10-Q: CNBX Pharmaceuticals Q2 2026 Report: Net Loss Widens, Cash Dwindles

CNBX Pharmaceuticals Inc. reported a wider net loss for the six months ended February 28, 2026, with cash reserves decreasing, raising going concern doubts.

Summary

• CNBX Pharmaceuticals Inc. filed its Form 10-Q for the quarterly period ended February 28, 2026.
• The company reported a net loss of $157,817 for the six months ended February 28, 2026, an increase from $104,140 in the same period of the prior year.
• Total operating expenses increased to $136,965 for the six months ended February 28, 2026, up from $101,743 for the same period in 2025, primarily due to higher general and administrative expenses.
• Cash and cash equivalents decreased to $12,154 as of February 28, 2026, from $15,111 as of August 31, 2025.
• The company anticipates incurring at least $1,000,000 in expenses over the next twelve months.
• The company's ability to continue as a going concern is dependent on its ability to generate profitable operations and/or obtain necessary financing.
• There were no revenues reported for the periods presented.
• The company issued 571,805,889 shares due to the conversion of a convertible loan and interest, totaling $120,562 during the six months ended February 28, 2025.
• Subsequent to the period end, on March 17, 2026, the company issued 100,000,000 shares for $8,000 in loan conversions.

Sentiment

Score: 2

Explanation: StockSavvy.ai views this filing negatively due to the widening net loss, decreasing cash reserves, and explicit going concern warnings, indicating significant financial distress.

Positives

• The company successfully converted a convertible loan and interest into 571,805,889 shares of common stock during the six months ended February 28, 2025, totaling $120,562.
• Subsequent to the reporting period, on March 17, 2026, the company issued 100,000,000 shares in connection with loan conversions totaling $8,000, indicating some debt reduction through equity issuance.

Negatives

• The company incurred a net loss of $157,817 for the six months ended February 28, 2026, an increase from $104,140 in the prior year period.
• Operating expenses increased by $35,385 to $136,965 for the six months ended February 28, 2026, compared to $101,743 in the prior year period.
• Cash and cash equivalents decreased to $12,154 as of February 28, 2026, from $15,111 as of August 31, 2025.
• The company has a cumulative deficit of $25,426,193 as of February 28, 2026.
• The company expects to incur a minimum of $1,000,000 in expenses over the next twelve months.
• The company has no current arrangements or understandings to obtain funds through bank loans, lines of credit, or other sources, and its inability to raise funds will severely impact its viability.

Risks

• The company's ability to continue as a going concern is dependent on its ability to generate profitable operations and/or obtain necessary financing.
• The company has incurred cumulative losses since inception, raising substantial doubt about its ability to continue as a going concern.
• There is no assurance that the company will be successful in generating revenues, raising investment capital, or developing and implementing its business plan.
• The company's financial statements do not include any adjustments that may be necessary should it be unable to continue as a going concern.
• The company has no off-balance sheet arrangements that are reasonably likely to have a current or future material effect on its financial condition, but this could change.
• The company is a pre-clinical-stage biopharmaceutical company, and its drug candidate RCC-33 is still in development, with no guarantee of successful clinical trials or market approval.

Future Outlook

The company expects to incur a minimum of $1,000,000 in expenses over the next twelve months, primarily for general expenses, R&D, and clinical study fees. Its ability to continue as a going concern is dependent on generating profitable operations and/or obtaining necessary financing, with no assurance of success. The company has no current arrangements for funding.

Management Comments

• The company's ability to continue as a going concern is dependent upon its abilities to generate revenues, to continue to raise investment capital, and develop and implement its business plan.
• There can be no assurance that additional capital will be available to us.
• Our inability to raise funds for our operations will have a severe negative impact on our ability to remain a viable company.

Industry Context

StockSavvy.ai notes that CNBX Pharmaceuticals operates in the highly competitive and capital-intensive biopharmaceutical sector, specifically focusing on pre-clinical oncology drug development. The company's current financial state, characterized by increasing losses and dwindling cash reserves, is a common challenge for early-stage biotechs. The reliance on external financing and the uncertainty surrounding clinical trial success are significant industry-wide risks.

Comparison to Industry Standards

• Many pre-clinical stage biopharmaceutical companies face similar challenges in funding operations and advancing drug candidates through clinical trials.
• The net loss reported by CNBX Pharmaceuticals for the six-month period is not unusual for companies at its stage of development, where significant investment in R&D is required before revenue generation.
• However, the substantial increase in the net loss and the decrease in cash reserves, coupled with the explicit going concern warning, place CNBX in a more precarious position compared to well-funded peers or those with advanced clinical programs.

Legal Proceedings

• None reported.

Related Party Transactions

• During the six months ending February 28, 2026, the company paid $18,843 in salaries and benefits to its CEO and director, compared to $28,258 to two directors in the prior year period.
• During the six months ending February 28, 2026, the company accrued $68,373 in salaries and benefits for its CEO and chairman, compared to $0 in the prior year period.
• As of February 28, 2026, the company had a balance of $1,094,811 payable to two directors: Gabriel Yariv and Eyal Barad.
• During the six months ended February 28, 2026, the company paid $21,238 in compensation to its CFO, compared to $25,857 in the prior year period.
• As of February 28, 2026, the company had a balance of $2,091 payable to its CFO.
• As of February 28, 2026, and February 28, 2025, the company had a balance of $223,645 payable to Cannabics, Inc. This advance is due on demand and bears no interest.

Stakeholder Impact

• Shareholders face continued dilution risk if equity financing is pursued and potential loss of investment if the company fails to secure funding or achieve profitability.
• Creditors and lenders may face increased risk of non-payment given the going concern issues.
• Employees (currently one reported) may face job insecurity due to the company's precarious financial situation.
• Suppliers may face delayed payments or increased scrutiny on credit terms.

Next Steps

• Advance drug candidate RCC-33 through clinical studies, potentially with partners.
• Opportunistically add programs in areas of high unmet medical needs through acquisition, collaboration, or internal development.
• Raise additional capital to fund operations and meet obligations.

Key Dates

Recommendation

The company's financial condition is deteriorating, with increasing losses, declining cash, and significant going concern risks. Without a clear path to revenue generation or a concrete plan for substantial capital infusion, the outlook is highly uncertain, making it a speculative investment with a high risk of capital loss.

Keywords

CNBX Pharmaceuticals, Form 10-Q, Quarterly Report, Financial Statements, Net Loss, Operating Expenses, Cash Flow, Going Concern, Biopharmaceutical, Clinical Trials, Convertible Loan