# EDGAR Filing Document

**Accession Number:** 0001892500
**File Stem:** 0001213900-23-021103
**Filing Date:** 2023-3
**Character Count:** 85718
**Document Hash:** 3c9a9f6776a18b97afff8a4a6a48051f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-23-021103.hdr.sgml**: 20230317

**ACCESSION NUMBER**: 0001213900-23-021103

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 70

**CONFORMED PERIOD OF REPORT**: 20230131

**FILED AS OF DATE**: 20230317

**DATE AS OF CHANGE**: 20230317

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Clearmind Medicine Inc.
- **CENTRAL INDEX KEY:** 0001892500
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHARMACEUTICAL PREPARATIONS [2834]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** Z4
- **FISCAL YEAR END:** 1031

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41557
- **FILM NUMBER:** 23743947

**BUSINESS ADDRESS:**
- **STREET 1:** 101-1220 WEST 6TH AVENUE
- **CITY:** VANCOUVER, BRITISH COLUMBIA
- **STATE:** Z4
- **ZIP:** V6H1A5
- **BUSINESS PHONE:** 972-54-5704749

**MAIL ADDRESS:**
- **STREET 1:** 101-1220 WEST 6TH AVENUE
- **CITY:** VANCOUVER, BRITISH COLUMBIA
- **STATE:** Z4
- **ZIP:** V6H1A5

?xml version="1.0" encoding="ASCII"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Form 6-K**

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

For the month of March 2023

Commission file number: 001-41557

**<u>Clearmind Medicine Inc.</u>**

(Translation of registrant's name into English)

**101 – 1220 West 6th Avenue**

**Vancouver, British Columbia** (Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒&nbsp;&nbsp;&nbsp;&nbsp; Form 40-F ☐

**<u>CONTENTS</u>**

On March 17, 2023, the registrant filed in Canada its unaudited condensed interim consolidated financial statements and Management's Discussion and Analysis for the three months ended January 31, 2023, with the Canadian Securities Administration and each of the Ontario Securities Commission, British Columbia Securities Commission and Alberta Securities Commission.

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit No.** |  |
| 99.1 | [Condensed Interim Consolidated Financial Statements for the three months ended January 31, 2023.](ea174997ex99-1_clearmind.htm) |
| 99.2 | [Management's Discussion and Analysis for the for the three months ended January 31, 2023.](ea174997ex99-2_clearmind.htm) |

---

**<u>SIGNATURES</u>**

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

---

| | | | |
|:---|:---|:---|:---|
|  | **Clearmind Medicine Inc.** | **Clearmind Medicine Inc.** | **Clearmind Medicine Inc.** |
| Date: March 17, 2023 | By: | /s/ Adi Zuloff-Shani | /s/ Adi Zuloff-Shani |
|  |  | Name: | Adi Zuloff-Shani |
|  |  | Title: | Chief Executive Officer |

---

## Exhibit 99.1

?xml version="1.0" encoding="ASCII"?

**Exhibit 99.1**

**CLEARMIND MEDICINE INC.**

Condensed Interim Consolidated Financial Statements

For The Three Months Ended January 31, 2023

(Expressed in Canadian Dollars)

(Unaudited)

**CLEARMIND MEDICINE INC.** 

Condensed Interim Consolidated Statements of Financial Position

(Expressed in Canadian Dollars)

(Unaudited)

---

| | | |
|:---|:---|:---|
|  | **January 31,<br> 2023** | **October 31,<br> 2022** |
| Assets |  |  |
| Current assets |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $4498048 | $175768 |
| &nbsp;&nbsp;&nbsp;Other receivables | 291829 | 69518 |
| &nbsp;&nbsp;&nbsp;Short-term investment (Note 3) | 180225 | 264449 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 933829 | 19443 |
| &nbsp;&nbsp;&nbsp;Related parties (Note 4b) | 77314 | 64134 |
| Total current assets | 5981245 | 593312 |
| Non-current assets |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment | 15012 | 17610 |
| &nbsp;&nbsp;&nbsp;Intangible assets | 173840 | 177797 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 20000 | 20000 |
| &nbsp;&nbsp;&nbsp;Right-of-use asset | 24340 | 48768 |
| &nbsp;&nbsp;&nbsp;Deferred offering costs (Note 5c) | - | 270487 |
| Total non-current assets | 233192 | 534662 |
| Total assets | $6214437 | $1127974 |
| Liabilities |  |  |
| Current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | $900872 | $1906706 |
| &nbsp;&nbsp;&nbsp;Due to related parties (Note 4) | 143832 | 281844 |
| &nbsp;&nbsp;&nbsp;Derivative liability (Note 5c(i)) | - | 396597 |
| &nbsp;&nbsp;&nbsp;Lease liability | 27017 | 52399 |
| Total liabilities | $1071721 | $2637546 |
| Shareholders' equity (deficit) |  |  |
| &nbsp;&nbsp;&nbsp;Share capital and share premium (Note 5) | 17691059 | 9153900 |
| &nbsp;&nbsp;&nbsp;RSU reserve (Note 8) | 742662 | 672945 |
| &nbsp;&nbsp;&nbsp;Warrants (Note 6) | 1003801 | 626641 |
| &nbsp;&nbsp;&nbsp;Share-based payment reserve (Note 7) | 2048233 | 1915895 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (33622) | (29004) |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (16309417) | (13849949) |
| Total shareholders' equity (deficit) | 5142716 | (1509572) |
| Total liabilities and shareholders' equity (deficit) | $6214437 | $1127974 |

---

Approved and authorized for issuance on behalf of the Board on March 15, 2023:

---

| | |
|:---|:---|
| */s/ "Alan Rootenberg"* | */s/ "Adi Zuloff-Shani"* |
| Alan Rootenberg, Director, CFO | Adi Zuloff-Shani, Director, CEO |

---

(The accompanying notes are an integral part of these condensed interim consolidated financial statements)

**CLEARMIND MEDICINE INC.**

Condensed Interim Consolidated Statements of Operations and Comprehensive Loss

(Expressed in Canadian Dollars)

(Unaudited)

---

| | | |
|:---|:---|:---|
|  | **Three months ended** | **Three months ended** |
|  | **January 31,** | **January 31,** |
|  | **2023** | **2022** |
| Operating expenses |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | $1679546 | $1660157 |
| &nbsp;&nbsp;&nbsp;Research and development | 792460 | 424262 |
| Total operating expenses | 2472006 | 2084419 |
| Loss before other expenses | (2472006) | (2084419) |
| Finance expenses |  |  |
| &nbsp;&nbsp;&nbsp;Unrealized loss on short-term investment (Note 3) | (84224) | – |
| &nbsp;&nbsp;&nbsp;Foreign exchange gain (loss) | 42348 | (6464) |
| &nbsp;&nbsp;&nbsp;Interest income | 36875 | – |
| Total finance expenses | (5001) | (6464) |
| Other income |  |  |
| &nbsp;&nbsp;&nbsp;Dividend received | 22101 | – |
| Total other incomes | 22101 | – |
| Loss before taxes | (2454906) | (2090883) |
| &nbsp;&nbsp;&nbsp;Tax expenses | (4562) | – |
| Net Loss | (2459468) | (2090883) |
| Other comprehensive loss for the period |  |  |
| Items that may be reclassified subsequently to profit or loss: |  |  |
| Foreign exchange differences on translation of foreign operations | (4618) | – |
| Comprehensive loss | $(2464086) | $(2090883) |
| Loss per share (\*), basic and diluted | $(1.07) | $(1.67) |
| Weighted average number of shares (\*) for the purposes of basic and diluted loss per share | 2297738 | 1251790 |

---

---

| | |
|:---|:---|
| **(\*)** | On September 30, 2022, the Company effected a 1-for-30 share consolidation (reverse share split) of its issued and outstanding shares. All share amounts have been retroactively restated for all periods presented. |

---

(The accompanying notes are an integral part of these condensed interim consolidated financial statements)

**CLEARMIND MEDICINE INC.**

Condensed Interim Statements of Changes in Shareholders' Equity (Deficit)

(Expressed in Canadian Dollars)

