NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
June 30, 2017
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 in
the development stage as it is in the process of looking at a
number of strategies to become active. Once it has settled on the
strategy, the Company will develop a plan for an acquisition and
the means to achieve its goal.
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 2017 include, the valuation allowance
of deferred tax assets.
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 June 30, 2017
and March 31, 2017, respectively.
CONCENTRATIONS
The Company maintains its cash in bank deposit accounts, which, at
times, may exceed federally insured limits. As of June 30, 2017,
the Company did not have any deposits in excess of federally
insured limits. The Company has not experienced any losses in such
accounts through June 30, 2017 and March 31, 2017,
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.
NET
LOSS PER COMMON SHARE
In
accordance with Statement of Financial Accounting Standards
Accounting Standard Codification Topic 260, "Earnings per Share",
basic earnings per share is computed by dividing the net income
less preferred dividends for the period by the weighted average
number of common shares outstanding. Diluted earnings per share is
computed by dividing net income less preferred dividends by the
weighted average number of common shares outstanding including the
effect of common stock equivalents. Common stock equivalents,
consisting of stock options and warrants, have not been included in
the calculation, as their effect is anti-dilutive for the periods
presented.
KYTO BIOPHARMA, INC.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
June 30, 2017
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, 2017 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 June 30,
2017, have been included. The results of operations for interim
periods are not necessarily indicative of the results for a full
year.
NOTE 3 – GOING CONCERN
As reflected in the accompanying unaudited condensed financial
statements, the Company has a working capital deficiency of
$245,076, a deficit accumulated of $32,308,866, and a stockholders'
deficit of $245,076 as of June 30, 2017. The ability of the Company
to continue as a going concern is dependent on the Company's
ability to devise a strategy and produces a business plan. 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)
– Loans
Payable- Related Party
During
the three months ended June 30, 2017, the Company received a net
loan from a related party in the amount of $8,014. At June 30, 2017
and March 31, 2017, the Company owed $76,121 and $68,107,
respectively to a related party 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 three months ended June 30, 2017 and 2016 was
$10,000 and $10,000, respectively and is included in general and
administrative expense in the accompanying statements of
operations.
Directors
fees are also included in Accrued liabilities – related
parties. Directors fees for the three months ended June 30, 2017
and 2016 was $6,000 and $6,000, respectively and is included in
general and administrative expense in the accompanying statements
of operations. As of June 30, 2017 and March 31, 2017, the
remaining balance in the accrued liabilities-related party account
for the above services was $164,000 and $148,000,
respectively.
KYTO BIOPHARMA, INC.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
June 30, 2017
NOTE 6
–
EQUITY
As of
June 30, 2017 and March 31, 2017, there are 2,000,000 shares
authorized and no preferred shares of the Company issued and
outstanding.
As of June 30, 2017 and March 31, 2017, 3,139,747 shares of the
Company’s common stock were issued and
outstanding.
NOTE 7
–
SUBSEQUENT EVENTS
Management evaluated all activities of the Company through the
issuance date of the Company's interim unaudited condensed
financial statements and concluded that no subsequent events have
occurred that would require adjustments or disclosure into the
interim unaudited condensed financial statements.
KYTO BIOPHARMA, INC.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
June 30, 2017