10-Q/A: Cannabis Bioscience International Holdings Amends Q3 Report to Correct Errors and Update Share Count

Cannabis Bioscience International Holdings files an amendment to its Q3 report to correct financial statement errors, update the share count, and include XBRL data.

Summary

• Cannabis Bioscience International Holdings, Inc. filed an amendment to its Form 10-Q for the quarter ended February 28, 2025.
• The amendment addresses errors in the financial statements and management's discussion, updates the outstanding share count, and includes XBRL data.
• The company's net loss for the quarter was $181,243, compared to $209,192 for the same period last year.
• Revenue for the quarter was $14,931, a decrease from $36,411 in the prior year.
• For the nine months ended February 28, 2025, the net loss was $337,076, compared to $515,410 for the same period last year.
• Revenue for the nine-month period was $268,066, an increase from $172,979 in the prior year.
• As of February 28, 2025, the company had $548 in cash and cash equivalents and a negative working capital of $966,272.
• The company's ability to continue as a going concern is dependent on raising debt or equity financing.

Sentiment

Score: 3

Explanation: The document presents a mixed picture, with some improvements in net loss but concerns about revenue decline and the company's ability to continue as a going concern. The need for additional financing adds to the uncertainty.

Positives

• The net loss decreased for both the three and nine months ended February 28, 2025, compared to the same periods in the previous year.
• Revenue increased for the nine months ended February 28, 2025, compared to the same period in the previous year.
• Operating loss decreased from $456,506 for the nine months ended February 29, 2024, to $286,465 for the nine months ended February 28, 2025, primarily due to an increase of $158,746 in revenue from clinical trials and a decrease in operating expense from professional fees of $49,084.

Negatives

• The company has a history of recurring losses and negative cash flows from operating activities.
• The company has a negative working capital of $966,272 as of February 28, 2025.
• The company's independent auditor has expressed substantial doubt about its ability to continue as a going concern.
• Revenue decreased for the three months ended February 28, 2025, compared to the same period in the previous year.

Risks

• The company's ability to continue as a going concern is dependent on raising debt or equity financing, which is not assured.
• If the company is unable to obtain additional capital, it may be required to curtail or cease its operations.
• The company's net operating loss carryforwards are subject to annual limitations due to changes in ownership provisions of the income tax laws.

Future Outlook

The company's ability to continue as a going concern depends on the successful execution of its operating plan, which includes increasing sales of existing services and introducing new services, as well as raising either debt or equity financing.

Management Comments

• The Company needs substantial additional capital to fund its business, including the completion of its business plan and repayment of its debts.
• No assurance can be given that any additional capital can be obtained or, if obtained, will be adequate to meet its needs, and the Company may need to take measures to remain a going concern.
• If adequate capital cannot be obtained on a timely basis and satisfactory terms, the Company's operations could be materially negatively impacted, or it could be forced to terminate its operations.

Industry Context

The company operates in the cannabis and clinical trial industries, both of which are subject to regulatory changes and market volatility. The company's focus on medical cannabis education and clinical trials positions it within a niche market, but it faces competition from other companies in these sectors.

Comparison to Industry Standards

• It is difficult to compare Cannabis Bioscience International Holdings directly to industry standards due to its unique combination of cannabis education and clinical trial services.
• Companies like GW Pharmaceuticals (acquired by Jazz Pharmaceuticals) have focused on cannabinoid-based pharmaceuticals, while others like Canopy Growth Corporation have focused on recreational and medical cannabis products.
• Clinical research organizations (CROs) such as IQVIA and Labcorp provide clinical trial services across various therapeutic areas, but may not specialize in cannabinoid research.
• Given the company's small size and financial constraints, it may face challenges competing with larger, more established players in both the cannabis and clinical trial industries.

Related Party Transactions

• During the three months ended February 28, 2025, the Company issued to a related party (i) 250,000,000 shares of common stock for $ 75,000 at the price of $ 0.0003 per share and (ii) 175,000,000 shares of common stock for $ 45,500 at the price of $ 0.00026 .
• On April 26, 2024, the Company made a promissory note in the principal amount of $ 291,451 in favor of a related party.
• During the nine months ended February 28, 2025, and the year ended May 31, 2024, the Company received cash advances from related parties of and $ 81,552 and $ 218,504 for use as working capital.
• The balance of related party liabilities owed to certain shareholders totaled $ 590,095 and $503,214 at February 28, 2025, and May 31, 2024, respectively.

Stakeholder Impact

• Shareholders face the risk of dilution if the company raises equity financing.
• Employees face the risk of job losses if the company is unable to continue as a going concern.
• Customers may be affected if the company is unable to provide its services due to financial difficulties.
• Creditors face the risk of non-payment if the company is unable to repay its debts.

Next Steps

• The company needs to secure additional debt or equity financing to fund its operations.
• The company needs to increase sales of existing services and introduce new services to improve its financial performance.
• The company needs to address the concerns raised by its independent auditor regarding its ability to continue as a going concern.

Key Dates

Keywords

financial statements, clinical trials, revenue, net loss, going concern, cannabis, financing, amendment, XBRL