CNBX Pharmaceuticals Files Q1 2025 10-Q

TL;DR

**CNBX Q1 2025 10-Q filed. Financials updated.**

AI Summary

CNBX Pharmaceuticals Inc. filed its quarterly report for the period ending November 30, 2024. The company, formerly known as Cannabics Pharmaceuticals Inc., is in the pharmaceutical preparations industry. The filing includes financial data for the periods ending November 30, 2024, and August 31, 2023, detailing common stock, additional paid-in capital, warrants, comprehensive income, and retained earnings.

Why It Matters

This filing provides investors with an update on CNBX Pharmaceuticals' financial health and performance for the first quarter of fiscal year 2025, which is crucial for investment decisions.

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 not detailed in this summary but are typical for the industry.

Key Numbers

• 2024-11-30 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial information is reported.)
• 2023-08-31 — Previous Fiscal Year End Date (Provides a comparative point for financial performance.)

Key Players & Entities

• CNBX Pharmaceuticals Inc. (company) — Filer of the 10-Q
• Cannabics Pharmaceuticals Inc. (company) — Former name of CNBX Pharmaceuticals Inc.
• 20241130 (date) — End of the reporting period
• 20250113 (date) — Filing date

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
• $25,000 — missory Note in the principal amount of $25,000 ($25,000 net of issuance expenses). The
• $36,837 — 2024, our total operating expenses were $36,837 compared to $261,337 for the three mont
• $261,337 — ating expenses were $36,837 compared to $261,337 for the three months ended November 30,
• $224,500 — er 30, 2023, resulting in a decrease of $224,500. The decrease is attributable to a decr
• $112,082 — crease is attributable to a decrease of $112,082 in general administration expenses, mos
• $13,339 — o the Professional services expenses of $13,339, share based payment of $34,975 and sal
• $34,975 — nses of $13,339, share based payment of $34,975 and salary expenses of $63,706 and a de
• $63,706 — yment of $34,975 and salary expenses of $63,706 and a decrease of $112,480 in research
• $112,480 — y expenses of $63,706 and a decrease of $112,480 in research and development expenses. T
• $2,485 — ion. We incurred a financial income of $2,485 for the three months ended November 30,

Filing Documents

• cnbx_i10q-113024.htm (10-Q) — 279KB
• 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
• 0001683168-25-000267.txt ( ) — 1782KB
• cnbx-20241130.xsd (EX-101.SCH) — 15KB
• cnbx-20241130_cal.xml (EX-101.CAL) — 22KB
• cnbx-20241130_def.xml (EX-101.DEF) — 37KB
• cnbx-20241130_lab.xml (EX-101.LAB) — 168KB
• cnbx-20241130_pre.xml (EX-101.PRE) — 129KB
• cnbx_i10q-113024_htm.xml (XML) — 121KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 4 Item 1. Consolidated Financial Statements 4 Consolidated Balance Sheets as of November 30, 2024 (unaudited) and August 31, 2024 4 Consolidated Statements of Operations and Comprehensive Loss for the Three Months Ended November 30, 2024 and 2023 (unaudited) 5 Consolidated Statements of Stockholders Equity (Deficit) for the Three Months Ended November 30, 2024 and 2023 (unaudited) 6 Consolidated Statements of Cash Flows for the Three Months Ended November 30, 2024 and 2023 (unaudited) 7

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 8 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 13 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 15 Item 4.

Controls and Procedures

Controls and Procedures 15

– OTHER INFORMATION

PART II – OTHER INFORMATION 16 Item 1.

Legal Proceedings

Legal Proceedings 16 Item 1A.

Risk Factors

Risk Factors 16 Item 2. Recent Sale of Unregistered Securities 16 Item 5. Other Information 16 Item 6. Exhibits 16

SIGNATURES

SIGNATURES 17 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 statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements which are not historical reflect 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 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, 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 November 30, August 31, 2024 2024 Unaudited Audited ASSETS Current assets: Cash and cash equivalents $ 17,339 $ 26,416 Prepaid expenses and other receivables 4,969 4,969 Total current assets 22,308 31,385 Equipment, net – – Total assets $ 22,308 $ 31,385 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 51,992 $ 217,774 Convertible loan 1,328,232 1,295,107 Due to a related party 1,156,416 998,484 Total current liabilities 2,536,640 2,511,365 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, 31,111,352 shares issued and outstanding on November 30, 2024, and on August 31, 2024, respectively. 3,111 3,111 Additional paid-in capital 22,471,309 22,471,309 Accumulated deficit ( 24,988,752 ) ( 24,954,400 ) Total stockholders' equity (deficit) ( 2,514,332 ) ( 2,479,980 ) Total liabilities and stockholders' equity $ 22,308 $ 31,385 See accompanying notes to consolidated financial 4 CNBX PHARMACEUTICALS INC. Consolidated Statements of Operations and Comprehensive Loss (Unaudited) For the Three Months Ended November 30, November 30, 2024 2023 Unaudited Revenues $ – $ 89,437 Operating expenses: Research and development expense – 112,418 General and administrative expenses 36,837 148,919 Total operating expenses 36,837 261,337 Loss from operations ( 36,837 ) ( 171,900 ) Other (Loss) Income Financial (Loss) Income 2,485 ( 6,623 ) Net loss ( 34,352 ) ( 178,523 ) Loss from available for sale assets – – Total comprehensive loss $ ( 34,352 ) $ ( 178,523 ) Net loss per share - basic and diluted: $ ( 0.001 ) $ ( 0.006 ) Weighted average number of shar

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 680,200 shares and 5,000,000 preferred shares. 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 21, 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 Nevada Revised Statutes,

Management's Discussion and Analysis

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Company Overview We are a pre-clinical-stage, platform technology biopharmaceutical company which has developed proprietary innovative medicines in areas of significant unmet medical needs in oncology, with a current focus on colorectal cancer ("CRC"). Our drug candidate under development for colon cancer is RCC-33, a first-in-class therapy being developed primarily in two settings: one to reduce tumor cell activity in colon cancer patients as a standalone in neoadjuvant treatment or "window of opportunity" at the time after colonoscopy, prior to cancer staging; and another for patients with refractory to therapy and adjuvant to surgery also at the time after colonoscopy. The Company hopes to start first in human Phase I/II clinical trials in 2024. Neoadjuvant treatment is the administration of a therapy before the surgical treatment to improve patient outcome, and our business strategy is to advance our programs through clinical studies including with partners, and to opportunistically add programs in areas of high unmet medical needs through acquisition, collaboration, or internal development. Results of Operations For the Three Months Ended November 30, 2024 and 2023 Operating Expenses For the three months ended November 30, 2024, our total operating expenses were $36,837 compared to $261,337 for the three months ended November 30, 2023, resulting in a decrease of $224,500. The decrease is attributable to a decrease of $112,082 in general administration expenses, mostly due to the Professional services expenses of $13,339, share based payment of $34,975 and salary expenses of $63,706 and a decrease of $112,480 in research and development expenses. The decrease is due to a pause in the company's research operation. We incurred a financial income of $2,485 for the three months ended November 30, 2024, compared to financial expense of $6,623 for the three month

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