What changed in this filing

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Item 1. Financial Statements

2025-08-19 compared with 2025-05-20 · 76 added, 63 removed, 572 unchanged (20% of the section changed)

1 unchanged sentence

CONSOLIDATED BALANCE SHEETS

December 31, 2024

Current assets:

42 unchanged sentences

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Months Ended

Three Months Ended June 30,

Six Months Ended June 30,

Cost of sales

13 unchanged sentences

$ ( 562,750 )

$ ( 396,109 )

$ ( 718,186 )

$ ( 914,197 )

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

4 unchanged sentences

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024

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

stockholders’

5 unchanged sentences

( 24,560,997 )

stockholders’

Balance, June 30, 2025

$ ( 62,362,253 )

$ ( 25,123,747 )

Balance, December 31, 2023

1 unchanged sentence

$ ( 21,778,685 )

Balance, March 31, 2024

( 59,535,279 )

( 22,296,773 )

( 59,535,279 )

( 22,296,773 )

Net income (loss)

Balance, March 31, 2024

Balance, June 30, 2024

$ ( 59,931,388 )

4 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Three Months Ended

For the Six Months Ended June 30,

Cash flows from operating activities

56 unchanged sentences

In the opinion of our management, all adjustments, including

normal recurring adjustments necessary to present fairly our financial position, as of March 31, 2025, and the results of our operations

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

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.

The results of operations for the interim period are not necessarily

21 unchanged sentences

There were no cash

equivalents as of March 31, 2025 and December 31, 2024.

equivalents as of June 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 three months ended March 31, 2025 and 2024, we recognized revenue of $ 20,408

and $ 19,515 , respectively, related to the performance obligations under product development service agreements with customers.

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.

recognized impairment losses related to the receivables from these contracts during the three months ended March 31, 2025 and

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.

Additionally,

we recognized revenues of $ 440,408 and $ 409,876 during the three months ended March 31, 2025 and 2024, respectively, related to the delivery

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.

9 unchanged sentences

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

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

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

in Securities

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

at March 31, 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.

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.

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 $ 27,408 (non-related-party) and $ 0 (related-party) as of March 31, 2025, and $ 28,803 (non-related-party) and $ 637

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

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

26 unchanged sentences

Derivative liabilities

Quoted prices

inputs (Level 2)

inputs (Level 3)

Derivative liabilities

loss per share is calculated by dividing net loss available to common shareholders by the weighted-average number of common shares outstanding

4 unchanged sentences

479,283,300 and 462,334,000 potentially issuable shares from the conversions of convertible debentures outstanding that were excluded

in dilutive outstanding shares for the three months ended March 31, 2025 and 2024, respectively, due to the anti-dilutive effect these

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

would have on net loss per share.

26 unchanged sentences

as a going concern.

We had a working capital deficiency of $ 21,968,497 , as of March 31, 2025, and a net loss from continuing operations

of $ 108,272 for the three months ended March 31, 2025.

As of March 31, 2025, we had an accumulated deficit of $ 61,799,503 .

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

25 unchanged sentences

Property and equipment, net

recorded $ 501 and $ 1,228 of depreciation expense during the three months ended March 31, 2025 and 2024.

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

5 — RELATED PARTY TRANSACTIONS

2 unchanged sentences

There were no repayments made during the periods presented.

At March 31, 2025 and December 31, 2024, the principal amount owing

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

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

5 unchanged sentences

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

The principal balance owing on the notes as of March

The principal balance owing on the notes as of June 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 March 31, 2025 and December 31, 2024, respectively.

of March 31, 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 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.

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

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 three months ended March 31, 2025, we had a net decrease in deposits with a related-party inventory supplier totaling $ 450,558 , resulting

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.

3 unchanged sentences

in arm’s-length transactions.

Total inventory purchases from the related party were $ 231,151 and $ 251,788 during the three months

ended March 31, 2025 and 2024, respectively.

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

ended June 30, 2025 and 2024, respectively.

6 — OTHER ACCRUED LIABILITIES

5 unchanged sentences

Accrued Royalty - Globrands LLC

accrued liabilities as of March 31, 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 $ 1,634,537 and $ 1,730,213 , respectively.

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.

payroll and compensation liabilities consist of the following:

SCHEDULE OF ACCRUED PAYROLL AND COMPENSATION LIABILITIES

December 31, 2024

Director fees

41 unchanged sentences

as time barred debt.

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

The amounts of $ 5,164 and $ 5,164 were due as June 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.

$ 74,124 and $ 74,124 was accrued during the periods ended March 31, 2025 and December 31, 2024, respectively.

$ 148,248 and $ 74,124 was accrued during the periods ended June 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.

6 unchanged sentences

Small Business Administration loans

is $ 413,830 and $ 402,906 of accrued interest due on these notes as of March 31, 2025 and December 31, 2024, respectively.

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

9 — CONVERTIBLE DEBENTURES

6 unchanged sentences

Convertible debenture, 5 % stated interest rate, secured by all our assets, due on April 30, 2027

Debt carrying amount

current portion

2 unchanged sentences

for the 20 trading days prior to conversion.

of March 31, 2025 and December 31, 2024, we had accrued interest on the convertible debentures totaling $ 2,085,471 and $ 2,055,232 , respectively.

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.

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 March 31, 2025, using the following assumptions:

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

SCHEDULE OF DERIVATIVE LIABILITIES AT FAIR VALUE

10 unchanged sentences

Derivative loss due to mark to market adjustment

Balance at March 31, 2025

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 three months ended March 31, 2025 and 2024, respectively.

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

derivatives aggregated $ 2,326,201 and $ 2,458,435 , respectively.

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.

11 — STOCK OPTIONS AND WARRANTS

Incentive Plans

of March 31, 2025 and 2024, we had no unrecognized compensation related to outstanding options that have not yet vested at year-end that

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

of June 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 March 31, 2025, consisted of:

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

OF STOCK OPTIONS OUTSTANDING

2 unchanged sentences

Outstanding, December 31, 2024

Outstanding, March 31, 2025

Exercisable, March 31, 2025

Outstanding, June 30, 2025

Exercisable, June 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 March

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

OF SEGMENTAL INFORMATION

79 unchanged sentences

Total liabilities and stockholders’ deficit

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

March 31, 2025.

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

June 30, 2025.

product lines

14 unchanged sentences

$ ( 473,678 )

$ ( 718,186 )

13 — DISCONTINUED OPERATIONS

1 unchanged sentence

The assets and liabilities associated with this business

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

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

Additionally, the revenues

2 unchanged sentences

OF DISCONTINUED OPERATIONS

March 31, 2025

June 30, 2025

December 31, 2024

9 unchanged sentences

Total liabilities from discontinued operations

loss from discontinued operations for the three months ended March 31, 2025 and 2024, were comprised of the following components:

Three Months ended March 31,

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,

Other expense:

6 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