UNITED
STATES

SECURITIES
AND EXCHANGE COMMISSION

Washington,
D.C. 20549



FORM
10-K



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



For
the fiscal year ended December 31, 2021



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



For
the transition period from _____________to ____________



000-56025

Commission
file number



Quanta,
Inc.

(Exact
name of registrant as specified in its charter)



|Nevada                                                                                                                                      |  | 81-2749032                                                                                                       
|------------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------
|(State or other jurisdiction of
                                                                             incorporation or organization) |  | (I.R.S. Employer
                                                                             Identification No.)



|632
    S Glenwood Pl, Burbank, CA           |  | 91506         
|-------------------------------------------- |  | --------------
|(Address
    of principal executive offices) |  | (Zip
    Code)



(818)
659-8052

Registrant’s
telephone number, including area code



Securities
registered under Section 12(b) of the Exchange Act: None



Securities
registered under Section 12(g) of the Exchange Act:

Common
Stock, par value $0.001



Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒



Indicate
by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒



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



Indicate
by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files).Yes ☒ No ☐



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



|Large
    accelerated filer ☐ | 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 check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒



The
aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which
the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s
most recently completed first fiscal quarter was $1,870,318.



As
of April 11, 2022, the registrant had 406,590,858 shares of Common Stock outstanding.


















TABLE
OF CONTENTS



|Explanatory Note | 3                                                                                                            
|---------------- | -------------------------------------------------------------------------------------------------------------
|Item
    1.      | Business.                                                                                                    
|Item
    1A.     | Risk Factors                                                                                                 
|Item
    1B.     | Unresolved Staff Comments.                                                                                   
|Item
    2.      | Properties.                                                                                                  
|Item
    3.      | Legal Proceedings.                                                                                           
|Item
    5.      | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
|Item
    7.      | Management’s Discussion and Analysis of Financial Condition and Results of Operations.                       
|Item
    7A.     | Quantitative and Qualitative Disclosures About Market Risk.                                                  
|Item
    8.      | Financial Statements and Supplementary Data.                                                                 
|Item
    9.      | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.                        
|Item
    9A.     | Controls and Procedures.                                                                                     
|Item
    9B.     | Other Information.                                                                                           
|Item
    10.     | Directors, Executive Officers and Corporate Governance.                                                      
|Item
    11.     | Executive Compensation.                                                                                      
|Item
    12.     | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.              
|Item
    13.     | Certain Relationships and Related Transactions, and Director Independence.                                   
|Item
    14.     | Principal Accounting Fees and Services.                                                                      
|Item
    15.     | Exhibits, Financial Statement Schedules.                                                                     
|SIGNATURES       | 33                                                                                                           



2







SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS



This
report contains forward-looking statements that involve a number of risks and uncertainties. Although our forward-looking statements
reflect the good faith judgment of our management, these statements can be based only on facts and factors of which we are currently
aware. Consequently, forward-looking statements are inherently subject to risks and uncertainties. Actual results and outcomes may differ
materially from results and outcomes discussed in the forward-looking statements.



Forward-looking
statements can be identified by the use of forward-looking words such as “may,” “will,” “should,”
“anticipate,” “believe,” “expect,” “plan,” “future,” “intend,”
“could,” “estimate,” “predict,” “hope,” “potential,” “continue,”
or the negative of these terms or other similar expressions. These statements include, but are not limited to, statements under the captions
“Risk Factors,” “Management’s Discussion and Analysis or Plan of Operation” and “Description of Business,”
as well as other sections in this report. Such forward-looking statements are based on our management’s current plans and expectations
and are subject to risks, uncertainties and changes in plans that may cause actual results to differ materially from those anticipated
in the forward-looking statements. You should be aware that, as a result of any of these factors materializing, the trading price of
our common stock may decline. These factors include, but are not limited to, the following:



| | ● | the
    availability and adequacy of capital to support and grow our business;                                                                   
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------
| | ● | economic,
    competitive, business and other conditions in our local and regional markets;                                                      
| | ● | actions
    taken or not taken by others, including competitors, as well as legislative, regulatory, judicial and other governmental authorities;
| | ● | competition
    in our industry;                                                                                                                 
| | ● | changes
    in our business and growth strategy, capital improvements or development plans;                                                      
| | ● | the
    availability of additional capital to support development; and                                                                           
| | ● | other
    factors discussed elsewhere in this annual report.                                                                                     



The
cautionary statements made in this annual report are intended to be applicable to all related forward-looking statements wherever they
may appear in this report.



We
urge you not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. We undertake
no obligation to publicly update any forward looking-statements, whether as a result of new information, future events or otherwise.



3







PART
I



Item
1. Business.



The
company was founded in Nevada as Freight Solution, Inc. in 2016.



On
June 5, 2018, we underwent a change of control. In connection with the change of control, our board of directors and officers was reconstituted
through the resignation of Shane Ludington as Chairman, Chief Executive Officer, Chief Financial Officer, Secretary and Treasurer of
the Registrant and the appointment of Mr. Eric Rice as Chairman, Chief Executive Officer and Chief Financial Officer and Mr. Jeffrey
Doiron as President and Chief Operations Officer.



On
June 6, 2018 we formed a wholly owned subsidiary, Quanta Acquisition Corp. in the state of California, and executed an Agreement of Merger
and Plan of Reorganization, with Bioanomaly, Inc., a California corporation, d/b/a Quanta and Quanta Acquisition Corp., a California
corporation and our wholly-owned subsidiary. Pursuant to the terms of the Merger Agreement, Quanta Acquisition Corp. merged with and
into Quanta in a statutory reverse triangular merger with Quanta surviving as a wholly owned subsidiary. Following the merger, we adopted
our business plan.



On
June 6, 2018, we cancelled 15,000,000 shares of common stock acquired through the change in control transaction. As consideration for
the merger, we agreed to issue the shareholders of Quanta an aggregate of 21,908,810 shares of our common stock, par value $0.001 per
share. Freight Solution shareholders retained 6,500,000 shares of common stock, which represented 23% of our issued and outstanding stock
following the merger.



Simultaneously
with the merger, we accepted subscriptions for 6,500,000 shares of common stock in a private placement offering at a purchase price of
$0.20 per share for an aggregate offering amount of $1,300,000. We also issued two non-affiliated investors warrants to purchase 3,000,000
shares of our common stock at an exercise price of $0.30 per share expiring in four years.



Following
the consummation of the merger, Quanta shareholders beneficially owned approximately 63% of our issued and outstanding common stock.



On
July 11, 2018 the State of Nevada approved our name change from Freight Solution, Inc. to Quanta, Inc.



On
April 14, 2020, we issued to Eric Rice, our former Chairman, Chief Executive Officer and Chief Financial Officer, 2,500,000 shares of
a newly created class of preferred stock, Series A Preferred Stock.



On
November 16, 2020, the Company entered into a Control Block Transfer Agreement with Eric Rice and Phil Sands, pursuant to which, Mr.
Rice agreed to transfer 2,500,000 shares of the Company’s Series A Super Voting Preferred Stock to Mr. Sands, representing a transfer
of majority voting control over the Company because the holder of such 2,500,000 shares of our Series A Super Voting Preferred Stock
automatically carries a vote equal to 51% on all matters submitted to a vote of the holders of our Common Stock and Preferred Stock.
On November 16, 2020, the Company entered into a Share Cancellation Agreement with Eric Rice, holder of 18,030,032 shares of QNTA Common
Stock, pursuant to which Mr. Rice agreed to cancel 17,030,032 shares (16,951,432 shares were cancelled December 29, 2020), and to retain
ownership of 1,000,000 shares of Common Stock.



On
December 21, 2020, the Company entered into a Securities Exchange Agreement with Medolife Rx, Inc., a Wyoming corporation, (“Medolife”)
pursuant to which, the Company agreed to acquire 51% of Medolife in exchange for 9,000 shares of newly created Series B Convertible Preferred
Stock. On January 14, 2021, we completed our acquisition of 51% of Medolife and Medolife’s founder, Arthur Mikaelian, PhD, a member
of our Board of Directors, officially replaced Phil Sands as our Chief Executive Officer. Phil Sands resigned as an officer and director
of the Company on May 10, 2021. Simultaneously therewith, the Company executed a Control Block Transfer Agreement with Phil Sands and
Arthur Mikaelian, pursuant to which, effective Mr. Sands agreed to transfer 2,500,000 shares of the Company’s Series A Super Voting
Preferred Stock to Dr. Mikaelian, representing a transfer of majority voting control over the Company because the holder of such 2,500,000
shares of our Series A Super Voting Preferred Stock automatically carries a vote equal to 51% on all matters submitted to a vote of the
holders of our Common Stock and Preferred Stock. Mr. Sands agreed to transfer the Control Block to Arthur Mikaelian in exchange for 3,000,000
shares of the Company’s Common Stock, and for the payment of $22,500 in accrued salary, as well as the payment of health insurance
benefits through January of 2022.



Medolife
provides contract research services. The Company focuses on research, development, and production of pharmaceutical-grade products, as
well as clinical evidence-based nutraceuticals utilizing patented polarization technology. Medolife Rx serves clients in the United States.



In
2007, Medolife began its venom-to-drug research and development concept. In 2008, Medolife identified the Rhopalurus princeps scorpion
species, which are endemic to the Dominican Republic, as a possible candidate. The company entered into an agreement with the local Ministry
of Environment and Natural Resources to investigate the anticancer properties of scorpion venom peptides. The Company’s research
confirmed the anticancer properties of the peptide. In 2010, Medolife registered its product, Escozine, in the Dominican Republic due
to the prime material and preliminary studies originating from Dominican Republic. Escozine was registered under Sanitary Registry Number
PN2010-0244 as an anti-tumoral alternative medicine in the Dominican Republic, which allowed the company to perform clinical studies
and observations in the country.



4







Quanta
Muscle Rubs, which entered the CBD pain-relief rub market (“Muscle Rub”), is the first in a series of products to emerge
from the company’s labs. At the heart of its well-documented effectiveness is the proprietary “polarization” process,
which uses electromagnetic force to markedly enhance bioactivity at the molecular level. A polarized ingredient creates stronger bonds
with the body’s receptors providing higher bioavailability. The company believes this natural solution has nearly limitless applications
in the world of plant-based consumer products.



In
early 2020, Medolife was preparing to apply to the FDA to initiate the approval process for Escozine as an orphan drug for pancreatic
cancer. The Weinberg Group was hired as Medolife’s regulatory compliance consultants for the FDA application and guidelines.



As
the COVID-19 pandemic spread during the Spring of 2020, Medolife studied the scorpion venom peptide as a potential COVID-19 drug treatment
and began confirming its antiviral properties. The company applied to the FDA as a Pre-Investigational New Drug (PIND), which opened
PIND #150335. For PIND Submission and Clinical Trial Strategy in the United States and the Dominican Republic, Medolife has contracted
Affinity Bio Partners as a consulting firm on FDA regulatory matters.



In
August of 2020, Medolife initiated clinical studies at the Cruz Jiminian Clinic (Clinica Cruz Jiminian) in Santo Domingo, Dominican Republic,
which is a clinic with a license allowing them to treat COVID-19 patients. The study included 450 COVID-19 patients. The observation
contained more female than male patients, with 252 female and 198 male participants. Out of 450 participants, there was an even spread
among the age groups, with a higher number in the 41-to-50-year-old group.



EFFICACY
STUDY.



Escozine
was used as a 3-pillar treatment: a Therapeutic, a Palliative, and a Preventative.



Therapeutic



| | ● | Escozine
    was used as a monotherapy                                                                                   
| | - | -------------------------------------------------------------------------------------------------------------------------
| | ● | All
    therapeutic participants were tested COVID-19 positive prior to observation.                                     
| | ● | 100%
    of patients were discharged with a negative COVID-19 test result within 7 to 10 days of treatment with Escozine.



Conclusion:Within 4-5 days, all COVID-19 patients using Escozine tested negative for the virus, indicating Escozine eliminated the COVID-19
virus or accelerated recovery.



Palliative



| | ● | COVID-19
    positive patients report a dramatic decrease of symptoms within 2-4 days of Escozine treatments. The World Health Organization Quality
    of Life (“WHOQOL”) Bref quality of life questionnaire by the World Health Organization (WHO) was used since July 2020
    to evaluating symptoms in patients, including:
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ○ | Shortness
    of breath    
| | - | ---------------------------
| | ○ | Pain                       
| | ○ | Fatigue                    
| | ○ | Headache                   
| | ○ | Loss
    of taste          
| | ○ | Fever                      
| | ○ | Loss
    of smell (anosmia)



Conclusion:
All participants reported significant improvement on all their COVID-19-related symptoms within 5 days, indicating that Escozine can
be used to treat the symptoms of COVID-19.



5







Preventative



| | ● | Transmission
    of virus to treating physicians and nurses of COVID-19 patients is inhibited upon administering Escozine.
| | - | --------------------------------------------------------------------------------------------------------------------------
| | ● | Substantial
    reduction in infectability and spread of the SARS-CoV-2 virus.                                            



Conclusion:
All hospital workers remained healthy during the clinical observation while taking Escozine, indicating that Escozine can be used as
a preventative measure for COVID-19. The preventative capabilities require additional study.



SAFETY
STUDY.



To
verify the safety of using Escozine, patients were tested before and after treatment for:



| | ● | Hematology                                                                                        
| | - | --------------------------------------------------------------------------------------------------
| | ● | Clinical
    chemistry (Kidney and Liver function tests, Enzymes, Glucose, Calcium and Phosphorus)
| | ● | Urine                                                                                             
| | ● | CD4/CD8                                                                                           



Conclusion:No toxic response was observed in 100% of patients and no side-effects were reported, indicating that Escozine is safe to use for
COVID-19 patients.



ADDITIONAL
FINDINGS.



During
the clinical study, Medolife observed that Escozine prevents Acute Kidney Injury (AKI) caused by COVID-19:



| | ● | During
    the clinical study, no deaths occurred.                                                                                                                             
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | ● | 40%
    of the monitored COVID-19 patients who were administered Escozine, had serum creatinine that was higher than normal, indicating AKI
    before Escozine administration.
| | ● | After
    Escozine administration, most of the patient’s creatinine concentrations dropped or did not change.                                                                  
| | ● | Overall,
    the frequency of patients that developed normal creatinine levels after Escozine administration was statistically significant (p<0.05).                           



| |  | Medolife
    has received a new reply from the FDA on their latest submission of requested data. In the reply, the FDA:
| |  | -----------------------------------------------------------------------------------------------------------------------



| | ● | Stated
    that they acknowledge the Company’s clinical trial as an informal proof-of-concept study                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | ● | Laid
    out very specific guidelines for the next steps required by the regulatory body in order to garner approval for Escozine as a treatment
    for COVID-19, in which the FDA requested:



| | ○ | Pharmacokinetic
    (PK) study, which Medolife has initiated in the United Kingdom.                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------
| | ○ | DNA
    toxicology study, for which Medolife is negotiating with a GLP certified laboratory in the United States.                      
| | ○ | Additional
    Chemistry, Manufacturing and Controls (CMC) data from Medolife’s contract manufacturer, CURE Pharmaceutical Corporation.



6







R&D
Expenses related to Escozine.



Over
the last 24 months, the company has spent more than $533,000 on research and development related to Escozine as both a treatment of cancer
and for COVID-19.



In
July of 2021, the company rebranded its line of Quanta CBD-based products to AELIA (pronounced: ay-lee-ah). The company is expanding
its line of CBD-based products with new topical muscle relief and cosmetics formulas.



On
July 23, 2021, the company submitted a name and symbol change application to FINRA. The company is in the process of changing its name
from Quanta to Medolife Rx Holdings.



The
company is currently listed as Medolife Rx Holdings, Inc. with the Secretary of State of Nevada.



Overview



Medolife
Rx, Inc. is a global biotechnology company with operations in clinical research, manufacturing, and consumer products. Medolife Rx was
created through the merger of Medolife, a private company founded by Dr. Arthur Mikaelian, who pioneered the unlaying polarization technology,
and Quanta, Inc., a direct-to-consumer wellness product portfolio company. The Company’s lead clinical development programs include
Escozine®, a proprietary formulation consisting of small molecule peptides derived from Rhopalurus princeps scorpions, which is amplified
by the Company’s polarization technology and is being researched as a treatment of various indications, including COVID-19 and
cancer. The Company intends to pursue product registration and drug approval in multiple countries.



With
its line of AELIA brand products, Medolife manufactures and distributes consumer wellness products in areas such as pain relief, beauty,
and general wellness. AELIA products are designed using Dr. Mikaelian’s polarization technology, which applies advances in quantum
biology to increase the potency of active ingredients. Ultimately, Medolife’s mission is to deliver better, more effective ingredients
to elevate product efficacy, reduce waste, and facilitate healthier, more sustainable consumption.



Beyond
its own clinical and consumer applications, the polarization technology used by Medolife and its subsidiaries has many potential applications.
From potentiating bio-ingredients, to producing more-effective carbon-trapping plants, to transformative anti-aging solutions, Medolife
could have the opportunity to upend how commercial and pharmaceutical products are made and increase their benefits, while decreasing
their chemical concentration.



7







Quanta
Basics



Quanta
and its subsidiary Medolife are cutting-edge technology platform whose patented, proprietary technology harnesses advances in quantum
biology to increase the potency of active ingredients. Currently, the company supports product formulations in cancer and COVID-19 treatments,
as well as pain management, anti-inflammation, skincare, agriculture, nutritional supplements, and plant-based consumables. Ultimately,
the company’s mission is to deliver better, more effective ingredients to elevate product efficacy, reduce waste and facilitate
healthier, more sustainable consumption.



The
established resonance theory behind the company’s polarization process has many potential applications. From potentiating bio-ingredients
to produce more-effective carbon-trapping plants to transformative anti-aging solutions the company’s technology has the opportunity
to upend how commercial products are made and the benefits from them. Already we see multi-trillion-dollar global industries benefiting
from the company’s technology.



Our
proof of concept, the company’s market-leading CBD pain-relief rub (“Muscle Rub”), is only the first in a series of
paradigm shift products to emerge from our labs. At the heart of its well-documented effectiveness is our proprietary “polarization”
process, which uses electromagnetic force to markedly enhance bioactivity at the molecular level—a polarized active ingredient
is more soluble and creates stronger bonds with the body’s receptors. This allows us to enhance ingredients so they work faster
and more powerfully without the use of chemical by-products or cellular penetration. the company believes this natural solution has nearly
limitless applications in the world of plant-based consumer products.



the
company is involved in ambitious projects that we believe will reshape the next wave of climate science, sustainability, nutrition, and
more. Having harnessed the technology of the future, the company is dedicated to bringing tomorrow’s health and wellness solutions
to the billions in need today.



Government
Regulation



We
believe we are in compliance with applicable federal, state and other regulations and that we have compliance programs in place to ensure
compliance going forward. There are no regulatory notifications or actions pending.



Item
1A. Risk Factors.



Risks
Related to the Business



The
Company is a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and is not required to provide the information required
under this item.



Item
1B. Unresolved Staff Comments



The
Company is a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and is not required to provide the information required
under this item.



Item
2. Properties



The
Company does not own any physical location. Quanta currently leases its corporate headquarters in Burbank, California which lease expires
in August, 2023.



Item
3. Legal Proceedings



From
time to time, we are a party to, or otherwise involved in, legal proceedings arising in the normal and ordinary course of business.



On
April 30, 2021, the Company was served with an Entry of Default pursuant to two Product Loan Agreements executed between the Company
and individuals Jason Brooks and Bruce Hofert, respectively, on July 9, 2020.



On
June 30, 2021, the Company has been summoned by the Iowa District Court for Sioux County, pursuant to a Product Loan Agreement executed
between the Company and B&L Investments, LLC, on July 7, 2020.



On
August 5, 2021, the Company received notice the Securities and Exchange Commission had commenced an investigation related to the Company
and affiliated persons and entities. The Company is cooperating with the Commission.



We
are not aware of any other proceeding, threatened or pending, against us which, if determined adversely, would have a material effect
on our business, results of operations, cash flows or financial position.



8







PART
II



Item
5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities



(a)
Market Information



On
August 16, 2018 the Company changed its stock symbol to “QNTA.” The following table lists the high and low bid information
for our common stock as quoted on the OTC Markets for the fiscal year ended December 31, 2021 and 2020. Quotations reflect inter-dealer
prices, without retail mark-up, mark-down or commission and may not necessarily represent actual transactions.



|Fiscal Year Ended December 31, 2020 |  | High |      |  | Low |  
|----------------------------------- |  | ---- | ---- |  | --- | -
|Fourth Quarter                      |  | $    | 0.12 |  |     | $
|Third Quarter                       |  | $    | 0.17 |  |     | $
|Second Quarter                      |  | $    | 0.20 |  |     | $
|First Quarter                       |  | $    | 0.32 |  |     | $



|Fiscal Year Ended December 31, 2021 |  | High |       |  | Low |  
|----------------------------------- |  | ---- | ----- |  | --- | -
|Fourth Quarter                      |  | $    | 0.040 |  |     | $
|Third Quarter                       |  | $    | 0.060 |  |     | $
|Second Quarter                      |  | $    | 0.205 |  |     | $
|First Quarter                       |  | $    | 0.165 |  |     | $



(b)
Holders of Our Common Stock



As
of the date of filing we had approximately 2,376 shareholders of record.



(c)
Dividends



Since
inception we have not paid any dividends on our common stock. We currently do not anticipate paying any cash dividends in the foreseeable
future on our common stock. Although we intend to retain our earnings, if any, to finance the exploration and growth of our business,
our Board of Directors will have the discretion to declare and pay dividends in the future. Payment of dividends in the future will depend
upon our earnings, capital requirements, and other factors, which our Board of Directors may deem relevant.



(d)
Securities authorized for issuance under equity compensation plans



To
date we have not authorized the issuance of any shares of common stock under equity compensation plans.



