UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~March~~June 3130, 2023

Oror

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission file number 333-222631

SOUL BIOTECHNOLOGY CORP

(Exact name of registrant as specified in its charter)

Nevada

82-3155323

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer

Identification No.)

8742

(Primary Standard Industrial Classification Code Number)

36 Fourth Ave. N, Yorkton Saskatchewan, Canada		S3N 2V7
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code (306) 563-4123

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of exchange on which registered
N/A		N/A		N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☐ Yes ☒ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☐ Yes ☒ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated Filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act.) ☐ Yes ☒ No

The number of shares outstanding of the registrant’s common stock as of ~~May~~September 1527, 2023 was ~~644~~598,~~889~~545,~~500~~644 shares.

DOCUMENTS INCORPORATED BY REFERENCE — NONE

SOUL BIOTECHNOLOGY CORPORATION

QUARTERLY REPORT ON FORM 10-Q

FOR THE THREE AND SIX MONTHS ENDED ~~MARCH~~JUNE 3130, 2023 (UNAUDITED)

Part I – FINANCIAL INFORMATION
Item 1.	~~Consolidated financial statements (unaudited)~~	Consolidated financial statements (unaudited)	1	1
Item 2.	~~Management’s Discussion and Analysis of Financial Condition and Results of Operations~~	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14	15
Item 3.	~~Quantitative and Qualitative Disclosures about Market Risk~~	Quantitative and Qualitative Disclosures about Market Risk	18	19
Item 4.	~~Controls and Procedures~~	Controls and Procedures	18	19
Part II – OTHER INFORMATION
Item 1.	~~Legal Proceedings~~	Legal Proceedings	20	21
Item 1A.	~~Risk Factors~~	Risk Factors	20	21
Item 2.	~~Unregistered Sales of Equity Securities and Use of Proceeds~~	Unregistered Sales of Equity Securities and Use of Proceeds	20	21
Item 3.	~~Defaults Upon Senior Securities~~	Defaults Upon Senior Securities	20	21
Item 4.	~~Mine Safety Disclosures~~	Mine Safety Disclosures	20	21
Item 5.	~~Other Information~~	Other Information	20	21
Item 6.	~~Exhibits~~	Exhibits	21	22
SIGNATURES			22	23

PART I FINANCIAL INFORMATION

Item 1. Consolidated financial statements.

Index to Consolidated financial statements

		Page
CONSOLIDATED FINANCIAL STATEMENTS:
Consolidated Balance Sheets, March 31, 2023 (unaudited), and December 31, 2022		2
Consolidated Balance Sheets, June 30, 2023 (unaudited), and December 31, 2022		2
Unaudited Consolidated Statements of Operations the Three Months Ended March 31, 2023, and 2022		3
Unaudited Consolidated Statements of Operations the Three and Six Months Ended June 30, 2023, and 2022		3
Unaudited Consolidated Statements of Changes in Stockholders’ Deficit for the Three Months Ended March 31, 2023, and 2022		4
Unaudited Consolidated Statements of Changes in Stockholders’ Deficit for the Six Months Ended June 30, 2023, and 2022		4
Unaudited Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2023, and 2022		5
Unaudited Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2023, and 2022		5
Notes to the Unaudited Interim Consolidated Financial Statements		6

SOUL BIOTECHNOLOGY CORP.

~~Consolidated~~ Balance Sheets

	March 31,			December 31,
	June 30,			December 31,
	2023			2022
	(Unaudited)
Assets
Current assets
Cash and cash equivalents	$	10,~~249~~773		$	41,808
Accounts receivable		~~8,287~~580			1,344
Inventory		1838,~~023~~138			35,281
Prepaid and other assets		1,~~180~~206			1,179
Total current assets		3750,~~738~~697			79,612
Goodwill		~~512,196~~-			512,196
Intangible assets		781,~~316~~272,303			88,923
Total assets	$	~~628~~1,~~250~~323,000		$	680,731
Liabilities and Stockholders’ Equity (Deficit)
Liabilities and Stockholders’ Deficit
Current Liabilities
Accrued payable and accrued liabilities	$	5049,~~214~~873		$	42,953
Common stock payable		~~273,989~~-			843,878
Due to related parties		~~227~~230,~~953~~264			227,704
Total current liabilities		~~552~~280,~~156~~137			1,114,535
Government loans		2930,~~556~~212			29,532
Total liabilities		~~581~~310,~~712~~349			1,144,067
Stockholders’ Equity (Deficit)
Common stock, Par Value $0.001, 700,000,000 shares authorized, 644,889,500 and 75,000,000 shares issued and outstanding of shares as of March 31, 2023 and December 31, 2022, respectively		644,890			75,000
Common stock, Par Value $0.001, 700,000,000 shares authorized, 598,545,644 and 75,000,000 shares issued and outstanding of shares as of June 30, 2023 and December 31, 2022, respectively		598,546			75,000
Additional paid in capital		252,~~740~~080,075			25,740
Accumulated deficit		(~~586~~1,~~186~~620,526	)		(525,881	)
Accumulated other comprehensive loss		(3745,~~905~~444	)		(38,195	)
Total stockholders’ equity (deficit)		461,~~538~~012,651			(463,336	)
Total liabilities and stockholders’ equity (deficit)	$	~~628~~1,~~250~~323,000		$	680,731

The accompanying notes are an integral part of these unaudited financial statements

SOUL BIOTECHNOLOGY CORP.

~~Consolidated~~ Statements of Operations

(Unaudited)

	For the Three Months Ended						For the Six Months Ended
	March 31,
	June 30,						June 30,
	2023			2022			2023			2022
Revenue
Revenue, net
Revenue, net	$	7523,~~413~~515		$	6435,~~731~~293		$	60,611		$	80,773
Cost of sales		294,~~127~~854			1523,~~305~~831			20,239			39,137
Gross profit		46,285			49,426
Gross margin		18,660			11,462			40,372			41,635
Operating expenses
General and administrative expenses		6815,~~913~~637			4712,~~907~~339			55,770			32,174
Professional fees		2623,~~556~~701			28140,~~029~~865			50,258			168,892
Amortization of intangible assets		10416,~~679~~689			711,~~610~~338			427,369			18,948
Total operating expenses		106,149			83,546
Impairment of goodwill and intangible		590,512			-			590,512			-
Loss from operations		(59,864	)		(34,120	)
Total operating expenses		1,046,539			164,542			1,123,908			220,014
Other income (expense)
Loss from operations		(1,027,879	)		(153,080	)		(1,083,536	)		(178,378	)
Interest income (expense)		(441	)		-
Other income (expense)
Total other income (expenses), net		(441	)		-
Interest income (expense)		(236	)		(843	)		(677	)		(843	)
Loss from operations before income taxes		(60,305	)		(34,120	)
Total other income (expense)		(236	)		(843	)		(677	)		(843	)
Income tax expense		-			-
Loss from continuing operations before income taxes		(1,028,115	)		(153,923	)		(1,084,213	)		(179,222	)
Net Loss	$	(60,305	)	$	(34,120	)
Provision (benefit) for income taxes		-			-			-			-
Basic and diluted loss per share	$	(0.00	)	$	(0.00	)
Loss from continuing operations		(1,028,115	)		(153,923	)		(1,084,213	)		(179,222	)
Weighted average number of shares outstanding		644,889,500			51,716,328
Loss from discontinued operations		(6,224	)		(6,482	)		(10,432	)		(15,303	)
Comprehensive loss:
Net loss	$	(1,034,339	)	$	(160,404	)	$	(1,094,645	)	$	(194,524	)
Net loss	$	(60,305	)	$	(34,120	)
Basic and diluted loss per share:
Foreign currency translation adjustment		-			-
Loss from continuing operations	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)
Comprehensive loss	$	(60,305	)	$	(34,120	)
Loss from discontinued operations	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)
Weighted average number of shares outstanding		621,717,572			75,000,000			598,545,644			63,422,483
Comprehensive loss:
Net loss	$	(1,034,339	)	$	(160,404	)	$	(1,094,645	)	$	(194,524	)
Foreign currency translation adjustment		(7,539	)		(16,671	)		(7,249	)		(16,671	)
Comprehensive loss	$	(1,041,878	)	$	(177,076	)	$	(1,101,894	)	$	(211,196	)

