CNBX Pharmaceuticals Inc. Files 10-Q for Period Ending February 29, 2024

TL;DR

<b>CNBX Pharmaceuticals Inc. filed its Q2 2024 10-Q, detailing financial performance and corporate information.</b>

AI Summary

CNBX Pharmaceuticals Inc. (CNBX) filed a Quarterly Report (10-Q) with the SEC on April 16, 2024. CNBX Pharmaceuticals Inc. filed a 10-Q for the period ending February 29, 2024. The company was formerly known as Cannabics Pharmaceuticals Inc. Its fiscal year ends on August 31. The filing is for the second quarter of fiscal year 2024. The company's business address is in Bethesda, MD.

Why It Matters

For investors and stakeholders tracking CNBX Pharmaceuticals Inc., this filing contains several important signals. This filing provides investors with an update on CNBX Pharmaceuticals' financial health and operational status for the recent quarter. Understanding the details within this 10-Q is crucial for assessing the company's progress in the pharmaceutical sector and its future prospects.

Risk Assessment

Risk Level: low — CNBX Pharmaceuticals Inc. shows low risk based on this filing. The filing is a standard 10-Q, providing routine financial updates without immediate indicators of significant risk or opportunity.

Analyst Insight

Review the detailed financial statements and management discussion within the 10-Q to understand CNBX Pharmaceuticals' performance and strategic direction.

Key Numbers

• 2024-02-29 — Period End Date (10-Q filing)
• 2024-04-16 — Filing Date (10-Q filing)
• 08-31 — Fiscal Year End (Company fiscal year)
• 2024 — Fiscal Year (Q2 2024 filing)

Key Players & Entities

• CNBX Pharmaceuticals Inc. (company) — Filer name
• Cannabics Pharmaceuticals Inc. (company) — Former company name
• American Mining Corp (company) — Former company name
• Thrust Energy Corp. (company) — Former company name
• 2024-02-29 (date) — Period of report
• 2024-04-16 (date) — Filing date
• 2024-02-29 (date) — End of fiscal quarter
• 2024-02-29 (date) — End of reporting period

FAQ

Industry Context

CNBX Pharmaceuticals operates within the pharmaceutical preparations industry, focusing on the development and commercialization of pharmaceutical products.

Regulatory Implications

As a publicly traded company, CNBX Pharmaceuticals is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the filing of quarterly reports on Form 10-Q.

What Investors Should Do

1. Analyze the financial statements within the 10-Q for revenue, expenses, and profitability trends.
2. Review the Management's Discussion and Analysis (MD&A) section for insights into the company's performance drivers and outlook.
3. Check for any new disclosures regarding litigation, regulatory matters, or significant business developments.

Key Dates

• 2024-02-29: End of Reporting Period — Covers the financial results for the quarter ending on this date.
• 2024-04-16: Filing Date — Date the 10-Q was officially submitted to the SEC.

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, providing the initial quarterly update for the current fiscal year.

Key Financial Figures

• $0.0001 — 31,111,352 shares of its Common Stock, $0.0001 par value, outstanding. When used in t
• $198,000 — outstanding restricted common stock for $198,000, representing 51%. On May 21, 2014, th
• $113,972 — of its fixed assets in consideration of $113,972. To the report date, $ 20,000 was rece
• $2,750,000 — le notes totaling up to an aggregate of $2,750,000 to be issued in three tranches subject
• $42 — version price equal to the lower of (i) $42 per share or (ii) eighty percent (80%)
• $60 — the warrant, with an exercise price of $60 per share. The warrant may be exercised

