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Item 2. Management’s Discussion and Analysis

2024-08-16 compared with 2024-05-20 · 277 added, 227 removed, 68 unchanged (88% of the section changed)

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

following discussion should be read in conjunction with our consolidated financial statements and notes thereto included herein.

This discussion includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as

amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act.

statements regarding Sunshine Biopharma, Inc.

contained in this Report that are not historical in nature, particularly those that

utilize terminology such as “may,” “will,” “should,” “likely,”

“expects,” “anticipates,” “estimates,” “believes” or “plans,” or

comparable terminology, are forward-looking statements based on current expectations and assumptions, and entail various risks and

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in

conjunction with our consolidated financial statements and notes thereto included herein.

This discussion includes forward-looking statements

within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities

Exchange Act of 1934, as amended, or the Exchange Act.

The statements regarding Sunshine Biopharma, Inc.

contained in this Report that

are not historical in nature, particularly those that utilize terminology such as “may,” “will,” “should,”

“likely,” “expects,” “anticipates,” “estimates,” “believes” or “plans,”

or comparable terminology, are forward-looking statements based on current expectations and assumptions, and entail various risks and

uncertainties that could cause actual results to differ materially from those expressed in such forward-looking statements.

Important factors known to us that could cause such material differences are identified in this report and in our annual report on

Form 10-K for the year ended December 31, 2023.

We undertake no obligation to correct or update any forward-looking statements,

whether as a result of new information, future events or otherwise, except as may be required under applicable law.

You are advised,

however, to consult any future disclosures we make on related subjects in future reports we file with the SEC .

Sunshine Biopharma

are a pharmaceutical company offering and researching life-saving medicines in a wide variety of therapeutic areas, including oncology

and antivirals.

factors known to us that could cause such material differences are identified in this report and in our annual report on Form 10-K for

the year ended December 31, 2023.

We undertake no obligation to correct or update any forward-looking statements, whether as a result

of new information, future events or otherwise, except as may be required under applicable law.

You are advised, however, to consult

any future disclosures we make on related subjects in future reports we file with the SEC.

About Sunshine Biopharma

We are a pharmaceutical company offering and researching life-saving

medicines in a wide variety of therapeutic areas, including oncology and antivirals.

We operate two wholly owned subsidiaries:

(i) Nora Pharma Inc.

(“Nora Pharma”), a Canadian corporation with

a portfolio consisting of 52 generic prescription drugs on the market in Canada, and (ii) Sunshine Biopharma Canada Inc.

Canada”), a Canadian corporation which develops and sells nonprescription over-the-counter (“OTC”) products.

addition, we are conducting a proprietary drug development program which is comprised of (i) K1.1 mRNA targeted for liver cancer, (ii)

SBFM-PL4, PLpro protease inhibitor for SARS Coronavirus infections, and (iii) Adva-27a for pancreatic cancer.

Development of the latter

has been paused pending further analysis of unfavorable in vitro results obtained in the second half of 2023.

See “Drugs in

Development” below.

were incorporated in the State of Colorado on August 31, 2006, and on October 15, 2009, we acquired Sunshine Biopharma, Inc.

in a transaction

classified as a reverse acquisition.

Sunshine Biopharma, Inc.

held an exclusive license to a new anticancer drug bearing the laboratory

name, Adva-27a (the “License Agreement”).

Upon completion of the reverse acquisition transaction, we changed our name to

(“Nora Pharma”), a Canadian corporation with a portfolio consisting of 61 generic prescription drugs on the market

in Canada, and (ii) Sunshine Biopharma Canada Inc.

(“Sunshine Canada”), a Canadian corporation which develops and sells nonprescription

over-the-counter (“OTC”) products.

In addition, we are conducting a proprietary drug development program

which is comprised of (i) K1.1 mRNA targeted for liver cancer, (ii) SBFM-PL4, PLpro protease inhibitor for SARS Coronavirus infections,

and (iii) Adva-27a for pancreatic cancer.

Development of the latter has been paused pending further analysis of unfavorable in vitro results

obtained in the second half of 2023.

See “Drugs in Development” below.

We were incorporated in the State of Colorado on August 31, 2006, and

on October 15, 2009, we acquired Sunshine Biopharma, Inc.

in a transaction classified as a reverse acquisition.