The accompanying notes are an integral part of these unaudited financial statements

SOUL BIOTECHNOLOGY CORP.

~~Consolidated~~ Statements of Changes in Shareholders’ Deficit

(Unaudited)

							Accumulated
					Additional		Other						Total
	Common Stock				Paid-in		Comprehensive			Accumulated			Stockholders’
	Shares		Value		Capital		Income			Deficit			Deficit
Balance, December 31, 2021		23,889,500	$	23,890	$	25,740	$	-		$	(183,311	)	$	(133,681	)
Shares issued with the acquisition of MySpray		51,110,500		51,110										51,110
Net loss				-		-		-			(34,120	)		(34,120	)
Balance, March 31, 2022		75,000,000	$	75,000	$	25,740	$	-		$	(217,431	)	$	(116,691	)
Change in exchange rates								(16,671	)					(16,671	)
Net loss				-		-		-			(160,404	)		(160,404	)
Balance, June 30, 2022		75,000,000	$	75,000	$	25,740	$	(16,671	)	$	(377,835	)	$	(293,766	)

										Accumulated
							Additional			Other						Total
	Common Stock						Paid-in			Comprehensive			Accumulated			Stockholders’
	Shares			Value			Capital			Income			Deficit			Deficit
Balance, December 31, 2022		75,000,000		$	75,000		$	25,740		$	(38,195	)	$	(525,881	)	$	(463,336	)
Issuance of acquisition shares		569,889,500			569,890												569,890
Change in exchange rates											290						290
Net loss					-			-			-			(60,305	)		(60,305	)
Balance, March 31, 2023		644,889,500		$	644,890		$	25,740		$	(37,905	)	$	(586,186	)	$	46,538
Private placement issuance of shares		21,036,144			21,036			252,119									273,155
Issuance of shares for services -prior		6,000,000			6,000			71,125									77,125
Repurchase of common shares		(24,000,000	)		(24,000	)		(52,291	)								(76,291	)
Shares issued for purchase of intangible assets and service agreement		44,920,000			44,920			1,662,476									1,707,396
Capital contribution from officers		(95,000,000	)		(95,000	)		95,000									-
Private placement of shares		700,000			700			25,907									26,607
Change in exchange rates											(7,539	)					(7,539	)
Net loss					-			-			-			(1,034,339	)		(1,034,339	)
Balance, June 30, 2023		598,545,644		$	598,546		$	2,080,075		$	(45,444	)	$	(1,620,526	)	$	1,012,651

The accompanying notes are an integral part of these unaudited financial statements

SOUL BIOTECHNOLOGY CORP.

Consolidated Statements of Cash Flows

(Unaudited)

	For the Three Months Ended
	For the Six Months Ended
	March 31,
	June 30,
	2022			2021
	2023			2022
Cash Flows From Operating Activities
Net loss	$	(601,~~305~~094,645	)	$	(34194,~~120~~524	)
Amortization of intangible assets		10,679			7,610
Less : Loss form discontinued operation		(10,432	)		(15,303	)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss from continuing operations		(1,084,213	)		(179,222	)
Amortization of intangible assets		427,369			18,948
Impairment of goodwill and intangible assets		590,512			-
Adjustments to reconcile net income to net cash provided by operating activities:
Changes in operating assets and liabilities:
Accounts receivable		~~(6,943~~764	)		(~~1,039~~871	)
Inventory		17(2,~~258~~857	)		~~131~~(11,942	)
Common stock payable		-			4,540
Prepaid and other assets		(27	)
Accrued payable and accrued liabilities		76,~~262~~920			(134,~~427~~440	)
Net cash (used in) operating activities		(32,049	)		(36,304	)
Net cash used in operating activities -continuing operations		(61,533	)		(177,527	)
Net cash used in operating activities -discontinued operations		(10,432	)		(14,972	)
Net cash used in operating activities		(71,964	)		(192,499	)
Cash Flows from Investing Activities
Acquisition of a business net of cash acquired		-			19,981
Net cash provided by investing activities		-			19,981
Net cash (used in) provided by investing activities		-			19,981
Cash Flows From Financing Activities
Proceeds from related party loans, net of repayments		249			43,131
Proceeds from the sale of common stock		26,607			-
Net cash provided by financing activities		249			43,131
Common stock payable		-			206,917
Effect of exchange rates on cash and cash equivalents		240			-
Proceeds from related party loans, net of repayments		2,560			24,916
Net (decrease) increase in cash and cash equivalents		(31,560	)		26,807
Net cash provided by financing activities		29,167			231,833
Effect of exchange rates on cash and cash equivalents		11,762			14,045
Net (decrease) increase in cash and cash equivalents		(31,036	)		73,360
Cash and cash equivalents, beginning of year		41,808			9,499
Cash and cash equivalents, end of year	$	10,~~249~~773		$	3682,~~307~~859
Supplemental disclosure of cash flow information
Cash paid for income tax expense	$	-		$	-
Cash paid for interest expense	$	-		$	-

The accompanying notes are an integral part of these unaudited financial statements

SOUL BIOTECHNOLOGY CORPORATION

NOTES TO (UNAUDITED) CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND SIX MONTH PERIODS ENDED ~~MARCH~~JUNE 3130, 2023 AND 2022

NOTE 1 – ORGANIZATION AND DESCRIPTION OF THE BUSINESS

Basis of Presentation and Organization

Soul Biotechnology Corporation, f/k/a Adorbs Inc. (“Soul” or the “Company”) is a Nevada corporation. Adorbs was formerly a developmental stage corporation formed to provide organic children’s clothing designed to be cute, comfortable, and trendy. The Company was incorporated under the laws of the State of Nevada on October 18, 2017. On that date, the Company was authorized to issue 75,000,000 shares of common stock at $0.001 par value.

