What changed in this filing

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Item 1. Financial Statements

2017-09-13 compared with 2017-09-13 · 105 added, 103 removed, 754 unchanged (22% of the section changed)

Consolidated Balance Sheets as of June 30, 2017 (unaudited) and

Consolidated Balance Sheets as of March 31, 2017 (unaudited) and

September 30, 2016

Consolidated Statements of Operations for the Three and Nine Months

Ended June 30, 2017 and 2016 (unaudited)

Consolidated Statements of Cash Flows for the Nine Months Ended

June 30, 2017 and 2016 (unaudited)

Consolidated Statements of Operations for the Three and Six Months

Ended March 31, 2017 and 2016 (unaudited)

Consolidated Statements of Cash Flows for the Six Months Ended

March 31, 2017 and 2016 (unaudited)

to Condensed Consolidated Financial Statements

14 unchanged sentences

$ 1,304  

   Prepaid

     Total

2 unchanged sentences

$ 21,095  

$ 1,304  

and stockholders' deficit

21 unchanged sentences

stock, $0.0001 par value, 325,000,000 shares authorized, 78,363,562

shares issued and outstanding, as of June 30, 2017 and September

shares issued and outstanding, as of March 31, 2017 and September

paid in capital

10 unchanged sentences

Three Months Ended

Nine Months Ended

Six Months Ended

and administrative

5 unchanged sentences

15,628  

18,974  

based compensation

operating expenses

14,037  

21,350  

income (loss)

1,486,519  

income expenses

   Interest

   Change

1,101,461  

in fair value of convertible debt

2 unchanged sentences

1,486,519  

from operations of discontinued Canna-Pet component (gain on

disposal of $80,903 for the nine months ended June 30,

1,101,461  

from operations of discontinued Canna-Pet component

74,706  

income (loss)

$ 1,490,125  

$ 1,176,167  

share information:

   Basic

weighted average shares outstanding

   Weighted

average shares outstanding

78,363,562  

16 unchanged sentences

$ 0.00  

accompanying footnotes are an integral part of these condensed

consolidated financial statements.

The accompanying

footnotes are an integral part of these condensed consolidated

financial statements.

PEAK PHARMACEUTICALS, INC.

28 unchanged sentences

change in cash

19,791  

beginning of period

64 unchanged sentences

financial instruments consist of cash, convertible notes payable,

derivative liability, and accounts payable.

The carrying values of

these instruments approximate fair value due to the short-term

maturities of these instruments.

and accounts payable.

The carrying values of these instruments

approximate fair value due to the short-term maturities of these

Fair Value Measurements

55 unchanged sentences

common stock equivalents outstanding for the period in the

For the three and nine months ended June 30, 2017, any

equivalents would have been anti-dilutive as we had a loss for the

period then ended.

For the three and six months ended March 31, 2016, any

equivalents would have been anti-dilutive as we had losses for the

periods then ended.

Recent Pronouncements

11 unchanged sentences

Financial Statements-Going Concern (Sub Topic 205-40) issued

August 27, 2014 by FASB defines managements responsibility to

August 27, 2014 by FASB defines management's responsibility to

evaluate whether there is a substantial doubt about an

66 unchanged sentences

net losses since inception and have an accumulated deficit of

$5,031,844 as of June 30, 2017.

This condition raises substantial

$5,017,210 as of March 31, 2017 This condition raises substantial

doubt as to our ability to continue as a going concern.

52 unchanged sentences

subject to a floor of $0.01.

accrued interest on the above notes was $634 as of June 30, 2017

accrued interest on the above notes was $36 as of March 31, 2017

and is reflected in accrued expenses on the accompanying balance

4 unchanged sentences

no preferred or common stock transactions during the three and

nine-month periods ended June 30, 2017 and 2016

six-month periods ended March 31, 2017 and 2016

NOTE 6 –

following is a summary of outstanding stock options issued to

employees and directors as of June 30, 2017:

employees and directors as of March 31, 2017:

of Options

5 unchanged sentences

June 30, 2017 and September 30, 2016

March 31, 2017 and September 30, 2016

2,916,000 

3 unchanged sentences

following is a summary of outstanding stock options issued to

non-employees, excluding directors, as of June 30,

non-employees, excluding directors, as of March 31,

of Options

June 30, 2017, September 30, 2016 and October 1, 2015

March 31, 2017, September 30, 2016 and October 1, 2015

375,000 

2 unchanged sentences

equity based compensation for the three months ended June 30, 2017

equity based compensation for the three months ended March 31, 2017

and 2016 was $0 and ($1,576,484) respectively.

