NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
September 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 September 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 September 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 September 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
September 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 September
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
$265,859, an accumulated deficit of $32,329,649, and a
stockholders' deficit of $265,859 as of September 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 produce 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 six months ended September 30, 2017, the Company received a net
loan from a related party in the amount of $11,460. At September
30, 2017 and March 31, 2017, the Company owed $79,567 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 six months ended September 30, 2017 and 2016 was
$20,000 and $20,000, 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 six months ended September
30, 2017 and 2016 were $12,000 and $12,000, respectively and is
included in general and administrative expense in the accompanying
statements of operations. As of September 30, 2017 and March 31,
2017, the remaining balance in the accrued liabilities-related
party account for the above services was $180,000 and $148,000,
respectively.
KYTO BIOPHARMA, INC.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
September 30, 2017
NOTE 6
–
EQUITY
As of
September 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 September 30, 2017 and March 31, 2017, 3,139,747 shares of
the Company’s common stock were issued and
outstanding.
NOTE 7 SUBSEQUENT EVENTS
On November 6, 2017 the Company announced that it is offering up to
2 million of its Common Shares to Accredited Investors as a
non-brokered Private Placement (''Private Placement'') to be
completed on or before December 20, 2017.
Upon completion of the Minimum Offering of the Private Placement,
KBPH will file an S-8 Registration Statement with the SEC to offer
to the new elected President & CEO, an option to purchase
2,697,085 Common Shares of KBPH. Debt owed to principal shareholder
will be converted to 322,026 common shares. Upon completion of the
Maximum Offering of the Private Placement and after issuance of
Common Shares under the S-8 Registration Statement Kyto BioPharma
will have 8,158,858 common shares issued and
outstanding.
In conjunction with the closing of the Private Placement, KBPH will
change its name to Kyto Technology and Life Science, Inc. The
symbol, KBPH, will be changed to a symbol as agreed to by
OTCQB.
In conjunction with the closing of the Private Placement, there
will be a change to the Officers and Directors of KPBH. The
officers and directors of KBPH at closing of the Private Placement
will be as follows: