What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-11-20 compared with 2025-08-19 · 148 added, 159 removed, 489 unchanged (39% of the section changed)

1 unchanged sentence

CONSOLIDATED BALANCE SHEETS

September 30,2025

December 31, 2024

43 unchanged sentences

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended

September 30,

Nine Months Ended

September 30,

Cost of sales

8 unchanged sentences

Gain (loss) on derivative valuation

Loss on disposal

Total other expense

( 1,336,006 )

Net loss from continuing operations

( 1,048,292 )

( 1,698,946 )

Loss from discontinued operations

4 unchanged sentences

$ ( 899,953 )

$ ( 1,138,064 )

$ ( 1,814,150 )

Net loss from continuing operations per common share, basic and diluted

4 unchanged sentences

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024

THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

stockholders’

Balance, December 31, 2024

$ ( 61,644,067 )

$ ( 24,405,561 )

Balance, March 31, 2025

( 61,799,503 )

( 24,560,997 )

Balance, June 30, 2025

$ ( 62,362,253 )

$ ( 25,123,747 )

Balance, December 31, 2023

$ ( 59,017,191 )

$ ( 21,778,685 )

Balance, March 31, 2024

( 59,535,279 )

( 22,296,773 )

( 59,535,279 )

( 22,296,773 )

Net income (loss)

Balance, June 30, 2024

$ ( 59,931,388 )

$ ( 22,692,882 )

$ ( 59,931,388 )

$ ( 22,692,882 )

December 31, 2024

March 31, 2025

June 30, 2025

September 30, 2025

stockholders’

December 31, 2023

March 31, 2024

June 30, 2024

September 30, 2024

accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Six Months Ended June 30,

For the Nine Months Ended September 30,

Cash flows from operating activities

10 unchanged sentences

Deposits on inventory - related party

Deposits on inventory

Accounts receivable

3 unchanged sentences

Accrued liabilities

Income tax liability

Accrued payroll and compensation

Accrued interest

Net cash (used) provided by operating activities

Net cash used by operating activities

( 1,031,790 )

Cash flows from financing activities:

Bank overdraft

Repayments of loans payable

Proceeds from related-party loans

Net Cash provided (used) by financing activities

Net Cash provided by financing activities

Net change in cash

30 unchanged sentences

In the opinion of our management, all adjustments, including

normal recurring adjustments necessary to present fairly our financial position, as of June 30, 2025, and the results of our operations

and cash flows for the six months then ended have been included.

normal recurring adjustments necessary to present fairly our financial position, as of September 30, 2025, and the results of our operations

and cash flows for the nine months then ended have been included.

The results of operations for the interim period are not necessarily

21 unchanged sentences

There were no cash

equivalents as of June 30, 2025 and December 31, 2024.

equivalents as of September 30, 2025 and December 31, 2024.

follow Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue

9 unchanged sentences

returns and any taxes collected from customers, which are subsequently remitted to governmental authorities.

the six months ended June 30, 2025 and 2024, we recognized revenue of $ 38,775 and $ 48,004 , respectively, related to the performance obligations

under product development service agreements with customers.

These contracts are long term in nature and revenue is recognized at certain

milestone intervals upon our delivery and customer acceptance of work product related to those milestones:

namely, product design, packaging,

branding display, and prototypes.

There were no costs to obtain the contracts identified, and therefore, no asset has been recorded for

customer acquisition costs.

We have not recognized impairment losses related to the receivables from these contracts during the six months

ended June 30, 2025 and 2024.

the nine months ended September 30, 2025 and 2024, we recognized revenue of $ 57,976 and $ 68,709 , respectively, related to the performance

obligations under product development service agreements with customers.

These contracts are long term in nature and revenue is recognized

at certain milestone intervals upon our delivery and customer acceptance of work product related to those milestones:

namely, product

design, packaging, branding display, and prototypes.

There were no costs to obtain the contracts identified, and therefore, no asset

has been recorded for customer acquisition costs.

We have not recognized impairment losses related to the receivables from these contracts

during the nine months ended September 30, 2025 and 2024.

Additionally,

we recognized revenues of $ 590,496 and $ 771,878 during the six months ended June 30, 2025 and 2024, respectively, related to the delivery

of products to our customers.

Each delivery is based on the unique contract with the customer, which is a stand-alone contract that we

retain the right to accept or reject.

Upon acceptance, we oblige delivery of such product to the customer at an agreed-upon place, time,

We recognize revenue under the unique contract upon fulfilment of our performance obligations therein, typically limited to

the delivery of product.

we recognized revenues of $ 1,019,767 and $ 1,007,243 during the nine months ended September 30, 2025 and 2024, respectively, related to

the delivery of products to our customers.

Each delivery is based on the unique contract with the customer, which is a stand-alone contract

that we retain the right to accept or reject.

Upon acceptance, we oblige delivery of such product to the customer at an agreed-upon place,

time, and price.

We recognize revenue under the unique contract upon fulfilment of our performance obligations therein, typically limited

to the delivery of product.

that have been recognized but not yet received are recorded as accounts receivable.

3 unchanged sentences

including historical loss experience, current conditions, and reasonable and supportable forecasts of future economic conditions.

of June 30, 2025 and December 31, 2024, the Company has recorded an allowance for doubtful accounts of $ 0 and $ 4,839 , respectively.

of September 30, 2025 and December 31, 2024, the Company has recorded an allowance for doubtful accounts of $ 783 and $ 4,839 , respectively.

in Securities

cost-method investment consists of an investment in a private digital multi-media technology company that totaled $ 248,000 and $ 248,000

at June 30, 2025 and December 31, 2024, respectively.

Because we owned less than 20 % of that company’s stock as of each date, and

no significant influence or control exists, the investment is accounted for using the cost method.

Pursuant to ASC 321, the Company also

searched for observable transactions in the investee’s stock and found none.

at September 30, 2025 and December 31, 2024, respectively.

Because we owned less than 20 % of that company’s stock as of each date,

and no significant influence or control exists, the investment is accounted for using the cost method.

Pursuant to ASC 321, the Company

also searched for observable transactions in the investee’s stock and found none.

are stated at the lower of average cost or net realizable value.

9 unchanged sentences

These deposits are carried as a separate balance sheet

component and total $ 25,539 (non-related-party) and $ 0 (related-party) as of June 30, 2025, and $ 28,803 (non-related-party) and $ 637

component and total $ 339,361 (non-related-party) and $ 0 (related-party) as of September 30, 2025, and $ 28,803 (non-related-party) and

$ 637 (related-party) as of December 31, 2024.

2 unchanged sentences

balances consisted of the following:

SCHEDULE OF INVENTORY

September 30,

Finished goods

17 unchanged sentences

Derivative liabilities are measured using level 3 inputs.

OF FINANCIAL ASSETS AND LIABILITIES CARRIED AT FAIR VALUE MEASURED ON RECURRING BASIS

Quoted prices

inputs (Level 2)

inputs (Level 3)

SCHEDULE OF FINANCIAL ASSETS AND LIABILITIES CARRIED AT FAIR VALUE MEASURED ON RECURRING BASIS

September 30,

Derivative liabilities

Quoted prices

inputs (Level 2)

inputs (Level 3)

Derivative liabilities

5 unchanged sentences

321,000,000 and 402,678,000 potentially issuable shares from the conversions of convertible debentures outstanding that were excluded

in dilutive outstanding shares for the six months ended June 30, 2025 and 2024, respectively, due to the anti-dilutive effect these

in dilutive outstanding shares for the nine months ended September 30, 2025 and 2024, respectively, due to the anti-dilutive effect these

would have on net loss per share.

24 unchanged sentences

3 — GOING CONCERN

accompanying unaudited consolidated financial statements have been prepared in conformity with US GAAP, which considers our continuation

as a going concern.

We had a working capital deficiency of $ 22,506,569 , as of June 30, 2025, and a net loss from continuing operations

of $ 632,761 for the six months ended June 30, 2025.

As of June 30, 2025, we had an accumulated deficit of $ 62,362,253 .

These conditions

raise substantial doubt about our ability to continue as a going concern.

accompanying unaudited consolidated financial statements have been prepared in conformity with US GAAP, which considers our

continuation as a going concern.