On February 10, 2022, the Company entered into a share exchange agreement (the “Share Exchange Agreement”) with MySpray Therapeutics Inc. (“MySpray”), a Saskatchewan, Canadian corporation, Nichol Martinuik (“Martinuik”) and Rachel Martinuik (“R. Martinuik”), the sole officers, directors, and shareholders of MySpray, Qatar Consulting Inc. & Company (“Qatar”), Broadway Creative Consultants Corp. (“Broadway”), and David Lazar (“Lazar”), as the sole officer and director of the Company and the managing member of Activist Investing LLC (“Activist”). Under the Share Exchange Agreement, One Hundred Percent (100%) of the ownership interest of MySpray was exchanged for (i) 51,110,500 shares of common stock of the Company at the Closing, and (ii) an additional 569,889,500 shares of common stock of ADOB, to be issued upon the increase in authorized shares of common stock of ADOB to 700,000,000, each of which is to be issued to Martinuik, R. Martinuik, Qatar, Broadway, and Activist, pro-rata, in accordance with the Share Exchange Agreement. The former stockholders of MySpray will acquire a majority of the issued and outstanding common stock as a result of the share exchange transaction. The transaction has been accounted for as a recapitalization of the Company, whereby MySpray is the accounting acquirer.

Immediately after completion of such share exchange, the Company will have a total of 644,889,500 issued and outstanding shares, with authorized share capital for common share of 700,000,000.

Consequently, the Company has ceased to fall under the definition of a shell company as defined in Rule 12b-2 under the Exchange Act of 1934, as amended (the “Exchange Act”) and MySpray is now a wholly-owned subsidiary.

On May 5, 2022, the Company filed a Certificate of Amendment with the state of Nevada increasing its authorized shares from 75,000,000 to 700,000,000 shares of $0.001 par value common stock. None of the additional 569,889,500 shares issuable under the terms of the Share Agreement, have been issued.

MySpray creates innovative and clinically developed products for the global natural health community in the areas of immune function, mental health, and pain management and is currently the license holder of 9 Natural Product Numbers (NPN) through the Natural and Non-prescription Health Products Directorate division of Health Canada.

MySpray is preparing to expand formulas to support clinical trials along with the licensing for research and development in the fields of mental health and the impact of treatment protocols with phytonutrients, medicinal mushrooms, and psychedelic compounds under our current “MyShrooms” brand. Also, MySpray is attempting end-to-end capabilities from substrate for growth, genetics, research, extraction, formulations, delivery, and distribution of the finished product. This could allow MySpray to maintain high-quality control and enable us to:

●

Create formulations for clinical trials.

●

Supply raw materials, standardized extracts, and medicinal compounds that are in high demand for ongoing academic research globally.

●

Provide finished products direct to consumer.

●

Offer white label manufacturing.

The Company changed its name to Soul Biotechnology Corporation on January 3, 2023.

On March 13, 2023, the sole existing director and officer resigned immediately. Accordingly, David Lazar, serving as a director and an officer, ceased to be the President, Chief Executive Officer, Chief Financial Officer, and as a Member of the Board of Directors of the Company. Also on March 13, 2023, Rachel Martinuik consented to the new CEO, CFO, Treasurer, and a Member of the Board of Directors of the Company and Nichol Martinuik consented to act as the new President, Secretary, and a Member of the Board of Directors of the Company.

Rachel Martinuik, 47, CEO and Chair of the board of MySpray, has been part of MySpray from inception. In her previous role as Chief Operating Officer, her responsibilities included the oversight of MySpray’s resources and oversees budgetary expenditures.

Nichol Martinuik, 47, President & Founder of MySpray, has been in health sciences, traditional medicine, and the natural health industry since 1997, gaining clinical experience in pain management, disease prevention, and therapeutic health solutions.

On June 1, 2023 the Company decided to transition from its current Clinic Operations to the establishment of a research laboratory. This strategic move was driven by the Company’s commitment to innovation and advancing the field of healthcare through research and development to include clinical trials of medicinal mushrooms, cannabinoids, and psychedelic compounds including psilocybin. All of the assets and results of operations from Clinic Operations have been treated as discontinued operations for all periods presented in the financial statements. See Note 4. Discontinued Operations.

The Company’s year-end is December 31.

All figures presented in this report are in US dollars unless stated otherwise.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING ASSUMPTIONS AND POLICIES

Basis of presentation

The accompanying consolidated financial statements have been prepared in accordance with the FASB’s ASC, which is the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary MySpray Therapeutics Inc. All intercompany accounts and transactions are eliminated in consolidation.

Discontinued Operations

The operations of the Company’s former Clinic Division has been presented as discontinued operations. Unless otherwise noted, amounts and disclosures throughout these Notes to Consolidated Financial Statements relate solely to continuing operations and exclude all discontinued operations. See Note 4 for additional information on discontinued operations.

Going Concern

The Company expects to generate operating cash flow that will be sufficient to fund presently anticipated operations although there can be no assurance. This raises substantial doubt about the Company’s ability to continue as a going concern. Therefore, the Company will need to raise additional funds and is currently exploring alternative sources of financing to supplement expected cash flow. Historically, the Company has raised capital through private placements, as an interim measure to finance working capital needs and may continue to raise additional capital through the sale of common stock or other securities and obtaining some short-term loans. The Company will be required to continue to do so until its operations become profitable.

The Company may attempt to raise capital in the near future through the sale of equity or debt financing; however, there can be assurances the Company will be successful in doing so. There can be no assurance that such additional financing will be available to the Company on acceptable terms or at all.

Management’s Representation of Interim Consolidated ~~financial~~Financial ~~statements~~Statements

The accompanying unaudited consolidated financial statements have been prepared by the Company without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The Company uses the same accounting policies in preparing quarterly and annual consolidated financial statements. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been or omitted as allowed by such rules and regulations, and management believes that the disclosures are adequate to make the information presented not misleading. These consolidated financial statements include all of the adjustments, which in the opinion of management are necessary tofor a fair presentation of financial position and results of operations. All such adjustments are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year.

Estimates

The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to ~~income~~the amortization period for intangible assets, income taxes and contingencies. The Company bases its estimates on historical experience, known or expected trends, and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these consolidated financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates.

Cash and Cash Equivalents

For purposes of reporting within the statements of cash flows, the Company considers all cash on hand, cash accounts not subject to withdrawal restrictions or penalties, and all highly liquid debt instruments purchased with a maturity of three months or less to be cash and cash equivalents. As of ~~March~~June 3130, 2023, and December 31, 2022, the on-hand cash balances were $10,~~249~~773 and $41,808, respectively.

Inventory

Inventory, is stated at the lower of cost or net realizable value with cost determined under the first-in, first-out (“FIFO”) method. As of ~~March~~June 3130, 2023, and December 31, 2022, inventory amounted to $1838,~~023~~138 and $35,281, respectively.

