10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

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

For the quarterly period ended March 31, 2021

OR

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

For the transition period from _____________ to ___________________.

Commission File Number: 000-32917

PROTOKINETIX, INCORPORATED

(Exact name of registrant as specified in its charter) 

Nevada	94-3355026
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

412 Mulberry St.

Marietta, Ohio 45750

(Address of principal executive offices, including zip code)

(Registrant’s telephone number, including area code: 740-434-5041)

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

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

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

$.0000053 par value common stock

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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). þ   Yes      ☐   No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer , or a smaller reporting 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 Exchange Act).        Yes ☐ No ☑

As of April 16, 2021, there were 289,483,643 shares of ProtoKinetix, Incorporated common stock that were issued and outstanding.

PROTOKINETIX, INCORPORATED

TABLE OF CONTENTS

PART I
FINANCIAL INFORMATION
Item 1. Financial Statements	3
Unaudited Balance Sheets	3
Unaudited Statements of Operations	4
Unaudited Statement of Stockholders’ Equity	5
Unaudited Statements of Cash Flows	6
Notes to Unaudited Financial Statements	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3. Quantitative and Qualitative Disclosures About Market Risk	22
Item 4. Controls and Procedures	23
PART II
OTHER INFORMATION
Item 1. Legal Proceedings	24
Item 1A. Risk Factors	24
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	24
Item 3. Defaults Upon Senior Securities	24
Item 4. Mine Safety Disclosure	24
Item 5. Other Information	24
Item 6. Exhibits	25
Signatures	27

2 

PROTOKINETIX, INCORPORATED

(A Development Stage Company)

BALANCE SHEETS

(Unaudited)

	March 31, 2021			December 31, 2020
ASSETS
Current Assets
Cash	$	250,367		$	193,445
Prepaid expenses (Note 3)		1,050			1,050
Total current assets		251,417			194,495
Intangible assets (Note 4)		309,008			274,686
Total assets	$	560,425		$	469,181
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable	$	—		$	17,959
Accrued liabilities		5,000			27,000
Total current liabilities		5,000			44,959
Stockholders’ Equity
Common stock, $0.0000053 par value; 400,000,000 common shares authorized; 285,955,071 and 285,955,071 shares issued and outstanding as at March 31, 2021 and December 31, 2020 respectively (Note 7)		1,550			1,531
Additional paid-in capital		43,879,582			43,615,323
Accumulated deficit		(43,325,707	)		(43,192,633	)
Total stockholders’ equity		555,425			424,221
Total liabilities and stockholders’ equity	$	560,425		$	469,181

Basis of Presentation – Going Concern Uncertainties (Note 1)

Commitments and Contingency (Note 9)

See Notes to Financial Statements

3 

PROTOKINETIX, INCORPORATED

(A Development Stage Company)

STATEMENTS OF OPERATIONS

(Unaudited)

For the Three Months Ended March 31, 2021 and 2020

	Three months ended March 31, 2021			Three months ended March 31, 2020
EXPENSES
Amortization – intangible assets (Note 4)	$	750		$	750
General and administrative		41,045			57,029
Professional fees		32,688			36,990
Research and development		41,313			219,512
Share-based compensation (Notes 5 and 8)		17,278			2,854,984
Total Expenses		(133,074	)		(3,169,265	)
Net loss for the period	$	(133,074	)	$	(3,169,265	)
Net loss per common share (basic and diluted)	$	(0.01	)	$	(0.01	)
Weighted average number of common shares outstanding (basic and diluted)		281,390,520			275,400,259

See Notes to Financial Statements

4 

PROTOKINETIX, INCORPORATED

STATEMENT OF STOCKHOLDERS’ EQUITY

(Unaudited)

For the Period from December 31, 2020 to March 31, 2021

	Common Stock				Additional Paid-in		Accumulated
	Shares		Amount		capital		deficit			Total
Balance, December 31, 2019		275,400,259	$	1,472	$	36,107,058	$	(35,548,143	)	$	560,387
Fair value of share-based compensation		—		—		2,854,984		—			2,854,984
Net loss for the period		—		—		—		(3,169,265	)		(3,169,265	)
Balance, March 31, 2020		275,400,259	$	1,472	$	38,962,042	$	(38,717,408	)	$	246,106

	Common Stock				Additional Paid-in		Accumulated
	Shares		Amount		capital		deficit			Total
Balance, December 31, 2020		285,955,071	$	1,531	$	43,615,323	$	(43,192,633	)	$	424,221
Issuance of common stock pursuant to private placement offering		3,528,572		19		246,981		—			247,000
Fair value of share-based compensation		—		—		17,278		—			17,278
Net loss for the period		—		—		—		(133,074	)		(133,074	)
Balance, March 31, 2021		289,483,643	$	1,550	$	43,879,582	$	(43,325,707	)	$	555,425

See Notes to Financial Statements

5 

 PROTOKINETIX, INCORPORATED

(A Development Stage Company)

STATEMENTS OF CASH FLOWS

(Unaudited)

For the Three Months Ended March 31, 2021 and 2020

	Three Months ended March 31, 2021			Three Months ended March 31, 2020
CASH FLOWS USED IN OPERATING ACTIVITIES
Net loss for the period	$	(133,074	)	$	(3,169,265	)
Adjustments to reconcile net loss to cash used in operating activities:
Amortization – intangible assets		750			750
Fair value of share-based compensation		17,278			2,854,984
Changes in operating assets and liabilities:
Accounts payable and accrued liabilities		(39,960	)		(4,269	)
Net cash used in operating activities		(155,006	)		(317,800	)
CASH FLOWS USED IN INVESTING ACTIVITIES
Purchase of intangible assets		(35,072	)		(11,660	)
Net cash used in investing activities		(35,072	)		(11,660	)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock for cash		247,000			—
Net cash from financing activities		247,000			—
Net change in cash		56,922			(329,460	)
Cash, beginning of period		193,445			377,349
Cash, end of period	$	250,367		$	47,889
Cash paid for interest	$	—		$	—
Cash paid for income taxes	$	—		$	—
Supplementary information – non-cash transactions:
Intangible asset additions included in accounts payable and accrued liabilities	$	—		$	7,618

See Notes to Financial Statements

6 

PROTOKINETIX, INCORPORATED

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

March 31, 2021

Note 1.  Basis of Presentation – Going Concern Uncertainties

ProtoKinetix, Incorporated (the “Company”), a development stage company, was incorporated under the laws of the State of Nevada on December 23, 1999.  The Company is a medical research company whose mission is the advancement of human health care.

The Company is currently researching the benefits and feasibility of synthesized Antifreeze Glycoproteins (“AFGP”) or anti-aging glycoproteins, trademarked AAGP.  During the year ended December 31, 2015, the Company acquired certain patents and rights for cash consideration of $30,000 (25,000 Euros), as well as additional patent applications for cash consideration of $10,000 and 6,000,000 share purchase warrants with a fair value of $25,000 (Note 4).

The Company’s financial statements are prepared consistent with accounting principles generally accepted in the United States applicable to a going concern.

The Company has not developed a commercially viable product, has not generated any significant revenue to date, and has incurred losses since inception, resulting in a net accumulated deficit at March 31, 2021.  These factors raise substantial doubt about the Company’s ability to continue as a going concern.

The Company needs additional working capital to continue its medical research or to be successful in any future business activities and continue to pay its liabilities.  Therefore, continuation of the Company as a going concern is dependent upon obtaining the additional working capital necessary to accomplish its objective.  Management is presently engaged in seeking additional working capital through equity financing or related party loans.

In March 2020, the World Health Organization declared coronavirus COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, and any related adverse public health developments, has adversely affected workforces, economies, and financial markets globally, potentially leading to an economic downturn. It is not possible for the Company to predict the duration or magnitude of the adverse results of the outbreak and its effects on the Company’s business or ability to raise funds.

The accompanying financial statements do not include any adjustments to the recorded assets or liabilities that might be necessary should the Company fail in any of the above objectives and is unable to operate for the coming year.

Note 2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited financial statements have been prepared by the Company in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) applicable to interim financial information and with the rules and regulations of the United States Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed, or omitted, pursuant to such rules and regulations. In the opinion of management, the unaudited interim financial statements include all adjustments necessary for the fair presentation of the results of the interim periods presented. All adjustments are of a normal recurring nature, except as otherwise noted below. These financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended December 31, 2020, included in the Company’s Annual Report on Form 10-K, filed March 5, 2021, with the Securities and Exchange Commission. The results of operations for the interim periods are not necessarily indicative of the results of operations for any other interim period or for a full fiscal year.

7 

PROTOKINETIX, INCORPORATED

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

March 31, 2021

Note 2. Summary of Significant Accounting Policies (cont’d)

Use of Estimates

Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.  The more significant accounting estimates inherent in the preparation of the Company’s financial statements include estimates as to valuation of equity related instruments issued, deferred income taxes, and the useful life and impairment of intangible assets.

Cash

Cash consists of funds held in checking accounts. Cash balances may exceed federally insured limits from time to time.

Fair Value of Financial Instruments

Financial instruments, which includes cash and accounts payable and accrued liabilities, are carried at cost, which management believes approximates fair value due to the short-term nature of these instruments.

The Company measures the fair value of financial assets and liabilities pursuant to ASC 820 “Fair Value Measurements and Disclosures” which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The policy describes three levels of inputs that may be used to measure fair value:

Level 1 – quoted prices in active markets for identical assets or liabilities

Level 2 – quoted prices for similar assets and liabilities in active markets or inputs that are observable

Level 3 – inputs that are unobservable (for example cash flow modeling inputs based on assumptions)

Level 1 inputs are used to measure cash. At March 31, 2021, there were no other assets or liabilities subject to additional disclosure.

Income Taxes

The Company accounts for income taxes following the assets and liability method in accordance with the ASC 740 “Income Taxes.”  Under such method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.  The Company applies the accounting guidance issued to address the accounting for uncertain tax positions.  This guidance clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements as well as provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years that the asset is expected to be recovered or the liability settled.

8 

PROTOKINETIX, INCORPORATED

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

March 31, 2021

Note 2. Summary of Significant Accounting Policies (cont’d)

Intangible assets – patent and patent application costs

The Company owns intangible assets consisting of certain patents and patent applications. Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. Subsequent expenditures are capitalized only when they increase the future economic benefits embodied in the specific asset to which they relate. All other expenditures are recognized in profit or loss as incurred.

As at March 31, 2021, the Company does not hold any intangible assets with indefinite lives.

Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization method and amortization period of an intangible asset with a finite life is reviewed at least annually.

Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates. Amortization is recognized in profit or loss on a straight-line basis over the estimated useful lives of the Company’s patents. No amortization is recognized on patent application costs, as amortization of these costs will only commence once the patents have been granted.

Research and Development Costs

Research and development costs are expensed as incurred.

Loss per Share and Potentially Dilutive Securities

Basic loss per share is computed by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding in the period.  Diluted loss per share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive securities.  The effect of 81,050,000 stock options (March 31, 2020 – 84,450,000), and 13,855,429 warrants (March 31, 2020 – 8,500,000) were not included in the computation of diluted earnings per share for all periods presented because it was anti-dilutive due to the Company’s losses.

