Cantabio Pharmaceuticals (CTBO) 10-Q 10 Feb 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Dec. 31, 2016shares
Document and Entity Information
Entity Registrant Name	Cantabio Pharmaceuticals Inc.
Document Type	10-Q
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Entity Central Index Key	1,550,518
Current Fiscal Year End Date	--03-31
Entity Common Stock, Shares Outstanding	26,805,270
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Trading Symbol	ctbo

Balance Sheets

Balance Sheets - USD ($)	Dec. 31, 2016	Mar. 31, 2016
Current Assets
Cash	$ 10,759	$ 52,110
Total Current Assets	10,759	52,110
TOTAL ASSETS	10,759	52,110
Current Liabilities
Accounts payable and accrued expenses	377,516	225,498
Accrued technology access fee	184,440	173,414
Due to officers		6,420
Notes payable related party	45,346	16,562
Total Current Liabilities	607,302	421,894
TOTAL LIABILITIES	607,302	421,894
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock value	26,805	26,805
Stock subscriptions	1,060,000	500,000
Additional paid-in capital	99,324	99,324
Accumulated deficit	(1,782,636)	(995,913)
Total Stockholders' Equity (Deficit)	(596,507)	(369,784)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$ 10,795	$ 52,110

Balance Sheets (parenthetical)

Balance Sheets (parenthetical) - $ / shares	Dec. 31, 2016	Mar. 31, 2016
Balance Sheet
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	26,805,270	26,805,270
Common stock, shares outstanding	26,805,270	26,805,270

Statements of Operations

Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Income Statement
Revenues
Operating Costs and Expenses
Research and development expense	86,872	4,370	268,674	6,695
General and administrative expenses	136,927	169,027	506,676	420,423
Total operating costs and expenses	223,799	173,397	775,350	427,118
Income (loss) from operations	(223,799)	(173,397)	(775,350)	(427,118)
Other Income and (Expenses)
Interest expense	3,508		11,372
Gain (loss) on foreign exchange		107,884		107,884
Total other income and (expenses)	(3,508)	107,884	(11,372)	107,884
Net income (loss)	$ (227,307)	$ (65,513)	$ (786,722)	$ (319,234)
Basic and diluted earnings (loss) per share	$ (0.01)	$ 0	$ (0.03)	$ (0.02)
Weighted average common shares outstanding - basic and diluted	26,805,000	14,824,000	26,805,000	14,824,000

Statements of Cash Flows

Statements of Cash Flows - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (227,307)	$ (65,513)	$ (786,722)	$ (319,234)
Adjustments to reconcile net loss to net cash used by operating activities:
Accretion to notes payable to related party			346
Changes in operating assets and liabilities:
(Increase) decrease in accounts payable and accrued expenses			152,017	(156,513)
(Increase) decrease in accrued technology fee			11,026	89,429
(Increase) decrease in due to officers			(6,420)	2,713
Net cash provided by (used in) operating activities			(629,753)	(383,605)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from related party notes payable			55,022	34,253
Repayments of related party notes payable			26,584
Proceeds from stock subscriptions			560,000	450,000
Net cash provided by financing activities			588,438	484,253
Net increase (decrease) in cash			(41,315)	100,648
Cash, beginning of period			52,110	209
Cash, end of period	$ 10,795	$ 100,857	$ 10,795	$ 100,857

Organization and Description of

Organization and Description of The Business	9 Months Ended
	Dec. 31, 2016
Notes
Organization and Description of The Business	NOTE 1 - ORGANIZATION AND DESCRIPTION OF THE BUSINESS Cantabio Pharmaceuticals Inc. (the “Company” or “Cantabio”) is a preclinical stage biotechnology company focusing on commercializing novel therapies and the intellectual property generated from research and development activities for Parkinson’s disease (PD) and Alzheimer’s disease (AD). The Company’s strategy involves integration of therapeutic focus, the targeting of family biophysics, drug discovery technology and expertise into an innovative drug discovery approach, all of which synergize to identify and develop small molecule pharmacological chaperones for clinical trials. In addition, the Company’s research efforts concentrate on the development of therapeutic proteins that can pass through the blood-brain barrier and supplement in vivo levels of proteins which display loss of function during disease conditions.