Transfer
Agent and Registrar



The
Company’s transfer agency is Nevada Agency and Transfer Company (“NATCO”) located at 50 West Liberty Street, Suite
880, Reno, NV 89501. Telephone (775) 322-0626.



9







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



FORWARD-LOOKING
STATEMENTS



This
form 10-K contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For
this purpose, any statements contained in this Form 10-K that are not statements of historical fact may be deemed to be forward-looking
statements. Without limiting the foregoing, words such as “may”, “will”, “expect”, “believe”,
“anticipate”, “estimate” or “continue” or comparable terminology are intended to identify forward-looking
statements. These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending
on a variety of factors, many of which are not within our control. These factors include by are not limited to economic conditions generally
and in the industries in which we may participate; competition within our chosen industry, including competition from much larger competitors;
technological advances and failure to successfully develop business relationships.



This
discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results may differ materially
from those anticipated in these forward-looking statements.



SUMMARY
OF BUSINESS



Quanta
Basics



Quanta
and its subsidiary Medolife are cutting-edge technology platform whose patented, proprietary technology harnesses advances in quantum
biology to increase the potency of active ingredients. Currently, the company supports product formulations in cancer and COVID-19 treatments,
as well as pain management, anti-inflammation, skincare, agriculture, nutritional supplements, and plant-based consumables. Ultimately,
the company’s mission is to deliver better, more effective ingredients to elevate product efficacy, reduce waste and facilitate
healthier, more sustainable consumption.



The
established resonance theory behind the company’s polarization process has many potential applications. From potentiating bio-ingredients
to produce more-effective carbon-trapping plants to transformative anti-aging solutions the company’s technology has the opportunity
to upend how commercial products are made and the benefits from them. Already we see multi-trillion-dollar global industries benefiting
from the company’s technology.



Our
proof of concept, the company’s market-leading CBD pain-relief rub (“Muscle Rub”), is only the first in a series of
paradigm shift products to emerge from our labs. At the heart of its well-documented effectiveness is our proprietary “polarization”
process, which uses electromagnetic force to markedly enhance bioactivity at the molecular level—a polarized active ingredient
is more soluble and creates stronger bonds with the body’s receptors. This allows us to enhance ingredients so they work faster
and more powerfully without the use of chemical by-products or cellular penetration. the company believes this natural solution has nearly
limitless applications in the world of plant-based consumer products.



The
company is involved in ambitious projects that we believe will reshape the next wave of climate science, sustainability, nutrition, and
more. Having harnessed the technology of the future, the company is dedicated to bringing tomorrow’s health and wellness solutions
to the billions in need today.



10







Discovery
Synopsys



Using
our product development process and business-to-business and direct-to-consumer sales approaches as a benchmark for future business,
we developed the Quanta business model. The company believes that its technology unique ability to strengthen ingredients renders them
more potent without added chemicals or penetrating cells means Quanta is in a first-of-its-kind position in the market. As the world’s
first company focused on Quantum Biology we sit in a strong, but unique position in the market.



Upcoming
products and ventures will be designed to achieve or surpass this level of consumer benefit and uptake.



Quanta
Business Model in 3 P’s: Potentiation, Partners, and Profits



After
two years we believe the best possible model for the long-term success of the company is collaborating with best-in-class partners through
joint ventures for new verticals, products, and research. These joint ventures may involve a jointly owned special purpose entity or
they may be entirely based on contractual obligations.



The
unique ability to increase the ingredient and product performance opens the doors for major opportunities. Higher performing ingredients
mean less is needed to make a strong impact (increased margins, increase overall efficacy). We proved this with our Muscle Rub, which
uses approximately 1/3 the CBD of competing products with demonstrably improved results.



The
level of potentiation delivered by Quanta allows our partners the unique ability to provide higher-performing products, lower material
costs, more competitive pricing and increased profit margins. In short, our partners will be able to make better performing, more affordable
products with a higher repeat purchase. This is true disruption and consumer utopia.



We
aim to work with groups that specialize in manufacturing, marketing, selling and distributing existing product lines that utilize ingredients
we can potentiate. Partners like this facilitate efficient market delivery of joint innovations.



We
believe this strategy provides greater shareholder value, enhances revenue potential, defrays upfront expenses and affords us the ability
to raise capital.



We
believe this type of partnership will afford a company Quanta partners with:



| | ● | Development
    of emerging products with cutting edge ingredients.
| | - | -------------------------------------------------------------------
| |   |                                                                    
| | ● | A
    product line with a true point of differentiation.           
| |   |                                                                    
| | ● | New
    SKUs with an increased margin.                             
| |   |                                                                    
| | ● | Decreased
    cost of goods sold.                                  



11







Simultaneously
these partnerships can allow Quanta:



| | ● | Greater
    brand recognition.                                                               
| | - | ---------------------------------------------------------------------------------------------
| |   |                                                                                              
| | ● | Increased
    revenue and in turn profitability.                                             
| |   |                                                                                              
| | ● | Quicker
    timeline to more licensing opportunities because of a track record of success.   
| |   |                                                                                              
| | ● | Brand
    to become synonymous with improving the performance of ingredients within products.



Manufacturing
Partnerships -



Quanta
is currently focused on partnering with large-scale manufacturers and distributors able to produce products that meet the requirements
of applicable regulations IE: Good Manufacturing Practices to fulfill orders of our own product line. This type of partnership is crucial
because it will afford:



| | ● | New
    product development that meets certification requirements
| | - | -----------------------------------------------------------------
| |   |                                                                  
| | ● | Much
    larger production scale                                 
| |   |                                                                  
| | ● | Speed
    to market                                              
| |   |                                                                  
| | ● | Increased
    distribution and profitability                     



With
our licensing capabilities, Quanta believes this technology can render better, more efficacious products that cost less to create but
command a higher purchase value because of polarized ingredients. This, in turn, allows companies to diversify their catalog of products
while simultaneously providing them with a distinguished advantage - more efficacious ingredients.



Employees



As
of the date of this report, Quanta has 4 full time and no part time employees. We believe we enjoy good employee relations. None of our
employees are members of any labor union, and we are not a party to any collective bargaining agreement.



RESULTS
OF OPERATIONS



Summary
of Key Results



Results
of Operations for year ended December 31, 2021 compared to the year ended December 31, 2020



Revenue



Net
sales are comprised of wholesale sales to our retail partners and sales through our direct-to-consumer channel. Net sales in both channels
reflect the impact of product returns as well as discounts for certain sales programs or promotions.



For
the year ended December 31, 2021 the Company recognized $642,143 in net sales. For the year ended December 31, 2020, the Company recognized
$1,124,721 in net sales. The decrease in sales is due to the change in management and furlough of most employees during the year ended
December 31, 2021, compared to 2020.



For
the year ended December 31, 2021 the Company recognized $31,264 in license revenue. For the year ended December 31, 2020, the Company
recognized $33,394 in license revenue.



Expenses



Operating
expenses for the year ended December 31, 2021 were $8,332,455. The Company incurred $453,500 in research and development costs
($420,000 paid to related party), and $7,344,826 in selling, general, and administrative costs, including legal and professional fees
of $630,203 and $534,129 of compensation and related costs.



Operating
expenses for the year ended December 31, 2020 were $6,262,680. The Company incurred $452,443 in research and development costs ($420,000
paid to related party), and $4,273,394 in selling, general, and administrative costs, including legal and professional fees of $886,589,
and $1,281,750 of compensation and related costs, and an impairment of an operating lease right of use asset of $255,093.



12







Other
Income (Expense)



For
the year ended December 31, 2021, the Company recognized $450,653 of net other expenses, including interest expense of $351,040, debt
discount amortization of $233,738, and income of the forgiveness of debt of $134,125.



For
the year ended December 31, 2020, the Company recognized $2,778,593 of net other expenses, including interest expense of $512,907, private
placement costs of $381,084, debt discount amortization of $755,538, loss on debt extinguishment of $1,230,290 and income of $101,226
for the change in the fair market value of derivative liabilities.



Net
Loss



Net
loss for the year ended December 31, 2021 was $8,253,124. Net loss for the year ended December 31, 2020 was $8,164,428. We recorded no
provision for federal income taxes for either period.



Basic
and diluted loss per share - Basic and diluted loss per share for the year ended December 31, 2021 was $0.04 per share. Basic and
diluted number of shares outstanding was 224,021,985 for 2021. Basic and diluted loss per share for the year ended December 31, 2020
was $0.14 per share. Basic and diluted number of shares outstanding was 59,908,938 for 2020.



Going
concern



We
have yet to establish any history of profitable operations. For the year ended December 31, 2021, the Company incurred a net loss of
$8,253,124 and used cash in operating activities of $3,418,568, and at December 31, 2021 the Company had a stockholders’ deficit
of $4,611,314. These factors raise substantial doubt about our ability to continue as a going concern within one year after the date
the financial statements are issued. This going concern opinion could materially limit our ability to raise additional funds through
the issuance of new debt or equity securities and future reports on our financial statements may also include an explanatory paragraph
with respect to our ability to continue as a going concern.



At
December 31, 2021, the Company had cash on hand in the amount of $23,442. Subsequent to December 31, 2020, the Company issued convertible
notes payable and received net proceeds of $245,275 and received $100,000 and $17,000 as short term loans. Management estimates that
the current funds on hand will be sufficient to continue operations through the next six months. The Company’s ability to continue
as a going concern is dependent upon improving its profitability and the continuing financial support from its shareholders. Management
believes the existing shareholders or external financing will provide the additional cash to meet the Company’s obligations as
they become due. No assurance can be given that any future financing, if needed, will be available or, if available, that it will be
on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, if needed, it may contain
undue restrictions on its operations, in the case of debt financing, or cause substantial dilution for its stockholders, in the case
of equity financing



Critical
Accounting Policies and Estimates



Our
financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP.
GAAP requires us to make estimates and assumptions that affect the reported amounts in our financial statements including various allowances
and reserves for accounts receivable and inventories, the estimated lives of long-lived assets and trademarks and trademark licenses,
as well as claims and contingencies arising out of litigation or other transactions that occur in the normal course of business. The
following summarizes our most significant accounting and reporting policies and practices:



13







Use
of estimates



The
preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant accounting
estimates include certain assumptions related to, among others, impairment analysis of long-term assets, valuation allowance on deferred
income taxes, assumptions used in valuing stock instruments issued for services, assumptions made in valuing derivative liabilities,
and the accrual of potential liabilities. Actual results may differ from these estimates.



Revenue
Recognition



The
Company follows the guidance of Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers”.
Product revenue and costs of sales are recognized when control of the products transfers to our customer, which generally occurs upon
shipment from our facilities. The Company’s performance obligations are satisfied at that time. The Company does not have any significant
contracts with customers requiring performance beyond delivery, and contracts with customers contain no incentives or discounts that
could cause revenue to be allocated or adjusted over time. The Company historically has offered no discounts, rebates, rights of return,
or other allowances to clients which would result in the establishment of reserves against revenue.



Stock
Compensation



The
Company issues stock options, warrants, and shares of common stock as share-based compensation to employees and non-employees. The Company
accounts for its share-based compensation to employees in accordance with FASB ASC 718, Compensation – Stock Compensation
(Topic 718). Stock-based compensation cost is measured at the grant date, based on the estimated fair value of the award, and is recognized
as expense over the requisite service period. Recognition of compensation expense for non-employees is in the same period and manner
as if the Company had paid cash for the services.



Convertible
Notes with Fixed Rate Conversion Options



The
Company may enter into convertible notes, some of which contain, predominantly, fixed rate conversion features, whereby the outstanding
principal and accrued interest may be converted by the holder, into common shares at a fixed discount to the market price of the common
stock at the time of conversion. This results in a fair value of the convertible note being equal to a fixed monetary amount. The Company
records the convertible note liability at its fixed monetary amount by measuring and recording a premium, as applicable, on the Note
date with a charge to interest expense in accordance with ASC 480 - “Distinguishing Liabilities from Equity”.



Recently
Issued Accounting Pronouncements



See
Note 1 to the Consolidated Financial Statements.



14







Item
7A. Quantitative and Qualitative Disclosures About Market Risk.



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



Item
8. Financial Statements and Supplementary Data.



The
financial statements together with the report of our independent registered public accounting firm, required to be filed pursuant to
this Item 8 are appended to this Annual Report on Form 10-K. An index of those consolidated financial statements is found in Item 15
of this Annual Report on Form 10-K.



Item
9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.



None



Item
9A. Controls and Procedures.



Disclosure
Controls and Procedures



We
have established disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports
filed or submitted under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the rules
and forms of the SEC, and that information relating to the Company is accumulated and communicated to management, including our principal
officers, as appropriate to allow timely decisions regarding required disclosure. Our Chief Executive Officer has evaluated the effectiveness
of our disclosure controls and procedures as of December 31, 2021, and have concluded that our disclosure controls and procedures were
not effective as of December 31, 2021 due to material weaknesses in our internal control over financial reporting as described below.



Management’s
Annual Report on Internal Control over Financial Reporting



Management
is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Exchange Act Rule 13a-15.
Internal control over financial reporting is defined in Rule 13a-15(f) and 15(d)-15(f) under the Exchange Act as a process designed to
provide reasonable assurance to the Company’s management and Board of Directors regarding the preparation and fair presentation
of published financial statements. Management conducted an assessment of the Company’s internal control over financial reporting
as of December 31, 2021 based on the framework and criteria established by the Committee of Sponsoring Organizations of the Treadway
Commission in Internal Control-Integrated Framework (2013) (COSO). Based on the assessment, management concluded that, as of December
31, 2021, the Company’s internal controls over financial reporting were not effective.



We
identified material weaknesses in our internal controls over financial reporting. A material weakness is a deficiency, or a combination
of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement
of our financial statements will not be prevented or detected on a timely basis.



The
material weaknesses identified include (i) we had an insufficient number of personnel appropriately qualified to perform control design,
execution and monitoring activities; (ii) we did not have written documentation of our internal control policies and procedures, including
written policies and procedures to ensure the correct application of accounting and financial reporting with respect to the current requirements
of U.S. GAAP and SEC disclosure requirements; (iii) we had ineffective controls over our financial statement close and reporting process
and did not provide reasonable assurance that accounts were complete and accurate and agreed to detailed support and that reconciliations
of accounts were properly performed, reviewed and approved, (iv) we did not maintain effective controls over the recording and approval
of recurring and non-recurring journal entries and (v) we had inadequate segregation of duties consistent with control objectives.



Notwithstanding
the identified material weaknesses, management has concluded that the Financial Statements included in this Annual Report on Form 10-K
present fairly, in all material respects, the Company’s financial position, results of operations and cash flows for the periods
disclosed in conformity with U.S. GAAP.



Planned
Remediation of Material Weaknesses



Our
management has been actively engaged in developing and implementing remediation plans to address material weaknesses described above.
These remediation efforts are ongoing and include or are expected to include preparation of written documentation of our internal control
policies and procedures, increasing personnel resources and technical accounting expertise within the accounting function, and to hire
one or more additional personnel. During the third and fourth quarters of 2020, and as of the date of this Report, we continue to work
with an outside consultant with experience and expertise in U.S. GAAP and public company SEC accounting and reporting requirements to
assist management with its accounting and reporting of complex and/or non-recurring transactions and related disclosures.



15







Changes
in Internal Control over Financial Reporting



There
were no changes in internal control over financial reporting (as defined by Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during
the year ended December 31, 2021, that have materially affected, or are reasonably likely to materially affect, our internal control
over financial reporting.



Inherent
Limitations on Effectiveness of Controls



Our
management, including our Chief Executive Officer, intends that our disclosure controls and procedures and internal control over financial
reporting are designed to provide reasonable assurance of achieving their objectives. However, our management does not expect that our
disclosure controls and procedures or our internal control over financial reporting will prevent all errors and all fraud. A control
system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control
system are met. Further, 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. Because of the inherent limitations in all control systems, no evaluation of controls
can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. These inherent limitations
include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of a simple error or mistake.
Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by management
override of the controls. The design of any system of controls also is based in part upon certain assumptions about the likelihood of
future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions;
over time, controls may become inadequate because of changes in conditions, or the degree of compliance with policies or procedures may
deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and
not be detected.



Item
9B. Other Information.



None.



16







PART
III



Item
10. Directors, Executive Officers and Corporate Governance.



The
following table sets forth the name and age of officers and director as of the date hereof. Our executive officers are elected annually
by our board of directors. Our executive officers hold their offices until they resign, are removed by the Board, or his successor is
elected and qualified.



Our
management consists of:



|Name                                |  | Age |  | Title                                                     
|----------------------------------- |  | --- |  | ----------------------------------------------------------
|Arthur
    Mikaelian, Ph.D          |  | 60  |  | Chief
    Executive Officer, Chairman, President, Director
|Grant
    Mikaelian                 |  | 29  |  | Executive
    Vice President, Treasurer                   
|Khalid
    Matalka, Ph.D., SI(ASCP) |  | 57  |  | Chief
    Scientific Officer                              



On
November 13, 2020 Mr. Phillip Sands was appointed to serve as Chief Executive Officer. Eric Rice has resigned from all officer and director
positions with the Company.



On
December 21, 2020 Mr. Phillip Sands resigned as Chief Executive Officer and was appointed President.



On
December 21, 2020, in connection with the entry into the Securities Exchange Agreement with Medolife Rx, Inc., Arthur G. Mikaelian, Ph.D
was appointed as member of the Board of Directors of Quanta, Inc. Dr. Mikaelian joins Phillip Sands on our Board, and Mr. Sands continues
to serve as the Company’s President and Director.



On
December 21, 2020, Dr. Mikaelian was also appointed to serve as the Company’s Chief Executive Officer.



On
May



On
January 1, 2021, Mr. Grant Mikaelian was appointed to serve as the Executive Vice President.



On
February 1, 2021, Dr. Khalid Matalka was appointed to serve as the Chief Scientific Officer.



On
March 1, 2021, Ms. Pauline Ranjbar Chaloshtari was appointed to serve as the Executive Assistant, and resigned on February 25, 2022.



Arthur
Mikaelian, P.hD, Newly Appointed Chief Executive Officer, Chairman, President, Director. Dr. Arthur Mikaelian, a pioneer of polarization
technology, has been awarded U.S. Patent 8,097,284 B2 as it pertains to Polarized Scorpion Venom solution and the method for making it.
Dr. Mikaelian’s technical education began at the 2nd Medical Institute of Moscow and continued at the Vernadsky University of Biosphere
Knowledge in Moscow, where he earned his doctorate in Biological Psychology; he then went on to complete his post-doctorate work at Vernadsky.
He also earned an MBA from the University of Bologna in Italy. You can find more about Medolife Rx at: http://medoliferx.com/



Grant
Mikaelian, Newly Appointed Executive Vice President, Treasurer. Mr. Grant Mikaelian is an organized leader with broad experiences
in management and promotion of corporate growth. He has worked with Medolife since 2013, and through his adaptability and expertise with
many tools, Mr. Mikaelian now oversees multiple business departments with a focus on business development, operations, distribution,
product registrations, and project management and coordination.



Khalid
Matalka, Ph.D., SI(ASCP), Newly Appointed Chief Scientific Officer. Professor Khalid Matalka received his BSc and MSc in Medical
Technology in 1986 and 1988 from Yarmouk University, Jordan, and the University of Wisconsin-Milwaukee, USA. Then he received his Ph.D.
in Pathology (Immunology and Cancer therapy) from Ohio State University, USA, in 1992. After finishing his Ph.D., Dr. Matalka joined
Harvard Medical School as a Postdoctoral fellow till 1994. He is an American Board Certified as a Specialist in Immunology (SI-ASCP)
and a member at the American Society for Cancer Research since 1994. Dr. Matalka enrolled in academia as an assistant professor in 1995,
then promoted to associate and then a professor in 2004. Prof. Matalka held a dean position at two different academic institutions. Besides,
Prof. Matalka was a consultant for twenty years to a JPM pharmaceutical company and a hospital diagnostic laboratory. During those 22
years, Prof. Matalka was heavily involved in research mainly on immunomodulation, cancer research, and development of immunological assays.



Board
of Directors



Each
director is elected by the Board and serves until his or her successor is elected and qualified, unless he or she resigns or is removed
earlier. Each of our officers is elected by the Board to a term of one (1) year and serves until his or her successor is duly elected
and qualified, or until he or she is earlier removed from office or resigns.



At
the very least all directors will be reimbursed by the Company for expenses incurred in attending directors’ meetings provided
that the Company has sufficient resources to pay these expenses. The Company will consider in applying for officers and directors’
liability insurance at such time that it has the financial resources to do so.



17







Committees
of the Board of Directors



Concurrent
with having sufficient members and resources, our Board of Directors intends to establish an audit committee and a compensation committee.
The audit committee will review the results and scope of the audit and other services provided by the independent auditors and review
and evaluate the system of internal controls. The compensation committee will review and recommend compensation arrangements for the
officers and employees. No final determination has yet been made as to the memberships of these committees or when we will have sufficient
members to establish committees. We believe that we will need a minimum of three independent directors to have effective committee systems.



As
of the date hereof, we have not established any Board committees.



Family
Relationships



Dr.
Arthur Mikaelian is Grant Mikaelian’s father. No other family relationship exists between any director, executive officer, or any
person contemplated to become such.



Director
Independence



We
currently do not have any independent directors serving on our board of directors.



Possible
Potential Conflicts



The
OTC Markets, on which we have our shares of common stock quoted, does not currently have any director independence requirements.



Certain
conflicts of interest may arise between us and our officer(s) and director(s) in that they may have other business interests in the future
to which they devote their attention, and they may be expected to continue to do so although management time must also be devoted to
our business. As a result, conflicts of interest may arise that can be resolved only through their exercise of such judgment as is consistent
with each officer’s understanding of his/her fiduciary duties to us.



Currently
we have two officers and two directors and will seek to add additional officer(s) and/or director(s) as and when the proper personnel
are located and terms of employment are mutually negotiated and agreed, and we have sufficient capital resources and cash flow to make
such offers.



We
cannot provide assurances that our efforts to eliminate the potential impact of conflicts of interest will be effective.



