a risk-adjusted rate on a secured basis, and is the rate at which the Company would borrow funds to satisfy the scheduled lease liability payment streams commensurate with the lease term. The Company’s lease agreement for its warehouse space located in King of Prussia, Pennsylvania expired on September 30, 2022. The Company has terminated the month-to-month arrangement and has vacated the warehouse located in King of Prussia, Pennsylvania as of December 31, 2022. As a result, the Company entered into a new three-year lease agreement on September 9, 2022 for new warehouse space located in Mequon, Wisconsin. The monthly rent which commenced in September 2022 is $1,325 per month and increases approximately 3% annually thereafter. The discount rate used was determined based on the available data as of the lease commencement date. The Right-of-use (“ROU”) asset value added as a result of this new lease agreement was $43,058. The Company’s ROU asset and lease liability accounts reflect the inclusion of this new lease agreement on the Company’s consolidated balance sheet as of December 31, 2022.23

Certain of the Company’s lease agreements, primarily related to real estate, include options for the Company to either renew (extend) or early terminate the lease. Leases with renewal options allow the Company to extend the lease term typically between 1 and 3 years. Renewal options are reviewed at lease commencement to determine if such options are reasonably certain of being exercised, which could impact the lease term. When determining if a renewal option is reasonably certain of being exercised, the Company considers several factors, including but not limited to, significance of leasehold improvements incurred on the property, whether the asset is difficult to replace, or specific characteristics unique to the particular lease that would make it reasonably certain that the Company would exercise such option. In most cases, the Company has concluded that renewal and early termination options are not reasonably certain of being exercised by the Company (and thus not included in the Company’s ROU asset and lease liability) unless there is an economic, financial or business reason to do so.

19For the nine months ended March 31, 2023, total operating lease cost was $16,270 and is recorded in general and administrative expenses, dependent on the nature of the leased asset. The operating lease cost is recognized on a straight-line basis over the lease term. The following summarizes (i) the future minimum undiscounted lease payments under non-cancelable lease for each of the next four years and thereafter, incorporating the practical expedient to account for lease and non-lease components as a single lease component for our existing real estate leases, (ii) a reconciliation of the undiscounted lease payments to the present value of the lease liabilities recognized, and (iii) the lease-related account balances on the Company’s consolidated balance sheet, as of March 31, 2023:

For the six months ended December 31, 2022, total operating lease cost was $12,190 and is recorded in general and administrative expenses, dependent on the nature of the leased asset. The operating lease cost is recognized on a straight-line basis over the lease term. The following summarizes (i) the future minimum undiscounted lease payments under non-cancelable lease for each of the next four years and thereafter, incorporating the practical expedient to account for lease and non-lease components as a single lease component for our existing real estate leases, (ii) a reconciliation of the undiscounted lease payments to the present value of the lease liabilities recognized, and (iii) the lease-related account balances on the Company’s consolidated balance sheet, as of December 31, 2022:

Schedule of future lease payments
Fiscal Year Ending June 30,

2023	$	3,975
2024		16,250
2025		16,670
July & August 2025		2,790
Total future minimum lease payments		39,685
Less imputed interest		(3,935	)
Total present value of future minimum lease payments	$	35,750

Schedule of future lease payments
Schedule of balance sheet related leases
Fiscal Year Ending June 30,
As of March 31, 2023
2023	$	7,950
Operating lease right-of-use assets	$	35,505
2024		16,250
Accrued lease liability		13,643
2025		16,670
Long-term lease liability		22,107
July & August 2025		2,790
	$	35,750
Total future minimum lease payments		43,660
As of March 31, 2023
Less imputed interest		(4,734	)
Weighted Average Remaining Lease Term		2.42 years
Total present value of future minimum lease payments	$	38,926
Weighted Average Discount Rate		8.44%

Schedule of balance sheet related leases
As of December 31, 2022
Operating lease right-of-use assets	$	38,786
Accrued lease liability		13,256
Long-term lease liability		25,670
	$	38,926
As of December 31, 2022
Weighted Average Remaining Lease Term		2.67 years
Weighted Average Discount Rate		8.44%