Share-Based Compensation

The Company has granted warrants and options to purchase shares of the Company’s common stock to various parties for consulting services.  The fair values of the warrants and options issued have been estimated using the Black-Scholes Option Pricing Model.

The Company accounts for stock compensation with persons classified as employees for accounting purposes in accordance with ASC 718 “Compensation – Stock Compensation”, which recognizes awards at fair value on the date of grant and recognition of compensation over the service period for awards expected to vest. Cliff Vesting is used and awards vest on the last day of the vesting period. The fair value of stock options is determined using the Black-Scholes Option Pricing Model. The fair value of common shares issued for services is determined based on the Company’s stock price on the date of issuance.

9 

PROTOKINETIX, INCORPORATED

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

March 31, 2021

Note 2. Summary of Significant Accounting Policies (cont’d)

Share-Based Compensation (cont’d)

Share-based compensation for non-employees in exchange for goods and services used or consumed in an entity’s own operations are also recorded at fair value on the measurement date and accounted for in accordance with ASC 718. The measurement of share-based compensation is subject to periodic adjustment as the underlying instruments vest. The fair value of stock options is estimated using the Black-Scholes Option Pricing Model and the compensation charges are amortized over the vesting period.

Common stock

Common stock issued for non-monetary consideration are recorded at their fair value on the measurement date and classified as equity. The measurement date is defined as the earliest of the date at which the commitment for performance by the counterparty to earn the common shares is reached or the date at which the counterparty’s performance is complete.

Transaction costs directly attributable to the issuance of common stock, units and stock options are recognized as a deduction from equity, net of any tax effects.

Related Party Transactions

A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company.  A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

Recent Accounting Pronouncements

Certain new accounting pronouncements that have been issued are not expected to have a material effect on the Company’s financial statements.

10 

PROTOKINETIX, INCORPORATED

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

March 31, 2021

Note 3.   Prepaid Expenses

The following summarizes the Company’s prepaid expenses outstanding as at March 31, 2021 and December 31, 2020:

	March 31,  2021		December 31,   2020
Supplementary information – non-cash transactions:
Rental deposit	$	1,050	$	1,050
Total	$	1,050	$	1,050

11 

PROTOKINETIX, INCORPORATED

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

March 31, 2021

Note 4.   Intangible Assets

Intangible asset transactions are summarized as follows:

	Patent Rights		Patent Application Rights		Total
Cost
Balance, December 31, 2019	$	30,000	$	191,008	$	221,008
Additions		—		70,178		70,178
Balance, December 31, 2020	$	30,000	$	261,186	$	291,186
Additions		—		35,072		35,072
Balance, March 31, 2021	$	30,000	$	296,258	$	326,258
Accumulated amortization
Balance, December 31, 2019	$	13,500	$	—	$	13,500
Amortization		3,000		—		3,000
Balance, December 31, 2020	$	16,500	$	—	$	16,500
Amortization		750		—		750
Balance, March 31, 2021	$	17,250	$	—	$	17,250
Net carrying amounts
December 31, 2020	$	13,500	$	261,186	$	274,686
March 31, 2021	$	12,750	$	296,258	$	309,008

During the year ended December 31, 2015, the Company entered into an Assignment of Patents and Patent Application (effective January 1, 2015) (the “Patent Assignment”) with the Institut National des Sciences Appliquees de Rouen (“INSA”) for the assignment of certain patents and all rights associated therewith (the “Patents”). The Company and INSA had previously entered into a licensing agreement for the Patents in August 2004. The Patent Assignment transfers all of the Patents and rights associated therewith to the Company upon payment to INSA in the sum of $30,000. During the three month period ended March 31, 2021, the Company recorded $750 (2020 -$750) in amortization expense associated with the Patents.

During the year ended December 31, 2015, the Company entered into a Technology Transfer Agreement with Grant Young for the assignment of his 50% ownership of certain patents and all rights associated therewith (the “Patent Application Rights”).  In exchange for the Patent Application Rights, the Company agreed to pay $10,000 (paid) and to issue 6,000,000 warrants (issued) to purchase shares of the Company’s common stock at an exercise price of $0.10 per share for a period of five years. The Patent Application Rights had a total fair value of $35,000, which was allocated as $10,000 to the cash consideration paid, with the remaining $25,000 being allocated to the warrant component of the overall consideration. The Company has incurred $261,258 in direct costs relating to the Patent Application Rights, $35,072 of which were incurred during the three month period ended March 31, 2021.

The remaining 50% ownership of the Patent Application Rights was acquired from the Governors of the University of Alberta in exchange for a future gross revenue royalty.

12 

PROTOKINETIX, INCORPORATED

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

March 31, 2021

Note 4.  Intangible Assets (cont’d)

During the year ended December 31, 2016, the Company entered into a Universal Assignment with Grant Young for the assignment of his ownership of certain new and useful improvements in an invention entitled “Use of Anti-Aging Glycoprotein for Enhancing Survival of Neurosensory Precursor Cells” (the “New Patent Application Rights”).  In exchange for the New Patent Application Rights, the Company agreed to pay $1 (paid).  The Company incurred $2,415 in direct costs relating to the New Patent Application Rights during the year ended December 31, 2016.

No amortization was recorded on the Patent Application Rights to March 31, 2021.

Note 5.  Stock Options

Pursuant to an amendment on April 6, 2020, the aggregate number of shares that may be issued under the 2017 Stock Option and Stock Bonus Plan (the “2017 Plan”) is 85,700,000 shares, subject to adjustment as provided therein. The 2017 Plan is administered by the Company’s Board of Directors, or a committee appointed by the Board of Directors, and includes two types of options. Options intended to qualify as incentive stock options under Section 422 of the Internal Revenue Code of 1986, as amended, are referred to as incentive options. Options that are not intended to qualify as incentive options are referred to as non-qualified options. The exercise price of an option may be paid in cash, in shares of the Company's common stock or other property having a fair market value equal to the exercise price of the option, or in a combination of cash, shares, other securities and property.

As of March 31, 2021, there are 81,050,000 options granted and outstanding under the 2017 Plan.

13 

PROTOKINETIX, INCORPORATED

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

March 31, 2021

Note 5.  Stock Options (cont’d)

Stock option transactions are summarized as follows:

	Number of Stock Options			Weighted Average Exercise Price
				$		(Years)
Outstanding, December 31, 2020		82,650,000			0.15
Options cancelled		(1,600,000	)		0.13
Outstanding, March 31, 2021		81,050,000			0.14		4.06

	Number of Stock Options			Weighted Average Exercise Price		Weighted Average Remaining Life
				$		(Years)
Outstanding, December 31, 2019		91,450,000			0.14
Options cancelled		(27,000,000	)		0.09
Options expired		(2,000,000	)		0.04
Options granted		22,000,000			0.14
Outstanding, March 31, 2020		84,450,000			0.16		4.56

During the three month period ended March 31, 2021 the Company cancelled 1,600,000 options for shares of common stock exercisable at $0.13 per share, expiring May 6, 2023.

14 

PROTOKINETIX, INCORPORATED

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

March 31, 2021

Note 5.  Stock Options (cont’d)

Total share-based compensation for stock options granted during the period March 31, 2021 was $17,278 (2020 - $2,854,984). The fair values of the stock options granted during the three month period ended March 31, 2021 and 2020 were estimated using the Black-Scholes Option Pricing Model, based on the following weighted average assumptions:

	March 31, 2021			March 31, 2020
Risk-free interest rate		2.55	%		2.56	%
Dividend yield		0.00	%		0.00	%
Expected stock price volatility		143.56	%		138.90	%
Expected forfeiture rate		0.00	%		0.00	%
Expected life		5.09 years			5.07 years

The following non-qualified stock options were outstanding and exercisable at March 31, 2021:

Expiry date	Exercise Price		Number of Options Outstanding		Number of Options Exercisable
	$
November 14, 2021		0.07		750,000		750,000
December 31, 2022		0.06		800,000		800,000
August 31, 2023		0.08		600,000		600,000
November 8, 2023		0.09		15,000,000		15,000,000
July 14, 2024		0.26		18,500,000		18,500,000
November 17, 2024		0.11		15,000,000		15,000,000
March 26, 2026		0.14		22,000,000		22,000,000
May 5, 2026		0.11		650,000		650,000
June 11, 2026		0.12		7,000,000		7,000,000
October 26, 2026		0.10		500,000		250,000
November 27, 2026		0.10		250,000		187,500
				81,050,000		80,737,500

As at March 31, 2021, the aggregate intrinsic value of the Company’s stock options is $5,607,750 (December 31, 2020 – $2,330,750). The weighted average fair value of stock options granted during the three month period ended March 31, 2021 is $Nil (2020 - $0.14).

15 

PROTOKINETIX, INCORPORATED

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

March 31, 2021

Note 6.  Warrants

Warrant transactions for the three months ended March 31, 2021 are summarized as follows:

	Number of Warrants		Weighted Average Exercise Price
			$
Outstanding, December 31, 2020		10,326,857		0.19
Warrants granted		3,528,572		0.07
Outstanding, March 31, 2021		13,855,429		0.19

The following warrants were outstanding and exercisable as at March 31, 2021:

Number of Warrants		Exercise Price ($)		Expiry Date
	6,000,000		0.26	July 14, 2024
	833,333		0.12	October 15, 2022
	250,000		0.12	October 21, 2022
	116,667		0.12	November 1, 2022
	83,334		0.12	November 12, 2022
	833,333		0.12	December 1 , 2022
	166,667		0.12	December 18, 2022
	216,666		0.12	December 18, 2022
	325,000		0.07	December 23, 2021
	142,571		0.07	December 29, 2021
	1,359,286		0.07	December 31, 2021
	1,100,000		0.07	January 07, 2022
	442,857		0.07	January 12, 2022
	571,429		0.07	January 13, 2022
	100,000		0.07	January 20, 2022
	500,000		0.07	January 25, 2022
	100,000		0.07	February 04, 2022
	357,143		0.07	February 08, 2022
	357,143		0.07	February 25, 2022
	13,855,429		0.18

16 

PROTOKINETIX, INCORPORATED

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

March 31, 2021

Note 7.  Stockholders’ Equity

The Company is authorized to issue 400,000,000 (December 31, 2020 – 400,000,000) shares of $0.0000053 par value common stock. Each holder of common stock has the right to one vote but does not have cumulative voting rights. Shares of common stock are not subject to any redemption or sinking fund provisions, nor do they have any preemptive, subscription or conversion rights. Holders of common stock are entitled to receive dividends whenever funds are legally available and when declared by the board of directors, subject to the prior rights of holders of all classes of stock outstanding having priority rights as to dividends. No dividends have been declared or paid as of March 31, 2021 (December 31, 2020 - $nil).

During the three month period ended March 31, 2021, the Company:

a) Issued 3,528,572 units (each unit consisting of 1 share of common stock and 1 warrant to purchase 1 share of common stock at $0.07) as part of a private placement for total proceeds of $247,000.

During the three month period ended March 31, 2020, the Company:

a) No shares of common stock were issued.