Involvement
in Certain Legal Proceedings



None
of our directors or executive officers has, during the past ten years:



| | ● | has
    had any bankruptcy petition filed by or against any business of which he was a general partner or executive officer, either at the
    time of the bankruptcy or within two years prior to that time;                                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                      
| | ● | been
    convicted in a criminal proceeding or been subject to a pending criminal proceeding (excluding traffic violations and other minor
    offences);                                                                                                                                                                            
| |   |                                                                                                                                                                                                                                                                                                                                      
| | ● | been
    subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction,
    permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities,
    futures, commodities or banking activities;
| |   |                                                                                                                                                                                                                                                                                                                                      
| | ● | been
    found by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission or the Commodity Futures Trading
    Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended,
    or vacated; or                             
| |   |                                                                                                                                                                                                                                                                                                                                      
| | ● | been
    subject or a party to or any other disclosable event required by Item 401(f) of Regulation S-K.                                                                                                                                                                                                                             



18







Code
of Business Conduct and Ethics



Upon
incorporation we adopted a written code of ethics applicable to our board of directors, officers and employees in accordance with applicable
Federal and states securities laws. Our board of directors shall oversee compliance with the code of ethics as it relates to the Company
through an officer designated by the board. Employees are required to report known and suspected breaches of our code of ethics to an
appropriate supervisor, or in the case of officers and directors, to a senior officer designated by our board of directors. Our code
of ethics is designed to deter wrongdoing and to promote:



| | ● | honest
    and ethical conduct;                                                                                                                                                              
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                              
| | ● | full,
    fair, accurate, timely and understandable disclosure in reports and documents that we will file with securities regulators and in
    our other public communications;             
| |   |                                                                                                                                                                                              
| | ● | compliance
    with applicable laws, rules and regulations, including insider trading compliance; and                                                                                        
| |   |                                                                                                                                                                                              
| | ● | accountability
    for adherence to the code and prompt internal reporting of violations of the code, including illegal or unethical behavior regarding
    accounting or auditing practices.



A
copy of our Code of Business Conduct and Ethics has been filed with the Securities and Exchange Commission as Exhibit 14.1 to our Registration
Statement filed on Form S-1 on June 1, 2017



Delinquent
Section 16(a) Reports



Section
16(a) of the Exchange Act requires our directors, executive officers and holders of more than 10% of our common stock to file with the
SEC initial statements of beneficial ownership of our securities (Form 3) and statements of changes in beneficial ownership of our securities
(Forms 4 and 5). As of December 31, 2020, our former directors, executive officers and holders of more than 10% of our common stock had
not filed the required reports with the SEC.



Based
on a review of Forms 3 filed in January 2020, the Company believes that each of our former officers and directors: Eric Rice, Jeffrey
Doiron, Blake Gillette and Kirk Westwood filed such forms late. Messrs. Doiron, Gillette and Westwood also each filed a Form 4 in January
2020 each untimely reporting one transaction that occurred in December 2019. Mr. Rice also filed a Form 4 in January 2020 untimely reporting
29 transactions that had occurred between November and December 2019.



19







Item
11. Executive Compensation.



The
following table sets forth all of the compensation awarded to, earned by or paid to our named directors, executive officers and key employees
for the fiscal years ended December 31, 2021 and 2020:



|Name and Principal Position                                                                                |  | Period                                |  | Base Salary ($) |           |  | Option Awards ($)(4) |  |   | All Other Compensation ($)(5)&(6) |  |  | Total ($) | 
|---------------------------------------------------------------------------------------------------------- |  | ------------------------------------- |  | --------------- | --------- |  | -------------------- |  | - | --------------------------------- |  |  | --------- | 
|Arthur Mikaelian  Chief Executive Officer and member of the board of directors                             |  | Fiscal Year ended December 31, 2021   |  |                 | 88,000    |  |                      |  | - |                                   |  |  | 2,429,036 | 
|Non-officer                                                                                                |  | Fiscal Year ended December 31, 2020   |  |                 | -         |  |                      |  | - |                                   |  |  | 1,292,530 | 
|                                                                                                           |  |                                       |  |                 |           |  |                      |  |   |                                   |  |  |           | 
|Phillip Sands  Formerly Chief Executive Officer, currently President and member of the board of directors. |  | December 4, through December 31, 2020 |  |                 | 8,000     |  |                      |  | - |                                   |  |  | 465,000   | 
|                                                                                                           |  |                                       |  |                 |           |  |                      |  |   |                                   |  |  |           | 
|Eric Rice (1) Former Chief Executive Officer                                                               |  | Fiscal Year ended December 31, 2020   |  |                 | 113,900   |  |                      |  | - |                                   |  |  | -         | 
|                                                                                                           |  |                                       |  |                 |           |  |                      |  |   |                                   |  |  |           | 
|Jeffrey Doiron Former President (2)                                                                        |  | Fiscal Year ended December 31, 2020   |  |                 | 77,938    |  |                      |  | - |                                   |  |  | -         | 
|                                                                                                           |  |                                       |  |                 |           |  |                      |  |   |                                   |  |  |           | 
|Kirk Westwood Former Vice President (2                                                                     |  | Fiscal Year ended December 31, 2020   |  |                 | 57,699    |  |                      |  | - |                                   |  |  | 20,807    | 
|                                                                                                           |  |                                       |  |                 |           |  |                      |  |   |                                   |  |  |           | 
|Blake Gillette (3)                                                                                         |  | Fiscal Year ended December 31, 2020   |  |                 | 72,703    |  |                      |  | - |                                   |  |  | -         | 
|                                                                                                           |  |                                       |  |                 |           |  |                      |  |   |                                   |  |  |           | 
|Grant Mikaelian Executive Vice President                                                                   |  | Fiscal Year ended December 31, 2021   |  |                 | 36,000    |  |                      |  | - |                                   |  |  | -         | 
|                                                                                                           |  |                                       |  |                 |           |  |                      |  |   |                                   |  |  |           | 
|Khalid Matalka Chief Scientific Officer                                                                    |  | Fiscal Year ended December 31, 2021   |  |                 | 30,000    |  |                      |  | - |                                   |  |  | 4,758.35  | 
|                                                                                                           |  |                                       |  |                 |           |  |                      |  |   |                                   |  |  |           | 
|Pauline Ranjbar Chaloshtari Executive Assistant                                                            |  | Fiscal Year ended December 31, 2021   |  |                 | 72,166.28 |  |                      |  | - |                                   |  |  | 3,721.60  | 



20







|(1) | Appointed
    June 6, 2018, resigned as Chief Executive Officer December 4, 2020.                                                                                                                                                                                                         
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                           
|(2) | Appointed
    June 6, 2018, resigned, officer position December 4, 2020.                                                                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                                                           
|(3) | Resigned
    officer position December 4, 2020.                                                                                                                                                                                                                                           
|    |                                                                                                                                                                                                                                                                                           
|(4) | The
    amounts reported in this column represent the aggregate grant date fair value of option awards computed in accordance with FASB ASC
    Topic 718 by utilizing the Black-Scholes option-pricing model.                                                                            
|    |                                                                                                                                                                                                                                                                                           
|(5) | Dr.
    Mikaelian was awarded 8,000,000 shares of restricted common shares in 2019. 2,250,000 shares vested in 2019 and were valued at $2,317,868,
    2,500,000 shares vested in 2020 and were valued at $1,292,530, and additional 3,250,000 vested in 2021 and were valued at $486,838.
|    |                                                                                                                                                                                                                                                                                           
|(6) | The
    Preferred Series A shares were valued by and independent valuation professional to be $0.186 per share on April 14, 2020 for a total
    of approximately $465,000, based on the control features of the shares.                                                                  



Director
Compensation



We
have no arrangement to compensate directors for their services in their capacity as directors. Directors are not paid for meetings attended.
However, we intend to review and consider future proposals regarding board compensation. All travel and lodging expenses associated with
corporate matters are reimbursed by us, if and when incurred.



Pension
Table



None.



Retirement
Plans



We
do not offer any annuity, pension, or retirement benefits to be paid to any of our officers, directors, or employees in the event of
retirement. There are also no compensatory plans or arrangements with respect to any individual named above which results or will result
from the resignation, retirement, or any other termination of employment with our company, or from a change in the control of our Company.



Compensation
Committee



We
do not have a separate compensation committee. Instead, our Board reviews and approves executive compensation policies and practices,
reviews salaries and bonuses for other officers, administers our stock option plans and other benefit plans, if any, and considers other
matters that may be brought forth to it.



Risk
Management Considerations



We
believe our compensation policies and practices for our employees, including our executive officers, do not create risks that are reasonably
likely to have a material adverse effect on our Company.



21







Item
12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.



The
following table sets forth information known to the Company regarding beneficial ownership of the Company’s common stock as of
April 14, 2021 by:



| | ● | each
    person known by the Company to be the beneficial owner of more than 5% of outstanding Company common stock;
| | - | --------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                     
| | ● | each
    of the Company’s executive officers and directors; and                                                     
| |   |                                                                                                                     
| | ● | all
    executive officers and directors of the Company as a group.                                                 



Beneficial
ownership is determined according to the rules of the SEC, which generally provide that a person has beneficial ownership of a security
if he, she or it possesses sole or shared voting or investment power over that security, including options and warrants that are currently
exercisable or exercisable within 60 days. Common stock issuable upon exercise of options or warrants currently exercisable or exercisable
within 60 days are deemed outstanding solely for purposes of calculating the percentage of class and percentage of total voting power
of the beneficial owner thereof.



The
beneficial ownership of the Company’s common stock is based on 406,590,858 shares of Company common stock issued and outstanding
as of April 11, 2022.



Unless
otherwise indicated, management believes that each person named in the table below has sole voting and investment power with respect
to all shares of management common stock beneficially owned by him or her.



|Name And Address (1)                                                     |  | Beneficially Owned |            |  | Percentage Owned (2) | 
|------------------------------------------------------------------------ |  | ------------------ | ---------- |  | -------------------- | 
|Arthur Mikaelian, PhD, Chairman, Chief Executive Officer – Common shares |  |                    | 8,000,000  |  |                      | 
|Preferred A shares                                                       |  |                    | 2,500,000  |  |                      | 
|Preferred B shares                                                       |  |                    | 9,000      |  |                      | 
|All directors and officers as a group (1 person)                         |  |                    | 10,509,000 |  |                      | 








| | (1) | The
    address for all officers, directors and beneficial owners is 3606 W Magnolia Blvd, Burbank, Ca 91505.
| | --- | -------------------------------------------------------------------------------------------------------------



Arthur
Mikaelian was awarded 8,000,000 shares of restricted common stock of which 8,000,000 have vested within 60 days of the filing of this
report. In addition, the Company issued 2,500,000 shares of Series A Preferred Stock in conjunction with the closing of the Control Block
Transfer Agreement. The preferred shares entitle the holder to voting rights equal to 51% of the shares of common stock outstanding as
of the date of this report. In addition, the Company issued 9,000 shares of Series B Preferred Stock. The preferred shares entitle the
holder to voting rights equal to 54% of the shares of common stock outstanding as of the date of this report.



Long-Term
Incentive Plans and Awards



We
do not have any long-term incentive plans that provide compensation intended to serve as incentive for performance. No individual grants
or agreements regarding future payouts under non-stock price-based plans have been made to any executive officer or any director or any
employee or consultant since our inception; accordingly, no future payouts under non-stock price-based plans or agreement s have been
granted or entered into or exercised by our officer or director or employees or consultants since we were founded.



22







Grants
of Plan-Based Awards Table



None
of our named executive officers received any grants of stock, option awards or other plan-based awards during the years ended December
31, 2021 and December 31, 2020. Arthur Mikaelian was awarded 8,000,000 shares in restricted common in 2019 prior to becoming an officer
and director.



Options
Exercised and Stock Vested Table



On
June 27, 2019, our board of directors adopted the Quanta, Inc. 2019 Omnibus Stock Incentive Plan (the “2019 Plan”). The following
is a summary of the principal features of the 2019 Plan:



|Provision
    of Plan      |  | Description                                                                                                                                                                                    
|-------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Eligible
    Participants: |  | Employees, directors, and consultants of the Company, any related entity, and any successor entity that adopts the 2019 Plan.                                                                  
|                           |  |                                                                                                                                                                                                
|Share
    Reserve:         |  | ●                                                                                                                                                                                              
|                           |  | ●                                                                                                                                                                                              
|                           |  |                                                                                                                                                                                                
|Award
    Types:           |  | ●                                                                                                                                                                                              
|                           |  | ●                                                                                                                                                                                              
|                           |  | ●                                                                                                                                                                                              
|                           |  | ●                                                                                                                                                                                              
|                           |  | ●                                                                                                                                                                                              
|                           |  | ●                                                                                                                                                                                              
|                           |  |                                                                                                                                                                                                
|Vesting:                   |  | Determined by the board of directors.                                                                                                                                                          
|                           |  |                                                                                                                                                                                                
|Award
    Limits:          |  | No more than 1,200,000 shares may be issued to a single participant pursuant to stock options and stock appreciation rights in a calendar year.                                                
|                           |  |                                                                                                                                                                                                
|Repricings:                |  | Repricing of outstanding stock awards is not permitted without the approval of the Company’s stockholders, except for certain ratable capitalization adjustments as set forth in the 2019 Plan.
|                           |  |                                                                                                                                                                                                
|Plan
    Termination Date: |  | June 27, 2029.                                                                                                                                                                                 



On
January 14, 2022, our board of directors adopted the Quanta, Inc. 2022 Omnibus Stock Incentive Plan (the “2022 Plan”). The
following is a summary of the principal features of the 2022 Plan:



|Provision
    of Plan      |  | Description                                                                                                                                                                                    
|-------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Eligible
    Participants: |  | Employees, directors, and consultants of the Company, any related entity, and any successor entity that adopts the 2022 Plan.                                                                  
|                           |  |                                                                                                                                                                                                
|Share
    Reserve:         |  | ●                                                                                                                                                                                              
|                           |  | ●                                                                                                                                                                                              
|                           |  |                                                                                                                                                                                                
|Award
    Types:           |  | ●                                                                                                                                                                                              
|                           |  | ●                                                                                                                                                                                              
|                           |  | ●                                                                                                                                                                                              
|                           |  | ●                                                                                                                                                                                              
|                           |  | ●                                                                                                                                                                                              
|                           |  | ●                                                                                                                                                                                              
|                           |  |                                                                                                                                                                                                
|Vesting:                   |  | Determined by the board of directors.                                                                                                                                                          
|                           |  |                                                                                                                                                                                                
|Award
    Limits:          |  | No more than 30,000,000 shares may be issued to a single participant pursuant to stock options and stock appreciation rights in a calendar year.                                               
|                           |  |                                                                                                                                                                                                
|Repricings:                |  | Repricing of outstanding stock awards is not permitted without the approval of the Company’s stockholders, except for certain ratable capitalization adjustments as set forth in the 2022 Plan.
|                           |  |                                                                                                                                                                                                
|Plan
    Termination Date: |  | January 14, 2032.                                                                                                                                                                              



Outstanding
Equity Awards at Fiscal Year-End



None
of our named executive officers had any outstanding stock or option awards as of the fiscal years ended December 31, 2021 and December
31, 2020. The Company has not issued any awards to its named executive officers. The Company and its board may grant awards as it sees
fit to its employees as well as key consultants and other outside professionals.



Securities
Authorized for Issuance under Equity Compensation Plans



None.



Description
of our Capital Stock



We
were incorporated under the laws of the State of Nevada on April 28, 2016. The Company is authorized to issue 2,975,000,000 shares of
common stock, par value $0.001 per share (the “Common Stock”) and 25,000,000 shares of preferred stock, par value $0.001
per share (the “Preferred Stock”).



23







Preferred
Stock



Our
articles of incorporation authorize the issuance of 25,000,000 shares of Preferred Stock with designations, rights and preferences determined
from time to time by our board of directors. 2,510,000 shares of Preferred Stock have been designated, issued and were outstanding as
of the date of this report. Accordingly, our board of directors is empowered, without stockholder approval, to issue up to 22,490,000
shares of Preferred Stock with voting, liquidation, conversion, or other rights that could adversely affect the rights of the holders
of the common stock. Although we have no present intention to issue any shares of Preferred Stock, there can be no assurance that we
will not do so in the future.



Among
other rights, our board of directors may determine, without further vote or action by our stockholders:



| | ● | the
    number of shares and the designation of the series;                                                                                                                                                                                                      
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | ● | whether
    to pay dividends on the series and, if so, the dividend rate, whether dividends will be cumulative and, if so, from which date or
    dates, and the relative rights of priority of payment of dividends on shares of the series;                    
| | ● | whether
    the series will have voting rights in addition to the voting rights provided by law and, if so, the terms of the voting rights;                                                                                                                      
| | ● | whether
    the series will be convertible into or exchangeable for shares of any other class or series of stock and, if so, the terms and conditions
    of conversion or exchange;                                                                             
| | ● | whether
    or not the shares of the series will be redeemable and, if so, the dates, terms and conditions of redemption and whether there will
    be a sinking fund for the redemption of that series and, if so, the terms and amount of the sinking fund; and
| | ● | the
    rights of the shares of the series in the event of our voluntary or involuntary liquidation, dissolution or winding up and the relative
    rights or priority, if any, of payment of shares of the series.                                              



Series
A Preferred Stock Description



On
April 14, 2020, the Company filed a Certificate of Designation for the Company’s Series A Preferred Stock with the Secretary of
State of Nevada designating 2,500,000 shares of its authorized preferred stock as Series A Preferred Stock, par value of $0.001 per share.
The Series A Preferred Stock is not entitled to receive any dividends or liquidation preference and are not convertible into shares of
the Company’s common stock. The holders of the Series A Preferred Stock, in the aggregate, have voting power equal to 51% of the
total votes of all of the outstanding common and preferred stock of the Company entitled to vote. Accordingly, each share of Series A
Preferred Stock shall have voting rights equal to one and one-tenth (1.1) times a fraction, the numerator of which is the shares of outstanding
common stock and undesignated preferred stock of the Company and the denominator of which is number of shares of outstanding Series A
Preferred Stock. With respect to all matters upon which stockholders are entitled to vote or give consent, the holders of the outstanding
shares of Series A Preferred Stock shall vote with the holders of the common stock and any outstanding preferred stock without regard
to class, except as to those matters on which separate class voting is required by applicable law or the Company’s Articles of
Incorporation.



2,500,000
issued and outstanding as of the filing report.



Series
B and C Convertible Preferred Stock



On
January 12, 2021, the Company filed Certificates of Designation establishing the designations, preferences, limitations and relative
rights of the Company’s Series B Convertible Preferred Stock and Series C Convertible Preferred Stock in the State of Nevada.



24







Series
B Convertible Preferred Stock - Description



The
terms of the Certificate of Designation of the Series B Convertible Preferred Stock, which was filed with the State of Nevada on January
12, 2021, state that the shares of Series B Convertible Preferred Stock are convertible into fifty-four percent (54%) of the issued and
outstanding shares of the Company’s common stock on a fully converted basis. Each share of Series B Preferred Stock shall be convertible
into 6,750 shares of Common Stock (“Conversion Ratio”), at the option of a Holder, at any time and from time to time, from
and after the issuance of the Series B Preferred Stock; provided that, for a period of twenty for (24) months from the Issuance Date,
if the Company issues shares of common stock, including common stock as the result of the purchase, exercise or conversion of outstanding
derivative or convertible securities (or securities, including any derivative securities, containing the right to purchase, exercise
or convert into shares of common stock) (the “Dilution Shares”) such that the outstanding number of shares of common stock
on a fully diluted basis shall be greater than one hundred twelve million five hundred thousand (112,500,000) shares (inclusive of conversions
of Series B Preferred Stock at the Conversion Ratio immediately above), then the Conversion Ratio for the Series B Preferred Stock then
outstanding and unconverted as of the date the Dilution Shares are issued shall be adjusted to equal the Conversion Ratio multiplied
by a fraction, the numerator of which shall be the number of shares outstanding on a fully diluted basis after the issuance of the Dilution
Shares, and the denominator shall be one hundred twelve million five hundred thousand (112,500,000). Each holder of the Series B Preferred
Stock shall have the right to vote on any matter that may from time to time be submitted to the Company’s shareholders for a vote,
on an as-converted basis, either by written consent or by proxy.



9,000
issued and outstanding as of the filing report.



Series
C Convertible Preferred Stock - Description



The
terms of the Certificate of Designation of the Series C Convertible Preferred Stock, which was filed with the State of Nevada on January
12, 2021, state that such Series C Convertible shares have a par value of $0.00001 per share and a stated value of $100 per share (the
“Stated Value”) and each Series C Preferred Share shall be convertible into 6,750 shares of Common Stock (“Conversion
Ratio”), at the option of a Holder, at any time and from time to time, from and after the issuance of the Series C Preferred Stock;
provided that, for a period of twenty for (24) months from the Issuance Date, if the Company issues shares of common stock, including
common stock as the result of the purchase, exercise or conversion of outstanding derivative or convertible securities (or securities,
including any derivative securities, containing the right to purchase, exercise or convert into shares of common stock) (the “Dilution
Shares”) such that the outstanding number of shares of common stock on a fully diluted basis shall be greater than one hundred
twelve million five hundred thousand (112,500,000) shares (inclusive of conversions of Series C Preferred Stock at the Conversion Ratio
immediately above), then the Conversion Ratio for the Series C Preferred Stock then outstanding and unconverted as of the date the Dilution
Shares are issued shall be adjusted to equal the Conversion Ratio multiplied by a fraction, the numerator of which shall be the number
of shares outstanding on a fully diluted basis after the issuance of the Dilution Shares, and the denominator shall be one hundred twelve
million five hundred thousand (112,500,000). Subject to the beneficial ownership limitations of 9.99%, set forth in Section 5 (b) of
the attached Series C Convertible Preferred Stock Certificate of Designation, each holder of the Series C Preferred Stock shall have
the right to vote on any matter that may from time to time be submitted to the Company’s shareholders for a vote, on an as converted
basis, either by written consent or by proxy.