Note 14 – Other income - settlement

Settlement

In 2019, the Company engaged MCA Cure to ~~negotiate~~ negotiate settlements with two note holders, and paid MCA Cure a total of $97,625. In 2020, the Company discovered MCA Cure had not performed when bank accounts were levied for $33,705 and $18,705, being subsequently refunded, and engaged an attorney to recover funds. Currently the Company has a settlement agreement in place with Susquehanna Salt Loan and has hired an attorney to recover funds and damages from MCA Cure. In February 2022, a settlement was reached with MCA Cure for fees and attorney costs of $105,125, amortized at 1.5%, by which the Company would receive an initial payment of $10,000, and $6,500 monthly until the debt is satisfied in May 2023, with stipulations for any potential default. MCA Cure ceased making payments to the Company in the three -month ~~period~~ periods ended December 2022 and March 31, 2023, and as a result the Company is ~~currently in the process of~~ reopening its legal case against MCA Cure and an arbitration hearing has been scheduled for June 22, 2023.

For the ~~six~~nine months ended ~~December~~March 31, ~~2022~~2023 and ~~2021,~~ 2022, the Company recorded $19,500 and $-0- in other income related to this settlement agreement, respectively.

Note 15 – Subsequent Events

The Company evaluated events that have occurred after the balance sheet date but before the financial statements are issued and determined that there are no material events that are required to be disclosed.

On ~~January~~April 274, 2023, the Company ~~terminated~~issued ~~the~~2,000,000 ~~employment~~shares ofvalued ~~Jennifer Loria~~at $24,000 or $0.012 per share to a computer consultant. These shares were previously accrued for by the ~~Chief~~Company ~~Operating~~in ~~Officer~~a ofprior period and are included in the Company’s ~~operating~~balance ~~subsidiary,~~sheet ~~Medical~~line ~~Alarm~~item ~~Concepts~~labeled “Common stock to be issued” at March 31, ~~LLC~~2023. These shares were recorded at the stock price of the date of agreement or grant.

On ~~February~~May 35, 2023, the ~~plaintiffs~~Company received $50,000 in ~~the~~proceeds ~~case~~from ofthe issuance ~~Sandor~~of ~~Capital~~10,000,000 LPshares ~~and~~at ~~John Lemak v~~$0.005 ~~Wearable~~pursuant ~~Health~~to ~~Solutions,~~the ~~Inc.,~~Reg ~~informed~~A ~~the~~offering ~~Company~~terms ~~that~~and ~~they~~conditions. ~~would~~The beCompany ~~discontinuing~~incurred ~~their~~$8,000 in legal ~~action~~ ~~against~~fees ~~the~~related to ~~Company~~this transaction.

On ~~February~~May 710, 2023, the Company ~~issued~~entered 2into a severance and settlement agreement with Jennifer Loria,~~662~~ the Company’s former Chief Operating Officer of its wholly-owned subsidiary Medical Alarm Concepts LLC. The severance and settlement agreement includes payments totaling $35,~~500~~000 ~~shares~~for ~~valued~~accrued bonus which will be paid in seven (7) monthly installments at $5,000 per installment. In addition, the Company will also pay severance of $2815,~~846~~000 orover a three (3) month period of $~~0.011~~5,000 per ~~share~~month toand ~~certain~~$15,000 ~~members~~in legal fees also payable in three monthly installments of $5,000. ~~management~~Lastly, the Company will reimburse Ms. ~~These~~Loria ~~shares~~on ~~were~~a ~~recorded~~monthly atbasis ~~the~~for ~~stock~~her ~~price~~medical ofinsurance ~~the~~premiums ~~date~~for ofa ~~agreement~~period orof twelve ~~grant~~months which approximates $14,000 in aggregate for the twelve months.

20On October 24, 2022 the Company and its transfer agent were named in an action in the Supreme Court of the State of New York by Acquarlaro Corp. claiming monetary damages and seeking an injunction ordering the Company’s transfer agent to transfer 56 million shares of its common stock allegedly belonging to Acqualaro Corp. to an individual. On October 26, 2022 an amended complaint was filed and on December 5, 2022 the Company filed a motion to dismiss the amended complaint. On April 13, 2023 the Court granted the Company’s motion and dismissed the amended complaint with leave for the plaintiff to refile. On April 26, 2023 the plaintiff filed a second amended complaint against the Company and adding Mr. Pizzino as a defendant. On May 8, 2023 Acqualaro filed a notice of appeal of the decision dismissing the first amended complaint.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Forward Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements. For this purpose, any statements contained in this Report that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking information includes statements relating to future actions, prospective products, future performance or results of current or anticipated products, sales and marketing efforts, costs and expenses, interest rates, outcome of contingencies, financial condition, results of operations, liquidity, business strategies, cost savings, objectives of management, and other matters. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “will,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “continue” and similar expressions or the negative of these similar terms. The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking information to encourage companies to provide prospective information about themselves without fear of litigation so long as that information is identified as forward-looking and is accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in the information.