Goodwill and Intangible Assets

Goodwill represents the future economic benefit arising from other assets acquired that could not be individually identified and separately recognized. The goodwill arising from the Company’s acquisition is attributable to the value of the potential expanded market opportunity with new customers. Intangible assets have either an identifiable or indefinite useful life. Intangible assets with identifiable useful lives are amortized on a straight-line basis over their economic or legal life, whichever is shorter. The Company’s amortizable intangible assets consist primarily of customer relationships, trademarks, and product formulations. The useful life of these customer relationships is estimated to be three years. The Company also has purchased intellectual property which is amortized over a one year period.

Goodwill is not amortized but is subject to annual impairment testing unless circumstances dictate more frequent assessments. The Company performs an annual impairment assessment for goodwill during the fourth quarter of each year and more frequently whenever events or changes in circumstances indicate that the fair value of the asset may be less than the carrying amount. Goodwill impairment testing compares the fair value of the reporting unit to its carrying amount. The fair value of the reporting unit is determined by considering both the income approach and market approaches. The fair values calculated under the income approach and market approaches are weighted based on circumstances surrounding the reporting unit. Under the income approach, the Company determines fair value based on estimated future cash flows of the reporting unit, which are discounted to the present value using discount factors that consider the timing and risk of cash flows. For the discount rate, the Company relies on the capital asset pricing model approach, which includes an assessment of the risk-free interest rate, the rate of return from publicly traded stocks, the Company’s risk relative to the overall market, the Company’s size and industry and other Company-specific risks. Other significant assumptions used in the income approach include the terminal value, growth rates, future capital expenditures, and changes in future working capital requirements. The market approaches use key multiples from guideline businesses that are comparable and are traded on a public market. If the fair value of the reporting unit is greater than its carrying amount, there is no impairment. If the reporting unit’s carrying amount exceeds its fair value, then an impairment loss is recognized in an amount equal to the excess.

8Due to the discontinuation of Clinic Operations as described throughout this Report, during the three months ended June 30, 2023, the Company performed an impairment analysis and determined that its goodwill and intangible assets were fully impaired. As a result the Company recorded an impairment charge of $590,512 on its Statements of Operations for the three months ended June 30, 2023.

Revenue Recognition

The Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The guidance provided in Accounting Standards Codification (“ASC”) Topic 606 (“ASC 606”) requires entities to use a five-step model to recognize revenue by allocating the consideration from contracts to performance obligations on a relative standalone selling price basis. Revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. The standard also requires new disclosures regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. ASC 606 also includes Subtopic 340-40, Other Assets and Deferred Costs – Contracts with Customers, which requires the deferral of incremental costs of obtaining a contract with a customer.

Foreign Currency Translation

The functional and reporting currency of MySpray is the Canadian dollar. Monetary assets denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Average monthly rates are used to translate revenues and expenses.

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Exchange gains or losses arising from foreign currency transactions are included in the determination of net income for the respective periods.

Assets and liabilities of the Company’s operations are translated into the reporting currency, United States dollars, at the exchange rate in effect at the balance sheet dates. Revenue and expenses are translated at average rates in effect during the reporting periods. Equity transactions are recorded at the historical rate when the transaction occurred. The resulting translation adjustment is reflected as accumulated other comprehensive income, a separate component of stockholders’ equity in the statement of stockholders’ equity.

Differences may arise in the amount of bad debt expense, depreciation expense and amortization expense reported in the Company’s operating results as compared to the corresponding change in the allowance for doubtful accounts, accumulated depreciation, and accumulated amortization, respectively, due to foreign currency translation. These translation adjustments are reflected in accumulated other comprehensive income, a separate component of the Company’s stockholders’ equity.

Long-lived assets

The Company accounts for its long-lived assets in accordance with Financial Accounting Standard Board (“FASB”) ASC 360-10, “Property, Plant and Equipment” which requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses the recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset’s carrying value and fair value or disposal value.

Assets and liabilities of the Company’s operations are translated into the reporting currency, United States dollars, at the exchange rate in effect at the balance sheet dates. Revenue and expenses are translated at average rates in effect during the reporting periods. Equity transactions are recorded at the historical rate when the transaction occurs. The resulting translation adjustment is reflected as accumulated other comprehensive income, a separate component of stockholders’ equity in the statement of stockholders’ equity.

Income Taxes

The Company accounts for income taxes pursuant to FASB ASC Topic 740, Income Taxes. Under FASB ASC Topic 740, deferred tax assets and liabilities are determined based on temporary differences between the bases of certain assets and liabilities for income tax and financial reporting purposes. The deferred tax assets and liabilities are classified according to the financial statement classification of the assets and liabilities generating the differences. The Company maintains a 100% valuation allowance with respect to deferred tax assets, therefore there are no deferred taxes on the Company’s Balance Sheet. The Company establishes a valuation allowance based upon the potential likelihood of realizing the deferred tax asset and taking into consideration the Company’s financial position and results of operations for the current period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carry-forward period under the Federal tax laws. Changes in circumstances, such as the Company generating taxable income, could cause a change in judgment about the reliability of the related deferred tax asset. Any change in the valuation allowance will be included in income in the year of the change in estimate.

Fair Value Measurement

The Company values its convertible notes and amounts due to related partings and short-term loans payable under FASB ASC 820 which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair value balances based on the observability of those inputs. ASC 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement).

The three levels of the fair value hierarchy are as follows:

Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities, and listed equities.

Level 2 – Valuations for assets and liabilities that can be obtained from readily available pricing sources via independent providers for market transactions involving similar assets or liabilities. The Company’s principal markets for these securities are the secondary institutional markets, and valuations are based on observable market data in those markets.

Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. The Company uses Level 3 to value its derivative instruments.

Employee Stock-Based Compensation

The Company accounts for stock-based compensation in accordance with ASC 718 Compensation-Stock Compensation (“ASC 718”). ASC 718 addresses all forms of share-based payment (“SBP”) awards including shares issued under employee stock purchase plans and stock incentive shares. Under ASC 718 awards result in a cost that is measured at fair value on the awards’ grant date, based on the estimated number of awards that are expected to vest, and will result in a charge to operations.

Net Loss per Share

Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, “Earnings per Share.” Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding.

Subsequent Event

The Company evaluated subsequent events through the date when consolidated financial statements are issued for disclosure consideration.

Recent Accounting Pronouncements

There are no recent accounting pronouncements that have an impact on the Company’s operations.

NOTE 3 – GOING CONCERN

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve months following the date of these consolidated financial statements. The Company has incurred significant operating losses since its inception. As of ~~March~~June 3130, 2023, the Company had a working capital deficit of $~~514~~229,~~417~~440 and an accumulated deficit of $~~586~~1,~~186~~620,526.

The Company expects to generate operating cash flows that will be sufficient to fund presently anticipated operations although there can be no assurance. This raises substantial doubt about the Company’s ability to continue as a going concern. Therefore, the Company will need to raise additional funds and is currently exploring alternative sources of financing to supplement expected cash flow. Historically, the Company has raised capital through private placements, as an interim measure to finance working capital needs and may continue to raise additional capital through the sale of common stock or other securities and obtaining some short-term loans. The Company will be required to continue to do so until its operations become profitable.