Total equity based

compensation for the nine months ended June 30, 2017 and 2016 was

compensation for the six months ended March 31, 2016 and 2015 was

$0 and ($1,296,431), respectively.

198 unchanged sentences

Recent Corporate Developments

nine months ended June 30, 2017, our company has received two

six months ended March 31, 2017, our company has received two

convertible promissory notes from unrelated third parties.

11 unchanged sentences

Loan with Trius Holdings Limited

March 17, 2017, we entered into an agreement with Trius Holdings

On March 17, 2017, we entered into an agreement with Trius Holdings

Pursuant to the terms of the agreement, the investor

4 unchanged sentences

outstanding at the date into shares of the of common stock in the

Company at a price equal to a 20% discount to the closing price of

the common stock on the date of the lender’s notice of

conversion, subject to a floor of $0.01.

Company at a price equal to a 20% discount to closing price of the

common stock on the date of the lender’s notice of

conversion, subject ot a floor of $0.01.

Loan with Individual

March 30, 2017, we entered into an agreement with an individual.

On March 30, 2017, we entered into an agreement with an individual.

Pursuant to the terms of the agreement, the investor acquired a 12%

4 unchanged sentences

the date into shares of the of common stock in the Company at a

price equal to a 20% discount to the closing price of the common

stock on the date of the lender’s notice of conversion,

subject to a floor of $0.01.

price equal to a 20% discount to closing price of the common stock

on the date of the lender’s notice of conversion, subject to

a floor of $0.01.

Results of Operations

Comparison of the Three Months Ended June 30, 2017 to the Three

Months Ended June 30, 2016

Comparison of the Three Months Ended March 31, 2017 to the Three

Months Ended March 31, 2016

revenue or cost of sales were generated for the three months ended

June 30, 2017 or June 30, 2016 due to the overall reduction in

March 31, 2017 or March 31, 2016 due to the overall reduction in

operations of the business.

Operating Expenses

expenses for the three months ended June 30, 2017 are summarized as

follows in comparison to our expenses for the three months ended

June 30, 2016:

Months Ended June 30,

expenses for the three months ended March 31, 2017 are summarized

as follows in comparison to our expenses for the three months ended

March 31, 2016:

Months Ended March 31,

administrative

$ 5,430  

$ 74,337  

Depreciation and

15,628  

Total operating

$ 5,430  

and administrative expense increased by $4,201 for the three months

ended June 30, 2017 from the comparative period of 2016.

increase is due primarily to increased accounting fees incurred to

bring our filings current with the SEC.

$ (1,486,519 )

and administrative expense decreased by $68,907 for the three

months ended March 31, 2017 from the comparative period of 2016.

The decrease is due to the overall reduction in operating expenses

related to the operation of that business.

Depreciation and

amortization expense as well as stock based compensation was $0 for

the three months ended June 30, 2017 and 2016.

Comparison of the Nine Months Ended June 30, 2017 to the Nine

Months Ended June 30, 2016

revenue or cost of sales were generated for the nine months ended

June 30, 2017 or for the nine months ended June 30, 2016 due to the

termination of the license agreement with Canna-Pet, LLC and the

overall reduction in operations of the business.

amortization expense decreased by $15,628 due to the write-down of

our website costs during the three months ended March 31, 2016.

Stock based compensation increased by $1,576,484 due to the

forfeiture and reversal of stock options to officers resulting in a

credit of $1,576,484 during the three months ended March 31,

Comparison of the Six Months Ended March 31, 2017 to the Six Months

Ended March 31, 2016

revenue or cost of sales were generated for the three months ended

March 31, 2017 or for the three months ended March 31, 2016.

the termination of the license agreement with Canna-Pet, LLC and

the overall reduction in operations of the business.

