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From September 30, 2019 we had money from $ 7,885 and from September 30, 2020 we had cash flow of 0. The reduction in cash flow is primarily due to funds spent in operating the Company’s business.

From September 30, 2019 we had customer accounts, Related party of $ 71,186
and from September 30, 2020 we had customer accounts, Related party of $ 103,192.

The increase in accounts receivable, Related party of approximately 44.9% is mainly attributable to:

(a) Accounting by the Company during the closed quarter December 31, 2019 an aggregate of $ 27,424 minimum royalties and anniversary fees under a license granted to Zander by Regen Biopharma, Inc.

(b) Accounting by the Company during the closed quarter March 31, 2020 an aggregate of $ 27,425 minimum royalties and anniversary fees under a license granted to Zander by Regen Biopharma, Inc.

(c) Accounting by the Company during the closed quarter June 30, 2020 an aggregate of $ 27,425 minimum royalties and anniversary fees under a license granted to Zander by Regen Biopharma, Inc.

(d) Accounting by the Company during the closed quarter September 30, 2020
an aggregate of $ 27,726 minimum royalties and anniversary fees under a license granted to Zander by Regen Biopharma, Inc.

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Offset by:

The application of $ 75,900 of the main debt and $ 2,093 accrued but unpaid interest owed to Zander by the Company on accounts receivable during the quarter ended December 31, 2019.

On December 16, 2019 Zander Therapeutics, Inc. (“Zander”), KCL Therapeutics, Inc. (“KCL”) and Regen Biopharma, Inc. (“Regen”) has entered into an agreement (“Agreement”) whereby:

1) Zander will return for cancellation 194,285,714 shares of Regen’s Series A Preference Shares (“Conversion Shares”) acquired by Zander through the conversion of $ 340,000 of the main debt of a $ 350,000 convertible note payable issued by Regen to Zander. Subsequent to this event, the principal amount owed to Zander by Regen under the Convertible Bond will be $ 350,000 which will be applied in accordance with the Agreement.

2) One $ 35,000 one-off charges owed to Zander by Regen (“one-off charges”) will be applied in accordance with the agreement.

3) $ 75,900 of the main debt owed to Regen by Zander and $ 4,328 accrued but unpaid interest owed by Regen to Zander will be applied in accordance with the Agreement.

No action has been taken by either party to enforce the terms of the Agreement.

On April 15, 2021 The Agreement has been amended as follows so that the material terms and conditions are:

    a)  Zander shall not return the Conversion shares for cancellation and the
        principal indebtedness of the aforementioned convertible note shall not
        reflect such return




    b)  As of December 16, 2019 all principal and accrued interest payable by
        Regen to Zander on that date resulting from Promissory Notes issued by
        Regen to Zander shall be credited towards amounts due by Zander pursuant
        to that agreement, as amended, entered into by and between Zander and
        Regen on June 23, 2015 ("License Agreement") whereby Regen granted to
        Zander an exclusive worldwide right and license for the development and
        commercialization of certain intellectual property controlled by Regen for
        non-human veterinary therapeutic use for a term of fifteen years and that
        License Assignment And Consent agreement entered into by and between
        Regen, KCL and Zander on December 17, 2018 whereby Regen transferred and
        assigned to KCL all rights, duties, and obligations of Regen under the
        License Agreement and KCL agreed to assume such duties and obligations
        thereunder and be bound to the terms of the License Agreement with respect
        thereto.

Financial statements for the year ended September 30, 2020 recognize the request from December 16, 2019 all principal and accrued interest payable by Regen to Zander on that date resulting from promissory notes issued by Regen to Zander.

From September 30, 2019 we had accounts payable of $ 92,000 and from September 30, 2020 we had accounts payable of $ 110,486. The increase of approximately 20% is mainly attributable to expenses incurred by the Company resulting from the services provided to the Company by Baumgartner Patent law and title transfer company.

From September 30, 2019 we had bills to pay from $ 88,627 and from September 30, 2020 we had bills to pay from $ 62,127. The decrease in notes payable of approximately 29.9% is attributable to $ 37,900 loaned to the Company by BST Partners, a company controlled by David Koos Chairman and Chief Executive Officer of the Company, during the financial year September 30, 2020 offset by the application to accounts receivable of the principal amounts owed by the Company to Zander Therapeutics, Inc. from December 16, 2019 resulting from promissory notes issued by Regen to Zander.

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From September 30, 2019 we had accrued interest to pay from $ 525,335 and from
September 30, 2020 we had accrued interest to pay from $ 830,061.

The increase in accrued interest payable of approximately 58% is attributable to additional accrued but unpaid interest on the notes and convertible notes issued by the Company during the twelve months ended. September 30, 2020 compensated by:

(a) the application of $ 2,093 interest due but unpaid to Zander Therapeutics Inc.

to accounts receivable.

(b) conversion of $ 26,589 accrued but unpaid interest due to holders of

Convertible notes payable in equity securities of the Company.

From September 30, 2020, we had an accumulated pay of $ 1,189,319 and from
September 30, 2019 we had an accumulated pay of $ 972,158.

The payroll increase of approximately 22% is attributable to:

$ 55,161 in the salary costs of the Chief Executive Officer of the Company incurred but unpaid during the twelve months ended September 30, 2020

$ 162,000 in salary costs due to the Company’s chief financial officer committed but unpaid during the twelve months ended September 30, 2020

From September 30, 2020 we had an accumulated rent of $ 23,548 and from September 30, 2019 we had an accumulated rent of $ 5,000.

The increase in Rents payable of approximately 370.9% is attributable to the rental charges incurred still unpaid during the financial year ended. September 30, 2020 under a monthly sublease contract concluded by and between the Company and BST Partners (an entity under common control with the Company).

On January 20, 2020 the Company and BST Partners agreed that the monthly subletting by and between the Company and BST Partners, Inc. whereby the Company subleased office space to BST Partners, Inc. at 4700, rue du Printemps, street 304, La Mesa, California 91942 will end as of 1:00 p.m. Pacific Standard Time on
January 22, 2020.

From September 30, 2020 we had a responsibility derived from $ 2,634,215 and from
September 30, 2019 we had a responsibility derived from $ 7,200,528.

The decrease in derivative liabilities of 63.4% is attributable to the recognition by the Company of embedded derivatives on convertible notes payable with a total par value of $ 2,089,377 in circulation at September 30, 2020.

From September 30, 2019 we had convertible notes payable, net of the unamortized discount, of $ 2,058,571 and from September 30, 2020 we had convertible notes payable, net of the unamortized discount, of $ 2,541,766.

The increase in convertible notes payable, net of the unamortized discount, of approximately 23.4% is mainly attributable to the amortization of $ 609,522 Discounts on Convertible Bonds offset by the conversion of approximately
$ 126,133 the principal debt in equity securities of the Company.

Significant changes in operating results

Revenues from continuing operations were $ 110,000 for the twelve months ended
September 30, 2019 and $ 110,000 for the same period ended in 2020. $ 110,000 of the turnover recorded during the closed financial years September 30, 2019 and September 30, 2020 consisted of $ 100,000 related to an anniversary expense receivable under a license granted by the Company for Zander Therapeutics, Inc. and
$ 10,000 minimum royalties recognized during the twelve months ended September 30, 2019 and 2020 respectively under the same license.

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With regard to the aforementioned license, the December 17, 2018 Regen Biopharma, Inc.(“Conceding”) , KCL Therapeutics, Inc. (“Assignee”) and Zander Therapeutics, Inc. (“Licensee”) has entered into an ASSIGNMENT OF LICENSE AND CONSENT AGREEMENT whereby, with respect to certain intellectual property that has been assigned by Regen Biopharma, Inc.(“Attributed properties“) to its wholly owned subsidiary KCL Therapeutics, Inc., the grantor hereby transfers and assigns to the assignee all rights, duties and obligations of the grantor under the contract with respect to the Attributed properties , and the Assignee agrees to assume these duties and obligations hereunder and to be bound by the terms of the Agreement in this regard.

Operating loss for the twelve months ended September 30, 2019 has been $ 756,785 compared to the operating loss recognized during the same period ended in 2020 of $ 209,317. The decrease in the operating loss recognized in fiscal year 2020 compared to fiscal year 2019 is attributable to the increase in general and administrative, consulting and research and development expenses recognized during the year ended. September 30, 2019 compared to the same period ending in 2020

Net loss for the year ended September 30, 2019 has been $ 2,623,176. Net income for the year ended September 30, 2020 has been $ 3,414,419. The disparity is mainly attributable to income derived from $ 4,566,669 recognized for the year ended
September 30, 2020.

From September 30, 2020 we have had $ 0 in cash and current liabilities of
$ 7,458,187 these liabilities consist of accounts payable, notes payable, convertible notes payable (net of the unamortized discount), recognized derivative liabilities, rents payable and accrued liabilities. We believe that we will not be able to meet our cash flow requirements over the next twelve months and that we will have to seek additional financing.

From September 30, 2019 the Company was not a party to any binding agreement which would commit Regen to significant capital expenditure.

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