These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions that we cannot predict. In evaluating these forward-looking statements, you should consider various factors, including the following: (a) those risks and uncertainties related to general economic conditions, (b) whether we are able to manage our planned growth efficiently and operate profitable operations, (c) whether we are able to generate sufficient revenues or obtain financing to sustain and grow our operations, (d) whether we are able to successfully fulfill our primary requirements for cash, which are explained below under “Liquidity and Capital Resources”. We assume no obligation to update forward-looking statements, except as otherwise required under the applicable federal securities laws. Unless stated otherwise, terms such as the “Company,” “Wearable Health,” “we,” “us,” “our,” and similar terms shall refer to Wearable Health Solutions, Inc., a Nevada corporation, and its subsidiaries.

Results of Operations

Results for the Three Months Ended ~~December~~ March 31, ~~2022~~ 2023, compared to the Three Months Ended ~~December~~March 31, ~~2021~~ 2022

Working Capital	~~December~~March 31, ~~2022~~2023 $			June 30, 2022 $
Cash	~~45,474~~	16,341		~~70,505~~	70,505
Current Assets		~~124~~52,~~750~~434			297,409
Current Liabilities		23,~~555~~006,~~044~~198			2,431,287
Working Capital (Deficit)		(2,~~430~~953,~~294~~764	)		(2,133,878	)

Cash Flows for the Six Months Ended:	December 31, 2022 $			December 31, 2021 $
Cash Flows for the Nine Months Ended:	March 31, 2023 $			March 31, 2022 $
Cash Flows used in Operating Activities	~~(1,055,780)~~	(1,161,977	)	~~(1,806,812)~~	(2,671,141	)
Cash Flows used in Investing Activities		(9,442	)		(50,000	)
Cash Flows provided by Financing Activities		1,~~040~~117,~~191~~255			2,~~609~~443,~~335~~684
Net (Decrease) Increase in Cash During Period		(25,031	)		752,523
Net Decrease in Cash During Period		(54,164	)		(277,457	)

Operating Revenues

The Company had revenues of $~~198~~193,~~039~~745 and $~~304~~212,~~524~~982 for the three months ended ~~December~~March 31, ~~2022~~2023 and ~~2021~~2022, respectively.

Cost of Revenues

The Company’s cost of revenues for the three months ended ~~December~~March 31, ~~2022~~2023 and ~~2021~~2022 was $99135,~~418~~307 and $~~143~~111,~~138~~434, respectively. Cost of revenues ~~decreased~~increased for the three months ended ~~December~~ March 31, ~~2022~~203 primarily due to ~~less~~increased hardware ~~purchases~~revenues in the three months ended March 31, 2023 as compared to 2022.

Gross Profit

The Company’s gross profit for the three months ended ~~December~~March 31, ~~2022~~2023 was $9858,~~621~~538, compared to $~~161~~101,~~386~~548 for the three months ended ~~December~~March 31, ~~2021~~2022. The decrease in the Company’s gross profit was due primarily to the ~~decrease~~increase in hardware revenues in ~~2022~~2023 as compared to ~~2021~~2022.

~~General~~Operating ~~and Administrative~~ Expenses

~~General~~Operating ~~and administrative~~ expenses consisted primarily of consulting fees, professional fees, and legal and accounting expenses. For the three months ended ~~December~~March 31, ~~2022~~2023, ~~general and~~operating ~~administrative~~ expenses were $~~618~~538,~~048~~180 compared to $~~768~~7,~~162~~483,638 for the three months ended ~~December~~March 31, ~~2021~~2022. The primary expenses for ~~the~~ the three months ended ~~December~~March 31, ~~2022~~2023 were salaries and wages and consulting and professional fees totaling $~~419~~377,~~934~~914; the primary ~~expenses~~ expenses for the three months ended ~~December~~March 31, ~~2021~~2022 were salaries and wages and consulting and professional fees totaling $~~460~~7,~~933~~081,234. The decrease in salaries and wages in the three months ended March 31, 2023 as compared to the three months ended March 31, 2022 is primarily attributable to lower stock-based compensation expense in the three months ended March 31, 2023 compared to the three months ended March 31, 2022.