Sunshine Biopharma, Inc.

held an exclusive license to a new anticancer drug bearing the laboratory name, Adva-27a (the “License Agreement”).

Upon completion

of the reverse acquisition, we changed our name to Sunshine Biopharma, Inc.

and began operating as a pharmaceutical company.

December 2015, we acquired all worldwide issued (US Patent Number 8,236,935, and 10,272,065) and pending patents under PCT/FR2007/000697

and PCT/CA2014/000029 for the Adva-27a anticancer compound and terminated the License Agreement.

Development of Adva-27a has recently

been paused pending further analysis of unexpected in vitro results obtained in the latter part of 2023.

See “Drugs in Development”

early 2020, we initiated a new R&D project focused on the development of a treatment for COVID-19 and on May 22, 2020, we filed a

provisional patent application in the United States for the new coronavirus treatment.

The patent application covers composition subject

matter pertaining to small molecules for inhibition of the main Coronavirus protease, Mpro.

On April 30, 2021, we filed a PCT application

containing new research results and extending coverage to include the Coronavirus Papain-Like protease, PLpro.

June 2021, we initiated another R&D project in which we set out to determine if certain mRNA molecules can be used as anticancer

The data obtained for mRNA molecules bearing the laboratory name K1.1 became the subject of a new patent application filed in

October 20, 2022, we acquired Nora Pharma Inc.

(“Nora Pharma”), a Canadian generic pharmaceuticals company based in the greater

Montreal area.

Nora Pharma has 44 employees and operates in a 23,500 square foot facility certified by Health Canada.

Nora Pharma currently

has 52 generic prescription drugs on the market in Canada and is planning to launch 32 additional generic prescription drugs in 2024

on the Market

Nora Pharma we currently have the following generic prescription drugs on the market in Canada:

In December 2015, we acquired all worldwide issued (US Patent Number

8,236,935, and 10,272,065) and pending patents under PCT/FR2007/000697 and PCT/CA2014/000029 for the Adva-27a anticancer compound and

terminated the License Agreement.

Development of Adva-27a has recently been paused pending further analysis of unexpected in vitro results

obtained in the latter part of 2023.

See “Drugs in Development” below.

In early 2020, we initiated a new R&D project focused on the development

of a treatment for COVID-19 and on May 22, 2020, we filed a provisional patent application in the United States for the new coronavirus

The patent application covers composition subject matter pertaining to small molecules for inhibition of the main Coronavirus

protease, Mpro.

On April 30, 2021, we filed a PCT application containing new research results and extending coverage to include the Coronavirus

Papain-Like protease, PLpro.

In June 2021, we initiated another R&D project in which we set

out to determine if certain mRNA molecules can be used as anticancer agents.

The data obtained for mRNA molecules bearing the laboratory

name K1.1 became the subject of a new patent application filed in April 2022.

On October 20, 2022, we acquired Nora Pharma Inc.

(“Nora Pharma”),

a Canadian generic pharmaceuticals company based in the greater Montreal area.

Nora Pharma has 46 employees and operates in a 23,500 square

foot facility certified by Health Canada.

Nora Pharma currently has 61 generic prescription drugs on the market in Canada and is planning

to launch 32 additional generic prescription drugs in 2024 and 2025.

Products on the Market

Through Nora Pharma we currently have the following generic prescription

drugs on the market in Canada:

Action/Indication

7 unchanged sentences

Anti-inflammatory

Ciprofloxacin

2 unchanged sentences

Dapagliflozin

Antibacterial

Central nervous system

Antibacterial

Central nervous system

16 unchanged sentences

Central nervous system

Progesterone*

Women's Health

Central nervous system

2 unchanged sentences

Cardiovascular

Rizatriptan ODT

Central nervous system

Cardiovascular

Central nervous system

Cardiovascular

Telmisartan HCTZ

Cardiovascular

Micardis Plus®

Anticonvulsant

Tramadol Acetaminophen

Central nervous system

Rizatriptan ODT

Central nervous system

________________

*Sold through distribution agreements

In addition to the 61 drugs currently on the market, we have 32 additional

4 unchanged sentences

to be launched in 2024 is NIOPEG®, a biosimilar of NEULASTA®.

