| Summary of Significant Accounting Policies | Note 2 Summary of Significant Accounting Policies: Basis of Presentation The accompanying financial statements have been
prepared in accordance with U.S. GAAP. Any reference in these notes to applicable guidance is meant to refer to the authoritative U.S.
GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the
Financial Accounting Standards Board (“FASB”). In the opinion of management, the unaudited condensed
financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the
balances and results for the periods presented. The interim results for the six months ended June 30, 2024 are not necessarily indicative
of the results to be expected for the year ending December 31, 2024 or for any future interim periods. The accompanying unaudited condensed consolidated
financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s
Annual Report on Form 20-F as of and for the year ended December 31, 2023. Use of Estimates The preparation of the financial statements in
conformity with U.S. GAAP requires management to make estimates and assumptions that affect amounts reported of assets and liabilities
at the date of the financial statements and the reported amounts of expenses during the reporting periods. Actual results could differ
from those estimates and be based on events different from those assumptions. As part of these unaudited interim condensed financial statements,
the Company’s significant estimates include the valuation allowance related to the Company’s deferred tax assets, the pension
benefit obligation, and stock compensation. Concentration of Credit Risk Financial instruments that potentially subject
the Company to concentration of credit risk include cash. At June 30, 2024 and 2023, substantially all of the cash balances are deposited
in one banking institution. At various times, the Company has deposits in financial institutions which are in excess of federally insured
limits. Functional Currency The Company has operations in Switzerland
and the United States. The Company’s functional currency is the U.S. dollar (“USD”). The results of its non-USD
based operations are translated to USD at the average exchange rates during the year. The Company’s assets and liabilities are
translated using the current exchange rate as of the balance sheet date and shareholders’ equity is translated using
historical rates. Foreign exchange transaction gains and losses are included in other income/expense in the Company’s results
of operations and comprehensive loss. Revenue Recognition As of June 30, 2024, the Company has not recognized
any revenue from its exclusive license agreement (the “EF License Agreement”), as the upfront payment the Company received
has been deferred. The EF License Agreement is to develop and commercialize its product candidate, Nolazol, in Latin American countries
with Eurofarma Laboratorios S.A (“Eurofarma”), a Brazilian pharmaceutical company. The EF License Agreement which was terminated
subsequent to June 30, 2024, was accounted for within the scope of ASC 606, “ Revenue from Contract with Customers Subsequent Events. Under ASC 606, an entity recognizes revenue when
its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive
in exchange for those goods or services. To determine the appropriate amount of revenue to be recognized for arrangements determined to
be within the scope of ASC 606, the Company performs the following five steps: (i) identification of the promised goods or services in
the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct
in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation
of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance
obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect consideration it
is entitled to in exchange for the goods or services it transfers to the customer. Performance obligations are promised goods or
services in a contract to transfer a distinct good or service to the customer and are considered distinct when (i) the customer can benefit
from the good or service on its own or together with other readily available resources and (ii) the promised good or service is separately
identifiable from other promises in the contract. In assessing whether promised goods or services are distinct, the Company considers
factors such as the stage of development of the underlying intellectual property, the capabilities of the customer to develop the intellectual
property on its own or whether the required expertise is readily available and whether the goods or services are integral to or dependent
on other goods or services in the contract. The Company estimates the transaction price based
on the amount expected to be received for transferring the promised goods or services in the contract. The consideration may include fixed
consideration or variable consideration. At the inception of each arrangement that includes variable consideration, the Company evaluates
the amount of potential payments and the likelihood that the payments will be received. The Company utilizes either the most likely amount
method or expected amount method to estimate the amount expected to be received based on which method best predicts the amount expected
to be received. The amount of variable consideration which is included in the transaction price may be constrained and is included in
the transaction price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized
will not occur in a future period. The Company allocates the transaction price based
on the estimated stand-alone selling price of each of the performance obligations. The Company must develop assumptions that require judgment
to determine the stand-alone selling price for each performance obligation identified in a contract with a customer. The Company utilizes
key assumptions to determine the stand-alone selling price for service obligations, which may include other comparable transactions, pricing
considered in negotiating the transaction and the estimated costs. Additionally, in determining the stand-alone selling price for material
rights, the Company may reference comparable transactions, clinical trial success probabilities, and develop estimates of option exercise
likelihood. Any variable consideration is allocated specifically to one or more performance obligations in a contract when the terms of
the variable consideration relate to the satisfaction of the performance obligation and the resulting amounts allocated are consistent
with the amounts the Company would expect to receive for the satisfaction of each performance obligation. The consideration allocated to each performance
obligation is recognized as revenue when control is transferred for the related goods or services. For performance obligations which consist
of licenses and other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine
whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of
measuring progress. The Company evaluates the measure of progress at each reporting period and, if necessary, adjusts the measure of performance
and related revenue recognition. Development and regulatory milestone payments
are assessed under the most likely amount method and constrained if it is probable that a significant revenue reversal would occur. Milestone
payments that are not within the Company’s control or the licensee’s control, such as regulatory approvals, are not considered
probable of being achieved until those approvals are received. At the end of each reporting period, the Company re-evaluates the probability
of achievement of such development milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction
price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect license revenues in the period of adjustment.
