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Item 2. Management’s Discussion and Analysis

2025-11-13 compared with 2025-08-13 · 82 added, 78 removed, 94 unchanged (63% of the section changed)

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

MANAGEMENT’S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Unless the context requires otherwise, references

1 unchanged sentence

to ProtoKinetix, Incorporated.

The following discussion provides information regarding

the results of operations for the six-month period ended June 30, 2025 and 2024, and our financial condition, liquidity and capital resources

as of June 30, 2025 and December 31, 2024.

The financial statements and the notes thereto contain detailed information that should

be referred to in conjunction with this discussion.

The following discussion provides information

regarding the results of operations for the nine-month period ended September 30, 2025 and 2024, and our financial condition, liquidity

and capital resources as of September 30, 2025 and December 31, 2024.

The financial statements and the notes thereto contain detailed

information that should be referred to in conjunction with this discussion.

Cautionary Note Regarding Forward-Looking

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Our common stock’s limited trading history.

Finally, our future results will depend upon

various other risks and uncertainties, including, but not limited to, those detailed in our filings with the SEC under the Exchange Act

and the Securities Act, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and our Quarterly Report

on Form 10-Q for the period ended June 30, 2025.

All forward-looking statements attributable to us or persons acting on our behalf

are expressly qualified in their entirety by the cautionary statements in this paragraph and elsewhere in this Quarterly Report.

than as required under securities laws, we do not assume a duty to update these forward-looking statements, whether as a result of new

information, subsequent events or circumstances, changes in expectations or otherwise

Finally, our future results will depend

upon various other risks and uncertainties, including, but not limited to, those detailed in our filings with the SEC under the Exchange

Act and the Securities Act, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and our Quarterly Report

on Form 10-Q for the period ended September 30, 2025.

All forward-looking statements attributable to us or persons acting on our

behalf are expressly qualified in their entirety by the cautionary statements in this paragraph and elsewhere in this Quarterly Report.

Other than as required under securities laws, we do not assume a duty to update these forward-looking statements, whether as a result

of new information, subsequent events or circumstances, changes in expectations or otherwise

Business Overview

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Following the table, please see management’s discussion of significant changes.

For the Six Months Ended

For the Nine Months Ended

September 30,

General and Administrative

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Research and Development

Share-Based Compensation

Net loss for the period

Gross Profit and Expenses

The Company’s net loss was $188,757 for the

six-month period ended June 30, 2025 compared to $177,103 for the six-month period ended June 30, 2024.

The expenses were primarily

incurred for professional fees, consulting services related to the operations of the Company’s business, research and development

and other general and administrative expenses.

Significant changes from the prior six-month period ended June 30, 2025 include:

General and administrative fees remained almost flat

with a small increase of $1,517 from $27,335 to $28,852.

The Company’s net loss was $273,663 for

the nine-month period ended September 30, 2025 compared to $261,676 for the nine-month period ended September 30, 2024.

were primarily incurred for professional fees, consulting services related to the operations of the Company’s business, research

and development and other general and administrative expenses.

Significant changes from the prior nine-month period ended September

30, 2025 include:

General and administrative fees remained almost

flat with a small increase of $1,501 from $43,589 to $45,090.

There are no current year marketing projects planned that will significantly

2 unchanged sentences

Professional fees increased by $9,344 from $98,647

to $76,149 due to increases in auditing fees and legal billing associated with year end reporting.

Research and development expenditures slightly increased

year over year with a change of $583 from $57,625 to $58,208 as the Company paid for molecule storage and consulting fees.

continues to pursue research partners for cost sharing and engages institutes with grants available for continued studies on our patented

AAGP molecule.

to $107,991 due to increases in auditing fees and legal billing associated with year- end and interim reporting.

Research and development expenditures increased

year over year with a change of $3,768 from $78,625 to $82,393 as the Company paid for molecule storage and consulting fees but has no

current research projects underway.

The company continues to pursue research partners for cost sharing and engages in institutes with

grants available for continued studies on our patented AAGP molecule.

Share-based compensation was $Nil for current

year compared to $1,354 for the nine months ended September 2024.

Liquidity and Capital Resources

The following summarizes our balance sheet at June 30, 2025 and December

June 30, 2025

The following summarizes our balance sheet at September 30, 2025 and

December 31, 2024:

December 31, 2024

Working Capital

At June 30, 2025, we had $112 in cash and $1,162 in

total current assets and a negative working capital equity position of $(147,922).

Based upon our

working capital equity as of June 30, 2025, we will require additional equity and/or debt financing in order to meet cash flow projections

and carry forward our business objectives.

There can be no assurance that in the future we will

be able to raise capital from outside sources in sufficient amounts to fund our new business.

The failure to secure adequate outside funding

would have an adverse effect on our plan of operation and results therefrom and a corresponding negative impact on stockholder liquidity.

At September 30, 2025, we had $607 in cash and

$1,657 in total current assets and a negative working capital equity position of $(225,539).

upon our working capital equity as of September 30, 2025, we will require additional equity and/or debt financing in order to meet cash

flow projections and carry forward our business objectives.

