ProtoKinetix, Inc. Files 10-Q for Q2 2024

TL;DR

ProtoKinetix filed its Q2 10-Q. Check financials.

AI Summary

ProtoKinetix, Inc. filed its 10-Q for the period ending June 30, 2024. The company, formerly RJV Network Inc., is incorporated in Nevada and operates in the pharmaceutical preparations sector. Its principal business address is 109 W. Main St., Dalton, OH 44618.

Why It Matters

This filing provides investors with an update on ProtoKinetix, Inc.'s financial performance and operational status for the second quarter of 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly filing with no immediate red flags or significant new information presented.

Key Players & Entities

• ProtoKinetix, Inc. (company) — Filer
• RJV NETWORK INC (company) — Former company name
• 109 W. MAIN ST. (location) — Business and Mail Address
• DALTON (location) — City
• OH (location) — State
• 44618 (location) — ZIP Code

FAQ

Key Financial Figures

• $0.10 — 's common stock at an exercise price of $0.10 per share for a period of five years. T
• $35,000 — cation Rights had a total fair value of $35,000, which was allocated as $10,000 to the
• $10,000 — alue of $35,000, which was allocated as $10,000 to the cash consideration paid, with th
• $25,000 b — consideration paid, with the remaining $25,000 being allocated to the warrant component
• $590,825 — ion. The Company incurred an additional $590,825 in direct costs relating to the Patent
• $1 — ation Rights, the Company agreed to pay $1 (paid). The Company incurred $ 2,415 i

Filing Documents

• pktx_10q.htm (10-Q) — 463KB
• ex31x1.htm (EX-31.1) — 11KB
• ex31x2.htm (EX-31.2) — 11KB
• ex32.htm (EX-32) — 6KB
• 0001079973-24-001123.txt ( ) — 2636KB
• pktx-20240630.xsd (EX-101.SCH) — 23KB
• pktx-20240630_cal.xml (EX-101.CAL) — 23KB
• pktx-20240630_def.xml (EX-101.DEF) — 79KB
• pktx-20240630_lab.xml (EX-101.LAB) — 206KB
• pktx-20240630_pre.xml (EX-101.PRE) — 175KB
• pktx_10q_htm.xml (XML) — 297KB

Financial Statements

Item 1. Financial Statements 3 Unaudited Balance Sheets 3 Unaudited Statements of Operations 4 Unaudited Statement of Stockholders' Equity 5 Unaudited Statements of Cash Flows 6 Notes to Unaudited Financial Statements 7

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 18

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 21

Controls and Procedures

Item 4. Controls and Procedures 21 PART II OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 22

Risk Factors

Item 1A. Risk Factors 22

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 22

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 22

Mine Safety Disclosure

Item 4. Mine Safety Disclosure 22

Other Information

Item 5. Other Information 22

Exhibits

Item 6. Exhibits 23

Signatures

Signatures 24 PROTOKINETIX, INCORPORATED (A Development Stage Company) BALANCE SHEETS (Unaudited) June 30, 2024 December 31, 2023 ASSETS Current Assets Cash $ 2,200 $ 20,408 Prepaid expenses (Note 3) 1,050 1,050 Total current assets 3,250 21,458 Intangible assets (Note 4) 470,275 459,099 Total assets $ 473,525 $ 480,557 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable and accrued liabilities $ 58,767 $ 44,696 Total liabilities 58,767 44,696 Stockholders' Equity Common stock, $ 0.0000053 par value; 500,000,000 common shares authorized; 360,980,152 and 346,213,485 shares issued and outstanding as at June 30, 2024 and December 31, 2023 respectively (Note 7) 1,930 1,850 Additional paid-in capital 48,453,889 48,297,969 Accumulated deficit ( 48,041,061 ) ( 47,863,958 ) Total stockholders' equity 414,758 435,861 Total liabilities and stockholders' equity $ 473,525 $ 480,557 Basis of Presentation – Going Concern Uncertainties (Note 1) Commitments and Contingency (Note 9) See Notes to Financial Statements 3 PROTOKINETIX, INCORPORATED (A Development Stage Company) (Unaudited) For the Three and Six Months Ended June 30, 2024 and 2023 Three months ended June 30, 2024 Three months ended June 30, 2023 Six months ended June 30, 2024 Six months ended June 30, 2023 EXPENSES Amortization – intangible assets (Note 4) $ 13,023 $ 11,563 $ 24,341 $ 22,266 General and administrative 13,210 35,715 27,335 68,477 Professional fees 37,843 36,318 67,802 77,211 Research and development 21,000 31,981 57,625 54,661 Operating income (expenses) ( 85,076 ) ( 115,577 ) ( 177,103 ) ( 222,615 ) Net loss for the period $ ( 85,076 ) $ ( 115,577 ) $ ( 177,103 ) $ ( 222,615 ) Net loss per common share (basic and diluted) $ ( 0.00 ) $ ( 0.01 ) $ ( 0.00 ) $ ( 0.01 ) Weighted average number of common shares outstanding (basic a

