Sunshine Biopharma Inc.

Previous wording

We are a pharmaceutical company offering and researching life-saving medicines in a wide variety of therapeutic areas, including oncology and antivirals. We have two wholly owned subsidiaries: (i) Nora Pharma Inc. (“Nora Pharma”), a Canadian corporation, through which we currently have 70 generic prescription drugs on the market in Canada, and (ii) Sunshine Biopharma Canada Inc. (“Sunshine Canada”), a Canadian corporation through which we develop and sell OTC supplements.

Current wording

We are a pharmaceutical company offering and researching life-saving medicines in a wide variety of therapeutic areas, including oncology and antivirals. We have two wholly owned subsidiaries: (i) Nora Pharma Inc. (“Nora Pharma”), a Canadian corporation, through which we currently have 74 generic prescription drugs on the market in Canada, and (ii) Sunshine Biopharma Canada Inc. (“Sunshine Canada”), a Canadian corporation through which we develop and sell OTC supplements.

Previous wording

Generic drugs are pharmaceutically equivalent to the brand name drugs. They contain identical medicinal ingredients in the same amounts as the brands. Generic medications, however, may have different non-medicinal ingredients than the brand name drugs, but the generic developer must show that these do not affect the safety, efficacy, or quality of the drug compared to the brand. When a generic drugs company wants to sell a generic drug in Canada, it must file a generic drug submission with Health Canada. The submission is called an Abbreviated New Drug Submission (ANDS). The submission is reviewed by scientists and health care experts at Health Products and Food Branch (HPFB) of Health Canada. All generic drug submissions go through the same process as the brand name drug submissions. If the evaluation shows that the generic drug meets all regulatory requirements (including patent and data protection considerations), Health Canada will issue a Notice of Compliance (NOC) and a Drug Identification Number (DIN) to the applicant. The NOC and DIN signal the drug's official approval in Canada and permit the applicant to market the drug in Canada. Once a company obtains the NOC and DIN for a drug, then it begins the process with Pan-Canadian Pharmaceutical Alliance (pCPA) in order to have the drug listed on the provincial and territorial formularies and federal government drug benefit plans.

Current wording

Generic drugs are pharmaceutically equivalent to the brand name drugs. They contain identical medicinal ingredients in the same amounts as the brands. Generic medications may have different non-medicinal ingredients than the brand name drugs, but the generic developer must show that these do not affect the safety, efficacy, or quality of the drug compared to the brand. When a generic drug company wants to sell a generic drug in Canada, it must file a generic drug submission with Health Canada. The submission is called an Abbreviated New Drug Submission (ANDS). The submission is reviewed by scientists and health care experts at Health Products and Food Branch (HPFB) of Health Canada. All generic drug submissions go through the same process as the brand name drug submissions. If the evaluation shows that the generic drug meets all regulatory requirements (including patent and data protection considerations), Health Canada will issue a Notice of Compliance (NOC) and a Drug Identification Number (DIN) to the applicant. The NOC and DIN signal the drug's official approval in Canada and permit the applicant to market the drug in Canada. Once a company obtains the NOC and DIN for a drug, then it begins the process with Pan-Canadian Pharmaceutical Alliance (pCPA) in order to have the drug listed on the provincial and territorial formularies and federal government drug benefit plans.

Previous wording

In addition to the 70 drugs currently on the market, we have 64 additional drugs in our pipeline including 13 we anticipate launching during the remainder of 2025. These additional drugs will address various human health areas including cardiovascular, oncology, gastroenterology, central nervous system, diabetes, urology, endocrinology, anti-infective, and anti-inflammatory.

Current wording

In addition to the 74 drugs currently on the market, we have 17 additional drugs in our pipeline anticipated to be launched in 2026. These additional drugs will address various human health areas including cardiovascular, oncology, gastroenterology, central nervous system, diabetes, urology, endocrinology, anti-infective, and anti-inflammatory.

Previous wording

We believe the addition of these products to our existing portfolio will strengthen our presence in the Canadian $9.7 billion a year generic drugs market (Research and Markets) and provide us with greater access to pharmacies as we become more of a go-to supplier for every-day and specialty medicines.

Current wording

We believe the addition of these products to our existing portfolio will strengthen our presence in the Canadian $9.7 billion a year generic drug market (Research and Markets) and provide us with greater access to pharmacies as we become more of a go-to supplier for every-day and specialty medicines.

Previous wording

During the three months ended March 31, 2025, we generated $8,901,341 in sales, compared to $7,541,046 for the three months ended March 31, 2024, an increase of $1,360,295, or 18.0%. The increase is attributable to new product launches and expanded marketing and sales efforts. The direct cost for generating these sales was $6,170,915 (69.3%) for the three months ended March 31, 2025, compared to $5,186,709 (68.8%) for the three months ended March 31, 2024, largely unchanged. Our gross profit for the three months ended March 31, 2025 was $2,730,426, compared to $2,354,337 for the three months ended March 31, 2024, an increase of $376,089.

Current wording

During the three months ended June 30, 2025, we generated $9,410,230 in sales, compared to $9,303,067 for the three months ended June 30, 2024, largely unchanged. The direct cost for generating these sales was $5,987,364 (63.6%) for the three months ended June 30, 2025, compared to $6,946,810 (74.7%) for the three months ended June 30, 2024, a decrease of approximately 11% largely due to procurement of better cost of finished products. Our gross profit for the three months ended June 30, 2025 was $3,422,866, compared to $2,356,257 for the three months ended June 30, 2024, an increase of $1,066,609.

Previous wording

General and administrative expenses during the three-month period ended March 31, 2025, were $4,026,176, compared to $3,704,926 during the three-month period ended March 31, 2024, an increase of $321,250. This relatively small increase was the net result of increases and decreases in specific expense categories. For example, while consulting fees increased by $317,886 and marketing expenses increased by $200,315, there was a decrease in accounting fees of $58,247 and legal fees of $194,799. Overall, we incurred a loss of $1,295,750 from our operations for the three months ended March 31, 2025, compared to a loss of $1,350,589 from our operations in the three-month period ended March 31, 2024.

Current wording

General and administrative expenses during the three-month period ended June 30, 2025, were $5,477,521, compared to $3,624,533 during the three-month period ended June 30, 2024, an increase of $1,852,988. The significant increase was primarily attributable to a $1,061,809 impairment of intangible assets resulting from the determination that certain product licenses could not be commercialized. The other expense categories which contributed to this increase were consulting fees which increased by $682,679 due to fees paid in connection with warrant exercises and salaries, which increased by $492,500 due to new hiring. Overall, we incurred a loss of $2,054,655 from our operations for the three months ended June 30, 2025, compared to a loss of $1,268,276 from our operations in the three-month period ended June 30, 2024.

Previous wording

In addition, we had interest income of $75,367 during the three months ended March 31, 2025, compared to interest income of $144,089 during the three months ended March 31, 2024, as a result of having less cash on hand.

Current wording

We had interest income of $72,715 during the three months ended June 30, 2025, compared to interest income of $143,995 during the three months ended June 30, 2024, as a result of having less cash on hand.

Previous wording

As a result, we incurred a net loss of $1,179,771 ($0.44 per share) for the three months ended March 31, 2025, compared to a net loss of $1,283,801 ($2.00 per share) for the three-month period ended March 31, 2024.

Current wording

As a result of the foregoing, we incurred a net loss of $1,770,834 ($0.39 per share) for the three months ended June 30, 2025, compared to a net loss of $494,300 ($9.94 per share) for the three-month period ended June 30, 2024.

Previous wording

As of March 31, 2025, we had cash and cash equivalents of $8,124,610.

Current wording

As of June 30, 2025, we had cash and cash equivalents of $10,305,320.

Previous wording

Net cash used in operating activities was $1,713,835 during the three months ended March 31, 2025, compared to $3,185,158 during the three-month period ended March 31, 2024. The decrease was a result of reduced cash required for the operations of Nora Pharma.

Current wording

Net cash used in operating activities was $2,987,267 during the six months ended June 30, 2025, compared to $7,762,942 during the six-month period ended June 30, 2024. The decrease was a result of reduced cash required for the operations of Nora Pharma.

Previous wording

Cash flows used in investing activities were $176,024 for the three months ended March 31, 2025, compared to $668,736 for the three months ended March 31, 2024. The decrease was the result of less cash invested in Nora Pharma.

Current wording

Cash flows used in investing activities were $667,802 for the six months ended June 30, 2025, compared to $1,210,944 for the six months ended June 30, 2024. The decrease was the result of less cash invested in Nora Pharma.

Previous wording

Cash flows provided by financing activities were $338,137 during the three months ended March 31, 2025, compared to $5,398,149 during the three months ended March 31, 2024. The decrease was primarily as a result of no financing events completed during the three months ended March 31, 2025, compared to an offering yielding net proceeds of $8,522,411 completed during the three months ended March 31, 2024.

Current wording

Cash flows provided by financing activities were $3,948,372 during the six months ended June 30, 2025, compared to $5,369,566 during the six months ended June 30, 2024. The decrease was primarily as a result of a smaller financing event completed during the six months ended June 30, 2025, compared to an offering yielding net proceeds of $8,522,411 completed during the six months ended June 30, 2024.

Previous wording

We are currently generating revenue of approximately $8.9 million per quarter and incurring a quarterly deficit of approximately $1.2 million. In addition to increasing sales and streamlining operations to reduce expenses, we are currently focusing our attention on lowering our cost of goods sold from our current level of approximately 70% to possibly 60%. We believe these measures could bring us to breakeven and make us less dependent on the capital markets for financing. We believe our existing cash on hand together with cash we generate from sales will be sufficient to fund our operations for the next 24 months. There is no assurance our estimates will be accurate. We have no committed sources of capital and we anticipate that we will need to raise additional capital in the future, including for further research and development activities and possibly clinical trials, as well as expansion of our generic pharmaceuticals operations. Additional capital may not be available on terms acceptable to us, or at all.

Current wording

We are currently generating revenue of approximately $9.4 million per quarter and incurring a quarterly deficit of approximately $1.0 million (not including the one-time intangible assets impairment of $1,061,809 during the three months ended June 30, 2025). In addition to increasing sales and streamlining operations to reduce expenses, we are currently focusing our attention on lowering our cost of goods sold from our current level of approximately 65% to approximately 60%. We believe these measures could bring us to breakeven and make us less dependent on the capital markets for financing, although there can be no assurances that we will be successful in achieving these reductions. We believe our existing cash on hand together with cash we generate from sales will be sufficient to fund our operations for the next 24 months. There is no assurance our estimates will be accurate. We have no committed sources of capital and we anticipate that we will need to raise additional capital in the future, including for further research and development activities and possibly clinical trials, as well as expansion of our generic pharmaceuticals operations. Additional capital may not be available on terms acceptable to us, or at all.