1,000
issued and outstanding as of the filing report.



The
foregoing descriptions of the terms of the Certificates of Designation are qualified in their entirety by the Certificates of Designation
that were filed with the Nevada Secretary of State on April 14, 2020 and January 12, 2021.



Any
of Preferred Stock or any rights to purchase preferred shares may have the effect of making it more difficult for a third party to acquire
control of us. This may delay, defer or prevent a change of control in our Company or an unsolicited acquisition proposal. The issuance
of Preferred Stock also could decrease the amount of earnings attributable to, and assets available for distribution to, the holders
of our Common Stock and could adversely affect the rights and powers, including voting rights, of the holders of our Common Stock.



Common
Stock



Our
articles of incorporation authorize the issuance of 500,000,000 shares of Common Stock. There are 100,975,328 shares of our Common Stock
issued and outstanding at April 9, 2021. On November 20, 2020, the Board of Directors approved an increase in the Company’s authorized
shares of Common Stock from 100,000,000 to 500,000,000 shares by Unanimous Written Consent. The Secretary of State of Nevada approved
the share increase. The holders of our Common Stock:



| | ● | have
    equal ratable rights to dividends from funds legally available for payment of dividends when, as and if declared by the board of
    directors;                    
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | ● | are
    entitled to share ratably in all of the assets available for distribution to holders of Common Stock upon liquidation, dissolution
    or winding up of our affairs;
| | ● | do
    not have preemptive, subscription or conversion rights, or redemption or access to any sinking fund; and                                                             
| | ● | are
    entitled to one non-cumulative vote per share on all matters submitted to stockholders for a vote at any meeting of stockholders                                    



25







See
Plan of Distribution regarding negative implications of being classified as a “Penny Stock.”



Authorized
but Unissued Capital Stock



Nevada
law does not require stockholder approval for the issuance of authorized shares. These additional shares may be used for a variety of
corporate purposes, including future public offerings to raise additional capital or to facilitate corporate acquisitions.



One
of the effects of the existence of unissued and unreserved Common Stock (or Preferred Stock) may be to enable our board of directors
to issue shares to persons friendly to current management, which issuance could render more difficult or discourage an attempt to obtain
control of our board by means of a merger, tender offer, proxy contest or otherwise, and thereby protect the continuity of our management
and possibly deprive the stockholders of opportunities to sell their shares of our Common Stock at prices higher than prevailing market
prices.



Shareholder
Matters



As
an issuer of “penny stock” the protection provided by the federal securities laws relating to forward looking statements
does not apply to us if our shares are considered to be penny stocks (which they currently are and probably will be for the foreseeable
future). Although the federal securities law provide a safe harbor for forward-looking statements made by a public company that files
reports under the federal securities laws, this safe harbor is not available to issuers of penny stocks. As a result, we will not have
the benefit of this safe harbor protection in the event of any claim that the material provided by us, including this Annual Report,
contained a material misstatement of fact or was misleading in any material respect because of our failure to include any statements
necessary to make the statements not misleading.



As
a Nevada corporation, we are subject to the Nevada Revised Statutes (“NRS” or “Nevada law”). Certain provisions
of Nevada law described below create rights that might be deemed material to our shareholders. Other provisions might delay or make more
difficult acquisitions of our stock or changes in our control or might also have the effect of preventing changes in our management or
might make it more difficult to accomplish transactions that some of our shareholders may believe to be in their best interests.



Directors’
Duties. Section 78.138 of the Nevada law allows our directors and officers, in exercising their powers to further our interests,
to consider the interests of our employees, suppliers, creditors and shippers. They can also consider the economy of the state and the
nation, the interests of the community and of society and our long-term and short-term interests and shareholders, including the possibility
that these interests may be best served by our continued independence. Our directors may resist a change or potential change in control
if they, by a majority vote of a quorum, determine that the change or potential change is opposed to or not in our best interest. Our
board of directors may consider these interests or have reasonable grounds to believe that, within a reasonable time, any debt which
might be created as a result of the change in control would cause our assets to be less than our liabilities, render us insolvent, or
cause us to file for bankruptcy protection



Dissenters’
Rights. Among the rights granted under Nevada law which might be considered material is the right for shareholders to dissent from
certain corporate actions and obtain payment for their shares (see NRS 92A.380-390). This right is subject to exceptions, summarized
below, and arises in the event of mergers or plans of exchange. This right normally applies if shareholder approval of the corporate
action is required either by Nevada law or by the terms of the articles of incorporation.



A
shareholder does not have the right to dissent with respect to any plan of merger or exchange, if the shares held by the shareholder
are part of a class of shares which are:



| | ● | listed
    on a national securities exchange,                                                            
| | - | ---------------------------------------------------------------------------------------------------------
| | ● | included
    in the national market system by the Financial Industry Regulatory Authority (“FINRA”), or \
| | ● | held
    of record by not less than 2,000 holders.                                                       



This
exception notwithstanding, a shareholder will still have a right of dissent if it is provided for in the articles of incorporation or
if the shareholders are required under the plan of merger or exchange to accept anything but cash or owner’s interests, or a combination
of the two, in the surviving or acquiring entity, or in any other entity falling in any of the three categories described above in this
paragraph.



26







Inspection
Rights. Nevada law also specifies that shareholders are to have the right to inspect company records (see NRS 78.105). This right
extends to any person who has been a shareholder of record for at least six months immediately preceding his demand. It also extends
to any person holding, or authorized in writing by the holders of, at least 5% of outstanding shares. Shareholders having this right
are to be granted inspection rights upon five days’ written notice. The records covered by this right include official copies of:



| | i.   | the
    articles of incorporation, and all amendments thereto,                                                                                                                                                                                                                
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | ii.  | bylaws
    and all amendments thereto; and                                                                                                                                                                                                                                    
| | iii. | a
    stock ledger or a duplicate stock ledger, revised annually, containing the names, alphabetically arranged, of all persons who are
    stockholders of the corporation, showing their places of residence, if known, and the number of shares held by them, respectively.



In
lieu of the stock ledger or duplicate stock ledger, Nevada law provides that the corporation may keep a statement setting out the name
of the custodian of the stock ledger or duplicate stock ledger, and the present and complete post office address, including street and
number, if any, where the stock ledger or duplicate stock ledger specified in this section is kept.



Control
Share Acquisitions. Sections 78.378 to 78.3793 of Nevada law contain provisions that may prevent any person acquiring a controlling
interest in a Nevada-registered company from exercising voting rights. To the extent that these rights support the voting power of minority
shareholders, these rights may also be deemed material. These provisions will be applicable to us as soon as we have 200 shareholders
of record with at least 100 of these having addresses in Nevada as reflected on our stock ledger. While we do not yet have the required
number of shareholders in Nevada or elsewhere, it is possible that at some future point we will reach these numbers and, accordingly,
these provisions will become applicable. We do not intend to notify shareholders when we have reached the number of shareholders specified
under these provisions of Nevada law. Shareholders can learn this information pursuant to the inspection rights described above and can
see the approximate number of our shareholders by checking under Item 5 of our Annual Report on Form 10-K. This form is filed with the
Securities and Exchange Commission within 90 days after the close of each fiscal year hereafter. You can view these and our other filings
at www.sec.gov in the “EDGAR” database.



Under
NRS Sections 78.378 to 78.3793, an acquiring person who acquires a controlling interest in company shares may not exercise voting rights
on any of these shares unless these voting rights are granted by a majority vote of our disinterested shareholders at a special shareholders’
meeting held upon the request and at the expense of the acquiring person. If the acquiring person’s shares are accorded full voting
rights and the acquiring person acquires control shares with a majority or more of all the voting power, any shareholder, other than
the acquiring person, who does not vote for authorizing voting rights for the control shares, is entitled to demand payment for the fair
value of their shares, and we must comply with the demand. An “acquiring person” means any person who, individually or acting
with others, acquires or offers to acquire, directly or indirectly, a controlling interest in our shares. “Controlling interest”
means the ownership of our outstanding voting shares sufficient to enable the acquiring person, individually or acting with others, directly
or indirectly, to exercise one-fifth or more but less than one-third, one-third or more but less than a majority, or a majority or more
of the voting power of our shares in the election of our directors. Voting rights must be given by a majority of our disinterested shareholders
as each threshold is reached or exceeded. “Control shares” means the company’s outstanding voting shares that an acquiring
person acquires or offers to acquire in an acquisition or within 90 days immediately preceding the date when the acquiring person becomes
an acquiring person.



These
Nevada statutes do not apply if a company’s articles of incorporation or bylaws in effect on the tenth day following the acquisition
of a controlling interest by an acquiring person provide that these provisions do not apply.



According
to NRS 78.378, the provisions referred to above will not restrict our directors from taking action to protect the interests of our Company
and its shareholders, including without limitation, adopting or executing plans, arrangements or instruments that deny rights, privileges,
power or authority to a holder of a specified number of shares or percentage of share ownership or voting power. Likewise, these provisions
do not prevent directors or shareholders from including stricter requirements in our articles of incorporation or bylaws relating to
the acquisition of a controlling interest in the Company.



Our
articles of incorporation and bylaws do not exclude us from the restrictions imposed by NRS 78.378 to 78.3793, nor do they impose any
more stringent requirements.



27







Certain
Business Combinations. Sections 78.411 to 78.444 of the Nevada law may restrict our ability to engage in a wide variety of transactions
with an “interested shareholder.” As was discussed above in connection with NRS 78.378 to 78.3793, these provisions could
be considered material to our shareholders, particularly to minority shareholders. They might also have the effect of delaying or making
more difficult acquisitions of our stock or changes in our control. These sections of NRS are applicable to any Nevada company with 200
or more stockholders of record and that has a class of securities registered under Section 12 of the 1934 Securities Exchange Act, unless
the company’s articles of incorporation provide otherwise. By the filing of our Registration Statement on Form S-1, we are not
registering our Common Stock under Section 12(g) of the Exchange Act. However upon effectiveness of the Registration Statement on Form
S-1 we became subject to those very statutes.



These
provisions of Nevada law prohibit us from engaging in any “combination” with an interested stockholder for three years after
the interested stockholder acquired the shares that cause him/her to become an interested shareholder, unless he had prior approval of
our board of directors. The term “combination” is described in NRS 78.416 and includes, among other things, mergers, sales
or purchases of assets, and issuances or reclassifications of securities. If the combination did not have prior approval, the interested
shareholder may proceed after the three-year period only if the shareholder receives approval from a majority of our disinterested shares
or the offer meets the requirements for fairness that are specified in NRS 78.441-42. For the above provisions, a “resident domestic
corporation” means a Nevada corporation that has 200 or more shareholders. An “interested stockholder” is defined in
NSR 78.423 as someone who is either:



| | ● | the
    beneficial owner, directly or indirectly, of 10% or more of the voting power of our outstanding voting shares; or                                                                                                          
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | ● | our
    affiliate or associate and who within three years immediately before the date in question, was the beneficial owner, directly or
    indirectly, of 10% or more of the voting power of our outstanding shares at that time.



Amendments
to Bylaws. Our articles of incorporation provide that the power to adopt, alter, amend, or repeal our bylaws is vested exclusively
with the board of directors. In exercising this discretion, our board of directors could conceivably alter our bylaws in ways that would
affect the rights of our shareholders and the ability of any shareholder or group to effect a change in our control; however, the board
would not have the right to do so in a way that would violate law or the applicable terms of our articles of incorporation.



Transfer
Agent



The
Company’s transfer agency is Nevada Agency and Transfer Company (“NATCO”) located at 50 West Liberty Street, Suite
880, Reno, NV 89501. Telephone (775) 322-0626.



Item
13. Certain Relationships and Related Transactions, and Director Independence.



We
have not entered into any transactions with our officers, directors, persons nominated for these positions, beneficial owners of 5% or
more of our common stock, or family members of those persons wherein the amount our total assets for the last two fiscal years. Arthur
Mikaelian executed an agreement with the Company for the license of proprietary supplements (refer to Footnote regarding related parties).
In addition, Dr. Mikaelian entered into a licensing agreement with the Company in 2019. The agreement has been modified. The agreement
predates Dr. Mikaelian’s appointment as an officer and director.



On
May 20, 2019, the Company agreed to issue 8,000,000 shares of the Company’s common stock with vesting terms to Arthur Mikaelian,
Ph.D , a consultant for services. 1,000,000 shares vested immediately, and the balance of 7,000,000 shares have vested 625,000 shares
per quarter over 2.8 years. The award predates Dr. Mikaelian’s appointment as an officer and director.



On
December 21, 2020, the Company entered into a Securities Exchange Agreement with Medolife Rx, Inc., a Wyoming corporation, (“Medolife
Rx”) pursuant to which, the Company agreed to acquire 51% of Medolife Rx from entities controlled by Arthur Mikaelian, Ph.D. in
exchange for 9,000 shares of newly created Series B Convertible Preferred Stock. Prior to this transaction,



Related
Person Transaction Policy



Our
Board of Directors is responsible to approve all related party transactions. We have not adopted written policies and procedures specifically
for related person transactions.



Director
Independence



For
purposes of determining director independence, we have applied the definitions set out in NASDAQ Rule 5605(a)(2). The NASDAQ definition
of “Independent Director” means a person other than an Executive Officer or employee of the Company or any other individual
having a relationship which, in the opinion of the Company’s Board, would interfere with the exercise of independent judgment in
carrying out the responsibilities of a director.



According
to the NASDAQ definition, Mr. Phillip Sands is not an independent director because he currently holds the title of officer in the Company.



28







Item
14. Principal Accounting Fees and Services.



The
following tables present the fees billed for the years ended December 31, 2020 and 2019 by Weinberg & Company.



The
caption “Audit Fees” refers to the aggregate fees billed for the audit of the Company’s financial statements and review
of financial statements included in the Company’s Form 10-Q and other SEC filings or services that were normally provided by the
accountants in connection with statutory and regulatory filings or engagements for such periods. The caption “Audit-Related Fees”
refers to the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit or
review of the Company’s financial statements and are not reported under “Audit Fees”. The caption “Tax Fees”
refers to the aggregate fees billed for professional services rendered for tax compliance, tax advice, and tax planning. The caption
“All Other Fees” refers to the aggregate fees billed for products and services other than the services previously described.



All
services reflected in the following fee tables were pre-approved, respectively, in accordance with the policy of the Board.



|                   |  | Year Ended December 31, 2020 |         |  | Year Ended December 31, 2019 |  
|------------------ |  | ---------------------------- | ------- |  | ---------------------------- | -
|Audit fees         |  | $                            | 62,747  |  |                              | $
|Audit-related fees |  |                              | -       |  |                              |  
|Tax fees           |  |                              | 8,262   |  |                              |  
|All other fees     |  |                              | 63,004  |  |                              |  
|Total Fees         |  | $                            | 134,013 |  |                              | $



Policy
on Pre-Approval by the Board of Services Performed by Independent Auditors.



In
its capacity, the Board pre-approves all audit (including audit-related) and permitted non-audit services to be performed by the independent
auditors. The Board will annually approve the scope and fee estimates for the year-end audit to be performed by the Company’s independent
auditors for the fiscal year. With respect to other permitted services, the Board pre-approves specific engagements, projects and categories
of services on a fiscal year basis, subject to individual project and annual maximums.



Where
You Can Find Additional Information



We
have filed with the SEC this Annual Report on Form 10-K including exhibits. You may read and copy all or any portion of any reports,
statements or other information in the files at Commission’s Public Reference Room located at 100 F Street, NE., Washington, DC
20549, on official business days during the hours of 10 a.m. to 3 p.m.



You
can request copies of these documents upon payment of a duplicating fee by writing to the SEC. You may call the SEC at 1-800-SEC-0330
for further information on the operation of its public reference room. The Company’s filings, including this Annual Report on Form
10-K, will also be available to you on the website maintained by the SEC at http://www.sec.gov.



The
Company’s website is located at http://www.BuyQuanta.com. The Company’s website and the information to be contained on that
site, or connected to that site, are not part of or incorporated by reference into this filing.



29







PART
IV



Item
15. Exhibits, Financial Statement Schedules.



The
following exhibits are incorporated into this Form 10-K Annual Report:





|Exhibit
    Number |  | Description                                                                                                                                                                                                                                                                  
|------------------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                   |  |                                                                                                                                                                                                                                                                              
|2.1                |  | Agreement and Plan of Merger and Reorganization among Freight Solution, Inc., Bioanomaly, Inc. and Quanta Acquisition Corp. (Incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K/A filed with the Securities and Exchange Commission on June 18, 2018)
|                   |  |                                                                                                                                                                                                                                                                              
|3.1                |  | Articles of Incorporation of Quanta, Inc. (Incorporated by reference to Exhibit 3.1 to the S-1 Registration Statement filed with the Securities and Exchange Commission on March 27, 2017)                                                                                   
|                   |  |                                                                                                                                                                                                                                                                              
|3.2                |  | Bylaws of Quanta, Inc. (Incorporated by reference to Exhibit 3.2 to the S-1 Registration Statement filed with the Securities and Exchange Commission on March 27, 2017)                                                                                                      
|                   |  |                                                                                                                                                                                                                                                                              
|3.3                |  | Amended and Restated Articles of Incorporation (Incorporated by reference to Exhibit 4.1 to the Current Report filed with the Securities and Exchange Commission on February 5, 2019)                                                                                        
|                   |  |                                                                                                                                                                                                                                                                              
|4.1                |  | Description of Securities (incorporated by reference to Exhibit 4.1 to the Annual Report on Form 10-K filed with the Securities and Exchange Commission on April 3, 2020)                                                                                                    
|                   |  |                                                                                                                                                                                                                                                                              
|10.1               |  | Conflict of Interest Agreement (Incorporated by reference to Exhibit 10.1 to the S-1 Registration Statement filed with the Securities and Exchange Commission on March 27, 2017)                                                                                             
|                   |  |                                                                                                                                                                                                                                                                              
|10.2               |  | Form of Subscription Agreement dated June 2018 (Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on June 15, 2018)                                                                               
|                   |  |                                                                                                                                                                                                                                                                              
|10.3               |  | Form of Warrant dated June 2018 (Incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on June 15, 2018)                                                                                              
|                   |  |                                                                                                                                                                                                                                                                              
|10.4               |  | Joint Venture Agreement by and between Quanta, Inc. and 2664431 Ontario Inc. dated as of September 5, 2018 (Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on September 25, 2018)             
|                   |  |                                                                                                                                                                                                                                                                              
|10.5               |  | Exclusive License and Joint Venture Agreement dated March 23, 2017 (Incorporated by reference to Exhibit 10.6 to the Transition Report on Form 10-KT filed with the Securities and Exchange Commission on April 16, 2019)                                                    
|                   |  |                                                                                                                                                                                                                                                                              
|10.6               |  | Quanta, Inc. 2019 Omnibus Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of Registrant’s Current Report on Form 8-K filed with the Commission on June 27, 2019)                                                                                             
|                   |  |                                                                                                                                                                                                                                                                              
|10.7               |  | Form of Employment Agreement, dated as of September 4, 2019, by and between Quanta, Inc. and Eric Rice (incorporated by reference to Exhibit 10.1 of Registrant’s Current Report on Form 8-K filed with the Commission on September 5, 2019)                                 
|                   |  |                                                                                                                                                                                                                                                                              
|10.8               |  | Form, of Employment Agreement, dated as of September 4, 2019, by and between Quanta, Inc. and Jeffrey Doiron (incorporated by reference to Exhibit 10.2 of Registrant’s Current Report on Form 8-K filed with the Commission on September 5, 2019)                           
|                   |  |                                                                                                                                                                                                                                                                              
|10.9               |  | Form of Employment Agreement, dated as of September 4, 2019, by and between Quanta, Inc. and Blake Gillette (incorporated by reference to Exhibit 10.3 of Registrant’s Current Report on Form 8-K filed with the Commission on September 5, 2019)                            







30









|10.10         |  | Form of Employment Agreement, dated as of September 4, 2019, by and between Quanta, Inc. and Kirk Westwood (incorporated by reference to Exhibit 10.4 of Registrant’s Current Report on Form 8-K filed with the Commission on September 5, 2019)                            
|------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|              |  |                                                                                                                                                                                                                                                                             
|10.10         |  | Form of Securities Purchase Agreement, dated as of November 25, 2019, by and between Quanta, Inc. and the Purchasers Signatory Thereto (incorporated by reference to Exhibit 10.1 of Registrant’s Current Report on Form 8-K filed with the Commission on November 26, 2019)
|              |  |                                                                                                                                                                                                                                                                             
|10.11         |  | Form of Registration Rights Agreement, dated as of November 25, 2019, by and between Quanta, Inc. and the Purchasers Signatory Thereto (incorporated by reference to Exhibit 10.2 of Registrant’s Current Report on Form 8-K filed with the Commission on November 26, 2019)
|              |  |                                                                                                                                                                                                                                                                             
|10.12         |  | Ten Percent (10%) Convertible Note, dated as of November 25, 2019, issued by Quanta, Inc. in favor of Livingston Asset Management LLC (incorporated by reference to Exhibit 10.3 of Registrant’s Current Report on Form 8-K filed with the Commission on November 26, 2019) 
|              |  |                                                                                                                                                                                                                                                                             
|14.1          |  | Quanta, Inc. Code of Business Ethics and Conduct (Incorporated by reference to Exhibit 14.1 to the S-1 Registration Statement filed with the Securities and Exchange Commission on March 27, 2017)                                                                          
|              |  |                                                                                                                                                                                                                                                                             
|31.1          |  | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                          
|              |  |                                                                                                                                                                                                                                                                             
|31.2          |  | Certification of Interim Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                              
|              |  |                                                                                                                                                                                                                                                                             
|32.1          |  | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                          
|32.2          |  | Certification of Principal Accounting Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                     
|              |  |                                                                                                                                                                                                                                                                             
|101.INS
    * |  | Inline XBRL
    Instance Document.                                                                                                                                                                                                                                          
|              |  |                                                                                                                                                                                                                                                                             
|101.SCH
    * |  | Inline
    XBRL Taxonomy Extension Schema Document.                                                                                                                                                                                                                         
|              |  |                                                                                                                                                                                                                                                                             
|101.CAL
    * |  | Inline
XBRL Taxonomy Extension Calculation Linkbase Document.                                                                                                                                                                                                               
|              |  |                                                                                                                                                                                                                                                                             
|101.DEF
    * |  | Inline
XBRL Taxonomy Extension Definition Linkbase Document.                                                                                                                                                                                                                
|              |  |                                                                                                                                                                                                                                                                             
|101.LAB
    * |  | Inline
    XBRL Taxonomy Extension Label Linkbase Document.                                                                                                                                                                                                                 
|              |  |                                                                                                                                                                                                                                                                             
|101.PRE
    * |  | Inline
XBRL Taxonomy Extension Presentation Linkbase Document.                                                                                                                                                                                                              
|              |  |                                                                                                                                                                                                                                                                             
|104           |  | Cover
    Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)                                                                                                                                                                                



*
Filed along with this document



31







The
following are included as part of this Form 10-K:



|                                                                                                                                     | Page
|------------------------------------------------------------------------------------------------------------------------------------ | ----
|                                                                                                                                     |     
|Consolidated
    Balance Sheets as of December 31, 2021 and December 31, 2020                                                        | F-3 
|                                                                                                                                     |     
|Consolidated
    Statements of Operations for the Years ended December 31, 2021 and December 31, 2020                                | F-4 
|                                                                                                                                     |     
|Consolidated
    Statements of Changes in Stockholders’ (Deficit)/Equity for the Years ended December 31, 2021 and December 31, 2020 | F-5 
|                                                                                                                                     |     
|Consolidated
    Statements of Cash Flows for the Years Ended December 31, 2021 and December 31, 2020                                | F-6 
|                                                                                                                                     |     
|Notes to Consolidated Financial Statements                                                                                           | F-7 



Item
16. Form 10-K Summary.



