NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
September 30, 2016
NOTE 1 – DESCRIPTION OF BUSINESS AND BASIS OF
PRESENTATION
Kyto Biopharma, Inc. was formed as a Florida corporation on
March 5, 1999. On August 14, 2002, the Company changed
its name from B Twelve, Inc. to Kyto Biopharma, Inc.
The Company is a biopharmaceutical company, formed to acquire and
develop innovative minimally toxic and non-immunosuppressive
proprietary drugs for the treatment of cancer, arthritis, and other
proliferate and autoimmune diseases. The Company is currently not
in the development stage and was in “development stage”
till June 30, 2011.
Activities during the development stage include acquisition of
financing and intellectual properties and research and development
activities conducted by others under contracts.
USE OF ESTIMATES
In preparing financial statements, management is required to make
estimates and assumptions that affect the reported amounts of
assets and liabilities, disclosure of contingent assets and
liabilities at the date of the financial statements, and revenues
and expenses during the period presented. Actual results may differ
from these estimates.
Significant estimates during 2016 include depreciable lives on
equipment, valuation of intangible assets, the valuation allowance
of deferred tax assets, and the valuation of non-cash stock based
transactions.
CASH AND CASH EQUIVALENTS
The Company considers all highly liquid investments with original
maturities of three months or less at the time of purchase to be
cash equivalents. There were no cash equivalents at September 30,
2016 and March 31, 2016, respectively.
CONCENTRATIONS
The Company maintains its cash in bank deposit accounts, which, at
times, may exceed federally insured limits. As of September 30,
2016, the Company did not have any deposits in excess of federally
insured limits. The Company has not experienced any losses in such
accounts through September 30, 2016 and March 31, 2016,
respectively.
The Company has obtained and continues to obtain a large amount of
its funding from loans and equity funding from a principal
stockholder related to a director of the Company.
NOTE 2 – INTERIM REVIEW REPORTING
The
accompanying unaudited condensed financial statements of Kyto
Biopharma, Inc. (the "Company") have been prepared pursuant to the
rules and regulations of the Securities and Exchange Commission
(the "SEC). Certain information and footnote disclosures, normally
included in financial statements prepared in accordance with
accounting principles generally accepted in the United States of
America have been condensed or omitted pursuant to such SEC rules
and regulations. Nevertheless, the Company believes that the
disclosures are adequate to make the information presented not
misleading. These interim unaudited condensed financial statements
should be read in conjunction with the audited financial statements
and notes thereto included in the Company's March 31, 2016 Annual
Report as filed on Form 10K. In the opinion of management, all
adjustments, including normal recurring adjustments necessary to
present fairly the financial position of the Company with respect
to the interim unaudited condensed financial statements and the
results of its operations for the interim period ended September
30, 2016, have been included. The results of operations for interim
periods are not necessarily indicative of the results for a full
year.
KYTO BIOPHARMA, INC.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
September 30, 2016
NOTE 3 – GOING CONCERN
As reflected in the accompanying unaudited condensed financial
statements, the Company has a working capital deficiency of
$171,256, a deficit accumulated of $32,235,046, and a stockholders'
deficit of $171,256 as of September 30, 2016. The ability of the
Company to continue as a going concern is dependent on the
Company's ability to further implement its business plan, raise
capital, and generate revenues. The unaudited condensed financial
statements do not include any adjustments that might be necessary
if the Company is unable to continue as a going
concern.
The Company has yet to generate an internal cash flow, and until
the sales of its product begins, the Company is highly dependent
upon debt and equity funding. The Company must successfully
complete its research and development resulting in a saleable
product. However, there is no assurance that once the development
of the product is completed and finally gains Federal Drug and
Administration clearance, that the Company will achieve a
profitable level of operations.
NOTE
4 - ACCOUNTING STANDARDS UPDATES
Significant
Recent Accounting Pronouncements
Management
does not believe that any recently issued, but not yet effective,
accounting standards if currently adopted would have a material
effect on the accompanying unaudited condensed financial
statements.
NOTE 5 –RELATED PARTY TRANSACTIONS
(A)
– Loan
Payable- Related Party
During
the quarter ended September 30, 2016, the company received a net
loan from a related party in the amount of $14,214. At September
30, 2016 and March 31, 2016 the Company owed $49,946 and $35,732
respectively to related parties of the Company. The loans are
non-interest bearing, unsecured and due on demand. The loans are
included in loans payable, related party on the accompanying
balance sheet.
(B)
– Accrued
liabilities -Related Party
The
Company leases office space and administrative services from a
related party principal stockholder. Rent and administrative
expense for the six months ended September 30, 2016 and 2015, was
$20,000, and $20.000, respectively and is included in general and
administrative expense in the accompanying statements of
operations. As of September 30, 2016 and March 31, 2016, the
remaining balance in the accrued liabilities-related party account
for the above services was $80,000 and $60,000,
respectively.
NOTE 6
–
EQUITY
(A)
–
Convertible Preferred
Stock.
On May
24 2007, the Company entered into an agreement with Comindus
Finance Corp. a related party, to issue up to 500,000 convertible
preferred shares at $1.00 per share. This agreement is on an
installment basis. During the year ended March 31, 2008 the Company
issued 473,624 shares of convertible preferred stock to Comindus
Finance Corp. for a total of $473,624 to satisfy the related party
loan payable. Convertible preferred stock may be converted into
common shares at the rate of $0.45 per common share. Convertible
preferred stock bears dividend at a rate of five percent per annum.
Preferred convertible stock has the same voting rights as common
stock. On September 12, 2014, the convertible stocks were converted
to common stock at a price of $0.05 per share. As of September 30,
2016 and March 31, 2016, there are no preferred shares of the
Company issued and outstanding.
As of September 30, 2016 and March 31, 2016, 3,139,747 shares of
the Company’s common stock were issued and
outstanding.
NOTE
7- SUBSEQUENT EVENT
Management
evaluated all activities of the Company through the issuance date
of the Company's interim unaudited condensed consolidated financial
statements and concluded that no subsequent events have occurred
that would require adjustments or disclosure into the interim
unaudited condensed consolidated financial
statements.
KYTO BIOPHARMA, INC.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
September 30, 2016