There can be no assurance that in the future we

will be able to raise capital from outside sources in sufficient amounts to fund our new business.

The failure to secure adequate outside

funding would have an adverse effect on our plan of operation and results therefrom and a corresponding negative impact on stockholder

Sources and Uses of Cash

Net Cash Used in Operating Activities

Net cash used in operating activities remained flat,

changing by $6,664 from $138,691 to $132,027 for the six-months ended June 30, 2024, and 2025, respectively.

With the year over year

change primarily from a change in accounts payable.

Net cash used in operating activities fell by

$41,873 from $177,808 to $135,935 for the nine-months ended September 30, 2024, and 2025, respectively.

With the year over year change

primarily from a change in accounts payable.

Net Cash Used in Investing Activities

Net cash used in investing activities was $30,664

for the six-month period ended June 30, 2025 while the Company had net cash used in investing activities of $35,517 for the comparative

The difference is attributable to a year-to-date decrease in patent application billings for current year.

Net cash used for investing activities was $36,261

for the nine-month period ended September 30, 2025 while the Company had net cash used for investing activities of $52,910 for the comparative

The difference is attributable to a year-to-date fluctuation in patent application billings for current year.

Net Cash Provided by Financing Activities

Net cash provided by financing activities fell

from $255,000 to $167,500 for the six-months ended June 30, 2024, and 2025, respectively.

The decrease of funding from private placements

through the first half of 2025 reflects investor support for our slowing of operations and focus on finding financial partners for further

research and development.

$38,500 from $216,000 to $177,500 for the nine-months ended September 30, 2024, and 2025, respectively.

The decrease of funding from private

placements through the third quarter of 2025 reflects investor support for our slowing of operations and focus on finding financial partners

for further research and development.

Going Concern

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Note 2 to the Financial Statements included in this Form 10-Q.

While all of the significant accounting policies are

important to the Company’s financial statements, the following accounting policies and the estimates derived there from have been

identified as being critical.

While all of the significant accounting policies

are important to the Company’s financial statements, the following accounting policies and the estimates derived there from have

been identified as being critical.

Share-Based Compensation

The Company has granted warrants and options to purchase

shares of the Company’s common stock to various parties for consulting services.

The fair values of the warrants and options

issued have been estimated using the Black-Scholes Option Pricing Model.

The Company accounts for stock compensation with persons

classified as employees for accounting purposes in accordance with ASC 718 “Compensation – Stock Compensation”, which

recognizes awards at fair value on the date of grant and recognition of compensation over the service period for awards expected to vest.

Vesting is used and awards vest on the last day of the vesting period.

The fair value of stock options is determined using the Black-Scholes

Option Pricing Model.

The fair value of common shares issued for services is determined based on the Company’s stock price on the

date of issuance.

Share-based compensation for non-employees in exchange

for goods and services used or consumed in an entity’s own operations are also recorded at fair value on the measurement date and

accounted for in accordance with ASC 718.

The measurement of share-based compensation is subject to periodic adjustment as the underlying

instruments vest.

The fair value of stock options is estimated using the Black-Scholes Option Pricing Model and the compensation charges

are amortized over the vesting period.

The Company has granted warrants and options to

purchase shares of the Company’s common stock to various parties for consulting services.

The fair values of the warrants

and options issued have been estimated using the Black-Scholes Option Pricing Model.

The Company accounts for stock compensation with

persons classified as employees for accounting purposes in accordance with ASC 718 “Compensation – Stock Compensation”,

which recognizes awards at fair value on the date of grant and recognition of compensation over the service period for awards expected

Cliff Vesting is used and awards vest on the last day of the vesting period.

The fair value of stock options is determined

using the Black-Scholes Option Pricing Model.

The fair value of common shares issued for services is determined based on the Company’s

stock price on the date of issuance.

Share-based compensation for non-employees in

exchange for goods and services used or consumed in an entity’s own operations are also recorded at fair value on the measurement

date and accounted for in accordance with ASC 718.

The measurement of share-based compensation is subject to periodic adjustment as the

underlying instruments vest.

The fair value of stock options is estimated using the Black-Scholes Option Pricing Model and the compensation

charges are amortized over the vesting period.

Sales and Marketing

The Company is currently not selling or marketing any products.

Although management expects that our operations will

be influenced by general economic conditions, we do not believe that inflation had a material effect on our results of operations during

the three months ended June 30, 2025.

Although management expects that our operations

will be influenced by general economic conditions, we do not believe that inflation had a material effect on our results of operations

during the nine months ended September 30, 2025.

Quantitative and Qualitative Disclosure

About Market Risk

As a “smaller reporting company” as defined

by Item 10 of Regulation S-K, we are not required to provide information required by this item.

As a “smaller reporting company” as

defined by Item 10 of Regulation S-K, we are not required to provide information required by this item.

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 2. Management’s Discussion and Analysis