We had a working capital deficiency of $ 22,897,132 ,

as of September 30, 2025, and a net loss from continuing operations of $ 1,013,957 for

the nine months ended September 30, 2025.

As of September 30, 2025, we had an accumulated deficit of $ 62,782,131 .

These conditions raise substantial doubt about our ability to continue as a going concern.

ability to continue as a going concern is dependent upon our ability to successfully accomplish our business plan and eventually attain

20 unchanged sentences

SCHEDULE OF PROPERTY AND EQUIPMENT AND ESTIMATED SERVICE LIVES

September 30,

Furniture and office equipment

1 unchanged sentence

Property and equipment, net

recorded $ 987 and $ 2,447 of depreciation expense during the six months ended June 30, 2025 and 2024.

recorded $ 1,313

of depreciation expense during the nine months ended September 30, 2025 and 2024.

Depreciation expense in included in selling, general and administrative expenses on the Statement of Operations.

5 — RELATED PARTY TRANSACTIONS

2 unchanged sentences

There were no repayments made during the periods presented.

At June 30, 2025 and December 31, 2024, the principal amount owing

on the note was $ 151,833 and $ 151,833 , respectively.

At September 30, 2025 and December 31, 2024, the principal amount

owing on the note was $ 151,833 and $ 151,833 , respectively.

No demand for payment has been made.

4 unchanged sentences

We made no payments towards the outstanding notes during the periods presented.

The principal balance owing on the notes as of June 30,

The principal balance owing on the notes as of September

30, 2025 and December 31, 2024, was $ 72,466 and $ 72,466 , respectively.

No demand for payment has been made.

were $ 19,952 and $ 21,882 of short-term advances due to related parties as of June 30, 2025 and December 31, 2024, respectively.

of June 30, 2025 and December 31, 2024, we owed our president a total of $ 433,379 and $ 433,379 , respectively, in unsecured advances.

were $ 19,952 and $ 21,882 short-term advances due to related parties as of September 30, 2025 and December 31, 2024, respectively.

of September 30, 2025 and December 31, 2024, we owed our president a total of $ 433,379 and $ 433,379 , respectively, in unsecured advances.

The advances and short-term bridge loans were approved by our board of directors under a 5 % borrowing fee.

2 unchanged sentences

These amounts are included in our liabilities from discontinued operations.

of June 30, 2025 and December 31, 2024, the Company owes the CEO $ 7,059 for short term advances to the Company.

The advances are non-interest

bearing and due on demand.

the six months ended June 30, 2025, we had a net decrease in deposits with a related-party inventory supplier totaling $ 663,898 , resulting

in a credit balance of $ 686,350 , which is disclosed as Short-term advances payable - related parties.

The related party is an entity

controlled by our chief executive officer.

All transactions were at a 2 % markup over the related-party’s cost paid for inventory

in arm’s-length transactions.

Total inventory purchases from the related party were $ 251,394 and $ 562,290 during the six months

ended June 30, 2025 and 2024, respectively.

of September 30, 2025 and December 31, 2024, the Company owes the CEO $ 7,059 for short term advances to the Company.

The advances are

non-interest bearing and due on demand.

the nine months ended September 30, 2025, we had a net decrease in deposits with a related-party inventory supplier totaling $ 1,081,548 ,

resulting in a credit balance of $ 1,104,000 , which is disclosed as Short-term advances payable - related parties.

The related party is

an entity controlled by our chief executive officer.

All transactions were at a 2 % markup over the related-party’s cost paid for

inventory in arm’s-length transactions.

Total inventory purchases from the related party were $ 669,044 and $ 731,918 during the

nine months ended September 30, 2025 and 2024, respectively.

6 — OTHER ACCRUED LIABILITIES

3 unchanged sentences

SCHEDULE OF ACCRUED LIABILITIES

September 30,

Tax liabilities

Accrued Royalty - Globrands LLC

accrued liabilities as of June 30, 2025 and December 31, 2024, include a non-interest-bearing payable totaling $ 45,000 and $ 45,000 , respectively,

that is due on demand and customer deposits totaling $ 1,606,468 and $ 1,730,213 , respectively.

accrued liabilities as of September 30, 2025 and December 31, 2024, include a non-interest-bearing payable totaling $ 45,000 and $ 45,000 ,

respectively, that is due on demand and customer deposits totaling $ 1,728,301 and $ 1,730,213 , respectively.

payroll and compensation liabilities consist of the following:

SCHEDULE OF ACCRUED PAYROLL AND COMPENSATION LIABILITIES

September 30,

Director fees

41 unchanged sentences

as time barred debt.

The amounts of $ 5,164 and $ 5,164 were due as June 30, 2025 and December 31, 2024, respectively.

The amounts of $ 0 and $ 5,164 were due as September 30, 2025 and December 31, 2024, respectively.

engage Iehab Hawatmeh, our president and chief executive officer, through an employment agreement entered in August 2009 and amended

21 unchanged sentences

On January 1, 2020, we resumed accruing wages for our chief executive officer.

$ 148,248 and $ 74,124 was accrued during the periods ended June 30, 2025 and December 31, 2024, respectively.

$ 223,372 and $ 74,124 was accrued during the periods ended September 30, 2025 and December 31, 2024, respectively.

have entered into agreements requiring us to pay certain royalties for the manufacture and distribution of licensed products.

3 unchanged sentences

SCHEDULE OF NOTES PAYABLE

September 30,

Note payable to former service provider for past due account payable (current)

1 unchanged sentence

Small Business Administration loans

is $ 427,000 and $ 402,906 of accrued interest due on these notes as of June 30, 2025 and December 31, 2024, respectively.

is $ 436,000 and $ 402,906 of accrued interest due on these notes as of September 30, 2025 and December 31, 2024, respectively.

9 — CONVERTIBLE DEBENTURES

1 unchanged sentence

SCHEDULE OF CONVERTIBLE DEBENTURES

September 30,

Convertible debenture, 5 % stated interest rate, secured by all our assets, due on May 30, 2022

7 unchanged sentences

for the 20 trading days prior to conversion.

of June 30, 2025 and December 31, 2024, we had accrued interest on the convertible debentures totaling $ 2,116,635 and $ 2,055,232 , respectively.

of September 30, 2025 and December 31, 2024, we had accrued interest on the convertible debentures totaling $ 2,147,600 and $ 2,055,232 ,

respectively.

10 — DERIVATIVE LIABILITIES

7 unchanged sentences

We have estimated the fair value of these embedded derivatives for convertible debentures and associated warrants using a Monte Carlo

simulation as of June 30, 2025, using the following assumptions:

simulation as of September 30, 2025, using the following assumptions:

SCHEDULE OF DERIVATIVE LIABILITIES AT FAIR VALUE

5 unchanged sentences

summary of the activity of the derivative liability for these notes is as follows:

OF ACTIVITY OF THE DERIVATIVE LIABILITY

SCHEDULE OF ACTIVITY OF THE DERIVATIVE LIABILITY

Balance at December 31, 2023

2 unchanged sentences

Derivative loss due to mark to market adjustment

Balance at June 30, 2025

fair values of the derivative instruments are measured each quarter, which resulted in a gain of $ 4,384 and a loss of $ 326,259 during

the six months ended June 30, 2025 and 2024, respectively.

As of June 30, 2025 and December 31, 2024, the fair market value of the derivatives

aggregated $ 2,454,051 and $ 2,458,435 , respectively.

Balance at September 30, 2025

fair values of the derivative instruments are measured each quarter, which resulted in a loss of $ 34,552 and $ 775,157 during the nine

months ended September 30, 2025 and 2024, respectively.

As of September 30, 2025 and December 31, 2024, the fair market value of the

derivatives aggregated $ 2,492,987 and $ 2,458,435 , respectively.

11 — STOCK OPTIONS AND WARRANTS

Incentive Plans

of June 30, 2025 and 2024, we had no unrecognized compensation related to outstanding options that have not yet vested at year-end that

would be recognized in subsequent periods.

of June 30, 2025 and December 31, 2024, there were 24,000 and 32,000 options, respectively, issued and vested with a weighted average

of September 30, 2025 and 2024, we had no unrecognized compensation related to outstanding options that have not yet vested at year-end

that would be recognized in subsequent periods.

of September 30, 2025 and December 31, 2024, there were 24,000 and 32,000 options, respectively, issued and vested with a weighted average

exercise price of $ 0.01 .

