Mycotopia Therapies Inc
For the period ended Sep 30, 2024. Filed Nov 14, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 14, 2024
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-19.
0001096906-24-001763
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-14.
0001096906-24-002137
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 49 previous paragraphs and 53 current paragraphs.
34 unchanged; 14 reworded; 5 added; 1 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 1 previous and 1 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
The Company has evaluated subsequent events from September 30, 2024 through the issuance date of these financial statements, and there are no events requiring disclosure other than those described below:
Current report
Subsequent to September 30, 2024, the Company issued 200,000 shares of Series B Preferred Stock to the seller as satisfaction of the consideration owed to Philon Labs for the acquisition of intangible assets (Note 4 – Assets Acquisition).
Current report
On November 6, 2024, the Company issued 254,642 shares of common stock to a consultant as consideration for services rendered for the Company.
Current report
On November 6, 2024, the Company issued 254,642 shares of common stock to a consultant as consideration for services agreed to under a professional services agreement.
Current report
Nine Months Ended September 30, 2024 as Compared to the Nine Months Ended September 30, 2023
Removed paragraphs (1)
Previous report
Six Months Ended June 30, 2024 as Compared to the Six Months Ended June 30, 2023
Reworded paragraphs (14)
Previous 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).
Current wording
Operating expenses for the three months ended September 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 September 30, 2024 compared to the three months ended September 30, 2023 our general and administrative expense increased by $219,836, or 133%, from $165,421 to $385,257. 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 ($167,883), increased product development costs ($70,700). The increase was offset by decreased legal and professional expenses ($23,472).
Previous 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.
Current wording
For the three months ended September 30, 2024 compared to the three months ended September 30, 2023 our interest expense decreased by $68,392, or 48%, from $143,279 to $74,887. The decrease primarily resulted from $113,664 less in debt discount amortization from the Company’s convertible notes partially offset by $44,495 of additional interest expense accrued during the third quarter of 2024 due to the default interest on the Company’s convertible note payables in default.
Previous wording
For the three months ended June 30, 2024 and 2023 we had a net loss of $470,675 and $278,682, respectively.
Current wording
For the three months ended September 30, 2024 and 2023 we had a net loss of $460,144 and $308,700, respectively.
Previous wording
We did not have any revenue or cost of revenue from operations for the six months ended June 30, 2024 and 2023.
Current wording
We did not have any revenue or cost of revenue from operations for the nine months ended September 30, 2024 and 2023.
Previous wording
Operating expenses for the six 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 six months ended June 30, 2024 compared to the six months ended June 30, 2023 our general and administrative expense increased by $489,918, or 187%, from $262,364 to $752,282. 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 ($332,117), increased product development costs ($107,285), and increased legal expenses ($29,903).
Current wording
Operating expenses for the nine months ended September 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 nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 our general and administrative expense increased by $709,754, or 166%, from $427,785 to $1,137,539. The increase in general and administrative expenses was mainly as a result of increased amortization expense from the intangible assets acquired by the Company in the fourth quarter of 2023 ($500,000), increased product development costs ($177,985), increased legal expenses ($6,930), increased stock based compensation ($6,547) and increased stock transfer fees ($5,204).
Previous wording
Other expense for the six months ended June 30, 2024 and 2023 was composed of interest expense.
Current wording
Other expense for the nine months ended September 30, 2024 and 2023 was composed of interest expense.
Previous wording
For the six months ended June 30, 2024 compared to the six months ended June 30, 2023 our interest expense decreased by $174,987, or 55%, from $319,322 to $144,335. The decrease was primarily resulted from $263,390 less in debt discount amortization from the Company’s convertible notes partially offset by $79,373 of additional interest expense accrued during the first half of 2024 due to the default interest on the Company’s convertible note payables in default.
Current wording
For the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 our interest expense decreased by $243,379, or 53%, from $462,601 to $219,222. The decrease was primarily a result from $377,054 less in debt discount amortization from the Company’s convertible notes partially offset by $123,868 of additional interest expense due to the default interest on the Company’s convertible note payables in default.
Previous wording
For the six months ended June 30, 2024 and 2023 we had a net loss of $896,617 and $581,686, respectively.
Current wording
For the nine months ended September 30, 2024 and 2023 we had a net loss of $1,356,761 and $890,386, 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 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.
Current wording
Liquidity is the ability of an enterprise to generate adequate amounts of cash to meet its needs for cash requirements. As of September 30, 2024, we had $202,358 in cash and cash equivalents compared to $279,134 at December 31, 2023, a decrease of $76,776 resulting primarily from cash used in our operations. As of September 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 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.
Current wording
As of September 30, 2024, we had a working capital deficiency of $4,798,602 down from a working capital deficiency of $3,968,589 as of December 31, 2023. At September 30, 2024 our current assets were $203,058 and consisted almost entirely of cash. At September 30, 2024 our current liabilities were $5,001,660 and consisted predominantly of related party accrued expenses, convertible notes payable, and shares to be issued. We had an accumulated deficit of $10,317,742 as of September 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 $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.
Current wording
Our monthly operating costs averaged approximately $27,000 per month for the nine months ended September 30, 2024, excluding capital expenditures. We did not have capital expenditures during the nine months ended September 30, 2024. We plan to fund our operations with our cash on hand and additional financing.
Previous 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.
Current wording
Operating activities used net cash of $241,776 for the nine months ended September 30, 2024, as compared to using net cash of $68,914 for the nine months ended September 30, 2023. For the nine months ended September 30, 2024, cash used in operating activities was primarily driven by our net loss of $1,356,761; 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 nine months ended September 30, 2023, cash used in operating activities was primarily driven by our net loss of $890,386; offset primarily by the amortization of debt discounts, and the increase in related party and non-related party accrued expenses.
Previous 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.
Current wording
Investing activities used net cash of $0 for the nine months ended September 30, 2024, and 2023. Financing activities produced cash flows of $165,000 and $0 for the nine months ended September 30, 2024, and 2023, respectively. We did not pay any cash for interest or for income taxes during the nine months ended September 30, 2024 and 2023.
Previous 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.
Current wording
For the nine months ended September 30, 2024, the Company incurred a net loss of $1,356,761, had negative cash flows from operations of $241,776 and may incur additional future losses. At September 30, 2024, the Company had total current assets of $203,058 and total current liabilities of $5,001,660, resulting in a working capital deficit of $4,798,602. 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.