What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-08-15 compared with 2024-05-15 · 86 added, 57 removed, 215 unchanged (40% of the section changed)

36 unchanged sentences

actual results.

Our financial statements are stated in United States

dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles.

Our financial statements are stated in United States dollars (US$) and

are prepared in accordance with United States Generally Accepted Accounting Principles.

Company Overview

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Plus, Quoin also

agreed to pay Skinvisible 25% of any revenues they receive as royalties in the event they sublicense any licensed products to a third

agreed to pay Skinvisible 25% of any revenues they receive as royalties in the event that they sublicense any licensed products to a third

On June 6, 2022, the Company announced that its

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of the agreement if it chooses to continue the license.

On June 10, 2020, Ovation Science paid us

the fee otherwise due in year 3 and in exchange we extended the term of Ovation Science’s license to 6-years and granted Ovation

additional rights to its hand sanitizer products and assigned Canadian Identification Numbers 02310589 and 02355558, all DermSafe Trademarks,

DermSafe clinical data and the right to patent DermSafe where not currently patented.

In exchange for these rights, Ovation Science paid

a $100,000 license fee.

On June 10, 2020, Ovation Science paid us the

fee otherwise due in year 3 and in exchange we extended the term of Ovation Science’s license to 6-years and granted Ovation additional

rights to its hand sanitizer products and assigned Canadian Identification Numbers 02310589 and 02355558, all DermSafe Trademarks, DermSafe

clinical data and the right to patent DermSafe where not currently patented.

In exchange for these rights, Ovation Science paid a $100,000

We completed the required assignments during the year ending December 31, 2020 and recognized $100,000 in revenue.

Filing of Patent Application

The Company expects to file a US patent application

for the delivery of weight loss actives in the coming days.

Results of Operations for the Three Months Ended March 31, 2024 and

Patent Applications for Transdermal Delivery

for Obesity and Glucose-Controlling Agents

In May and June of 2024, we filed provisional

patent applications covering formulations that leverage Invisicare for the transdermal administration of obesity drugs and glucose-controlling

agents for diseases such as diabetes.

The patents are titled "Transdermal Delivery Composition for Delivery of CB-1 Receptor Antagonists

and/or GLP-1 Receptor Agonists, and Method of Delivery” and “Transdermal Delivery Composition for Delivery of at Least One

Glucose Controlling Agent, and Method of Delivering at Least One Glucose Controlling Agent.”

The patent applications focus on the use of Invisicare

in a transdermal delivery technology designed to incorporate CB-1 receptor antagonists and/or GPL-1 receptor agonists, with drugs known

for their potential in obesity management and for glucose-controlling agents, into a lotion that is applied topically to the skin using

a metered applicator.

Studies have demonstrated the superior transdermal penetration and controlled release of other active compounds

using Invisicare's innovative technology, with certain actives exhibiting up to a tenfold increase in transdermal delivery effectiveness.

By utilizing Invisicare, we aim to not only offer patients a convenient and effective alternative to traditional oral or injectable therapies

but to also enhance drug efficacy and potentially significantly reduce side effects as transdermal delivery avoids first-pass metabolism.

Additionally, for long-term treatment of obesity and glucose controlling agents, a transdermal delivery system could feasibly provide

a convenient method for administering maintenance doses for these medications.

We are actively pursuing strategic partnerships

with pharmaceutical and/or biotech companies to facilitate the introduction of the first transdermal obesity therapies to market and to

explore the application of its delivery platform across diverse disease domains.

Results of Operations for the Three and Six Months Ended June 30, 2024

Our revenue, which we combine

from product sales, royalties on patent licenses and license fees (product development fees), was $5,000 for the three months ended March

31, 2024, a decrease from $0 for the same period ended March 31, 2023.

We had $0 in cost of revenues for the three months ended March 31, 2024,

compared with $0 in cost of revenues for the three months ended March 31, 2023, so our gross profit was $5,000 for the three months ended

March 31, 2024, as compared with gross profit of $5,000 for the three ended March 31, 2023.

from product sales, royalties on patent licenses and license fees (product development fees), was $5,000 for the three months ended June

30, 2024 and $5,000 for the same period ended June 30, 2023.

Our revenue, which we combine

from product sales, royalties on patent licenses and license fees (product development fees), was $10,000 for the six months ended June

We hope to generate more

revenues from our licenses with Quoin and Ovation for the rest of 2024.

We also plan to enter into commercial arrangements with pharma

and biotech companies to exploit our patent applications that were recently filed, and we hope to generate revenue from these efforts

in the future.

We had $0 in cost of revenues for the three and six months ended June 30,

2024, compared with $0 in cost of revenues for the three and six months ended June 30, 2023, so our gross profit was $5,000 and $10,000

for the three and six months ended June 30, 2024, respectively, as compared with gross profit of $5,000 and $10,000 for the three and

six ended June 30, 2023, respectively.

Operating Expenses

Operating expenses decreased to $128,184 for the three months

ended March 31, 2024, from $132,904 for the same period ended March 31, 2023.

Operating expenses increased to $147,693 for the three months

ended June 30, 2024, from $117,823 for the same period ended June 30, 2023.

Operating expenses increased to $275,877 for the six months

ended June 30, 2024, from $250,727 for the same period ended June 30, 2023.

Our operating expenses for all periods consisted mainly of selling, general

and administrative expenses.

