What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-01-20 compared with 2025-10-20 · 47 added, 49 removed, 191 unchanged (33% of the section changed)

146 unchanged sentences

Three months ended

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

November 30, 2025, compared to three months ended November 30, 2024

Net revenue was $80 for

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

the three months ended November 30, 2025, compared to $0 for the three months ended November 30, 2024.

Revenues continue to be negatively

5 unchanged sentences

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.

$0 in the three months ended November 30, 2025, compared to $0 for the three months ended November 30, 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.

and development expenses were $459 in the three months ended November 30, 2025, compared to $196 for the three months ended November 30,

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.

administration (“SG&A”) expenses for the three months ending November 30, 2025, were $466 as compared to $673 for the

three months ending November 30, 2025, a decrease of $207 in the three-month period ending November 30, 2025, compared to the three months

ended November 30, 2024.

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

Interest expense decreased by $121 to $358 for

the three months ended November 30, 2025, as compared to $479 for the three months ended November 30, 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 $6,705 and $808 at November 30, 2025 and November 30, 2024, respectively.

We recorded net income of $5,502 and net losses

of approximately $540 for the three months ended November 30, 2025 and 2024, respectively.

The decrease in our net loss was due to several

factors, as noted above, including the change in fair value of our derivative liability.

Nine months ended

November 30, 2025, compared to nine months ended November 30, 2024

Net revenue was $265

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

for the nine months ended November 30, 2025, compared to $50 for the nine months ended November 30, 2024.

Revenues continue to be negatively

5 unchanged sentences

Cost of goods sold was

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

$25 in the nine months ended November 30, 2025, compared to $29 for the nine months ended November 30, 2024.

Engineering, Research and Development

Engineering, research

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

and development expenses were $1,149 in the nine months ended November 30, 2025, compared to $745 for the nine months ended November 30,

Selling, General and Administrative Expense

Selling, general and

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.

administration (“SG&A”) expenses for the nine months ending November 30, 2025, were $1,528 as compared to $3,302 for the

nine months ending November 30, 2025, a decreased of $1,774 in the nine-month period ending November 30, 2025, compared to the nine months

ended November 30, 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 $578 to $1,621 for

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.

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 ($4,751) and $1,395 at August 31, 2025 and August 31, 2024, respectively.

the nine months ended November 30, 2025, as compared to $1,043 for the nine months ended November 30, 2024.

During the nine months ended

November 30, 2024, the Company recorded a loss on debt extinguishment of $19,324, which did not occur in the current year period.

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 $1,954 and $2,203 at November 30, 2025 and November 30, 2024, respectively.

We recorded net losses of approximately $2,103

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

and $22,188 for the nine months ended November 30, 2025 and 2024, respectively.

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

2 unchanged sentences

Liquidity and Capital Resources

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

For the nine months ended November 30, 2025, we

recorded a net loss of $2,104, used cash in operations of $2,457, and at November 30, 2025, had a stockholders’ deficit of $36,928.

In addition, at November 30, 2025, notes payable and related accrued interest with an aggregate balance of $5,266 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.

6 unchanged sentences

to customers.

We cannot assure the reader that additional financing will be available nor that the commercial targets will be met in the

amounts required to keep the business operating.

The issuance of additional shares of equity in connection with such financing could dilute

the interests of our existing stockholders, and such dilution could be substantial.

If we cannot raise the funds needed, we will also

be forced to make further substantial reductions in our operating expenses, which could adversely affect our ability to implement our

current business plan and ultimately our viability as a company.

We cannot assure that additional financing will be available nor that the commercial targets will be met in the amounts

required to keep the business operating.

The issuance of additional shares of equity in connection with such financing could dilute the

interests of our existing stockholders, and such dilution could be substantial.

If we cannot raise the funds needed, we will also be forced

to make further substantial reductions in our operating expenses, which could adversely affect our ability to implement our current business

plan and ultimately our viability as a company.

Quantitative and Qualitative Disclosures

3 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