What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-05-10 compared with 2024-02-12 · 47 added, 51 removed, 175 unchanged (36% of the section changed)

MANAGEMENT’S DISCUSSION

AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

Unless otherwise stated or the context otherwise

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Departure and Appointment of Directors and Officers

On November 8, 2022, Lee McCarthy provided notice

of his resignation as our Chief Operating Officer effective November 17, 2022.

McCarthy’s decision to resign was not the

result of any disagreements with us on any matter related to the operations, policies, or practices of us.

On December 14, 2023, Palvi Mehta’s term

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of our plan of operations.

We have installed some key manufacturing equipment at our headquarters and will continue to develop relationships

We have installed key manufacturing equipment at our headquarters and will continue to develop relationships

with manufacturing partners to carry out certain steps of our manufacturing processes externally.

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Operating Expenses

The cost of revenue consists

of costs of materials, as well as direct compensation and expenses incurred to provide deliverables that resulted in payment of our success

fee and wafers delivered.

We anticipate that our cost of revenue will vary substantially depending on the nature of products and/or services

delivered in each customer engagement.

Research and development

expenses consist primarily of compensation and related costs for personnel, including stock-based compensation and employee benefits,

costs associated with design, fabrication, packaging and testing of our devices, and facility lease and utility expenses.

We expense research

and development expenses as incurred.

The cost of revenue

consists of costs of materials, as well as direct compensation and expenses incurred to provide deliverables that resulted in

payment of our success fee and wafers delivered.

We anticipate that our cost of revenue will vary substantially depending on the

nature of products and/or services delivered in each customer engagement.

Research and development expenses consist primarily of

compensation and related costs for personnel, including stock-based compensation and employee benefits, costs associated with

design, fabrication, packaging and testing of our devices, and facility lease and utility expenses.

We expense research and

development expenses as incurred.

General and administrative

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Other income, net of

other expenses, consists primarily of income generated from subleasing a portion of our research and development facility and interest

other expenses, consists primarily of interest income and income generated from subleasing a portion of our research and development facility.

The sub-lease ended in March 2023

Income Tax Expense

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Results of Operations

Six months ended December 31, 2023 compared

to the six months ended December 31, 2022

Our results of operations for the six-month period

ended December 31, 2023, as compared to the six-month period ended December 31, 2022, were as follows:

Six Months Ended

Nine months ended March 31, 2024 compared

to the nine months ended March 31, 2023

Our results of operations for the nine-month period

ended March 31, 2024, as compared to the nine-month period ended March 31, 2023, were as follows:

Nine Months Ended

Operating expenses

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Revenue increased 100% to $639,286,

$295,392, of which $32,400 was from product sales for sampling purchases and $262,992 was from government contracts, for the six

months ended December 31, 2023.

During the six months ended December 31, 2022, we were pre-revenue and, accordingly recorded no revenues.

of which $32,400 was from product sales for sampling purchases and $606,886 was from government contracts, for the nine months ended March

During the nine months ended March 31, 2023, we were pre-revenue and, accordingly recorded no revenues.

Operating expenses :

Operating expense increased

$185,321 to $2,906,902 for the six months ended December 31, 2023 from $2,721,581 for the same period in 2022, due primarily to increased

cost of revenue and stock-based compensation expenses, offset primarily by a reduction in consulting expenses.

Operating expense decreased

$76,513 to $4,213,564 for the nine months ended March 31, 2024 from $4,290,077 for the same period in 2023, due primarily to a reduction

in consulting expenses, offset partially by increased salaries and stock-based compensation expenses.

Other income:

Other income decreased $217,888

to $681 for the six months ended December 31, 2023 from $110,991 for the same period in 2022.

to $798 for the nine months ended March 31, 2024 from $218,686 for the same period in 2023.

The decrease was due primarily to a $128,921

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We did not record income

tax expense for either of the six months ended December 31, 2023 and 2022.

tax expense for either of the nine months ended March 31, 2024 and 2023.

Impact of COVID-19

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challenges, the residual effects of the COVID-19 pandemic did not have a significant impact on the Company’s results of operations or

financial condition for the six months ended December 31, 2023.

financial condition for the nine months ended March 31, 2024.

Capital Resources and Liquidity

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As presented in the financial statements, we incurred a net loss of $3,573,480 and $4,071,391 for the

six months ended December 31, 2023 and 2022, respectively, and losses are expected to continue in the near term.

nine months ended March 31, 2024 and 2023, respectively, and losses are expected to continue in the near term.

The accumulated deficit

was $11,672,895 at December 31, 2023.

We have been funding our operations through private loans and the sale of common stock in private

placement transactions.

was $12,635,546 at March 31, 2024.

We have been funding our operations through the sale of common stock in private placement transactions.

Management anticipates

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achieve sustainable revenues and profitable operations.

At December 31, 2023, we had $2,423,054 of cash and cash equivalents.

At March 31, 2024, we had $1,874,565 of cash and cash equivalents.

are insufficient to complete our business plan and as a consequence, we will need to seek additional funds, primarily through the issuance

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We had working capital

of $2,348,750 and $4,576,807 at December 31, 2023 and June 30, 2023, respectively.

Current assets decreased $2,534,288 to $2,799.618 at

December 31, 2023 from $5,333,906 at June 30, 2023, primarily due to a $2,648,636 decrease in cash.

Current liabilities decreased $306,231

to $450,868 at December 31, 2023 from $757,099 at June 30, 2022, due primarily to decreases in accounts payable.

of $1,495,903 and $4,576,807 at March 31, 2024 and June 30, 2023, respectively.

Current assets decreased $3,191,699 to $2,142,207 at March

31, 2024 from $5,333,906 at June 30, 2023, primarily due to a $3,197,125 decrease in cash.

Current liabilities decreased $110,794 to $646,304

at March 31, 2024 from $757,099 at June 30, 2023, due primarily to decreases in accounts payable.

The following table shows a summary of our cash

flows for the periods presented:

Six Months Ended

Nine Months Ended

Net cash (used in) provided by:

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$ (3,197,125 )

Net cash used in our operating activities

were $2,480,345 and $2,001,195 for the six months ended December 31, 2023 and 2022, respectively, due primarily to net losses of $2,610,829

and $2,610,590 for the six months ended December 31, 2023 and 2022, respectively.

$ (4,313,658 )

Net cash used in our operating activities were

$2,876,190 and $2,699,033 for the nine months ended March 31, 2024 and 2023, respectively, due primarily to net losses of $3,573,480 and

$4,071,391 for the nine months ended March 31, 2024 and 2023, respectively.

Net cash used in our investing activities was

$164,290 and $103,826 for the six months ended December 31, 2023 and 2022, respectively.

$316,934 and $255,579 for the nine months ended March 31, 2024 and 2023, respectively.

Investing activities include purchase of equipment

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Net cash used in our financing activities was

$4,001 for the six months ended December 31, 2023 and net cash provided by our financing activities was $1,426,615 for the six months

ended December 31, 2022.

We paid $4,001 to purchase Lee McCarthy’s unvested restricted shares for the six months ended December

$4,001 for the nine months ended March 31, 2024 and net cash provided by our financing activities was $4,071,145 for the nine months ended

March 31, 2023.

We paid $4,001 to purchase Lee McCarthy’s unvested restricted shares for the nine months ended March 31, 2024

and received $4,071,145 from Private Placements, net of $270,855 offering cost.

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is included in our Annual Report on Form 10-K for the year ended June 30, 2023.

During the six months ended December 31, 2023,

During the nine months ended March 31, 2024,

there were no significant changes in our critical accounting policies.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis