Unless the context requires otherwise, references in this document to
"ProtoKinetix", "we", "our", "us" or the "Company" are to
The following discussion provides information regarding the results of
operations for the nine-month period ended
Cautionary Note Regarding Forward-Looking Statements
The information discussed in this Quarterly Report on Form 10-Q include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"). All statements, other than statements of historical facts, included herein and therein concerning, among other things, planned capital expenditures, future cash flows and borrowings, pursuit of potential acquisition opportunities, our financial position, business strategy and other plans and objectives for future operations, are forward-looking statements. These forward-looking statements are identified by their use of terms and phrases such as "may," "expect," "estimate," "project," "plan," "believe," "intend," "achievable," "anticipate," "will," "continue," "potential," "should," "could," and similar terms and phrases. Although we believe that the expectations reflected in these forward-looking statements are reasonable, they do involve certain assumptions, risks and uncertainties and are not (and should not considered to be) guarantees of future performance. Our results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including, among others:
• Our capital requirements and the uncertainty of being able to obtain additional funding on terms acceptable to us; • Our plans to develop and commercialize products from the AAGP® molecule; • Ongoing testing of the AAGP® molecule; • Our intellectual property position; • Our commercialization, marketing and manufacturing capabilities and strategy; • Our ability to retain key members of our senior management and key scientific consultants; • The effects of competition; • Our potential tax liabilities resulting from conducting business inthe United States andCanada ; • The effect of further sales or issuances of our common stock and the price and volume volatility of our common stock; and • Our common stock's limited trading history.
Finally, our future results will depend upon various other risks and
uncertainties, including, but not limited to, those detailed in our filings with
the
Business Overview
In
As of the date of this filing, the Company has regained a significant portion of
its operational capacity and we continue to move forward with our research
goals. Our supply of the patented AAGP® molecule has been manufactured and
stored in
20 Results of Operations The following table shows selected financial data and operating results for the periods noted. Following the table, please see management's discussion of significant changes. For the Nine Months Ended September 30, 2022 2021 EXPENSES Amortization$ 2,250 $ 2,250 General and Administrative 146,227 278,308 Professional Fees 121,015 89,479 Research and Development 426,968 250,419 Share-Based Compensation 627,192 1,314,700 Net loss for the period$ (1,323,652 ) (1,935,156 ) Gross Profit and Expenses
The Company's net loss was
General and administrative fees dropped by
Professional fees increased by
Research and development expenditures increased year over year with a change of
Share-based compensation decreased by
21
Liquidity and Capital Resources
The following summarizes our balance sheet atSeptember 30, 2022 andDecember 31, 2021 : September 30, 2022 December 31, 2021 Cash $ 43,712 $ 57,568 Working Capital $ (60,272 ) $ (9,705 )
At
There can be no assurance that in the future we will be able to raise capital from outside sources in sufficient amounts to fund our new business. 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
Net cash used in operating activities remained almost constant with an increase
of only
Net cash used in investing activities was
Net Cash Provided by Financing Activities
Net cash provided by financing activities increased by
Going Concern
The accompanying financial statements have been prepared in conformity with
accounting principles generally accepted in
Off-Balance Sheet Arrangements
None. 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
22
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-Q.
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 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.
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 nine months ended
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