NOTE 4 – BUSINESS ACQUISITION

On February 10, 2022, the Company entered into a share exchange agreement (the “Share Exchange Agreement”) with MySpray Therapeutics Inc. (“MySpray”), a Saskatchewan, Canadian corporation, Nichol Martinuik (“Martinuik”) and Rachel Martinuik (“R. Martinuik”), the sole officers, directors, and shareholders of MySpray, Qatar Consulting Inc. & Company (“Qatar”), Broadway Creative Consultants Corp. (“Broadway”), and David Lazar (“Lazar”), as the sole officer and director of the Company and the managing member of Activist Investing LLC (“Activist”). Under the Share Exchange Agreement, One Hundred Percent (100%) of the ownership interest of MySpray was exchanged for (i) 51,110,500 shares of common stock of the Company at the Closing, and (ii) an additional 569,889,500 shares of common stock of ADOB, to be issued upon the increase in authorized shares of common stock of ADOB to 700,000,000, each of which is to be issued to Martinuik, R. Martinuik, Qatar, Broadway, and Activist, pro-rata, in accordance with the Share Exchange Agreement. As of the date of this Report, none of the 569,889,500 shares had been issued. The former stockholders of MySpray will acquire a majority of the issued and outstanding common stock as a result of the share exchange transaction. The transaction has been accounted for as a recapitalization of the Company, whereby MySpray is the accounting acquirer.

NOTE 4 – DISCONTINUED OPERATIONS

On June 1, 2023 the Company decided to transition from its current Clinic Operations to the establishment of a research laboratory. This strategic move was driven by the Company’s commitment to innovation and advancing the field of healthcare through research and development. All of the assets and results of operations from Clinic Operations have been treated as discontinued operations for all periods presented in the financial statements. The assets and liabilities of Clinic Operations were transferred to the Company’s CEO and her spouse for no consideration since Clinic Operations were not profitable in either 2022 or 2023 to date. The following table reflects the results of operations from Clinic Operations for the periods presented.

Schedule of discontinued operations
	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Revenue	$	23,029		$	34,517		$	64,456		$	53,769
Operating expenses		29,253			40,999			74,888			69,072
Discontinued operations, net of tax	$	(6,224	)	$	(6,482	)	$	(10,432	)	$	(15,303	)

NOTE 5 – BUSINESS ACQUISITION

On February 10, 2022, the Company entered into a share exchange agreement (the “Share Exchange Agreement”) with MySpray Therapeutics Inc. (“MySpray”), a Saskatchewan, Canadian corporation, Nichol Martinuik (“Martinuik”) and Rachel Martinuik (“R. Martinuik”), the sole officers, directors, and shareholders of MySpray, Qatar Consulting Inc. & Company (“Qatar”), Broadway Creative Consultants Corp. (“Broadway”), and David Lazar (“Lazar”), as the sole officer and director of the Company and the managing member of Activist Investing LLC (“Activist”). Under the Share Exchange Agreement, One Hundred Percent (100%) of the ownership interest of MySpray was exchanged for (i) 51,110,500 shares of common stock of the Company at the Closing, and (ii) an additional 569,889,500 shares of common stock of ADOB, to be issued upon the increase in authorized shares of common stock of ADOB to 700,000,000, each of which is to be issued to Martinuik, R. Martinuik, Qatar, Broadway, and Activist, pro-rata, in accordance with the Share Exchange Agreement. As of the date of this Report, none of the 569,889,500 shares had been issued. The former stockholders of MySpray will acquire a majority of the issued and outstanding common stock as a result of the share exchange transaction. The transaction has been accounted for as a recapitalization of the Company, whereby MySpray is the accounting acquirer.

For the acquisition of MySpray the following table summarizes the acquisition date fair value of the consideration paid, identifiable assets acquired and liabilities assumed:

Consideration paid

Schedule of cosideration paid
Common stock, 621,000,000 shares of the Company restricted common stock valued at $0.001 per share	$	621,000
Net liabilities assumed		62,777
Fair value of total consideration paid	$	683,777

Net assets acquired and liabilities assumed


Cash and cash equivalents	$	30,542
Accounts receivable		595
Inventory		53,431
Other assets		1,409
Total assets	$	85,977

Accounts payable and accrued liabilities		117,214
Government of Canada loan		31,540
Total liabilities		148,754

Net liabilities assumed	$	62,777

The Company has allocated the fair value of the total consideration paid of $547,022 to goodwill and $136,755 to intangible assets with a life of three years. The value of goodwill ~~represents~~represented MySpray’s ability to generate profitable operations going forward. Management estimated the provisional fair values of the intangible assets and goodwill at February 10, 2022. As a result of Clinic Operations becoming a discontinued operation, the Company fully impaired its goodwill and intangible asset balance of $590,512.

NOTE 56 – INTANGIBLE ASSETS

AsDuring ofthe ~~March~~three months ended June 3130, 2023, the ~~balance~~Company ofacquired ~~intangible~~intellectual ~~assets~~property ~~was~~(IP) ~~$78,316.~~by ~~During~~issuing ~~the~~44,920,000 ~~three-month~~shares ~~period~~of ~~ended~~its ~~March 31,~~common stock ~~2023,~~valued ~~the~~at ~~Company recorded~~ $101,~~679 in amortization expense~~707,396. AsThe ~~discussed~~company inis ~~Note~~amortizing 4, the ~~intangible~~value ~~assets~~of ~~have~~its ~~been~~IP ~~valued~~over ~~based~~a onone ~~provisional~~year ~~estimates of~~period. ~~fair~~As ~~value~~a ~~and~~result ~~are~~the ~~subject~~Company torecorded ~~change~~amortization expense asof ~~the~~$416,689 ~~Company~~on ~~completes~~ its ~~valuation~~Statements ~~assessment~~of byOperations for the ~~completion~~three ofmonths ~~the~~ended ~~one-year~~June 30, ~~measurement period~~2023. ~~Amortization~~As ~~for~~of ~~the~~June 30, ~~following~~2023 ~~fiscal~~the ~~years~~balance of isintangible ~~estimated~~assets towas ~~be:~~1,272,303. ~~2023~~This -amount ~~$32,038;~~will ~~and~~be ~~2024~~amortized -prorata ~~$42,717,~~over ~~and~~the ~~2025~~next ~~-$3,560~~nine months.

NOTE 67 – RELATED PARTY TRANSACTIONS

The Company has been funded by its executive officers, and officers of its subsidiary. As of ~~March~~June 3130, 2023, the balance due to executive officers and a former officer amounted to $~~227~~230,~~953~~264 in the form of interest-free demand loans compared to $227,704 during the period ended December 31, 2022. During the ~~three~~six months ended ~~March~~June 3130, 2023, the Company’s officers have advanced $~~249~~2,560 to the Company.

