UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 10-Q



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



For the quarterly period ended March
31, 2017



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



Commission File No. 333-120490



024
PHARMA, INC.

(Exact name of the Registrant as specified
in Charter)



|New Jersey                                                   | 20-1862731                 
|------------------------------------------------------------ | ---------------------------
|(State of Incorporation)                                     | (I.R.S. Employer ID Number)
|                                                             |                            
|224 Datura Street, West Palm Beach, Florida                  | 33401                      
|(Address of Principal Executive Offices)                     | (Zip Code)                 
|                                                             |                            
|Registrant’s Telephone No. including Area Code: 732-696-9333



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



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



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



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



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



|Large accelerated filer  ☐                                                     | Accelerated filer  ☐        
|------------------------------------------------------------------------------ | ----------------------------
|Non-accelerated filer  ☐
        (Do not check if a smaller reporting company) | Smaller reporting company  ☒



Indicate the number of shares
outstanding of the issuer's common stock, as of the latest practical date: 336,354,321 shares of Class A Common stock, no
par value per share, and 134,410 shares of Class B common, par value of $.01 per share, as of April 7, 2017.
















|
|
|

Table of Contents

|                               |                                                                                      | Page
|------------------------------ | ------------------------------------------------------------------------------------ | ----
|Part I – Financial Information |                                                                                     
|                               |                                                                                      |     
|Item 1.                        | Condensed Financial Statements (Unaudited):                                          |     
|                               |                                                                                      |     
|                               | Condensed Balance Sheets                                                             | 3   
|                               |                                                                                      |     
|                               | Condensed Statements of Earnings                                                     | 4   
|                               |                                                                                      |     
|                               | Condensed Statements of Retained Earning                                             | 5   
|                               |                                                                                      |     
|                               | Notes to Condensed Financial Statements                                              | 6   
|                               |                                                                                      |     
|Item 2.                        | Management’s Discussion and Analysis of Financial Condition and Result of Operations | 11  
|                               |                                                                                      |     
|Item 3.                        | Quantitative and Qualitative Disclosures About Market Risk                           | 13  
|                               |                                                                                      |     
|Item 4.                        | Controls and Procedures                                                              | 13  
|                               |                                                                                      |     
|Part II – Other Information    |                                                                                     
|                               |                                                                                      |     
|Item 1.                        | Legal Proceedings                                                                    | 14  
|                               |                                                                                      |     
|Item 2.                        | Unregistered Sales of Equity Securities and Use of Proceeds                          | 14  
|                               |                                                                                      |     
|Item 3.                        | Defaults Upon Senior Securities                                                      | 14  
|                               |                                                                                      |     
|Item 4.                        | Mine Safety Disclosures                                                              | 14  
|                               |                                                                                      |     
|Item 6.                        | Exhibits                                                                             | 14  
|                               |                                                                                      |     
|                               | Signatures                                                                           | 15  











2






PART I - FINANCIAL INFORMATION

Item 1.  Condensed Financial Statements



024 PHARMA,
INC.

CONDENSED BALANCE SHEET

(Unaudited)







|                                              |  | March
31, 2017 |        
|--------------------------------------------- |  | -------------- | -------
|ASSETS                                        | 
|Current                                       |  |                |        
|Cash                                          |  | $              | 6,025  
|Harmonized sales
    tax recoverable          |  |                | 11,372 
|Due
    from related companies                |  |                | 1,874  
|                                              |  |                | 19,271 
|Equipment                                     |  |                |        
|                                              |  |                | 4,290  
|                                              |  | $              | 23,561 
|LIABILITIES                                   | 
|Current                                       |  |                |        
|Accounts payable
    and accrued charges      |  | $              | 3,412  
|Accrued management
    salaries               |  |                | 1,984  
|Income taxes payable                          |  |                | 3,083  
|Advances
    from shareholder                 |  |                | 1,261  
|                                              |  | $              | 9,740  
|SHAREHOLDER'S EQUITY                          | 
|                                              |  |                |        
|Share Capital                                 |  |                | 1      
|Retained Earnings                             |  |                | 36,507 
|Additional paid in capital                    |  |                | (22,687
|Total Shareholders’ Equity                    |  |                | 13,821 
|TotalLiabilities and
    Shareholders’ Equity |  | $              | 23,561 













See accompanying notes to condensed financial
statements.