Similar to NEULASTA®, NIOPEG® is a long-acting form of recombinant

Like NEULASTA®, NIOPEG® is a long-acting form of recombinant

human granulocyte colony-stimulating factor (filgrastim).

2 unchanged sentences

Nora Pharma received Health Canada marketing approval for NIOPEG® on April 17, 2024.

We believe the addition of these new products

to our existing portfolio will strengthen our presence in the Canadian $9.7 billion a year generic drugs market and provide us with greater

access to pharmacies as we become more of a go-to supplier for every-day and specialty medicines.

in Development

following table summarizes our proprietary drugs in development:

NIOPEG® is anticipated to be on the market in Canada in October 2024.

We believe the addition of these new products to our existing portfolio

will strengthen our presence in the Canadian $9.7 billion a year generic drugs market and provide us with greater access to pharmacies

as we become more of a go-to supplier for every-day and specialty medicines.

Drugs in Development

The following table summarizes our proprietary drugs in development:

Adva-27a (Small Molecule)

6 unchanged sentences

Animal Testing

“Adva-27a Anticancer Compound” below

Anticancer Compound

is a small molecule designed for the treatment of aggressive forms of cancer.

A Topoisomerase II inhibitor, Adva-27a has been shown to

be effective at destroying Multidrug Resistant Cancer cells including Pancreatic Cancer cells, Breast Cancer cells, Small-Cell Lung Cancer

cells and Uterine Sarcoma cells (Published in ANTICANCER RESEARCH, Volume 32, Pages 4423-4432, October 2012).

We are the direct owner

of all patents pertaining to Adva-27a including U.S.

Patents Number 8,236,935 and 10,272,065.

In December 2022, we entered into a research agreement

with the Jewish General Hospital (“JGH”), to conduct the IND-enabling studies of Adva-27a (the “Research Agreement”).

In August 2023, we were informed by the JGH that the laboratory results on testing of the Adva-27a molecule were not favorable.

conclusion of an internal review of the laboratory results on November 2, 2023, we provided notice to JGH of termination of the Research

We have paused the IND-enabling studies of Adva-27a pending a review of the results and the possibility of chemical modification

of the compound to address the suboptimal performance of the molecule in certain studies.

Anticancer mRNA

June 2021, we initiated a new research project in which we set out to determine if certain mRNA molecules can be used as anti-cancer

The data collected to date have shown that a selected group of mRNA molecules are capable of destroying cancer cells in vitro

including multidrug resistant breast cancer cells (MCF-7/MDR), ovarian adenocarcinoma cells (OVCAR-3), and pancreatic cancer cells (SUIT-2).

Studies using non-transformed (normal) human cells (HMEC cells) showed that these mRNA molecules had little cytotoxic effects.

new mRNA molecules, bearing the laboratory name K1.1, are readily adaptable for delivery into patients using the mRNA vaccine technology.

In April 2022, we filed a provisional patent application in the United States covering the subject mRNA molecules.

November 2022, we concluded an agreement with a specialized commercial partner for the purposes of formulating our K1.1 mRNA molecules

into lipid nanoparticles (“LNP”) for use to conduct xenograft mice studies.

The initial results of our xenograft mice studies

indicate that our K1.1 mRNA-LNP is effective at reducing the size of liver cancer xenograft tumors in mice.

We are currently seeking

to confirm these results by conducting additional xenograft experiments on a broader scale and in more detailed dose-response studies.

SARS Coronavirus Treatment

initial genome expression products following infection by Betacoronavirus, the causative agent of COVID-19, are two large polyproteins,

referred to as pp1a and pp1ab.

These two polyproteins are cleaved at 15 specific sites by two virus encoded proteases, called Mpro and

PLpro, to generate 16 different non-structural proteins essential for viral replication.

Mpro and PLpro represent attractive anti-viral

drug development targets as they play a central role in the early stages of viral replication.

PLpro is of particular interest as a therapeutic

target in that, in addition to processing essential viral proteins, it is also responsible for suppression of the human immune system

making the virus more life-threatening.

PLpro is present only in Betacoronaviruses, the subgroup of Coronaviruses represented by the

highly pathogenic SARS-CoV, MERS-CoV, and SARS-CoV-2.