Operating Expenses

expenses for the nine months ended June 30, 2017 are summarized as

follows in comparison to our expenses for the nine months ended

June 30, 2016:

Months Ended June 30,

expenses for the six months ended March 31, 2017 are summarized as

follows in comparison to our expenses for the six months ended

March 31, 2016:

Months Ended March 31,

administrative

6 unchanged sentences

$ (1,101,461 )

and administrative expense decreased by $164,483 for the nine

months ended June 30, 2017 from the comparative period of 2016, due

to the overall reduction in operating expenses related to the

scaling down of operation of the business.

Depreciation and

amortization expense decreased by $18,974 due to the impairment and

the write-down of website costs during the nine months ended June

Stock based compensation increased by $1,296,431

primarily due to the forfeiture and reversal of stock options to

officers resulting in a credit of $1,296,431 during the nine months

ended June 30, 2016.

and administrative expense decreased by $168,683 for the six months

ended March 31, 2017 from the comparative period of 2016, due to

the overall reduction in operating expenses related to the

operation of that business.

Depreciation and amortization expense

decreased by $18,974 due to the impairment and the write-down of

website costs during the six months ended March 31, 2016.

based compensation increased by $1,296,431 primarily due to the

forfeiture and reversal of stock options to officers resulting in a

credit of $1,296,431 during the six months ended March 31,

Discontinued Operations

5 unchanged sentences

hemp-based products for pets.

income (loss) from discontinued operations presented in the

statements of operations consists of the following for the

nine-month periods ended June 30, 2017 and 2016:

income from discontinued operations presented in the statements of

operations consists of the following for the six-month periods

ended March 31, 2017 and 2016:

Cost of goods

3 unchanged sentences

74,706  

discontinued operations 

$ 3,607  

$ 74,706  

Liquidity and Financial Condition

5 unchanged sentences

Working capital

increase in current assets is mainly due to the increase in prepaid

expenses during the nine months ended June 30, 2017.

in current liabilities is due primarily from the increase in

accounting fees recorded in accounts payable to bring the

Company’s SEC filings current for the nine-month period

ending June 30, 2017.

Months Ended June 30,

increase in current assets is mainly due to two convertible notes

for $10,000 received during the six months ended March 31, 2017.

The increase in current liabilities is due primarily from the

increase in accounting fees recorded in accounts payable to

complete and bring current the Company’s SEC

Months Ended March 31,

$ 1,176,167  

8 unchanged sentences

$ 19,791  

June 30, 2017, our cash balance was $3,303.

March 31, 2017, our cash balance was $21,095.

The Company does not

2 unchanged sentences

twelve months.

cash used in operations for the nine months ended June 30, 2017 was

$18,000 mainly due to the net loss incurred for the

cash provided by financing for the nine months ended June 30, 2017

was $20,000 from the issuance of two promissory notes during the

cash used in operations for the six months ended March 31, 2017 was

$209 mainly due to the limited business activity during the

cash provided by financing for the six months ended March 31, 2017

was $20,000 due to two promissory notes received.

to raise additional operating capital on an immediate basis.

18 unchanged sentences

The Company has cumulative net losses

through June 30, 2017 of approximately $5 million, as well as

through March 31, 2017 of approximately $5 million, as well as

negative cash flows from operating activities.

The Company's cash

and cash equivalents balance as of June 30, 2017, is $3,303.

factors raise substantial doubt about the Company's ability to

continue as a going concern.

and cash equivalents balance as of March 31, 2017, is $21,095.

These factors raise substantial doubt about the Company's ability

to continue as a going concern.

we will actively seek to identify sources of liquidity, there are

39 unchanged sentences

notes to our financial statements included herein for the three and

nine months ended June 30, 2017.

six months ended March 31, 2017.

Newly Issued Accounting Pronouncements

Note 1 to our financial statements included herein for the three

and nine months ended June 30, 2017 for a discussion of Recently

and six months ended March 31, 2017 for a discussion of Recently

Issued Accounting Pronouncements.

1 unchanged sentence

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 1. Financial Statements