Other (Income) Expense, net

The Company had other (income) expense, net for the three months ended ~~December~~March 31, ~~2022~~2023 and ~~2021~~2022 of $2042,~~364~~499 and $(~~237~~14,~~821~~507), respectively. Other (income) expense, net for the three months ended ~~December~~March 31, ~~2022~~2023 was all interest expense. Other (income) expense, net for the three months ended ~~December~~March 31, ~~2021~~2022 consisted ~~mainly~~ of ~~change in fair value of derivative instrument of~~ $~~(25~~23,~~102),~~000 in ~~gain~~payments onfor ~~debt extinguishment of $(80,313), gain on~~ settlement of ~~accounts payable~~the ofMCA ~~$(156,618),~~Cure complaint and interest expense of $248,~~212~~493.

Net loss

The net loss for the three months ended ~~December~~March 31, ~~2022~~2023, was $~~539~~522,~~791~~141 compared to $~~368~~7,~~985~~367,583 for the three months ended ~~December~~March 31, ~~2021~~2022.

Results for the ~~Six~~Nine Months Ended ~~December~~March 31, ~~2022~~2023, compared to the ~~Six~~Nine Months Ended ~~December~~March 31, ~~2021~~2022

Revenues

The Company had revenues of $~~414~~608,~~499~~244 and $~~606~~819,~~619~~601 for the ~~six~~nine months ended ~~December~~March 31, ~~2022~~2023 and ~~2021~~2022, respectively.

Cost of Revenues

The Company’s cost of revenues for the ~~six~~ nine months ended ~~December~~March 31, ~~2022~~2023 and ~~2021~~2022 was $~~219~~354,~~420~~627 and $~~345~~457,~~873~~307, respectively.

Gross Profit

The Company’s gross profit for the ~~six months~~nine months ended ~~December~~March 31, ~~2022~~2023 and ~~2021~~2022 was $~~195~~253,~~079~~617, and $~~260~~362,~~746~~294, respectively. The decrease in the Company’s gross profit in ~~2022 as~~2023 as compared to ~~2021~~2022 was due primarily to the decrease in ~~hardware sales~~revenues.

22Operating Expenses

~~General~~Operating expenses consisted primarily of consulting fees, professional fees, and ~~Administrative~~legal ~~Expenses~~and accounting expenses. For the nine months ended March 31, 2023, operating expenses were $2,012,711 compared to $12,448,296 for the nine months ended March 31, 2022. The primary expenses for 2023 were salaries and wages of $1,215,671; the primary expenses for 2022 were salaries and wages and consulting and professional services of $10,904,649 and $462,988, respectively. The decrease in salaries and wages in the nine months ended March 31, 2023 as compared to the nine months ended March 31, 2022 is primarily attributable to lower stock-based compensation expense in the nine months ended March 31, 2023 compared to the nine months ended March 31, 2022.

General and administrative expenses consisted primarily of consulting fees, professional fees, and legal and accounting expenses. For the six months ended December 31, 2022, general and administrative expenses were $1,474,531 compared to $4,967,662 for the six months ended December 31, 2021. The primary expenses for 2022 were salaries and wages of $857,285; the primary expenses for 2021 were salaries and wages and consulting and professional services of $3,806,466 and 381,374, respectively.

Other (Income) Expense, net

The Company had other (income) expense, net for the ~~six~~nine months ended ~~December~~March 31, ~~2022~~2023 and ~~2021~~2022 of $951,~~106~~605 and $165,~~804~~301, respectively. Other (income) expense, net for the ~~six~~nine months ended ~~December~~March 31, ~~2022~~2023 consisted of interest expense of $3072,~~106~~605 which was offset in part by $19,500 in settlement proceeds and interest income of $1,500. The Company had other income (expense), net for the ~~six~~nine months ended ~~December~~March 31, ~~2021~~2022 of $165,~~804~~301. Other (income) expense, ~~net~~ net for the ~~six~~nine months ended ~~December~~March 31, ~~2021~~2022 consisted of change in fair value of derivative instrument of $213,053, $(23,000) in payments for settlement of the MCA Cure complaint, gain on debt extinguishment of $(96,145), gain on settlement of accounts payable of $(156,616), and interest expense of $5668,~~512~~009.