Anti-Coronavirus research effort has been focused on developing an inhibitor of PLpro and, on May 22, 2020, we filed a patent application

in the United States covering composition subject matter pertaining to small molecules for inhibition of the Coronavirus PLpro as well

February 2022, we expanded our PLpro inhibitors research effort by entering into a research agreement with the University of Arizona

for the purposes of conducting research focused on determining the in vivo safety, pharmacokinetics, and dose selection properties of

three University of Arizona owned PLpro inhibitors, to be followed by efficacy testing in mice infected with SARS-CoV-2 (the “Research

Under the agreement, the University of Arizona granted us a first option to negotiate a commercial, royalty-bearing

license for all intellectual property developed by University of Arizona under the Research Project.

In addition, we and the University

of Arizona have entered into an option agreement (the “Option Agreement”) whereby we were granted a first option to negotiate

a royalty-bearing commercial license for the underlying technology of the Research Project.

On September 13, 2022, we exercised our options,

and on February 24, 2023, we entered into an exclusive worldwide license agreement with the University of Arizona for all of the technology

related to the Research Project.

have recently broadened our objective to include the development of an injectable drug candidate of first-in-class PLpro inhibitor to

treat SARS-CoV2 and potentially SARS-CoV and MERS-CoV infection in patients who could not use Paxlovid, Molnupiravir, or Remdesivir,

due to concerns about drug interactions and possible ‘rebound’ infections and other side effects.

are the sole owner of all rights pertaining to Adva-27a.

These patent rights are covered by PCT/FR2007/000697 and PCT/CA2014/000029.

patent applications filed under these two PCT's have been issued in the United States under US Patent Number 8,236,935 and 10,272,065.

May 22, 2020, we filed a provisional patent application in the United States for a new treatment for Coronavirus infections.

application covers composition subject matter pertaining to small molecules for inhibition of the main Coronavirus protease, Mpro, an

enzyme that is essential for viral replication.

The patent application has a priority date of May 22, 2020.

On April 30, 2021, we filed

a PCT application containing new research results and extending coverage to include the Coronavirus Papain-Like protease, PLpro.

priority date of May 22, 2020 has been maintained in the newly filed PCT application.

April 20, 2022, we filed a provisional patent application in the United States covering mRNA molecules capable of destroying cancer cells

The patent application contains composition and utility subject matter pertaining to the structure and sequence of the relevant

mRNA molecules.

February 24, 2023, we became the exclusive, worldwide licensee of the University of Arizona for three (3) patents related to small molecules

which inhibit the Coronavirus protease, PLpro.

wholly owned subsidiary, Nora Pharma, owns 152 DIN’s issued by Health Canada for prescription drugs currently on the market in

These DIN’s were secured through in-licenses or cross-licenses from international manufacturers of generic pharmaceutical

In addition, we are the owner of four (4) NPN’s

issued by Health Canada including (i) NPN 80089663 which authorizes us to manufacture and sell our in-house developed OTC product, Essential

9, (ii) NPN 80093432 which authorizes us to manufacture and sell the OTC product, Calcium-Vitamin D under the brand name Essential Calcium-Vitamin

_____________

*See “ Adva-27a Anticancer Compound ”

Adva-27a Anticancer Compound

Adva-27a is a small molecule designed for the treatment of aggressive

forms of cancer.

A Topoisomerase II inhibitor, Adva-27a has been shown to be effective at destroying Multidrug Resistant Cancer cells

including Pancreatic Cancer cells, Breast Cancer cells, Small-Cell Lung Cancer cells and Uterine Sarcoma cells (Published in ANTICANCER

RESEARCH, Volume 32, Pages 4423-4432, October 2012).

We are the direct owner of all patents pertaining to Adva-27a including U.S.

Number 8,236,935 and 10,272,065.

In December 2022, we entered into a research

agreement with the Jewish General Hospital (“JGH”), to conduct the IND-enabling studies of Adva-27a (the “Research

In August 2023, we were informed by the JGH that the laboratory test results of the Adva-27a molecule

were not favorable.

After conclusion of an internal review of the laboratory results on November 2, 2023, we provided notice to JGH

of termination of the Research Agreement.

We have paused the IND-enabling studies of Adva-27a pending a review of the results and

the possibility of chemical modification of the compound to address the suboptimal performance of the molecule in certain

K1.1 Anticancer mRNA

In June 2021, we initiated a new research project in which we set out

to determine if certain mRNA molecules can be used as anti-cancer agents.