Note 8. Related Party Transactions and Balances

During the three month period ended March 31, 2021 and 2020, the Company entered into the following related party transactions:

a) Pursuant to a consulting agreement with an effective date of November 14, 2017, a total of $15,000 (March 31, 2020 - $15,000) was paid or accrued to the Company's CFO. During the three months ended March 31, 2021, the Company reimbursed a company controlled by the CFO a total of $3,150 (March 31, 2020 - $3,150) in office rent.

b) On March 26, 2020, the Company cancelled and concurrently replaced 10,000,000 stock options and 1,000,000 stock options previously issued to the Company’s CEO and a Director of the Company in 2017, respectively. The 11,000,000 replacement options granted have a term of 6 years and are exercisable at a price of $0.14 per share, expiring on March 26, 2026. No stock options were issued during the three month period ending March 31, 2021.

c) The Company recognized $nil (2020 - $1,542,550) in share-based compensation during the period associated with stock options granted to key management personnel.

As at March 31, 2021 and December 31, 2020, there were $nil balances owing to related parties.

17 

PROTOKINETIX, INCORPORATED

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

March 31, 2021

Note 9.  Commitments and Contingency

As at March 31, 2021, the Company has the following commitments:

a) Entered into a consulting agreement with an effective date of January 1, 2017 whereby the Company would pay the consultant $7,000 per month for providing research and development services. On March 25, 2020, the Company cancelled and concurrently approved for issuance on March 26, 2020, 10,000,000 stock options previously issued to the consultant in 2017. The 10,000,000 replacement options granted have a term of 6 years and are exercisable at a price of $0.14 per share, expiring on March 25, 2026.

The 10,000,000 replacement options were accounted for as a modification of the terms of the cancelled award, with the incremental cost being measured as the excess of the fair value of the replacement options over the fair value of the cancelled options at the cancellation date.

Total share-based compensation of $235,703 was recorded in connection with the option modification based on the following assumptions used in the Black-Scholes Option Pricing Model: risk-free interest rate of 0.81%; dividend yield of 0.00%; stock price volatility of 144.40%; forfeiture rate of 0%; and an expected life of 6 years.

On June 12, 2020, the Company cancelled 4,000,000 stock options previously issued in July 2019 to the consultant and replaced them with 3,500,000 stock options. The 3,500,000 replacement options granted have a term of 6 years and are exercisable at a price of $0.12 per share, expiring on June 11, 2026. There was no incremental cost recorded on the option modification based on the following assumptions used in the Black-Scholes Option Pricing Model: risk-free interest rate of 1.76%; dividend yield of 0.00%; stock price volatility of 144.75%; forfeiture rate of 0%; and an expected life of 6 years.

b) Entered into a consulting agreement effective January 1, 2018, whereby the Company would pay the consultant $1,000 per month for a term of 1 year for providing public relations services, unless otherwise terminated by either party with at least 30 days’ notice.

c) Entered into a consulting agreement effective April 1, 2019, whereby the Company would pay the consultant $1,500 per month minimum plus travel expenses for a term of 1 year for providing research consulting services, unless otherwise terminated by either party with at least 30 days’ notice. On May 6, 2020, the Company granted the consultant 500,000 stock options exercisable at a price of $0.11 per share, expiring on May 5, 2026 (Note 5).

d) Entered into a consulting agreement effective September 1, 2020, whereby the Company would pay the consultant CAD $3,000 per month for a term of 1 year for providing technical expertise and public relations services, unless otherwise terminated by either party with at least 30 days’ notice. 

Contingency

The Company was delinquent in filing certain income tax returns with the U.S. Internal Revenue Service and reports disclosing its interest in foreign bank accounts on form TDF 90-22.1, "Report of Foreign Bank and Financial Accounts" ("FBARs"). In September 2015, the Company filed the delinquent income tax returns and has sought waivers of any penalties under the IRS Offshore Voluntary Disclosure Program for late filing of the returns and FBARs.  Under the program, the IRS has indicated that it will not impose a penalty for the failure to file delinquent income tax returns if there are no under reported tax liabilities.  On November 30, 2017, the Company received a letter from the IRS concluding their review of the Company's tax returns under the program and accepting the returns as filed.  No penalties have been assessed by the IRS to date, and management does not believe that the Company will incur any penalties relating to the tax years submitted under the program.

18 

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Unless the context requires otherwise, references in this document to “ProtoKinetix”, “we”, “our”, “us” or the “Company” are to ProtoKinetix, Incorporated.

The following discussion provides information regarding the results of operations for the three month period ended March 31, 2021 and 2020, and our financial condition, liquidity and capital resources as of March 31, 2021 and December 31, 2020.  The financial statements and the notes thereto contain detailed information that should be referred to in conjunction with this discussion.

Cautionary Note Regarding Forward-Looking Statements

The information discussed in this Quarterly Report on Form 10-Q include “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”).  All statements, other than statements of historical facts, included herein and therein concerning, among other things, planned capital expenditures, future cash flows and borrowings, pursuit of potential acquisition opportunities, our financial position, business strategy and other plans and objectives for future operations, are forward looking statements. These forward looking statements are identified by their use of terms and phrases such as “may,” “expect,” “estimate,” “project,” “plan,” “believe,” “intend,” “achievable,” “anticipate,” “will,” “continue,” “potential,” “should,” “could,” and similar terms and phrases.  Although we believe that the expectations reflected in these forward looking statements are reasonable, they do involve certain assumptions, risks and uncertainties and are not (and should not considered to be) guarantees of future performance. Our results could differ materially from those anticipated in these forward looking statements as a result of certain factors, including, among others:

• Our capital requirements and the uncertainty of being able to obtain additional funding on terms acceptable to us;

• Our plans to develop and commercialize products from the AAGP® molecule;

• Ongoing testing of the AAGP® molecule;

• Our intellectual property position;

• Our commercialization, marketing and manufacturing capabilities and strategy;

• Our ability to retain key members of our senior management and key scientific consultants;

• The effects of competition;

• Our potential tax liabilities resulting from conducting business in the United States and Canada;

• The effect of further sales or issuances of our common stock and the price and volume volatility of our common stock; and

• Our common stock’s limited trading history.

Finally, our future results will depend upon various other risks and uncertainties, including, but not limited to, those detailed in our filings with the SEC under the Exchange Act and the Securities Act, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2020.  All forward looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements in this paragraph and elsewhere in this Quarterly Report. Other than as required under securities laws, we do not assume a duty to update these forward looking statements, whether as a result of new information, subsequent events or circumstances, changes in expectations or otherwise.

Business Overview

ProtoKinetix, Incorporated is a research and development stage bio-technology company focused on scientific medical research of AFGPs (Anti-Freeze Glycoproteins) or anti-aging glycoproteins, trademarked as AAGP®.  The Company has recently been in the process of directing major efforts to the practical side of commercial validation.  The commercial applications for AAGP® in large markets such as targeted health care solutions are numerous, and ProtoKinetix is currently working with researchers, business leaders and advisors and commercial entities to bring AAGP® to market.

In March 2020, the World Health Organization declared coronavirus COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, and any related adverse public health developments, has adversely affected workforces, economies, and financial markets globally, potentially leading to an economic downturn.

As of the date of this filing, the Company has regained a significant portion of its operational capacity and we continue to move forward with our research goals. Our supply of the patented AAGP® molecule has been manufactured and stored in the United States and we have adequate inventory to carry out the projects currently underway. The Company engages contract research organizations (CROs) located in both the United States and Canada. The CROs contracted by the Company for research projects have been able to meet milestone goals without disruption due to the pandemic. We cannot predict future disruptions to the Company which may occur due to the spread of COVID-19. We continue to monitor the status of the pandemic and will adjust our strategy accordingly in order to mitigate the impact on our research projects.

19 

Results of Operations

The following table shows selected financial data and operating results for the periods noted.  Following the table, please see management’s discussion of significant changes.

	For the Three Months Ended
	March 31,
	2021			2020
Revenues	$	—		$	—
Cost of Sales	—			—
Gross (Loss) Profit		—			—
Operating Expenses
Amortization	$	750		$	750
General and Administrative		41,045			57,029
Professional Fees		32,668			36,990
Research and Development		41,313			219,512
Share-Based Compensation		17,278			2,854,984
Total Operating Expenses		133,075			3,169,265
Loss from Operations		(133,075	)		(3,169,265	)
Other Income
Foreign Exchange Loss		—			—
Total Other Loss		—			—
Net Loss	$	(133,075	)		(3,169,265	)

Revenues

We had no revenues for the three month periods ended March 31, 2021 and 2020.

Gross Profit and Expenses

The Company’s net loss was $133,075 for the three month period ended March 31, 2021 compared to $3,169,265 for the three month period ended March 31, 2020.  These expenses were primarily incurred for professional fees, consulting services related to the operations of the Company’s business, research and development and other general and administrative expenses.  Significant changes from the prior three month period ended March 31, 2020 include:

General and administrative fees decreased by $15,984 from $57,029 to $41,045 primarily as a result of a decrease in spending on advertising and investor relations.

Research and development significantly decreased year over year with a change of $178,199 from $219,512 to $41,313 as the impact of covid-19 continues to keep academic labs and contract research facilities limited in their capacities. There is some increase in activity as the Phase I trials at the University of Alberta, Edmonton, Alberta, Canada have been cleared to resume.

Share-based compensation decreased dramatically by $2,837,706 from $2,854,984 to $17,278 primarily as a result of a decrease in the value of management stock options vesting during the period. All granted management stock options are vested and no management stock options were granted in the three month period ending March 31, 2021.

20 

Liquidity and Capital Resources

The following summarizes our statements of cash flows at March 31, 2021 and December 31, 2020:

	March 31, 2021		December 31, 2020
Cash	$	250,367	$	193,445
Working Capital	$	246,417	$	149,536

At March 31, 2021, we had $250,367 in cash and $251,417 in total current assets.  As of March 31, 2021, we had a positive working capital equity position of $246,417. Based upon our working capital equity as of March 31, 2021, we will require additional equity and/or debt financing in order to meet cash flow projections and carry forward our business objectives.  

There can be no assurance that in the future we will be able to raise capital from outside sources in sufficient amounts to fund our new business. The failure to secure adequate outside funding would have an adverse effect on our plan of operation and results therefrom and a corresponding negative impact on stockholder liquidity.

Sources and Uses of Cash

Net Cash Used in Operating Activities

Net cash used in operating activities decreased by $162,771 from $155,029 to $317,800 for the three months ended March 31, 2019 and 2021, respectively.  This decrease was predominantly due to reduced spending on research and marketing due to covid-19 related closures.

Net Cash Used in Investing Activities

Net cash used in investing activities was $35,072 for the three month period ended March 31, 2021 while the Company had net cash used in investing activities of $11,660 for the comparative period.  The difference is attributable to an increase in the purchase and maintenance of intangible assets.

Net Cash Provided by Financing Activities

Net cash provided by financing activities increase by $247,000 from $nil to $247,000 for the three months ended March 31, 2020 and 2021, respectively due to a decrease of funding from private placements.

Going Concern

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”), which contemplate continuation of the Company as a going concern.  The history of losses and the inability for the Company to make a profit from selling a good or service has raised substantial doubt about our ability to continue as a going concern. In spite of the fact that the current cash obligations of the Company are relatively minimal, given the cash position of the Company, we have very little cash to operate. We intend to fund the Company and attempt to meet corporate obligations by selling common stock.  However, the price and volume of the Company’s common stock is volatile.

Off-Balance Sheet Arrangements

None.

