GREATER CANNABIS COMPANY, INC. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (form 10-Q)
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Company Overview
From
own and licensed technologies worldwide for transmucosal and transdermal
delivery of legal medical or recreational cannabis (other than in the field of
oral care) and cannabinoids (“CBD”). While part of the cannabis family, CBD,
which contains less than 0.3{b574a629d83ad7698d9c0ca2d3a10ad895e8e51aa97c347fc42e9508f0e4325d} tetrahydrocannabinol (“THC”), the psychoactive
compound that produces the “high” in marijuana, is distinguished from cannabis
by its use, physical appearance and lower THC concentration (cannabis generally
has a THC level of 10{b574a629d83ad7698d9c0ca2d3a10ad895e8e51aa97c347fc42e9508f0e4325d} or more). The Company’s initial product was an oral
transmucosal patch platform which provides for loaded actives to be absorbed by
the buccal mucosa into the body. Although the Company was able to launch the
product and received some limited initial orders,
ultimately elected to pursue other opportunities which they believed offered the
Company greater potential for growth and ultimate profitability.
Accordingly, on
with
license of SZS’s novel cannabinoid therapeutic focused on treatment of autism,
schizophrenia, Parkinson’s disease, Alzheimer’s disease and other
neuropsychiatric disorders.
of the largest multidisciplinary research hospitals in
and over 850,000 patient visits a year.
Development
in medical journals in addition to almost 160 clinical trials.
Accompanying the license agreement is a joint research and development
agreement, which will focus on continuing the clinical program spearheaded by
Dr.
cannabinoid therapy.
and pediatric neurology and was the principal investigator of the first ever
cannabis research study conducted on autistic children.
based medical cannabis as an adjuvant therapy for refractory behavioral problems
in children with ASD. The results provided very compelling evidence that medical
cannabis is an effective therapy for children on the autism spectrum. Conditions
in 80{b574a629d83ad7698d9c0ca2d3a10ad895e8e51aa97c347fc42e9508f0e4325d} of the children improved, with 62{b574a629d83ad7698d9c0ca2d3a10ad895e8e51aa97c347fc42e9508f0e4325d} of parents reporting substantial
improvements. Half of the children had improved communication and 40{b574a629d83ad7698d9c0ca2d3a10ad895e8e51aa97c347fc42e9508f0e4325d} reported a
decrease in anxiety. The same children had not shown improvement with
conventional drug therapies.
combination therapy that is believed to be significantly more effective than the
cannabis-only formulation that had been used in the aforementioned study. The
Company plans to further develop this therapeutic and conduct clinical studies
to further substantiate its safety and efficacy beginning in neuropsychiatric
disorders.
The clinical studies of the therapeutic are expected to require an investment of
up to
The Company’s current business plan is to (i) conduct clinical studies on and
commercialize the cannabinoid-based therapeutic and (ii) concentrate on cannabis
related investment and development opportunities through direct equity
investments, joint ventures, licensing agreements or acquisitions.
On
submitted a clinical trial application to the
approval of a Phase II clinical trial to study the safety and efficacy of its
neuroprotective cannabinoid therapeutic to treat autism related spectrum
disorders (ASD) and other neuropsychiatric illnesses.
4 Results of operations
Three months ended
The Company had no revenue during the three months ended
2021.
Our operating expenses for the three months ended
include officers’ compensation and professional fees. The decrease from the 2021
quarter to the 2022 quarter was primarily a result of a reduction of other
operating expenses in the amount of
Other income and (expenses) was
30, 2022
conversion of notes payable increased by
discounts decreased by
Our net loss for the three months ended
compared to the net loss of
Nine months ended
30, 2021
The Company had no revenue during the nine months ended
compared to revenue from sales of its oral transmucosal patch platform of
incurred gross profit (loss) of
Company shifted its focus from that product in the second half of 2021.
Our operating expenses for the nine months ended
include officers’ compensation and professional fees. The decrease from the 2021
period to the 2022 period was primarily a result of a reduction of
officers compensation and decreased other operating expenses of
Other income and (expenses) was
30, 2022
liability income decreased by
accrued interest to common stock decreased by
discounts decreased by
Our net loss for the nine months ended
compared to the net loss of
Liquidity and Capital Resources
We had
2021
At
to third parties compared to
The proceeds from loans and convertible debentures as well as cash on hand is
being used to fund the operations of our current operations.
The following table provides detailed information about our net cash flows for
the nine months ended
September 30 , September 30,
2022 2021
Net cash used in operating activities
Net cash used in investing activities
- - Net cash provided by financing activities - 500,000 Net increase (decrease) in cash$ (88,426 ) $ 343,405
Critical Accounting Policies and Estimates
The
Disclosure About Critical Accounting Policies” suggesting that companies provide
additional disclosure and commentary on their most critical accounting policies.
In Financial Reporting Release No. 60, the
accounting policies as the ones that are most important to the portrayal of a
company’s financial condition and operating results and require management to
make its most difficult and subjective judgments, often as a result of the need
to make estimates of matters that are inherently uncertain. Based on this
definition, we have identified the following significant policies as critical to
the understanding of our financial statements. The preparation of financial
statements in conformity with generally accepted accounting principles requires
management to make a variety of estimates and assumptions that affect (i) the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities as of the date of the financial statements and (ii) the reported
amounts of revenues and expenses during the reporting periods covered by the
financial statements. Our management expects to make 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.
5
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements that have or are reasonably
likely to have a current or future effect on our financial condition, changes in
financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources that are material to investors.
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