Outstanding options as of June 30, 2025, consisted of:

OF STOCK OPTIONS OUTSTANDING

Outstanding options as of September 30, 2025, consisted of:

SCHEDULE OF STOCK OPTIONS OUTSTANDING

Average Remaining Life

1 unchanged sentence

Outstanding, December 31, 2024

Outstanding, June 30, 2025

Exercisable, June 30, 2025

Outstanding, September 30, 2025

Exercisable, September 30, 2025

12 — SEGMENTS

6 unchanged sentences

segments to assess the performance of the business of our reportable operating segments.

following table details revenue, operating expenses, and assets for the Company’s reportable segments for the period ended June

OF SEGMENTAL INFORMATION

following table details revenue, operating expenses, and assets for the Company’s reportable segments for the period ended September

SCHEDULE OF SEGMENTAL INFORMATION

product lines

38 unchanged sentences

product lines

on inventory - related party

current assets

Deposits on inventory

Deposits on inventory - related party

Deposits on inventory

Accounts receivable

Other current assets

Total current assets

Investment in securities at cost

Property and equipment, net of accumulated depreciation

LIABILITIES AND STOCKHOLDERS’ EQUITY

current assets

in securities at cost

and equipment, net of accumulated depreciation

AND STOCKHOLDERS’ EQUITY

for product returns and credits

advances payable

advances payable - related parties

advances payable

payroll and compensation expense

interest, current portion

debenture, current portion, net of discounts

payable, current portion

payable to stockholders

from discontinued operations

current liabilities:

Accounts payable

Cash overdraft

Liabilities for product returns and credits

Short-term advances payable

Short-term advances payable - related parties

Short-term advances payable

Accrued liabilities

Accrued payroll and compensation expense

Accrued interest, current portion

Convertible debenture, current portion, net of discounts

Note payable, current portion

Note payable to stockholders

Derivative liability

Liabilities from discontinued operations

Total current liabilities:

Note payable, net of current portion

Convertible debenture, net of current portion, net of discount

Total liabilities

payable, net of current portion

debenture, net of current portion, net of discount

Stockholders’

paid-in capital

stockholders’ equity

Additional paid-in capital

Accumulated deficit

( 5,452,146 )

( 56,191,921 )

( 61,644,067 )

Total stockholders’ equity

( 5,452,146 )

( 18,953,415 )

( 24,405,561 )

Total liabilities and stockholders’ deficit

following table details revenue, operating expenses, and assets for the Company’s reportable segments for the six months ended

June 30, 2025.

liabilities and stockholders’ deficit

following table details revenue, operating expenses, and assets for the Company’s reportable segments for the nine months ended

September 30, 2025.

product lines

9 unchanged sentences

Gain on derivative valuation

Income tax refund

Loss on disposal

Total other expense

Net loss from continuing operations

( 1,023,280 )

Loss from discontinued operations

5 unchanged sentences

The assets and liabilities associated with this business

are displayed as assets and liabilities from discontinued operations as of June 30, 2025 and December 31, 2024.

Additionally, the revenues

and costs associated with this business are displayed as losses from discontinued operations.

are displayed as assets and liabilities from discontinued operations as of September 30, 2025 and December 31, 2024.

Additionally, the

revenues and costs associated with this business are displayed as losses from discontinued operations.

assets and liabilities included in discontinued operations were as follows:

OF DISCONTINUED OPERATIONS

June 30, 2025

December 31, 2024

SCHEDULE OF DISCONTINUED OPERATIONS

September 30,

Assets from Discontinued Operations:

8 unchanged sentences

Total liabilities from discontinued operations

loss from discontinued operations for the six months ended June 30, 2025 and 2024, were comprised of the following components:

Six Months ended June 30,

loss from discontinued operations for the nine months ended September 30, 2025 and 2024, were comprised of the following components:

Nine Months ended September 30,

Other expense:

Interest expense

$ ( 114,784 )

$ ( 115,204 )

Net loss from discontinued operations

$ ( 114,784 )

14 — SUBSEQUENT EVENTS

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 1. Financial Statements