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS June 30, 2024 Note 1. Basis of Presentation – Going Concern Uncertainties ProtoKinetix, Incorporated (the "Company"), a development stage company, was incorporated under the laws of the State of Nevada on December 23, 1999. The Company is a medical research company whose mission is the advancement of human health care. The Company is currently researching the benefits and feasibility of synthesized Antifreeze Glycoproteins ("AFGP") or anti-aging glycoproteins, trademarked AAGP. During the year ended December 31, 2015, the Company acquired certain patents and rights for cash consideration of $ 30,000 (25,000 Euros), as well as additional patent applications for cash consideration of $ 10,000 and 6,000,000 share purchase warrants with a fair value of $ 25,000 (Note 4). The Company's financial statements are prepared consistent with accounting principles generally accepted in the United States applicable to a going concern. The Company has not developed a commercially viable product, has not generated any significant revenue to date, and has incurred losses since inception, resulting in a net accumulated deficit at June 30, 2024. These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company needs additional working capital to continue its medical research or to be successful in any future business activities and continue to pay its liabilities. Therefore, continuation of the Company as a going concern is dependent upon obtaining the additional working capital necessary to accomplish its objective. Management is presently engaged in seeking additional working capital through equity financing or related party loans. In addition, any significant disruption of global financial markets, reducing our ability to access capital, could negatively affect our liquidity and ability to continue operations. The exact impact is and will remain unknown and largely dependent upon future developments

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS June 30, 2024 Note 2. Summary of Significant Accounting Policies (cont'd) Use of Estimates Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The more significant accounting estimates inherent in the preparation of the Company's financial statements include estimates as to valuation of equity related instruments issued, deferred income taxes, and the useful life and impairment of intangible assets. Cash Cash consists of funds held in checking accounts. Cash balances may exceed federally insured limits from time to time. Fair Value of Financial Instruments Financial instruments, which includes cash, accounts payable and accrued liabilities are carried at amortized cost, which management believes approximates fair value due to the short-term nature of these instruments. The Company measures the fair value of financial assets and liabilities pursuant to ASC 820 "Fair Value Measurements and Disclosures" which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The policy describes three levels of inputs that may be used to measure fair value: Level 1 – quoted prices in active markets for identical assets or liabilities. Level 2 – quoted prices for similar assets and liabilities in active markets or inputs that are observable. Level 3 – inputs that are unobservable (for example cash flow modeling inputs based on assumptions). At June 30, 2024,

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS June 30, 2024 Note 2. Summary of Significant Accounting Policies (cont'd) Intangible assets – patent and patent application costs The Company owns intangible assets consisting of certain patents and patent applications. Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. Subsequent expenditures are capitalized only when they increase the future economic benefits embodied in the specific asset to which they relate. All other expenditures are recognized in profit or loss as incurred. As at June 30, 2024, the Company does not hold any intangible assets with indefinite lives. Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization method and amortization period of an intangible asset with a finite life is reviewed at least annually. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates. Amortization is recognized in profit or loss on a straight-line basis over the estimated useful lives of the Company's patents, whereas no amortization has been recognized on the not yet approved patent application costs at June 30, 2024. Research and Development Costs Research and development costs are expensed as incurred. This includes all research consultant's fees and costs of contract research organizations. Loss per Share and Potentially Dilutive Securities Basic loss per share is computed by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding in the period. Dilute

