CBIH Revenue Plummets 86% Amid Widening Losses, Cash Dries Up

TL;DR

**CBIH is burning cash and losing revenue at an alarming rate; stay far away from this penny stock.**

AI Summary

Cannabis Bioscience International Holdings, Inc. (CBIH) reported a significant decline in revenue for the three months ended August 31, 2025, falling to $24,200 from $178,887 in the prior year, representing an 86.5% decrease. The company's net loss widened to $82,645 for the quarter, compared to a net loss of $76,305 in the same period last year. This increased loss was primarily driven by a substantial amortization of discount of $19,815 and higher interest expenses of $17,368, despite a positive change in the value of derivative liabilities of $29,322. Total assets decreased from $31,880 on May 31, 2025, to $18,942 on August 31, 2025, while total liabilities increased from $1,195,463 to $1,265,170. The company continues to operate with a significant stockholders' deficiency, which worsened from $(1,163,583) to $(1,246,228) during the quarter. Cash and cash equivalents plummeted from $12,952 to $223, indicating severe liquidity challenges.

Why It Matters

CBIH's drastic revenue decline and worsening financial position signal severe operational distress, raising red flags for investors. The company's dwindling cash reserves and increasing liabilities, particularly related-party payables, suggest a precarious financial future and potential going concern issues. This performance contrasts sharply with the broader cannabis market's growth potential, indicating CBIH is failing to capitalize on industry trends and is losing competitive ground. Employees face job insecurity, and customers may experience service disruptions if the company's financial health continues to deteriorate, impacting market confidence in smaller cannabis-related ventures.

Risk Assessment

Risk Level: high — The company's cash and cash equivalents dropped from $12,952 to $223 in three months, indicating severe liquidity issues. Total liabilities increased by $69,707 to $1,265,170, while total assets decreased by $12,938 to $18,942, demonstrating a deteriorating balance sheet and a significant stockholders' deficiency of $(1,246,228).

Analyst Insight

Investors should avoid CBIH given its rapidly deteriorating financial health, including an 86.5% revenue drop and near-zero cash reserves. The significant increase in liabilities and widening net loss suggest a high risk of insolvency and further value erosion.

Financial Highlights

debt To Equity

N/A

revenue

$24,200

operating Margin

N/A

total Assets

$18,942

total Debt

$1,265,170

net Income

$ -82,645

eps

$ -0.000007

gross Margin

66.36%

cash Position

$223

revenue Growth

-86.5%

Revenue Breakdown

Key Numbers

• $24,200 — Quarterly Revenue (Down 86.5% from $178,887 in Q3 2024)
• $82,645 — Net Loss (Widened from $76,305 in Q3 2024)
• $223 — Cash and Cash Equivalents (Decreased from $12,952 at May 31, 2025)
• $1,265,170 — Total Liabilities (Increased from $1,195,463 at May 31, 2025)
• $18,942 — Total Assets (Decreased from $31,880 at May 31, 2025)
• $1,246,228 — Stockholders' Deficiency (Worsened from $1,163,583 at May 31, 2025)
• $19,815 — Amortization of Discount (New expense in Q3 2025, contributing to net loss)
• $17,368 — Interest Expense (Increased from $2,339 in Q3 2024)
• 11,626,749,347 — Common Stock Outstanding (As of October 22, 2025)
• $93,801 — Proceeds from Related-Party Loan (Cash inflow from financing activities in Q3 2025)

Key Players & Entities

• Cannabis Bioscience International Holdings, Inc. (company) — Registrant
• SEC (regulator) — U.S. Securities and Exchange Commission
• $24,200 (dollar_amount) — Revenues for three months ended August 31, 2025
• $178,887 (dollar_amount) — Revenues for three months ended August 31, 2024
• $82,645 (dollar_amount) — Net loss for three months ended August 31, 2025
• $76,305 (dollar_amount) — Net loss for three months ended August 31, 2024
• $223 (dollar_amount) — Cash and cash equivalents at August 31, 2025
• $12,952 (dollar_amount) — Cash and cash equivalents at May 31, 2025
• 11,626,749,347 (dollar_amount) — Shares of common stock outstanding on October 22, 2025
• $1,246,228 (dollar_amount) — Total Stockholders' Deficiency at August 31, 2025

