CBIH Eyes Cannabis Market Boom with Research, Education & CBD Products

TL;DR

**CBIH is a high-risk, high-reward bet on the future of medical cannabis, but federal illegality looms large over its ambitious patent and product plans.**

AI Summary

Cannabis Bioscience International Holdings, Inc. (CBIH) is strategically positioning itself in the rapidly expanding cannabis industry, focusing on research, education, and product development. The company operates three distinct businesses: Pharmacology University for cannabis-related research and education, Alpha Research Institute for clinical trials involving cannabis and CBD products, and plans to launch 'VitaCookies' for CBD product manufacturing and sales. CBIH has filed 10 utility patent applications with the USPTO, plans 10 more, and holds 12 U.S. trademarks, alongside an intellectual property portfolio of over 100 medical formulations. Despite operating with significantly lower capital than competitors, CBIH aims for scientific and clinical achievements rivaling larger players. The U.S. legal cannabis market, valued at approximately $27 billion in 2022, is projected to reach $44-$45 billion in 2025 and up to $87 billion by 2035. The global medical cannabis market, valued at $12.65 billion in 2024, is anticipated to grow at a CAGR of 24% to $108.7 billion by 2034. CBIH actively participates in public policy, including the DEA's 2024 hearing on rescheduling marijuana, advocating for scientific research and regulated access.

Why It Matters

CBIH's aggressive intellectual property strategy, including 10 patent applications and 100 medical formulations, positions it to capitalize on the burgeoning medical cannabis market, projected to hit $108.7 billion by 2034. For investors, this signals potential for significant growth in a sector still navigating complex federal regulations, offering a high-risk, high-reward opportunity. Employees and customers could benefit from advancements in cannabis-based therapies for conditions like cancer and chronic pain, potentially reducing opioid reliance. The company's engagement with the DEA on rescheduling marijuana highlights its role in shaping the broader market's regulatory future, potentially impacting competitors and the entire industry's operational landscape.

Risk Assessment

Risk Level: high — The primary risk is the federal illegality of cannabis, despite state-level legalization, as stated in the filing: 'Under federal law, however, those activities are illegal.' This means CBIH's operations, even if compliant with state laws, violate the Controlled Substances Act, exposing the company to potential federal prosecution, substantial fines, and forfeiture, which could severely impact its approximately $2.9 million market value.

Analyst Insight

Investors should approach CBIH with extreme caution, recognizing the significant regulatory overhang from federal cannabis prohibition. While the company's intellectual property and market projections are compelling, the inherent legal risks demand a thorough understanding of potential federal enforcement actions before considering any investment.

Key Numbers

• $27 billion — U.S. cannabis market sales in 2022 (demonstrates significant market size and growth potential)
• $44-$45 billion — Estimated U.S. cannabis market value in 2025 (shows rapid projected growth in the near term)
• $108.7 billion — Projected global medical cannabis market value by 2034 (highlights the massive long-term opportunity for CBIH's medical focus)
• 24% — Compound Annual Growth Rate (CAGR) for global medical cannabis market (2024-2034) (indicates strong, sustained growth in CBIH's target market)
• 11,626,749,347 — Shares of common stock outstanding as of September 22, 2025 (reflects a highly diluted share structure)
• $2.9 million — Aggregate market value of common stock held by non-affiliates as of November 29, 2024 (indicates a relatively small market capitalization for the company)
• 10 — Utility patent applications filed with USPTO (demonstrates active intellectual property development)
• 12 — U.S. trademarks held (shows brand protection efforts)
• 100+ — Medical formulations in intellectual property portfolio (highlights extensive product development and research)
• 88% — Americans supporting legal medical cannabis use (indicates strong public support for CBIH's core business)

Key Players & Entities

• Cannabis Bioscience International Holdings, Inc. (company) — registrant
• Pharmacology University (company) — trade name for cannabis research and education business
• Alpha Research Institute (company) — trade name for clinical trials business
• VitaCookies (company) — planned CBD product line
• U.S. Patent and Trademark Office (regulator) — recipient of 10 utility patent applications
• Drug Enforcement Administration (regulator) — participated in 2024 hearing on marijuana rescheduling
• Merrick Garland (person) — current U.S. Attorney General
• U.S. Court of Appeals for the Ninth Circuit (regulator) — ruled on DOJ funding for medical cannabis prosecutions
• World Health Organization (company) — source of cancer statistics
• Bloomberg (company) — publisher for this analysis