3








024 PHARMA, INC.

CONDENSED STATEMENTS OF EARNINGS

(Unaudited)







|                                 |  | For
    the      Three Months     Ended      March 31, 2017 |        
|-------------------------------- |  | ----------------------------------------------------------- | -------
|Sales                            |  | $                                                           | 118,545
|Cost of Sales                    |  |                                                             | 75,222 
|Gross
    Profit                 |  | $                                                           | 43,323 
|                                 |  |                                                             |        
|Expenses                         |  |                                                             |        
|Shipping costs                   |  |                                                             | 10,278 
|Web Design                       |  |                                                             | 2,890  
|Advertising and
    promotion    |  |                                                             | 4,082  
|Wages and salaries               |  |                                                             | 1,466  
|Occupancy costs                  |  |                                                             | 908    
|Subcontracts                     |  |                                                             | 885    
|Repairs and maintenance          |  |                                                             | 644    
|Travel                           |  |                                                             | 159    
|Meals and entertainment          |  |                                                             | 148    
|Office and general               |  |                                                             | 561    
|Professional fees                |  |                                                             | 129    
|Printing fee                     |  |                                                             | 17     
|Vehicle expense                  |  |                                                             | 16     
|Telephone and telecommunications |  |                                                             | 7      
|Interest and bank
    charges    |  |                                                             | 148    
|Insurance                        |  |                                                             | 21,917 
|                                 |  |                                                             | 44,255 
|                                 |  |                                                             |        
|Earnings Before Income
    Taxes |  |                                                             | (932   
|Provision
    for income taxes   |  |                                                             | –      
|                                 |  |                                                             |        
|Net
    Earnings                 |  | $                                                           | (932   





See accompanying notes to condensed financial
statements.













4






024 PHARMA, INC.

CONDENSED STATEMENT OF RETAINED
EARNING

(Unaudited)









|                                                    |  | For
    theThree MonthsEndedMarch 31, 2017 |       
|--------------------------------------------------- |  | ------------------------------------------ | ------
|Retained Earnings (Deficit)
    - Beginning of Year |  | $                                          | 37,439
|Net
    Earnings                                    |  |                                            | (932  
|Retained Earnings
End of Period                     |  | $                                          | 36,507































See accompanying notes to condensed financial
statements.







5






024 PHARMA, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS



Note 1 Background



B Green Innovations, Inc., a Matawan, New
Jersey-based corporation, (OTC Pink® marketplace: BGNN), formerly iVoice Technology, Inc., (“B Green Innovations”
or the “Company”) was incorporated under the laws of New Jersey on November 10, 2004 as a wholly owned subsidiary of
iVoice, Inc. (“iVoice”). In May 2008, the Company formed B Green Innovations, Inc. (“B Green”), a wholly-owned
subsidiary to commercialize its “green” technology platforms.



On November 17, 2009, pursuant to an Agreement
and Plan of Merger (the “Merger Agreement”), B Green Innovations, Inc., a wholly owned subsidiary of iVoice Technology,
Inc., merged into iVoice Technology, Inc.



On July 28, 2009, the Board of Directors
and shareholders through written consent representing a majority of the total voting Class A and Class B Common stock voted to
change the name of the Company to B Green Innovations, Inc. On November 20, 2009, the Company filed an Amendment to
the Certificate of Incorporation with the State of New Jersey to officially change the name of the Company.



On October 8, 2016, the Registrant’s
Board of Directors, acting pursuant to its Amended Articles of Incorporation, unanimously approved to change the name of the Registrant
from B Green Innovations, Inc. to 024 Pharma, Inc. by amending Article One of the Registrant’s Articles of Incorporation.
The purpose of the name change is to more fully encapsulate the Registrant’s current operations and business direction. The
New Jersey Secretary of State, effective October 12, 2016, processed the name change and the Registrant has filed for a symbol
change with the Financial Industry Regulatory Authority (“FINRA”). The Company will also obtain a new CUSIP number
in connection with the name change.