Filing Documents

• cnbx_i10q-022924.htm (10-Q) — 509KB
• cnbx_ex3101.htm (EX-31.1) — 10KB
• cnbx_ex3102.htm (EX-31.2) — 10KB
• cnbx_ex3201.htm (EX-32.1) — 5KB
• cnbx_ex3202.htm (EX-32.2) — 5KB
• image_001.jpg (GRAPHIC) — 9KB
• image_002.jpg (GRAPHIC) — 9KB
• image_003.jpg (GRAPHIC) — 9KB
• image_004.jpg (GRAPHIC) — 6KB
• image_005.jpg (GRAPHIC) — 16KB
• image_006.jpg (GRAPHIC) — 16KB
• image_007.jpg (GRAPHIC) — 20KB
• image_008.jpg (GRAPHIC) — 3KB
• image_009.jpg (GRAPHIC) — 20KB
• image_010.jpg (GRAPHIC) — 4KB
• image_011.jpg (GRAPHIC) — 10KB
• image_012.jpg (GRAPHIC) — 1KB
• 0001683168-24-002440.txt (&nbsp;) — 2523KB
• cnbx-20240229.xsd (EX-101.SCH) — 16KB
• cnbx-20240229_cal.xml (EX-101.CAL) — 26KB
• cnbx-20240229_def.xml (EX-101.DEF) — 38KB
• cnbx-20240229_lab.xml (EX-101.LAB) — 175KB
• cnbx-20240229_pre.xml (EX-101.PRE) — 137KB
• cnbx_i10q-022924_htm.xml (XML) — 165KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 4 Item 1. Consolidated Financial Statements 4 Consolidated Balance Sheets as of February 29, 2024 (unaudited) and August 31, 2023 4 Consolidated Statements of Operations for the Three and Six Months Ended February 29, 2024 and February 28, 2023 (unaudited) 5 Consolidated Statements of Stockholder's Equity for the Three and Six Months Ended February 29, 2024 and February 29, 2023 (unaudited) 6 Consolidated Statements of Cash Flows for the Six Months Ended February 29, 2024 and February 28, 2023 (unaudited) 8

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 9 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 14 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 34 Item 4.

Controls and Procedures

Controls and Procedures 34

– OTHER INFORMATION

PART II – OTHER INFORMATION 36 Item 1. Legal Proceeding 36 Item 1A.

Risk Factors

Risk Factors 36 Item 2. Recent Sale of Unregistered Securities 36 Item 5. Other Information 36 Item 6. Exhibits 36

SIGNATURES

SIGNATURES 37 2 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain information set forth in this Quarterly Report on Form 10-Q, including in Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere herein may address or relate to future events and expectations and as such constitutes "forward-looking our current expectations and projections about our future results, performance, liquidity, financial condition, prospects and opportunities and are based upon information currently available to us and our management and their interpretation of what is believed to be significant factors affecting our business, including many assumptions regarding future events. Such forward-looking statements include statements regarding, among other things: the size and growth of the potential markets for our products and the ability to serve those markets; our expectations regarding our expenses and revenue, the sufficiency of our cash resources and needs for additional financing; the rate and degree of market acceptance of any of our products; our expectations regarding competition; our anticipated growth strategies; our ability to attract or retain key personnel; our ability to establish and maintain development partnerships; regulatory developments in the U.S. and foreign countries, especially those related to change in, and enforcement of, cannabis laws; our ability to obtain and maintain intellectual property protection for our products; and the anticipated trends and challenges in our business and the market in which we operate.

Forward-looking statements,

Forward-looking statements, which involve assumptions and describe our future plans, strategies, and expectations, are generally identifiable by use of the words "may," "should," "would," "could," "scheduled," "expect," "anticipate," "estimate," "believe," "intend," "seek," or "project" or the negative of these words or other variations on these words or comparable terminology. Actual results, performance, liquidity, financial condition and results of operations, prospects and opportunities could differ materially and perhaps substantially from those expressed in, or implied by, these forward-looking statements as a result of various risks, uncertainties and other factors. These statements may be found under the section of our Annual Report on Form 10-K for the year ended August 31, 2023 (filed on November 29 th , 2023) entitled "Risk Factors" as well as in our other public filings. In light of these risks and uncertainties, and especially given the start-up nature of our business, there can be no assurance that the forward-looking statements contained herein will in fact occur. Readers should not place undue reliance on any forward-looking statements. Except as expressly required by the federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason. 3