FAQ

Risk Factors

• Severe Liquidity Crisis [high — financial]: Cash and cash equivalents have plummeted from $12,952 to $223 in the quarter. Total assets decreased by 40.5% from $31,880 to $18,942, while total liabilities increased by 5.8% to $1,265,170. This extreme lack of liquidity poses an existential threat.
• Worsening Stockholders' Deficiency [high — financial]: The company's stockholders' deficiency has increased from $(1,163,583) to $(1,246,228). This indicates that liabilities far exceed assets, a common indicator of financial distress and potential insolvency.
• Revenue Collapse [high — financial]: Revenue for the three months ended August 31, 2025, dropped by 86.5% to $24,200 from $178,887 in the same period last year. This drastic decline suggests fundamental issues with the company's business model or market position.
• Increasing Net Loss [medium — financial]: The net loss widened to $82,645 from $76,305 in the prior year's quarter. This was exacerbated by new expenses like 'Amortization of Discount' ($19,815) and increased interest expenses ($17,368).
• Derivative Liabilities and Amortization [medium — financial]: The company incurred an 'Amortization of Discount' expense of $19,815, which contributed to the widened net loss. While there was a positive change in the value of derivative liabilities ($29,322), the overall impact of these financial instruments on profitability is volatile.
• High Contract Labor Costs [medium — operational]: Contract labor expenses remain significant at $42,520 for the quarter, representing a substantial portion of operating expenses despite declining revenues.
• Cannabis Industry Regulatory Uncertainty [medium — regulatory]: As a company operating in the cannabis sector, CBIH is subject to evolving and complex regulatory frameworks at federal, state, and local levels. Changes in regulations can impact operations, product development, and market access.
• Dependence on Related-Party Financing [medium — financial]: Related-party payables increased significantly to $717,275. The company's ability to continue operations may be dependent on continued financial support from related parties, which carries inherent risks.

Industry Context

The cannabis industry continues to navigate a complex and evolving regulatory landscape across different jurisdictions. While market potential remains high, companies face challenges related to federal prohibition in the U.S., varying state-level regulations, and intense competition. Innovation in product development, particularly in areas like CBD-based products, is a key trend, but profitability is often hampered by high operating costs and market access issues.

Regulatory Implications

As a company involved in educational systems and developing CBD-based products, CBIH is subject to evolving regulations in the cannabis and healthcare sectors. Compliance with U.S. FDA guidelines for CBD products and state-specific cannabis laws is critical. Changes in these regulations could significantly impact the company's operations and product offerings.

What Investors Should Do

1. Monitor cash burn rate and explore immediate funding sources to address severe liquidity crisis.
2. Analyze the sustainability of the current business model given the drastic revenue decline and widening losses.
3. Seek clarification on the nature of derivative liabilities and the 'Amortization of Discount' expense.
4. Evaluate the company's ability to meet its substantial liabilities, especially given the negative equity position.
5. Assess the long-term viability of operations in light of the current financial distress and market conditions.

Key Dates

• 2025-08-31: End of Q3 2025 — Reporting period for the current 10-Q, showing a severe revenue decline and widening net loss.
• 2025-05-31: End of Q2 2025 — Prior balance sheet date, showing higher cash reserves and lower liabilities.
• 2024-08-31: End of Q3 2024 — Prior year comparable period, showing significantly higher revenue and lower net loss.

Glossary

Amortization of Discount

The process of gradually writing off the initial cost of an asset or liability. In this context, it refers to an expense related to a discount on a financial instrument, likely a debt or convertible note. (This is a new expense item contributing to the widened net loss in the current quarter.)

Derivative Liabilities

Financial instruments whose value is derived from an underlying asset, index, or rate. Changes in their value can result in gains or losses. (A positive change in the value of derivative liabilities ($29,322) offset some of the losses, but the nature of these liabilities is not fully detailed.)

Stockholders' Deficiency

A negative equity position where a company's total liabilities exceed its total assets. (CBIH has a significant and worsening stockholders' deficiency, indicating severe financial distress.)

Common Stock Outstanding

The total number of shares of common stock that have been issued and are held by investors. (The company has a very large number of common shares outstanding (11,626,749,347), which can lead to very low earnings per share.)

Additional Paid-In Capital

The amount of money a company receives from selling stock above its par or stated value. (Represents historical capital raised through stock issuance, but does not offset the current accumulated deficit.)

Accumulated Deficit

The total cumulative net losses of a company since its inception that have not been offset by net income. (This figure continues to grow, reflecting the company's persistent unprofitability.)

Right-of-use asset

An asset representing a lessee's right to use an underlying asset for the lease term under a lease agreement. (This asset has been fully depleted or written off, indicating the cessation of certain lease obligations.)

Deferred revenues

Revenue that has been received by a company but not yet earned, as the goods or services have not yet been delivered or performed. (This is a new liability item, suggesting future revenue streams that have been prepaid.)

Year-Over-Year Comparison

Compared to the prior year's quarter, Cannabis Bioscience International Holdings, Inc. has experienced a catastrophic 86.5% decline in revenue, falling to $24,200. This revenue collapse has led to a widened net loss of $82,645, despite a reduction in operating expenses. Key financial health indicators have deteriorated significantly, with total assets shrinking by 40.5% and total liabilities increasing, resulting in a more severe stockholders' deficiency. The company's cash position has become critically low, dropping from $12,952 to just $223.