Contractual Obligations

As a smaller reporting company, we are not required to provide the information required by paragraph (a)(5) of this Item.

Critical Accounting Policies

The preparation of financial statements in conformity with U.S. GAAP requires management to make a variety of estimates and assumptions that affect (i) the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and (ii) the reported amounts of revenues and expenses during the reporting periods covered by the financial statements.

21 

Our management routinely makes judgments and estimates about the effect of matters that are inherently uncertain. As the number of variables and assumptions affecting the future resolution of the uncertainties increase, these judgments become even more subjective and complex. Although we believe that our estimates and assumptions are reasonable, actual results may differ significantly from these estimates. Changes in estimates and assumptions based upon actual results may have a material impact on our results of operation and/or financial condition. Our significant accounting policies are disclosed in Note 2 to the Financial Statements included in this Form 10-Q.

While all of the significant accounting policies are important to the Company’s financial statements, the following accounting policies and the estimates derived there from have been identified as being critical.

Share-Based Compensation

The Company accounts for stock compensation with persons classified as employees for accounting purposes in accordance with ASC 718 “Compensation – Stock Compensation”, which recognizes awards at fair value on the date of grant and recognition of compensation over the service period for awards expected to vest. Cliff Vesting is used and awards vest on the last day of the vesting period. The fair value of stock options is determined using the Black-Scholes Option Pricing Model. The fair value of common shares issued for services is determined based on the Company’s stock price on the date of issuance.

Share-Based Compensation for non-employees in exchange for goods and services used or consumed in an entity’s own operations are also recorded at fair value on the measurement date and accounted for in accordance with ASC 718. The measurement of share-based compensation is subject to periodic adjustment as the underlying instruments vest. The fair value of stock options is estimated using the Black-Scholes Option Pricing Model and the compensation charges are amortized over the vesting period.

Sales and Marketing

The Company is currently not selling or marketing any products.

Inflation

Although management expects that our operations will be influenced by general economic conditions, we do not believe that inflation had a material effect on our results of operations during the three months ended March 31, 2021.

Item 3. Quantitative and Qualitative Disclosure About Market Risk

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, we are not required to provide information required by this Item.

22 

Item 4: Controls and Procedures

Disclosure Controls and Procedures

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 (the “1934 Act”) is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the 1934 Act is accumulated and communicated to management, including our principal executive officer and our principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Our management, under the direction of our Chief Executive Officer (who is our principal executive officer), and Chief Financial Officer (who is our principal accounting officer) has evaluated the effectiveness of our disclosure controls and procedures as required by 1934 Act Rule 13a-15(b) as of March 31, 2021 (the end of the period covered by this report).  Based on that evaluation, our principal executive officer and our principal accounting officer concluded that these disclosure controls and procedures are effective to provide reasonable assurance that information required to be disclosed by the Company in the reports that it files or submits under the 1934 Act is accumulated and communicated to management, including the Chief Executive Officer and the Chief Financial Officer, to allow timely decisions regarding required disclosure and are effective to provide reasonable assurance that such information is recorded, processed, summarized and reported within the time periods specified by the SEC’s rules and forms.

The Company, including its Chief Executive Officer and Chief Financial Officer, does not expect that its internal controls and procedures will prevent or detect all error and all fraud. A control system, no matter how well conceived or operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.

Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) promulgated by the SEC under the 1934 Act) during the three months ended March 31, 2021, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

23 

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

Other than previously reported, the Company and its management are not aware of any regulatory or legal proceedings or investigations pending involving the Company, any of its subsidiaries or affiliates, or any of their respective officers, directors or employees.

Item 1A. Risk Factors

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, we are not required to provide information required by this Item.  However, our current risk factors are set forth in our Annual Report on Form 10-K for the year ended December 31, 2020 as filed with the SEC on March 5, 2021.

We face significant business disruption and related risks resulting from the COVID-19 pandemic, which could have a material adverse effect on our business and results of operations. 

The ongoing and developing COVID-19 pandemic has caused a broad impact globally. While the potential economic impact brought by, and the duration of, the COVID-19 pandemic is difficult to assess or predict, any resulting recession or economic slowdown will have a negative impact on our business and results of operations.

As of the date of this filing, the Company has regained a significant portion of its operational capacity and we continue to move forward with our research goals. Our supply of the patented AAGP® molecule has been manufactured and stored in the United States and we have adequate inventory to carry out the projects currently underway. The Company engages contract research organizations (CROs) located in both the United States and Canada. The CROs contracted by the Company for research projects have been able to meet milestone goals without disruption due to the pandemic. We cannot predict future disruptions to the Company which may occur due to the spread of COVID-19. We continue to monitor the status of the pandemic and will adjust our strategy accordingly in order to mitigate the impact on our research projects.

In addition, any significant disruption of global financial markets, reducing our ability to access capital, could negatively affect our liquidity and ability to continue operations. The exact impact is and will remain unknown and largely dependent upon future developments, including but not limited to information on the duration and spread of COVID-19, changes in customer demand, additional mitigation strategies proposed by governmental authorities (including federal, state, or local stay at home or similar orders), restrictions on the activities of our domestic and international suppliers and shipment of goods.

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

Issued 3,528,572 units (each unit consisting of 1 share of common stock and 1 warrant to purchase 1 share of common stock at $0.07) as part of a private placement for total proceeds of $247,000.

Between January 7, 2021 and February 25, 2021, the Company sold 3,528,572 Units (each Unit comprised of one common share and one warrant to purchase one common share at $0.07) for gross proceeds of $247,000 to accredited investors in a private placement. The warrants were immediately vested and expire one year from the date of issuance. No solicitation was used in the offering. The Company relied on the exemption from registration available under Section 4(a)(2) of the 1933 Act and Rule 506(b) of Regulation D promulgated under the 1933 Act with respect to transactions by an issuer not involving any public offering.  No commissions were paid in connection with these issuances of securities.  A Form D was filed on January 19, 2021, and an amended Form D was filed on March 1, 2021.

Item 3. Defaults upon Senior Securities

None.

Item 4. Mine Safety Disclosure

Not applicable.

Item 5. Other Information

24 

Item 6. Exhibits

The following is a complete list of exhibits filed as part of this Form 10-Q.  Exhibit numbers correspond to the numbers in the Exhibit Table of Item 601 of Regulation S-K.

EXHIBIT INDEX

The following documents are being filed with the Commission as exhibits to this Quarterly Report on Form 10-Q.

Exhibit	Description
3.1	Articles of Incorporation as filed on December 23, 1999(1)
3.2	Articles of Amendment to Articles of Incorporation as filed on July 8, 2003(11)
3.3	Articles of Amendment to Articles of Incorporation as filed on December 8, 2003(11)
3.4	Certificate of Change to the Articles of Incorporation as filed November 16, 2011(11)
3.5	Certificate of Change to the Articles of Incorporation as filed May 1, 2014(11)
3.6	Bylaws(1)
4.1	Amended 2017 Stock Option and Stock Bonus Plan(2)
4.2	Amendment to Amended 2017 Stock Option and Stock Bonus Plan as approved on July 15, 2019(5)
4.3	Amendment to Amended 2017 Stock Option and Stock Bonus Plan as approved on April 6, 2020(9)
10.1	Royalty Agreement between the Company and The Governors of the University of Alberta, dated April 8, 2015(3)
10.2	Collaborative Research Agreement between the Company and the University of British Columbia, dated May 31, 2016(4)
10.3	Consulting Agreement between the Company and Clarence E. Smith, dated December 30, 2016(6)
10.4	Director Consulting Agreement between the Company and Edward P. McDonough, dated December 30, 2016(6)
10.5	Consulting Agreement between the Company and Grant Young, dated December 30, 2016(7)
10.6	First Amendment to Consulting Agreement between Clarence E. Smith and the Company dated September 1, 2017(8)
10.7	First Amendment to Consulting Agreement between Grant Young and the Company dated September 1, 2017(8)
10.8	First Amendment to Consulting Agreement between Edward P. McDonough and the Company dated September 1, 2017(8)
10.9	Consulting Agreement between ProtoKinetix Incorporated and Michael Guzzetta, dated November 14, 2017(10)
31.1	Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
31.2	Certification of the Principal Financial Officer and Principal Accounting Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
32.1	Certification of the Principal Executive Officer and the Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**
101	Inline interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Balance Sheets, (ii) the Statements of Operations, (iii) Statements of Stockholders Equity, (iv) Statements of Cash Flows and (v) the Notes to the Financial Statements *
104	Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).*

25 

1. Incorporated by reference from the Company’s registration statement on Form 10-SB filed on June 22, 2001 with the SEC.

2. Incorporated by reference from the Company’s Current Report on Form 8-K filed on November 13, 2018 with the SEC.

3. Incorporated by reference from the Company’s Annual Report on Form 10-K filed on April 14, 2015 with the SEC.

4. Incorporated by reference from the Company’s Quarterly Report on Form 10-Q filed on August 15, 2016 with the SEC.

5. Incorporated by reference from the Company’s Current Report on Form 8-K filed on July 17, 2019 with the SEC.

6. Incorporated by reference from the Company’s Annual Report on Form 10-K filed on February 21, 2017 with the SEC.

7. Incorporated by reference from the Company’s Quarterly Report on Form 10-Q filed on November 13, 2017 with the SEC.

8. Incorporated by reference from the Company’s amended Current Report on Form 8-K filed on September 12, 2017 with the SEC.

9.	Incorporated by reference from the Company’s Current Report on Form 8-K filed on April 10, 2020 with the SEC.
10.	Incorporated by reference from the Company’s Current Report on Form 8-K filed on November 15, 2017 with the SEC.

11.	Incorporated by reference from the Company’s Quarterly Report on Form 10-Q filed on July 10, 2020 with the SEC.
*	Filed herewith.

** Furnished, not filed herewith.

26 

 SIGNATURES

Pursuant to the requirements of Section 12 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.

Date: April 16, 2021	PROTOKINETIX, INCORPORATED
	By: /s/ Clarence E. Smith
	Clarence E. Smith
	Chief Executive Officer
	By: /s/ Michael Guzzetta
	Michael Guzzetta
	Chief Financial Officer

27 

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Clarence E. Smith, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of ProtoKinetix, Incorporated for the period ended March 31, 2021;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

April 16, 2021	/s/ Clarence E. Smith
	Name:	Clarence E. Smith
	Title:	Chief Executive Officer (Principal Executive Officer)

EX-31

EXHIBIT 31.2

CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael R. Guzzetta, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of ProtoKinetix, Incorporated for the period ended March 31, 2021;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

April 16, 2021	/s/ Michael R. Guzzetta
	Name:	Michael R. Guzzetta
	Title:	Chief Financial Officer (Principal Financial Officer)

EX-32

EXHIBIT 32

CERTIFICATION PURSUANT TO

18 U.S.C. §1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of ProtoKinetix, Incorporated, (the “Company”) on Form 10-Q for the period ended March 31, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Clarence E. Smith, Chief Executive Officer and Principal Executive Officer of the Company and Michael R. Guzzetta, Chief Financial Officer and Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of the undersigned’s knowledge and belief:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.