Liquidity and Going Concern Dis

Liquidity and Going Concern Disclosure	9 Months Ended
	Dec. 31, 2016
Notes
Liquidity and Going Concern Disclosure	NOTE 2 - LIQUIDITY AND GOING CONCERN The accompanying financial statements have been prepared in conformity with the accounting principles generally accepted in the United States of America (“U.S. GAAP”) which contemplate continuation of the Company as a going concern. As of December 31, 2016, the Company had a working capital deficit of $596,507 and historical and expected cash outflows from operations. These factors and others raise substantial doubt about the Company's ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon its ability to raise additional capital and achieve profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Dec. 31, 2016
Notes
Summary of Significant Accounting Policies	NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements include the accounts of the Company and its subsidiaries. All material intercompany balances and transactions have been eliminated. The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. GAAP for interim financial information and pursuant to the instructions to Form 10-Q and Article 8 of Regulation S-X of the Securities and Exchange Commission (“SEC”) and on the same basis as the Company prepares its annual audited consolidated financial statements. The condensed consolidated balance sheet as of December 31, 2016, condensed consolidated statements of operations for the three and nine months ended December 31, 2016 and 2015, and the condensed consolidated statements of cash flows for the nine months ended December 31, 2016 and 2015 are unaudited, but include all adjustments, consisting only of normal recurring adjustments, which the Company considers necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The results for the three and nine months ended December 31, 2016 are not necessarily indicative of results to be expected for the year ended December 31, 2016 or for any future interim period. The condensed consolidated balance sheet at December 31, 2016 has been derived from audited financial statements; however, it does not include all of the information and notes required by U.S. GAAP for complete financial statements. The accompanying interim period unaudited condensed financial statements and related financial information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Form 10-K. There have been no material changes in the Company’s significant accounting policies to those previously disclosed in the 2016 Annual Report. Adoption of Recent Accounting Pronouncements Fiscal 2017 Accounting Pronouncement Adoptions Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU No. 2014-15”) that will require management to evaluate whether there are conditions and events that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the financial statements are issued on both an interim and annual basis. Management will be required to provide certain footnote disclosures if it concludes that substantial doubt exists or when its plans alleviate substantial doubt about the Company’s ability to continue as a going concern. The Company adopted ASU No. 2014-15 in the first quarter of fiscal 2017, and its adoption did not have a material impact on the Company’s financial statements. Recent Accounting Pronouncements Fiscal 2019 Accounting Pronouncement Adoptions Leases In February 2016, the FASB issued ASU No. 2016-02, Leases ("ASU 2016-02"). The standard amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 will be effective beginning in the first quarter of 2019. Early adoption of ASU 2016-02 is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently evaluating the impact of adopting ASU 2016-02 on our consolidated financial statements.

Notes Payable To Related Party

Notes Payable To Related Party Disclosure	9 Months Ended
	Dec. 31, 2016
Notes
Notes Payable To Related Party Disclosure	NOTE 4 - NOTES PAYABLE TO RELATED PARTY Gergely Toth On September 13, 2016, Gergely Toth, the Company CEO, advanced the Company approximately $10,000 under a note. The note bore no interest and was payable on demand. This $10,000 note was repaid on October 18, 2016. Eden Professional Ltd On July 22, 2016, the Company repaid approximately $15,000 to satisfy a loan note from Eden Professional Ltd, the service company of the Company CFO. Max Zhu On December 8, 2016, Max Zhu, an investor and consultant to the Company, advanced the Company $45,000 under a note. The note is repayable within six months. The note attracts interest at 13% up to the end of the term, and 18% thereafter.