The data collected to date have shown that a selected group

of mRNA molecules are capable of destroying cancer cells in vitro including multidrug resistant breast cancer cells (MCF-7/MDR), ovarian

adenocarcinoma cells (OVCAR-3), and pancreatic cancer cells (SUIT-2).

Studies using non-transformed (normal) human cells (HMEC cells)

showed that these mRNA molecules had little cytotoxic effects.

These new mRNA molecules, bearing the laboratory name K1.1, are readily

adaptable for delivery into patients using the mRNA vaccine technology.

In April 2022, we filed a provisional patent application in the

United States covering the subject mRNA molecules.

In November 2022, we concluded an agreement with a specialized commercial

partner for the purposes of formulating our K1.1 mRNA molecules into lipid nanoparticles (“LNP”) for use to conduct xenograft

mice studies.

The initial results of our xenograft mice studies indicate that our K1.1 mRNA-LNP is effective at reducing the size of liver

cancer xenograft tumors in mice.

We are currently seeking to confirm these results by conducting additional xenograft experiments on a

broader scale and in more detailed dose-response studies.

SBFM-PL4 SARS Coronavirus Treatment

The initial genome expression products following infection by Betacoronavirus,

the causative agent of COVID-19, are two large polyproteins, referred to as pp1a and pp1ab.

These two polyproteins are cleaved at 15 specific

sites by two virus encoded proteases, called Mpro and PLpro, to generate 16 different non-structural proteins essential for viral replication.

Mpro and PLpro represent attractive anti-viral drug development targets as they play a central role in the early stages of viral replication.

PLpro is of particular interest as a therapeutic target in that, in addition to processing essential viral proteins, it is also responsible

for suppression of the human immune system making the virus more life-threatening.

PLpro is present only in Betacoronaviruses, the subgroup

of Coronaviruses represented by the highly pathogenic SARS-CoV, MERS-CoV, and SARS-CoV-2.

Our Anti-Coronavirus research effort has been focused on developing

an inhibitor of PLpro and, on May 22, 2020, we filed a patent application in the United States covering composition subject matter pertaining

to small molecules for inhibition of the Coronavirus PLpro as well as Mpro.

In February 2022, we expanded our PLpro inhibitors research effort

by entering into a research agreement with the University of Arizona for the purposes of conducting research focused on determining the

in vivo safety, pharmacokinetics, and dose selection properties of three University of Arizona owned PLpro inhibitors, to be followed

by efficacy testing in mice infected with SARS-CoV-2 (the “Research Project”).

Under the agreement, the University of Arizona

granted us a first option to negotiate a commercial, royalty-bearing license for all intellectual property developed by University of

Arizona under the Research Project.

In addition, we and the University of Arizona have entered into an option agreement (the “Option

Agreement”) whereby we were granted a first option to negotiate a royalty-bearing commercial license for the underlying technology

of the Research Project.

On September 13, 2022, we exercised our options, and on February 24, 2023, we entered into an exclusive worldwide

license agreement with the University of Arizona for all of the technology related to the Research Project.

We have recently broadened our objective to include the development

of an injectable drug candidate of first-in-class PLpro inhibitor to treat SARS-CoV2 and potentially SARS-CoV and MERS-CoV infection in

patients who could not use Paxlovid, Molnupiravir, or Remdesivir, due to concerns about drug interactions and possible ‘rebound’

infections and other side effects.

Intellectual Property

We are the sole owner of all rights pertaining to Adva-27a.

rights are covered by PCT/FR2007/000697 and PCT/CA2014/000029.

The patent applications filed under these two PCT's have been issued in

the United States under US Patent Number 8,236,935 and 10,272,065.

On May 22, 2020, we filed a provisional patent application in the United

States for a new treatment for Coronavirus infections.

Our patent application covers composition subject matter pertaining to small molecules

for inhibition of the main Coronavirus protease, Mpro, an enzyme that is essential for viral replication.

The patent application has a

priority date of May 22, 2020.

On April 30, 2021, we filed a PCT application containing new research results and extending coverage to

include the Coronavirus Papain-Like protease, PLpro.

The priority date of May 22, 2020 has been maintained in the newly filed PCT application.