April 16, 2021	/s/ Clarence E. Smith
	Name:	Clarence E. Smith
	Title:	Chairman of the Board and Chief Executive Officer (Principal Executive Officer)

April 16, 2021	/s/ Michael R. Guzzetta
	Name:	Michael R. Guzzetta
	Title:	Chief Financial Officer (Principal Financial Officer)

This certification accompanies this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

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Cover - shares	3 Months Ended
	Mar. 31, 2021	Apr. 16, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2021
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31
Entity File Number	000-32917
Entity Registrant Name	PROTOKINETIX, INCORPORATED
Entity Central Index Key	0001128189
Entity Tax Identification Number	94-3355026
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	412 Mulberry St.
Entity Address, City or Town	Marietta
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	45750
City Area Code	740
Local Phone Number	434-5041
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		289,483,643

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BALANCE SHEETS (Unaudited) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Current Assets
Cash	$ 250,367	$ 193,445
Prepaid expenses (Note 3)	1,050	1,050
Total current assets	251,417	194,495
Intangible assets (Note 4)	309,008	274,686
Total assets	560,425	469,181
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable	0	17,959
Accrued liabilities	5,000	27,000
Total current liabilities	5,000	44,959
Stockholders’ Equity
Common stock, $0.0000053 par value; 400,000,000 common shares authorized; 285,955,071 and 285,955,071 shares issued and outstanding as at March 31, 2021 and December 31, 2020 respectively (Note 7)	1,550	1,531
Additional paid-in capital	43,879,582	43,615,323
Accumulated deficit	(43,325,707)	(43,192,633)
Total stockholders’ equity	555,425	424,221
Total liabilities and stockholders’ equity	$ 560,425	$ 469,181

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BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Common Stock, Par Value Per Share	$ 0.0000053	$ 0.0000053
Common Stock, Shares Authorized	400,000,000	400,000,000
Common Stock, Shares, Issued	285,955,071	285,955,071
Common Stock, Shares, Outstanding	285,955,071	285,955,071

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STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
EXPENSES
Amortization – intangible assets (Note 4)	$ 750	$ 750
General and administrative	41,045	57,029
Professional fees	32,688	36,990
Research and development	41,313	219,512
Share-based compensation (Notes 5 and 8)	17,278	2,854,984
Total Expenses	(133,074)	(3,169,265)
Net loss for the period	$ (133,074)	$ (3,169,265)
Net loss per common share (basic and diluted)	$ (0.01)	$ (0.01)
Weighted average number of common shares outstanding (basic and diluted)	281,390,520	275,400,259

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STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Dec. 31, 2019	$ 1,472	$ 36,107,058	$ (35,548,143)	$ 560,387
Beginning Balance, Shares at Dec. 31, 2019	275,400,259
Fair value of share-based compensation		2,854,984		2,854,984
Net loss for the period			(3,169,265)	(3,169,265)
Ending balance, value at Mar. 31, 2020	$ 1,472	38,962,042	(38,717,408)	246,106
Ending Balance, Shares at Mar. 31, 2020	275,400,259
Beginning balance, value at Dec. 31, 2020	$ 1,531	43,615,323	(43,192,633)	424,221
Beginning Balance, Shares at Dec. 31, 2020	285,955,071
Issuance of common stock pursuant to private placement offering	$ 19	246,981		247,000
Issuance of common stock pursuant to private placement offering, Shares	3,528,572
Fair value of share-based compensation		17,278		17,278
Net loss for the period			(133,074)	(133,074)
Ending balance, value at Mar. 31, 2021	$ 1,550	$ 43,879,582	$ (43,325,707)	$ 555,425
Ending Balance, Shares at Mar. 31, 2021	289,483,643

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STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CASH FLOWS USED IN OPERATING ACTIVITIES
Net loss for the period	$ (133,074)	$ (3,169,265)
Adjustments to reconcile net loss to cash used in operating activities:
Amortization – intangible assets	750	750
Fair value of share-based compensation	17,278	2,854,984
Changes in operating assets and liabilities:
Accounts payable and accrued liabilities	(39,960)	(4,269)
Net cash used in operating activities	(155,006)	(317,800)
CASH FLOWS USED IN INVESTING ACTIVITIES
Purchase of intangible assets	(35,072)	(11,660)
Net cash used in investing activities	(35,072)	(11,660)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock for cash	247,000	0
Net cash from financing activities	247,000	0
Net change in cash	56,922	(329,460)
Cash, beginning of period	193,445	377,349
Cash, end of period	250,367	47,889
Cash paid for interest	0	0
Cash paid for income taxes	0	0
Supplementary information – non-cash transactions:
Intangible asset additions included in accounts payable and accrued liabilities	$ 0	$ 7,618

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Basis of Presentation – Going Concern Uncertainties

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation – Going Concern Uncertainties

Note 1.  Basis of Presentation – Going Concern Uncertainties

ProtoKinetix, Incorporated (the “Company”), a development stage company, was incorporated under the laws of the State of Nevada on December 23, 1999.  The Company is a medical research company whose mission is the advancement of human health care.

The Company is currently researching the benefits and feasibility of synthesized Antifreeze Glycoproteins (“AFGP”) or anti-aging glycoproteins, trademarked AAGP.  During the year ended December 31, 2015, the Company acquired certain patents and rights for cash consideration of $30,000 (25,000 Euros), as well as additional patent applications for cash consideration of $10,000 and 6,000,000 share purchase warrants with a fair value of $25,000 (Note 4).

The Company’s financial statements are prepared consistent with accounting principles generally accepted in the United States applicable to a going concern.

The Company has not developed a commercially viable product, has not generated any significant revenue to date, and has incurred losses since inception, resulting in a net accumulated deficit at March 31, 2021.  These factors raise substantial doubt about the Company’s ability to continue as a going concern.

The Company needs additional working capital to continue its medical research or to be successful in any future business activities and continue to pay its liabilities.  Therefore, continuation of the Company as a going concern is dependent upon obtaining the additional working capital necessary to accomplish its objective.  Management is presently engaged in seeking additional working capital through equity financing or related party loans.

In March 2020, the World Health Organization declared coronavirus COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, and any related adverse public health developments, has adversely affected workforces, economies, and financial markets globally, potentially leading to an economic downturn. It is not possible for the Company to predict the duration or magnitude of the adverse results of the outbreak and its effects on the Company’s business or ability to raise funds.

The accompanying financial statements do not include any adjustments to the recorded assets or liabilities that might be necessary should the Company fail in any of the above objectives and is unable to operate for the coming year.

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited financial statements have been prepared by the Company in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) applicable to interim financial information and with the rules and regulations of the United States Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed, or omitted, pursuant to such rules and regulations. In the opinion of management, the unaudited interim financial statements include all adjustments necessary for the fair presentation of the results of the interim periods presented. All adjustments are of a normal recurring nature, except as otherwise noted below. These financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended December 31, 2020, included in the Company’s Annual Report on Form 10-K, filed March 5, 2021, with the Securities and Exchange Commission. The results of operations for the interim periods are not necessarily indicative of the results of operations for any other interim period or for a full fiscal year.

Use of Estimates

Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.  The more significant accounting estimates inherent in the preparation of the Company’s financial statements include estimates as to valuation of equity related instruments issued, deferred income taxes, and the useful life and impairment of intangible assets.

Cash

Cash consists of funds held in checking accounts. Cash balances may exceed federally insured limits from time to time.

Fair Value of Financial Instruments

Financial instruments, which includes cash and accounts payable and accrued liabilities, are carried at cost, which management believes approximates fair value due to the short-term nature of these instruments.

The Company measures the fair value of financial assets and liabilities pursuant to ASC 820 “Fair Value Measurements and Disclosures” which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The policy describes three levels of inputs that may be used to measure fair value:

Level 1 – quoted prices in active markets for identical assets or liabilities

Level 2 – quoted prices for similar assets and liabilities in active markets or inputs that are observable

Level 3 – inputs that are unobservable (for example cash flow modeling inputs based on assumptions)

Level 1 inputs are used to measure cash. At March 31, 2021, there were no other assets or liabilities subject to additional disclosure.

Income Taxes

The Company accounts for income taxes following the assets and liability method in accordance with the ASC 740 “Income Taxes.”  Under such method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.  The Company applies the accounting guidance issued to address the accounting for uncertain tax positions.  This guidance clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements as well as provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years that the asset is expected to be recovered or the liability settled.

Intangible assets – patent and patent application costs

The Company owns intangible assets consisting of certain patents and patent applications. Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. Subsequent expenditures are capitalized only when they increase the future economic benefits embodied in the specific asset to which they relate. All other expenditures are recognized in profit or loss as incurred.

As at March 31, 2021, the Company does not hold any intangible assets with indefinite lives.

Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization method and amortization period of an intangible asset with a finite life is reviewed at least annually.

Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates. Amortization is recognized in profit or loss on a straight-line basis over the estimated useful lives of the Company’s patents. No amortization is recognized on patent application costs, as amortization of these costs will only commence once the patents have been granted.

Research and Development Costs

Research and development costs are expensed as incurred.

Loss per Share and Potentially Dilutive Securities

Basic loss per share is computed by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding in the period.  Diluted loss per share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive securities.  The effect of 81,050,000 stock options (March 31, 2020 – 84,450,000), and 13,855,429 warrants (March 31, 2020 – 8,500,000) were not included in the computation of diluted earnings per share for all periods presented because it was anti-dilutive due to the Company’s losses.

Share-Based Compensation

The Company has granted warrants and options to purchase shares of the Company’s common stock to various parties for consulting services.  The fair values of the warrants and options issued have been estimated using the Black-Scholes Option Pricing Model.

The Company accounts for stock compensation with persons classified as employees for accounting purposes in accordance with ASC 718 “Compensation – Stock Compensation”, which recognizes awards at fair value on the date of grant and recognition of compensation over the service period for awards expected to vest. Cliff Vesting is used and awards vest on the last day of the vesting period. The fair value of stock options is determined using the Black-Scholes Option Pricing Model. The fair value of common shares issued for services is determined based on the Company’s stock price on the date of issuance.

Share-based compensation for non-employees in exchange for goods and services used or consumed in an entity’s own operations are also recorded at fair value on the measurement date and accounted for in accordance with ASC 718. The measurement of share-based compensation is subject to periodic adjustment as the underlying instruments vest. The fair value of stock options is estimated using the Black-Scholes Option Pricing Model and the compensation charges are amortized over the vesting period.

Common stock

Common stock issued for non-monetary consideration are recorded at their fair value on the measurement date and classified as equity. The measurement date is defined as the earliest of the date at which the commitment for performance by the counterparty to earn the common shares is reached or the date at which the counterparty’s performance is complete.

Transaction costs directly attributable to the issuance of common stock, units and stock options are recognized as a deduction from equity, net of any tax effects.

Related Party Transactions

A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company.  A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

Recent Accounting Pronouncements

Certain new accounting pronouncements that have been issued are not expected to have a material effect on the Company’s financial statements.

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Prepaid Expenses

3 Months Ended

Mar. 31, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Prepaid Expenses

Note 3.   Prepaid Expenses

The following summarizes the Company’s prepaid expenses outstanding as at March 31, 2021 and December 31, 2020:

	March 31,  2021		December 31,   2020
Supplementary information – non-cash transactions:
Rental deposit	$	1,050	$	1,050
Total	$	1,050	$	1,050

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Intangible Assets

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Note 4.   Intangible Assets

Intangible asset transactions are summarized as follows:

	Patent Rights		Patent Application Rights		Total
Cost
Balance, December 31, 2019	$	30,000	$	191,008	$	221,008
Additions		—		70,178		70,178
Balance, December 31, 2020	$	30,000	$	261,186	$	291,186
Additions		—		35,072		35,072
Balance, March 31, 2021	$	30,000	$	296,258	$	326,258
Accumulated amortization
Balance, December 31, 2019	$	13,500	$	—	$	13,500
Amortization		3,000		—		3,000
Balance, December 31, 2020	$	16,500	$	—	$	16,500
Amortization		750		—		750
Balance, March 31, 2021	$	17,250	$	—	$	17,250
Net carrying amounts
December 31, 2020	$	13,500	$	261,186	$	274,686
March 31, 2021	$	12,750	$	296,258	$	309,008

During the year ended December 31, 2015, the Company entered into an Assignment of Patents and Patent Application (effective January 1, 2015) (the “Patent Assignment”) with the Institut National des Sciences Appliquees de Rouen (“INSA”) for the assignment of certain patents and all rights associated therewith (the “Patents”). The Company and INSA had previously entered into a licensing agreement for the Patents in August 2004. The Patent Assignment transfers all of the Patents and rights associated therewith to the Company upon payment to INSA in the sum of $30,000. During the three month period ended March 31, 2021, the Company recorded $750 (2020 -$750) in amortization expense associated with the Patents.

During the year ended December 31, 2015, the Company entered into a Technology Transfer Agreement with Grant Young for the assignment of his 50% ownership of certain patents and all rights associated therewith (the “Patent Application Rights”).  In exchange for the Patent Application Rights, the Company agreed to pay $10,000 (paid) and to issue 6,000,000 warrants (issued) to purchase shares of the Company’s common stock at an exercise price of $0.10 per share for a period of five years. The Patent Application Rights had a total fair value of $35,000, which was allocated as $10,000 to the cash consideration paid, with the remaining $25,000 being allocated to the warrant component of the overall consideration. The Company has incurred $261,258 in direct costs relating to the Patent Application Rights, $35,072 of which were incurred during the three month period ended March 31, 2021.

The remaining 50% ownership of the Patent Application Rights was acquired from the Governors of the University of Alberta in exchange for a future gross revenue royalty.

During the year ended December 31, 2016, the Company entered into a Universal Assignment with Grant Young for the assignment of his ownership of certain new and useful improvements in an invention entitled “Use of Anti-Aging Glycoprotein for Enhancing Survival of Neurosensory Precursor Cells” (the “New Patent Application Rights”).  In exchange for the New Patent Application Rights, the Company agreed to pay $1 (paid).  The Company incurred $2,415 in direct costs relating to the New Patent Application Rights during the year ended December 31, 2016.

No amortization was recorded on the Patent Application Rights to March 31, 2021.

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Stock Options

3 Months Ended

Mar. 31, 2021

Stock Options

Stock Options

Note 5.  Stock Options

Pursuant to an amendment on April 6, 2020, the aggregate number of shares that may be issued under the 2017 Stock Option and Stock Bonus Plan (the “2017 Plan”) is 85,700,000 shares, subject to adjustment as provided therein. The 2017 Plan is administered by the Company’s Board of Directors, or a committee appointed by the Board of Directors, and includes two types of options. Options intended to qualify as incentive stock options under Section 422 of the Internal Revenue Code of 1986, as amended, are referred to as incentive options. Options that are not intended to qualify as incentive options are referred to as non-qualified options. The exercise price of an option may be paid in cash, in shares of the Company's common stock or other property having a fair market value equal to the exercise price of the option, or in a combination of cash, shares, other securities and property.

As of March 31, 2021, there are 81,050,000 options granted and outstanding under the 2017 Plan.

Stock option transactions are summarized as follows:

	Number of Stock Options			Weighted Average Exercise Price
				$		(Years)
Outstanding, December 31, 2020		82,650,000			0.15
Options cancelled		(1,600,000	)		0.13
Outstanding, March 31, 2021		81,050,000			0.14		4.06

	Number of Stock Options			Weighted Average Exercise Price		Weighted Average Remaining Life
				$		(Years)
Outstanding, December 31, 2019		91,450,000			0.14
Options cancelled		(27,000,000	)		0.09
Options expired		(2,000,000	)		0.04
Options granted		22,000,000			0.14
Outstanding, March 31, 2020		84,450,000			0.16		4.56

During the three month period ended March 31, 2021 the Company cancelled 1,600,000 options for shares of common stock exercisable at $0.13 per share, expiring May 6, 2023.

Total share-based compensation for stock options granted during the period March 31, 2021 was $17,278 (2020 - $2,854,984). The fair values of the stock options granted during the three month period ended March 31, 2021 and 2020 were estimated using the Black-Scholes Option Pricing Model, based on the following weighted average assumptions:

	March 31, 2021			March 31, 2020
Risk-free interest rate		2.55	%		2.56	%
Dividend yield		0.00	%		0.00	%
Expected stock price volatility		143.56	%		138.90	%
Expected forfeiture rate		0.00	%		0.00	%
Expected life		5.09 years			5.07 years

The following non-qualified stock options were outstanding and exercisable at March 31, 2021:

Expiry date	Exercise Price		Number of Options Outstanding		Number of Options Exercisable
	$
November 14, 2021		0.07		750,000		750,000
December 31, 2022		0.06		800,000		800,000
August 31, 2023		0.08		600,000		600,000
November 8, 2023		0.09		15,000,000		15,000,000
July 14, 2024		0.26		18,500,000		18,500,000
November 17, 2024		0.11		15,000,000		15,000,000
March 26, 2026		0.14		22,000,000		22,000,000
May 5, 2026		0.11		650,000		650,000
June 11, 2026		0.12		7,000,000		7,000,000
October 26, 2026		0.10		500,000		250,000
November 27, 2026		0.10		250,000		187,500
				81,050,000		80,737,500

As at March 31, 2021, the aggregate intrinsic value of the Company’s stock options is $5,607,750 (December 31, 2020 – $2,330,750). The weighted average fair value of stock options granted during the three month period ended March 31, 2021 is $Nil (2020 - $0.14).

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Warrants

3 Months Ended

Mar. 31, 2021

Warrants

Warrants

Note 6.  Warrants

Warrant transactions for the three months ended March 31, 2021 are summarized as follows:

	Number of Warrants		Weighted Average Exercise Price
			$
Outstanding, December 31, 2020		10,326,857		0.19
Warrants granted		3,528,572		0.07
Outstanding, March 31, 2021		13,855,429		0.19

The following warrants were outstanding and exercisable as at March 31, 2021:

Number of Warrants		Exercise Price ($)		Expiry Date
	6,000,000		0.26	July 14, 2024
	833,333		0.12	October 15, 2022
	250,000		0.12	October 21, 2022
	116,667		0.12	November 1, 2022
	83,334		0.12	November 12, 2022
	833,333		0.12	December 1 , 2022
	166,667		0.12	December 18, 2022
	216,666		0.12	December 18, 2022
	325,000		0.07	December 23, 2021
	142,571		0.07	December 29, 2021
	1,359,286		0.07	December 31, 2021
	1,100,000		0.07	January 07, 2022
	442,857		0.07	January 12, 2022
	571,429		0.07	January 13, 2022
	100,000		0.07	January 20, 2022
	500,000		0.07	January 25, 2022
	100,000		0.07	February 04, 2022
	357,143		0.07	February 08, 2022
	357,143		0.07	February 25, 2022
	13,855,429		0.18

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Stockholders’ Equity

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

Stockholders’ Equity

Note 7.  Stockholders’ Equity

The Company is authorized to issue 400,000,000 (December 31, 2020 – 400,000,000) shares of $0.0000053 par value common stock. Each holder of common stock has the right to one vote but does not have cumulative voting rights. Shares of common stock are not subject to any redemption or sinking fund provisions, nor do they have any preemptive, subscription or conversion rights. Holders of common stock are entitled to receive dividends whenever funds are legally available and when declared by the board of directors, subject to the prior rights of holders of all classes of stock outstanding having priority rights as to dividends. No dividends have been declared or paid as of March 31, 2021 (December 31, 2020 - $nil).

During the three month period ended March 31, 2021, the Company:

a) Issued 3,528,572 units (each unit consisting of 1 share of common stock and 1 warrant to purchase 1 share of common stock at $0.07) as part of a private placement for total proceeds of $247,000.

During the three month period ended March 31, 2020, the Company:

a) No shares of common stock were issued.

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Related Party Transactions and Balances

3 Months Ended

Mar. 31, 2021

Related Party Transactions [Abstract]

Related Party Transactions and Balances

Note 8. Related Party Transactions and Balances

During the three month period ended March 31, 2021 and 2020, the Company entered into the following related party transactions:

a) Pursuant to a consulting agreement with an effective date of November 14, 2017, a total of $15,000 (March 31, 2020 - $15,000) was paid or accrued to the Company's CFO. During the three months ended March 31, 2021, the Company reimbursed a company controlled by the CFO a total of $3,150 (March 31, 2020 - $3,150) in office rent.

b) On March 26, 2020, the Company cancelled and concurrently replaced 10,000,000 stock options and 1,000,000 stock options previously issued to the Company’s CEO and a Director of the Company in 2017, respectively. The 11,000,000 replacement options granted have a term of 6 years and are exercisable at a price of $0.14 per share, expiring on March 26, 2026. No stock options were issued during the three month period ending March 31, 2021.

c) The Company recognized $nil (2020 - $1,542,550) in share-based compensation during the period associated with stock options granted to key management personnel.

As at March 31, 2021 and December 31, 2020, there were $nil balances owing to related parties.

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Commitments and Contingency

3 Months Ended

Mar. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingency

Note 9.  Commitments and Contingency

As at March 31, 2021, the Company has the following commitments:

a) Entered into a consulting agreement with an effective date of January 1, 2017 whereby the Company would pay the consultant $7,000 per month for providing research and development services. On March 25, 2020, the Company cancelled and concurrently approved for issuance on March 26, 2020, 10,000,000 stock options previously issued to the consultant in 2017. The 10,000,000 replacement options granted have a term of 6 years and are exercisable at a price of $0.14 per share, expiring on March 25, 2026.

The 10,000,000 replacement options were accounted for as a modification of the terms of the cancelled award, with the incremental cost being measured as the excess of the fair value of the replacement options over the fair value of the cancelled options at the cancellation date.

Total share-based compensation of $235,703 was recorded in connection with the option modification based on the following assumptions used in the Black-Scholes Option Pricing Model: risk-free interest rate of 0.81%; dividend yield of 0.00%; stock price volatility of 144.40%; forfeiture rate of 0%; and an expected life of 6 years.

