Executive Overview

GB Sciences, Inc. (“the Company”, “GB Sciences”, “we”, “us”, or “our”) is a plant-inspired, biopharmaceutical research and development company creating patented, disease-targeted formulations of cannabis- and other plant-inspired therapeutic mixtures for the prescription drug market through its wholly owned Canadian subsidiary, GbS Global Biopharma, Inc. (“GBSGB”).

Through GBSGB, the Company is engaged in the research and development of plant-inspired medicines, with virtual operations in North America and Europe. GBSGB’s assets include a portfolio of intellectual property containing both proprietary plant-inspired formulations and an AI-enabled drug discovery platform, as well as critical research contracts and key supplier arrangements. The Company’s intellectual property portfolio, which is held by GBSGB, contains eight U.S. and twelve foreign patents issued, two foreign patents allowed, as well as fifteen U.S. and forty-one foreign patent-pending applications.

The Company’s intellectual property covers a range of over 65 medical conditions, from which five drug development programs are in the preclinical stage of drug development including formulations for Parkinson’s disease (“PD”), chronic pain, cytokine release syndrome, stress/anxiety/depression, and cardiovascular therapeutic programs. The primary focus for the development of the Company’s lead program this year has been in evaluating suitable development partners that will assist in preparing its cannabinoid-based formulas for the treatment of the motor symptoms of Parkinson’s disease for a first-in-human clinical trial. Talks with multiple potential licensing partners are ongoing and remain promising to help support the development of the Parkinson’s disease therapy.

Recent Developments

The primary focus for the development of the Company’s lead program in Parkinson’s disease has been in evaluating suitable development partners that will assist in preparing its cannabinoid-based formulas for the treatment of the motor symptoms of Parkinson’s disease for a first-in-human clinical trial. Talks with multiple potential licensing partners are ongoing and remain promising to help bring the first-in-class Parkinson’s disease therapy into clinical trials.

In the period from March 30, 2023 to now, the Company has received positive results from five different preclinical trials that strongly support the development of their plant-inspired therapies. These important studies support the viability of its novel therapeutic programs. In July of 2023, the Company announced that they have successfully completed a dose response study in rodents at the University of Lethbridge that supports the Company’s lead program, a cannabinoid-based therapy for Parkinson’s disease. The study has established dose ranges and the corresponding times to onset and duration of action in a rodent model, which helps to establish the correct dosing of the Company’s cannabinoid-containing Parkinson’s formulations for a first-in-human trial. In addition to the dosage range findings, this study demonstrated that the Company’s Parkinson’s disease formulations were well tolerated, and there were no adverse effects.

Intellectual Property Portfolio

Within the past year, the number of issued patents owned by the Company has increased significantly. Prior to March 30, 2023, the company had six U.S. and eight foreign patents issued for the protection of its plant-inspired drug formulations in the U.S. and global markets. As of now, the Company has eight U.S. and twelve foreign patents issued, as well as two foreign patents allowed that will be issuing soon. The Company’s continued success in having its patents granted validates its novel strategy of protecting simplified ratio-controlled mixtures of natural compounds that treat diseases for which there is a great need for more effective therapies.

The Company has received interest in and is reviewing options for monetizing its proprietary PhAROS™ drug discovery platform. PhAROS™, which stands for Phytomedical Analytics for Research Optimization at Scale, is an AI-enabled drug discovery tool that harnesses the therapeutic potential of plant-based medicines from within the 12 major traditional medical systems (TMS) in the world. PhAROS™ can discover and predict entirely new drug candidates from within these TMS in the form of proprietary minimum essential mixtures that are simplified but informed by the much more complex original plant-based materials.

Results of Operations

The following table sets forth certain of our Statement of Operations data:

For the Years Ended	March 31, 2024	March 31, 2023
SALES REVENUE	$-	$-
COST OF GOODS SOLD	-	-
GROSS PROFIT (LOSS)	-	-
OPERATING EXPENSES	1,420,509	1,672,281
LOSS FROM OPERATIONS	(1,420,509)	(1,672,281)
OTHER INCOME (EXPENSE)
Interest expense	(218,973)	(178,652)
Loss on impairment of capitalized patent costs	(42,195)	(2,374,261)
Other income – Collections in notes receivable	320,000	100,000
Total other income/(expense)	58,832	(2,452,913)
LOSS BEFORE INCOME TAXES	(1,361,677)	(4,125,194)
Income tax expense	-	-
NET LOSS	$(1,361,677)	$(4,125,194)

Operating Expenses decreased by $251,772 to $1,420,509 for the year ended March 31, 2024 due to reduced compensation, decreased research and development activities, and lower amortization. Interest Expense increased by $40,321 to $218,973 due to new loans and interest on income taxes. The Company recorded an impairment charge of $42,195 on capitalized patent costs in 2024, compared to $2,374,261 in 2023. Other income increased to $320,000 in 2024 from $100,000 in 2023 due to collections on a note receivable.

Liquidity and Capital Resources

The Company will need additional capital to implement its strategies. Based on the current cash position, it is necessary to raise additional capital by the end of the next quarter in order to continue to fund current operations. The principal sources of liquidity to date have been cash generated from sales of debt and equity securities.

At March 31, 2024, the Company had a cash balance of $11,991, other current assets of $91,451, and a working capital deficit of $4,992,115. Current liabilities were $5,095,557, consisting mainly of notes/convertible notes payable, accounts payable, and income taxes payable.

Cash used in operations was $975,698 for the year ended March 31, 2024, compared to $1,526,861 in 2023. Cash flows of $320,000 were provided by investing activities in 2024 from collections on a note receivable. Financing activities provided $557,777 in 2024 from warrant exercises and new convertible notes.

The Company has several outstanding convertible notes and a 0% promissory note that are currently in default or have passed their maturity dates. The Company is working to negotiate extensions or modifications of these notes.

Variables and Trends

The Company has limited operating history with respect to the current business plan. In the event the Company is able to obtain the necessary financing, business expenses are expected to increase significantly as the Company moves forward with its operations.