(Unaudited)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Share capital and share premium** | **Share capital and share premium** | | | | | | |
|  | **Number of<br> shares (\*)** | **Amount** |<br> **RSU<br> reserve** |<br>**Warrants** | **Share-based**<br>**payment<br> reserve** | **Accumulated <br> other**<br>**comprehensive<br> income** |<br>**Accumulated<br> deficit** | **Total**<br>**shareholders'<br> equity (deficit)** |
| Balance, October 31, 2021 | 1250833 | $7905514 | $154000 | $342000 | $839457 | $– | $(4439143) | $4801828 |
| Shares issuable for vested RSU's |  | – | 36000 | – | – | – | – | 36000 |
| Shares issued and issuable for services | 1333 | 28800 | 73003 |  |  |  |  | 101803 |
| Share-based compensation |  | – | – | – | 218974 | – | – | 218974 |
| Net loss for the period | – |  | – | – | – | – | (2090883) | (2090883) |
| Balance, January 31, 2022 | 1252166 | $7934314 | $263003 | $342000 | $1058431 | $– | $(6530026) | $3067722 |
| Balance, October 31, 2022 | 1319770 | $9153900 | $672945 | $626641 | $1915895 | $(29004) | $(13849949) | $(1509572) |
| Net loss for the period |  | – | – | – | – | - | (2459468) | (2459468) |
| Foreign currency translation gain | – | – | – | – | – | (4618) | – | (4618) |
| Total comprehensive loss for the period |  | – | – | – | – | (4618) | (2459468) | (2464086) |
| Public offering (Note 5c(i)) | 1153847 | 8089751 | – | 376851 | – | – | – | 8466602 |
| Shares and warrants issuable to Medigus (Note 5c(i)) |  | 396288 |  | 309 | – | – | – | 396597 |
| Shares issued from RSUs (Note 5c(ii)) | 4824 | 51120 | (51120) | – | – | – | – | - |
| Shares for services (Notes 11a, 11c) |  | – | 46832 | – | – | – | – | 46832 |
| RSU's vested (Note 8(i)) |  | – | 74005 | – | – | – | – | 74005 |
| Share-based compensation (Note 7) | – | – | – | – | 132338 | – | – | 132338 |
| Balance, January 31, 2023 | 2478441 | $17691059 | $742662 | $1003801 | $2048233 | $(33622) | $(16309417) | $5142716 |

---

---

| | |
|:---|:---|
| **(\*)** | On September 30, 2022, the Company effected a 1-for-30 share consolidation (reverse share split) of its issued and outstanding shares. All share amounts have been retroactively restated for all periods presented. |

---

(The accompanying notes are an integral part of these condensed interim consolidated financial statements)

**CLEARMIND MEDICINE INC.**

Condensed Interim Consolidated Statements of Cash Flows

(Expressed in Canadian Dollars)

(Unaudited)

---

| | | |
|:---|:---|:---|
|  | **Three months ended**<br>**January 31,**<br>**2023** | **Three months ended**<br>**January 31,**<br>**2022** |
| Operating activities |  |  |
| Net loss | $(2459468) | $(2090883) |
| Adjustments for: |  |  |
| &nbsp;&nbsp;&nbsp;Amortization of intangible assets | 3957 | 10102 |
| &nbsp;&nbsp;&nbsp;Amortization of right-of-use asset | 18399 | – |
| &nbsp;&nbsp;&nbsp;Interest on lease liability | 2324 | – |
| &nbsp;&nbsp;&nbsp;Dividend received | 22101 | – |
| &nbsp;&nbsp;&nbsp;Depreciation of property and equipment | 2607 | 2040 |
| &nbsp;&nbsp;&nbsp;Share-based compensation | 253175 | 356777 |
| &nbsp;&nbsp;&nbsp;Unrealized loss on short-term investment | 84224 | – |
| &nbsp;&nbsp;&nbsp;Tax expenses | 4562 | – |
| Movements in working capital: |  |  |
| &nbsp;&nbsp;&nbsp;Decrease (increase) in amounts receivable | (257592) | 37821 |
| &nbsp;&nbsp;&nbsp;Decrease (increase) in prepaid expenses | (914386) | 62634 |
| &nbsp;&nbsp;&nbsp;Decrease in accounts payable and accrued liabilities | (739909) | (202805) |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in due to related parties | (138012) | 37459 |
| Net cash used in operating activities | (4118018) | (1786855) |
| Financing activities |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of shares, net (Note 5c(i)) | 8466602 | – |
| &nbsp;&nbsp;&nbsp;Repayment of lease liabilities | (21281) | – |
| Net cash provided by financing activities | 8445321 | – |
| Effect of foreign exchange rate changes | (5023) | (404) |
| Net increase (decrease) in cash and cash equivalents | 4322280 | (1787259) |
| Cash and cash equivalents at beginning of period | 175768 | 4599437 |
| Cash and cash equivalents at end of period | $4498048 | $2812178 |
| **Supplementary disclosure of cash flow information:** |  |  |
| Cash received for interest | $36875 | $– |
| **Non-cash financing and investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Derivative liability converted to equity (Note 5c(i)) | $396597 | $– |

---

**CLEARMIND MEDICINE INC.**

Notes to the Condensed Interim Consolidated Financial Statements

(Expressed in Canadian Dollars)

(Unaudited)

**1.** **Nature of Operations and Going Concern** 

&nbsp;&nbsp;&nbsp;&nbsp;a. Clearmind
Medicine Inc. (formerly Cyntar Ventures Inc.) (the "Company") was incorporated in the province of British Columbia on July
18, 2017. The Company changed its name from Cyntar Ventures Inc. to Clearmind Medicine Inc. on March 24, 2021. The Company's previous
business was carrying out mining exploration operations and was involved in the exploration of the Lorn mineral property located in the
Clinton and Lillooet Mining Divisions of British Columbia. Effective May 18, 2021, the Company is in the business of researching, developing
and marketing proprietary formulations of psychedelic designer therapeutics with an initial focus of developing products. The Company's
head office is located at Suite 101, 1220 West 6<sup>th</sup> Avenue, Vancouver, BC, V6H 1A5. The Company's Israeli subsidiary
(Clearmindmed Ltd.) provides research and development services to the Company.

On November 14, 2022, the Company completed a public offering for aggregate gross proceeds of US$7.5 million and up listing to the Nasdaq Capital Market ("Nasdaq"), see note 5c. The Company trades under the symbol CMND on both the Nasdaq and the Canadian Securities Exchange ("CSE") in Toronto.

&nbsp;&nbsp;&nbsp;&nbsp;b. Going
concern

These condensed interim consolidated financial statements have been prepared on the going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. For the three months ended January 31, 2023, the Company has not generated any revenues and has negative cash flow from operations of $4,118,018. As of January 31, 2023, the Company has an accumulated deficit of $16,309,417. The continued operations of the Company are dependent on its ability to generate future cash flows or obtain additional financing through debt or equity. Management is of the opinion that sufficient working capital will be obtained from external financing to meet the Company's liabilities and commitments as they become due, although there is a risk that additional financing will not be available on a timely basis or on terms acceptable to the Company. These factors may cast substantial doubt on the Company's ability to continue as a going concern. These condensed interim consolidated financial statements do not reflect any adjustments that may be necessary if the Company is unable to continue as a going concern.

&nbsp;&nbsp;&nbsp;&nbsp;c. Reverse
share split

On September 30, 2022, the Company's Board of Directors approved a 1-for-30 reverse split of its issued and outstanding ordinary shares, effective as of September 30, 2022, pursuant to which holders of the Company's ordinary shares received 0.0333 of an ordinary share for every one ordinary share.

All issued and outstanding ordinary shares or instruments convertible into ordinary shares contained in these financial statements have been retroactively adjusted to reflect the reverse share split for all periods presented, unless explicitly stated otherwise.

**CLEARMIND MEDICINE INC.**

Notes to the Condensed Interim Consolidated Financial Statements

(Expressed in Canadian Dollars)

(Unaudited)

**2.** **Significant Accounting Policies** 

&nbsp;&nbsp;&nbsp;&nbsp;a. Basis
of Presentation

The accompanying condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board ("IASB") on a going concern basis.

These condensed interim consolidated financial statements include the accounts of the Company and its 100% owned subsidiaries, Clearmindmed Ltd. and Clearmind Labs Ltd. (inactive). All inter-company balances and transactions have been eliminated on consolidation.

These condensed interim consolidated financial statements have been prepared on a historical cost basis, except for financial assets and liabilities (including derivatives) which are presented at fair value through profit or loss ("FVTPL"), and are presented in Canadian dollars, which is the Company's functional currency.

&nbsp;&nbsp;&nbsp;&nbsp;b. Unaudited Interim Financial Information

Certain information and footnote disclosures normally included in financial statements prepared in accordance with IFRS have been condensed or omitted from this report, as is permitted by such rules and regulations. Accordingly, these condensed financial statements should be read in conjunction with the audited financial statements as of and for the year ended October 31, 2022 and the notes thereto (the "2022 Annual Report").

