What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-10-20 compared with 2025-07-21 · 60 added, 25 removed, 180 unchanged (32% of the section changed)

146 unchanged sentences

Three months ended

May 31, 2025, compared to three months ended May 31, 2024

August 31, 2025, compared to three months ended August 31, 2024

Net revenue was $0 for

the three months ended August 31, 2025, compared to $3 for the three months ended August 31, 2024.

Revenues continue to be negatively

impacted due to a generally low level of resources on our legacy products as well as our shift to the development and production of the

prototype for our new product line.

We cannot project with confidence the timing or amount of revenue that we can expect until the prototype

is completed, which should be in Fiscal 2026.

Cost of Goods

Cost of goods sold was

$0 in the three months ended August 31, 2025, compared to $(18) for the three months ended August 31, 2024.

Engineering, Research and Development

Engineering, research

and development expenses were $336 in the three months ended August 31, 2025, compared to $239 for the three months ended August 31, 2024.

Selling, General and Administrative Expense

Selling, general and

administration (“SG&A”) expenses for the three months ending August 31, 2025, were $578 as compared to $2,255 for the

three months ending August 31, 2025, a decreased by $1,677 in the three-month period ending August 31, 2025, compared to the three months

ended August 31, 2024.

The decrease was from $1,601 of stock-based compensation recorded in the prior year period, which did not occur

during the current year period.

Other Income (Expense) and Interest Expense

Interest expense increased by $380 to $669 for

the three months ended August 31, 2025, as compared to $289 for the three months ended August 31, 2024.

The Company estimated the fair

value of the conversion option derivative liability using a Black-Scholes option pricing model and recorded the change in fair value of

the derivative liability of $3,181 and $3,628 at August 31, 2025 and August 31, 2024, respectively.

We recorded net losses of approximately $4,764

and $6,390 for the three months ended August 31, 2025 and 2024, respectively.

The decrease in our net loss was due to several factors,

as noted above, including the recording of stock based compensation in the prior year period, and the change in fair value of our derivative

Six months ended August

31, 2025, compared to six months ended August 31, 2024

Net revenue was $185

for the three-months ended May 31, 2025, compared to $47 for the three-months ended May 31, 2024.

Revenues continue to be negatively impacted

due to a generally low level of resources on our legacy products as well as our shift to the development and production of the prototype

for our new product line.

We cannot project with confidence the timing or amount of revenue that we can expect until the prototype is

completed, which should be in Fiscal 2026.

for the six months ended August 31, 2025, compared to $50 for the six months ended August 31, 2024.

Revenues continue to be negatively

impacted due to a generally low level of resources on our legacy products as well as our shift to the development and production of the

prototype for our new product line.

We cannot project with confidence the timing or amount of revenue that we can expect until the prototype

is completed, which should be in Fiscal 2026.

Cost of Goods

Cost of goods sold was

$25 in the three-months ended May 31, 2025, compared to $47 for the three-months ended May 31, 2024.

$25 in the six months ended August 31, 2025, compared to $29 for the six months ended August 31, 2024.

Engineering, Research and Development

Engineering, research

and development expenses were $353 in the three-months ended May 31, 2025, compared to $310 for the three-months ended May 31, 2024.

and development expenses were $689 in the six months ended August 31, 2025, compared to $549 for the six months ended August 31, 2024.

Selling, General and Administrative Expense

Selling, general and

administration (“SG&A”) expenses for the three months ending May 31, 2025, were $484 as compared to $374 for the three

months ending May 31, 2025, an increased by $110 or 29% in the three-month period ending May 31, 2025, compared to the three-months ended

May 31, 2024.

administration (“SG&A”) expenses for the six months ending August 31, 2025, were $1,062 as compared to $2,629 for the

six months ending August 31, 2025, a decreased by $1,567 in the six-month period ending August 31, 2025, compared to the six months ended

August 31, 2024.

The decrease was from $1,601 of stock-based compensation recorded in the prior year period, which did not occur during

the current year period.

Other Income (Expense) and Interest Expense

Interest expense increased by $699 to $1,263 for

the three months ended May 31, 2025, as compared to $275 for the three months ended May 31, 2024.

During the three months ended May 31,

the six months ended August 31, 2025, as compared to $564 for the six months ended August 31, 2024.

During the six months ended August

31, 2024, the Company recorded a loss on debt extinguishment of $19,324, which did not occur in the current year period.

1 unchanged sentence

the fair value of the conversion option derivative liability using a Black-Scholes option pricing model and recorded the change in fair

value of the derivative liability of ($1,570) and $5,023 at May 31, 2025 and May 31, 2024, respectively.

value of the derivative liability of ($4,751) and $1,395 at August 31, 2025 and August 31, 2024, respectively.

We recorded net losses of approximately $7,605

and $15,258 for the three months ended March 31, 2025 and 2024, respectively.

and $21,648 for the six months ended August 31, 2025 and 2024, respectively.

The decrease in our net loss was due to several factors,

as noted above, including the recording of a loss on debt extinguishment to a related party, and the change in fair value of our derivative

as noted above, including the recording of a loss on debt extinguishment to a related party, the prior year recording of stock stock-based

compensation, and the change in fair value of our derivative liability.

Liquidity and Capital Resources

For the three months ended May 31, 2025, we recorded

a net loss of $2,841, used cash in operations of $746, and at May 31, 2025, had a stockholders’ deficit of $39,586.

at May 31, 2025, notes payable and related accrued interest with an aggregate balance of $5,566 have reached maturity and are past due.

These conditions raise substantial doubt regarding our ability to continue as a going concern for a period of at least one year from the

date of issuance of these financial statements.

In addition, the Company’s independent registered public accounting firm, in their

report on the Company’s February 28, 2025, audited financial statements, raised substantial doubt about the Company’s ability

to continue as a going concern.

For the six months ended August 31, 2025, we recorded

a net loss of $7,605, used cash in operations of $1,510, and at August 31, 2025, had a stockholders’ deficit of $43,501.

at August 31, 2025, notes payable and related accrued interest with an aggregate balance of $5,266 have reached maturity and are past

These conditions raise substantial doubt regarding our ability to continue as a going concern for a period of at least one year from

the date of issuance of these financial statements.

In addition, the Company’s independent registered public accounting firm, in

their report on the Company’s February 28, 2025, audited financial statements, raised substantial doubt about the Company’s

ability to continue as a going concern.

Prior to Fiscal 2020, in order to maintain liquidity,

17 unchanged sentences

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