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements CNBX PHARMACEUTICALS INC. Consolidated Balance Sheets February 29, August 31, 2024 2023 Unaudited Audited ASSETS Current assets: Cash and cash equivalents $ 37,142 $ 129,696 Prepaid expenses and other receivables 126,775 94,612 Total current assets 163,917 224,308 Equipment, net – 274,731 Total assets $ 163,917 $ 499,039 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 231,379 $ 335,915 Convertible loan 1,292,588 1,343,584 Due to a related party 998,484 836,829 Total current liabilities 2,522,451 2,516,328 Stockholders' equity (deficit): Preferred stock, $ .0001 par value, 5,000,000 shares authorized, no shares issued and outstanding – – Common stock, $ .0001 par value, 900,000,000 shares authorized, 3,111,352 and 22,611,352 shares issued and outstanding at February 29, 2024 and August 31, 2023 respectively 3,111 2,261 Additional paid-in capital 22,401,539 22,239,652 Accumulated deficit ( 24,763,184 ) ( 24,259,202 ) Total stockholders' equity (deficit) ( 2,358,534 ) ( 2,017,289 ) Total liabilities and stockholders' equity $ 163,917 $ 499,039 See accompanying notes to consolidated financial * On May 12, 2023, the Company effected a reverse-split of its common stock on a 1:120 basis. 4 CNBX PHARMACEUTICALS INC. Consolidated Statements of Operations and Comprehensive Loss (Unaudited) For the Three Months Ended For the Six Months Ended February 29, February 28, February 29, February 28, 2024 2023 2024 2023 Revenues Services $ 40,637 $ – $ 130,074 $ – Cost of services 6,220 – 17,570 – Gross Profit 34,417 – 112,504 – Operating expenses: Research and development expense 107,199 12,328 208,267 75,215 General and administrative expenses 133,646 237,683 282,565 521,585 Total operating expenses 240,845 250,010 490,832 596,800 Loss from

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Note 1– Nature of Business, Presentation and Going Concern Organization CNBX Pharmaceuticals Inc. (the "Company"), was incorporated in the State of Nevada, on September 15, 2004, under the name of Thrust Energy Corp. On September 30, 2010, we increased our authorized capital to 900 million shares of common stock (par value $0.0001) and 100 million shares of preferred stock (par value $0.0001) and effected a 20-for-1 reverse split of our issued and outstanding common stock. As a result of the reverse split, our issued and outstanding common stock was reduced from 13,604,000 shares to 680,202 common shares, 100,000,000 preferred shares were unaffected. On April 25, 2014, the Company experienced a change in control. Cannabics, Inc. ("Cannabics") acquired a majority of the issued and outstanding common stock of the Company in accordance with stock purchase agreements. On the closing date, April 25, 2014, pursuant to the terms of the Stock Purchase Agreement, Cannabics purchased 41,000,000 shares of the Company's outstanding restricted common stock for $198,000, representing 51%. On May 21, 2014, the Company changed its name, via merger in the state of Nevada, to CNBX Pharmaceuticals Inc. The Company's principal offices are in Bethesda, Maryland. The Company changed its course of business to laboratory research and development. On June 19, 2014, FINRA granted final approval of Change of Name & Ticker Symbol of the Corporation from American Mining Corporation to CNBX PHARMACEUTICALS INC., with the new Ticker Symbol of "CNBX". Said approval was predicated upon CNBX Pharmaceuticals Inc.'s filing of Articles of Merger with American Mining Corporation with the Nevada Secretary of State on May 21st, 2014. Under the laws of the State of Nevada, CNBX Pharmaceuticals Inc. was merged with and into the Registrant, with the Registrant being the surviving entity. The Merger was completed under Section 92A.180 of the N

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