Net loss

The net loss for the ~~six~~nine months ended ~~December~~ March 31, ~~2022~~ 2023, was $1,~~288~~810,~~558~~699 compared to $412,~~723~~091,~~720~~303 for the comparable period ended ~~December~~March 31, ~~2021~~2022.

Liquidity and Capital Resources

The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and implement its business plan. Since its inception, the Company has been funded by related parties through capital investment and borrowing of funds and through the sale of equity.

At ~~December~~March 31, ~~2022~~2023, the Company had total current assets of $~~124~~52,~~750~~434. Current assets consisted primarily of cash and inventory. At ~~December~~March 31, ~~2022~~2023, the Company had total current liabilities of $23,~~555~~006,~~044~~198 compared to $2,431,287, at June 30, 2022. Current liabilities consisted primarily of accounts payable, accrued liabilities and accrued compensation, notes payable and convertible notes.

We had negative working capital of $2,~~430~~953,~~294~~764 as of ~~December~~March 31, ~~2022~~2023.

Cash flow from Operating Activities

During the ~~six~~nine months ended ~~December~~March 31, ~~2022~~2023, ~~cash~~ cash used in operating activities was $(1,~~055~~161,~~780~~977) compared to $(12,~~806~~671,~~812~~141) for the same period ended ~~December~~March 31, ~~2021~~2022. The decrease in the amount of cash used in operating activities was primarily due to the decrease in the net loss resulting from the lower salaries and wages incurred in the ~~six~~nine months ended ~~December~~March 31, ~~2022~~2023 as compared to the ~~six~~nine months ended ~~December~~March 31, ~~2021~~2022.

Cash flow from Financing Activities

For the ~~six~~nine months ended ~~December~~March 31, ~~2022~~2023, cash provided by financing activities was $1,~~040~~117,~~191~~255 compared to $2,~~609~~443,~~335~~684 provided during the ~~six~~nine months ended ~~December~~March 31, ~~2021~~2022.

Quarterly Developments

None.

Subsequent Developments

~~The~~Resignation ~~Company~~of ~~evaluated~~Independent ~~events~~Registered ~~that~~Public ~~have~~Accounting ~~occurred after the balance sheet date but before the financial statements are issued and determined that there are no material events that are required to be disclosed.~~Firm

On April ~~January 27~~4, 2023, Assurance ~~the~~Dimensions, ~~Company~~Inc. ~~terminated~~ (the ~~employment~~“Auditor) ofinformed ~~Jennifer Loria~~Wearable Health Solutions, Inc. (the “Company”) ~~Chief~~of ~~Operating~~their ~~Officer~~formal ofresignation as the Company’s ~~operating~~independent ~~subsidiary,~~registered ~~Medical~~public ~~Alarm~~accounting ~~Concepts, LLC~~firm.

OnThe ~~February~~accounting 3,reports ~~2023,~~ of the ~~plaintiffs~~Auditor inon the ~~case~~Company’s ofconsolidated financial statements for fiscal years (“FY”) ended June 30, 2021 (“2021”) ~~Sandor~~and ~~Capital~~June 30, LP2022 (“2022”) did not contain any adverse opinion or disclaimer of opinion and ~~John~~were ~~Lemak~~not v.qualified ~~Wearable~~or ~~Health~~modified as ~~Solutions~~to uncertainty, ~~Inc.~~audit scope or accounting principle, ~~informed~~except that each report on the Company’s ~~that~~consolidated ~~they~~financial ~~would~~statements contained bean ~~discontinuing~~explanatory ~~their~~paragraph ~~legal action~~regarding ~~against~~the Company’s ability to continue as a going concern based on the Company’s significant working capital deficiency, significant losses and needs to raise additional funds in FY ended 2021 and 2022.

OnDuring ~~February~~FY 7ended 2021 and 2022 and the subsequent interim period through April 4, 2023, the ~~Company~~effective ~~issued~~date 2of the Auditors dismissal,~~662,500~~ there were (i) no disagreements ~~shares~~(as ~~valued~~that atterm ~~$28~~is defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions) between the Company and the Auditor on any matter of accounting principles or practices,~~846~~ financial statement disclosure, or ~~$0.011~~auditing ~~per~~scope ~~share~~or procedure, which, if not resolved to ~~certain~~the ~~members~~satisfaction of ~~management.~~the ~~These~~Auditors ~~shares~~would ~~were~~have ~~recorded~~caused at the ~~stock~~Auditor ~~price~~to ofmake reference thereto in its reports on the ~~date~~consolidated financial statements of ~~agreement~~the orCompany ~~grant~~for such years, and (ii) no “reportable events” (as that term is defined in Item 304(a)(1)(v) of Regulation S-K).