Related Party Transactions Disc

Related Party Transactions Disclosure	9 Months Ended
	Dec. 31, 2016
Notes
Related Party Transactions Disclosure	NOTE 5 - RELATED PARTY TRANSACTIONS Consulting agreements with Company directors On July 1, 2016, the Company entered into consulting agreements with Toth and Associates Ltd for Dr. Toth to act as the Company’s CEO (monthly salary approximately $12,000 ), with Capro Ltd for Dr. Thomas Sawyer to act as the Company’s COO (monthly salary approximately $10,000 ), and with Eden Professional Ltd for Mr. Simon Peace to act as the Company’s CFO (monthly salary approximately $6,000 ). The Company incurred consulting fees for the nine months ended December 31, 2016, and held balances payable at December 31, 2016, as follows: Expense recognized in the 3 months to December 31, 2016 Expense recognized in the 9 months to December 31,2016 Accounts payable at December 31, 2016 Fees Fees Toth and Associates Ltd $36,000 $108,000 $98,000 Capro Ltd $30,000 $90,000 $83,000 Eden Professional Ltd $19,000 $57,000 $75,000 Total $85,000 $255,000 $256,000

Capital Stock Disclosure

Capital Stock Disclosure	9 Months Ended
	Dec. 31, 2016
Notes
Capital Stock Disclosure	NOTE 6 - CAPITAL STOCK Stock Subscriptions On October 17, 2016 the Company received investment funds of $75,000 under a syndicate agreement. In the nine months to December 31, 2016 the Company received stock subscriptions totalling $560,000 from a syndicate of investors who signed a memorandum of understanding on April 12, 2015, a subscription agreement on October 31, 2015, and an addendum to the October 2015 subscription agreement (the Syndicate).

Subsequent Events

Subsequent Events	9 Months Ended
	Dec. 31, 2016
Notes
Subsequent Events	NOTE 7 - SUBSEQUENT EVENTS Definitive Funding Agreement On January 25, 2017 the Company entered into a definitive agreement with an affiliate investment fund managed by Yorkville Advisors Global for the sale of up to $600,000 of convertible debentures. The Company closed on the initial tranche of $300,000 on January 25, 2017 and is scheduled to close on an additional $150,000 upon the filing of a registration statement registering for resale the shares of common stock underlying the convertible debentures and an additional $150,000 upon the effectiveness of such registration statement. The conversion of the Yorkville debentures shall be at the lower of $0.3107 or a 7% discount to market, with a floor price of $0.10. Gergely Toth On January 3, 2017, Gergely Toth advanced the Company approximately $4,000 under a note. The note bore no interest and was payable on demand. That note was repaid on February 1, 2017.

Summary of Significant Accoun13

Summary of Significant Accounting Policies: Basis of Presentation Policy (Policies)	9 Months Ended
	Dec. 31, 2016
Policies
Basis of Presentation Policy	Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements include the accounts of the Company and its subsidiaries. All material intercompany balances and transactions have been eliminated. The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. GAAP for interim financial information and pursuant to the instructions to Form 10-Q and Article 8 of Regulation S-X of the Securities and Exchange Commission (“SEC”) and on the same basis as the Company prepares its annual audited consolidated financial statements. The condensed consolidated balance sheet as of December 31, 2016, condensed consolidated statements of operations for the three and nine months ended December 31, 2016 and 2015, and the condensed consolidated statements of cash flows for the nine months ended December 31, 2016 and 2015 are unaudited, but include all adjustments, consisting only of normal recurring adjustments, which the Company considers necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The results for the three and nine months ended December 31, 2016 are not necessarily indicative of results to be expected for the year ended December 31, 2016 or for any future interim period. The condensed consolidated balance sheet at December 31, 2016 has been derived from audited financial statements; however, it does not include all of the information and notes required by U.S. GAAP for complete financial statements. The accompanying interim period unaudited condensed financial statements and related financial information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Form 10-K. There have been no material changes in the Company’s significant accounting policies to those previously disclosed in the 2016 Annual Report.