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS June 30, 2024 Note 2. Summary of Significant Accounting Policies (cont'd) Share-Based Compensation (cont'd) Share-based compensation for non-employees in exchange for goods and services used or consumed in an entity's own operations are also recorded at fair value on the measurement date and accounted for in accordance with ASC 718. The measurement of share-based compensation is subject to periodic adjustment as the underlying instruments vest. The fair value of stock options is estimated using the Black-Scholes Option Pricing Model and the compensation charges are amortized over the vesting period. Common stock Common stock issued for non-monetary consideration are recorded at their fair value on the measurement date and classified as equity. The measurement date is defined as the earliest of the date at which the commitment for performance by the counterparty to earn the common shares is reached or the date at which the counterparty's performance is complete. Transaction costs directly attributable to the issuance of common stock, units and stock options are recognized as a deduction from equity, net of any tax effects. Related Party Transactions A related party is generally defined as (i) any person that holds 10% or more of the Company's securities and their immediate families, (ii) the Company's management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Recent Accounting Pronouncements Certain new accounting pronouncements that have been issued are not expected to have a material effect on the Company's financial statements. 10 PROTOKINETIX, INCORPORATED (A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS June 30, 2024 Note 3. Prepaid Expenses The following summarizes the Company's prepaid expenses outstanding as at June 30, 2024 and December 31, 2023: Schedule of prepaid expenses June 30, 2024 December 31, 2023 Rental deposit $ 1,050 $ 1,050 11 PROTOKINETIX, INCORPORATED (A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS June 30, 2024 Note 4. Intangible Assets Intangible asset transactions are summarized as follows: Schedule of intangible asset transactions Patent Rights Patent Application Rights Total Cost Balance, December 31, 2022 $ 30,000 $ 484,220 $ 514,220 Additions — 71,088 71,088 Balance, December 31, 2023 $ 30,000 $ 555,308 $ 585,308 Additions — 35,517 35,517 Balance, June 30, 2024 $ 30,000 $ 590,825 $ 620,825 Accumulated amortization Balance, December 31, 2022 $ 22,500 $ 55,450 $ 77,950 Amortization 3,000 45,259 48,259 Balance, December 31, 2023 $ 25,500 $ 100,709 $ 126,209 Amortization 1,500 22,841 24,341 Balance, June 30, 2024 $ 27,000 $ 123,550 $ 150,550 Net carrying amounts December 31, 2023 $ 4,500 $ 454,599 $ 459,099 Balance, June 30, 2024 $ 3,000 $ 467,275 $ 470,275 During the year ended December 31, 2015, the Company entered into an Assignment of Patents and Patent Application (effective January 1, 2015) (the "Patent Assignment") with the Institut National des Sciences Appliquees de Rouen ("INSA") for the assignment of certain patents and all rights associated therewith (the "Patents"). The Company and INSA had previously entered into a licensing agreement for the Patents in August 2004. The Patent Assignment transfers all of the Patents and rights associated therewith to the Company upon payment to INSA in the sum of $ 30,000 (25,000 Euros) (paid). During the six month period June 30, 2024, the Company recorded $ 24,341 (2023 - $ 22,266 ) in amortization expense associated with the Patents. During the year ended December 31, 2015, the Company entered into a Technology Transfer Agreement with Grant Young for the assignment of his 50% ownership of certain patents and all rights associated therewith (the "Patent Application Rights"). In exchange for the Patent Application Rights, the Company agreed to pay $ 10,000 (paid) and to issue 6,000,000 warrants (issue

