Mycotopia Therapies Inc

Previous wording

Results of Operations and Financial Condition for the Three Months Ended March 31, 2024 as Compared to the Three Months Ended March 31, 2023

Current wording

Results of Operations and Financial Condition

Previous wording

We did not have any revenue or cost of revenue from operations for the years ended March 31, 2024 and 2023.

Current wording

We did not have any revenue or cost of revenue from operations for the three months ended June 30, 2024 and 2023.

Previous wording

Operating expenses for the three months ended March 31, 2024 and 2023, consisted solely of general and administrative expenses. General and administrative expenses consisted primarily of consulting fees, stock-based compensation, board compensation, and legal and professional services. For the three months ended March 31, 2024 compared to the three months ended March 31, 2023 our general and administrative expense increased by $215,861, or 149%, from $145,011 to $360,872. The increase in general and administrative expenses was mainly as a the result of increased amortization expense from the intangible assets acquired by the Company in the fourth quarter of 2023 ($166,058), and increased product development costs ($48,905).

Current wording

Operating expenses for the three months ended June 30, 2024 and 2023, consisted solely of general and administrative expenses. General and administrative expenses consisted primarily of consulting fees, stock-based compensation, board compensation, and legal and professional services. For the three months ended June 30, 2024 compared to the three months ended June 30, 2023 our general and administrative expense increased by $274,057, or 234%, from $117,353 to $391,410. The increase in general and administrative expenses was mainly the result of increased amortization expense from the intangible assets acquired by the Company in the fourth quarter of 2023 ($166,058), increase product development costs ($58,381), and increased legal expenses ($25,198).

Previous wording

For the three months ended March 31, 2024 compared to the three months ended March 31, 2023 our interest expense decreased $92,923, or 59%, from $157,993 to $65,070. The decrease was primarily resulted from $126,267 less in debt discount amortization from the Company’s convertible notes partially offset by $29,425 of additional interest expense accrued during the first quarter of 2024 due to the default interest on the Company’s convertible note payables in default.

Current wording

For the three months ended June 30, 2024 compared to the three months ended June 30, 2023 our interest expense decreased by $82,064, or 51%, from $161,329 to $79,265. The decrease was primarily resulted from $137,123 less in debt discount amortization from the Company’s convertible notes partially offset by $41,921 of additional interest expense accrued during the second quarter of 2024 due to the default interest on the Company’s convertible note payables in default.

Previous wording

For the three months ended March 31, 2024 and 2023 we had a net loss of $425,942 and $303,004, respectively.

Current wording

For the three months ended June 30, 2024 and 2023 we had a net loss of $470,675 and $278,682, respectively.

Previous wording

Liquidity is the ability of an enterprise to generate adequate amounts of cash to meet its needs for cash requirements. As of March 31, 2024, we had $370,425 in cash and cash equivalents compared to $279,134 at December 31, 2023, an increase of $91,291 resulting primarily from operating expenses. As of March 31, 2024, we had undiscounted obligations in the amount of approximately $1.3 million relating to the payment of indebtedness due within one year.

Current wording

Liquidity is the ability of an enterprise to generate adequate amounts of cash to meet its needs for cash requirements. As of June 30, 2024, we had $279,905 in cash and cash equivalents compared to $279,134 at December 31, 2023, an increase of $771 resulting primarily from debt financing. As of June 30, 2024, we had undiscounted obligations in the amount of approximately $1.3 million relating to the payment of indebtedness due within one year.

Previous wording

As of March 31, 2024, we had a working capital deficiency of $4,228,224 down from a working capital deficiency of $3,968,589 as of December 31, 2023. At March 31, 2024 our current assets were $370,925 and consisted solely of cash. At March 31, 2024 our current liabilities were $4,599,149 and consisted predominantly of related party accrued expenses, convertible notes payable, and shares to be issued. We had an accumulated deficit of $9,386,923 as of March 31, 2024, an increase from an accumulated deficit of $8,960,981 as of December 31, 2023.

