PharmaCyte Biotech(US:PMCB)2024-08-13 20:37Investment Risks - The company holds securities of other public companies, including Notes, MYMD Preferred Shares, Femasys Warrants, and MyMD Warrants, which may expose it to investment company classification risks under the Investment Company Act of 1940[401][405]. - The Notes are convertible at a price of $1.18 per share, and if converted when the market price is lower, the company may incur losses[402]. - The company may incur additional expenses and operational challenges if deemed an investment company under the 1940 Act, which could restrict its business activities[407][408]. Financial Position - As of April 30, 2024, the company has federal net operating loss carryforwards of approximately $57 million and state net operating losses of about $27 million, which may begin to expire in 2024[414]. Management and Operations - The company has experienced significant management changes, including a new Chief Executive Officer and Board, which could increase control risks and affect business operations[409]. - The company is highly dependent on its Chief Executive Officer and Chief Financial Officer, with only 2 full-time employees as of April 30, 2024, making recruitment and retention critical for success[411]. - The company anticipates significant growth in operations, particularly in drug development and regulatory affairs, which may strain its managerial and operational systems[416]. External Risks - The company faces risks from unfavorable global economic conditions, including potential supply chain disruptions due to geopolitical tensions and sanctions[417][419]. - The company operates globally, facing complex legal and regulatory requirements that expose it to various financial and operational risks[421].