None.



32









SIGNATURES



Pursuant
to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.



|                          | Quanta,
    Inc.
|------------------------- | ----------------
|                          |                 
|Dated:
    April 15, 2022 | By:             
|                          |                 
|                          |                 



Pursuant
to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons on
behalf of the registrant and in the capacities and on the date indicated.



|Signature                |  | Title                                 |  | Date              
|------------------------ |  | ------------------------------------- |  | ------------------
|                         |  |                                       |  |                   
|/s/
    Arthur Mikaelian |  | Chairman, Chief
    Executive Officer |  | April
    15, 2022
|Arthur
    Mikaelian     |  | (Principal Executive)                 |  |                   





33









QUANTA,
INC.



INDEX
TO CONSOLIDATED FINANCIAL STATEMENTS



|                                                                                                                    | Page
|------------------------------------------------------------------------------------------------------------------- | ----
|                                                                                                                    |     
|Report
    of Independent Registered Public Accounting Firm                                                         | F-2 
|                                                                                                                    |     
|Consolidated Balance Sheets as of December 31, 2020 and December 31, 2019                                           | F-3 
|                                                                                                                    |     
|Consolidated Statements of Operations for the Years ended December 31, 2020 and 2019                                | F-4 
|                                                                                                                    |     
|Consolidated Statements of Changes in Stockholders’ (Deficit)/Equity for the Years ended December 31, 2020 and 2019 | F-5 
|                                                                                                                    |     
|Consolidated Statements of Cash Flows for the Years Ended December 31, 2020 and 2019                                | F-6 
|                                                                                                                    |     
|Notes to Consolidated Financial Statements                                                                          | F-7 





F-1







Report
    of Independent Registered Public Accounting Firm









F-2









QUANTA,
INC. AND SUBSIDIARY

CONSOLIDATED
BALANCE SHEETS



|                                                                                                                                                                                      |  | December 31, 2021 |             |   | December 31, 2020 |  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------- | ----------- | - | ----------------- | -
|ASSETS                                                                                                                                                                                |  |                   |             |   |                   |  
|Current assets:                                                                                                                                                                       |  |                   |             |   |                   |  
|Cash                                                                                                                                                                                  |  | $                 | 23,442      |   |                   | $
|Accounts receivable                                                                                                                                                                   |  |                   | 85          |   |                   |  
|Prepaid production costs                                                                                                                                                              |  |                   | 300,000     |   |                   |  
|Deferred charges, related party                                                                                                                                                       |  |                   | -           |   |                   |  
|Inventories, net of reserve                                                                                                                                                           |  |                   | 98,160      |   |                   |  
|Total current assets                                                                                                                                                                  |  |                   | 421,687     |   |                   |  
|                                                                                                                                                                                      |  |                   |             |   |                   |  
|Equipment, net                                                                                                                                                                        |  |                   | 169,477     |   |                   |  
|Operating lease right-of-use asset, net                                                                                                                                               |  |                   | 279,502     |   |                   |  
|Security deposits                                                                                                                                                                     |  |                   | 16,883      |   |                   |  
|                                                                                                                                                                                      |  |                   |             |   |                   |  
|Total assets                                                                                                                                                                          |  | $                 | 887,549     |   |                   | $
|                                                                                                                                                                                      |  |                   |             |   |                   |  
|LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)                                                                                                                                        |  |                   |             |   |                   |  
|Current liabilities:                                                                                                                                                                  |  |                   |             |   |                   |  
|Accounts payable and accrued expenses                                                                                                                                                 |  | $                 | 666,971     |   |                   | $
|Advances                                                                                                                                                                              |  |                   | 111,000     |   |                   |  
|Notes payable (net of deferred finance charge of $46,617 and $74,817 at December 31, 2021 and December 31, 2020, respectively)                                                        |  |                   | 422,408     |   |                   |  
|Convertible note payable (net of discounts of $139,014 and $539,282, at December 31, 2021 and December 31, 2020, respectively)                                                        |  |                   | 1,891,920   |   |                   |  
|Deferred revenue, license agreement                                                                                                                                                   |  |                   | 3,554       |   |                   |  
|Operating lease liabilities, short term                                                                                                                                               |  |                   | 106,988     |   |                   |  
|Lease settlement obligations                                                                                                                                                          |  |                   | 235,759     |   |                   |  
|Total current liabilities                                                                                                                                                             |  |                   | 3,435,600   |   |                   |  
|                                                                                                                                                                                      |  |                   |             |   |                   |  
|Long term liabilities                                                                                                                                                                 |  |                   |             |   |                   |  
|Notes payable, long term (net of deferred finance charge of $32,556 at December 31, 2020)                                                                                             |  |                   | 160,000     |   |                   |  
|Operating lease liabilities, long-term                                                                                                                                                |  |                   | 208,932     |   |                   |  
|Total liabilities                                                                                                                                                                     |  |                   | 3,807,532   |   |                   |  
|                                                                                                                                                                                      |  |                   |             |   |                   |  
|Commitments and contingencies:                                                                                                                                                        |  |                   | -           |   |                   |  
|Mezzanine equty:                                                                                                                                                                      |  |                   |             |   |                   |  
|Series B preferred stock, $0.00001 par value, 9,000 shares authorized, 9,000 and -0- issued and outstanding at September 30, 2021 and December 31, 2020, respectively                 |  |                   | 1,522,198   |   |                   |  
|Preferred stock, $0.001 par value; 25,000,000 shares authorized;                                                                                                                      |  |                   |             |   |                   |  
|Series C preferred stock, $0.00001 par value, 1,000 shares authorized, 1,000 and -0- issued and outstanding at September 30, 2021 and December 31, 2020, respectively                 |  |                   | 169,133     |   |                   |  
|Total Mezzanine equity                                                                                                                                                                |  |                   | 1,691,331   |   |                   |  
|                                                                                                                                                                                      |  |                   |             |   |                   |  
|Stockholders’ deficit:                                                                                                                                                                |  |                   |             |   |                   |  
|Series A Preferred stock, 2,500,000 shares issued and outstanding at December 31, 2021 and none issued and outstanding at December 31, 2020                                           |  |                   | 2,500       |   |                   |  
|Common stock, $0.001 par value; 3,000,000,000 shares authorized; 272,324,952 and 46,756,970 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively |  |                   | 272,235     |   |                   |  
|Shares to be issued (4,875,000 and 4,875,000 as of December 31, 2021 and December 31, 2020, respectively)                                                                             |  |                   | 4,128,706   |   |                   |  
|Additional paid-in capital                                                                                                                                                            |  |                   | 15,319,943  |   |                   |  
|Accumulated deficit                                                                                                                                                                   |  |                   | (23,551,010 | ) |                   |  
|Total Quanta Inc stockholders’ deficit                                                                                                                                                |  |                   | (3,827,626  | ) |                   |  
|Noncontrolling interest in consolidated subsidiary                                                                                                                                    |  |                   | (783,688    | ) |                   |  
|Total stockholders’ deficit                                                                                                                                                           |  |                   | (4,611,314  | ) |                   |  
|                                                                                                                                                                                      |  |                   |             |   |                   |  
|Total liabilities and stockholders’ (deficit) equity                                                                                                                                  |  | $                 | 887,549     |   |                   | $



See
notes to consolidated financial statements



F-3









QUANTA,
INC. AND SUBSIDIARY

CONSOLIDATED
STATEMENTS OF OPERATIONS



|                                                                                         |  | Year ended  December 31, 2021 |             |   | Year ended  December 31, 2020 |  
|---------------------------------------------------------------------------------------- |  | ----------------------------- | ----------- | - | ----------------------------- | -
|                                                                                         |  |                               |             |   |                               |  
|Sale of products, net                                                                    |  | $                             | 642,143     |   |                               | $
|License revenue                                                                          |  |                               | 31,264      |   |                               |  
|Total revenue                                                                            |  |                               | 673,407     |   |                               |  
|Cost of goods sold                                                                       |  |                               | 143,423     |   |                               |  
|Gross profit                                                                             |  |                               | 529,984     |   |                               |  
|                                                                                         |  |                               |             |   |                               |  
|Operating expenses:                                                                      |  |                               |             |   |                               |  
|Compensation and benefits                                                                |  |                               | 534,129     |   |                               |  
|Research and development (includes $420,000 and $343,300 to related party, respectively) |  |                               | 453,500     |   |                               |  
|Impairment of operating lease right of use asset                                         |  |                               | -           |   |                               |  
|Selling, general, and administrative                                                     |  |                               | 7,344,826   |   |                               |  
|Total operating expenses                                                                 |  |                               | 8,332,455   |   |                               |  
|Loss from operations                                                                     |  |                               | (7,802,471  | ) |                               |  
|                                                                                         |  |                               |             |   |                               |  
|Other income (expense):                                                                  |  |                               |             |   |                               |  
|Forgiveness of debt                                                                      |  |                               | 134,125     |   |                               |  
|Interest expense                                                                         |  |                               | (351,040    | ) |                               |  
|Discount amortization                                                                    |  |                               | (233,738    | ) |                               |  
|Change in fair value of derivative liabilities                                           |  |                               | -           |   |                               |  
|Private placement costs                                                                  |  |                               | -           |   |                               |  
|Loss on extinguishment of debt                                                           |  |                               | -           |   |                               |  
|Other income and expense, net                                                            |  |                               | (450.653    | ) |                               |  
|                                                                                         |  |                               |             |   |                               |  
|Net loss                                                                                 |  | $                             | (8,253,124  | ) |                               | $
|                                                                                         |  |                               |             |   |                               |  
|Net loss per share, basic and diluted                                                    |  | $                             | (0.04       | ) |                               | $
|Weighted average common shares outstanding – basic and diluted                           |  |                               | 224,021,985 |   |                               |  



See
notes to consolidated financial statements.



F-4









QUANTA,
INC. AND SUBSIDIARY

CONSOLIDATED
STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

FOR
THE YEARS ENDED DECEMBER 31, 2021AND 2020





|                                                              |  |                      |           |  |                      |   |       |            |  |  |             |   |  |             |         |   |             |   |            |               |  |   |           |   |  |         |            
|------------------------------------------------------------- |  | -------------------- | --------- |  | -------------------- | - | ----- | ---------- |  |  | ----------- | - |  | ----------- | ------- | - | ----------- | - | ---------- | ------------- |  | - | --------- | - |  | ------- | -----------
|                                                              |  | Series
    A         |           |  |                      |   |       |            |  |  |             |   |  |             |         |   |             |   |            |               |  |   |           |  
|                                                              |  | Preferred
    Stock, |           |  | Common
    Stock     |   |       | Additional |  |  | Shares      |   |  |             |         |   | Non         |   |            | Total         | 
|                                                              |  | par
    value $0.001 |           |  | par
    value $0.001 |   |       | Paid-in    |  |  | To
    be   |   |  | Accumulated |         |   | Controlling |   |            | Stockholders’ | 
|                                                              |  | Shares               |           |  | Amount               |   |       | Shares     |  |  | Amount      |   |  | Capital     |         |   | Issued      |   |            | Deficit       |  |   | Interest  |   |  | Deficit |            
|Balance
    January 1, 2020                                   |  |                      | -         |  |                      | $ | -     |            |  |  | 49,087,255  |   |  | $           | 49,087  |   |             | $ | 5,619,733  |               |  | $ | 2,847,868 |   |  | $       | (8,237,748 
|                                                              |  |                      |           |  |                      |   |       |            |  |  |             |   |  |             |         |   |             |   |            |               |  |   |           |   |  |         |            
|Issuance
    of shares previously subscribed                  |  |                      | -         |  |                      |   | -     |            |  |  | 5,000,000   |   |  |             | 5,000   |   |             |   | 530,000    |               |  |   | (535,000  | ) |  |         | -          
|Shares
    issued for cash                                    |  |                      | -         |  |                      |   | -     |            |  |  | 407,408     |   |  |             | 407     |   |             |   | 74,593     |               |  |   | 50,000    |   |  |         | -          
|Fair
    value of vested options                              |  |                      | -         |  |                      |   | -     |            |  |  | -           |   |  |             | -       |   |             |   | 290,132    |               |  |   | -         |   |  |         | -          
|Fair
    value of shares issued to employees and officers     |  |                      | -         |  |                      |   | -     |            |  |  | 1,201,198   |   |  |             | 1,201   |   |             |   | 130,000    |               |  |   | 1,267,720 |   |  |         | -          
|Fair
    value of preferred shares issued to officers         |  |                      | 2,500,000 |  |                      |   | 2,500 |            |  |  | -           |   |  |             | -       |   |             |   | 462,500    |               |  |   | -         |   |  |         | -          
|Beneficial
    conversion feature of issued convertible notes |  |                      | -         |  |                      |   | -     |            |  |  | -           |   |  |             | -       |   |             |   | 2,556,602  |               |  |   | -         |   |  |         | -          
|Fair
    value of shares issued for loan fees                 |  |                      | -         |  |                      |   | -     |            |  |  | 1,127,522   |   |  |             | 1,128   |   |             |   | 93,000     |               |  |   | 11,280    |   |  |         | -          
|Shares
    issued for conversion of convertible notes         |  |                      | -         |  |                      |   | -     |            |  |  | 6,885,019   |   |  |             | 6,885   |   |             |   | 329,294    |               |  |   | -         |   |  |         | -          
|Cancellation
    of shares                                    |  |                      | -         |  |                      |   | -     |            |  |  | (16,951,432 | ) |  |             | (16,951 | ) |             |   | 16,951     |               |  |   | -         |   |  |         | -          
|Net
    loss                                                  |  |                      | -         |  |                      |   | -     |            |  |  | -           |   |  |             | -       |   |             |   | -          |               |  |   | -         |   |  |         | (8,164,428 
|                                                              |  |                      |           |  |                      |   |       |            |  |  |             |   |  |             |         |   |             |   |            |               |  |   |           |   |  |         |            
|Balance
    December 31, 2020                                 |  |                      | 2,500,000 |  |                      | $ | 2,500 |            |  |  | 46,756,970  |   |  | $           | 46,757  |   |             | $ | 10,102,805 |               |  | $ | 3,641,868 |   |  | $       | (16,402,176
|                                                              |  |                      |           |  |                      |   |       |            |  |  |             |   |  |             |         |   |             |   |            |               |  |   |           |   |  |         |            
|Adjustment
    for adoption of ASU 2020-6                     |  |                      | -         |  |                      |   | -     |            |  |  | -           |   |  |             | -       |   |             |   | (823,655   | )             |  |   | -         |   |  |         | 320,602    
|Shares
    issued for cash                                    |  |                      | -         |  |                      |   | -     |            |  |  | 56,750,000  |   |  |             | 56,750  |   |             |   | 1,928,250  |               |  |   | -         |   |  |         | -          
|Fair
    value of shares for services                         |  |                      | -         |  |                      |   | -     |            |  |  | 14,964,425  |   |  |             | 14,964  |   |             |   | 1,301,920  |               |  |   | -         |   |  |         | -          
|Fair
    value of vested restricted stock                     |  |                      | -         |  |                      |   | -     |            |  |  | -           |   |  |             | -       |   |             |   | -          |               |  |   | 486,838   |   |  |         | -          
|Fair
    value of vested options                              |  |                      | -         |  |                      |   | -     |            |  |  | -           |   |  |             | -       |   |             |   | 34,905     |               |  |   | -         |   |  |         | -          
|Shares
    issued for cashless exercise of warrants           |  |                      | -         |  |                      |   | -     |            |  |  | 21,881,628  |   |  |             | 21,882  |   |             |   | 794,303    |               |  |   | -         |   |  |         | -          
|Shares
    issued for conversion of convertible notes         |  |                      | -         |  |                      |   | -     |            |  |  | 131,876,929 |   |  |             | 131,882 |   |             |   | 1,981,415  |               |  |   | -         |   |  |         | -          
|Net
    loss                                                  |  |                      | -         |  |                      |   | -     |            |  |  | -           |   |  |             | -       |   |             |   | -          |               |  |   | -         |   |  |         | (7,469,436 
|Balance
    December 31, 2021                                 |  |                      | 2,500,000 |  |                      | $ | 2,500 |            |  |  | 272,229,952 |   |  | $           | 272,235 |   |             | $ | 15,319,943 |               |  | $ | 4,128,706 |   |  | $       | (23,551,010





See
notes to consolidated financial statements



F-5









QUANTA,
INC. AND SUBSIDIARY

CONSOLIDATED
STATEMENTS OF CASH FLOWS

FOR
THE YEARS ENDED DECEMBER 31, 2021 AND 2020





|                                                                                          |  | December 31, 2021 |            |   | December 31, 2020 |  
|----------------------------------------------------------------------------------------- |  | ----------------- | ---------- | - | ----------------- | -
|CASH FLOW FROM OPERATING ACTIVITIES:                                                      |  |                   |            |   |                   |  
|Net loss                                                                                  |  | $                 | (8,253,124 | ) |                   | $
|Adjustments to reconcile net loss to net cash used in operating activities:               |  |                   |            |   |                   |  
|Depreciation                                                                              |  |                   | 70,336     |   |                   |  
|Fair value of shares issued for services                                                  |  |                   | 1,301,920  |   |                   |  
|Fair value of vested options                                                              |  |                   | 34,905     |   |                   |  
|Fair value of vested restricted stock                                                     |  |                   | 486,838    |   |                   |  
|Fair value of mezzanine equity Series B and Series C preferred shares issued for services |  |                   | 1,691,331  |   |                   |  
|Fair value of preferred shares issued to officer                                          |  |                   | -          |   |                   |  
|Fair value of shares issued to employees and officer                                      |  |                   | -          |   |                   |  
|Amortization of convertible note discount                                                 |  |                   | 198,488    |   |                   |  
|Amortization of note payable discount                                                     |  |                   | 28,200     |   |                   |  
|Amortization of right-of-use asset                                                        |  |                   | 82,725     |   |                   |  
|Impairment of operating lease right-of-use asset                                          |  |                   | -          |   |                   |  
|Private placement costs (includes $79,748 recorded as interest expense in 2020)           |  |                   | -          |   |                   |  
|Fair value of cashless exercise of warrants                                               |  |                   | 794,303    |   |                   |  
|Accretion of premium                                                                      |  |                   | 165,794    |   |                   |  
|Change in fair value of derivative                                                        |  |                   | -          |   |                   |  
|Loss on extinguishment of debt                                                            |  |                   | -          |   |                   |  
|Net gain on settlement of accounts payable and accrued expenses                           |  |                   | -          |   |                   |  
|Changes in operating assets and liabilities:                                              |  |                   |            |   |                   |  
|Accounts receivable                                                                       |  |                   | 600        |   |                   |  
|Accounts receivable, related party                                                        |  |                   | (129,300   | ) |                   |  
|Bad debt expense                                                                          |  |                   | 129,300    |   |                   |  
|Deferred expenses, related party                                                          |  |                   | 134,704    |   |                   |  
|Inventories                                                                               |  |                   | (78,940    | ) |                   |  
|Prepaid production costs                                                                  |  |                   | (300,000   | ) |                   |  
|Accounts payable and accrued liabilities                                                  |  |                   | (6,523     | ) |                   |  
|Advances                                                                                  |  |                   | 341,000    |   |                   |  
|Deferred revenue                                                                          |  |                   | (31,264    | ) |                   |  
|Security deposits                                                                         |  |                   | -          |   |                   |  
|Operating lease liabilities                                                               |  |                   | (79,861    | ) |                   |  
|Net cash used in operating activities                                                     |  |                   | (3,418,568 | ) |                   |  
|                                                                                          |  |                   |            |   |                   |  
|CASH FLOW FROM INVESTING ACTIVITIES:                                                      |  |                   |            |   |                   |  
|Purchase of equipment                                                                     |  |                   | (39,290    | ) |                   |  
|Net cash used in investment activities                                                    |  |                   | (39,290    | ) |                   |  
|                                                                                          |  |                   |            |   |                   |  
|CASH FLOW FROM FINANCING ACTIVITIES:                                                      |  |                   |            |   |                   |  
|Proceeds from shares issued for cash                                                      |  |                   | 1,985,000  |   |                   |  
|Proceeds from convertibles notes payable                                                  |  |                   | 1,782,650  |   |                   |  
|Proceeds from notes payable                                                               |  |                   | -          |   |                   |  
|Proceeds from shares to be issued                                                         |  |                   | -          |   |                   |  
|Proceeds from revenue sharing loan                                                        |  |                   | -          |   |                   |  
|Proceeds from PPP and EIDL loans                                                          |  |                   | -          |   |                   |  
|Principal payments of notes payable                                                       |  |                   | (245,760   | ) |                   |  
|Principal payments of convertible notes payable                                           |  |                   | (46,860    | ) |                   |  
|Net cash provided by financing activities                                                 |  |                   | 3,475,030  |   |                   |  
|                                                                                          |  |                   |            |   |                   |  
|Increase (decrease) in cash                                                               |  |                   | 17,172     |   |                   |  
|Cash and cash equivalents, beginning of period                                            |  |                   | 6,270      |   |                   |  
|Cash and cash equivalents, end of period                                                  |  | $                 | 23,442     |   |                   | $
|                                                                                          |  |                   |            |   |                   |  
|Supplemental Disclosures of Cash Flow Information:                                        |  |                   |            |   |                   |  
|Cash paid for interest                                                                    |  |                   | 59,749     |   |                   |  
|                                                                                          |  |                   |            |   |                   |  
|Non-cash investing and financing activities                                               |  |                   |            |   |                   |  
|Adjustment for adoption of ASU 2020-06                                                    |  | $                 | 503,053    |   |                   | $
|Original issue discount                                                                   |  | $                 | 312,000    |   |                   | $
|Fair value of shares issued for loan fee                                                  |  | $                 | -          |   |                   | $
|Common shares issued for conversion of convertible notes and accrued interest             |  | $                 | 2,113,297  |   |                   | $
|Recognition of right-of-use asset and liability                                           |  | $                 | -          |   |                   | $
|Convertible notes issued for fees                                                         |  | $                 | -          |   |                   | $
|Recognition of beneficial conversion feature                                              |  | $                 | -          |   |                   | $
|Shares issued for fee discount                                                            |  | $                 | -          |   |                   | $
|Derivative allocated to discount                                                          |  | $                 | -          |   |                   | $
|Issuance of shares to be issued                                                           |  | $                 | -          |   |                   | $
|Forgiveness of debt                                                                       |  | $                 | 134,125    |   |                   | $
|Fair value of shares to be issued for loan fee                                            |  | $                 | -          |   |                   | $
|Fees paid through conversion of notes                                                     |  | $                 | 75,435     |   |                   | $