~~Additionally,~~On anJune 1, ~~officer~~2023 ofthe ~~MySpray~~Company ~~owns~~decided ~~the~~to ~~laboratory~~transition ~~building~~from ~~that~~its current Clinic Operations to the ~~Company~~establishment ~~occupies~~of a research laboratory. This Hestrategic ~~rents~~move ~~this~~was ~~facility~~driven by the Company’s commitment to ~~MySpray~~innovation ~~based~~and onadvancing athe ~~verbal,~~field ~~month-to-month~~of healthcare through research ~~agreement~~and development. ~~MySpray~~All ~~pays~~of ~~approximately~~the ~~$26,000~~assets ~~annually~~and results of operations from Clinic Operations have been treated as discontinued operations for all periods presented in ~~rent~~the financial statements. The ~~Company~~assets ~~believes~~and ~~that~~liabilities ~~this~~of ~~rent~~Clinic ~~expense~~Operations iswere ~~reasonable~~transferred ~~and comparable~~ to the ~~rent~~Company’s CEO ~~that~~and ~~would~~her bespouse ~~charged~~for tono aconsideration ~~third~~since ~~party~~Clinic Operations were not profitable in either 2022 or 2023 to date.

12During the three months ended June 30, 2023 the Company’s CEO and her spouse each voluntarily donated 47,500,000 of their common shares, for of total of 95,000,000 common shares which were returned to the Company’s treasury.

NOTE 7 – COMMON STOCK AND COMMON STOCK PAYABLE

On May 5, 2022, the Company filed a Certificate of Amendment with the state of Nevada increasing its authorized shares from 75,000,000 to 700,000,000 shares of $0.001 par value common stock. As of March 31, 2023, and December 31, 2022, a total of 644,889,500 and 75,000,000 shares of common stock were issued and outstanding, respectively.

As of the date of this report, the Company had numerous shares issuable for private placements accepted from investors during the three months ended March 31, 2023. Since the Company has delayed issuing these shares the associated value of the shares has been recorded as a liability on the Company’s, Balance sheet. As of March 31, 2023 and December 31, 2022 the balance of Common Stock Payable was $273,989 and $843,878, respectively.

The amount of $273,989 is comprised of the following elements:

	●	During the three months ended June 30, 2022 the Company raised $194,544, net, from sale of 21,000,000 shares to seven investors at average sale price of these shares was $0.017618 Cad per share, and the repurchase of 24,000,000 shares at an average price of $0.00431 Cad.
	●	6,000,000 shares are issuable to a consultant valued at $0.012854 per share valued at $77,125. The share price of $0.012854 is equivalent to the average purchase price of the Company’s recently completed private placements and repurchase of shares noted above.

None of the above-mentioned shares have been issued or retired as of March 31, 2023.

NOTE 8 – SUBSEQUENT EVENTS

In accordance with the Statement of Financial Accounting Standards (“SFAS”) 165 (ASC 855-10) management has performed an evaluation of subsequent events through the date that the consolidated financial statements were available to be issued and has determined that it does not have any material subsequent events to disclose in these consolidated financial statements.

NOTE 8 – COMMON STOCK AND COMMON STOCK PAYABLE

On May 5, 2022, the Company filed a Certificate of Amendment with the state of Nevada increasing its authorized shares from 75,000,000 to 700,000,000 shares of $0.001 par value common stock. As of June 30, 2023, and December 31, 2022, a total of 598,545,644 and 75,000,000 shares of common stock were issued and outstanding, respectively. The Company has issued the following shares during 2023:

21,736,144 shares were issued pursuant to private placements. These shares were valued at $299,762.

44,920,000 shares were issued to purchase intellectual property and for services. These shares were valued at 1,707,396.

24,000,000 shares were repurchased. These shares were valued at $76,201.

6,000,000 shares valued at $77,125 were issued for services.

95,000,000 shares were returned to treasury by the Company’s officers and treated as donated capital.

NOTE 9 – SUBSEQUENT EVENTS

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis should be read in conjunction with our unaudited consolidated financial statements and the related notes thereto. The management’s discussion and analysis contains forward-looking statements, such as statements of our plans, objectives, expectations, and intentions. Any statements that are not statements of historical fact are forward-looking statements. When used, the words “believe,” “plan,” “intend,” “anticipate,” “target,” “estimate,” “expect” and the like, and/or future tense or conditional constructions (“will,” “may,” “could,” “should,” etc.), or similar expressions, identify certain of these forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. Our actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors. We do not undertake any obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this Quarterly Report on Form 10-Q. The following discussion should be read in conjunction with our audited financial statements and the related notes that appear in our Annual Report on Form 10-K, as filed with the Securities and Exchange Commission on March 30, 2022.

Overview

Business Overview

Soul Biotechnology Corporation is a US holding company incorporated in Nevada in October 2017, which operates through the Company’s wholly owned subsidiary MySpray Therapeutics Inc. (“MySpray”), a Saskatchewan, Canada corporation incorporated on October 2, 2012.

MySpray creates innovative and clinically developed products for the global natural health community in the areas of immune function, mental health, and pain management.

MySpray Therapeutics^® Inc. is currently the license holder of 9 Natural Product Numbers (NPN) through the Natural and Non-prescription Health Products Directorate division of Health Canada.

We are preparing to expand formulas to support clinical trials along with the licensing for research and development in the fields of mental health and the impact of treatment protocols with phytonutrients, medicinal mushrooms, and psychedelic compounds under our current “MyShrooms” brand.

We are attempting end-to-end capabilities from substrate for growth, genetics, research, extraction, formulations, delivery, and distribution of the finished product. This could allow MySpray to maintain high-quality control and enable us to:

●

Create formulations for clinical trials.

●

Supply raw materials, standardized extracts, and medicinal compounds that are in high demand for ongoing academic research globally.

●

Provide finished products direct to consumer.

●

Offer white label manufacturing.

Through this process, we are attempting to achieve a net zero global environmental footprint, implementing growth solutions using naturally composted substrates and by-products of manufacturing current products. MySpray is a current member of the Canadian Health Food Association (CHFA) and presently offers 5 products in the natural health marketplace, and proudly manufactures in Canada with cGMP credentials, sourced from USDA-certified organic North American producers.

MySpray is clinically developing innovative and evidence-based therapeutics that can help us generate revenue through the sales of its five products to distributors, direct wholesale to pharmacies, clinics, health stores, ecommerce, and traditional retailers, along with our retail ~~online~~ online store.

Background of the Company

MySpray Therapeutics was founded in 2012 by natural health practitioner and researcher, Nichol Martinuik, with a mission of creating the most innovative and life-changing products.

The first mission was to find a solution to the low absorption rates of nutrients from pills, leading to the development of Vitamin D3 and B12 oral sprays. Sublingual and buccal absorption provides a much higher absorption by the body, eliminating the gastric breakdown through digestion. With the use of a convenient spray, it ensures that your body is receiving the maximum benefits.

MyPain LiniMint was the next product to be approved by Health Canada, after many years of clinical research and development with dimethyl sulfoxide (“DMSO”) as a topical analgesic for pain management. DMSO provides tissue penetration directly to the site of pain and inflammation, with capabilities beyond any other topically applied product. Many trials were conducted with this formula to create a balanced product that minimized the odors associated with DMSO.