The unaudited condensed financial statements have been prepared on the same basis as the audited financial statements. In the opinion of the Company's management, the accompanying unaudited condensed financial statements contain all adjustments that are necessary to present fairly the Company's financial position and results of operations for the interim periods presented. The results for the three months ended January 31, 2023 are not necessarily indicative of the results for the year ending October 31, 2023, or for any future period.

As of January 31, 2023, there have been no material changes in the Company's significant accounting policies from those that were disclosed in the 2022 Annual Report.

&nbsp;&nbsp;&nbsp;&nbsp;c. Significant
Accounting Estimates and Judgments

The preparation of consolidated financial statements in accordance with IFRS requires management to make judgments, estimates, and assumptions that affect the application of policies and reported amounts of assets, liabilities, income, and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

**CLEARMIND MEDICINE INC.**

Notes to the Condensed Interim Consolidated Financial Statements

(Expressed in Canadian Dollars)

(Unaudited)

**2.** **Significant Accounting Policies** (continued)

&nbsp;&nbsp;&nbsp;&nbsp;c. Significant
Accounting Estimates and Judgments (continued)

<u>Significant Estimates</u>

 

*Share-based Compensation*

Fair values are determined using the Black-Scholes option pricing model. Estimating fair value requires determining the most appropriate valuation model for a grant of equity instruments, which is dependent on the terms and conditions of the grant. Option-pricing models require the use of highly subjective estimates and assumptions including the expected stock price volatility. Changes in the underlying assumptions can materially affect the fair value estimates and, therefore, existing models do not necessarily provide reliable measurement of the fair value of the Company's stock options. 

<u>Significant Judgments</u>

The critical judgments that the Company's management has made in the process of applying the Company's accounting policies that have the most significant effect on the amounts recognized in the Company's consolidated financial statements are as follows:

 

*Going Concern*

 

The application of the going concern assumption requires management to take into account all available information about the future, which is at least but not limited to, 12 months from the year end of the reporting period. The Company is aware that material uncertainties related to events or conditions may cast significant doubt upon the Company's ability to continue as a going concern.

**3.** **Short-term Investment** 

As of January 31, 2023, the Company holds 27,778 common shares of Medigus Ltd ("Medigus") (approximately 0.11%) with a total fair value of $180,225. The fair value of common shares held was determined by reference to public price quotations in an active market.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **October 31, <br> 2022** | **Additions** | **Unrealized <br> loss** | **January 31, <br> 2023** |
| Medigus Ltd. – Shares | $264449 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $(84224) | $180225 |

---

**CLEARMIND MEDICINE INC.** 

Notes to the Condensed Interim Consolidated Financial Statements

(Expressed in Canadian Dollars)

(Unaudited)

**4.** **Related Party Transactions** 

&nbsp;&nbsp;&nbsp;&nbsp;a. Compensation
to key management personnel

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The
compensation to key management personnel for employment services they provide to the Company is as follows:

---

| | | |
|:---|:---|:---|
|  | **Three months ended**<br>**January 31,**<br>**2023** | **Three months ended**<br>**January 31,**<br>**2022** |
| **Officers:** |  |  |
| &nbsp;&nbsp;&nbsp;Consulting fees | $190374 | $127859 |
| &nbsp;&nbsp;&nbsp;Share based compensation | 59933 | 147424 |
|  | $250307 | $275283 |
| **Directors:** |  |  |
| &nbsp;&nbsp;&nbsp;Directors' fees | $73581 | $24000 |
| &nbsp;&nbsp;&nbsp;Share based compensation | 59465 | 14979 |
|  | $133046 | $38979 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Balances
with related parties

---

| | | |
|:---|:---|:---|
|  | **January 31,**<br>**2023** | **October 31,**<br>**2022** |
| Amounts owed to officers | $124257 | $185830 |
| Amounts owed to directors | 19575 | 96014 |
|  | $143832 | $281844 |

---

&nbsp;&nbsp;&nbsp;&nbsp;b. On
March 7, 2022, the Company signed an agreement with SciSparc, pursuant to which the Company and SciSparc agreed to cooperate in conducting
a feasibility study using certain molecules developed by each party (the "Cooperation Agreement"). Certain of the Company's
officers and directors currently operate, manage or are engaged as officers and/or directors of SciSparc, which may have similar or different
objectives than the Company's. Such activities could detract from the time these people have to allocate to the Company's
affairs. To date, no determination has been made to pursue the joint venture and the development of the research activities with SciSparc
remains in a very early stage. For the three months ended January 31, 2023, the Company received $13,180 as a reimbursement for research
and development expenses conducted within the framework of the Cooperation Agreement. As of January 31, 2023, $77,314 is owed to the
Company.

&nbsp;&nbsp;&nbsp;&nbsp;c. The
Company shares office space with SciSparc.

**CLEARMIND MEDICINE INC.**

Notes to the Condensed Interim Consolidated Financial Statements

(Expressed in Canadian Dollars)

(Unaudited)

**5.** **Share Capital** 

&nbsp;&nbsp;&nbsp;&nbsp;a. The Company's authorized share capital is unlimited
common shares without par value share. As of January 31, 2023, the number of shares issued and outstanding are 2,478,441 (October 31,
2022 - 1,319,770).

&nbsp;&nbsp;&nbsp;&nbsp;b. On September 30, 2022, the Company effected a 1-for-30 share
consolidation (reverse share split) of its issued and outstanding shares. All share amounts and instruments convertible into shares have
been retroactively restated for all periods presented.

&nbsp;&nbsp;&nbsp;&nbsp;c. Share transactions during the three months ended January
31, 2023:

&nbsp;&nbsp;&nbsp;&nbsp;(i) On
November 14, 2022, the Company completed an underwritten public offering of 1,153,847 shares at a price to the public of US$6.50 per
share (CAD$8.65), for aggregate gross proceeds of US$7.5 million, prior to deducting underwriting discounts and offering expenses. The
offering closed on November 17, 2022. Net proceeds received were $8,466,602.

In addition, the Company granted Aegis Capital Corp. ("Aegis"), who acted as the underwriters for the deal, a 45-day option to purchase up to 173,077 additional common shares, equal to 15% of the number of shares sold in the offering solely to cover over-allotments, if any ("Over-Allotment"). The public purchase price per additional common share would have been US$6.50 per share (CAD$8.65). The Over-Allotment was not exercised.

Aegis received 57,692 underwriter warrants, each such warrant entitling the agents to receive one common share upon payment of US $8.125 per share, exercisable six months after the commencement of sales of this offering and expiring on a date which is no more than five years after the commencement of sales of the offering. The fair value for underwriter warrants total of $376,851 and have been credited to the warrant reserve. The fair value has been estimated using the Black-Scholes option pricing model assuming no expected dividends or forfeitures and the following weighted average assumptions:

---

| | |
|:---|:---|
| Risk-free interest rate | 1.43% |
| Expected life (in years) | 5.0 |
| Expected volatility | 107.0% |

---

In connection with the offering, the Company's common shares were approved for listing on the Nasdaq and began trading on the Nasdaq under the symbol "CMND" on November 15, 2022.

Following the public offering, Medigus were entitled to receive 44,829 shares and 2,241 warrants pursuant to an anti-dilution clause included in the agreement signed between the Company and Medigus on June 29, 2022.

The anti-dilution feature was recorded as a derivative liability as of October 31, 2022 and has been classified to equity upon completion of the IPO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) On January 16, 2023, 4,824 shares were issued in respect of RSU's that had been fully vested. The RSU's had a fair value of $51,120 at the time of issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) During the three months ended January 31, 2023, pursuant to existing commitments detailed in notes 11c and 11a, the Company is committed to issue 9,386 shares with a fair value of $46,832 to two service providers. As of the date of this report, these shares have not been issued.

&nbsp;&nbsp;&nbsp;&nbsp;d. Share transactions during the three months ended January
31, 2022:

On November 26, 2021, the Company issued 1,333 common shares with a fair value of $28,800. The amount is in respect of services provided by the Chief Scientific Officer in prior periods (Note 11(a)) and therefore the amounts has been reclassified from RSU reserve to Share Premium.