Filing Documents

• cannabis_i10q-083125.htm (10-Q) — 424KB
• cannabis_ex3100.htm (EX-31) — 11KB
• cannabis_ex3200.htm (EX-32) — 4KB
• 0001683168-25-007721.txt ( ) — 3063KB
• cbih-20250831.xsd (EX-101.SCH) — 26KB
• cbih-20250831_cal.xml (EX-101.CAL) — 42KB
• cbih-20250831_def.xml (EX-101.DEF) — 79KB
• cbih-20250831_lab.xml (EX-101.LAB) — 241KB
• cbih-20250831_pre.xml (EX-101.PRE) — 197KB
• cannabis_i10q-083125_htm.xml (XML) — 292KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 3 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 21 Item 4.

Controls and Procedures

Controls and Procedures 21

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 22 Item 1A.

Risk Factors

Risk Factors 22 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 22 Item 3. Defaults upon Senior Securities 22 Item 4. Mine Safety Disclosures 22 Item 5. Other Information 22 Item 6. Exhibits 22

– FINANCIAL

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. CANNABIS BIOSCIENCE INTERNATIONAL HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS August 31, 2025 May 31, 2025 (Unaudited) (Audited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 223 $ 12,952 Accounts receivable 8,966 6,380 Related party receivables 9,155 9,155 Other current assets 598 598 TOTAL CURRENT ASSETS 18,942 29,085 Right-of-use asset – 2,795 TOTAL ASSETS $ 18,942 $ 31,880 CURRENT LIABILITIES Accounts payable and accrued expenses $ 101,297 $ 100,343 Deferred revenues 12,000 – Credit cards 30,327 30,327 Accrued interest 22,095 22,095 Related-party payables 717,275 623,474 Short-term loans (net of amortization of loan fees) 111,721 111,722 SBA loans current 14,592 14,592 Derivative liabilities – 29,322 Lease liabilities – 4,906 Convertible note 6,363 9,182 TOTAL CURRENT LIABILITIES 1,015,670 945,963 LONG-TERM LIABILITIES SBA loans 249,500 249,500 TOTAL LONG-TERM LIABILITIES 249,500 249,500 TOTAL LIABILITIES 1,265,170 1,195,463 STOCKHOLDERS' DEFICIENCY Authorized: 10,000,000 shares of preferred stock, without par value, of which 2,500,000 shares have been designated Series A Convertible Preferred Stock ( 2,500,000 shares outstanding at August 31, 2025, and May 31, 2025) and 2,000 shares have been designated Series B Preferred Stock ( 2,000 shares outstanding at August 31, 2025, and May 31, 2025) – – Common Stock, without par value: 20,000,000,000 shares authorized, of which 11,626,749,347 shares were issued and outstanding at August 31, 2025, and May 31, 2025 – – Additional paid-in capital 4,719,318 4,719,318 Accumulated deficit ( 5,965,546 ) ( 5,882,901 ) TOTAL STOCKHOLDERS' DEFICIENCY ( 1,246,228 ) ( 1,163,583 ) TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY $ 18,942 $ 31,880 See accompanying notes to condensed consolidated financial statements. 3 CANNABIS BIOSCIENCE INTERNATIONAL HOLDINGS,

financial statements

financial statements. 5 CANNABIS BIOSCIENCE INTERNATIONAL HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIENCY FOR THE THREE MONTHS ENDED AUGUST 31, 2025 (Unaudited) Series A Convertible Preferred Stock Series B Preferred Stock Common Stock Additional Paid-In Accumulated Shares Amount Shares Amount Shares Capital Deficit Total Balance - May 31, 2025 2,500,000 $ – 2,000 $ – 11,626,749,347 $ 4,719,318 $ ( 5,882,901 ) $ ( 1,163,583 ) Net loss for the quarter – – – – – – ( 82,645 ) ( 82,645 ) Balance - August 31, 2025 2,500,000 $ – 2,000 $ – 11,626,749,347 $ 4,719,318 $ ( 5,965,546 ) $ ( 1,246,228 ) CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIENCY FOR THE THREE MONTHS ENDED AUGUST 31, 2024 (Unaudited) Series A Convertible Preferred Stock Series B Preferred Stock Common Stock Additional Paid-In Accumulated Shares Amount Shares Amount Shares Capital Deficit Total Balance - May 31, 2024 2,500,000 $ – 1,000 $ – 10,431,749,347 $ 4,255,068 $ ( 5,334,081 ) $ ( 1,079,013 ) Issuance of common stock for services – – – – 125,000,000 100,000 – 100,000 Issuance of shares of Series B Preferred – – 1,000 – – – – – Net income for the quarter – – – – – – ( 76,305 ) ( 76,305 ) Balance - August 31, 2024 2,500,000 $ – 2,000 $ – 10,556,749,347 $ 4,355,068 $ ( 5,410,385 ) $ ( 1,055,317 ) See accompanying notes to condensed consolidated financial statements. 6 CANNABIS BIOSCIENCE INTERNATIONAL HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL August 31, 2025 (Unaudited) Note 1 – Organization and Operations Cannabis Bioscience International Holdings, Inc., a Colorado corporation (the "Company"), was formed on February 28, 2003, as a limited liability company under the name Fidelity Aircraf

View Full Filing

View this 10-Q filing on SEC EDGAR