Company Overview
We are a pre-clinical-stage, platform technology biopharmaceutical company which
has developed proprietary innovative medicines in areas of significant unmet
medical needs in oncology, with a current focus on colorectal cancer ("CRC").
Our drug candidate under development for colon cancer is RCC-33, a
first-in-class therapy being developed primarily in two settings: one to reduce
tumor cell activity in colon cancer patients as a standalone in neoadjuvant
treatment or "window of opportunity" at the time after colonoscopy, prior to
cancer staging; and another for patients with refractory to therapy and adjuvant
to surgery also at the time after colonoscopy. The Company hopes to start first
in human Phase I/II clinical trials in 2023. Neoadjuvant treatment is the
administration of a therapy before the surgical treatment to improve patient
outcome, and our business strategy is to advance our programs through clinical
studies including with partners, and to opportunistically add programs in areas
of high unmet medical needs through acquisition, collaboration, or internal
development.
Results of Operations
For the Three Months Ended February 28, 2022 and 2021
Operating Expenses
For the three months ended February 28, 2022, our total operating expenses were
$730,261 compared to $667,869 for the three months ended February 28, 2021,
resulting in an increase of $62,392. The increase is attributable to a total
decrease of $47,774 in general administration, and sales and marketing expenses
and an increase of $14,618 in research and development expenses.
We realized other loss of $508,610 for the three months ended February 28, 2022,
compared to other income of $133,114 for the three months ended February 28,
2021. The increase in financial expense was mainly attributable to convertible
loan valuation of $481,624 and exchange differences in total of $26,900. As a
result, the net loss was $1,238,871 for the three months ended February 28,
2022, compared to a net loss of $534,755 for the three months ended February 28,
2021.
Net Loss
Net loss for the three months ended February 28, 2022 was $1,238,871 compared to
net loss $534,755 for the three months ended February 28, 2021, for the reasons
explained above.
Other comprehensive profit
We incurred another comprehensive loss of $366,790 for the three months ended
February 28, 2022. The loss was due to a valuation of a financial asset,
consisting of the Company's shares held in Sativus Inc (previously Seedo Inc),
as a result; the total comprehensive loss was $1,605,661 for the three months
ended February 28, 2022.
13
For the Six Months Ended February 28, 2022 and 2021
Operating Expenses
For the six months ended February 28, 2022, our total operating expenses were
$1,840,610 compared to $1,327,601 for the six months ended February 28, 2021,
resulting in an increase of $513,009. The increase is attributable to a total
increase of $492,077 in general administration, and sales and marketing expenses
and increase of $20,932 in research and development expenses.
We realized finance expenses of $721,280 for the six months ended February 28,
2022, which mainly attributable to convertible loan valuation of $678,392 and
exchange differences in total of $42,256 and. Compared to other income of
$138,079 for the six months ended February 28, 2021. As a result, the net loss
was $2,561,891 for the six months ended February 28, 2022, compared to a net
loss of $1,189,522 for the six months ended February 28, 2021.
Net loss
Net loss for the six months ended February 28, 2022 was $2,561,891 compare to
net loss of $1,189,522 for the six months ended February 28, 2022.
Other comprehensive profit
We incurred another comprehensive loss of $648,001 for the six months ended
February 28, 2022. The loss was mainly attributable to a revaluation of a
financial asset, consisting of the Company's shares held in Sativus (previously
Seedo), in the total amount of $648,001 As a result; the total comprehensive
loss was $3,209,892 for the six months ended February 28, 2022.
Liquidity and Capital Resources
Overview
As of February 28, 2022, we had $231,637 in cash compared to $1,386,472 on
August 31, 2021. We expect to incur a minimum of $1,000,000 in expenses during
the next twelve months of operations. We estimate that these expenses will be
comprised primarily of general expenses including overhead, legal and accounting
fees, research and development expenses, and fees payable to outside medical
centers for clinical studies.
14
Liquidity and Capital Resources during the Six Months Ended February 28, 2022
compared to the Six Months Ended February 28, 2021
We used cash in operations of $1,154,322 for the six months ended February 28,
2022 compared to cash used in operations of $1,294,977 for the six months ended
February 28, 2021. The negative cash flow from operating activities for the six
months ended February 28, 2022 is primarily attributable to the Company's net
loss from operations of $2,561,891, share based compensation of $530,662,
convertible loan valuation in a total of $678,391, depreciation of $102,411, a
decrease in accounts payables and accrued liabilities of $36,47 and an increase
of $59,688 in account receivables and prepaid expenses.
We had cash used from investing activities of $513 during the six months ended
February 28, 2022, compared to cash flow from investing activities of $645,025
for the six months ended February 28, 2021. The cash used to purchase of fixed
assets in the aggregate amount of $513 for the six months ended February 28,
2022, comparing to cash flow from investing activities is due to the Company's
Realization of Wize Pharma Inc shares of $645,968 and its purchase of fixed
assets in the aggregate amount of $943 for the six months ended February 28,
2021
We will have to raise funds to pay for our expenses. We may have to borrow money
from shareholders, issue equity or enter into a strategic arrangement with a
third party. There can be no assurance that additional capital will be available
to us. We currently have no arrangements or understandings with any person to
obtain funds through bank loans, lines of credit or any other sources. Since we
have no such arrangements or plans currently in effect, our inability to raise
funds for our operations will have a severe negative impact on our ability to
remain a viable company.
Going Concern
Our independent auditors included an explanatory paragraph in their report on
the accompanying unaudited financial statements regarding concerns about our
ability to continue as a going concern. Our financial statements contain
additional note disclosures describing the circumstances that lead to this
disclosure by our independent auditors.
Our unaudited financial statements have been prepared on a going concern basis,
which assumes the realization of assets and settlement of liabilities in the
normal course of business. Our ability to continue as a going concern is
dependent upon our ability to generate profitable operations in the future
and/or to obtain the necessary financing to meet our obligations and repay our
liabilities arising from normal business operations when they become due. The
outcome of these matters cannot be predicted with any certainty at this time and
raise substantial doubt that we will be able to continue as a going concern. Our
unaudited financial statements do not include any adjustments to the amount and
classification of assets and liabilities that may be necessary should we be
unable to continue as a going concern.
There is no assurance that our operations will be profitable. Our continued
existence and plans for future growth depend on our ability to obtain the
additional capital necessary to operate either through the generation of revenue
or the issuance of additional debt or equity.
Off-Balance Sheet Arrangements
We currently have no off-balance sheet arrangements that have or are reasonably
likely to have a current or future material effect on our financial condition,
changes in financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources.
15
Critical Accounting Policies
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires us to make a number
of estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements. Such estimates and assumptions affect the reported
amounts of revenues and expenses during the reporting period. We base our
estimates on historical experiences and on various other assumptions that we
believe to be reasonable under the circumstances. Actual results may differ
materially from these estimates under different assumptions and conditions. We
continue to monitor significant estimates made during the preparation of our
financial statements. On an ongoing basis, we evaluate estimates and assumptions
based upon historical experience and various other factors and circumstances. We
believe our estimates and assumptions are reasonable in the circumstances;
however, actual results may differ from these estimates under different future
conditions.
See Item 7, "Management's Discussion and Analysis of Financial Condition and
Results of Operations" and Note 2, "Summary of Significant Accounting Policies"
in our audited consolidated financial statements for the year ended August 31,
2021, included in our Annual Report on Form 10-K as filed on November 29th,
2021, for a discussion of our critical accounting policies and estimates.
© Edgar Online, source Glimpses