What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-05-20 compared with 2024-11-14 · 30 added, 53 removed, 49 unchanged (63% 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, 2024, Compared to the Three Months Ended September 30, 2023

of Operations for the Three Months Ended March 31, 2025, Compared to the Three Months Ended March 31, 2024

and Cost of Sales

the three months ended September 30, 2024 and 2023, we had net sales of $256,070 and $766,512, respectively, a decrease of $510,422 or

the three months ended March 31, 2025 and 2024, we had net sales of $460,816 and $429,391, respectively, an increase of $31,425 or 7.3%.

We had cost of sales of $190,522 and $157,897, respectively, and gross profit of $270,294 and $271,494, respectively.

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

Revenues are derived

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

We had higher revenue in the prior period due to additional income from the licensing of novelties in an international territory.

the three months ended September 30, 2024 and 2023, employee costs were $129,743 and $149,100 respectively, a decrease of $19,357 or

Employee costs decreased in the current period due to efficiencies based on the current business level.

the three months ended September 30, 2024 and 2023, selling, general, and administrative expenses (“S,G&A”) were $218,480

the three months ended March 31, 2025 and 2024, employee costs were $128,908 and $125,229 respectively, an increase of only $3,679 or

the three months ended March 31, 2025 and 2024, selling, general, and administrative expenses (“S,G&A”) were $184,659

and $192,686, respectively, a decrease of $8,027 or 4.2%.

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

a reduction in spending on marketing.

other expense during the three months ended September 30, 2024 was $639,047 compared to $167,222 for the prior period.

In the current

period we had $190,399 of interest expense and a loss of $448,898 on derivative valuation.

We also had other income of $250.

period we had $192,487 of interest expense and a gain of $25,265 on derivative valuation.

net loss from continuing operations for the three months ended September 30, 2024, was $861,272 compared to $167,073 for the three months

ended September 30, 2023, an increase to our net loss of $694,199.

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

of Operations for the Nine Months Ended September 30, 2024, Compared to the Nine Months Ended September 30, 2023

and Cost of Sales

the nine months ended September 30, 2024 and 2023, we had net sales of $1,075,952 and $1,438,432, respectively, a decrease of $362,480

We had cost of sales of $456,533 and $467,811, respectively, for gross profit of $619,419 and $970,621, 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 prior period due to additional income from the licensing of novelties in an international territory.

the nine months ended September 30, 2024 and 2023, employee costs were $380,645 and $422,902 respectively, a decrease of $42,257 or 10%.

Employee costs decreased in the current period due to efficiencies based on the current business level.

the nine months ended September 30, 2024 and 2023, S,G&A costs were $601,714 and $794,362, respectively, a decrease of $192,648 or

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

other expense during the nine months ended September 30, 2024 was $1,336,006 compared to $567,660 for the prior period.

In the current

period we had $561,099 of interest expense and a loss of $775,157 on derivative valuation.

We also had other income of $250.

period we had $562,546 of interest expense, a loss of $19,238 on derivative valuation, a gain on forgiveness of debt of $13,000 and other

income of $1,124.

net loss from continuing operations for the nine months ended September 30, 2024, was $1,698,946 compared to $814,303 for the nine months

ended September 30, 2023, an increase to our net loss of $884,643 Our net loss increased in the current period due to the reasons discussed

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

in spending on marketing.

other expense during the three months ended March 31, 2025 was $64,999 compared to $433,406 for the prior period.

In the current period

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

prior period we had $184,952 of interest expense and a loss of $248,454 on derivative valuation.

net loss from continuing operations for the three months ended March 31, 2025, was $108,272 compared to $479,827 for the three months

ended March 31, 2024, a decrease to our net loss of $371,555.

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

and Capital Resources

1 unchanged sentence

Our accumulated deficit was approximately

$60.8 million at September 30, 2024.

As of September 30, 2024, we had current assets of $2 million and current liabilities of approximately

$23 million, resulting in a working capital deficit of approximately $21 million at September 30, 2024.

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.

During the nine months ended September 30, 2023, operations provided $33,008 of net

cash, comprised of a loss of $929,087, noncash items totaling $195,833 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.

were no investing activities during the nine months ended September 30, 2024.

During the nine months ended September 30, 2023, we used

$8,414 for investing activities for the purchase of equipment.

the nine months ended September 30, 2024, financing activities provided $8,434 of cash, compared to using $19,273 of cash during the

nine months ended September 30, 2023.

Cash used in financing consisted of repayments of loans.

$61.8 million at March 31, 2025.

As of March 31, 2025, we had current assets of $1.5 million and current liabilities of approximately

$23 million, resulting in a working capital deficit of approximately $22 million at March 31, 2025.

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.

During the three months ended March 31, 2024, operations provided $15,087 of net cash, comprised of a loss of $518,088, noncash items

totaling $312,138 consisting primarily of losses recognized from the changes in fair values of derivative liabilities and debt discount

amortization, and changes in working capital totaling $221,037.

the three months ended March 31, 2025, financing activities provided $469,538 of cash, compared to using $12,091 of cash during the three

months ended March 31, 2024.

Cash provided in financing consisted mostly of related party loans.

Capital Resources and Anticipated Requirements

14 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, 2024.

balance of $2.4 million, with accrued interest of $2 million as of March 31, 2025.

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, 2024, 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, 2025, there is $21,882 of short-term advances due to related parties.

The advances are due on demand and included in current

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