RE:Fins amended and refiledSome of the added disclosure....
Isolera / ESJ Agreement
Over the course of more than a year of research and development conducted by our distribution associates from Isolera / ESJ Enterprises, all testing and validation has been completed and submitted to the Michigan regulators for final product safety approval and legislative approval. A public hearing held in February 2022 ensured that the regulators were completing their due diligence. Final approvals were expected in March 2022 and were delayed due to a state election and cannabis law changes specifically around Delta 8. As yet, final approval has not been received. All R&D is complete and no additional expenditures are anticipated. If the regulators provide approval the conversion process, our licensee can initiate production. The Company provides certain of the raw materials used in the process at the Company’s cost.
Mexico Market Development
Over the past 23 months RDT has been working with a local distributor in Mexico to establish a QuickStrip product line. To date, the Energy and B12 QuickStrips have been approved by the regulators and the Melatonin is being processed. Pandemic closures resulted in review and approval delays and have delayed the sales process and revenue generation as a result. Efforts are again underway to gain traction in the market through retailers and an online strategy by the distribution partner since the investment has already been made. There is no anticipated additional expense to RDT to generate revenue in this market.
UK Oakland Sales Development
Oakland Health, our local UK partners, operating as RD Therapeutics, have selected a minimum of 4 products to launch into the UK market. These products underwent formulation modifications and packaging changes to addressconsumerrequirementsintheUKmarket. Thesechangesdelayedtheinitiallaunchtimelineandrevenue projections due to global supply chain issues. Market-test product has been produced, shipped, and rolled out in the UK to gauge receptivity by consumers and retailers. Oakland has set an online strategy to reach consumers and demonstrate the benefits of carrying the products for consumers on their shelves. There is no anticipated additional expense to RDT to generate revenue in this market.
COVID mRNA Vaccine QuickStrip
The company continues the ongoing research with the oral delivery of the COVID vaccine without the need for cold-chain logistics, we have established a relationship with pharmaceutical companies with a global scope who have developed a vaccine and want to investigate the QuickStrip delivery format. Revenue for the R&D by RDT will be generated as a fee for service with strategic pharmaceutical partners and through application of government funding grants similar to the IRAP grant received in FY2021. The expenditures for the submission of IP to the USPO or other jurisdictions is budgeted as an annual expenditure of $300,000. In addition, the Company has contracted for services of $225,000 annually for project management and the development of pharmaceutical relationships. The costs of testing is funded by and is the responsibility of strategic pharmaceutical partners who own the vaccines.
Skycare Compounders - Pharmaceutical Drug Development
The company has completed the setup and installed the equipment at Skycare’s Licensed compounding facility to produce multiple pharmaceutical products for the Medical market including Dental products. Product development has been completed and the products will be distributed and sold to Dental Clinic’s, Doctors’ Offices, Hospitals and Pharmacy’s. The major expenditures have been completed including years of Research & Development, facility & production setup, equipment installation, training, packaging development & design, Certificates of Analysis, Standard Operating procedures, product testing, website development, marketing trials and sales contract agreements in process for sales. Skycare is responsible for the manufacturing, sales and distribution under the agreement.
QuickSips
The QuickSipsTM straws are composed of all-natural materials such as: recycled agricultural crop waste, starch and plant gum. They are Biodegradable and Compostable. They have been infused with Cannabis ingredients and have been approved by Health Canada as a Cannabis regulated product for sale in Canada. Sales contracts are in process for the expansion into the Medical Cannabis market. The production facility is operational, inventory to produce, labeling, packaging design and approvals have been completed with packaging materials on site to produce the products. Orders are prepaid before production commences and the products are shipped. Patent applications have been previously filed. The cost of obtaining full patent protection is budgeted for $75,000 in the upcoming fiscal year.