On June 12, 2020, the Company cancelled 4,000,000 stock options previously issued in July 2019 to the consultant and replaced them with 3,500,000 stock options. The 3,500,000 replacement options granted have a term of 6 years and are exercisable at a price of $0.12 per share, expiring on June 11, 2026. There was no incremental cost recorded on the option modification based on the following assumptions used in the Black-Scholes Option Pricing Model: risk-free interest rate of 1.76%; dividend yield of 0.00%; stock price volatility of 144.75%; forfeiture rate of 0%; and an expected life of 6 years.

b) Entered into a consulting agreement effective January 1, 2018, whereby the Company would pay the consultant $1,000 per month for a term of 1 year for providing public relations services, unless otherwise terminated by either party with at least 30 days’ notice.

c) Entered into a consulting agreement effective April 1, 2019, whereby the Company would pay the consultant $1,500 per month minimum plus travel expenses for a term of 1 year for providing research consulting services, unless otherwise terminated by either party with at least 30 days’ notice. On May 6, 2020, the Company granted the consultant 500,000 stock options exercisable at a price of $0.11 per share, expiring on May 5, 2026 (Note 5).

d) Entered into a consulting agreement effective September 1, 2020, whereby the Company would pay the consultant CAD $3,000 per month for a term of 1 year for providing technical expertise and public relations services, unless otherwise terminated by either party with at least 30 days’ notice. 

Contingency

The Company was delinquent in filing certain income tax returns with the U.S. Internal Revenue Service and reports disclosing its interest in foreign bank accounts on form TDF 90-22.1, "Report of Foreign Bank and Financial Accounts" ("FBARs"). In September 2015, the Company filed the delinquent income tax returns and has sought waivers of any penalties under the IRS Offshore Voluntary Disclosure Program for late filing of the returns and FBARs.  Under the program, the IRS has indicated that it will not impose a penalty for the failure to file delinquent income tax returns if there are no under reported tax liabilities.  On November 30, 2017, the Company received a letter from the IRS concluding their review of the Company's tax returns under the program and accepting the returns as filed.  No penalties have been assessed by the IRS to date, and management does not believe that the Company will incur any penalties relating to the tax years submitted under the program.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited financial statements have been prepared by the Company in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) applicable to interim financial information and with the rules and regulations of the United States Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed, or omitted, pursuant to such rules and regulations. In the opinion of management, the unaudited interim financial statements include all adjustments necessary for the fair presentation of the results of the interim periods presented. All adjustments are of a normal recurring nature, except as otherwise noted below. These financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended December 31, 2020, included in the Company’s Annual Report on Form 10-K, filed March 5, 2021, with the Securities and Exchange Commission. The results of operations for the interim periods are not necessarily indicative of the results of operations for any other interim period or for a full fiscal year.

Use of Estimates

Use of Estimates

Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.  The more significant accounting estimates inherent in the preparation of the Company’s financial statements include estimates as to valuation of equity related instruments issued, deferred income taxes, and the useful life and impairment of intangible assets.

Cash

Cash

Cash consists of funds held in checking accounts. Cash balances may exceed federally insured limits from time to time.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Financial instruments, which includes cash and accounts payable and accrued liabilities, are carried at cost, which management believes approximates fair value due to the short-term nature of these instruments.

The Company measures the fair value of financial assets and liabilities pursuant to ASC 820 “Fair Value Measurements and Disclosures” which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The policy describes three levels of inputs that may be used to measure fair value:

Level 1 – quoted prices in active markets for identical assets or liabilities

Level 2 – quoted prices for similar assets and liabilities in active markets or inputs that are observable

Level 3 – inputs that are unobservable (for example cash flow modeling inputs based on assumptions)

Level 1 inputs are used to measure cash. At March 31, 2021, there were no other assets or liabilities subject to additional disclosure.

Income Taxes

Income Taxes

The Company accounts for income taxes following the assets and liability method in accordance with the ASC 740 “Income Taxes.”  Under such method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.  The Company applies the accounting guidance issued to address the accounting for uncertain tax positions.  This guidance clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements as well as provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years that the asset is expected to be recovered or the liability settled.

Intangible assets – patent and patent application costs

Intangible assets – patent and patent application costs

The Company owns intangible assets consisting of certain patents and patent applications. Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. Subsequent expenditures are capitalized only when they increase the future economic benefits embodied in the specific asset to which they relate. All other expenditures are recognized in profit or loss as incurred.

As at March 31, 2021, the Company does not hold any intangible assets with indefinite lives.

Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization method and amortization period of an intangible asset with a finite life is reviewed at least annually.

Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates. Amortization is recognized in profit or loss on a straight-line basis over the estimated useful lives of the Company’s patents. No amortization is recognized on patent application costs, as amortization of these costs will only commence once the patents have been granted.

Research and Development Costs

Research and Development Costs

Research and development costs are expensed as incurred.

Loss per Share and Potentially Dilutive Securities

Loss per Share and Potentially Dilutive Securities

Basic loss per share is computed by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding in the period.  Diluted loss per share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive securities.  The effect of 81,050,000 stock options (March 31, 2020 – 84,450,000), and 13,855,429 warrants (March 31, 2020 – 8,500,000) were not included in the computation of diluted earnings per share for all periods presented because it was anti-dilutive due to the Company’s losses.

Share-Based Compensation

Share-Based Compensation

The Company has granted warrants and options to purchase shares of the Company’s common stock to various parties for consulting services.  The fair values of the warrants and options issued have been estimated using the Black-Scholes Option Pricing Model.

The Company accounts for stock compensation with persons classified as employees for accounting purposes in accordance with ASC 718 “Compensation – Stock Compensation”, which recognizes awards at fair value on the date of grant and recognition of compensation over the service period for awards expected to vest. Cliff Vesting is used and awards vest on the last day of the vesting period. The fair value of stock options is determined using the Black-Scholes Option Pricing Model. The fair value of common shares issued for services is determined based on the Company’s stock price on the date of issuance.

Share-based compensation for non-employees in exchange for goods and services used or consumed in an entity’s own operations are also recorded at fair value on the measurement date and accounted for in accordance with ASC 718. The measurement of share-based compensation is subject to periodic adjustment as the underlying instruments vest. The fair value of stock options is estimated using the Black-Scholes Option Pricing Model and the compensation charges are amortized over the vesting period.

Common stock

Common stock

Common stock issued for non-monetary consideration are recorded at their fair value on the measurement date and classified as equity. The measurement date is defined as the earliest of the date at which the commitment for performance by the counterparty to earn the common shares is reached or the date at which the counterparty’s performance is complete.

Transaction costs directly attributable to the issuance of common stock, units and stock options are recognized as a deduction from equity, net of any tax effects.

Related Party Transactions

Related Party Transactions

A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company.  A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Certain new accounting pronouncements that have been issued are not expected to have a material effect on the Company’s financial statements.

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Prepaid Expenses (Tables)

3 Months Ended

Mar. 31, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Prepaid expenses and deposits outstanding

	March 31,  2021		December 31,   2020
Supplementary information – non-cash transactions:
Rental deposit	$	1,050	$	1,050
Total	$	1,050	$	1,050

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Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible asset transactions

	Patent Rights		Patent Application Rights		Total
Cost
Balance, December 31, 2019	$	30,000	$	191,008	$	221,008
Additions		—		70,178		70,178
Balance, December 31, 2020	$	30,000	$	261,186	$	291,186
Additions		—		35,072		35,072
Balance, March 31, 2021	$	30,000	$	296,258	$	326,258
Accumulated amortization
Balance, December 31, 2019	$	13,500	$	—	$	13,500
Amortization		3,000		—		3,000
Balance, December 31, 2020	$	16,500	$	—	$	16,500
Amortization		750		—		750
Balance, March 31, 2021	$	17,250	$	—	$	17,250
Net carrying amounts
December 31, 2020	$	13,500	$	261,186	$	274,686
March 31, 2021	$	12,750	$	296,258	$	309,008

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Stock Options (Tables)

3 Months Ended

Mar. 31, 2021

Stock Options

Schedule of Share-based Compensation, Stock Options, Activity

	Number of Stock Options			Weighted Average Exercise Price
				$		(Years)
Outstanding, December 31, 2020		82,650,000			0.15
Options cancelled		(1,600,000	)		0.13
Outstanding, March 31, 2021		81,050,000			0.14		4.06

	Number of Stock Options			Weighted Average Exercise Price		Weighted Average Remaining Life
				$		(Years)
Outstanding, December 31, 2019		91,450,000			0.14
Options cancelled		(27,000,000	)		0.09
Options expired		(2,000,000	)		0.04
Options granted		22,000,000			0.14
Outstanding, March 31, 2020		84,450,000			0.16		4.56

Schedule of valuation assumptions for options

	March 31, 2021			March 31, 2020
Risk-free interest rate		2.55	%		2.56	%
Dividend yield		0.00	%		0.00	%
Expected stock price volatility		143.56	%		138.90	%
Expected forfeiture rate		0.00	%		0.00	%
Expected life		5.09 years			5.07 years

Schedule of options by exercise price

Expiry date	Exercise Price		Number of Options Outstanding		Number of Options Exercisable
	$
November 14, 2021		0.07		750,000		750,000
December 31, 2022		0.06		800,000		800,000
August 31, 2023		0.08		600,000		600,000
November 8, 2023		0.09		15,000,000		15,000,000
July 14, 2024		0.26		18,500,000		18,500,000
November 17, 2024		0.11		15,000,000		15,000,000
March 26, 2026		0.14		22,000,000		22,000,000
May 5, 2026		0.11		650,000		650,000
June 11, 2026		0.12		7,000,000		7,000,000
October 26, 2026		0.10		500,000		250,000
November 27, 2026		0.10		250,000		187,500
				81,050,000		80,737,500

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Warrants (Tables)

3 Months Ended

Mar. 31, 2021

Warrants

Schedule of Warrant Activity

	Number of Warrants		Weighted Average Exercise Price
			$
Outstanding, December 31, 2020		10,326,857		0.19
Warrants granted		3,528,572		0.07
Outstanding, March 31, 2021		13,855,429		0.19

Schedule of Stockholders' Equity Note, Warrants or Rights

Number of Warrants		Exercise Price ($)		Expiry Date
	6,000,000		0.26	July 14, 2024
	833,333		0.12	October 15, 2022
	250,000		0.12	October 21, 2022
	116,667		0.12	November 1, 2022
	83,334		0.12	November 12, 2022
	833,333		0.12	December 1 , 2022
	166,667		0.12	December 18, 2022
	216,666		0.12	December 18, 2022
	325,000		0.07	December 23, 2021
	142,571		0.07	December 29, 2021
	1,359,286		0.07	December 31, 2021
	1,100,000		0.07	January 07, 2022
	442,857		0.07	January 12, 2022
	571,429		0.07	January 13, 2022
	100,000		0.07	January 20, 2022
	500,000		0.07	January 25, 2022
	100,000		0.07	February 04, 2022
	357,143		0.07	February 08, 2022
	357,143		0.07	February 25, 2022
	13,855,429		0.18

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Basis of Presentation – Going Concern Uncertainties (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Purchase of intangible assets	$ 35,072	$ 11,660	$ 30,000
Additional patent applications			$ 10,000
Warrant issued			6,000,000
Warrant fair value			$ 25,000

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Summary of Significant Accounting Policies (Details Narrative) - shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share	13,855,429	8,500,000
Equity Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share	81,050,000	84,450,000

XML

Prepaid Expenses (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Supplementary information – non-cash transactions:
Rental deposit	$ 1,050	$ 1,050
Total	$ 1,050	$ 1,050