**CLEARMIND MEDICINE INC.** 

Notes to the Condensed Interim Consolidated Financial Statements

(Expressed in Canadian Dollars)

(Unaudited)

**6.** **Share Purchase Warrants** 

The following table summarizes the continuity of the Company's share purchase warrants:

---

| | | |
|:---|:---|:---|
|  | **Number of <br> warrants** | **Weighted<br> average<br> exercise <br> price** |
| Balance, October 31, 2021 and January 31, 2022 | 526666 | $21.84 |
| Issued | 66245 | 60.00 |
| Balance, October 31, 2022 | 592911 | 26.10 |
| Issued (note 5c(i)) | 57692 | 10.85 |
| Balance, January 31, 2023 | 650603 | $24.75 |

---

As of January 31, 2023, the following share purchase warrants were outstanding:

---

| | | | |
|:---|:---|:---|:---|
| **Number of<br> warrants outstanding** | **Exercise price** |  | **Expiry date** |
| 250000 | $4.50 |  | April 22, 2024 |
| 276666 | $37.50 |  | December 22, 2022 |
| 66245 | $60.00 |  | August 14, 2023 |
| 57692 | $10.85 | (\*) | November 17, 2027 |
| 650603 |  |  |  |

---

---

| | |
|:---|:---|
| (\*) | Exercise price is USD$8.125. |

---

**CLEARMIND MEDICINE INC.** 

Notes to the Condensed Interim Consolidated Financial Statements

(Expressed in Canadian Dollars)

(Unaudited)

**7.** **Stock Options** 

On September 1, 2021, the Company implemented a stock option plan pursuant to which stock options may be granted to directors, officers, employees, and consultants of the Company. The Board of directors is authorized to grant the maximum number of common shares reserved for issuance in any 12-month period to anyone, optionee, other than a consultant may not exceed 5% of the issued and outstanding common shares at the date of the grant. The maximum number of common shares reserved for issuance in any 12-month period to any consultant may not exceed 2% of the issued and outstanding common shares at the date of the grant and the maximum number of common shares reserved for issuance in any 12-month period to all persons engaged in investor relations activities may not exceed 2% of the issued and outstanding number of common shares at the date of the grant.

The following table summarizes the continuity of the Company's stock options:

---

| | | |
|:---|:---|:---|
|  | **Number<br> of options** | **Weighted<br> average<br> exercise price** |
| Outstanding, October 31, 2021 | 111889 | $20.67 |
| &nbsp;&nbsp;&nbsp;Granted (i) | 86333 | 20.68 |
| &nbsp;&nbsp;&nbsp;Cancelled (ii) | (40556) | 21.56 |
| Outstanding, October 31, 2022 and January 31, 2023 | 157666 | $20.45 |
| Exercisable, January 31, 2023 | 82389 | $20.33 |

---

**CLEARMIND MEDICINE INC.** 

Notes to the Condensed Interim Consolidated Financial Statements

(Expressed in Canadian Dollars)

(Unaudited)

**7.** **Stock Options** (continued)

Additional information regarding stock options outstanding as of January 31, 2023, is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Outstanding** | **Outstanding** | **Outstanding** | **Exercisable** | **Exercisable** |
|<br>**Range of<br> exercise prices** | **Number of <br> stock options** | **Weighted <br> average <br> remaining<br> contractual life <br> (years)** | **Weighted<br> average <br> exercise price** | **Number of <br> stock options** | **Weighted<br> average <br> exercise price** |
| $5.55 | 16000 | 3.32 | $5.55 | 8000 | $5.55 |
| $16.80 | 29333 | 9.01 | 16.80 | 14389 | 16.80 |
| $20.40 | 12667 | 8.86 | 20.40 | 12667 | 20.40 |
| $22.50 | 35000 | 3.31 | 22.50 | 18750 | 22.50 |
| $23.40 | 6000 | 6.24 | 23.40 | 2750 | 23.40 |
| $24.00 | 31333 | 9.01 | 24.00 | 10444 | 24.00 |
| $24.90 | 4000 | 3.64 | 24.90 | 4000 | 24.90 |
| $25.20 | 20000 | 3.42 | 25.20 | 10000 | 25.20 |
| $30.00 | 3333 | 8.86 | 30.00 | 1389 | 30.00 |
|  | 157666 | 6.20 | $20.45 | 82389 | $20.33 |

---

The fair value for stock options previously granted to certain consultants for ongoing services measured during the period have been estimated using the Black-Scholes option pricing model assuming no expected dividends or forfeitures and the following weighted average assumptions:

---

| | | |
|:---|:---|:---|
|  | **2023** | **2022** |
| Risk-free interest rate | 2.60%-2.72 | 1.58% |
| Expected life (in years) | 5.38 | 5.91 |
| Expected volatility | 91.81%-94.66 | 94% |

---

The portion of the total fair value of stock options expensed during the three months ended January 31, 2023, was $132,338 (2022 - $218,974) which was recorded as share-based payment reserve and charged to operations. The weighted average fair value of stock options granted during the three months ended January 31, 2023 was $3.02 per share (no options were granted during the three months ended January 31, 2023).

**CLEARMIND MEDICINE INC.** 

Notes to the Condensed Interim Consolidated Financial Statements

(Expressed in Canadian Dollars)

(Unaudited)

**8.** **Restricted Share Units** 

On August 4, 2021, the Company approved an RSU plan, which is designed to provide certain directors, officers, employees, and consultants of the Company with the opportunity to acquire RSU's of the Company. Each unit is equivalent in value to a common share and upon vesting results in the holder thereof being issued, at the discretion of the Board, either (i) a common share, or (ii) an amount of cash equal to the fair market value of a common share.

During the three months ended January 31, 2023, the Company recognized RSU reserve of $466,314 (2021 - $190,000) related to vested RSU's.

The following table summarizes the continuity of RSUs:

---

| | | |
|:---|:---|:---|
|  | **Number of <br> RSUs** | **Weighted<br> average<br> issue price** |
| Balance, October 31, 2021 | – | $– |
| Granted | 35328 | 10.55 |
| Vested | (35328) | 10.55 |
| Balance, October 31, 2022 | – | $– |
| Granted (i) | 14774 | 5.01 |
| Vested | (14774) | 5.01 |
| Balance, January 31, 2023 | – | $– |

---

&nbsp;&nbsp;&nbsp;&nbsp;(i) During the three months ended January 31, 2023, the Company
issued 14,774 RSU's with a fair value of $74,005 to consultants.

**CLEARMIND MEDICINE INC.** 

Notes to the Condensed Interim Consolidated Financial Statements

(Expressed in Canadian Dollars)

(Unaudited)

**9.** **Financial Instruments and Risk Management** 

Assets and liabilities measured at fair value on a recurring basis were presented on the Company's statement of financial position as of January 31, 2023, as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measurements Using** | **Fair Value Measurements Using** | **Fair Value Measurements Using** | |
|  | **Quoted prices <br> in active markets<br> for identical<br> instruments<br> (Level 1)** | **Significant<br> other<br> observable<br> inputs<br> (Level 2)** | **Significant<br> unobservable<br> inputs<br> (Level 3)** |<br>**Balance<br> January 31,<br> 2023** |
| Short-term investment | $180225 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; – | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; – | $180225 |

---

Assets and liabilities measured at fair value on a recurring basis were presented on the Company's statement of financial position as of October 31, 2022, as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measurements Using** | **Fair Value Measurements Using** | **Fair Value Measurements Using** | |
|  | **Quoted prices <br> in active markets<br> for identical<br> instruments <br> (Level 1)** | **Significant <br> other<br> observable<br> inputs <br> (Level 2)** | **Significant<br> unobservable<br> inputs <br> (Level 3)** |<br>**Balance <br> October 31, <br> 2022** |
| Short-term investment | $264449 | $– | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; – | $264449 |
| Derivative liability | – | 396597 | – | 396.597 |

---

The fair value of other assets and liabilities, which include cash, amounts receivable, accounts payable and accrued liabilities, and amounts due to related parties, approximate their carrying values due to the relatively short-term maturity of these instruments.

&nbsp;&nbsp;&nbsp;&nbsp;b. Credit
Risk

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and other receivables. The Company limits its exposure to credit loss by placing its cash with high credit quality financial institutions. The carrying amount of financial assets represents the maximum credit exposure.

&nbsp;&nbsp;&nbsp;&nbsp;c. Foreign
Exchange Rate Risk

Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that monetary assets and liabilities are denominated in a foreign currency. The Company's subsidiary operates in Israel and has certain monetary financial instruments denominated in NIS and U.S dollars. The Company has not entered into foreign exchange rate contracts to mitigate this risk.

