Gene Biotherapeutics (CRXM)

Management Discussion

• Research and development costs decreased in 2020 compared to 2019 by $25,871 or 10.6 % due to the lack of specific R&D activity. Selling, general and administrative expenses increased in 2020 by $451,051 or 75.9% compared to 2019. This was due to increased professional expenses paid to accounting and legal firms to become compliant with our SEC filings, costs incurred in connection with the Nostrum financing and other various working capital costs such as compensation, rent, IT costs, etc.
• During the year ended December 31, 2020, the Company recognized a gain of $600,000 from the transfer to Shanxi of all of its licensing and patent rights to manufacture, use and market Excellagen in China. In connection with this transaction the Company terminated all prior agreements with Shanxi related to its prepaid $600,000 common stock subscription and entered into a mutual release of claims.
• Other Income (Expenses) for the year ended December 31, 2020, included a gain on debt forgiveness from accounts payables of $68,032. The debt forgiveness is the result of settlement agreements reached with certain vendors as part of the pre-financing restructuring efforts of the Company.