CANNABIS BIOSCIENCE INTERNATIONAL HOLDINGS, INC. 10-Q

Press release · 10/26 05:50
CANNABIS BIOSCIENCE INTERNATIONAL HOLDINGS, INC. 10-Q

CANNABIS BIOSCIENCE INTERNATIONAL HOLDINGS, INC. 10-Q

Cannabis Bioscience International Holdings, Inc. (CBIH) reported its financial results for the quarter ended August 31, 2024. The company’s total assets increased to $23.6 million, with cash and cash equivalents of $4.3 million. Revenue decreased to $0.2 million, primarily due to a decline in sales of its cannabis products. The company reported a net loss of $2.1 million, or $0.03 per share, compared to a net loss of $1.4 million, or $0.02 per share, in the same period last year. CBIH also reported a significant increase in its accounts payable and accrued expenses, which increased to $5.4 million, primarily due to the company’s ongoing efforts to expand its operations and invest in research and development. The company’s financing agreement with a third-party lender was also extended to August 31, 2024, providing additional funding for the company’s operations.

Summary and Analysis of Key Points

Overview of the Company’s Financial Performance

The financial report provides an overview of the Company’s operations and financial condition. The key points are:

  • The Company is headquartered in Houston, Texas and conducts clinical trials as well as provides cannabis-related education.
  • There is substantial doubt about the Company’s ability to continue as a going concern, as it has incurred recurring losses, negative cash flow, and an accumulated deficit. The Company needs substantial additional capital to fund its business and execute its operating plan.
  • The Company’s operating units are Alpha Research Institute (clinical trials and medical research) and Pharmacology University (cannabis-related education).
  • The Company previously operated a sleep center, but this was terminated on April 30, 2023.

Revenue and Profit Trends

  • Revenues increased from $72,821 in Q4 2023 to $178,887 in Q4 2024, primarily due to an increase in clinical trial contract revenues.
  • Consulting fees and online sales of educational materials decreased.
  • Operating expenses increased from $240,785 in Q4 2023 to $268,169 in Q4 2024, mainly due to a $100,000 non-cash expense for share-based compensation.
  • The operating loss decreased from $176,784 in Q4 2023 to $97,904 in Q4 2024. Excluding the non-cash compensation expense, the Company would have recorded operating income of $2,396 in Q4 2024.
  • Net loss decreased from $181,789 in Q4 2023 to $76,305 in Q4 2024, again due to the non-cash compensation expense.

Strengths and Weaknesses

Strengths:

  • Increase in clinical trial contract revenues
  • Forgiveness of $23,638 in debt

Weaknesses:

  • Recurring losses and negative cash flow
  • Substantial doubt about ability to continue as a going concern
  • Dependence on additional capital to fund operations

Outlook for the Future

The Company’s ability to continue as a going concern depends on its successful execution of its operating plan, which includes increasing sales of existing services and introducing new services, as well as raising additional debt or equity financing. Without timely access to adequate capital, the Company’s operations could be materially negatively impacted or it could be forced to terminate its operations.