FAQ

Risk Factors

• Evolving Legal and Regulatory Landscape [high — regulatory]: The Company's operations are subject to extensive and evolving federal, state, and local laws and regulations governing cannabis and hemp. Changes in these laws, including potential federal rescheduling or de-scheduling of marijuana, could materially impact the Company's ability to conduct its research, development, and commercialization activities. For instance, the DEA's 2024 hearing on rescheduling marijuana highlights the ongoing uncertainty.
• Limited Operating History and Profitability Concerns [high — financial]: CBIH has a limited operating history and has not yet achieved profitability. The Company's ability to generate significant revenue and achieve sustainable profitability is dependent on the successful development and commercialization of its products and services, which carries inherent risks. The company's aggregate market value of common stock held by non-affiliates was only $2.9 million as of November 29, 2024.
• Dependence on Intellectual Property and Research Success [medium — operational]: The Company's strategy relies heavily on its intellectual property portfolio, including 10 utility patent applications and over 100 medical formulations. The success of its research and clinical trials, such as those conducted by Alpha Research Institute, is critical. Failure to secure patents or achieve positive clinical outcomes could significantly hinder its growth prospects.
• Intense Competition in the Cannabis Industry [medium — market]: The cannabis industry is highly competitive, with numerous established players and new entrants. CBIH faces competition from companies with significantly greater capital resources and market presence. The U.S. cannabis market was valued at $27 billion in 2022, indicating a large but crowded space.
• Diluted Share Structure and Capital Needs [medium — financial]: The Company has a substantial number of common shares outstanding, totaling 11,626,749,347 as of September 22, 2025, indicating a highly diluted share structure. This, coupled with its need for capital to fund research, development, and commercialization, presents ongoing financing challenges.
• Reliance on Key Personnel and Strategic Partnerships [low — operational]: The success of CBIH's research and business development efforts is dependent on its key personnel and its ability to establish and maintain strategic partnerships. The loss of key individuals or the failure to secure necessary collaborations could impede progress.

Industry Context

The U.S. cannabis market is experiencing rapid growth, valued at approximately $27 billion in 2022 and projected to reach $44-$45 billion by 2025. The global medical cannabis market is also expanding significantly, with a projected CAGR of 24% to $108.7 billion by 2034. CBIH operates within this dynamic landscape, focusing on research, education, and product development, while navigating intense competition from larger, well-capitalized entities.

Regulatory Implications

CBIH faces significant regulatory risks due to the evolving legal status of cannabis. The company's operations are subject to federal, state, and local laws, and potential changes in regulations, such as the DEA's review of marijuana rescheduling, could materially impact its business. Compliance with these diverse and changing regulations is critical for its continued operation and growth.

What Investors Should Do

1. Monitor regulatory developments closely.
2. Assess the progress and success of patent applications and clinical trials.
3. Evaluate the commercialization strategy for 'VitaCookies'.
4. Analyze the company's ability to secure future funding.

Glossary

USPTO

United States Patent and Trademark Office. This is the federal agency responsible for granting U.S. patents and registering trademarks. (CBIH has filed 10 utility patent applications with the USPTO, indicating its focus on protecting its intellectual property and innovations in cannabis research and product development.)

DEA

Drug Enforcement Administration. This is a federal agency responsible for enforcing the nation's laws regarding controlled substances. (CBIH's participation in the DEA's 2024 hearing on rescheduling marijuana highlights the significant regulatory uncertainty and advocacy efforts surrounding cannabis in the U.S.)

CAGR

Compound Annual Growth Rate. This is a measure of the average annual growth rate of an investment over a specified period of time, assuming that profits were reinvested at the end of each year. (The projected 24% CAGR for the global medical cannabis market by 2034 underscores the substantial growth potential in CBIH's target market.)

CBD

Cannabidiol. A chemical compound from the cannabis plant that may provide medical benefits. (CBIH's Alpha Research Institute is involved in clinical trials for CBD products, and the company plans to launch 'VitaCookies' for CBD product manufacturing and sales.)

Intellectual Property Portfolio

A collection of intangible assets such as patents, trademarks, copyrights, and trade secrets that are owned by an individual or company. (CBIH's extensive intellectual property portfolio, including over 100 medical formulations and patent applications, is a core component of its business strategy and competitive advantage.)

Year-Over-Year Comparison

Information regarding year-over-year comparisons of key metrics such as revenue, margins, and financial position is not available in the provided text. The filing focuses on the current business overview, risk factors, and market context, without direct comparative data to a previous filing.

