10-K/A: Greater Cannabis Company Files Amended 10-K, Addressing Auditor Report and Licensing Agreement Details

The Greater Cannabis Company files an amendment to its 2024 annual report to include the 2023 auditor report and additional details on its licensing agreement with Shaare Zedek Scientific Ltd.

Summary

• The Greater Cannabis Company, Inc. filed an amendment to its annual report on Form 10-K for the fiscal year ended December 31, 2024.
• The amendment includes the 2023 auditor report in Section F-2 and additional information about the Nature of Operations and Summary of Significant Accounting Policies related to the licensing agreement with Shaare Zedek Scientific Ltd. in Section F-8.
• No other changes were made to the Form 10-K.
• The company generated $0 in revenue for the year ended December 31, 2024, the same as in 2023.
• Operating expenses for 2024 were $156,276, compared to $175,364 in 2023.
• The net loss for 2024 was $179,041, a slight decrease from the $188,402 loss in 2023.
• The company had $57,368 in cash on hand at December 31, 2024, compared to $166,859 at the end of 2023.
• The company has $171,437 in outstanding convertible notes as of December 31, 2024.
• The company is focusing on the development and commercialization of innovative cannabinoid therapeutics, particularly through a licensing agreement with Shaare Zedek Scientific Ltd.
• The company is waiting for the Principal Investigator (PI) to source the specialized active pharmaceutical ingredients (API) required to facilitate the Phase 2 Clinical Trial, and as such the annual licensing fee payments have been put on hold.
• The company needs to raise additional funds to finance the cost of the Phase II Clinical Trial.

Sentiment

Score: 3

Explanation: The company's financial performance is weak, with no revenue and continued losses. While there is potential in the cannabinoid therapeutics space, the company faces significant challenges in securing funding and advancing its clinical trials.

Positives

• The company's operating expenses decreased in 2024 compared to 2023.
• The net loss decreased slightly in 2024 compared to 2023.
• The company has a licensing agreement with Shaare Zedek Scientific Ltd. for cannabinoid therapeutics.
• The company received approval from the Israel Ministry of Health to proceed with a Phase II Clinical Trial.

Negatives

• The company generated no revenue in either 2024 or 2023.
• The company experienced a decrease in cash on hand from 2023 to 2024.
• The company has a significant accumulated deficit of $4,660,345 as of December 31, 2024.
• The company needs to raise additional funds to finance the cost of the Phase II Clinical Trial.

Risks

• The company's ability to continue as a going concern is uncertain.
• The company needs to secure additional financing to commence and sustain its planned development and growth plans.
• The company is subject to government regulation of the marijuana industry.
• The company is waiting for the Principal Investigator (PI) to source the specialized active pharmaceutical ingredients (API) required to facilitate the Phase 2 Clinical Trial, and as such the annual licensing fee payments have been put on hold.
• The regulatory approval timeline is uncertain at this time as the Company is awaiting clinical data from the Phase II Clinical Trial in order to submit an application to the FDA to begin the regulatory process.

Future Outlook

The company expects to continue to incur negative cash flows until its business generates sufficient cash inflows to finance operations and debt service requirements. The company's future plans include securing additional funding sources to finance the cost of the Phase II Clinical Trial.

Industry Context

The company operates in the competitive cannabis space, with competitors ranging from producers of cannabis plants to makers of cannabis-based edible products to developers of different methods of cannabis delivery. Known competitors in our space include Jazz Pharmaceuticals (NASDAQ: JAZZ) and Zynerba Pharmaceuticals (NASDAQ: ZYNE).

Comparison to Industry Standards

• It's difficult to directly compare Greater Cannabis Company to industry standards due to its unique focus on cannabinoid therapeutics and its current pre-revenue stage.
• Companies like Jazz Pharmaceuticals (NASDAQ: JAZZ) and Zynerba Pharmaceuticals (NASDAQ: ZYNE) are mentioned as competitors, but they are significantly larger and have established revenue streams.
• Jazz Pharmaceuticals focuses on developing and commercializing pharmaceutical products for unmet medical needs, while Zynerba Pharmaceuticals is focused on developing transdermal cannabinoid therapies.
• A more relevant comparison might be to other early-stage biotech companies focused on cannabinoid-based drug development, but specific benchmarks would depend on the target indications and clinical trial progress.

Related Party Transactions

• Loans payable to related parties consist of loans from Elisha Kalfa and Yonah Kalfa, holders of a total of 2,966,666 shares of Series A Convertible Preferred stock, and a loan from Fernando Bisker and Sigalush, LLC, holders of a total of 2,966,666 shares of Series A Convertible Preferred stock.

Stakeholder Impact

• Shareholders face the risk of dilution if the company raises additional capital.
• Employees' job security is dependent on the company's ability to secure funding and continue operations.
• The company's ability to develop and commercialize cannabinoid therapeutics could impact patients with neuropsychiatric disorders.

Next Steps

• The company needs to secure additional funding to finance the Phase II Clinical Trial.
• The company needs to source the specialized API required for the Phase 2 Clinical Trial.
• The company needs to advance the clinical program spearheaded by Dr. Adi Aran, M.D.

Key Dates

Keywords

cannabis, cannabinoid therapeutics, licensing agreement, Shaare Zedek Scientific Ltd., financial results, clinical trial, pharmaceutical, biopharmaceutical, GCAN, OTCPK