10-Q: Cannabis Bioscience Q3 2026 Financial Results

Cannabis Bioscience International Holdings reports a net loss of $103,933 for the third quarter ended February 28, 2026, amid ongoing liquidity and going concern challenges.

Summary

• Reported a net loss of $103,933 for the quarter ended February 28, 2026, compared to a $181,243 loss in the same period last year.
• Revenue for the quarter was $11,205, down from $14,931 in the prior year quarter.
• Operating expenses decreased to $101,419 from $124,769 in the prior year quarter.
• Cash and cash equivalents stood at $90 as of February 28, 2026.
• The company maintains a significant working capital deficit of $1,217,630.
• Accumulated deficit reached $6,186,448 as of February 28, 2026.

Sentiment

Score: 2

Explanation: StockSavvy.ai views this as a distressed financial situation characterized by extreme liquidity constraints, recurring losses, and a high reliance on a single customer.

Positives

• Operating loss improved to $93,259 from $129,234 in the prior year quarter.
• Total operating expenses were reduced by $23,350 compared to the same quarter in 2025.
• Successfully restructured debt obligations with related parties to reduce interest rates and extend payment terms.

Negatives

• Cash position is critically low at $90.
• Revenue declined by approximately 25% year-over-year for the quarter.
• The company continues to face substantial doubt regarding its ability to continue as a going concern.
• Working capital deficit remains severe at over $1.2 million.
• Heavy reliance on a single customer, which accounted for 99% of gross revenue for the quarter.

Risks

• Substantial doubt regarding the company's ability to continue as a going concern due to recurring losses and negative cash flows.
• Extreme concentration risk with 99% of revenue derived from a single customer.
• Inability to generate sufficient capital to fund operations or repay outstanding debt.
• Potential for material negative impact on operations if additional financing is not secured.
• Internal controls over financial reporting were deemed ineffective.

Future Outlook

The company intends to continue its operating plan, which includes expanding operations, increasing sales of existing services, and raising debt or equity financing, though there is no assurance these efforts will be successful.

Management Comments

• Management acknowledges substantial doubt regarding the company's ability to continue as a going concern.
• Management notes that the company needs substantial additional capital to fund its business and repay its debts.

Industry Context

StockSavvy.ai notes that the company operates in a highly speculative segment of the medical cannabis and clinical research industry, where regulatory hurdles and capital intensity often lead to liquidity crises for smaller, non-profitable entities.

Comparison to Industry Standards

• The company's reliance on a single customer for 99% of revenue is significantly higher than industry standards for diversified clinical research organizations.
• The company's cash position of $90 is critically below standard operating liquidity benchmarks for publicly traded firms.

Corporate Governance

Legal Proceedings

• None disclosed.

Related Party Transactions

• The company has significant related party payables totaling $845,294 as of February 28, 2026.
• The company entered into a restructuring agreement with John Jones and Barbara Kamienski to formalize debt and issue equity.
• An officer provides office space to the company on a month-to-month basis.

Stakeholder Impact

• Shareholders face significant dilution risk due to potential equity-based capital raises and compensation arrangements.
• Creditors face high risk of non-payment given the company's liquidity crisis.
• Employees and contractors face uncertainty regarding the company's long-term viability.

Next Steps

• Continue efforts to raise debt or equity financing.
• Attempt to increase sales of existing services and introduce new services.
• Negotiate with creditors regarding arrears on loan payments.

Key Dates

Recommendation

The company is in a precarious financial position with virtually no cash, a massive working capital deficit, and a reliance on a single customer for nearly all revenue. The 'going concern' warning and the need for significant capital raises suggest high risk of further dilution or insolvency.

Keywords

Cannabis Bioscience, Medical Cannabis, Clinical Trials, CBD Products, Going Concern, CBIH