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Intangible Assets (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Beginning balance	$ 291,186	$ 221,008
Additions	35,072	70,178
Ending balance	326,258	291,186
Beginning balance	16,500	13,500
Amortization	750	3,000
Ending balance	17,250	16,500
Net carrying amounts	309,008	274,686
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Beginning balance	30,000	30,000
Additions	0	0
Ending balance	30,000	30,000
Beginning balance	16,500	13,500
Amortization	750	3,000
Ending balance	17,250	16,500
Net carrying amounts	12,750	13,500
Patent Application Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Beginning balance	261,186	191,008
Additions	35,072	70,178
Ending balance	296,258	261,186
Beginning balance	0	0
Amortization	0	0
Ending balance	0	0
Net carrying amounts	$ 296,258	$ 261,186

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Intangible Assets (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Purchase of intangible assets	$ 35,072	$ 11,660		$ 30,000
Amortization - intangible assets	750	$ 750
Additional patent applications				$ 10,000
Warrant issued				6,000,000
Technology Transfer Agreement [Member] | Grant Young [Member]
Finite-Lived Intangible Assets [Line Items]
Ownership Percentage				50.00%
Additional patent applications				$ 10,000
Warrant issued				6,000,000
Patent Application Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Purchase of intangible assets				$ 30,000
Direct cost	$ 35,072		$ 2,415

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Stock Options (Details) - Equity Option [Member] - $ / shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, beginning	82,650,000	91,450,000
Weighted average exercise price beginning balance	$ 0.15	$ 0.14
Options cancelled	(1,600,000)	(27,000,000)
Weighted Average Exercise Price, cacelled	$ 0.13	$ 0.09
Outstanding, ending	81,050,000	84,450,000
Weighed average exercise price ending balance	$ 0.14	$ 0.16
Weighted Average Remaining Life (Years)	4 years 21 days	4 years 6 months 21 days
Options expired		(2,000,000)
Weighted Average Exercise Price, expired		$ 0.04
Options granted		22,000,000
Weighted Average Exercise Price, granted		$ 0.14

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Stock Options (Details 1)		3 Months Ended
	Jun. 12, 2020	Mar. 31, 2021	Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life		6 years
Equity Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	1.76%	2.55%	2.56%
Dividend yield	0.00%	0.00%	0.00%
Expected stock price volatility	144.75%	143.56%	138.90%
Expected forfeiture rate	0.00%	0.00%	0.00%
Expected life	6 years	5 years 1 month 2 days	5 years 25 days

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Stock Options (Details 2) - $ / shares	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Mar. 26, 2020	Dec. 31, 2019
Equity Option [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Expiry date	May 06, 2023
Weighed average exercise price	$ 0.14	$ 0.15	$ 0.16		$ 0.14
Number of outstanding	81,050,000	82,650,000	84,450,000		91,450,000
Number of options exercisable	80,737,500			0.14
Stock Option 1 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Expiry date	Nov. 14, 2021
Weighed average exercise price	$ 0.07
Number of outstanding	750,000
Number of options exercisable	750,000
Stock Option 2 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Expiry date	Dec. 31, 2022
Weighed average exercise price	$ 0.06
Number of outstanding	800,000
Number of options exercisable	800,000
Stock Option 3 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Expiry date	Aug. 31, 2023
Weighed average exercise price	$ 0.08
Number of outstanding	600,000
Number of options exercisable	600,000
Stock Option 4 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Expiry date	Nov. 08, 2023
Weighed average exercise price	$ 0.09
Number of outstanding	15,000,000
Number of options exercisable	15,000,000
Stock Option 5 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Expiry date	Jul. 14, 2024
Weighed average exercise price	$ 0.26
Number of outstanding	18,500,000
Number of options exercisable	18,500,000
Stock Option 6 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Expiry date	Nov. 17, 2024
Weighed average exercise price	$ 0.11
Number of outstanding	15,000,000
Number of options exercisable	15,000,000
Stock Option 7 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Expiry date	Mar. 26, 2026
Weighed average exercise price	$ 0.14
Number of outstanding	22,000,000
Number of options exercisable	22,000,000
Stock Option 8 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Expiry date	May 05, 2026
Weighed average exercise price	$ 0.11
Number of outstanding	650,000
Number of options exercisable	650,000
Stock Option 9 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Expiry date	Jun. 11, 2026
Weighed average exercise price	$ 0.12
Number of outstanding	7,000,000
Number of options exercisable	7,000,000
Stock Option 10 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Expiry date	Oct. 26, 2026
Weighed average exercise price	$ 0.10
Number of outstanding	500,000
Number of options exercisable	250,000
Stock Option 11 [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Expiry date	Nov. 27, 2026
Weighed average exercise price	$ 0.10
Number of outstanding	250,000
Number of options exercisable	187,500

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Stock Options (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of share-based compensation	$ 17,278	$ 2,854,984
Aggregate intrinsic value	$ 5,607,750		$ 2,330,750
Equity Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted	81,050,000
Options cancelled	1,600,000	27,000,000
Options exercised	$ 0.13
Expiry date	May 06, 2023
Weighted average fair value of stock options granted per share		$ 0.14

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Warrants (Details)	3 Months Ended
	Mar. 31, 2021 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrant granted	11,000,000
Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrant outstanding, beginning	10,326,857
Warrant weighted average exercise price, beginning | $ / shares	$ 0.19
Warrant granted	3,528,572
Warrant weighted average exercise price, granted | $ / shares	$ 0.07
Warrant outstanding, ending	13,855,429
Warrant weighted average exercise price, ending | $ / shares	$ 0.19

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Warrants (Details 1)	3 Months Ended
	Mar. 31, 2021 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Outstanding | shares	13,855,429
Warrant weighted average exercise price | $ / shares	$ 0.18
Warrant 1 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Outstanding | shares	6,000,000
Warrant weighted average exercise price | $ / shares	$ 0.26
Expiry Date	July 14, 2024
Warrant 2 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Outstanding | shares	833,333
Warrant weighted average exercise price | $ / shares	$ 0.12
Expiry Date	October 15, 2022
Warrant 3 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Outstanding | shares	250,000
Warrant weighted average exercise price | $ / shares	$ 0.12
Expiry Date	October 21, 2022
Warrant 4 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Outstanding | shares	116,667
Warrant weighted average exercise price | $ / shares	$ 0.12
Expiry Date	November 1, 2022
Warrant 5 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Outstanding | shares	83,334
Warrant weighted average exercise price | $ / shares	$ 0.12
Expiry Date	November 12, 2022
Warrant 6 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Outstanding | shares	833,333
Warrant weighted average exercise price | $ / shares	$ 0.12
Expiry Date	December 1 , 2022
Warrant 7 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Outstanding | shares	166,667
Warrant weighted average exercise price | $ / shares	$ 0.12
Expiry Date	December 18, 2022
Warrant 8 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Outstanding | shares	216,666
Warrant weighted average exercise price | $ / shares	$ 0.12
Expiry Date	December 18, 2022
Warrant 9 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Outstanding | shares	325,000
Warrant weighted average exercise price | $ / shares	$ 0.07
Expiry Date	December 23, 2021
Warrant 10 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Outstanding | shares	142,571
Warrant weighted average exercise price | $ / shares	$ 0.07
Expiry Date	December 29, 2021
Warrant 11 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Outstanding | shares	1,359,286
Warrant weighted average exercise price | $ / shares	$ 0.07
Expiry Date	December 31, 2021
Warrant 12 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Outstanding | shares	1,100,000
Warrant weighted average exercise price | $ / shares	$ 0.07
Expiry Date	January 07, 2022
Warrant 13 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Outstanding | shares	442,857
Warrant weighted average exercise price | $ / shares	$ 0.07
Expiry Date	January 12, 2022
Warrant 14 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Outstanding | shares	571,429
Warrant weighted average exercise price | $ / shares	$ 0.07
Expiry Date	January 13, 2022
Warrant 15 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Outstanding | shares	100,000
Warrant weighted average exercise price | $ / shares	$ 0.07
Expiry Date	January 20, 2022
Warrant 16 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Outstanding | shares	500,000
Warrant weighted average exercise price | $ / shares	$ 0.07
Expiry Date	January 25, 2022
Warrant 17 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Outstanding | shares	100,000
Warrant weighted average exercise price | $ / shares	$ 0.07
Expiry Date	February 04, 2022
Warrant 18 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Outstanding | shares	357,143
Warrant weighted average exercise price | $ / shares	$ 0.07
Expiry Date	February 08, 2022
Warrant 19 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Outstanding | shares	357,143
Warrant weighted average exercise price | $ / shares	$ 0.07
Expiry Date	February 25, 2022

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Stockholders’ Equity (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items]
Common Stock, Shares Authorized	400,000,000	400,000,000
Common Stock, Par Value Per Share	$ 0.0000053	$ 0.0000053
Dividends receivable	$ 0	$ 0
Investors
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items]
Common stock issued	3,528,572
Gross proceeds from issue of common stock	$ 247,000

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Related Party Transactions and Balances (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended
	Mar. 26, 2020	Mar. 31, 2021	Mar. 31, 2020
Related Party Transaction [Line Items]
Payment to CFO		$ 15,000	$ 15,000
Replacement options granted		11,000,000
Expected life (years)		6 years
Exercisable price		$ 0.14
Options Expiration Date		Mar. 26, 2026
Chief Financial Officer [Member]
Related Party Transaction [Line Items]
Office rent		$ 3,150	3,150
Chief Executiveand Director Officer [Member]
Related Party Transaction [Line Items]
Shares cancelled	10,000,000
Stock option issued	1,000,000
Clarence Smith (CEO)
Related Party Transaction [Line Items]
Share based Compensation			$ 1,542,550

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Commitments and Contingency (Details Narrative) - USD ($)						1 Months Ended	3 Months Ended
	Jun. 12, 2020	May 06, 2020	Apr. 02, 2019	Jan. 02, 2018	Jan. 02, 2017	Mar. 26, 2020	Mar. 31, 2021	Mar. 31, 2020
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items]
Research and development services							$ 41,313	$ 219,512
Options Expiration Date							Mar. 26, 2026
Share-based compensation							$ 235,703
Expected life (years)							6 years
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted							11,000,000
Equity Option [Member]
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items]
Options issued						10,000,000
Options, term						6 years
Options, exercisable						0.14	80,737,500
Options Expiration Date						Mar. 25, 2026
Risk-free interest rate	1.76%						2.55%	2.56%
Dividend yield	0.00%						0.00%	0.00%
Stock price volatility	144.75%						143.56%	138.90%
Forfeiture rate	0.00%						0.00%	0.00%
Expected life (years)	6 years						5 years 1 month 2 days	5 years 25 days
Options, cancelled	4,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date							May 06, 2023
Options, granted								22,000,000
Stock Option 1 [Member]
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items]
Risk-free interest rate							0.81%
Dividend yield							0.00%
Stock price volatility							144.40%
Forfeiture rate							0.00%
Expected life (years)							6 years
Consultant [Member]
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items]
Research and development services					$ 7,000
Options, exercisable	0.12
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted	3,500,000
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date	Jun. 11, 2026
Public relations				$ 1,000
Travel expenses			$ 1,500
Consultant [Member] | Equity Option [Member]
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items]
Options, exercisable		0.11
Options Expiration Date		May 05, 2026
Options, granted		500,000