23The Company provided the Auditor a copy of this Report prior to its filing with the Securities and Exchange Commission (the “SEC”) and requested the Auditor to furnish the Company with a letter addressed to the SEC, stating whether or not it agrees with the statements made in this Item 4.01. A copy of the Auditor’s letter dated May 8, 2023, confirming its agreement with the disclosures in this Item 4.01 is attached as Exhibit 16.1 to our current report on Form 8-K that was filed on May 8, 2023, with the Securities and Exchange Commission.

New Independent Registered Public Accounting Firm

On April 27, 2023, the Company engaged RBSM, LLP (“RBSM”) as the Company’s independent registered public accounting firm, effective April, 27, 2022 (the “Engagement Date”). The Company’s Board of Directors approved the engagement with RBSM on April, 27, 2022.

During the two most recent fiscal years and through the Engagement Date, the Company did not consult with RBSM regarding either:

application of accounting principles to any specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company’s financial statements, and neither a written report was provided to the Company nor oral advice was provided that RBSM concluded was an important factor considered by the Company in reaching a decision as to the accounting, auditing or financial reporting issue; or

any matter that was either the subject of a disagreement (as defined in Regulation S-K, Item 304(a)(1) (iv) and the related instructions) or reportable event (as defined in Regulation S-K, Item 304(a)(1)(v)).

Other than the aforementioned the Company evaluated events that have occurred after the balance sheet date but before the financial statements are issued and determined that there are no material events that are required to be disclosed.

Going Concern

The accompanying unaudited interim consolidated condensed financial statements have been prepared in conformity with generally accepted accounting principles which contemplate continuation of the Company on a going-concern basis. The going concern basis assumes that assets are realized, and liabilities are extinguished in the ordinary course of business at amounts disclosed in the consolidated financial statements. The Company has incurred recurring losses from operations and has an accumulated deficit of $4041,~~711~~234,~~940~~081 as of ~~December~~March 31, ~~2022~~2023. The Company’s ability to continue as a going concern depends upon its ability to obtain adequate funding to support its operations through continuing investments of debt and/or equity by qualified investors/creditors, internally generated working capital and monetization of intellectual property assets. These factors raise substantial doubt about the Company’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Management is currently pursuing a business strategy which includes raising the necessary funds to finance the Company’s development and marketing efforts.

Critical Accounting Estimates and Policies

The preparation of financial statements in ~~conformity~~ conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Note 12 to the Financial Statements describes the significant accounting policies and methods used in the preparation of the Financial Statements. Estimates are used for, but not limited to, contingencies and taxes. Actual results could differ materially from those estimates. The following critical accounting policies are impacted significantly by judgments, assumptions, and estimates used in the preparation of the Financial Statements.

We are subject to various loss contingencies arising in the ordinary course of business. We consider the likelihood of loss or impairment of an asset or the incurrence of a liability, as well as our ability to reasonably estimate the amount of loss in determining loss contingencies. An estimated loss contingency is accrued when management concludes that it is probable that an asset has been impaired, or a liability has been incurred and the amount of the loss can be reasonably estimated. We regularly evaluate current information available to us to determine whether such accruals should be adjusted.

We recognize deferred tax assets (future tax benefits) and liabilities for the expected future tax consequences of temporary differences between the book carrying amounts and the tax basis of assets and liabilities. The deferred tax assets and liabilities represent the expected future tax return consequences of those differences, which are expected to be either deductible or taxable when the assets and liabilities are recovered or settled. Future tax benefits have been fully offset by a 100% valuation allowance as management is unable to determine that it is more likely than not that this deferred tax asset will be realized.

Recent Accounting Pronouncements

In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes, as part of its initiative to reduce complexity in accounting standards. The amendments in the ASU are effective for fiscal years beginning after December 15, 2020, including interim periods therein. Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not yet been issued. The Company is currently evaluating the effect, if any, that the ASU will have on its consolidated financial statements.