The following table indicates the impact of foreign currency exchange risk on net working capital as of January 31, 2023. The table below also provides a sensitivity analysis of a 10% strengthening of the foreign currency against functional currencies identified which would have increased (decreased) the Company's net loss by the amounts shown in the table below. A 10% weakening of the foreign currency against the functional currencies would have had the equal but opposite effect as of January 31, 2023.

**CLEARMIND MEDICINE INC.** 

Notes to the Condensed Interim Consolidated Financial Statements

(Expressed in Canadian Dollars)

(Unaudited)

**9.** **Financial Instruments and Risk Management** (continued)

&nbsp;&nbsp;&nbsp;&nbsp;c. Foreign
Exchange Rate Risk (continued)

---

| | |
|:---|:---|
| Cash | $4491696 |
| Amounts receivable | 161758 |
| Accounts payable and accrued liabilities | (888123) |
| Due to related parties | (112957) |
| Total foreign currency financial assets and liabilities | $3652374 |
| Impact of a 10% strengthening or weakening of foreign exchange rate | $365237 |

---

&nbsp;&nbsp;&nbsp;&nbsp;d. Interest
Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to significant interest rate risk as it does not have any liabilities with variable rates.

&nbsp;&nbsp;&nbsp;&nbsp;e. Liquidity
Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company's objective to managing liquidity risk is to ensure that it has sufficient liquidity available to meet its liabilities when due. The Company relies on raising debt or equity financing in a timely manner.

The following amounts are the contractual maturities of financial liabilities as of January 31, 2023 and October 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| **January 31, 2023** | **Total** | **Within <br> 1 year** | **Within <br> 2-5 years** |
| Accounts payable and accrued liabilities | $900872 | $900872 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; – |
| Due to related parties | 143832 | 143832 | – |
| Lease liability | 27017 | 27017 | – |
|  | $1071721 | $1071721 | $– |

---

---

| | | | |
|:---|:---|:---|:---|
| **October 31, 2022** | **Total** | **Within <br> 1 year** | **Within <br> 2-5 years** |
| Accounts payable and accrued liabilities | $1906706 | $1906706 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; – |
| Due to related parties | 281844 | 281844 | – |
| Derivative liability | 396597 | 396597 |  |
| Lease liability | 52399 | 52399 |  |
|  | $2637546 | $2637546 | $– |

---

**CLEARMIND MEDICINE INC.** 

Notes to the Condensed Interim Consolidated Financial Statements

(Expressed in Canadian Dollars)

(Unaudited)

**10.** **Capital Management** 

The Company manages its capital to maintain its ability to continue as a going concern and to provide returns to shareholders and benefits to other stakeholders. The capital structure of the Company consists of cash and equity comprised of issued share capital, RSU reserve, warrants reserve, and options reserve.

The Company manages its capital structure and makes adjustments to it in light of economic conditions. The Company, upon approval from its Board of Directors, will balance its overall capital structure through new share issuances or by undertaking other activities as deemed appropriate under the specific circumstances.

The Company is not subject to externally imposed capital requirements and the Company's overall strategy with respect to capital risk management remains unchanged from the three months ended January 31, 2023.

**11.** **Commitments** 

&nbsp;&nbsp;&nbsp;&nbsp;a. On
November 1, 2020 (as amended on May 12, 2021), the Company entered into an agreement to acquire the rights, title, and interest in certain
patents and patent applications in exchange for entering into a consulting services agreement with the consultant. The consultant will
become the Company's scientific consultant and will be compensated with a monthly fee of $5,000 starting on February 1, 2021. The
Company is to issue the consultant 16,000 common shares in equal instalments, at the end of each quarter, commencing with the ending
of the first complete quarter after the date on which the Canadian Securities Exchange ("Listing Date") has provided its
final approval to the Company's change of business, over a period of three years. The Company is to also grant the consultant 16,000
stock options which will be exercisable at $5.55 per common share (granted). The stock options will vest in equal parts at the end of
each quarter commencing with the ending of the first complete quarter after the Listing Date, over a period of three years. During the
three months ended January 31, 2023, the Company recognized share-based compensation of $6,549 (2021 - $ nil) related to the RSU reserve
pursuant to the agreement. As of January 31, 2023, the Company has issued 2,667 (2021 – $ nil) common shares pursuant to the agreement .

&nbsp;&nbsp;&nbsp;&nbsp;b. Effective
January 1, 2022, the Company entered into advisory agreements with three advisors of the Company, whereby the Company agreed to issue
each consultant 666 RSU's at the end of each month commencing January 31, 2022, for an initial term of 12 months. During the three
months ended January 31, 2023, the Company recognized share-based compensation of $30,280 related to RSU's. As of January 31, 2023,
a total of 26,000 shares are issuable to the 3 advisors in consideration for 13 months of services.

&nbsp;&nbsp;&nbsp;&nbsp;c. On
March 1, 2022, the Company entered into an advisory agreement with a consultant, whereby the Company agreed to pay the consultant ILS
20,000 ($7,752) and 666 RSU's per month for a period of 12 months. During the three months ended January 31, 2023, the Company
recognized share-based compensation of $10,093 related to RSU's. As of January 31, 2023, a total of 7,333 shares are issuable to
the advisor in consideration for 11 months of services.

**CLEARMIND MEDICINE INC.** 

Notes to the Condensed Interim Consolidated Financial Statements

(Expressed in Canadian Dollars)

(Unaudited)

**11.** **Commitments** (continued)

&nbsp;&nbsp;&nbsp;&nbsp;d. On
March 14, 2022, the Company entered an agreement with a consultant, whereby the Company agreed to issue the consultant RSU's equivalent
to US$10,000 per month for a period of three months. The term is automatically renewed unless terminated by the Company with three days'
written notice within the initial term or thirty days in a subsequent term. From January 1, 2023, the agreement was amended to $5,000
per month. His agreement is still in effect. During the three months ended January 31, 2023, the Company recognized share-based compensation
of $33,631 related to RSU's. As of January 31, 2023, a total of 6,774 shares are issuable to the advisor in consideration for 10
months of services.

&nbsp;&nbsp;&nbsp;&nbsp;e. On
May 23, 2022, the Company entered an agreement with a consultant, whereby the Company agreed to issue the consultant RSU's equivalent
to US$10,000 per month for a period of three months. The term is automatically renewed unless terminated by the Company with three days'
written notice within the initial term or thirty days in a subsequent term. During the three months ended January 31, 2023, the Company
recognized share-based compensation of $40,283 related to RSU's.

**12.** **Segmented Information** 

As of January 31, 2023, the Company has one operating segment, research and development of psychedelic medicine, which takes place primarily in Israel.

The Company's non-current assets by geographical location are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **January 31, 2023** | **Canada** | **United <br> States** | **Europe** | **Asia** | **Total** |
| Intangible assets | $– | $52152 | $52152 | $69536 | $173840 |
| Property and equipment | – | – | – | 15012 | 15012 |
| Restricted cash | 20000 | – | – | – | 20000 |
| ROU asset | – | – | – | 24340 | 24340 |
|  | $20000 | $52152 | $52152 | $108888 | $233192 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **October 31, 2022** | **Canada** | **United <br> States** | **Europe** | **Asia** | **Total** |
| Intangible assets | $– | $53339 | $53339 | $71119 | $177797 |
| Property and equipment | – | – | – | 17610 | 17610 |
| Restricted cash | 20000 | – | – | – | 20000 |
| ROU asset | – | – | – | 48768 | 48768 |
| Deferred offering costs | – | 270487 | – | – | 270768 |
|  | $20000 | $323826 | $53339 | $137497 | $534662 |

---

&nbsp;&nbsp;&nbsp;&nbsp;**13.** **Subsequent Events** 

On February 22, 2023, 12,006 shares were issued in respect of fully vested RSU's that had been fully vested. The RSU's had a fair value of $141,071 at the time of issuance.

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## Exhibit 99.2

**Exhibit 99.2**

**CLEARMIND MEDICINE INC.**

**MANAGEMENT'S DISCUSSION AND ANALYSIS**

For the Three Months Ended January 31**,** 2023

Expressed in Canadian Dollars

(Unaudited)

**CLEARMIND MEDICINE INC.**

Management's Discussion and Analysis

For the Three Months Ended January 31, 2023

This Management's Discussion and Analysis ("MD&A") of Clearmind Medicine Inc. ("Clearmind" or the "Company"), prepared as of March 17, 2023, should be read in conjunction with the unaudited condensed interim consolidated financial statements and the notes thereto for the three months ended January 31, 2023, which were prepared in accordance with International Financial Reporting Standards ("IFRS"). All amounts are expressed in Canadian dollars unless otherwise indicated.