See
notes to consolidated financial statements



F-6









QUANTA,
INC. AND SUBSIDIARY

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS



FOR
THE YEARS ENDED DECEMBER 31, 2021 AND 2020



NOTE
1 – DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



Quanta,
Inc. (the “Company”) is an applied science company focused on a range of pharmaceutical, nutraceutical, topical relief and
cosmetic products utilizing patented polarization technology. The Company’s operations are based in Burbank, California. On April
28, 2016, the Company was incorporated as Freight Solution, Inc. in the State of Nevada. Effective June 6, 2018, the Company (then known
as Bioanomaly Inc.) was acquired by Freight Solution in a transaction accounted for as a reverse merger transaction. On July 11, 2018,
the Company changed its name to Quanta, Inc.



On
December 21, 2020, the Company entered into a Securities Exchange Agreement with Medolife Rx, Inc., a Wyoming corporation, (“Medolife
Rx”) pursuant to which, the Company agreed to acquire 51% of Medolife Rx in exchange for 9,000 shares of newly created Series B
Convertible Preferred Stock. On January 14, 2021, we completed the acquisition of 51% of Medolife, which has nominal assets, liabilities,
and operations. (see Notes 12 and 13).



Going
Concern



The
accompanying financial statements 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 reflected in the accompanying financial statements, for the year
ended December 31, 2021, the Company incurred a net loss of $8,253,124 and used cash in operating activities of $3,418,568, and at December
31, 2021, the Company had a stockholders’ deficit of $4,611,314. These factors raise substantial doubt about the Company’s
ability to continue as a going concern within one year of the date that the financial statements are issued. The consolidated financial
statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.



At
December 31, 2021, the Company had cash on hand in the amount of $23,442. Subsequent to December 31, 2020, the Company issued convertible
notes payable and received net proceeds of $245,275 and received $100,000 as a short term loan. Management estimates that the current
funds on hand will be sufficient to continue operations through the next six months. The Company’s ability to continue as a going
concern is dependent upon improving its profitability and the continuing financial support from its shareholders. Management believes
the existing shareholders or external financing will provide the additional cash to meet the Company’s obligations as they become
due. No assurance can be given that any future financing, if needed, will be available or, if available, that it will be on terms that
are satisfactory to the Company. Even if the Company is able to obtain additional financing, if needed, it may contain undue restrictions
on its operations, in the case of debt financing, or cause substantial dilution for its stockholders, in the case of equity financing



Basis
of presentation and principles of consolidation



The
accompanying consolidated financial statements have been prepared in accordance with accounting standards generally accepted in the United
States of America.



The
consolidated financial statements include the accounts of Quanta Inc, and its wholly-owned subsidiary, Bioanomaly, Inc. All intercompany
balances and transactions have been eliminated in consolidation.



Use
of estimates



The
preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant accounting
estimates include certain assumptions related to, among others, allowance for doubtful accounts receivable, impairment analysis of long-term
assets, valuation allowance on deferred income taxes, assumptions used in valuing stock instruments issued for services, assumptions
made in valuing derivative liabilities, and the accrual of potential liabilities. Actual results may differ from these estimates.



Revenue
recognition



The
Company follows the guidance of Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers.ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contracts, which includes
(1) identifying the contracts or agreements with a customer, (2) identifying our performance obligations in the contract or agreement,
(3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing
revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that
the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients.



F-7









Product
Sales—Substantially all of the Company’s revenue is derived from product sales. Product revenue and costs of sales are
recognized when control of the products transfers to our customer, which generally occurs upon shipment from our facilities. The Company’s
performance obligations are satisfied at that time. The Company does not have any significant contracts with customers requiring performance
beyond delivery, and contracts with customers contain no incentives or discounts that could cause revenue to be allocated or adjusted
over time.



License
revenue— Revenue from symbolic IP is recognized over the access period to the Company’s IP (see Note 2).



Cost
of goods sold includes direct costs and fees related to the sale of our products.



Accounts
Receivable



Accounts
receivable are recorded net of an allowance for any uncollectible accounts if deemed necessary, and payments are generally due within
thirty to forty-five days of invoicing. Management reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using
historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial condition,
credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary. Account balances
are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered
remote. At December 31, 2021 and December 31, 2020, the Company did not record any allowance for uncollectible accounts.



Inventories



Inventories
are stated at the lower of cost or net realizable value with cost determined on a first-in, first-out (“FIFO”) basis. We
regularly review our inventory quantities on hand and record a provision for excess and obsolete inventory based primarily on our estimated
forecast of product demand and our ability to sell the product(s) concerned. Demand for our products can fluctuate significantly. Additionally,
our management’s estimates of future product demand may be inaccurate, which could result in an understated or overstated provision
required for excess and obsolete inventory. A reserve for raw materials, product obsolescence and packaging for products that may no
longer be viable of $13,125 and $9,125 has been established for the years ended December 31, 2021 and 2020, respectively.



Equipment



Equipment
is stated at cost less accumulated depreciation. Depreciation is provided over the estimated useful lives of the equipment, which is
three years, using the straight-line method. Expenditures for major additions and improvements are capitalized and minor repairs and
maintenance are charged to expense as incurred. When equipment is retired or otherwise disposed of, the cost and accumulated depreciation
are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period.



Management
assesses the carrying value of equipment whenever events or changes in circumstances indicate that the carrying value may not be recoverable.
If there is indication of impairment, management prepares an estimate of future cash flows expected to result from the use of the asset
and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to
write down the asset to its estimated fair value. For the years ended December 31, 2021 and 2020, the Company determined there were no
indicators of impairment of its property and equipment.



Impairment
of Long-lived Assets



The
Company reviews its equipment, right-of-use assets, and other long-lived assets, for impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset group may not be recoverable. Recoverability is measured by a comparison of the carrying
amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an
asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount
of the asset exceeds the fair value of the assets. Fair value is generally determined using the asset’s expected future discounted
cash flows or market value, if readily determinable. For the years ended December 31, 2021 and 2020, the Company had no impairment of
long-lived assets.



Leases



The
Company accounts for its leases in accordance with the guidance of ASC 842, Leases. The Company determines whether a contract is, or
contains, a lease at inception. Right-of-use assets represent the Company’s right to use an underlying asset during the lease term,
and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and
lease liabilities are recognized at lease commencement based upon the estimated present value of unpaid lease payments over the lease
term. The Company uses its incremental borrowing rate based on the information available at lease commencement in determining the present
value of unpaid lease payments The Company adopted ASC 842 on January 1, 2019. There was no cumulative-effect adjustment to accumulated
deficit (see Note 5).



Derivative
Financial Instruments



The
Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded
derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded
at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations.
For stock-based derivative financial instruments, the Company uses a probability weighted average Black-Scholes-Merton model to value
the derivative instruments at inception and on subsequent valuation dates through the December 31, 2021, reporting date. The classification
of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end
of each reporting period,



F-8









Convertible
Notes with Fixed Rate Conversion Options



The
Company may enter into convertible notes, some of which contain, predominantly, fixed rate conversion features, whereby the outstanding
principal and accrued interest may be converted by the holder, into common shares at a fixed discount to the market price of the common
stock at the time of conversion. This results in a fair value of the convertible note being equal to a fixed monetary amount. The Company
records the convertible note liability at its fixed monetary amount by measuring and recording a premium, as applicable, on the Note
date with a charge to interest expense in accordance with ASC 480 - “Distinguishing Liabilities from Equity”.



Income
taxes



The
Company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred
tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred
taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more
likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is
uncertain.



Stock-based
compensation



The
Company periodically issues stock options, warrants, shares of common stock, and restricted stock unit awards, as share-based compensation
to employees and non-employees. The Company accounts for its share-based compensation in accordance with FASB ASC 718, Compensation
– Stock Compensation (Topic 718). Stock-based compensation cost for employees is measured at the grant date, based on the estimated
fair value of the award, and is recognized as expense over the requisite service period. Recognition of compensation expense for non-employees
is in the same period and manner as if the Company had paid cash for the services.



The
fair value of the Company’s stock options is estimated using the Black-Scholes-Merton Option Pricing model, which uses certain
assumptions related to risk-free interest rates, expected volatility, expected life of the stock options or restricted stock, and future
dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes-Merton Option Pricing model and based
on actual experience. The assumptions used in the Black-Scholes-Merton Option Pricing model could materially affect compensation expense
recorded in future periods.



Advertising
costs



Advertising
costs are expensed as incurred. During the years ended December 31, 2021 and 2020, advertising costs totaled $758,236 and $78,895, respectively.



Research
and Development Costs



Costs
incurred for research and development are expensed as incurred. During the years ended December 31, 2021 and 2020, research and development
costs totaled $453,500 and $452,443, respectively and include salaries, benefits, and overhead costs of personnel conducting research
and development of the Company’s products.



Net
Loss per Share



Basic
net loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares
outstanding during the period. Shares used in the calculation of basic net loss per common share include vested but unissued shares underlying
awards of restricted common stock. Diluted loss per share reflects the potential dilution, using the treasury stock method 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 then shared in the loss of the Company. In computing diluted loss per share, the treasury stock method assumes that
outstanding warrants and convertible notes are exercised and the proceeds are used to purchase common stock at the average market price
during the period. Warrants and convertible notes may have a dilutive effect under the treasury stock method only when the average market
price of the common stock during the period exceeds the exercise price of the options and warrants.



For
the year ended December 31, 2021 and 2020, the dilutive impact of common stock equivalents, e.g. stock options, warrants and convertible
notes payable have been excluded from calculation of weighted average shares because their impact on the loss per share is anti-dilutive.







F-9







As
of December 31, 2021, 775,000 options were outstanding of which 1,875,000 were exercisable, warrants of 25,000,000 were outstanding and
exercisable, and convertible debt and accrued interest totaling $1,891,920 was convertible into 119,058,345 shares of common stock. It
should be noted that contractually the limitations on the third-party notes (and the related warrant) limit the number of shares converted
to either 4.99% or 9.99% of the then outstanding shares. As of December 31, 2021, and 2020 potentially dilutive securities consisted
of the following:

SCHEDULE
OF POTENTIALLY DILUTIVE SECURITIES

|                          |  | December
31, 2021 |             |  | December
31, 2020 | 
|------------------------- |  | ----------------- | ----------- |  | ----------------- | 
|Stock options             |  |                   | 775,000     |  |                   | 
|Warrants                  |  |                   | 25,000,000  |  |                   | 
|Convertible notes payable |  |                   | 119,058,345 |  |                   | 
|Total                     |  |                   | 133,233,345 |  |                   | 



Fair
Value of Financial Instruments



The
Company follows the authoritative guidance issued by the Financial Accounting Standards Board (“FASB”) for fair value measurements.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous
market for the asset or liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy
was established, which prioritizes the inputs used in measuring fair value into three broad levels as follows:



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

Level
2—Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly.

Level
3—Unobservable inputs based on the Company’s assumptions.



The
Company is required to use of observable market data if such data is available without undue cost and effort.



The
Company believes the carrying amount reported in the balance sheet for cash, accounts receivable, accounts payable and accrued liabilities,
and notes payable, approximate their fair values because of the short-term nature of these financial instruments.



As
of December 31, 2021 and 2020, the Company did not have any Level 2 liabilities comprised of the fair value of embedded derivative liabilities.



Concentrations
of risks



For
the years ended December 31, 2021 and 2020 no customer accounted for 10% or more of revenue. As of December 31, 2020, one customer accounted
for 100% of accounts receivable.



Additionally,
for the same periods, no vendor accounted for 10% or more of the Company’s cost of goods sold, or accounts payable at period-end.



The
Company maintains the majority of its cash balances with one financial institution, in the form of demand deposits that are insured by
the Federal Deposit Insurance Corporation, or FDIC. At times, deposits held may exceed the amount of insurance provided by the FDIC.
The Company has not experienced any losses in its cash and believes it is not exposed to any significant credit risk.



Segments



The
Company operates in one segment for the development and distribution of our CBD products. In accordance with the “Segment Reporting”
Topic of the ASC, the Company’s chief operating decision maker has been identified as the Chief Executive Officer, who reviews
operating results to make decisions about allocating resources and assessing performance for the entire Company. Existing guidance, which
is based on a management approach to segment reporting, establishes requirements to report selected segment information quarterly and
to report annually entity-wide disclosures about products and services, major customers, and the countries in which the entity holds
material assets and reports revenue. All material operating units qualify for aggregation under “Segment Reporting” due to
their similar customer base and similarities in economic characteristics; nature of products and services; and procurement, manufacturing
and distribution processes. Since the Company operates in one segment, all financial information required by “Segment Reporting”
can be found in the accompanying financial statements.



F-10









Recent
Accounting Pronouncements



In
June 2016, the FASB issued ASU No. 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments (“ASC 326”).
The standard significantly changes how entities will measure credit losses for most financial assets, including accounts and notes receivables.
The standard will replace today’s “incurred loss” approach with an “expected loss” model, under which companies
will recognize allowances based on expected rather than incurred losses. Entities will apply the standard’s provisions as a cumulative-effect
adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The standard is
effective for interim and annual reporting periods beginning after December 15, 2022. The Company is currently assessing the impact of
adopting this standard on the Company’s financial statements and related disclosures.



In
August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts
in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.
This ASU amends the guidance on convertible instruments and the derivatives scope exception for contracts in an entity’s own equity,
and also improves and amends the related EPS guidance for both Subtopics. The ASU will be effective for annual reporting periods after
December 15, 2021 and interim periods within those annual periods and early adoption is permitted. We are currently evaluating the impact
of the new guidance on our consolidated financial statements.



Other
recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public
Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s
present or future consolidated financial statements.



F-11









NOTE
2 – LICENSE AGREEMENT



Effective
January 22, 2019, the Company entered into an agreement with a wholesaler for the exclusive rights to distribute the Company’s
products in the state of Colorado for three years. In consideration, the Company received an up-front payment of $100,000. The Company
determined that the exclusive distribution agreement was a distinct agreement for the license of symbolic IP and thus should be recognized
on a straight-line basis over the three-year life of the agreement. For the years ended December 31, 2021 and 2020, the Company recognized
revenue related to the agreement of $31,264, and $33,394, respectively.



NOTE
3 – INVENTORIES



Inventories
are valued at the lower of cost (first-in, first-out) or net realizable value, and net of reserves, consisted of the following:

SCHEDULE OF INVENTORIES

|                            |  | December 31, 2021 |        |  | December 31, 2020 |  
|--------------------------- |  | ----------------- | ------ |  | ----------------- | -
|                            |  |                   |        |  |                   |  
|Raw materials and packaging |  | $                 | 60,109 |  |                   | $
|Finished goods              |  |                   | 38,051 |  |                   |  
|                            |  |                   |        |  |                   |  
|Inventories, net            |  | $                 | 98,160 |  |                   | $



The
Company has recorded a reserve for slow moving and potentially obsolete inventory. The reserve at December 31, 2021 was $13,125. The
reserve at December 31, 2020 was $9,125.



NOTE
4 - EQUIPMENT



Equipment,
stated at cost, less accumulated depreciation consisted of the following:

SCHEDULE OF EQUIPMENT

|                                                  |  | December 31, 2021 |          |   | December 31, 2020 |  
|------------------------------------------------- |  | ----------------- | -------- | - | ----------------- | -
|                                                  |  |                   |          |   |                   |  
|Machinery-technology equipment                    |  | $                 | 704,772  |   |                   | $
|Machinery-technology equipment under construction |  |                   | 75,259   |   |                   |  
|Equipment, gross                                  |  |                   | 780,031  |   |                   |  
|Less accumulated depreciation                     |  |                   | (610,554 | ) |                   |  
|                                                  |  |                   |          |   |                   |  
|Equipment, net                                    |  | $                 | 169,477  |   |                   | $



Depreciation
expense for the years ended December 31, 2021 and 2020 was $70,336
and $216,696, respectively.
At December 31, 2021 and 2020, machinery-technology equipment included machinery acquired from Arthur Mikaelian, Ph.D (see Note 12)
initially costing $592,500,
with a net book value of $25,772
and $73,653,
respectively.



NOTE
5 - OPERATING LEASE



At
December 31, 2019, the Company had one operating lease for its headquarters office space in Burbank, California (the “First”
lease). At December 31, 2019, the balance of the First lease’s operating lease right-of-use (“ROU”) asset and corresponding
lease liability were $332,980 and $337,453, respectively.



In
February 2020, the Company took possession of a second leased facility consisting of office, research, and production space also located
in Burbank, California (the “Second” lease). The Second lease commenced on January 1, 2020, and has a term for 5 years, with
annual fixed rental payments ranging from $90,000 to $101,296. The aggregate total fixed rent is approximately $477,822 and resulted
in the recognition of an operating lease “ROU” asset and of a corresponding lease liability of $431,402 each. The Company
also paid a security deposit of $16,883. At December 31, 2021, the Company did not have any other leases.



During
the year ended December 31, 2020, the Company consolidated it operations into the Second lease space. In connection with the First lease
that is no longer utilized, the Company recorded an impairment of the related net ROU of $255,093 and wrote off a deposit of $16,769
with the lessor. The total due to the lessor for the First lease is $235,759 and is recorded as lease settlement obligation at December
31, 2020.



At
December 31, 2021, the balance of the Second lease’s ROU asset and corresponding lease liability were $279,502 and $315,920, respectively.



ROU
assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Generally,
the implicit rate of interest in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in
determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding
of what its credit rating would be. The operating lease ROU asset includes any lease payments made and excludes lease incentives.



F-12







The
components of lease expense and supplemental cash flow information related to leases for the period are as follows:

SCHEDULE OF LEASE EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES

|                                                                                                                         |  | Year ended December 31, 2021 |        
|------------------------------------------------------------------------------------------------------------------------ |  | ---------------------------- | -------
|Lease Cost                                                                                                               |  |                              |        
|Operating lease cost (included in selling, general, and administrative expense in the Company’s statement of operations) |  | $                            | 124,937
|                                                                                                                         |  |                              |        
|Other Information                                                                                                        |  |                              |        
|Cash paid for amounts included in the measurement of lease liabilities for 2021                                          |  | $                            | 92,00  
|Weighted average remaining lease term – operating leases (in years)                                                      |  |                              | 3.0    
|Average discount rate – operating leases                                                                                 |  |                              | 4      



The
supplemental balance sheet information related to leases for the period is as follows:

SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES

|                                       |  | At December 31, 2021 |        
|-------------------------------------- |  | -------------------- | -------
|Operating leases                       |  |                      |        
|Long-term right-of-use assets          |  | $                    | 279,502
|                                       |  |                      |        
|Short-term operating lease liabilities |  | $                    | 106,988
|Long-term operating lease liabilities  |  |                      | 208,932
|Total operating lease liabilities      |  | $                    | 315,920



Maturities
of the Company’s lease liabilities are as follows:

SCHEDULE OF MATURITIES OF OPERATING LEASE LIABILITIES

|Year Ending                            |  | Operating Leases |         
|-------------------------------------- |  | ---------------- | --------
|2022                                   |  |                  | 95,481  
|2023                                   |  |                  | 98,345  
|2024                                   |  |                  | 101,296 
|Total lease payments                   |  |                  | 295,122 
|Less: Imputed interest                 |  |                  | 20,798  
|Present value of lease liabilities     |  |                  | 315,920 
|Less current portion                   |  |                  | (106,988
|Operating lease liabilities, long-term |  | $                | 208,932 



Lease
expense were $124,937 and $195,509 during the year ended December 31, 2021 and December 31, 2020, respectively.