Note 2 Business Operations



024 Pharma, Inc. provides the best nutrition
in every area that matters. From vitamin and mineral supplements, stress release, joint and heart health, and weight-loss products,
skin care, healthy hair and anti-aging.



024 Pharma, Inc. gives you what you need
to create healthier lives for you and your family.



024 Pharma, Inc. is known in the international
market for its unique global shareholders system. Company promotes the concept of "People-oriented, Just and Equitable"
which received high appraisal from the majority of the personage from the industry. Everyone can join and become a shareholder.
Everyone can share the return on 024's Pharma, Inc's investment. 024 Pharma, Inc. is destined to become the most influential and
competitive shareholders group.



024 Pharma’s premium quality products
do more than improve people’s health—they transform their lives. Sourced, manufactured and tested against the most
rigorous quality standards, our unique product portfolio delivers more than over 220 personalized solutions to optimize your health.



Company’s staff science team formulates
products with a relentless commitment to ingredient purity and potency. That’s why customers trust their products to deliver
proven, repeatable results.











6






024 Pharma make and package products in
their own facility, under conditions and guidelines that meet the most stringent global regulations.



Outfitted with state-of-the-art instrumentation
and combining the skills of accomplished scientists, researchers and medical professionals, our research lab creates a unique environment
in which to pursue scientific discovery and advancement, and it is the hub of our product development and testing.



Note 3 Going Concern



The accompanying condensed financial statements
have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplates
continuation of the Company as a going concern.



Management plans to increase the development,
manufacture, and distribution of products to generate a positive cash flow.



Note 4 Summary of Significant
Accounting Policies



a)    Basis
of Presentation



The accompanying condensed unaudited interim
financial statements included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities
and Exchange Commission ("SEC"). The condensed financial statements and notes are presented as permitted on Form 10-Q
and do not contain information included in the Company's annual statements and notes. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States
of America have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures
are adequate to make the information presented not misleading. It is suggested that these condensed financial statements be read
in conjunction with the December 31, 2015 financial statements and the accompanying notes thereto. While management believes the
procedures followed in preparing these condensed financial statements are reasonable, the accuracy of the amounts are in some respects
dependent upon the facts that will exist, and procedures that will be accomplished by the Company later in the year. These results
are not necessarily indicative of the results to be expected for the full year.



These condensed unaudited financial statements
reflect all adjustments, including normal recurring adjustments, which, in the opinion of management, are necessary to present
fairly the operations and cash flows for the periods presented.



b)    Use
of Estimates



The preparation of financial statements
in conformity with accounting principles generally accepted in the United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results
could differ from those estimates.









7






c)    Revenue
Recognition



In addition to cash flow generated
from sale of natural supplements such as:



| | · | Diabetes
| | - | --------

| | · | Lung cleanse
| | - | ------------

| | · | Seal oil
| | - | --------

| | · | Prostate
| | - | --------

| | · | Stress less
| | - | -----------



Company intends to produce the “health
phone” that will significantly increase demand in their product and enlarge the product purchase. Clients will be able to
purchase products through this smartphone and it contains application that measure heartbeat, calories, fat, excises schedule etc.
The most important thing is that clients will have this option to talk to health specialists.



d)    Product Warranties



The Company estimates its warranty costs
based on historical warranty claims experience in estimating potential warranty claims. Management has determined that warranty
costs are immaterial and has not included an accrual for potential warranty claims. Presently, costs related to warranty coverage
are expensed as incurred. Warranty claims are reviewed quarterly to verify that warranty liabilities properly reflect any remaining
obligation based on the anticipated expenditures over the balance of the obligation period.



e)    Research
and Development Costs



Research and development costs are charged
to expense when incurred. The Company has not incurred any research and development costs for the three months ended March, 31,
2017.



f)    Advertising
Costs



Advertising costs are expensed as incurred
and are included in selling expenses. The Company has incurred advertising costs for the three months ended March, 31, 2017 and
it counts $19,210.46 USD.



g)    Cash
and Cash Equivalents



The Company considers all highly liquid
investments purchased with original maturities of three months or less to be cash equivalents. There were no cash equivalents at
March, 31, 2017 and December 31, 2015. The Company maintains cash balances at financial institutions that are insured by the Federal
Deposit Insurance Corporation (“FDIC”) up to federally insured limits. At times balances may exceed FDIC insured limits.
The Company has not experienced any losses in such accounts.