To date, the Company has not recognized any consideration related to the achievement of development, regulatory, or commercial milestone
revenue resulting from the EF License Agreement. For revenue related to sales-based royalties received
from licensees, including milestone payments based on the level of sales, where the license is deemed to be the predominant item to which
the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation
to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). To date, the Company has not recognized
any consideration related to sales-based royalty revenue resulting from any of the Company’s license agreement. To the extent the Company receives payments, including
non-refundable payments, in excess of the recognized revenue, such excess is recorded as deferred revenue until the Company performs its
obligations under these arrangements. Amounts are recorded as accounts receivable when the Company’s right to consideration is unconditional. Costs for research and development (“R&D”)
of products, including vendor expenses and supplies and consultant fees, are expensed as incurred. Clinical trial and other development
costs incurred by third parties are expensed as the contracted work is performed. Where contingent milestone payments are due to third
parties under research and development arrangements, the obligations are recorded when the milestone results are probable of being achieved. Fair Value Measurements The Company measures and discloses fair value
in accordance with ASC 820, “ Fair Value,” Level 1 - unadjusted quoted prices are available
in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date. Level 2 - pricing inputs are other than quoted
prices in active markets that are directly observable for the asset or liability or indirectly observable through corroboration with observable
market data. Level 3 - pricing inputs are unobservable for
the non-financial asset or liability and only used when there is little, if any, market activity for the non-financial asset or liability
at the measurement date. The inputs into the determination of fair value require significant management judgment or estimation. Fair value
is determined using comparable market transactions and other valuation methodologies, adjusted as appropriate for liquidity, credit, market
and/or other risk factors. This hierarchy requires the Company to use observable
market data, when available, and to minimize the use of unobservable inputs when determining fair value. The Company’s cash and cash equivalents
are carried at fair value, determined according to the fair value hierarchy described above. The carrying value of the Company’s
accounts payable and accruals approximates its fair value due to the short-term nature of these liabilities. Income Taxes The Company accounts for income taxes using the
asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences
of events that have been recognized in the financial statements or in the Company’s tax returns. Deferred taxes are determined based
on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years
in which the differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income
taxes. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent
it believes, based upon the weight of available evidence, that it is more likely than not that all or a portion of the deferred tax assets
will not be realized, a valuation allowance is established through a charge to income tax expense. Potential for recovery of deferred
tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies. Due to the fact that the Company has a history
of generating losses, and expects to generate losses in the foreseeable future, a full valuation allowance has been recorded. The Company
accounts for uncertain tax positions in accordance with an amendment to ASC Topic 740-10, “ Income Taxes ( Accounting
for Uncertainty in Income Taxes),” which clarified the accounting for uncertainty in tax
positions. This amendment provides that the tax effects from an uncertain tax position can be recognized in the financial statements only
if the position is “more-likely-than-not” to be sustained were it to be challenged by a taxing authority. The assessment
of the tax position is based solely on the technical merits of the position, without regard to the likelihood
that the tax position may be challenged. If an uncertain tax position meets the “more-likely-than-not” threshold, the largest
amount of tax benefit that is more than 50% likely to be recognized upon ultimate settlement with the taxing authority is recorded. Employee Benefits (including Post Retirement Benefits) The Company operates the mandatory pension plan
for its employees in Switzerland. The plan is generally funded through payments to insurance companies or trustee-administered funds.