Additional information about the Company is available on SEDAR at www.sedar.com.

**Cautionary Statement Regarding Forward-Looking Information**

This MD&A may contain "forward-looking statements" which reflect the Company's current expectations regarding future results of operations, performance and achievements of the Company. The Company has tried, wherever possible, to identify these forward-looking statements by, among other things, using words such as "anticipate," "believe," "estimate," "expect" and similar expressions. The statements reflect the current beliefs of the management of the Company, and are based on currently available information. Accordingly, these statements are subject to known and unknown risks, uncertainties and other factors, which could cause the actual results, performance, or achievements of the Company to differ materially from those expressed in, or implied by, these statements.

The Company undertakes no obligation to publicly update or review the forward-looking statements whether as a result of new information, future events or otherwise.

Historical results of operations and trends that may be inferred from the following discussions and analysis may not necessarily indicate future results from operations.

**Description of Business and Company Overview**

**Corporate Information**

The Company was incorporated under the name Cyntar Ventures Inc. on July 18, 2017, pursuant to the provisions of the Business Corporations Act (British Columbia). On March 24, 2021, the name of the Company was changed to Clearmind Medicine Inc. The Company's principal executive offices are located at 101 – 1220 W. 6th Ave, Vancouver, BC V6H1A5 and its operational offices are located at 20 Rahul Wallenberg, Tel Aviv, Israel.

Originally, the Company operated as a mineral resource exploration operations company. In September 2020, the Company announced a shift of the focus of the business to the development of innovative psychedelic therapies. This process involved the acquisition of all rights, title and interests in several patent applications for the treatment of alcohol abuse disorder and various other non-controlled binge behaviors. As part of this process, the Company announced a Change of Business, or COB listing, on the CSE. The COB became effective in November 2020. In May 2021, the Company completed all of the requirements of the CSE for a COB listing. The Company's common shares trade on the Canadian Securities Exchange under the symbol "CMND".

On September 30, 2022, the Company's Board of Directors approved a 1-for-30 reverse split of its issued and outstanding ordinary shares, effective as of September 30, 2022, pursuant to which holders of the Company's ordinary shares received 0.0333 of an ordinary share for every one ordinary share.

On November 14, 2022, the Company completed a public offering for aggregate gross proceeds of US$7.5 million and up listing to the Nasdaq Capital Market ("Nasdaq"). As a result, the Company also trades under the symbol CMND on the Nasdaq.

**CLEARMIND MEDICINE INC.**

Management's Discussion and Analysis

For the Three Months Ended January 31, 2023

***Company Overview***

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The Company is a pre-clinical pharmaceutical company approaching phase 1 clinical trials, that develops novel psychedelic medicines to solve widespread, yet under-served, health problems. The Company's goal is to develop and provide a new type of treatment for mental health disorders, including alcohol use disorders, or AUD, binge drinking and eating disorders, where there is significant unmet need and lack of innovation. The Company sees psychedelic therapies, which previously may have been overlooked or underused, as the future of treatment for a variety of indications. The Company believes that its solution for AUD can help solve one of the world's biggest health problems, which costs the United States alone roughly $250 billion each year.

The Company's flagship treatment and focus for the short term is on AUD, which is incredibly common. It varies from mild to excessive and describes a person's inability to restrict their alcohol consumption, despite negative social, occupational, or health consequences. Alcohol consumption contributes to 3 million deaths each year globally and is the third most common preventable cause of death in the United States. Apart from potentially changing people's lives, the Company believes that the Company's treatment could potentially reduce the amount currently being spent on the consequences of AUD in the United States, Europe, India, China and other countries around the world. The Company also believes that its treatment may address binge drinking. 95,000 people die every year in the United States alone due to binge drinking.

The Company has completed a series of pre-clinical, investigational new drug—, or IND—, enabling studies in the United States and China that are required before the Company can study its compound for the first time in humans. These studies include pharmacokinetic and toxicological studies in rats and dogs in order to assess the safety profile of the Company's compound and characterization of the drug metabolism. The Company has conducted several metabolism studies designed to better understand the way 5-Methoxy-2-aminoindane, or MEAI, is digested in several species. In addition, the Company has conducted a pre-clinical animal model of AUD to characterize the effect of MEAI on alcohol consumption. This study involved testing the effect of MEAI's ability to curb alcohol cravings after exposing mice to prolonged alcohol consumption over a short period, mimicking binge alcohol consumption in humans.

The Company intends to submit the Company's IND request and to initiate the Phase I/IIa clinical study in the first quarter of 2023. As part of this strategy, the Company had a pre-IND meeting with the U.S. Food and Drug Administration, or FDA, in May 2022. The Company plans to submit applications to conduct the Phase I/IIa study in Europe, the United States and Israel. Upon completion of the Phase I/IIa studies, if successful, the Company will be required to conduct additional clinical trials subject to securing additional financing.

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***Research and development work***

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In addition to the Company's research programs on the uses of MEAI, the Company has plans to conduct 12 other research programs on different molecules, which are to be led by the Company's highly skilled, focused team, with deep expertise in their respective fields, several of whom have taken products from the discovery phase to clinical trials in the United States in their previous respective roles, as well as key members of the Company's scientific advisory board who have participated in numerous clinical trials in the areas of alcoholism and addiction.

**CLEARMIND MEDICINE INC.**

Management's Discussion and Analysis

For the Three Months Ended January 31, 2023

These 12 additional drug programs can be separated into two categories. Nine of these programs are in the pre-discovery phase, and are primarily aimed at discovering innovative molecules designed for the treatment of mental health diseases such as depression, anxiety and post-traumatic stress disorder, or PTSD. Of the remaining three of these programs which are all in the discovery phase, one is aimed at the treatment of depression and treatment resistant depression, or TRD, while the other two are aimed at studying substances that can replicate the effects of 3,4-methylenedioxymethamphetamine, or MDMA, for therapeutic purposes.

In the Company's research program aimed at treating depression and TRD, the Company has been studying the effects of administering 2-fluorodeschloroketamine, or 2-FDCK. The Company investigated 2-FDCK in a pre-clinical proof-of-concept study. In the Company's two research programs aimed at finding substances that can be utilized for the same therapeutic purposes as MDMA, the Company will be studying 1-(Benzofuran-5-yl)-N-methylpropan-2-amine, or 5-MAPB and 1-Benzofuran-6-yl propan-2-amine, or 6-APB. The Company believes these treatments may be beneficial for fail-safes for MDMA based on a September 2016 article from Naunyn-Schmiedeberg's Archives of Pharmacology, which reported the receptor binding profiles of 5-MAPB and 6-APB are different enough from MDMA to effectively perform a substitute role in the therapy while being similar enough so as not to have to change the therapeutic protocol.

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***Strategy***

With respect to the Company's AUD programs, the Company developed MEAI as a new chemical entity (NCE) drug candidate. The Company intends to seek regulatory approval through the FDA's 505(b)(1) regulatory path. The FDA's 505(b)(1) regulatory path is typically used for novel drugs that have not previously been studied or approved, and drug development pursuant to this path requires drug developers to conduct all studies needed to demonstrate the safety and efficacy of the drug. Given its nature, this type of submission requires extensive research, including both clinical and nonclinical studies, to prove the product's safety and efficacy for the indication being sought.

Pursuant to the Company's pre-IND meeting correspondence with the FDA, the FDA informed the Company that the Phase I portion of the Company's Phase I/IIa study could not include only AUD patients (i.e., the Company's target population). Accordingly, at the pre-IND meeting, the Company discussed a hybrid model for the Phase I portion of the study, where the Company would study both healthy volunteers and AUD patients, and the FDA did not rule this out as a possibility. While the Company cannot guarantee that the FDA will approve the Company's request, if approved, such special accommodation would allow the Company's to start the first in-human study with the target population rather than with healthy volunteers. If the FDA grants the Company the ability to use the hybrid model that includes AUD patients, the Company's timeline for the clinical development of MEAI could be accelerated as it will potentially allow the Company's to submit only one IND application, IRB application and one set of study reports for both Phase I and Phase IIa of the Company's clinical trial. Furthermore, this model allows the Company to reach the Company's target population quicker, hence getting more substantial safety data on the Company's target population at an earlier stage.