The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

Off Balance Sheet Arrangements

We have not entered into any 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 and would be considered material to investors.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

Not applicable to smaller reporting companies.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) that are designed to be effective in providing reasonable assurance that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission (the “SEC”), and that such information is accumulated and communicated to our management to allow timely decisions regarding required disclosure. Our Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, they concluded that our disclosure controls and procedures were not effective for the quarterly period ended ~~December~~March 31, ~~2022~~2023.

The following aspects of the Company were noted as potential material weaknesses:

1. We do not have written documentation of our internal control policies and procedures. Written documentation of key internal controls over financial reporting is a requirement of Section 404 of the Sarbanes-Oxley Act which is applicable to us for the period ended ~~December~~March 31, ~~2022~~2023; Management evaluated the impact of our failure to have written documentation of our internal controls and procedures on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness.

We do not as yet have sufficient resources in our accounting function, which restricts the Company’s ability to gather, analyze and properly review information related to financial reporting in a timely manner. In addition, due to our size and nature, segregation of all conflicting duties may not always be possible and may not be economically feasible. However, to the extent possible, the initiation of transactions, the custody of assets and the recording of transactions should be performed by separate individuals. Management evaluated the impact of our failure to have segregation of duties on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness.

We have inadequate controls to ensure that information necessary to properly record transactions is adequately communicated on a timely basis from non-financial personnel to those responsible for financial reporting. Management evaluated the impact of the lack of timely communication between non–financial personnel and financial personnel on our assessment of our reporting controls and procedures and has concluded that the control deficiency represented a material weakness.

Certain control procedures were unable to be verified due to performance not being sufficiently documented. As an example, some procedures requiring review of certain reports could not be verified due to there being no written documentation of such review. Management evaluated the impact of its failure to maintain proper documentation of the review process on its assessment of its reporting controls and procedures and has concluded deficiencies represented a material weakness.

In designing and evaluating disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute assurance of achieving the desired objectives. Also, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs.

Changes in Internal Controls

Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that no changes occurred in the Company’s internal controls over financial reporting during the quarter ended ~~December~~March 31, ~~2022~~2023, that has materially affected, or is reasonably likely to materially affect, the Company’s internal controls over financial reporting.

2632

PART II – OTHER INFORMATION

Item. 1. Legal Proceedings.

	1)	Wearable Health Solutions, Inc. v. Barry Honig, GRQ Consultants Inc., Benza Pharma LLC and John Does 1-10, Supreme Court of the State of New York County of New York, July 22, 2021. Company is disputing the validity of Notes from 3/2016 and seeking damages, reparations, and related costs.

	2)	GRQ Consultants, Inc. v. Wearable Health Solutions, Inc., Supreme Court of the State of New York, County of New York, August 26, 2021, Parties are seeking summary judgment of $50,000 plus accrued interest in response to lawsuit by Company regarding $50,000 loan from 11/2016.

	3)	Benza Pharma LLC, Sandor Capital, LP, and John Lemak v. Wearable Health Solutions, Inc., District Court, Clark County, Nevada, Parties are seeking summary judgment of $3,000,000 plus accrued interest in regards to convertible notes payable from March, 2016. The Company believes that there is a very low probability that it will pay this amount and as a result has not accrued for it on the Company’s balance sheet. On February 3, 2023, the plaintiffs in the case of Sandor Capital, LP and John Lemak v. Wearable Health Solutions, Inc., informed the Company that they would be discontinuing their legal action against the Company.

	4)	Medical Alarm Concepts LLC v. MCA Cure, LLC, Superior Court of New Jersey, Law Division, Morris County. Company is seeking return of payments for non-performance plus attorney fees and court costs. A settlement was reached between the parties whereby MCA Cure will pay an initial $10,000 and $6,500 each month until debt is satisfied in 2023 (See Note 14).

Item 1A. Risk Factors.

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

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

During the ~~six~~nine months ended ~~December~~March 31, ~~2022~~2023, the Company received proceeds totaling $~~629~~639,500 in connection with the issuance of 6870,262,500 shares of common stock. Of the total ~~proceeds~~ proceeds received, $325,000 in proceeds was received from the issuance of 37,812,500 common shares that were issued under the terms of subscription agreements at the contract price of $0.008. The remaining proceeds of $304,500 was received from the issuance of 30,450,000 common shares that were issued under the terms of subscription agreements at the contract price of $0.01, and proceeds of $10,000 was received from the issuance of 2,000,000 common shares that were issued under the terms of a subscription agreement at the contract price of $0.005. These shares are yet to be issued as of March 31, 2023.