The Company has a pension plan designed to pay pensions based on accumulated contributions on individual savings accounts. However, this
plan is classified as a defined benefit plan under ASC 960 “Plan Accounting – Defined Benefit Pension Plans The net defined benefit liability is the present
value of the defined benefit obligation at the balance sheet date minus the fair value of plan assets. The defined benefit obligation
is calculated annually by independent actuaries using the projected unit credit method, which reflects services rendered by employees
to the date of valuation, incorporates assumptions concerning employees’ projected salaries, pension increases as well as discount
rates of highly liquid corporate bonds which have terms to maturity approximating the terms of the related liability. Remeasurements of the net defined benefit liability,
which comprise actuarial gains and losses, and the return on plan assets (excluding interest), are recognized immediately in Other Comprehensive
Loss. Past service costs, including curtailment gains or losses, are recognized immediately as an allocation between research and development
and general and administrative expenses within the operating results. Settlement gains or losses are recognized in either research and
development and/or general and administrative expenses within the operating results. The Company determines the net interest expense (income)
on the net defined benefit liability for the period by applying the discount rate used to measure the defined benefit obligation at the
beginning of the annual period or in case of any significant events between measurement dates to the then-net defined benefit liability,
taking into account any changes in the net defined benefit liability during the period as a result of contributions and benefit payments.
Net interest expense and other expenses related to defined benefit plans are recognized in the statement of operations and comprehensive
loss. Stock-Based Compensation The Company measures all stock-based awards granted
based on the fair value on the date of the grant and recognizes compensation expense with respect to those awards over the requisite service
period, which is generally the vesting period of the respective award. Generally, the Company issues awards with only service-based vesting
conditions and records the expense for these awards using the straight-line method. The Company recognizes forfeitures related to stock-based
compensation awards as they occur and reverses any previously recognized compensation cost associated with forfeited awards in the period
the forfeiture occurs. The Company classifies stock-based compensation
expense in the accompanying consolidated statements of operations and comprehensive loss in the same manner in which the award recipients’
payroll costs are classified or in which the award recipients’ service payments are classified. The fair value of each stock option is estimated
on the date of grant using the Black-Scholes option-pricing model (“Black-Scholes”). Black-Scholes requires a number of assumptions,
of which the most significant are share price, expected volatility, expected option term (the time from the grant date until the options
are exercised or expire), risk-free rate and expected dividend rate. The grant date fair value of a common share is determined by the
board of directors (the “Board of Directors”) considering, among other factors, the assistance of a valuation specialist and
management. The grant date fair value of a common share is determined using the valuation methodologies, which utilize certain assumptions,
including probability weighting of events, volatility, time to liquidation, risk-free interest rate and discount for lack of marketability. Earnings per Share Basic net loss per common share is computed by
dividing the net loss applicable to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted
loss per common share is computed similar to basic loss per share, except that the denominator is increased to include the number of additional
potential common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares
were dilutive. Potential common shares are excluded from the computation for a period in which a net loss is reported or if their effect
is anti-dilutive. The Company’s potential common shares consist of warrants and options to purchase common shares. As of June 30,
2024, the Company had 575,878 warrants and 38,873 options to purchase common shares. As of June 30, 2023, the Company had 476,126 warrants
and 46,593 options to purchase common shares. Segment Reporting The Company manages its operations as a single
segment for the purposes of assessing performance and making operating decisions. The Company’s singular focus is on developing
therapeutics for the treatment of neurobehavioral and neurocognitive disorders. All of the Company’s tangible assets are held in
Switzerland. Recently Issued
Accounting Standards Not Yet Effective The Company has implemented all the new accounting
pronouncements that are in effect and that may impact its consolidated financial statements and does not believe that there are any other
new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