8






h)   Concentration
of Credit Risk



Financial instruments that potentially
subject the Company to concentrations of credit risk consist primarily of trade accounts receivable and cash. As of March, 31,
2017 the Company believes it has no significant risk related to its concentration within its accounts receivable.



j)    Accounts Receivable



Accounts receivable are non-interest bearing
obligations due under normal trade terms. Senior management reviews accounts receivable on a monthly basis to determine if any
receivables will be potentially uncollectible. Historical bad debts and current economic trends are used in evaluating the allowance
for doubtful accounts. The Company includes any accounts receivable balances that are determined to be uncollectible, along with
a general reserve, in its overall allowance for doubtful accounts. After all attempts to collect a receivable have failed, the
receivable is written off against the allowance. Based on the information available, the Company believes its allowance for doubtful
accounts as of March, 31, 2017 and December 31, 2015 is adequate.



j)   Property
and Equipment



Property and equipment is stated at cost.
Depreciation is computed using the straight-line method based upon the estimated useful lives of the assets, generally five to
seven years. Maintenance and repairs are charged to expense as incurred.



k)   Intangible Assets



Registration and maintenance costs associated
with the filing and registration of patents are prepaid and amortized over the remaining life of the patent, not to exceed 20 years.
Costs associated with such patents are not approved or abandoned.



l)   Income Taxes



The Company accounts for income taxes using
the asset and liability method described in FASB ASC 740. Deferred tax assets arise from a variety of sources, the most significant
being: a) tax losses that can be carried forward to be utilized against profits in future years; b) expenses recognized in the
books but disallowed in the tax return until the associated cash flow occurs; and c) valuation changes of assets which need to
be tax effected for book purposes but are deductible only when the valuation change is realized.



Deferred tax assets and liabilities are
determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using enacted
tax rates and laws that are expected to be in effect when such differences are expected to reverse. The measurement of deferred
tax assets is reduced, if necessary, by a valuation allowance for any tax benefit, which is not more likely than not to be realized.
In assessing the need for a valuation allowance, future taxable income is estimated, considering the realization of tax loss carryforwards.
Valuation allowances related to deferred tax assets can also be affected by changes to tax laws, changes to statutory tax rates
and future taxable income levels. In the event it was determined, that the Company would not be able to realize all or a portion
of our deferred tax assets in the future, we would reduce such amounts through a charge to income in the period in which that determination
is made. Conversely, if we were to determine that we would be able to realize our deferred tax assets in the future in excess of
the net carrying amounts, we would decrease the recorded valuation allowance through an increase to income in the period in which
that determination is made. In its evaluation of a valuation allowance, the Company takes into account existing contracts and backlog,
and the probability that options under these contract awards will be exercised as well as sales of existing products. The Company
prepares profit projections based on the revenue and expenses forecast to determine that such revenues will produce sufficient
taxable income to realize the deferred tax assets.









9






The Company adopted FASB ASC 740-10-50,
Accounting for Uncertainty in Income Taxes. ASC 740-10-50 prescribes a recognition threshold and measurement attribute for the
financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740-10 requires
that the Company determine whether the benefits of its tax positions are more-likely-than-not of being sustained upon audit based
on the technical merits of the tax position. The Company recognizes the impact of an uncertain income tax position taken on its
income tax return at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority.



Despite the Company’s belief that
its tax return positions are consistent with applicable tax laws, one or more positions may be challenged by taxing authorities.
Settlement of any challenge can result in no change, a complete disallowance, or some partial adjustment reached through negotiations
or litigation.

