What changed in this filing

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Item 1A. Risk Factors

2020-12-15 compared with 2020-09-11 · 28 added, 20 removed, 38 unchanged (56% of the section changed)

11 unchanged sentences

suspended our product development operations.

Our business is the development of transdermal

systems for the delivery of pharmaceuticals.

The development of pharmaceutical products is highly cash intensive, and many early

stage drug development companies are unable to raise sufficient cash to complete the development and testing of their products

and obtain regulatory approval, with the result that they either obtain funding on very unfavorable terms, cease to conduct business

or sell or license their intellectual property on unfavorable terms.

At January 31, 2020, we had a working capital deficiency of

approximately $1.9 million, and cash of approximately $10,000.

Because of our lack of cash and the absence of any significant financing,

we have suspended our development activities relating to our transdermal pharmaceutical products.

Because of the anticipated lack

of revenues until we have an approved product that we can market and the time required to obtain FDA approval, which can take many

years, we must rely on our ability to raise money in the private or public equity market or enter into a joint venture relationship

with a company that has the funds, the willingness and the ability to fund or obtain funds for the project that is the subject

of the joint venture.

In March 2020, we withdrew a registration statement relating to a proposed public offering.

If we are able

to raise funds or enter into a joint venture, it is likely that the term will not be favorable to us.

We cannot assure you that

we will be able to raise funds in a public or private financing or a joint venture, and, if we are unable to do so, we may cease

Our business is the development of transdermal systems for the

delivery of pharmaceuticals.

The development of pharmaceutical products is highly cash intensive, and many early stage drug development

companies are unable to raise sufficient cash to complete the development and testing of their products and obtain regulatory approval,

with the result that they either obtain funding on very unfavorable terms, cease to conduct business or sell or license their intellectual

property on unfavorable terms.

As of October 31, 2020, we had $193,392 in cash and cash equivalents and a working capital deficiency

of $2,230,240, as compared with cash and cash equivalents of $10,181 and working capital deficiency of $1,979,141 as of January

Because of the absence of any significant financing, we have suspended our development activities relating to our transdermal

pharmaceutical products.

Because of the anticipated lack of revenues until we have an approved product that we can market and the

time required to obtain FDA approval, which can take many years, we must rely on our ability to raise money in the private or public

equity market or enter into a joint venture relationship with a company that has the funds, the willingness and the ability to

fund or obtain funds for the project that is the subject of the joint venture.

In March 2020, we withdrew a registration statement

relating to a proposed public offering.

If we are able to raise funds or enter into a joint venture, it is likely that the term

will not be favorable to us.

We cannot assure you that we will be able to raise funds in a public or private financing or a joint

venture, and, if we are unable to do so, we may cease operations.

We are dependent on obtaining additional

financing to enable us to pay off debt and to resume our product development operations.

Our continued operations are substantially

dependent on our ability to obtain additional financing to pay off substantial debt incurred in our August 31, 2020 acquisition

of Pocono Coated Products, LLC and to provide us with the ability to resume product development operations and continue to finance

our current operations and generate growth in our revenues.

Our business is impacted by the following

24 unchanged sentences

Best Choice or any other international distributor of our products may not be able to obtain any necessary regulatory approval necessary to market our product or, if they are able to obtain regulatory approval, they may not be successful in marketing our products;

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Not applicable.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1A. Risk Factors