Forward Looking Statement Notice
Certain statements made in this Quarterly Report on Form 10-Q are "forward-looking statements" (within the meaning of the Private Securities Litigation Reform Act of 1995) regarding the plans and objectives of management for future operations. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of AXIM Biotechnologies, Inc. ("we", "us", "our" or the "Company") to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements included herein are based on current expectations that involve numerous risks and uncertainties. The Company's plans and objectives are based, in part, on assumptions involving the continued expansion of business. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Although the Company believes its assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance the forward-looking statements included in this Quarterly Report will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.
Description of Business
We were incorporated in the
Going forward, the Company's board of directors intends to broaden the current operations of the Company to include pharmaceutical products, manufacturing facilities, genetically controlled botanical products, extraction and purification of biomaterials technologies. These activities are anticipated to include the following:
- Supporting a clinical trial at the
delivery form of cannabinoids for treatment of pain and
spasticity in patients with multiple sclerosis. The
anticipated duration of the trials prior to
registration is 24 months.
- Conducting research trials of a novel delivery mechanism
(patent pending) for treatment of patients with ADHD.
- Development of novel pharmaceutical and nutriceutical
formulations including smoking cessation, cannabinoid
- Contracting with
of intellectual property for extraction, concentration and
freeze-drying technology of active pharmaceutical
ingredients based on cannabinoids. The anticipated
duration of the trials is 4 months.
- A land purchase in the city of Almere, in
the province of Flevoland,
a state of the art extraction facility as well as a
factory for pharmaceutical and nutriceutical
- Importation from
producers of pharmaceutical grade hemp oil to
- Acquisition of a phytopharmaceutical company with
extensive list of IP (intellectual property) from
- Development of sustainable biofuel compositions derived
from industrial hemp by-products.
During the next twelve months we anticipate incurring costs related to:
(i) filing Exchange Act reports, and (ii) contractual obligations
We believe we will be able to meet these costs through use of funds in our treasury, through deferral of fees by certain service providers and additional amounts, as necessary, to be loaned to or invested in us by our stockholders, management or other investors. As of the date of the period covered by this report, we have limited cash. There are no assurances that we will be able to secure any additional funding as needed. Currently, however our ability to continue as a going concern is dependent upon our ability to generate future profitable operations and/or to obtain the necessary financing to meet our obligations and repay our liabilities arising from normal business operations when they come due. Management's plan includes obtaining additional funds by equity financing and/or related party advances; however there is no assurance of additional funding being available.
We are in our early stages of development and growth, without established records of sales or earnings. We will be subject to numerous risks inherent in the business and operations of financially unstable and early stage or potential emerging growth companies.
Liquidity and Capital Resources
With the exception of establishing joint venture operations with Alpha, our cash requirements for the next twelve months are
Other consulting fees 12,000 Audit and accounting 10,000 Miscellaneous 4,000 Total
We estimate that our audit and accounting costs to be
We can provide no assurance that the Company can continue to satisfy its cash requirements for at least the next twelve months.
We expect to obtain financing through shareholder loans and private placements. Shareholder loans will be without stated terms of repayment or interest. We will not consider taking on any long-term or short-term debt from financial institutions in the immediate future. Shareholders loans may be granted from time to time as required to meet current working capital needs. We have no formal agreement that ensures that we will receive such loans. We may exhaust this source of funding at any time.
We are dependent upon certain related parties to provide continued funding and capital resources. If continued funding and capital resources are unavailable at reasonable terms, we may not be able to implement our plan of operations. These loans may include terms that may be highly dilutive to existing shareholders
Sources of Capital:
We expect to sustain our working capital needs through shareholder loans and private placements. Shareholder loans will be without stated terms of repayment or interest. We will not consider taking on any long-term or short-term debt from financial institutions in the immediate future. Shareholders loans may be granted from time to time as required to meet current working capital needs. We have no formal agreement that ensures that we will receive such loans. We may exhaust this source of funding at any time.
Results of Operations
Comparison of the six months and three months ended
For the six month periods ended
Our expenses for the six periods ending
Six month Six Month Period Ended Period Ended June 30, June 30, 2014 2013 Legal& Other fees 2,597
$ 22,581Audit 0 6,450 Filing fees 4,862 2,250 Office 231 7,761 Amortization 1,593 5,000 Rent 0 900 Royalty fees 0 450 Allowance for bad debts 1,000 7,500 Impairment 52,103 0 Total $ 62,386 $ 57,278
For the three month period ended
For the three month periods ended
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 is material to investors.
As a "smaller reporting company" as defined by Item 10 of Regulation S-K, the Company is not required to provide this information.