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**CLEARMIND MEDICINE INC.**

Management's Discussion and Analysis

For the Three Months Ended January 31, 2023

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**Selected Financial Information**

The following financial data prepared in accordance with IFRS in Canadian dollars is presented for the three month periods ended January 31, 2023 and 2022.

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| | | |
|:---|:---|:---|
|  | **Three months ended** | **Three months ended** |
|  | **January 31,** | **January 31,** |
|  | **2023** | **2022** |
| Operating expenses |  |  |
| General and administrative | $1679546 | $1660157 |
| Research and development | 792460 | 424262 |
| Total operating expenses | 2472006 | 2084419 |
| Loss before other expenses | (2472006) | (2084419 |
| Finance expenses |  |  |
| &nbsp;&nbsp;&nbsp;Unrealized loss on short-term investment | (84224) |  |
| &nbsp;&nbsp;&nbsp;Foreign exchange gain (loss) | 42348 | (6464) |
| &nbsp;&nbsp;&nbsp;Interest income | 36875 | – |
| Total finance expenses | (5001) | (6464) |
| Other incomes |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividend received | 22101 | – |
| Total other incomes | 22101 | – |
| Loss before taxes | (2454906) | (2090883) |
| &nbsp;&nbsp;&nbsp;Tax expenses | (4562) | – |
| Net Loss | (2459468) | (2090883) |
| Other comprehensive loss for the period |  |  |
| Items that may be reclassified subsequently to profit or loss: |  |  |
| Foreign exchange differences on translation of foreign operations | (4618) | – |
| Comprehensive loss | $(2464086) | $(2090883) |

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**<u>Three-month period ended January 31, 2022, compared to the three-month period ended January 31, 2021</u>**

<u>Research Costs</u>

Research costs are comprised primarily of (i) Salaries and wages to Company employees at and (ii) pre-clinical trials.

For the three-month period ended January 31, 2023, research costs amounted to $792,460 as compared to $424,262 for the three-month period ended January 31, 2022. The increase is attributed to the advancement of our research program.

<u>General and Administrative Expenses</u>

For the three-month period ended January 31, 2023, general and administrative expenses amounted to $1,679,546 as compared to $1,660,157 for the three-month period ended January 31, 2022. The amount incurred in 2023 is consistent with the amount spent in 2022.

**CLEARMIND MEDICINE INC.**

Management's Discussion and Analysis

For the Three Months Ended January 31, 2023

<u>Finance expenses</u>

For the three-month period ended January 31, 2023, financial expenses amounted to $5,001 as compared to an $6,464 for the three-month period ended January 31, 2022. The financial expenses during the three-month period ended January 31, 2023 consist of unrealized loss on short-term investment of $84,224, foreign exchange gain of $42,348 and interest income of $36,875 that derived from our cash investments.

<u>Loss for the period</u>

The Company reported a loss for the three-month period ended January 31, 2023 of $2,459,468 as compared to a loss of $2,090,883 for the three-month period ended January 31, 2022. The primary reason the increased loss is due to the increase in research and development costs.

**Financial Summary of Quarterly Results**

The following is a summary of the Company's financial results for the eight most recently completed quarters.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **January 31, <br> 2023** | **October 31, <br> 2022** | **July 31, <br> 2022** | **April 30, <br> 2022** |
| Total revenues | $– | $– | $– | $– |
| Net loss | (2459468) | (2121298) | (2024162) | (3174463) |
| Net loss per share, basic and diluted | (1.07) | (1.67) | (1.50) | (2.40) |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **January 31, <br> 2022** | **October 31, <br> 2021** | **July 31, <br> 2021** | **April 30, <br> 2021** |
| Total revenues | $– | $– | $– | $– |
| Net loss | (2090883) | (2529298) | (1082704) | (188818) |
| Net loss per share, basic and diluted | (1.67) | (2.70) | (0.90) | (0.30) |

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Factors causing significant variations in quarterly results are as follows:

● The increase in loss for the quarter ended April 30, 2021, was primarily due to an increase in professional, management and directors' fees.

● The increase in loss for the quarter ended July 31, 2021, was primarily due to an increase in professional, management and directors' fees.

● The increase in loss for the quarter ended October 31, 2021, was primarily due to an increase in share-based compensation of $846,155 that relates to the grant of 111,889 stock options and 6,667 restricted share units during the quarter, and an increase in research and development.

● The decrease in loss for the quarter ended January 31, 2022, was primarily due to a decrease in share-based compensation.

● The increase in loss for the quarter ended April 30, 2022, was primarily due to an increase in research and development.

● The decrease in loss for the quarter ended July 31, 2022, was primarily due to a decrease in research and development.

● The increase in loss for the quarter ended October 31, 2022, was primarily due to an increase in research and development.

● The increase in loss for the quarter ended January 31, 2023, was primarily due to an increase in general and administrative.

**CLEARMIND MEDICINE INC.**

Management's Discussion and Analysis

For the Three Months Ended January 31, 2023

**Liquidity and Capital Resources**

As of January 31, 2023, the Company had cash on hand of $4,498,048 and positive working capital of $4,909,524, compared to $175,768 and negative working capital of $4,563,211 as of October 31, 2022, respectively. During the three-month period ended January 31, 2023, the Company's overall position of cash increased by $4,322,280 from the year ended October 31, 2022. This decrease in cash can be attributed to the following:

● The Company's net cash used in operating activities during the three-month period ended January 31, 2023, was $4,118,018 as compared to $1,786,855 for the three-month period ended January 31, 2022. This increase is mostly due to company growth and the increased expenditures on research and development during the period.

● Net cash provided by financing activities for the three-month period ended January 31, 2023, was $8,455,321 as compared to $nil for the three-month period ended January 31, 2022. Cash provided in 2023 was from November 2022 financing on Nasdaq.

The Company may have capital requirements in excess of its currently available resources. In the event the Company's plans change, its assumptions change or prove inaccurate, or its capital resources in addition to projected cash flow, if any, prove to be insufficient to fund operations, the Company may be required to seek additional financing. There can be no assurance that the Company will have sufficient financing to meet its future capital requirements or that additional financing will be available on terms acceptable to the Company in the future.

**Capital Management**

The Company manages its capital to maintain its ability to continue as a going concern and to provide returns to shareholders and benefits to other stakeholders. The capital structure of the Company consists of cash and equity comprised of issued capital, shares issuable, warrants reserve and share-based payment reserve.

The Company manages its capital structure and makes adjustments to it in light of economic conditions. The Company, upon approval from its Board of Directors, will balance its overall capital structure through new share issuances or by undertaking other activities as deemed appropriate under the specific circumstances.

The Company is not subject to externally imposed capital requirements and the Company's overall strategy with respect to capital risk management remains unchanged from the year ended October 31, 2022.

**Off Balance Sheet Arrangements**

There are no off-balance sheet arrangements to which the Company is committed.

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**CLEARMIND MEDICINE INC.**

Management's Discussion and Analysis

For the Three Months Ended January 31, 2023

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**Transactions With Related Parties**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Compensation to key management personnel

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The compensation to key management personnel for employment services they provide to the Company is as follows:

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| | | |
|:---|:---|:---|
|  | **Three months ended**<br>**January 31,**<br>**2023** | **Three months ended**<br>**January 31,**<br>**2022** |
| **Officers:** |  |  |
| &nbsp;&nbsp;&nbsp;<br> Consulting fees | $190374 | $127859 |
| &nbsp;&nbsp;&nbsp;Share based compensation | 59933 | 147424 |
|  | $250307 | $275283 |
| **Directors:** |  |  |
| &nbsp;&nbsp;&nbsp;Directors' fees | $73581 | $24000 |
| &nbsp;&nbsp;&nbsp;Share based compensation | 59465 | 14979 |
|  | $133046 | $38979 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Balances with related parties

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| | | |
|:---|:---|:---|
|  | **January 31,**<br>**2023** | **October 31,**<br>**2022** |
| &nbsp;&nbsp;&nbsp;Amounts owed to officers | $124257 | $185830 |
| &nbsp;&nbsp;&nbsp;Amounts owed to directors | 19575 | 96014 |
|  | $143832 | $281844 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. On March 7, 2022, the Company signed an agreement with SciSparc, pursuant to which the Company and SciSparc agreed to cooperate in conducting a feasibility study using certain molecules developed by each party (the "Cooperation Agreement"). Certain of the Company's officers and directors currently operate, manage or are engaged as officers and/or directors of SciSparc, which may have similar or different objectives than the Company's. Such activities could detract from the time these people have to allocate to the Company's affairs. To date, no determination has been made to pursue the joint venture and the development of the research activities with SciSparc remains in a very early stage. For the three months ended January 31, 2023, the Company received $13,180 as a reimbursement for research and development expenses conducted within the framework of the Cooperation Agreement. As of January 31, 2023, $77,314 is owed to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. The Company shares office space with SciSparc.