MyShrooms Immunity was then developed as an immune modulator and formulated with a synergistic blend of 8 medicinal mushrooms. Fungi have been revered medically for thousands of years in their abilities to increase the immune system’s recognition and defence from daily threats. MyShrooms Defence is the evolution of the original Vitamin D3 spray, and a combination of Chaga and D3. Chaga is a potent substance containing over 200 nutrients, including vitamin D and the cofactors necessary for absorption, creating a superior formula for disease prevention.

MySpray is committed to ongoing research, and the development of innovative solutions and premium health products. Nichol is a member of the Natural Health Practitioners of Canada, and the Saskatchewan Association of Doctors of Natural Medicine. MySpray Therapeutics is proudly manufactured in Canada and a proud member of the Canadian Health Food Association.

Products

MySpray offers products in a variety of delivery systems including topical, capsules, and through a highly absorbed convenient oral spray delivery system.

MyShrooms Immune-Pro

MyShrooms Immune-Pro is a clinical strength herbal medicine to activate, balance, and support a healthy immune system. It is formulated with a powerful and unique trifecta of medicinal mushrooms, ginseng, and propolis. With potent antioxidants and powerful adaptogens it increases energy and the body’s response to stress, along with related mental and physical fatigue.

MyShrooms Defence

MyShrooms Defence is a combination of chaga, often proclaimed “king of medicinal mushrooms,” and Vitamin D. Chaga is a rich source of potent antioxidants and powerful phytochemicals, such as sterols, phenols, beta-glucans, and melanin. Vitamin D, widely known as the sunshine vitamin, is an essential hormone for disease prevention, and the regulation of minerals. Combined they strengthen the body’s natural defence system, and protect against pathogens, illness, and disease.

MyShrooms Immunity

MyShrooms Immunity offers the synergistic effect of 8 medicinal mushrooms, each containing complex, unique, and specific compounds providing significant health benefits throughout the whole body. As an immune modulator, it helps to activate, balance, and restore a healthy immune response with a comprehensive combination of the most potent medicinal mushrooms including: Reishi, Chaga, Cordyceps, Turkey Tail, Lion’s Mane, Agaricus Blazei, Shiitake, and Maitake.

MyShrooms Energy

MyShrooms Energy is a combination of Cordyceps and Vitamin B12. Cordyceps mushroom has been used for centuries for its energizing and apoptogenic properties, as well as to support oxygen uptake, stamina, endurance, libido, and kidney and adrenal health. With naturally occurring B-vitamins, it is a perfect blend to include Vitamin B12 with its essential and diverse functions in the body. B12 is involved in the maintenance of the nervous system, red blood cell production, energy metabolism and the proper functioning of our brain, heart, liver, and kidneys. Combined they contribute to optimal health, well-being, performance, mood, vitality, and energy.

MyPain LiniMint

MyPain LiniMint contains 80% DMSO and delivers the deepest tissue penetration available. It is 100% natural and provides unmatched pain relief from muscle strains, joint sprains, backaches & arthritis. The powerful analgesic properties easily penetrate through the skin into all tissues, reducing pain and inflammation at the source to promote the body’s natural healing process, a remarkable advantage over other topically applied products.

With approximately 11,000 studies on DMSO, research demonstrates its analgesic properties by blocking the peripheral C nerve fibers and acts as an antioxidant neutralizing the free radicals of inflammation.

MySpray generates revenue through the sales of its five products to distributors, direct wholesale to pharmacies, clinics, health stores, ecommerce, and traditional retailers, along with our retail online store.

~~Results~~The ofresults ~~Operations~~from ~~for~~discontinued ~~the~~operations ~~Three~~are ~~Months~~excluded ~~Ended~~from ~~March 31,~~management’s ~~2023~~discussion ~~Compared~~of tooperations ~~the~~below, ~~Three~~and ~~Months~~from ~~Ended~~the ~~March 31,~~Liquidity ~~2022~~analysis.

Results of Operations for the Six Months Ended June 30, 2023 Compared to the Six Months Ended June 30, 2022

Revenue

For the ~~three~~six months ended ~~March~~June 3130, 2023, we recorded $7560,~~413~~611 in revenue from the sale of our products ~~compared~~from continuing operations compared to $6480,~~731~~773 for the ~~three~~ six months ended ~~March~~June 3130, 2022. We are in the process of developing our strategic business plan going forward and, therefore, revenues may vary from period to period.

Cost of sales

Cost of sales was $2920,~~127~~239 for the ~~three~~six months ended ~~March~~June 3130, 2023, compared to cost of sales of $1539,~~305~~137 for the ~~three~~six months ended ~~March~~ June 3130, 2022.

Operating expenses

Operating expenses for the ~~three~~six months ended ~~March~~June 3130, 2023 were $~~106~~1,~~149~~123,908 compared to $83220,~~546~~014 for the ~~three~~six months ended ~~March~~June 3130, 2022. The increase in operating expenses in the ~~three~~six months ended ~~March~~June 3130, 2023, compared to the same period in 2022 is due to amortization of $416,689 in intangible assets, an ~~increase~~impairment of goodwill and intangible assets of 590,512 compared to $-0- in the 2022 period; an increase in general and administrative expenses in most expense categories ~~due~~of $23,596 in the 2023 period, partially offset by a decrease in professional fees of $118,634 in 2023 compared to ~~inflation~~2022.

16Net Loss

~~Net~~As ~~income~~a (result of the foregoing, we had a loss) from continuing operations of $1,084,213 for the six months ended June 30, 2023 compared to a loss of $179,222 during the same six-month period ended June 30, 2022. The loss from discontinued operations for the six months ended June 30, 2023 was $10,432 compared to a loss of $15,303 during the same six-month period ended June 30, 2022.

As a result of the foregoing, we had a loss of $60,305 for the three months ended March 31, 2023 compared to a loss of $34,120 during the same three-month period ended March 31, 2022.

Liquidity and Capital Resources

We had $10,~~249~~773 in cash on hand as of ~~March~~June 3130, 2023.

Net cash used in operating activities was $3261,~~049~~533 for the ~~three~~six months ended ~~March~~June 3130, 2023, compared to $36177,~~304~~527 for the ~~three~~six months ~~ended~~ ~~March~~ended June 3130, 2022 The decrease in cash used in operating activities during the ~~three~~six months ended ~~March~~June 3130, 2023 was primarily ~~due~~ due to changes in operating assets and liabilities.

Net cash provided investing activities was $-0- for the period ended ~~March~~June 3130, 2023 compared to $19,981 in net cash provided by investing activities during the period ended ~~March~~June 3130, 2022. The decrease is attributable to the acquisition of a business net of cash acquired in the 2022 period.

Net cash provided by financing activities was $~~249~~29,167 for the ~~three~~six months ended ~~March~~June 3130, 2023, compared to $43231,~~131~~833 for the ~~three~~six months ended ~~March~~June 3130, 2022. The decrease during the 2023 period is primarily attributable to $4324,~~131~~916 in proceeds from related party loans in 2022 compared to $~~249~~2,560, and a decrease in proceeds from the ~~three~~sale of common stock of $180,310 in the six months ended ~~March~~June 3130, 2022.