NOTE
6 – NOTES PAYABLE

SCHEDULE
OF NOTES PAYABLE

|                                                                                                                                              |  | December 31, 2021 |         |  | December 31, 2020 |  
|--------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------- | ------- |  | ----------------- | -
|                                                                                                                                              |  |                   |         |  |                   |  
|(a) Notes payable secured by equipment (net of deferred finance charge of $46,617 and $74,817 as of December 31, 2021 and 2020, respectively) |  | $                 | 166,258 |  |                   | $
|(b) Note payable, secured by assets                                                                                                           |  |                   | 13,350  |  |                   |  
|(c) Note payable, Payroll Protection Loan                                                                                                     |  |                   | -       |  |                   |  
|(d) Note payable, Economic Injury Disaster Loan                                                                                               |  |                   | 160,000 |  |                   |  
|(e) Revenue sharing agreement                                                                                                                 |  |                   | 242,800 |  |                   |  
|Total notes payable outstanding                                                                                                               |  |                   | 582,408 |  |                   |  
|Current portion                                                                                                                               |  |                   | 422,408 |  |                   |  
|                                                                                                                                              |  |                   |         |  |                   |  
|Long term portion                                                                                                                             |  | $                 | 160,000 |  |                   | $



| | (a) | In
    April 2020 and May 2020, the Company entered into two financing agreements aggregating $505,646. The notes have a stated interest
    rate of 10.9%. The notes were issued at a discount including fees for underwriting, legal and administrative costs along with deferred
    financing costs. The deferred financing costs are being amortized over the terms of the notes. The notes are secured by the Company’s
    equipment, and require monthly payments of principal and interest of $21,000, and mature in April 2022 and May 2022. At December
    31, 2020, the balance due on these notes was $438,634. During the year ended December 31, 2021, the Company made principal payments
    of $225,759 and at December 31, 2021, the balance due on these notes was $212,875. At December 31, 2021 and December 31, 2020, the
    unamortized discount related to deferred financing charges on these agreements was $46,617 and $74,817, respectively.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | (b) | Note
    payable, interest at 8.3% per annum, secured by all the assets of the Company. The note was due January 13, 2019. The note was due
    January 13, 2019. The note holder waived the default through December 31, 2020, and it is currently in default and the Company is
    in discussion with the note holder to extend the balance. During the year ended December 31, 2021, the Company made principal payments
    of $20,000 and at December 31, 2021, the balance due on this note was $13,350.                                                                                                                                                                                                                                                                                                                                                                                                                                                            



F-13









| | (c) | On
    May 7, 2020, the Company was granted a loan (the “PPP loan”) from Bank of America in the aggregate amount of $134,125,
    pursuant to the Paycheck Protection Program (the “PPP”) under the CARES Act. The PPP loan agreement is dated May 4, 2020,
    matures on May 4, 2022, bears interest at a rate of 1% per annum, with the first six months of interest deferred, is payable monthly
    commencing on November 2020, and is unsecured and guaranteed by the U.S. Small Business Administration (“SBA”). The loan
    term may be extended to April 20, 2025, if mutually agreed to by the Company and lender. We applied ASC 470, Debt, to account
    for the PPP loan. The PPP loan may be prepaid at any time prior to maturity with no prepayment penalties. Funds from the PPP loan
    may only be used for qualifying expenses as described in the CARES Act, including qualifying payroll costs, qualifying group health
    care benefits, qualifying rent and debt obligations, and qualifying utilities. The Company intends to use the entire loan amount
    for qualifying expenses. Under the terms of the PPP, certain amounts of the loan may be forgiven if they are used for qualifying
    expenses. The Company intends to apply for forgiveness of the PPP loan with respect to these qualifying expenses, however, we cannot
    assure that such forgiveness of any portion of the PPP loan will occur. As for the loan forgiveness, the PPP loan was wholly forgiven
    and a legal release received, the liability was reduced by the amount forgiven and a gain on extinguishment was recorded. The terms
    of the PPP loan provide for customary events of default including, among other things, payment defaults, breach of representations
    and warranties, and insolvency events. The Company was in compliance with the terms of the PPP loan as of December 31, 2021.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | (d) | On
    September 5, 2020, the Company received a $160,000 loan (the “EID Loan”) from the SBA under the SBA’s Economic
    Injury Disaster Loan program. The EID Loan has a thirty-year term and bears interest at a rate of 3.75% per annum. Monthly principal
    and interest payments of $0.7 per month are deferred for twelve months, and commence in June 2021. The EID Loan may be prepaid at
    any time prior to maturity with no prepayment penalties. The proceeds from the EID Loan must be used for working capital. The Loan
    contains customary events of default and other provisions customary for a loan of this type. The Company was in compliance with the
    terms of the EID loan as of December 31, 2021.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | (e) | Between
    July 7, 2020, and July 29, 2020, the Company issued notes payable to third-party investors totaling $250,000, of which $7,200 was
    repaid in 2020. Under the terms of the notes, the Company is to pay 50% of the net revenues beginning on August 21, 2020, for a product
    to be designed and produced by the Company. The product has not been produced and therefore no payments have been made to date. The
    Company has received a notice of default and demand for payment from three note holders (owed approximately $146,000). The Company
    has retained counsel who is in discussion with the note holders.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 



NOTE
7 – CONVERTIBLE NOTES PAYABLE



Convertible
notes payable consisted of the following:

SCHEDULE
OF CONVERTIBLE NOTES PAYABLE

|                                                                        |  | December 31, 2021 |           |   | December 31, 2020 |  
|----------------------------------------------------------------------- |  | ----------------- | --------- | - | ----------------- | -
|Unsecured                                                               |  |                   |           |   |                   |  
|(a) Convertible notes with fixed discount percentage conversion prices  |  | $                 | 315,140   |   |                   | $
|Put premiums on stock settled debt                                      |  |                   | 165,794   |   |                   |  
|                                                                        |  |                   |           |   |                   |  
|(b) Convertible notes with fixed conversion prices                      |  |                   | 1,550,000 |   |                   |  
|Default penalty principal added, charged to loss on debt extinguishment |  |                   | -         |   |                   |  
|Total convertible notes principal outstanding                           |  |                   | 2,030,934 |   |                   |  
|Debt discount                                                           |  |                   | (139,014  | ) |                   |  
|                                                                        |  |                   |           |   |                   |  
|Convertible notes, net of discount and premium                          |  | $                 | 1,891,920 |   |                   | $
|Current portion                                                         |  |                   | 1,891,920 |   |                   |  
|Long-term portion                                                       |  | $                 | -         |   |                   | $



| | (a) | At
    December 31, 2021, the balance due on convertible notes with fixed discount percentage conversion prices was $315,140, with related
    put premium of $165,794. At December 31, 2020, the balance due on convertible notes with fixed discount percentage conversion prices
    was $180,200, with related put premium of $117,866. During the year ended December 31, 2021, the Company issued five convertible
    notes with fixed discount percentage conversion prices aggregating $362,000 and made repayments aggregating $46,860. At the option
    of the holders, the notes were convertible into shares of the Company’s common stock at a price per share discount of 25% to
    35% of the lowest bid price of the Company’s common stock within twenty-five days prior to conversion. The notes were treated
    as stock settled debt under ASC 480-Distinguishing Liabilities from Equity, and a put premium of $165,794 was recognized and charged
    to interest expense when the notes were recorded in 2021. Also during the year ended December 31, 2021, note holders converted $113,000
    principal into 7,533,333 shares of the Company’s common stock. Upon conversion the related put premiums of $127,866 associated
    with these notes were reclassified to additional paid-in capital. As of December 31, 2021, the balance due on convertible notes with
    fixed discount percentage conversion prices was $315,140, and the related put premium was $165,794.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | (b) | As
    of December 31, 2020, the balance due on convertible notes with fixed conversion prices was $1,550,000. For the year ended December
    31, 2021, the Company issued eleven convertible notes with fixed conversion prices aggregating $1,722,500. In addition, convertible
    notes with fixed conversion prices totaling $1,482,845 of principal and $75,576 of accrued interest (total of $1,558,421) were converted
    into 124,384,253 shares of the Company’s common stock. At December 31, 2021, the balance of the due on convertible notes with
    fixed conversion prices was $1,550,000. The notes are unsecured, convertible into common stock at prices ranging from $0.015 per
    share to $0.04 per share, bear interest at 4% to 10% per annum, and mature through November 11, 2022.
    
    At
    December 31, 2021, the net unamortized balance of debt discounts was $139,014, consisting of debt discount related to fees and original
    issue discounts (OID). The Company early adopted ASU No. 2020-06 (See Note 1) effective January 1, 2021 using the modified retrospective
    approach. The adoption of ASU 2020-06 on January 1, 2021, resulted in a decrease in addition paid in capital of $823,655, a decrease
    to accumulated deficit of $320,602, and an increase in total stockholders’ deficit of $503,053.
    
    The
    debt discounts related to fees and OID are amortized over the life of the related notes or are amortized in full upon the conversion
    of the corresponding note to common stock. For the year ended December 31, 2021, debt discounts of $303,100 were added related to
    the eleven convertible notes issued above, and amortization of $164,086 was recorded. At December 31, 2021, the net unamortized balance
    of other debt discounts was $139,014.
    
    On
    May 4, 2021 (“Effective Date”), the Company entered into a securities purchase agreement (the “SPA”) with
    Clifton Royale Apartments, LLC (the “Investor”) pursuant to which the Company issued a 4% unsecured convertible promissory
    note (the “Note”) in the principal amount of $80,000. On this date, the Company received proceeds of $80,000.
    
    The
    maturity date of the Note was November 4, 2021. The Note bears interest at a rate of four percent (4%) per annum, which interest
    shall be paid by the Company to the Investor in Common Stock at any time the Investor sends a notice of conversion to the Company.
    The Investor is entitled to, at its option, convert all or any amount of the principal amount and any accrued but unpaid interest
    of the Investor Note into Common Stock, at any time, at a fixed conversion price for each share of Common Stock equal to $0.01 (as
    defined in the Note) of the Common Stock as reported on the OTC Marketplace exchange upon which the Company’s shares are traded
    during the twenty (20) consecutive Trading Day period immediately preceding (i) the applicable Effective Date; or (ii) the conversion
    date. The Company also issued a common stock purchase warrant for 15,000,000 shares (the “Warrant”).



F-14













| |  | On
    September 2, 2020, the Company issued a convertible note (see paragraph a above) having a conversion price less than $0.05 which
    triggered a term common to all notes in paragraph b, which changed the conversion terms to be the lower of $0.05 or 61% of the lowest
    traded price during the 15 days prior to the conversion. This event is also considered a default for which a penalty is charged equal
    to 150% of the accrued interest, default interest and principal, totaling $314,441. At December 31, 2020 the new principal totaled
    $811,385.
    
    On
    December 9, 2020, the Company executed amendments to these notes effective September 30, 2020, which extended the maturity dates
    and fixed the conversion price at $0.015. The Company determined that the change in the note terms resulted in old and new debt instruments
    that were substantially different, with the old debt being extinguished. Due to the change in conversion terms the notes also require
    the recognition of the beneficial conversion feature of the increased principal ($314,441 default principal) and lowering of the
    conversion price resulting in recognition of additional charges. Loss on debt extinguishment was charged $757,293 and debt discounts
    were charged $314,441 with a credit to additional paid in capital for the debt discounts. In addition $243,285 related to the unamortized
    discounts as originally recorded was also charged to loss on debt extinguishment for the unamortized balance of debt discounts. In
    addition, loss on debt extinguishment was charged $229,712 for other costs related of the extinguishment.
    
    During
    the three months ended December 31, 2020, the Company issued nine convertible notes with fixed conversion prices aggregating $440,000.
    The notes are unsecured, bear interest at 10% per annum, and mature through June 30, 2021. The notes are convertible into common
    stock at $0.015 per share. The Company recorded debt discounts of $43,000. On December 2, 2020 default penalties of $54,645 were
    declared by the note holders. The principal balance of these notes totals $494,645 at December 31, 2020. Beneficial conversion features
    having a value of $451,646 were also recognized with a charge to debt discount offset with a credit to additional paid in capital.
    The debt discounts are amortized over the life of the notes or are amortized in full upon the conversion of the corresponding notes
    to common stock.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



During
the year ended December 31, 2020, debt discount of $2,556,602 was recorded, debt discount amortization of $775,538 was recorded, discount
of $381,084 was recorded as private placement costs, and $1,085,698 was removed upon debt extinguishment. At December 31, 2020, the balance
of the unamortized discount was $539,282.



Note
8 – DERIVATIVE LIABILITIES AND FINANCIAL INSTRUMENTS

SCHEDULE
OF FAIR VALUE OF DERIVATIVE LIABILITIES

|                     |  |  | At December 31, 2020 |  |  | December 31, 2020 |        
|-------------------- |  |  | -------------------- |  |  | ----------------- | -------
|Description          |  |  | Level 1              |  |  |                   | Level 2
|Derivative Liability |  |  | -                    |  |  | $                 | -      



A
roll-forward of the level 2 valuation financial instruments is as follows:

SCHEDULE
OF LEVEL 2 VALUATION FINANCIAL INSTRUMENTS

|                                                                                                                             |  |   | Derivative Liabilities | 
|---------------------------------------------------------------------------------------------------------------------------- |  | - | ---------------------- | 
|Balance at December 31, 2019                                                                                                 |  | $ | -                      | 
|Recognition of derivative liabilities upon initial valuation                                                                 |  |   | -                      | 
|Decrease in fair market value during the year ended December 31, 2020                                                        |  |   | -                      | 
|Gain on debt extinguishment recognized upon liquidation of related convertible notes during the year ended December 31, 2020 |  |   | -                      | 
|Balance at December 31, 2020                                                                                                 |  |   | -                      | 
|Decrease in fair market value during the year ended December 31, 2021                                                        |  |   | -                      | 
|Gain on debt extinguishment recognized upon liquidation of related convertible notes during the year ended December 31, 2021 |  |   | -                      | 
|Balance at December 31, 2021                                                                                                 |  | $ | -                      | 



During
the year ended December 31, 2020, a decrease in the fair value of derivatives of $101,226 was recorded, and the balance of the derivative
liabilities of $298,913 was fully extinguished upon pay-off of the related convertible note, and resulted in a gain on debt extinguishment
of $298,913. At December 31, 2021, the Company had no convertible notes outstanding that are considered to have embedded derivative liabilities
that require bifurcation per the note agreements.





F-15









The
risk-free interest rate was based on rates established by the Federal Reserve Bank. The expected volatility is based on the historical
volatility of the Company’s stock. The expected life of the conversion feature of the notes was based on the remaining terms of
the related notes. The expected dividend yield was based on the fact that the Company has not customarily paid dividends to its common
stockholders in the past and does not expect to pay dividends to its common stockholders in the future.



NOTE
9 – INCOME TAXES



The
Company had no income tax expense for the years ended December 31, 2020 December 31, 2019. The following is a reconciliation of the statutory
federal income tax rate to the Company’s effective tax rate:

Schedule of Effective Income Tax Rate

|                                  |  | Year ended  December 31, 2021 |       |   | Year ended  December 31, 2020 | 
|--------------------------------- |  | ----------------------------- | ----- | - | ----------------------------- | 
|                                  |  |                               |       |   |                               | 
|Federal tax at statutory rate     |  |                               | 21.0  | % |                               | 
|State tax, net of federal benefit |  |                               | 7.0   |   |                               | 
|Change in valuation allowance     |  |                               | (28.0 | ) |                               | 
|                                  |  |                               |       |   |                               | 
|Effective income tax rate         |  |                               | 0.0   | % |                               | 





Deferred
tax assets and liabilities consist of the following:

Schedule of Deferred Tax Assets and Liabilities

|                                   |  | December 31, 2021 |            |   | December 31, 2020 |  
|---------------------------------- |  | ----------------- | ---------- | - | ----------------- | -
|Deferred tax assets:               |  |                   |            |   |                   |  
|Stock-based compensation           |  | $                 | 1,599,000  |   |                   | $
|Operating lease liability          |  |                   | 111,000    |   |                   |  
|Derivative expenses                |  |                   | 173,000    |   |                   |  
|Net operating loss carryforwards   |  |                   | 2,522,000  |   |                   |  
|Gross deferred tax assets          |  |                   | 4,405,000  |   |                   |  
|Less: valuation allowance          |  |                   | (4,405,000 | ) |                   |  
|Total deferred tax assets          |  |                   | 282,000    |   |                   |  
|Deferred tax liabilities:          |  |                   |            |   |                   |  
|Depreciation                       |  |                   | 135,000    |   |                   |  
|Derivative gain                    |  |                   | 46,000     |   |                   |  
|Operating lease right-of-use asset |  |                   | 101,000    |   |                   |  
|Total deferred tax liabilities     |  |                   | 282,000    |   |                   |  
|Net deferred tax asset (liability) |  | $                 | -          |   |                   | $



The
provisions of ASC Topic 740, Accounting for Income Taxes, require an assessment of both positive and negative evidence when determining
whether it is more likely than not that deferred tax assets are recoverable. For the year ended December 31, 2020 and December 31, 2019,
based on all available objective evidence, including the existence of cumulative losses, the Company determined that it was more likely
than not that the net deferred tax assets were not fully realizable. Accordingly, the Company established a full valuation allowance
against its net deferred tax assets. The Company intends to maintain a full valuation allowance on net deferred tax assets until sufficient
positive evidence exists to support reversal of the valuation allowance. During the year ended December 31, 2020 and December 31, 2019,
the valuation allowance increased by $2.3 million and $1.5 million, respectively.



At
December 31, 2021 and 2020, the Company had available Federal and state net operating loss carryforwards (“NOL”s) to reduce
future taxable income. For Federal purposes the amounts available were approximately $10.1 million and $10.1 million, respectively. For
state purposes approximately $8.8 million and $8.8 was available at December 31, 2021 and 2020, respectively. The Federal carryforwards
expire on various dates through 2040 and the state carryforwards expire through 2037. Due to restrictions imposed by Internal Revenue
Code Section 382 regarding substantial changes in ownership of companies with loss carryforwards, the utilization of the Company’s
NOL may be limited as a result of changes in stock ownership. NOLs incurred subsequent to the latest change in control are not subject
to the limitation.



The
Company’s operations are based in California and it is subject to Federal and California state income tax. Tax years after 2017
are open to examination by United States and state tax authorities.



The
Company adopted the provisions of ASC 740, which requires companies to determine whether it is “more likely than not” that
a tax position will be sustained upon examination by the appropriate taxing authorities before any tax benefit can be recorded in the
financial statements. ASC 740 also provides guidance on the recognition, measurement, classification and interest and penalties related
to uncertain tax positions. As of December 31, 2021, and December 31, 2020, no liability for unrecognized tax benefits was required to
be recorded or disclosed.



F-16









NOTE
10 – STOCKHOLDERS’ DEFICIT



The
Company’s authorized capital consists of 3,000,000,000 shares, of which 2,975,000,000 shares are designated as shares of common
stock, par value $0.001 per share, and 25,000,000 shares are designated as shares of preferred stock, par value $0.001 per share. 2,500,000
shares of preferred stock are currently outstanding at December 31, 2021, and designated as Series A. Shares of preferred stock may be
issued in one or more series, each series to be appropriately designated by a distinguishing letter or title, prior to the issuance of
any shares thereof. The voting powers, designations, preferences, limitations, restrictions, relative, participating, options and other
rights, and the qualifications, limitations, or restrictions thereof, of the preferred stock are to be determined by the Board of Directors
before the issuance of any shares of preferred stock in such series.



Series
A Preferred Stock



On
April 14, 2020, the Company filed a Certificate of Designation for the Company’s Series A Preferred Stock (“Series A”)
with the Secretary of State of Nevada designating 2,500,000 shares of its authorized preferred stock as Series A Preferred Stock, par
value of $0.001 per share. The Series A Preferred Stock is not entitled to receive any dividends or liquidation preference and are not
convertible into shares of the Company’s common stock. The holders of the Series A Preferred Stock, in the aggregate, have voting
power equal to 51% of the total votes of all of the outstanding common and preferred stock of the Company entitled to vote. Accordingly,
each share of Series A Preferred Stock shall have voting rights equal to one and one-tenth (1.1) times a fraction, the numerator of which
is the shares of outstanding common stock and undesignated preferred stock of the Company and the denominator of which is number of shares
of outstanding Series A Preferred Stock. With respect to all matters upon which stockholders are entitled to vote or give consent, the
holders of the outstanding shares of Series A Preferred Stock shall vote with the holders of the common stock and any outstanding preferred
stock without regard to class, except as to those matters on which separate class voting is required by applicable law or the Company’s
Articles of Incorporation.



On
April 14, 2020, The Company issued 2,500,000 shares of the Series A to the Company’s Chief Executive Officer in a private placement
transaction. The fair value of the stock was determined to be $465,000 as determined by a third party valuation expert, and was recorded
as stock compensation.



On
November 16, 2020, the Company entered into a Control Block Transfer Agreement with Eric Rice and Phillip Sands, pursuant to which, Mr.
Rice agreed to transfer the 2,500,000shares of the Series A to Mr. Sands. Mr.
Rice agreed to transfer the Control Block to Phillip Sands in order to consummate the Company’s transition into a holding company,
without requiring the Company to further dilute its stock through the issuance of new shares.



Phil Sands resigned as an officer and director
of the Company on May 10, 2021. Simultaneously therewith, the Company executed a Control Block Transfer Agreement with Phil Sands and
Arthur Mikaelian, pursuant to which, effective Mr. Sands agreed to transfer 2,500,000 shares of the Company’s Series A Super Voting
Preferred Stock to Dr. Mikaelian, representing a transfer of majority voting control over the Company because the holder of such 2,500,000
shares of our Series A Super Voting Preferred Stock automatically carries a vote equal to 51% on all matters submitted to a vote of the
holders of our Common Stock and Preferred Stock.



