What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-19 compared with 2025-05-20 · 43 added, 25 removed, 54 unchanged (56% 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 March 31, 2025, Compared to the Three Months Ended March 31, 2024

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

and Cost of Sales

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%.

the three months ended June 30, 2025 and 2024, we had net sales of $168,435 and $390,491, respectively, a decrease of $222,056 or 56.9%.

We had cost of sales of $83,493 and $168,564, respectively, and gross profit of $84,942 and $221,927, respectively.

2 unchanged sentences

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 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

the three months ended June 30, 2025 and 2024, employee costs were $122,546 and $125,673 respectively, a decrease of only $3,127 or 2.5%.

the three months ended June 30, 2025 and 2024, selling, general, and administrative expenses (“S,G&A”) were $155,654

and $190,548, respectively, a decrease of $34,894 or 18.3%.

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.

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 June 30, 2025 was $331,231 compared to $263,553 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

we had $203,387 of interest expense, a loss of $127,850 on derivative valuation and other income of $6.

In the prior period we had $185,748

of interest expense and a loss of $77,805 on derivative valuation.

net loss from continuing operations for the three months ended June 30, 2025, was $524,489 compared to $357,847 for the three months

ended June 30, 2024, an increase to our net loss of $166,642.

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

of Operations for the Six Months Ended June 30, 2025, Compared to the Six Months Ended June 30, 2024

and Cost of Sales

the six months ended June 30, 2025 and 2024, we had net sales of $629,251 and $819,882, respectively, a decrease of $190,631 or 23.3%.

We had cost of sales of $274,015 and $326,461, respectively, and gross profit of $355,236 and $493,421, respectively.

Revenues are derived

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

We had lower revenue in the current period due to slower shelf depletion.

the six months ended June 30, 2025 and 2024, employee costs were $251,454 and $250,902 respectively, an increase of only $552 or 0.2%.

the six months ended June 30, 2025 and 2024, selling, S,G&A expenses were $340,313 and $383,234, respectively, a decrease of $42,921

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

other expense during the six months ended June 30, 2025 was $396,230 compared to $696,959 for the prior period.

In the current period

we had $405,761 of interest expense, a gain of $4,384 on derivative valuation, a gain on forgiveness of debt of $5,141 and other income

In the prior period we had $370,700 of interest expense and a loss of $326,259 on derivative valuation.

net loss from continuing operations for the six months ended June 30, 2025, was $632,767 compared to $837,674 for the six months ended

June 30, 2024, a decrease to our net loss of $204,907.

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

and Capital Resources

1 unchanged sentence

Our accumulated deficit was approximately

$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.

$62.4 million at June 30, 2025.

As of June 30, 2025, we had current assets of $1.4 million and current liabilities of approximately $24

million, resulting in a working capital deficit of approximately $22.6 million at June 30, 2025.

the six months ended June 30, 2025, operations used $627,088 of net cash, comprised of a loss of $718,186, noncash items totaling $119,529

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 $28,431.

During the six months ended June 30, 2024, operations provided $11,682 of net cash, comprised

of a loss of $914,197, noncash items totaling $454,460 consisting primarily of losses recognized from the changes in fair values of derivative

liabilities and debt discount amortization, and changes in working capital totaling $471,419.

the six months ended June 30, 2025, financing activities provided $631,423 of cash, compared to using $11,682 of cash during the six

months ended June 30, 2024.

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 March 31, 2025.

balance of $2.4 million, with accrued interest of $2 million as of June 30, 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 March 31, 2025, there is $21,882 of short-term advances due to related parties.

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

The advances are due on demand and included in current

10 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