We believe will become cash flow positive from operations in the future, however, there can be no assurance that we will be successful. Also, there can be no assurance that related parties will continue to fund our operations or that we can obtain funding from the sale of our securities or through the issuance of debt.

~~Financial Impact of COVID-19~~18

The COVID-19 pandemic has affected how we are operating our business, and the duration and extent to which this will impact our future results of operations and overall financial performance remains uncertain. The COVID-19 pandemic is having widespread, rapidly evolving, and unpredictable impacts on global society, economies, financial markets, and business practices. Federal, state and foreign governments have implemented measures to contain the virus, including social distancing, travel restrictions, border closures, limitations on public gatherings, work from home, and closure of non-essential businesses. To protect the health and well-being of our employees, partners, and third-party service providers, we have implemented work-from-home requirements, made substantial modifications to employee travel policies, and cancelled or shifted marketing and other corporate events to virtual-only formats for the foreseeable future. While we continue to monitor the situation and may adjust our current policies as more information and public health guidance become available, such precautionary measures could negatively affect our customer success efforts, sales and marketing efforts, delay and lengthen our sales cycles, or create operational or other challenges, any of which could harm our business and results of operations. In addition, the COVID-19 pandemic has disrupted the operations of our current enterprise customers, as well as many potential enterprise customers, and may continue to disrupt their operations, for an indefinite period of time, including as a result of travel restrictions and/or business shutdowns, uncertainty in the financial markets, or other harm to their businesses and financial results, resulting in delayed purchasing decisions, extended payment terms, and postponed or cancelled projects, all of which could negatively impact our business and results of operations, including our revenue and cash flows.

Beginning in March 2020, the U.S., Canadian and global economies have reacted negatively in response to worldwide concerns due to the economic impacts of the COVID-19 pandemic. These factors also may adversely impact enterprise and government spending on technology as well as such customers’ ability to pay for our products and services on an ongoing basis. For example, some businesses in industries particularly impacted by the COVID-19 pandemic, such as travel, hospitality, retail, and oil and gas, have significantly cut or eliminated capital expenditures. A prolonged economic downturn could adversely affect technology spending, demand for our offerings, which could have a negative impact on our financial condition, results of operations and cash flows. Any resulting instability in the financial markets could also adversely affect the value of our common stock, our ability to refinance our indebtedness, and our access to capital.

The ultimate duration and extent of the impact from the COVID-19 pandemic depends on future developments that cannot be accurately forecasted at this time, such as the severity and transmission rate of the disease, the actions of governments, businesses and individuals in response to the pandemic, the extent and effectiveness of containment actions, the impact on economic activity and the impact of these and other factors on our employees, partners, and third-party service providers. These uncertainties may increase variability in our future results of operations and adversely impact our ability to accurately forecast changes in our business performance and financial condition in future periods. If we are not able to respond to and manage the impact of such events effectively or if global economic conditions do not improve, or deteriorate further, our business, financial condition, results of operations, and cash flows could be adversely affected.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

We believe that the following critical policies affect our more significant judgments and estimates used in preparation of our consolidated financial statements.

See Note 2 to the Financial Statements for a Listing of our Critical Accounting Policies

New Accounting Pronouncements

There are no new accounting ~~pronouncement~~pronouncements that have a material impact on our financial statements.

Off-Balance Sheet Arrangements

None.

Item 3. Quantitative And Qualitative Disclosures About Market Risk.

We are a smaller reporting company and are not required to provide this information.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures.

Our management is responsible for establishing and maintaining a system of “disclosure controls and procedures” (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Our disclosure controls and procedures were not effective as of ~~March~~June 3130, 2023.

1819

Management’s Report on Internal Control over Financial Reporting.

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with generally accepted accounting principles. Our internal control over financial reporting includes those policies and procedures that:

	●	pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;

	●	provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and

	●	provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the consolidated financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies or procedures may deteriorate.

Our management assessed the effectiveness of our internal control over financial reporting based on the parameters set forth above and has concluded that as of ~~March~~June 3130, 2023, our internal control over financial reporting was not effective to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with U.S. generally accepted accounting principles as a result of the following material weaknesses:

● The Company does not have sufficient segregation of duties within accounting functions due to only having one officer and limited resources. ● The Company does not have an independent board of directors or an audit committee. ● The Company does not have written documentation of our internal control policies and procedures. ● All of the Company’s financial reporting is carried out by a financial consultant.

● The Company does not have an independent board of directors or an audit committee. ● The Company does not have written documentation of our internal control policies and procedures. ● All of the Company’s financial reporting is carried out by a financial consultant.

We plan to rectify these weaknesses by implementing an independent board of directors, establishing written policies and procedures for our internal control of financial reporting, and hiring additional accounting personnel at such time as we complete a reverse merger or similar business acquisition.

Changes in Internal Control over Financial Reporting.

There has been no change in our internal control over financial reporting during the year ~~March~~June 3130, 2023, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

1920

PART II OTHER INFORMATION

Item 1. Legal Proceedings.

The Company may be involved in certain legal proceedings that arise from time to time in the ordinary course of its business. Legal expenses associated with any contingency are expensed as incurred. The Company’s officers and directors are not aware of any threatened or pending litigation to which the Company is a party or which any of its property is the subject and which would have any material, adverse effect on the Company.

Item 1A. Risk Factors.

As a smaller reporting company, we are not required to include this disclosure in this Quarterly Report on Form 10-Q.

Item 2. Unregistered Sales of Equity Securities and Use Of Proceeds.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

2021

Item 6. Exhibits.

The exhibits listed on the Exhibit Index below are provided as part of this report.

3.1		Articles of Incorporation of the Company Inc., as amended on March 16, 2018 (incorporated by reference to our Registration Statement on Form S-1 filed on January 19, 2018)

3.2		Bylaws of the Company Inc. (incorporated by reference to our Registration Statement on Form S-1 filed on January 19, 2018)

10.1		Share Exchange Agreement (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed with the SEC on February 10, 2022

22		Demand Promissory Note Payable to Activist Investing LLC (incorporated by reference to our Registration Statement on 10-12G/A filed on December 22, 2020)

23		Demand Promissory Note Payable to Rebecca Lazar (incorporated by reference to our Registration Statement on 10-12G/A filed on December 22, 2020)

31.1		Certification of Principal Executive Officer and Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a)

32.1		Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS		XBRL Instance Document

101.SCH		XBRL Schema Document

101.CAL		XBRL Calculation Linkbase Document

101.DEF		XBRL Definition Linkbase Document

101.LAB		XBRL Label Linkbase Document

101.PRE		XBRL Presentation Linkbase Document

2122

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	SOUL BIOTECHNOLOGY CORPORATION
Dated: May 15, 2023	By:	/s/ Rachel Martinuik
Dated: September 27, 2023	By:	/s/ Rachel Martinuik
		Rachel Martinuik
		Chief Executive Officer and
		Chief Financial Officer
		Principal Executive Officer,
		Principal Financial Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

2223

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