Key Financial Figures

• $27 billion — ned growth since reaching approximately $27 billion in sales in 2022 (Brightfield Group), w
• $44 — imates placing the market value between $44 and $45 billion in 2025 (Grand View Res
• $45 billion — lacing the market value between $44 and $45 billion in 2025 (Grand View Research, Statista)
• $50 billion — (Grand View Research, Statista), around $50 billion by 2028 (Brightfield and Statista), and
• $67 — ld and Statista), and within a range of $67 to $76 billion by 2030 (Whitney Economi
• $76 billion — Statista), and within a range of $67 to $76 billion by 2030 (Whitney Economics and Grand Vi
• $87 billion — and View Research), reaching as high as $87 billion by 2035 (Whitney Economics), which conf
• $12.65 b — the market was valued at approximately $12.65 billion, and forecasts anticipate that it
• $108.7 billion — 24% through 2034, potentially reaching $108.7 billion by that year. Another projection estima
• $14.34 billion — nother projection estimates growth from $14.34 billion in 2024 to $52.23 billion by 2034, at a
• $52.23 billion — s growth from $14.34 billion in 2024 to $52.23 billion by 2034, at a CAGR of 13.8%. These tren
• $288 billion — panies worldwide invested approximately $288 billion in research and development (R&D), acco
• $15.5 billion — ts sales in the cannabis industry to be $15.5 billion and $20.3 billion in 2020 and 2021, res
• $20.3 billion — nnabis industry to be $15.5 billion and $20.3 billion in 2020 and 2021, respectively, and sal
• $37 billion — ectively, and sales could be as high as $37 billion in 2024. The size of the industry was o

Filing Documents

• cannabisbio_i10k-053125.htm (10-K) — 767KB
• cannabisbio_ex1017.htm (EX-10.17) — 27KB
• cannabisbio_ex1019.htm (EX-10.19) — 16KB
• cannabisbio_ex3100.htm (EX-31) — 11KB
• cannabisbio_ex3200.htm (EX-32) — 4KB
• image_001.jpg (GRAPHIC) — 1537KB
• image_002.jpg (GRAPHIC) — 219KB
• image_003.jpg (GRAPHIC) — 111KB
• image_004.jpg (GRAPHIC) — 507KB
• image_005.jpg (GRAPHIC) — 177KB
• image_006.jpg (GRAPHIC) — 361KB
• image_007.jpg (GRAPHIC) — 329KB
• 0001683168-25-007174.txt ( ) — 8166KB
• cbih-20250531.xsd (EX-101.SCH) — 27KB
• cbih-20250531_cal.xml (EX-101.CAL) — 44KB
• cbih-20250531_def.xml (EX-101.DEF) — 86KB
• cbih-20250531_lab.xml (EX-101.LAB) — 273KB
• cbih-20250531_pre.xml (EX-101.PRE) — 219KB
• cannabisbio_i10k-053125_htm.xml (XML) — 306KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 14 Item 1B. Unresolved Staff Comments 14 Item 1C. Cybersecurity 14 Item 2.

Properties

Properties 15 Item 3.

Legal Proceedings

Legal Proceedings 15 Item 4. Mine Safety Disclosures 15 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 16 Item 6. [Reserved] 16 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 20 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 21 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 22 Item 9A.

Controls and Procedures

Controls and Procedures 22 Item 9B. Other Information 23 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 23 PART III Item 10. Directors, Executive Officers and Corporate Governance 24 Item 11.

Executive Compensation

Executive Compensation 26 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 29 Item 13. Certain Relationships and Related Transactions, and Director Independence 29 Item 14. Principal Accountant Fees and Services 32 PART IV Item 15. Exhibits and Financial Statement Schedules 33 Item 16. Form 10-K Summary 34

Signatures

Signatures 35 i CAUTIONARY NOTES

Forward-Looking Statements

Forward-Looking Statements This Annual Report on Form 10-K, including "Management's Discussion and Analysis of Financial Condition and Results of Operations," contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Report, including statements regarding our strategy, future financial condition, future operations, projected costs, prospects, plans, objectives of management, and expected market growth, are forward-looking statements. In some cases, you can identify forward-looking "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "goal," "objective," "seeks," or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Forward-looking statements contained in this Report include, but are not limited to, our expectations regarding our financial performance; our expectations regarding future operating performance; our ability to attract and retain customers; our ability to compete in our industries; our ability to meet our liquidity needs; our ability to effectively manage our exposure to fluctuations in foreign currency exchange rates; the increased expenses associated with being a public company; the size of our addressable markets, market share, and market trends, including our ability to grow our business in the countries we have identified as near- term priorities; anticipated trends, developments, and challenges in our industry, business, and the highly competitive markets in which we operate; our ability to anticipate market needs or develop new or enhanced offerings and services to meet those needs; our ability to manage expansion into international markets and new industries; ou

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