Summary of Significant Accoun14

Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies)	9 Months Ended
	Dec. 31, 2016
Policies
Recent Accounting Pronouncements	Adoption of Recent Accounting Pronouncements Fiscal 2017 Accounting Pronouncement Adoptions Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU No. 2014-15”) that will require management to evaluate whether there are conditions and events that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the financial statements are issued on both an interim and annual basis. Management will be required to provide certain footnote disclosures if it concludes that substantial doubt exists or when its plans alleviate substantial doubt about the Company’s ability to continue as a going concern. The Company adopted ASU No. 2014-15 in the first quarter of fiscal 2017, and its adoption did not have a material impact on the Company’s financial statements. Recent Accounting Pronouncements Fiscal 2019 Accounting Pronouncement Adoptions Leases In February 2016, the FASB issued ASU No. 2016-02, Leases ("ASU 2016-02"). The standard amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 will be effective beginning in the first quarter of 2019. Early adoption of ASU 2016-02 is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently evaluating the impact of adopting ASU 2016-02 on our consolidated financial statements.

Related Party Transactions Di15

Related Party Transactions Disclosure: Schedule of Consulting Fees and Balances (Tables)	9 Months Ended
	Dec. 31, 2016
Tables/Schedules
Schedule of Consulting Fees and Balances	Expense recognized in the 3 months to December 31, 2016 Expense recognized in the 9 months to December 31,2016 Accounts payable at December 31, 2016 Fees Fees Toth and Associates Ltd $36,000 $108,000 $98,000 Capro Ltd $30,000 $90,000 $83,000 Eden Professional Ltd $19,000 $57,000 $75,000 Total $85,000 $255,000 $256,000

Liquidity and Going Concern D16

Liquidity and Going Concern Disclosure (Details)	Dec. 31, 2016USD ($)
Details
working capital deficit	$ 596,507

Notes Payable To Related Part17

Notes Payable To Related Party Disclosure (Details) - USD ($)	Jan. 03, 2017	Dec. 31, 2016	Dec. 31, 2015
Proceeds from related party notes payable		$ 55,022	$ 34,253
Repayments of related party notes payable		26,584
Gergely Toth
Proceeds from related party notes payable	$ 4,000	10,000
Repayments of related party notes payable		10,000
Eden Professional LTD
Repayments of related party notes payable		15,000
Max Zhu
Proceeds from related party notes payable		$ 45,000

Related Party Transactions Di18

Related Party Transactions Disclosure (Details)	Dec. 31, 2016USD ($)
Toth and Associates LTD
Monthly salary	$ 12,000
Capro LTD
Monthly salary	10,000
Eden Professional LTD
Monthly salary	$ 6,000

Related Party Transactions Di19

Related Party Transactions Disclosure: Schedule of Consulting Fees and Balances (Details)	3 Months Ended	9 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Consulting expenses	$ 85,000	$ 255,000
Accounts payable, related parties	256,000	256,000
Toth and Associates LTD
Consulting expenses	36,000	108,000
Accounts payable, related parties	98,000	98,000
Capro LTD
Consulting expenses	30,000	90,000
Accounts payable, related parties	83,000	83,000
Eden Professional LTD
Consulting expenses	19,000	57,000
Accounts payable, related parties	$ 75,000	$ 75,000

Capital Stock Disclosure (Detai

Capital Stock Disclosure (Details)	9 Months Ended
	Dec. 31, 2016USD ($)
Syndicate Agreement, October 17, 2016
Stock subscriptions	$ 75,000
Syndicate Agreement, October 31, 2015
Stock subscriptions	$ 560,000

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	Jan. 03, 2017	Jan. 25, 2017	Dec. 31, 2016	Dec. 31, 2015
Proceeds from related party notes payable			$ 55,022	$ 34,253
Gergely Toth
Proceeds from related party notes payable	$ 4,000		$ 10,000
Definitive Funding Agreement
Proceeds from convertible debt		$ 300,000