Our selling, general and administrative expenses for the three months ended

March 31, 2024, consisted mainly of accrued salaries and wages of $87,942 and audit and accounting of $17,610.

Our selling, general and administrative expenses for the six months ended

June 30, 2024, consisted mainly of accrued salaries and wages of $175,885 and audit and accounting of $31.638.

In comparison, our selling,

general and administrative expenses for the three months ended March 31, 2023, consisted mainly of accrued salaries and wages of $92,942

general and administrative expenses for the six months ended June 30, 2023, consisted mainly of accrued salaries and wages of $180,365

and audit and accounting of $25,419.

Other Expenses

We had other expenses of $167,188 for the three months ended March 31,

2024, as compared with other expenses of $1,387,152 for the three months ended March 31, 2023.

Our other expenses for the three months ended March

31, 2024 consisted mainly of interest expense and losses on derivative liability changes.

Our other expenses for the three months ended

March 31, 2023 was primarily a result of the increased interest expense resulting from the amortization of debt discounts.

We recorded a net loss of $290,372 for the three months ended March

31, 2024, as compared with a net loss of $1,515,056 for the three months ended March 31, 2023.

We had other expenses of $160,756 for the three months ended June 30, 2024,

as compared with other expenses of $163,252 for the three months ended June 30, 2023.

We had other expenses of $327,944 for the six months ended June 30, 2024,

as compared with other expenses of $1,550,404 for the six months ended June 30, 2023.

Our other expenses for the three and six months ended

June 30, 2024 consisted mainly of interest expense, netted against a gain on settlement of debt and gain on derivative liability changes.

We recorded a net loss of $303,449 for the three months ended June

30, 2024, as compared with a net loss of $276,075 for the three months ended June 30, 2023.

We recorded a net loss of $593,821 for the

six months ended June 30, 2024, as compared with a net loss of $1,791,131for the six months ended June 30, 2023.

Liquidity and Capital Resources

Going concern – The accompanying

financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of

liabilities in the normal course of business.

The Company has incurred cumulative net losses of $39,670,860 since its inception and requires

capital for its contemplated operational and marketing activities to take place.

The Company’s ability to generate the necessary

funds through licensing of its core products or the ability to raise additional capital through the future issuances of common stock or

debt is unknown.

The obtainment of additional financing, the successful development of the Company’s contemplated plan of operations,

and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations.

factors, among others, raises substantial doubt about the Company’s ability to continue as a going concern.

The consolidated financial

statements of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties.

As of March 31, 2024, we had total current assets

concern – The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization

of assets and the satisfaction of liabilities in the normal course of business.

The Company has incurred cumulative net losses of $39,974,309

since its inception and requires capital for its contemplated operational and marketing activities to take place.

The Company’s

ability to generate the necessary funds through licensing of its core products or the ability to raise additional capital through the

future issuances of common stock or debt is unknown.

The obtainment of additional financing, the successful development of the Company’s

contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company

to continue operations.

These factors, among others, raises substantial doubt about the Company’s ability to continue as a going

The consolidated financial statements of the Company do not include any adjustments that may result from the outcome of these

aforementioned uncertainties.

As of June 30, 2024, we had total current assets

of $35,882 and total assets in the amount of $163,058.

Our total current liabilities as of March 31, 2024 were $4,094,415.

Our total current liabilities as of June 30, 2024 were $4,023,571.

We had a working

capital deficit of $4,063,726 as of March 31, 2024, compared with a working capital deficit of $3,476,947 as of December 31, 2023.

capital deficit of $3,987,689 as of June 30, 2024, compared with a working capital deficit of $3,476,947 as of December 31, 2023.

Operating activities used $40,380 in cash for

the three months ended March 31, 2024, as compared with $51,715 used for the three months ended March 31, 2023.

Our negative operating

cash flows for 2023 and 2024 was largely the result of our net loss for those quarter, mainly offset by changes in operating assets and

liabilities and the amortization of debt discount.

We used cash of $0 and $525 in investing activities

for the three months ended March 31, 2024 and 2023, respectively, for the purchase of intangible assets.

the six months ended June 30, 2024, as compared with $68,496 used for the six months ended June 30, 2023.

Our negative operating cash

flows for 2023 and 2024 was largely the result of our net loss for those quarter, mainly offset by changes in operating assets and liabilities

and the amortization of debt discount.

We used cash of $9,218 and $9,334 in investing

activities for the six months ended June 30, 2024 and 2023, respectively, for the purchase of intangible assets.

Cash flow provided from financing activities was

$19,500 for the three months ended March 31, 2024, as compared with no cash flows for financing

activities during the three months ended March 31, 2023.

$55,700 for the six months ended June 30, 2024, as compared with no cash flows for financing activities

during the six months ended June 30, 2023.

The features of the debt instruments and payables

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Off Balance Sheet Arrangements

As of March 31, 2024, there were no off-balance sheet arrangements.

As of June 30, 2024, there were no off-balance sheet arrangements.

Critical Accounting Policies

25 unchanged sentences

if any, of the balance that will not be collected.

As of March 31, 2024, we had not recorded a reserve for doubtful accounts.

As of June 30, 2024, we had not recorded a reserve for doubtful accounts.

Recently Issued Accounting Pronouncements

5 unchanged sentences

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