On April 20, 2022, we filed a provisional patent application in the

United States covering mRNA molecules capable of destroying cancer cells in vitro.

The patent application contains composition and utility

subject matter pertaining to the structure and sequence of the relevant mRNA molecules.

Effective February 24, 2023, we became the exclusive, worldwide licensee

of the University of Arizona for three (3) patents related to small molecules which inhibit the Coronavirus protease, PLpro.

Our wholly owned subsidiary, Nora Pharma, owns 152 DIN’s issued

by Health Canada for prescription drugs currently on the market in Canada.

These DIN’s were secured through in-licenses or cross-licenses

from international manufacturers of generic pharmaceutical products.

In addition, we are the owner of four (4) NPN’s issued by Health

Canada including (i) NPN 80089663 which authorizes us to manufacture and sell our in-house developed OTC product, Essential•9, (ii)

NPN 80093432 which authorizes us to manufacture and sell the OTC product, Calcium-Vitamin D under the brand name Essential Calcium-Vitamin

D, (iii) NPN 80125047 which authorizes us to manufacture and sell the OTC product, L-Citrulline, and (iv) NPN 80127436 which authorizes

us to manufacture and sell the OTC product, Taurine.

of Operations

of results of operations for the three months ended March 31, 2024 and 2023

During the three months ended March 31, 2024,

we generated $7,541,046 in sales, compared to $4,894,053 for the three months ended March 31, 2023, an increase of $2,646,993, or 54%.

The increase is attributable to new product launches and expanded marketing and sales efforts by our wholly owned subsidiary, Nora Pharma.

The direct cost for generating these sales was $5,186,709 (69%) for the three months ended March 31, 2024, compared to $3,065,931 (63%)

for the three months ended March 31, 2023.

The increase in the cost of goods sold in 2024 is due to increased cost of manufacturing of

the generic prescription drugs sold by Nora Pharma.

Our gross profit grew to $2,354,337 for the three months ended March 31, 2024, compared

to $1,828,122 for the three months ended March 31, 2023.

General and administrative expenses during the

three-month period ended March 31, 2024, were $3,704,926, compared to $3,657,103 during the three-month period ended March 31, 2023, an

increase of $47,823.

This modest increase was the net result of increases and decreases in our specific expense categories.

we saw increased costs in accounting ($182,256), legal ($114,549), marketing ($70,133) and office ($428,753).

The categories that decreased

were consulting ($84,214), R&D ($210,892) and salaries ($466,545).

Overall, we incurred a loss of $1,350,589 from our operations for

the three months ended March 31, 2024, compared to a loss of $1,828,981 from our operations in the three-month period ended March 31,

In addition, we had interest income of $144,089

during the three months ended March 31, 2024, compared to a net interest income of $213,881 during the three months ended March 31, 2023,

as a result of interest earned on less cash on hand.

As a result, we incurred a net loss of $1,283,801

($0.02 per share) for the three months ended March 31, 2024, compared to a net loss of $1,702,430 ($0.08 per share) for the three-month

period ended March 31, 2023.

and Capital Resources

As of March 31, 2024, we had cash and cash equivalents of $17,434,208.

Results of Operations

Comparison of

results of operations for the three months ended June 30, 2024 and 2023

During the three months ended June 30, 2024, we

generated $9,303,067 in sales, compared to $5,560,865 for the three months ended June 30, 2023, an increase of $3,742,202, or 67%.

increase is attributable to expanded marketing and sales efforts by our wholly owned subsidiary, Nora Pharma.

The direct cost for generating

these sales was $6,946,810 (75%) for the three months ended June 30, 2024, compared to $3,608,118 (65%) for the three months ended June

The increase in the cost of goods sold in 2024 is due to increased cost of manufacturing of the generic prescription drugs.

Our gross profit grew to $2,356,257 for the three months ended June 30, 2024, compared to $1,952,747 for the three months ended June 30,

and administrative expenses during the three-month period ended June 30, 2024, were $3,624,533, compared to $2,966,635 during the three-month

period ended June 30, 2023, an increase of $657,898.

The increase was due to increases in legal fees ($77,621), marketing ($123,148),

office expense ($293,595), R&D ($67,670), and salaries ($356,009).