The above securities were issued in reliance on the exemption under Section 4(a)(2) of the Securities Act. These securities qualified for exemption under Section 4(a)(2) since the issuance by us did not involve a public offering. The offerings were not “public offerings” as defined in 4(a)(2) due to the insubstantial number of persons involved in the transactions, manner of the issuance and number of securities issued. We did not undertake an offering in which we sold a high number of securities to a high number of investors. In addition, the investors had the necessary investment intent as required by Section 4(a)(2) since they agreed to and received securities bearing a legend stating that such securities are restricted pursuant to Rule 144 of the Act. This restriction ensures that these securities would not be immediately redistributed into the market and therefore not be part of a “public offering.” Based on an analysis of the above factors, we have met the requirements to qualify for exemption under Section 4(a)(2) of the Securities Act for these transactions.

Item 3. Defaults Upon Senior Securities.

None

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

~~None.~~Resignation of Independent Registered Public Accounting Firm

27On April 4, 2023, Assurance Dimensions, Inc. (the “Auditor) informed Wearable Health Solutions, Inc. (the “Company”) of their formal resignation as the Company’s independent registered public accounting firm.

The accounting reports of the Auditor on the Company’s consolidated financial statements for fiscal years (“FY”) ended June 30, 2021 (“2021”) and June 30, 2022 (“2022”) did not contain any adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principle, except that each report on the Company’s consolidated financial statements contained an explanatory paragraph regarding the Company’s ability to continue as a going concern based on the Company’s significant working capital deficiency, significant losses and needs to raise additional funds in FY ended 2021 and 2022.

During FY ended 2021 and 2022 and the subsequent interim period through April 4, 2023, the effective date of the Auditors dismissal, there were (i) no disagreements (as that term is defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions) between the Company and the Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which, if not resolved to the satisfaction of the Auditors would have caused the Auditor to make reference thereto in its reports on the consolidated financial statements of the Company for such years, and (ii) no “reportable events” (as that term is defined in Item 304(a)(1)(v) of Regulation S-K).

The Company provided the Auditor a copy of this Report prior to its filing with the Securities and Exchange Commission (the “SEC”) and requested the Auditor to furnish the Company with a letter addressed to the SEC, stating whether or not it agrees with the statements made in this Item 4.01. A copy of the Auditor’s letter dated May 8, 2023, confirming its agreement with the disclosures in this Item 4.01 is attached as Exhibit 16.1 to our current report on Form 8-K that was filed on May 8, 2023, with the Securities and Exchange Commission.

New Independent Registered Public Accounting Firm

During the two most recent fiscal years and through the Engagement Date, the Company did not consult with RBSM regarding either:

Item 6. Exhibits

Exhibit Number		Exhibit Description
31.1		Certification of the Chief Executive Officer Pursuant to Rule 13a-14 or 15d-14 of the Exchange Act pursuant to Section 302 of the Sarbanes- Oxley Act of 2002
31.2		Certification of the Chief Financial Officer Pursuant to Rule 13a-14 or 15d-14 of the Exchange Act pursuant to Section 302 of the Sarbanes- Oxley Act of 2002
32.1		Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2		Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
EX-101.INS		Inline XBRL Instance Document the instance document does not appear in the Interactive Data file because its XBRL tags are embedded within the Inline XBRL document.
EX-101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
EX-101.SCH		Inline XBRL Taxonomy Extension Schema Document
EX-101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
EX-101.LAB		Inline XBRL Taxonomy Extension Labels Linkbase Document
EX-101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		The cover page from this Report, formatted in Inline XBRL (included in Exhibit 101)

2835

SIGNATURES

In accordance with 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 hereunto duly authorized.

WEARABLE HEALTH SOLUTIONS, INC.

Wearable Health Solutions, Inc.
/s/ Harrysen Mittler		~~February~~May 2122, 2023
Harrysen Mittler, CEO, Principal Executive Officer, Director		Date
/s/ Vincent S. Miceli		~~February~~May 2122, 2023
Vincent S. Miceli, CFO, Principal Financial Officer and Principal Accounting Officer		Date
/s/ Peter Pizzino		~~February~~May 2122, 2023
Peter Pizzino, Director		Date

2936

Filing Compare · WEARABLE HEALTH SOLUTIONS, INC.