Series
B Preferred Stock



On
December 21, 2020, the Company entered into a Securities Exchange Agreement with Medolife Rx, Inc., a Wyoming corporation, (“Medolife
Rx”) pursuant to which, the Company agreed to acquire 51% of Medolife Rx in exchange for 9,000 shares of newly created Series B
Convertible Preferred Stock, which, were issued to Dr. Arthur Mikaelian upon closing on January 14, 2021. Dr. Mikaelian’s 9,000
shares of Series B Convertible Preferred Stock are convertible into fifty-four percent (54%) of the issued and outstanding shares of
the Company’s common stock on a fully converted basis.



Series
C Convertible Preferred Stock - Description



The
terms of the Certificate of Designation of the Series C Convertible Preferred Stock, which was filed with the State of Nevada on January
12, 2021, state that such Series C Convertible shares have a par value of $0.00001 per share and a stated value of $100 per share (the
“Stated Value”) and each Series C Preferred Share shall be convertible into 6,750 shares of Common Stock (“Conversion
Ratio”), at the option of a Holder, at any time and from time to time, from and after the issuance of the Series C Preferred Stock;
provided that, for a period of twenty for (24) months from the Issuance Date, if the Company issues shares of common stock, including
common stock as the result of the purchase, exercise or conversion of outstanding derivative or convertible securities (or securities,
including any derivative securities, containing the right to purchase, exercise or convert into shares of common stock) (the “Dilution
Shares”) such that the outstanding number of shares of common stock on a fully diluted basis shall be greater than one hundred
twelve million five hundred thousand (112,500,000) shares (inclusive of conversions of Series C Preferred Stock at the Conversion Ratio
immediately above), then the Conversion Ratio for the Series C Preferred Stock then outstanding and unconverted as of the date the Dilution
Shares are issued shall be adjusted to equal the Conversion Ratio multiplied by a fraction, the numerator of which shall be the number
of shares outstanding on a fully diluted basis after the issuance of the Dilution Shares, and the denominator shall be one hundred twelve
million five hundred thousand (112,500,000). Subject to the beneficial ownership limitations of 9.99%, set forth in Section 5 (b) of
the attached Series C Convertible Preferred Stock Certificate of Designation, each holder of the Series C Preferred Stock shall have
the right to vote on any matter that may from time to time be submitted to the Company’s shareholders for a vote, on an as converted
basis, either by written consent or by proxy.



On
January 14, 2021, the Board of Directors of the Company approved the issuance of all 1,000 authorized shares of Series C Convertible
Preferred Stock to the following Medolife Rx Designees:



|Trillium Partners LP      | 500 Shares of Series C Preferred
    Stock
|------------------------- | ------------------------------------------
|                          |                                           
|Sagittarii Holdings, Inc. | 500 Shares of Series C Preferred Stock    



The
stock will be valued on the basis of the greater of the value of the services received or the fair value of the Series C convertible
preferred shares issued.



Common
Stock



On
November 20, 2020, the Board of Directors approved an increase in the Company’s authorized shares of Common Stock from 100,000,000
to 500,000,000 shares by Unanimous Written Consent. The Secretary of State of Nevada approved the share increase.



The
Company has 500,000,000 shares of par value $0.001 common stock authorized and 46,756,970 shares outstanding as of December 31, 2020.
At December 31, 2019 there were 100,000,000 shares of par value $0.001 common stock authorized and 49,087,255 shares outstanding.



F-17









Common
stock share cancellation by former executive



On
November 16, 2020, the Company entered into a Share Cancellation Agreement with Eric Rice, holder of 18,030,032 shares of QNTA Common
Stock, pursuant to which Mr. Rice agreed to cancel 17,030,032 shares (16,951,432 shares were cancelled December 29, 2020), and to retain
ownership of 1,000,000 shares of Common Stock.



Common
stock issued for cash



During
the year ended December 31, 2020, the Company agreed to issue 407,408 shares of common stock in a private placement of shares at a price
of $0.26 per share for total proceeds of $125,000.



Common
stock issued as compensation



During
the year ended December 31, 2021, the Company issued 14,964,425 shares of common stock to employees and officers of the Company. The
fair value of the shares was determined to be $1,316,884 based on the closing price of the Company’s common stock on the date shares
were granted, and recorded as stock compensation in selling, general and administrative expense during the year ended December 31, 2021.



During
the year ended December 31, 2021, the Company issued 21,881,628 shares with a fair market value of $816,185 in the a cashless exercise
of a warrant.



During
the year ended December 31, 2020, the Company issued 451,198 shares of common stock to employees and officers of the Company. The fair
value of the shares was determined to be $71,001 based on the closing price of the Company’s common stock on the date shares were
granted, and recorded as stock compensation in selling, general and administrative expense during the year ended December 31, 2020.



During
the year ended December 31, 2020, the Company recorded $1,267,720 to stock-based compensation as accretion of the expense related to
grants of restricted stock (see below).



During
the year ended December 31, 2020, the Company issued 750,000 common shares of stock to service vendors for a total fair value of $60,200.



Restricted
common stock



On
May 20, 2019, the Company agreed to issue 8,000,000 shares of the Company’s common stock with vesting terms to Arthur G. Mikaelian,
Ph.D , a consultant for services (see Note 12). 1,000,000 shares vested immediately, and the balance of 7,000,000 shares vest 625,000
shares per quarter over 2.8 years. In the event the consultants service with the Company terminates, any or all of the shares of common
stock held by such recipient that have not vested as of the date of termination are forfeited to the Company in accordance with such
restricted grant agreement.



The
total fair value of the 8,000,000 shares was determined to be $4,000,000 based on the price per shares of a contemporaneous private placement
of the Company’s common stock on the date granted. The Company accounts for the share awards using a graded vesting attribution
method over the requisite service period, as if each tranche were a separate award. During the year ended December 31, 2020 and 2019,
total share-based expense recognized related to vested restricted shares totaled $1,267,720 and $2,317,868, respectively. At December
31, 2020, there was $431,411 of unvested compensation related to these awards that will be amortized over a remaining vesting period
of 1.4 years.



The
following table summarizes restricted common stock activity for the years ended December 31, 2021 and 2020:

Summary of Restricted Common Stock Activity

|                                     |  | Number of shares |            |   | Fair value of shares |  
|------------------------------------ |  | ---------------- | ---------- | - | -------------------- | -
|Non-vested shares, December 31, 2019 |  |                  | -          |   |                      | $
|Granted                              |  |                  | 5,750,000  |   |                      |  
|Vested                               |  |                  | (2,500,000 | ) |                      |  
|Forfeited                            |  |                  | -          |   |                      |  
|Non-vested shares, December 31, 2020 |  |                  | 3,250,000  |   |                      |  
|Granted                              |  |                  | -          |   |                      |  
|Vested                               |  |                  | (1,875,000 | ) |                      |  
|Forfeited                            |  |                  | -          |   |                      |  
|Non-vested shares, December 31, 2021 |  |                  | 1,375,000  |   |                      | $



As
of December 31, 2021, no shares have been issued and 4,750,000 vested shares are included in shares to be issued on the accompanying
financial statements



Common
stock issued in conversion of convertible notes payable



The
Company issued 131,876,929 common shares of stock to holders of convertible notes for shares valued at $2,113,297.



Stock
Options



During
the year ended December 31, 2019, the Company issued options exercisable into 3,290,000 shares of common stock. The options initially
had an exercise price of $0.23 per share, and this was amended in May 2020 to $0.10 per share. The Company used the Black-Scholes-Merton
option pricing model to estimate the fair value of the modified option grants immediately before and immediately after the modification
and determined the change in fair value related to the modification was de minimis.



F-18









During
the year ended December 31, 2020, the Company issued options exercisable into 900,000 shares of common stock. 600,000 of the options
vested immediately, and 300,000 of the options vest over 24 months. The options have an exercise price of $0.10 to $0.14 per share, and
expire in ten years. Total fair value of these options at grant date was approximately $85,000 which was determined using the Black-Scholes-Merton
option pricing model with the following average assumption: stock price $0.14 per share, expected term ranging from five years, volatility
236%, dividend rate of 0% and risk-free interest rate of 0.17%.



During
the years ended December 31, 2021 and 2020, the Company recognized $34,905 and $290,132, respectively, of compensation expense relating
to vested stock options. As of December 31, 2021, the amount of unvested compensation related to stock options was approximately $48,000
which will be recorded as an expense in future periods as the options vest.



The
risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of measurement corresponding with the expected
term of the share option award; the expected term represents the weighted-average period of time that share option awards granted are
expected to be outstanding giving consideration to vesting schedules and historical participant exercise behavior; the expected volatility
is based upon historical volatility of the Company’s common stock; and the expected dividend yield is based on the fact that the
Company has not paid dividends in the past and does not expect to pay dividends in the future.



A
summary of stock option activity during the years ended December 31, 2020 and 2019:

SUMMARY
OF STOCK OPTION ACTIVITY

|                                            |  | Number of options |            |   | Weighted Average  Exercise Price |   |      | Contractual  Life in Years | 
|------------------------------------------- |  | ----------------- | ---------- | - | -------------------------------- | - | ---- | -------------------------- | 
|Options Outstanding as of December 31, 2019 |  |                   | 3,230,000  |   |                                  | $ | 0.10 |                            | 
|Granted                                     |  |                   | 900,000    |   |                                  |   | 0.11 |                            | 
|Exercised                                   |  |                   | -          |   |                                  |   | -    |                            | 
|Expired                                     |  |                   | -          |   |                                  |   | -    |                            | 
|Options Outstanding as of December 31, 2020 |  |                   | 4,130,000  |   |                                  |   | 0.11 |                            | 
|Granted                                     |  |                   | -          |   |                                  |   | -    |                            | 
|Exercised                                   |  |                   | (350,000   | ) |                                  |   | -    |                            | 
|Expired                                     |  |                   | (3,005,000 | ) |                                  |   | -    |                            | 
|Options Outstanding as of December 31, 2021 |  |                   | 775,000    |   |                                  |   | 0.10 |                            | 
|Options Exercisable as of December 31, 2021 |  |                   | 775,000    |   |                                  | $ | 0.10 |                            | 



At
December 31, 2021, the options outstanding had no intrinsic value.



Stock
Warrants



In
2021, the Company issued warrants exercisable into 46,881,628 shares of common stock. The warrants were fully vested when issued, have
an exercise price of $0.01 per share, and expire in 2022. Total fair value of these warrants at grant date was approximately $1,066,000.
During the year ended December 31, 2021, there was a cashless exercise of the 21,881,628 warrants.



A
summary of warrant activity during the year ended December 31, 2021 and 2020 is as follows:

SCHEDULE
OF WARRANT ACTIVITY

|                                                             |  | Number of warrants |             |   | Weighted Average  Exercise Price |   |      | Contractual  Life in Years | 
|------------------------------------------------------------ |  | ------------------ | ----------- | - | -------------------------------- | - | ---- | -------------------------- | 
|                                                             |  |                    |             |   |                                  |   |      |                            | 
|Warrants Outstanding and Exercisable as of December 31, 2019 |  |                    | -           |   |                                  | $ | -    |                            | 
|Granted                                                      |  |                    | -           |   |                                  |   | -    |                            | 
|Exercised                                                    |  |                    | -           |   |                                  |   | -    |                            | 
|Expired                                                      |  |                    | -           |   |                                  |   | -    |                            | 
|Warrants Outstanding and Exercisable as of December 31, 2020 |  |                    | -           |   |                                  |   | -    |                            | 
|Granted                                                      |  |                    | 46,881,628  |   |                                  |   | .023 |                            | 
|Exercised                                                    |  |                    | (21,881,628 | ) |                                  |   | -    |                            | 
|Expired                                                      |  |                    | -           |   |                                  |   | -    |                            | 
|Warrants Outstanding and Exercisable as of December 31, 2021 |  |                    | 25,000,000  |   |                                  | $ | .01  |                            | 



F-19









NOTE
11 – COMMITMENTS AND CONTINGENCIES



COVID-19



The
global outbreak of COVID-19 has negatively affected the U.S. and global economies and has negatively impacted businesses, workforces,
customers, and created significant volatility of financial markets. It has also disrupted the normal operations of many businesses, including
ours. The extent of the impact of the pandemic on our business and financial results will depend largely on future developments, including
the duration and severity of the outbreak, the length of restrictions and business closures, and the impact on capital and financial
markets, all of which are highly uncertain and cannot be predicted. This outbreak could decrease spending, adversely affect demand for
our products and harm our business and results of operations. In the quarters ended June 30, 2020, September 30, 2020, and December 31,
2020, we believe the COVID-19 pandemic did impact our operating results as shipments to customers in the second, third and fourth quarters
were down 13%, 10% and 55% respectively from the first quarter of the year. However, we have not observed any material impairments of
our assets or a significant change in the fair value of our assets due to the COVID-19 pandemic. While it is not possible at this time
to estimate the full impact that COVID-19 will have on our business, restrictions resulting from COVID-19 on general economic conditions
could, among other things, impair our ability to raise capital when needed. This situation is changing rapidly, and additional impacts
may arise that we are not aware of currently.



Contingencies
include lease agreements including the abandoned lease discussed at footnote 3 along with the lease for the headquarters office. In addition,
the license agreement as outlined at footnote 2 poses contingent liabilities.



It
is management’s opinion that there are not material contingent liabilities that are not disclosed in the financial statements and
footnote disclosures as of December 31, 2021.



NOTE
12 – RELATED PARTY TRANSACTIONS



On
December 21, 2020, the Company entered into a Securities Exchange Agreement with Medolife Rx, Inc., a Wyoming corporation, (“Medolife
Rx”) pursuant to which, the Company agreed to acquire 51% of Medolife Rx from entities controlled by Arthur G. Mikaelian, Ph.D.
in exchange for 9,000 shares of newly created Series B Convertible Preferred Stock. Prior to this transaction, Dr. Mikaelian was a consultant
and shareholder in the Company (See Notes 4 and 10). On January 14, 2021, the Company completed the acquisition of 51% of Medolife. At
December 31, 2020 and through January 14, 2021, Medolife Rx had nominal assets, liabilities, and operations. During December 2021, the
Company advanced $235,000 to Medolife Rx in anticipation of the closing of the acquisition transaction. The funds were used to pay certain
expenses on behalf of the Company. At December 31, 2020, the balance of the advance was $134,704 and presented as deferred charges-related
party. In connection with the acquisition of 51% of Medolife Rx, Dr. Mikaelian was appointed as a member of the Board of Directors of
the Company, and also appointed to serve as the Company’s Chief Executive Officer, a role which Dr. Mikaelian assumed on January
14, 2021.



The
Company has an agreement with Dr. Mikaelian in consideration of the Company’s exclusive use of patented technology developed by
Dr. Mikaelian. Pursuant to the agreement, as amended, the Company shall pay a royalty of 25% of all the net income from the sale of licensed
products, as defined with a minimum royalty of $35,000 per month payable in cash or common stock of the Company. In addition, the Company
agreed to issue 8,000,000 shares of the Company’s common stock with vesting terms to the individual (see Note 10). During the year
ended December 31, 2020 and 2019, the Company recognized royalty expenses of $420,000 and $343,300, respectively.



On
November 15, 2020, the Company entered into an interim compensation agreement with Mr. Phillip Sands providing for monthly compensation
of $8,000 commencing December 1, 2020 until March 1, 2021.



On
November 16, 2020, the Company entered into a Control Block Transfer Agreement with Eric Rice and Phillip Sands, pursuant to which, Mr.
Rice agreed to transfer 2,500,000 shares of the Company’s Series A Super Voting Preferred Stock to Mr. Sands, representing a transfer
of majority voting control over the Company because the holder of such 2,500,000 shares of our Series A Super Voting Preferred Stock
automatically carries a vote equal to 51% on all matters submitted to a vote of the holders of our Common Stock and Preferred Stock.
Mr. Rice agreed to transfer the Control Block to Phillip Sands in order to consummate the Company’s transition into a holding company
(transition phase), without requiring the Company to further dilute its stock through the issuance of new shares.



For
the year ended December 31, 2021, the Company recorded revenue of $198,800 from a company controlled by a family member of the Company’s
CEO. During the year ended, the related accounts receivable balance was zero, with $69,500 having been collected and the remaining balance
of $129,300 written off to bad debts.



During
the nine months ended September 30, 2021, the Company recorded administrative expenses of $628,742 to a company controlled by Mr. Mikaelian.



NOTE
13 – SUBSEQUENT EVENTS



Approval
and Issuance of New Classes of Preferred Stock



The
Nevada Secretary of State approved the designations of the Series B and C convertible preferred stock on January 13, 2021



The
Board of Directors of the Company previously approved the creation of 9,000 shares of Series B Convertible Preferred Stock and 1,000
shares of Series C Convertible Preferred Stock to be issued to certain Designees of Medolife Rx, Inc., a Wyoming corporation (“Medolife
Rx”) pursuant to the conditions precedent to closing of the December 21, 2020 Securities Exchange Agreement, under which the Company
acquired 51% of Medolife Rx.



Series
B Convertible Preferred Stock



On
January 14, 2021, the Board of Directors of the Company approved the issuance of all 9,000 of the 9,000 authorized shares of Series B
Convertible Preferred Stock to Dr Arthur Mikaelian, in exchange for 51% of Medolife Rx (see Note 12). The stock will be valued on the
basis of the greater of the assets acquired or the fair value of the Series B convertible preferred shares given in the exchange.



Management
has determined that the net asset value of Medolife Rx is not material as of the date of the acquisition of its 51% interest and therefore
no valuation is performed. As the acquisition will not have a material impact on the Company’s consolidated financial statements,
proforma disclosures have not been presented.



F-20









Series
B Preferred Stock – Designation Summary



The
terms of the Certificate of Designation of the Series B Convertible Preferred Stock, which was filed with the State of Nevada on January
12, 2021, state that the shares of Series B Convertible Preferred Stock are convertible into fifty-four percent (54%) of the issued and
outstanding shares of the Company’s common stock on a fully converted basis. Each share of Series B Preferred Stock shall be convertible
into 6,750 shares of Common Stock (“Conversion Ratio”), at the option of a Holder, at any time and from time to time, from
and after the issuance of the Series B Preferred Stock; provided that, for a period of 24 months from the Issuance Date, if the Company
issues shares of common stock, including common stock as the result of the purchase, exercise or conversion of outstanding derivative
or convertible securities (or securities, including any derivative securities, containing the right to purchase, exercise or convert
into shares of common stock) (the “Dilution Shares”) such that the outstanding number of shares of common stock on a fully
diluted basis shall be greater than 112,500,000 shares (inclusive of conversions of Series B Preferred Stock at the Conversion Ratio
immediately above), then the Conversion Ratio for the Series B Preferred Stock then outstanding and unconverted as of the date the Dilution
Shares are issued shall be adjusted to equal the Conversion Ratio multiplied by a fraction, the numerator of which shall be the number
of shares outstanding on a fully diluted basis after the issuance of the Dilution Shares, and the denominator shall be 112,500,000. Each
holder of the Series B Preferred Stock shall have the right to vote on any matter that may from time to time be submitted to the Company’s
shareholders for a vote, on an as-converted basis, either by written consent or by proxy.



Series
C Convertible Preferred Stock



On
January 14, 2021, the Board of Directors of the Company approved the issuance of all 1,000 authorized shares of Series C Convertible
Preferred Stock to the following Medolife Rx Designees:



|Trillium
    Partners LP      | 500
    Shares of Series C Preferred Stock
|----------------------------- | ------------------------------------------
|                              |                                           
|Sagittarii
    Holdings, Inc. | 500
    Shares of Series C Preferred Stock



The
stock will be valued on the basis of the greater of the value of the services received or the fair value of the Series C convertible
preferred shares issued.



Series
C Preferred Stock – Designation Summary



The
terms of the Certificate of Designation of the Series C Convertible Preferred Stock, which was filed with the State of Nevada on January
12, 2021, state that such Series C Convertible shares have a par value of $0.00001 per share and a stated value of $100 per share (the
“Stated Value”) and each Series C Preferred Share shall be convertible into 6,750 shares of Common Stock (“Conversion
Ratio”), at the option of a Holder, at any time and from time to time, from and after the issuance of the Series C Preferred Stock;
provided that, for a period of 24 months from the Issuance Date, if the Company issues shares of common stock, including common stock
as the result of the purchase, exercise or conversion of outstanding derivative or convertible securities (or securities, including any
derivative securities, containing the right to purchase, exercise or convert into shares of common stock) (the “Dilution Shares”)
such that the outstanding number of shares of common stock on a fully diluted basis shall be greater than 112,500,000 shares (inclusive
of conversions of Series C Preferred Stock at the Conversion Ratio immediately above), then the Conversion Ratio for the Series C Preferred
Stock then outstanding and unconverted as of the date the Dilution Shares are issued shall be adjusted to equal the Conversion Ratio
multiplied by a fraction, the numerator of which shall be the number of shares outstanding on a fully diluted basis after the issuance
of the Dilution Shares, and the denominator shall be 112,500,000. Subject to the beneficial ownership limitations of 9.99%, set forth
in Section 5 (b) of the attached Series C Convertible Preferred Stock Certificate of Designation, each holder of the Series C Preferred
Stock shall have the right to vote on any matter that may from time to time be submitted to the Company’s shareholders for a vote,
on an as converted basis, either by written consent or by proxy.



Notice
of Default and Demand for Payment



From
February 5, 2021, the Company received notifications of default and demand for payment from attorneys representing three note holders.
The note holders entered into Product Revenue Loan Agreements totaling $153,300 including accrued interest and attorney fees. The Company
has engaged legal counsel to address the issue with the goal of a settlement rather than litigation.



Common
Stock Issued



In
January and February 2022, the Company issued a total of 43,621,756 shares of its common stock to individuals as compensation for services,
valued at the fair value of the shares of the Company’s stock on the dates issued.



Since
December 31, 2021, a total of 43,950,258 of common shares were issued to convertible note holders in exchange for principal and interest
of notes held.



F-21