Current wording

As of June 30, 2024, we had a working capital deficiency of $4,532,591 down from a working capital deficiency of $3,968,589 as of December 31, 2023. At June 30, 2024 our current assets were $280,405 and consisted almost entirely of cash. At June 30, 2024 our current liabilities were $4,812,996 and consisted predominantly of related party accrued expenses, convertible notes payable, and shares to be issued. We had an accumulated deficit of $9,857,598 as of June 30, 2024, an increase from an accumulated deficit of $8,960,981 as of December 31, 2023.

Previous wording

Our monthly operating costs averaged approximately $25,000 per month for the three months ended March 31, 2024, excluding capital expenditures. We did not have capital expenditures during the three months ended March 31, 2024. We plan to fund our operations with our cash on hand and additional financing.

Current wording

Our monthly operating costs averaged approximately $27,000 per month for the six months ended June 30, 2024, excluding capital expenditures. We did not have capital expenditures during the six months ended June 30, 2024. We plan to fund our operations with our cash on hand and additional financing.

Previous wording

Operating activities used net cash of $73,709 for the three months ended March 31, 2024, as compared to using net cash of $28,872 for the three months ended March 31, 2023. For the three months ended March 31, 2024, cash used in operating activities was primarily driven by our net loss of $425,942; offset primarily by amortization expense, the increase in related party accrued expenses, the increase in accrued interest, and the increase in accounts payable and accrued expenses. For the three months ended March 31, 2023, cash used in operating activities was primarily driven by our net loss of $303,004; offset primarily by the amortization of debt discounts, the increase in related party accrued expenses, and the increase in accounts payable and accrued expenses.

Current wording

Operating activities used net cash of $164,229 for the six months ended June 30, 2024, as compared to using net cash of $47,005 for the six months ended June 30, 2023. For the six months ended June 30, 2024, cash used in operating activities was primarily driven by our net loss of $896,617; offset primarily by amortization expense, the increase in related party accrued expenses, the increase in accrued interest, and the increase in accounts payable and accrued expenses. For the six months ended June 30, 2023, cash used in operating activities was primarily driven by our net loss of $581,686; offset primarily by the amortization of debt discounts, the increase in related party accrued expenses, and the increase in related party accrued expenses.

Previous wording

Investing activities used net cash of $0 for the three months ended March 31, 2024, and 2023. Financing activities produced cash flows of $165,000 and $0 for the three months ended March 31, 2024, and 2023, respectively. We did not pay any cash for interest or for income taxes during the three months ended March 31, 2024 and 2023.

Current wording

Investing activities used net cash of $0 for the six months ended June 30, 2024, and 2023. Financing activities produced cash flows of $165,000 and $0 for the six months ended June 30, 2024, and 2023, respectively. We did not pay any cash for interest or for income taxes during the six months ended June 30, 2024 and 2023.

Previous wording

For the three months ended March 31, 2024, the Company incurred a net loss of $425,942, had negative cash flows from operations of $73,709 and may incur additional future losses. At March 31, 2024, the Company had total current assets of $370,925 and total current liabilities of $4,599,149, resulting in a working capital deficit of $4,228,224. These conditions raise substantial doubt about the Company’s ability to continue as a going concern for a period of time within one year after that date that the consolidated financial statements are issued.

Current wording

For the six months ended June 30, 2024, the Company incurred a net loss of $896,617, had negative cash flows from operations of $164,229 and may incur additional future losses. At June 30, 2024, the Company had total current assets of $280,405 and total current liabilities of $4,812,996, resulting in a working capital deficit of $4,532,591. These conditions raise substantial doubt about the Company’s ability to continue as a going concern for a period of time within one year after that date that the consolidated financial statements are issued.

Previous wording

The depreciation of equipment and is dependent upon estimates of useful lives and residual values, both of which are determined through the exercise of judgement. The assessment of any impairment of these assets is dependent upon estimates of recoverable amounts that consider factors such as economic/market conditions and the useful lives of assets.

Current wording

The depreciation of equipment is dependent upon estimates of useful lives and residual values, both of which are determined through the exercise of judgement. The assessment of any impairment of these assets is dependent upon estimates of recoverable amounts that consider factors such as economic/market conditions and the useful lives of assets.