The increase in salaries was due to the hiring of two (2) new

employees and a bonus paid to the CEO of the Company.

The only expense category that saw a decrease was consulting, which was reduced

Overall, we incurred a loss of $1,268,276 from our operations for the three months ended June 30, 2024, compared to a loss

of $1,013,888 from our operations in the three-month period ended June 30, 2023.

addition, we had interest income of $143,995 during the three months ended June 30, 2024, compared to net interest income of $203,049

during the three months ended June 30, 2023, as a result of less interest earned on cash on hand.

a result, we incurred a net loss of $494,300 ($9.94 per share) for the three months ended June 30, 2024, compared to a net loss of $902,108

($71.17 per share) for the three-month period ended June 30, 2023.

Comparison of results of operations

for the six months ended June 30, 2024 and 2023

During the six months ended June 30 2024, we generated

revenues of $16,844,113, compared to revenue of $10,454,918 for the six months ended June 30, 2023, an increase of $6,389,195, or 61%.

The increase is attributable to increased sales generated by our wholly owned subsidiary, Nora Pharma.

The direct cost for generating

these revenues was $12,133,519 for the six months ended June 30, 2024 (72%), compared to $6,674,049 (64%) for the six months ended June

The increase in the cost of goods sold in 2024 is due to an increase in the cost of manufacturing of generic prescription drugs.

Our gross profit increased to $4,710,594 for the six months ended June 30, 2024, compared to a gross profit of $3,780,869 for the same

period in 2023.

and administrative expenses during the six-month period ended June 30, 2024, were $7,378,640, compared to $6,660,398 during the six-month

period ended June 30, 2023, an increase of $718,242.

The increase was a result of increases in accounting ($195,369), legal ($185,862),

marketing ($193,281), and office costs ($734,868).

The three expense categories that saw a decrease were salaries ($110,536), consulting

($422,620) and R&D ($143,222).

Overall, we incurred a loss of $2,668,046 from our operations in the six-month period ended June 30,

2024, compared to a loss from operations of $2,879,529 in the similar period of 2023.

addition, we had interest income of $288,084 during the six months ended June 30, 2024, compared to interest income of $416,930 during

the six months ended June 30, 2023.

The decrease was due to the Company having less cash on hand.

a result, we incurred a net loss of $1,778,101 ($43.48 per share) for the six-month period ended June 30, 2024, compared to a net loss

of $2,604,538 ($218.62 per share) for the six-month period ended June 30, 2023.

Liquidity and Capital Resources

As of June 30, 2024, we had cash and cash equivalents of $11,507,745.

Net cash used in operating activities was $7,762,942

during the three months ended March 31, 2024, compared to $1,850,106 during the three-month period ended March 31, 2023.

was a result of increased business activities by Nora Pharma.

during the six months ended June 30, 2024, compared to $5,628,146 during the six-month period ended June 30, 2023.

The increase was a

result of increased business activities by Nora Pharma.

Cash flows used in investing activities were $1,210,944

for the three months ended March 31, 2024, compared to $146,303 for the three months ended March 31, 2023.

The increase was the result

of cash invested in Nora Pharma.

for the six months ended June 30, 2024, compared to $405,779 for the six months ended June 30, 2023.

The increase was the result of cash

invested in Nora Pharma to finance increase in inventory and expansion of product line.

Cash flows provided by financing activities were

$5,398,149 during the three months ended March 31, 2024, compared to $538,299 during the three months ended March 31, 2023.

was primarily as a result of one offering made during the three months ended March 31, 2024, compared to no financing events completed

during the three months ended March 31, 2023.

are not generating adequate revenues from our operations to fully implement our business plan as set forth herein.

We believe our existing

cash on hand will be sufficient to fund our pharmaceuticals sales operations and research and development activities for the next 24

$5,369,566 during the six months ended June 30, 2024, compared to $3,519,672 during the six months ended June 30, 2023.

The increase was

primarily a result of the approximately $10 million financing event completed in February 2024, compared to an approximately $5 million

financing event completed in May 2023.

We are not generating adequate revenues from our operations to fully

implement our business plan as set forth herein.

We believe our existing cash on hand will be sufficient to fund our pharmaceuticals sales

operations and research and development activities for the next 24 months.

There is no assurance our estimates will be accurate.

