CNBX Pharmaceuticals Files 10-Q for Period Ending May 31, 2024

TL;DR

CNBX Pharma 10-Q filed. Financials for May 31, 2024 period out.

AI Summary

CNBX Pharmaceuticals Inc. filed a 10-Q for the period ending May 31, 2024. The company, formerly known as Cannabics Pharmaceuticals Inc., is in the pharmaceutical preparations industry. Their fiscal year ends on August 31st. The filing includes financial data for various periods, including the three months ended May 31, 2024, and the nine months ended May 31, 2024.

Why It Matters

This filing provides investors with an update on CNBX Pharmaceuticals' financial performance and position, crucial for understanding the company's operational status and future prospects.

Risk Assessment

Risk Level: medium — As a pharmaceutical company, CNBX Pharmaceuticals faces inherent risks related to drug development, regulatory approvals, and market competition, which are typical for the industry.

Key Numbers

• 20240531 — Reporting Period End Date (Indicates the end of the financial reporting period covered by the 10-Q.)
• 20240715 — Filing Date (The date the 10-Q was officially filed with the SEC.)

Key Players & Entities

• CNBX Pharmaceuticals Inc. (company) — Filer of the 10-Q
• May 31, 2024 (date) — End of the reporting period
• Cannabics Pharmaceuticals Inc. (company) — Former name of CNBX Pharmaceuticals Inc.
• August 31 (date) — Fiscal year end

FAQ

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
• $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
• $40,000 — al") with an original issue discount of $40,000. The Demand Note is payable on demand a
• $154,000 — the principal amount of $ 154,250 .00. ($154,000 net of issuance expenses). The Converti
• $165,000 — the principal amount of $ 65,000 .00. ($165,000 net of issuance expenses). The Converti
• $24,993 — missory Note in the principal amount of $24,993 ($25,000 net of issuance expenses). The
• $25,000 — ote in the principal amount of $24,993 ($25,000 net of issuance expenses). The Converti

Filing Documents

• cnbx_i10q053124.htm (10-Q) — 418KB
• 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
• 0001683168-24-004831.txt ( ) — 2074KB
• cnbx-20240531.xsd (EX-101.SCH) — 17KB
• cnbx-20240531_cal.xml (EX-101.CAL) — 27KB
• cnbx-20240531_def.xml (EX-101.DEF) — 38KB
• cnbx-20240531_lab.xml (EX-101.LAB) — 177KB
• cnbx-20240531_pre.xml (EX-101.PRE) — 139KB
• cnbx_i10q053124_htm.xml (XML) — 158KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 4 Item 1. Consolidated Financial Statements 4 Consolidated Balance Sheets as of May 31st, 2024 (unaudited) and August 31, 2023 4 Consolidated Statements of Operations for the Three and Nine Months Ended May 31st, 2024 and 2023 (unaudited) 5 Consolidated Statements of Stockholders' Equity (Deficit) for the Three and Nine Months Ended May 31st, 2024 and 2023 and the Year Ended August 31, 2023 6 Consolidated Statements of Cash Flows for the Nine Months Ended May 31st, 2024 and 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 17 Item 4.

Controls and Procedures

Controls and Procedures 17

-- OTHER INFORMATION

PART II -- OTHER INFORMATION 1 8 Item 1.

Legal Proceedings

Legal Proceedings 18 Item 1A.

Risk Factors

Risk Factors 18 Item 2. Recent Sale of Unregistered Securities 18 Item 5. Other Information 18 Item 6. Exhibits 18

SIGNATURES

SIGNATURES 19 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, 2022, 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 May 31, August 31, 2024 2023 Unaudited Audited ASSETS Current assets: Cash and cash equivalents $ 73,406 $ 129,696 Prepaid expenses and other receivables 6,621 94,612 Total current assets 80,027 224,308 Equipment, net – 274,731 Total assets $ 80,027 $ 499,039 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 189,820 $ 335,915 Convertible loan 1,293,847 1,343,584 Due to a related party 1,050,731 836,829 Total current liabilities 2,534,398 2,516,328 Stockholders' equity (deficit): Preferred stock, $ 0.0001 par value, 5,000,000 shares authorized, no shares issued and outstanding – – Common stock, $ 0.0001 par value, 900,000,000 shares authorized, 3,111,352 and 22,611,352 shares issued and outstanding at May 31, 2024 and August 31, 2023 respectively 3,111 2,261 Additional paid-in capital 22,436,334 22,239,652 Accumulated deficit ( 24,893,816 ) ( 24,259,202 ) Total stockholders' equity (deficit) ( 2,454,371 ) ( 2,017,289 ) Total liabilities and stockholders' equity $ 80,027 $ 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 Nine Months Ended May 31, May 31, May 31, May 31, 2024 2023 2024 2023 Unaudited Revenues $ – $ 310,165 $ 130,074 $ 310,165 Operating expenses: Research and development expense $ 42,884 $ 263,115 $ 268,722 $ 338,330 General and administrative expenses 109,394 220,132 391,958 741,716 Total operating expenses 152,278 483,247 660,680 1,080,046 Loss from operations ( 152,278 ) ( 173,082 ) ( 530,606 ) ( 769,881 ) Other income Capital Gain

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, CNBX Pharmaceuticals Inc. 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

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