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**CLEARMIND MEDICINE INC.**

Management's Discussion and Analysis

For the Three Months Ended January 31, 2023

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**Financial Instruments and Risk Management**

(a) Fair Values

Assets and liabilities measured at fair value on a recurring basis were presented on the Company's statement of financial position as at January 31, 2023, as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measurements Using** | **Fair Value Measurements Using** | **Fair Value Measurements Using** | |
|  | **Quoted prices<br> in active markets<br> for identical<br> instruments**<br> **(Level 1)**<br> **$** | **Significant<br> other<br> observable<br> inputs<br> (Level 2)**<br> **$** | **Significant<br> unobservable<br> inputs <br> (Level 3)**<br> **$** |<br>**Balance<br> January 31,<br> 2023**<br> **$** |
| &nbsp;&nbsp;Short-term investment | 180225 |  |  | 180225 |

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Assets and liabilities measured at fair value on a recurring basis were presented on the Company's statement of financial position as of October 31, 2022, as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measurements Using** | **Fair Value Measurements Using** | **Fair Value Measurements Using** | |
|  | **Quoted prices <br> in active markets<br> for identical<br> instruments <br> (Level 1)** | **Significant <br> other<br> observable<br> inputs <br> (Level 2)** | **Significant<br> unobservable<br> inputs <br> (Level 3)** |<br>**Balance <br> October 31, <br> 2022** |
| Short-term investment | $264449 | $– | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– | $264449 |
| Derivative liability |  | 396597 |  | 396.597 |

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The fair values financial instruments, which include cash, amounts receivable, accounts payable and accrued liabilities, and amounts due to related parties, approximate their carrying values due to the relatively short-term maturity of these instruments.

(b) Credit Risk

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash. The Company limits its exposure to credit loss by placing its cash with high credit quality financial institutions. The carrying amount of financial assets represents the maximum credit exposure.

(c) Foreign Exchange Rate Risk

Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that monetary assets and liabilities are denominated in a foreign currency. The Company's subsidiary operates in Israel and has certain monetary financial instruments denominated in New Israeli Shekel and U.S dollars. The Company has not entered into foreign exchange rate contracts to mitigate this risk.

The following table indicates the impact of foreign currency exchange risk on net working capital as at January 31, 2023. The table below also provides a sensitivity analysis of a 10% strengthening of the foreign currency against functional currencies identified which would have increased (decreased) the Company's net loss by the amounts shown in the table below. A 10% weakening of the foreign currency against the functional currencies would have had the equal but opposite effect as of January 31, 2023.

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| | |
|:---|:---|
| Cash | $4491696 |
| Amounts receivable | 161758 |
| Accounts payable and accrued liabilities | (888123) |
| Due to related parties | (112957) |
| Total foreign currency financial assets and liabilities | $3652374 |
| Impact of a 10% strengthening or weakening of foreign exchange rate | $365237 |

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**CLEARMIND MEDICINE INC.**

Management's Discussion and Analysis

For the Three Months Ended January 31, 2023

(d) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to significant interest rate risk as it does not have any liabilities with variable rates.

(e) Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company's objective to managing liquidity risk is to ensure that it has sufficient liquidity available to meet its liabilities when due. The Company relies on raising debt or equity financing in a timely manner.

The following amounts are the contractual maturities of financial liabilities as of January 31, 2023, and October 31, 2022:

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| | | | |
|:---|:---|:---|:---|
| **January 31, 2023** | **Total** | **Within <br>1 year** | **Within <br>2-5 years** |
| Accounts payable and accrued liabilities | $900872 | $900872 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– |
| Due to related parties | 143832 | 143832 |  |
| Lease liability | 27017 | 27017 |  |
|  | $1071721 | $1071721 | $– |

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| | | | |
|:---|:---|:---|:---|
| **October 31, 2022** | **Total** | **Within 1<br> year** | **Within <br> 2-5 years** |
| Accounts payable and accrued liabilities | $1906706 | $1906706 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– |
| Due to related parties | 281844 | 281844 |  |
| Derivative liability | 396597 | 396597 |  |
| Lease liability | 52399 | 52399 |  |
|  | $2637546 | $2637546 | $– |

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**Accounting Standards Issued But Not Yet Effective**

A number of new standards, and amendments to standards and interpretations, are not yet effective for the three months ended January 31, 2023, and have not been early adopted in preparing these condensed interim consolidated financial statements. These new standards, and amendments to standards and interpretations are either not applicable or are not expected to have a significant impact on the Company's condensed interim consolidated financial statements.

**Significant Accounting Estimates and Judgments**

The preparation of condensed interim consolidated financial statements in accordance with IFRS requires management to make judgments, estimates, and assumptions that affect the application of policies and reported amounts of assets, liabilities, income, and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

**CLEARMIND MEDICINE INC.**

Management's Discussion and Analysis

For the Three Months Ended January 31, 2023

<u>Significant Estimates</u>

<u> </u>

*Share-based Compensation*

 

Fair values are determined using the Black-Scholes option pricing model. Estimating fair value requires determining the most appropriate valuation model for a grant of equity instruments, which is dependent on the terms and conditions of the grant. Option-pricing models require the use of highly subjective estimates and assumptions including the expected stock price volatility. Changes in the underlying assumptions can materially affect the fair value estimates and, therefore, existing models do not necessarily provide reliable measurement of the fair value of the Company's stock options.

*Deferred Income Taxes*

 

The determination of income tax expense and the composition of deferred income tax assets and liabilities involves judgment and estimates as to the future taxable earnings, expected timing of reversals of deferred income tax assets and liabilities, and interpretations of tax laws. The Company is subject to assessments by tax authorities who may interpret the tax law differently. Changes in these interpretations, judgments, and estimates may materially affect the final amount of deferred income tax provisions, deferred income tax assets and liabilities, and results of operations.

<u>Significant Judgments</u>

<u> </u>

The critical judgments that the Company's management has made in the process of applying the Company's accounting policies that have the most significant effect on the amounts recognized in the Company's consolidated financial statements are as follows:

*<u>Going Concern</u>*

*<u> </u>*

The application of the going concern assumption which requires management to take into account all available information about the future, which is at least but not limited to, 12 months from the year end of the reporting period. The Company is aware that material uncertainties related to events or conditions may cast significant doubt upon the Company's ability to continue as a going concern.

**Additional Disclosure For Companies Without Significant Revenue**

An analysis of material components of the Company's general and administrative expenses is disclosed in the condensed interim consolidated financial statements for the three-months ended January 31, 2023, to which this MD&A relates.

**Disclosure of Outstanding Share Data**

Authorized share capital consists of unlimited number of common shares without par value.

As of January 31, 2023, and March 17, 2023, the Company had 2,478,441 and 2,490,447 common shares issued and outstanding, respectively.

As of January 31, 2023, and March 17, 2023, the Company had 157,666 stock options outstanding, respectively.

As of January 31, 2023, and March 17, 2023, the Company had 650,603 share purchase warrants outstanding.

As of January 31, 2023, and March 17, 2023, the Company had 51,943 and 39,937 RSU's outstanding**.**

**CLEARMIND MEDICINE INC.**

Management's Discussion and Analysis

For the Three Months Ended January 31, 2023

**Risks and Uncertainties**

The Company business, and investing in the Company's securities, are subject to numerous risks, as more fully described in the section entitled "Risk Factors" beginning on page 9 and other risk factors contained in the Company's Annual Information Form filed in SEDAR on December 1, 2022. If any of these risks actually occur, the Company's business, financial condition or results of operations would likely be materially adversely affected. In each case, the trading price of the Company's securities would likely decline, and investors may lose all or part of their investment. The following is a summary of some of the principal risks the Company faces:

● The Company has incurred losses since its inception. The Company anticipated that it will incur significant losses for the foreseeable future, and the Company may never achieve or maintain profitability.

● The Company's financial statements contain an explanatory paragraph regarding substantial doubt about the Company's ability to continue as a going concern.

● If the Company is unable to establish sales and marketing capabilities or enter into agreements to sell and market any product candidates, the Company may not be successful in commercializing those product candidates.

● If the Company is unable to maintain effective proprietary rights for the Company's product candidates or any future product candidates, the Company may not be able to compete effectively in its markets.