We have no committed sources of capital and we anticipate that we will

need to raise additional capital in the future, including for further research and development activities and possibly clinical trials,

as well as expansion of our generic pharmaceuticals operations.

Additional capital may not be available on terms acceptable to us, or

Accounting Estimates

discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been

prepared in accordance with accounting principles generally accepted in the United States.

The preparation of these financial statements

requires us to make estimates and judgments that affect the amounts of assets, liabilities, revenues and expenses, and related disclosure

of contingent assets and liabilities.

On an on-going basis, we evaluate our estimates based on historical experience and on various other

assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about

the carrying values of assets and liabilities that are not readily apparent from other sources.

Actual results may differ from these

estimates under different assumptions or conditions.

a detailed list of significant accounting policies, please see our annual report on Form 10-K for the fiscal year ended December 31,

2023, including our financial statements and notes thereto included therein as filed with the SEC on March 28, 2024.

Adopted Accounting Standards

February 2020, the FASB issued ASU 2020-02, Financial Instruments-Credit Losses (Topic 326) and Leases (Topic 842) - Amendments to SEC

Paragraphs Pursuant to SEC Staff Accounting Bulletin No.

119 and Update to SEC Section on Effective Date Related to Accounting Standards

2016-02, Leases (Topic 842) which amends the effective date of the original pronouncement for smaller reporting companies.

ASU 2016-13 and its amendments will be effective for the Company for interim and annual periods in fiscal years beginning after December

The Company believes the adoption will modify the way the Company analyzes financial instruments, but it does not anticipate

a material impact on results of operations.

The Company is in the process of determining the effects adoption will have on its consolidated

financial statements.

August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging

– Contracts in Entity’s Own Equity (Subtopic 815 – 40), (“ASU 2020-06”).

ASU 2020-06 simplifies the accounting

for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on

an entity’s own equity.

The ASU2020-06 amendments are effective for fiscal years beginning after December 15, 2023, and interim

periods within those fiscal years.

Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including

interim periods within those fiscal years.

The Company is evaluating the impact of this guidance on its unaudited consolidated financial

Balance-Sheet Arrangements

have no committed sources of capital and we anticipate that we will need to raise additional capital in the future, including for further

research and development activities and possibly clinical trials, as well as expansion of our generic pharmaceuticals operations.

capital may not be available on terms acceptable to us, or at all.

Critical Accounting Estimates

The discussion and analysis of our financial condition and results

of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted

in the United States.

The preparation of these financial statements requires us to make estimates and judgments that affect the amounts

of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities.

On an on-going basis, we evaluate

our estimates based on historical experience and on various other assumptions that we believe to be reasonable under the circumstances,

the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent

from other sources.

Actual results may differ from these estimates under different assumptions or conditions.

For a detailed list of significant accounting policies, please see

our annual report on Form 10-K for the fiscal year ended December 31, 2023, including our financial statements and notes thereto included

therein as filed with the SEC on March 28, 2024.

Recently Adopted Accounting Standards

In February 2020, the FASB issued ASU 2020-02, Financial Instruments-Credit

Losses (Topic 326) and Leases (Topic 842) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No.

119 and Update

to SEC Section on Effective Date Related to Accounting Standards Update No.

2016-02, Leases (Topic 842) which amends the effective date

of the original pronouncement for smaller reporting companies.

ASU 2016-13 and its amendments will be effective for the Company for interim

and annual periods in fiscal years beginning after December 15, 2022.

The Company believes the adoption will modify the way the Company

analyzes financial instruments, but it does not anticipate a material impact on results of operations.

The Company is in the process of

determining the effects adoption will have on its consolidated financial statements.

In August 2020, the FASB issued ASU 2020-06, Debt – Debt with

Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815

– 40), (“ASU 2020-06”).

ASU 2020-06 simplifies the accounting for certain financial instruments with characteristics

of liabilities and equity, including convertible instruments and contracts on an entity’s own equity.

The ASU2020-06 amendments

are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years.

Early adoption is permitted,

but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years.

The Company is

evaluating the impact of this guidance on its unaudited consolidated financial statements.

Off Balance-Sheet Arrangements

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

are a smaller reporting company and are not required to provide the information under this item.

We are a smaller reporting company and are not required to provide

the information under 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