What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2024-09-20 compared with 2024-06-27 · 87 added, 73 removed, 173 unchanged (48% of the section changed)

16 unchanged sentences

and maintenance reduction product and services market.

On May 16, 2023, the Company began accepting subscription

agreements from investors as part of an offering under Regulation A.

This offering concluded automatically on May 5, 2024.

period, the Company issued 2,457,461 shares of common stock under the Regulation A offering.

Hydrogen Project Agreement

On September 13, 2024, HNO International, Inc.

formalized a Hydrogen Purchase and Sale Agreement with a leader in zero-emission transportation.

This agreement will see HNO International constructing and operating a hydrogen electrolysis plant and refueling station in Katy, Texas,

producing 0.5 metric tons of high-purity gaseous hydrogen daily.

The hydrogen will be used for refueling Class 8 fuel cell electric trucks,

promoting cleaner transportation options.

The initial three-year agreement, with the potential for extension, underscores HNO's commitment

to advancing hydrogen as a sustainable fuel alternative.

Results of Operations

For the three months ended April 30, 2024 and

For the three months ended July 31, 2024 and

For the three months ended

April 30, 2024, we generated no revenue, consistent with no revenue for the three months ended April 30, 2023.

July 31, 2024, we generated $4,241 in revenue, compared to no revenue for the three months ended July 31, 2023.

Revenue was recognized

from hydrogen engineering services and combustion solutions.

Operating Expenses

Operating expenses for the three months ended April

Operating expenses for the three months ended July

31, 2024, were $490,250 compared to $453,575 for the same period in 2023.

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to expand operations, which resulted in increased costs related to contract labor and general and administrative expenses.

As 2024 progressed,

we experienced a significant increase in hiring contract labor to support our Research and Development program.

We also expanded our staff

to support increased sales and marketing efforts.

Net loss for the three months ended April 30, 2024,

We also expanded

our staff to support increased sales and marketing efforts.

Net loss for the three months ended July 31, 2024,

was $496,621 compared to a net loss of $459,806 during the same period in 2023.

1 unchanged sentence

General and Administrative, and Contract Labor expenses

were $279,239 for the three months ended April 30, 2024, as compared to $196,935 during the same period in 2023.

were $430,693 for the three months ended July 31, 2024, as compared to $437,472 during the same period in 2023.

Operating expenses changed

due to the Company’s efforts to expand operations, resulting in increased costs related to contract labor and general and administrative

For the six months ended April 30, 2024 and

For the six months ended

April 30, 2024, we generated no revenue compared to $13,000 for the six months ended April 30, 2023.

Revenue generated was from hydrogen

engineering services and combustion solutions.

For the nine months ended July 31, 2024 and

For the nine months ended

July 31, 2024, was $4,241 compared to $13,000 for the nine months ended July 31, 2023.

Revenue generated was from hydrogen engineering

services and combustion solutions.

Operating Expenses

Operating expenses for the six months ended

April 30, 2024, were $1,092,389 compared to $509,340 for the same period in 2023.

This is attributable to the Company’s

efforts to expand operations, which resulted in increased costs related to contract labor and general and administrative expenses.

As 2043 progressed, we experienced a significant increase in hiring contract labor to support our Research and Development program.

We also expanded our staff to support increased sales and marketing efforts.

Net loss for the six months ended April 30, 2023,

Operating expenses for the nine months ended July

31, 2024, were $1,569,846 compared to $950,532 for the same period in 2023.

This is attributable to the Company’s efforts to expand

operations, which resulted in increased costs related to contract labor and general and administrative expenses.

As 2024 progressed, we

experienced a significant increase in hiring contract labor to support our Research and Development program.

We also expanded our staff

to support increased sales and marketing efforts.

Net loss for the nine months ended July 31, 2024,

was $1,584,438 compared to a net loss of $962,028 during the same period in 2023.

1 unchanged sentence

General and Administrative, and Contract Labor expenses

were $502,282 for the six months ended April 30, 2024, as compared to $301,387 during the same period in 2023.

were $1,440,197 for the nine months ended July 31, 2024, as compared to $927,082 during the same period in 2023.

Operating expenses changed

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Liquidity and Capital Resources

a net loss for the three months ended April 30, 2024 and had an accumulated deficit of $42,697,762 at April 30, 2024.

At April 30, 2024,

a net loss for the three months ended July 31, 2024 of $496,621 and had an accumulated deficit of $43,194,383 at July 31, 2024.

31, 2024, we had a cash balance of $78,917, compared to a cash balance of $235,159 at October 31, 2023.

