What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-05-20 compared with 2025-11-20 · 31 added, 50 removed, 51 unchanged (61% of the section changed)

11 unchanged sentences

and sell condoms, electronic tobacco products, cigars, energy drinks, water beverages, and related merchandise, all using the HUSTLER®

of Operations for the Three Months Ended September 30, 2025, Compared to the Three Months Ended September 30, 2024

and Cost of Sales

the three months ended September 30, 2025 and 2024, we had net sales of $448,492 and $256,070, respectively, an increase of $192,422

We had cost of sales of $270,666 and $130,072, respectively, and gross profit of $177,826 and $125,998, respectively.

are derived from the design, manufacture, and delivery of certain licensed products in accordance with our GloBrands-HUSTLER® distribution

We had higher revenue in the current period due to higher sales in our vapor product line where sales picked up in the last

three months ended September 30, 2025.

the three months ended September 30, 2025 and 2024, employee costs were $142,869 and $129,743 respectively, an increase of $13,126 or

the three months ended September 30, 2025 and 2024, selling, general, and administrative expenses (“S,G&A”) were $201,461

and $218,480, respectively, a decrease of $17,019 or 7.8%.

The decrease in S,G&A expenses period over period was the result of a

reduction in spending on marketing and promotions.

other expense during the three months ended September 30, 2025 was $239,704 compared to $639,047 the prior period.

In the current

period we had $206,458 of interest expense, a loss of $38,936 on derivative valuation and a gain on forgiveness of debt of $5,690.

In the prior period we had $190,399 of interest expense, a loss of $448,898 on derivative

valuation and other income of $250.

net loss from continuing operations for the three months ended September 30, 2025, was $406,208 compared to $861,272 for the three months

ended September 30, 2024, a decrease to our net loss of $455,064.

Our net loss decreased in the current period due to the reasons discussed

of Operations for the Nine Months Ended September 30, 2025, Compared to the Nine Months Ended September 30, 2024

of Operations for the Three Months Ended March 31, 2026, Compared to the Three Months Ended March 31, 2025

and Cost of Sales

the nine months ended September 30, 2025 and 2024, we had net sales of $1,077,743 and $1,075,952, respectively, an increase of only $1,791

the three months ended March 31, 2026 and 2025, we had net sales of $1,161,353 and $460,816, respectively, an increase of $700,537 or

We had cost of sales of $697,971 and $190,522, respectively, and gross profit of $463,382 and $270,294, respectively.

are derived from the design, manufacture, and delivery of certain licensed products in accordance with our GloBrands-HUSTLER® distribution

We had higher revenue in the current period due to higher sales in our vapor product line where sales picked up in the last three months ended September 30, 2025.

the nine months ended September 30, 2025 and 2024, employee costs were $394,323 and $380,645 respectively, an increase of $13,678 or

the nine months ended September 30, 2025 and 2024, selling, S,G&A expenses were $541,774 and $601,714, respectively, a decrease

of $59,940 or 10%.

The decrease in S,G&A expense period over period was the result of a reduction in spending on marketing

and promotions.

other expense during the nine months ended September 30, 2025 was $645,257 compared to $1,336,006 for the prior period.

current period we had $612,219 of interest expense, a loss of $34,552 on derivative valuation, a gain on forgiveness of debt of

$10,831 and other income of $6.

In the prior period we had $561,099 of interest expense, a loss

of $775,157 on derivative valuation and other income of $250.

net loss from continuing operations for the nine months ended September 30, 2025, was $1,048,292 compared to $1,698,946 for the nine

months ended September 30, 2024, a decrease to our net loss of $650,654.

Our net loss decreased in the current period due to the reasons

discussed above.

We had higher revenue in the current period due to increase demand for our vaper products.

the three months ended March 31, 2026 and 2025, employee costs were $130,020 and $128,908 respectively, an increase of only $1,112 or

the three months ended March 31, 2026 and 2025, selling, general, and administrative expenses (“S,G&A”) were $297,240

and $184,659, respectively, an increase of $112,581 or 61%.

The increase in S,G&A expenses period over period was the result of increased

promotional activities to support higher sales.

other expense during the three months ended March 31, 2026 was $101,859 compared to $64,999 the prior period.

In the current period we

had $211,806 of interest expense, a gain of $104,436 on derivative valuation and a gain on forgiveness of debt of $5,511.

period we had $202,374 of interest expense, a gain of $132,234 on derivative valuation and a gain on forgiveness of debt of $5,141.

net loss from continuing operations for the three months ended March 31, 2026, was $65,737 compared to $108,272 for the three months

ended March 31, 2025, a decrease to our net loss from continuing operations of $42,535.

Our net loss decreased in the current period

due to the reasons discussed above.

the three months ended March 31, 2026, we recognized a gain from discontinued operations of $2,286,438 due to the extinguishment of time

barred debt $2,324,279 and $37,841 of interest expense.

the three months ended March 31, 2025, we recognized a loss from discontinued operations of $37,841 due to interest expense.

and Capital Resources

1 unchanged sentence

Our accumulated deficit was approximately

$62.8 million at September 30, 2025.

As of September 30, 2025, we had current assets of $1.6 million and current liabilities of approximately

$24.5 million, resulting in a working capital deficit of approximately $22.9 million at September 30, 2025.

the nine months ended September 30, 2025, operations used $1,031,790 of net cash, comprised of a loss of $1,138,064, noncash items totaling

$60.1 million at March 31, 2026.

As of March 31, 2026, we had current assets of $2.3 million and current liabilities of approximately

$22.5 million, resulting in a working capital deficit of approximately $20.2 million at March 31, 2026.

the three months ended March 31, 2026, operations used $59,108 of net cash, comprised of net income of $2,220,701, noncash items totaling

$82,511 consisting primarily of a gain recognized from the changes in fair values of derivative liabilities and debt discount amortization,

and changes in working capital totaling $89,140.

During the nine months ended September 30, 2024, operations used $8,434 of net cash,

comprised of a loss of $1,814,150, noncash items totaling $967,890 consisting primarily of losses recognized from the changes in fair

values of derivative liabilities and debt discount amortization, and changes in working capital totaling $837,826.

the nine months ended September 30, 2025, financing activities provided $1,051,064 of cash, compared to $8,434 of cash provided

during the nine months ended September 30, 2024.

During the three months ended March 31, 2025, operations used $468,328 of net cash,

comprised of a loss of $155,436, noncash items totaling $73,351 consisting primarily of a gain recognized from the changes in fair values

of derivative liabilities and debt discount amortization, and changes in working capital totaling $239,541.

the three months ended March 31, 2026, financing activities provided $60,855 of cash, compared to $469,538 of cash provided during the

three months ended March 31, 2025.

Cash provided in financing consisted mostly of related party loans.

15 unchanged sentences

The amended debenture had a total outstanding principal

balance of $2.4 million, with accrued interest of $2 million as of September 30, 2025.

balance of $2.4 million, with accrued interest of $2 million as of March 31, 2026.

We also have four additional convertible debentures

2 unchanged sentences

on the instrument) or the lowest bid price for the 20 trading days prior to conversion.

of September 30, 2025, there is $21,882 of short-term advances due to related parties.

The advances are due on demand and included in

current liabilities.

of March 31, 2026 and December 31, 2025, there is $21,882 and $21,882 of short-term advances due to related parties , respectively.

The advances are due on demand and included in current liabilities.

No demand for payment has been made.

9 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