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS June 30, 2024 Note 4. Intangible Assets (cont'd) The remaining 50% ownership of the Patent Application Rights was acquired from the Governors of the University of Alberta in exchange for a future gross revenue royalty from any product developed as a result of research done at the University. During the year ended December 31, 2016, the Company entered into a Universal Assignment with Grant Young for the assignment of his ownership of certain new and useful improvements in an invention entitled "Use of Anti-Aging Glycoprotein for Enhancing Survival of Neurosensory Precursor Cells" (the "New Patent Application Rights"). In exchange for the New Patent Application Rights, the Company agreed to pay $1 (paid). The Company incurred $ 2,415 in direct costs relating to the New Patent Application Rights during the year ended December 31, 2016. The Company amortizes patents and licenses that have been filed over their useful lives which range between 18.5 to 20 years. The costs of provisional patents and pending applications is not amortized until the patent is filed and is reviewed each reporting period. No amortization was recorded on the Patent Application Rights or the New Patent Application Rights to June 30, 2024. Note 5. Stock Options Pursuant to an amendment on March 15, 2022, the aggregate number of shares that may be issued under the 2017 Stock Option and Stock Bonus Plan (the "2017 Plan") is 97,700,000 shares, by the Board of Directors, and includes two types of options. Options intended to qualify as incentive stock options under Section 422 of the Internal Revenue Code of 1986, as amended, are referred to as incentive options. Options that are not intended to qualify as incentive options are referred to as non-qualified options. The exercise price of an option may be paid in cash, in shares of

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS June 30, 2024 Note 5. Stock Options (cont'd) Total share-based compensation for stock options granted during the six-month period ended June 30, 2024 was $Nil 0 (2023 - $nil 0 ). Stock option transactions are summarized as follows: Schedule of stock option transactions Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Life $ (Years) Outstanding, December 31, 2023, and June 30, 2024 94,290,000 0.03 4.67 The following non-qualified stock options were outstanding and exercisable at June 30, 2024: Schedule of non-qualified stock options were outstanding and exercisable Expiry date Exercise Price Number of Options Outstanding Number of Options Exercisable $ October 24, 2026 0.10 500,000 500,000 November 27, 2026 0.10 250,000 250,000 December 6, 2028 0.028 93,540,000 93,540,000 94,290,000 94,290,000 As at June 30, 2024, the aggregate intrinsic value of the Company's stock options is $Nil 0 (June 30, 2023 – $Nil 0 ). The weighted average fair value of stock options granted during the six-month period ended June 30, 2024 is $Nil 0 (2023 - $Nil 0 ). 14 PROTOKINETIX, INCORPORATED (A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS June 30, 2024 Note 6. Warrants Warrant transactions for the six-months ended June 30, 2024 are summarized as follows: Schedule of warrant transactions Number of Warrants Weighted Average Exercise Price $ Outstanding, December 31, 2023 13,300,000 0.04 Warrants expired ( 7,300,000 ) 0.09 Outstanding at June 30, 2024 6,000,000 0.028 The following warrants were outstanding and exercisable as at June 30, 2024: Schedule of warrants were outstanding and exercisable Number of Warrants Exercise Price Expiry Date 6,000,000 0.028 December 12, 2028 15 PROTOKINETIX, INCORPORATED (A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS June 30, 2024 Note 7. Stockholders' Equity The Company is authorized to issue 500,000,000 (June 30, 2023 – 500,000,000 ) shares of $ 0.0000053 par value common stock. Each holder of common stock has the right to one vote but does not have cumulative voting rights. Shares of common stock are not subject to any redemption or sinking fund provisions, nor do they have any preemptive, subscription or conversion rights. Holders of common stock are entitled to receive dividends whenever funds are legally available and when declared by the board of directors, subject to the prior rights of holders of all classes of stock outstanding having priority rights as to dividends. No dividends have been declared or paid as of June 30, 2024 (June 30, 2023 - $Nil ). During the six-month period ended June 30, 2024, the Company: a) Issued 1,666,667 shares of common stock ( 1,666,667 shares issued at $ 0.015 ) as part of a private placements for total proceeds of $ 25,000 . b) Issued 13,100,000 shares of common stock ( 13,100,000 shares issued at $ 0.01 ) as part of a private placements for total proceeds of $ 131,000 . During the six-month period ended June 30, 2023, the Company: a) Issued 12,750,000 shares of common stock ( 12,750,000 shares issued at $ 0.02 ) as part of a private placements for total proceeds of $ 255,000 . Note 8. Related Party Transactions and Balances During the six-month periods ended June 30, 2024 and 2023, the Company entered into the following related party transactions: a) Pursuant to a consulting agreement with an effec

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