Interest and penalties related to income
tax matters, if applicable, will be recognized as income tax expense. During the three and three months ended March, 31, 2017 and
2015, the Company did not incur any expense related to interest or penalties for income tax matters, and no such amounts were accrued
as of March, 31, 2017 and December 31, 2015.



m)     Fair Value
of Financial Instruments



The carrying amounts reported in the balance
sheets as of March, 31, 2017 and December 31, 2015 for cash and cash equivalents, marketable securities, accounts receivable, inventories,
prepaid expenses and other current assets, accounts payable and accrued expenses other current liabilities approximate the fair
value because of the immediate or short-term maturity of these financial instruments.  The fair value of the debt approximates
its carrying value at the stated discount rate of the debt to reflect recent market conditions.



n)     Long-Lived
Assets



The Company assesses the recoverability
of the carrying value of its long-lived assets whenever events or changes in circumstances indicate that the carrying amount of
an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount
of an asset to future, undiscounted cash flows expected to be generated by an asset. If such assets are considered to be impaired,
the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of
the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. No impairment
losses were recognized for the three and three months ended March, 31, 2017 and 2015.



o)     Recent Accounting Pronouncements



There were various other updates recently
issued, most of which represented technical corrections to the accounting literature or application to specific industries and
are not expected to a have a material impact on the Company's financial position, results of operations or cash flows.













10








Item 2.  MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULT OF  OPERATIONS



Forward Looking Statements



A number of the statements made by the
Company in this report may be regarded as “forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995.



Forward-looking statements include, among
others, statements concerning the Company’s outlook, pricing trends and forces within the industry, the completion dates
of capital projects, expected sales growth, cost reduction strategies and their results, long-term goals of the Company and other
statements of expectations, beliefs, future plans and strategies, anticipated events or trends and similar expressions concerning
matters that are not historical facts.



All predictions as to future results contain
a measure of uncertainty and accordingly, actual results could differ materially.  Among the factors that could cause
a difference are: changes in the general economy; changes in demand for the Company’s products or in the cost
and availability of its raw materials; the actions of its competitors; the success of our customers; technological change; changes
in employee relations; government regulations; litigation, including its inherent uncertainty; difficulties in plant operations
and materials; transportation, environmental matters; and other unforeseen circumstances. For a discussion of material risks and
uncertainties that the Company faces, see the discussion in the Form 10−K for the fiscal year ended December 31, 2016 entitled
“Risk Factors”.



Results of Operations



Total sales decreased $ 118,545.49 (71.25%)
for the three months ended March, 31, 2017, as compared to the same period in the prior year. This increase is caused by the company
business expansion strategy. The Company continues to evaluate additional products to add to its product line as well as expanding
its distribution channels.



Gross profit decreased $ 43,323.32 (71.25%)
for the three months ended March, 31, 2017, as compared to the same period in the prior year. This increase is caused by the company
management and business model change.



Total selling, general and administrative
expenses decreased $ 186,420.15 (28.75%) for the three months ended March, 31, 2017, as compared to the same period in the prior
year. This decrease was primarily the result of decreases in consulting and legal fees as compared to the prior year when the company
was closing on the new debt instruments. The company continues to curtail spending to conserve cash during this period of declining
revenues.



For the three months ended March, 31, 2017
and 2016, the Company had earnings from operations of $ 36,507.58.



Total other expense decreased $ 58,885.05
for the three months ended March, 2017 as compared to the same period in the prior year, primarily from decreases in amortization
of debt discount and losses on changes in valuation of derivatives and higher settlement expenses on debt to stock conversions.



The net earnings for the three months ended
March, 31, 2017 increased by $ 23,931.58, as compared to the same period in the prior year, primarily from the implementing of
new product line, business model.







11






Liquidity and Capital Resources



During the three months ended March, 31,
2017, the Company had a net increase in cash of $36,507.58.



There was no significant impact on the Company’s
operations as a result of inflation for the three months ended March, 31, 2017.



