The following discussion provides information regarding the results of
operations for the years ended
The following discussion and analysis should be read in conjunction with and our historical financial statements and the accompanying notes included elsewhere in this Annual Report on Form 10-K, as well as the Risk Factors and the Cautionary Note Regarding Forward-Looking Statements included above.
Results of Operations For the Years Ended 2022 2021 Operating Expenses Amortization$ 58,450 $ 3,000 General and Administrative 162,749 316,995 Professional Fees 166,254 160,388 Research and Development 448,873 435,872 Share-Based Compensation 1,070,983 1,413,055 Total operating expenses 1,907,309 2,329,310 Loss from Operations (1,907,309 ) (2,329,310 ) Net Loss$ (1,907,309 ) $ (2,329,310 ) Revenues
We had no revenues for the years ended
Gross profit and expenses
The Company's net loss was
· Professional fees decreased by$5,866 , year over year going to$166,254 from$160,388 as legal and auditing fees each contributed to a small increase , while accounting activity remained unchanged over prior year totals. · Share-based compensation decreased by$342,072 from$1,413,055 to$1,070,983 primarily because of a the revaluation of existing options granted. In 2020 the Company adopted a change in accounting based on new FASB guidance for valuation of share-based payments to non-employees. · Research and development increased slightly by$13,001 from$435,872 to$448,873 as the Company finished existing test projects and moves toward leveraging the positive study findings. Any new projects will be targeted investments expanding the development of the AAGP® molecule through institutional collaborations and industry partnerships. · General and administrative expenses decreased throughout the year by$154,246 from$316,995 to$162,749 due to the significant decrease in spending on marketing, press releases and social media exposure. Majority of new information is currently released through updates to Company website.
Our expenses in 2022 were
14
Liquidity and Capital Resources
As at December 31, 2022 2021 Cash$ 25,550 $ 57,568 Working Capital$ (14,930 ) $ (9,705 )
At
The failure to secure adequate outside funding would have an adverse effect on our plan of operation and results therefrom and a corresponding negative impact on stockholder liquidity.
Sources and Uses of Cash for the Years ended
During the year ended
During the year ended
Net Cash Provided by Financing Activities
During the year ended
Going Concern
The accompanying financial statements have been prepared in conformity with
accounting principles generally accepted in
Off-Balance Sheet Arrangements
None. 15 Contractual Obligations
As a smaller reporting company, we are not required to provide the information required by paragraph (a)(5) of this Item.
Critical Accounting Policies
The preparation of financial statements in conformity with
Our management routinely makes judgments and estimates about the effect of matters that are inherently uncertain. As the number of variables and assumptions affecting the future resolution of the uncertainties increase, these judgments become even more subjective and complex. Although we believe that our estimates and assumptions are reasonable, actual results may differ significantly from these estimates. Changes in estimates and assumptions based upon actual results may have a material impact on our results of operation and/or financial condition. Our significant accounting policies are disclosed in Note 2 to the Financial Statements included in this Form 10-K.
While all of the significant accounting policies are important to the Company's financial statements, the following accounting policies and the estimates derived there from have been identified as being critical.
Share-Based Compensation
The Company has granted warrants and options to purchase shares of the Company's common stock to various parties for consulting services. The fair values of the warrants and options issued have been estimated using the Black-Scholes Option Pricing Model.
The Company accounts for stock compensation with persons classified as employees for accounting purposes in accordance with ASC 718 "Compensation - Stock Compensation", which recognizes awards at fair value on the date of grant and recognition of compensation over the service period for awards expected to vest. Cliff Vesting is used and awards vest on the last day of the vesting period. The fair value of stock options is determined using the Black-Scholes Option Pricing Model. The fair value of common shares issued for services is determined based on the Company's stock price on the date of issuance.
Share-based compensation for non-employees in exchange for goods and services used or consumed in an entity's own operations are also recorded at fair value on the measurement date and accounted for in accordance with ASC 718. The measurement of share-based compensation is subject to periodic adjustment as the underlying instruments vest. The fair value of stock options is estimated using the Black-Scholes Option Pricing Model and the compensation charges are amortized over the vesting period.
Intangible Assets - Patent and Patent Application Costs
The Company owns intangible assets consisting of certain patents and patent applications. Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. Subsequent expenditures are capitalized only when they increase the future economic benefits embodied in the specific asset to which they relate. The Company capitalizes its patent application costs. All other expenditures are recognized in profit or loss as incurred.
As at
Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization method and amortization period of an intangible asset with a finite life is reviewed at least annually.
Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates.
Amortization is recognized in profit or loss on a straight-line basis over the
estimated useful lives of the Company's patents, whereas no amortization has
been recognized on the patent application costs as at
Sales and Marketing
The Company is currently not selling or marketing any products.
Inflation
Although management expects that our operations will be influenced by general
economic conditions, we do not believe that inflation had a material effect on
our results of operations during the year ending
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