Critical Accounting Policies



The discussion and analysis of our financial
condition and results of operations are based on our financial statements, which have been prepared in accordance with accounting
principles generally accepted in the United States of America (GAAP). The preparation of these financial statements requires us
to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure
of contingent assets and liabilities. On an on-going basis, we evaluate these estimates, including those related to bad debts,
inventory obsolescence, intangible assets, payroll tax obligations, and litigation. We base our estimates on historical experience
and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis
for making judgments about the carrying values of certain assets and liabilities. Actual results may differ from these estimates
under different assumptions or conditions.



We have identified below the accounting
policy on revenue recognition, related to what we believe is the most critical to our business operations and is discussed throughout
Management’s Discussion and Analysis of Financial Condition or Plan of Operation where such policy affects our reported and
expected financial results.



Revenue Recognition



For natural supplements, revenues
are recognized at the time of shipment to, or acceptance by customer, provided title and risk of loss is transferred to the customer.
Provisions, when appropriate, are made where the right to return exists.



Off Balance Sheet Arrangements



During the three months ended March, 31,
2017, the Company did not engage in any material off-balance sheet activities nor have any relationships or arrangements with unconsolidated
entities established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.
Further, the Company has not guaranteed any obligations of unconsolidated entities nor do they have any commitment or intent to
provide additional funding to any such entities.









12






Item 3.  Quantitative and
Qualitative Disclosures About Market Risk.



We do not hold any derivative instruments
and do not engage in any hedging activities.



Item 4.  Controls and Procedures.



Evaluation of Disclosure Controls
and Procedures



Management of the Company has
evaluated, with the participation of the Chief Executive Officer and Chief Financial Officer of the Company, the effectiveness
of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) promulgated by the Securities and
Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended (the "Exchange Act")) as of the end of
the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, the Chief Executive Officer and Chief Financial
Officer of the Company had concluded that the Company's disclosure controls and procedures as of the period covered by this Quarterly
Report on Form 10-Q were not effective for the following reasons:



a)           The
Company has limited segregation of duties amongst its employees with respect to the Company's control activities. This deficiency
is the result of the Company's limited number of employees. This deficiency may affect management's ability to determine if errors
or inappropriate actions have taken place. Management is required to apply its judgment in evaluating the cost-benefit relationship
of possible changes in our disclosure controls and procedures.



b)           The
Company's has a limited number of external board members. This deficiency may give the impression to the investors that the board
is not independent from management. Management and the Board of Directors are required to apply their judgment in evaluating the
cost-benefit relationship of possible changes in the organization of the Board of Directors.



Changes in internal control over financial
reporting.



Management of the Company has
also evaluated, with the participation of the Chief Executive Officer of the Company, any change in the Company’s internal
control over financial reporting that occurred during the period covered by this Quarterly Report on Form 10-Q and determined that
there was no change in the Company’s internal control over financial reporting that has materially affected, or is reasonably
likely to materially affect, the Company’s internal control over financial reporting.













13






PART II - OTHER INFORMATION



Item 1.  Legal Proceedings



We are currently not involved
in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There
is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory
organization or body pending or, to the knowledge of the executive officers of our company, threatened against or affecting our
company, our common stock.



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



There were no unregistered sales of the
Company’s equity securities during the three months ended March, 31, 2017.



Item 3.  Defaults Upon Senior
Securities.



Not applicable.



Item 4.  Mine Safety Disclosures.



Not applicable.



Item 6.  Exhibits



|31.1 |  | Certification required under Section 302 of the Sarbanes-Oxley Act of 2002
|---- |  | --------------------------------------------------------------------------
|32.1 |  | Certification required under Section 906 of the Sarbanes-Oxley Act of 2002





















14










SIGNATURES



Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.



|                     | 024 PHARMA, INC. |                            
|-------------------- | ---------------- | ---------------------------
|                     |                  |                            
|Date: April 11, 2017 | By:              | /s/ Miro Zecevic           
|                     |                  | Miro Zecevic               
|                     |                  | Chief Executive Officer and
|                     |                  | Chief Financial Officer    

























15