At April 30, 2024, the working capital deficit

was $1,637,583, compared to a working capital deficit of $553,284 at October 31, 2023.

Our existing and available capital resources are

not expected to be sufficient to satisfy our funding requirements through one year from the date of this filing in the absence of share

issuances or other sources of financing.

At July 31, 2024, the working

capital deficit was $1,649,621, compared to a working capital deficit of $553,284 at October 31, 2023.

Our existing and available capital

resources are not expected to be sufficient to satisfy our funding requirements through one year from the date of this filing in the absence

of share issuances or other sources of financing.

been able to generate sufficient cash from operating activities to fund our ongoing operations.

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and the results of operations.

For the Six Months Ended April 30, 2024 and 2023

For the Nine Months Ended July 31, 2024 and 2023

The following table summarizes our cash flows for

the periods indicated below:

For the Six Months Ended April 30,

For the Nine Months Ended July 31,

Cash Used in Operating Activities

$ (1,380,178 )

Cash Provided by Financing Activities

1 unchanged sentence

Cash Used in Operating Activities

During the six months ended

April 30, 2024, cash used in operating activities was $(951,373), primarily reflecting our net losses for the period, adjusted by non-cash

charges such as depreciation and amortization, as well as changes in our working capital accounts.

These changes mainly consisted of an

increase in accrued interest payable, payroll taxes, and accounts payable, a decrease in the security deposit, and the settlement of a

receivable from HNO Hydrogen Generators.

The receivable, totaling $56,392, was fully settled through a transfer of equipment in connection

with a settlement agreement effective April 15, 2024.

The settlement agreement involved the transfer of large equipment valued at $32,327

and small equipment valued at $24,065.

During the six months ended April 30, 2023, cash used

in operating activities was $(483,467), primarily reflecting our net losses for the period, adjusted by non-cash charges of share-based

compensation, as well as changes in our working capital accounts.

These changes mainly consisted of an increase in accrued interest payable,

and a decrease in the security deposit.

Cash Provided by Financing Activities

During the six months ended

April 30, 2024, cash provided by financing activities was $1,069,735, which consisted of proceeds from related party advances of $710,585,

proceeds from the sale of common stock subscription payable of $47,249, and proceeds from the sale of common stock of $211,901.

During the six months ended April 30, 2023, cash provided

by financing activities was $621,300, which consisted of proceeds from related party advances of $230,000 and proceeds from the sale of

common stock of $384,500.

During the nine months ended July 31, 2024, cash used

in operating activities was $(1,380,178), primarily reflecting our net losses for the period, adjusted by non-cash charges such as depreciation

and amortization, as well as changes in our working capital accounts.

These changes mainly consisted of an increase in accrued interest

payable, payroll taxes, and accounts payable, a decrease in the security deposit, and the settlement of a receivable from HNO Hydrogen

The receivable, totaling $56,392, was fully settled through a transfer of equipment in connection with a settlement agreement

effective April 15, 2024.

The settlement agreement involved the transfer of large equipment valued at $32,327 and small equipment valued

During the nine months ended July 31, 2023, cash used

in operating activities was $(904,365), primarily reflecting our net losses for the period, adjusted by non-cash charges of depreciation

and amortization, as well as an increase in accrued interest payable and payroll taxes.

Cash Used in Financing Activities

During the nine months ended

July 31, 2024, cash provided by financing activities was $1,592,612, which consisted of proceeds from related party advances of $800,585,

proceeds from the sale of common stock and proceeds from the sale of common stock of $706,429.

During the nine months ended July 31, 2023, cash provided

by financing activities was $2,505,832, which consisted of proceeds from related party notes payable of $235,000 and proceeds from the

sale of common stock of $2,264,032.

Cash Provided by Investing Activities

During the six months ended

April 30, 2024, cash used in investing activities was $(276,062), which consisted of the purchase of property and equipment and long-term

During the six months ended April 30, 2023, cash used

During the nine months ended

July 31, 2024, cash used in investing activities was $(368,676), which consisted of the purchase of property and equipment and long-term

During the nine months ended July 31, 2023, cash used

in investing activities was $(425,880), which consisted of the purchase of plant and equipment.

3 unchanged sentences

in the normal course of business.

During the six months ended April 30, 2024, the Company incurred a net loss of $1,087,817 and used cash

in operating activities of $951,373, and on April 30, 2024, had stockholders’ deficit of $920,868.

During the nine months ended July 31, 2024, the Company incurred a net loss of $1,584,438 and used cash

in operating activities of $1,380,178, and on July 31, 2024, had stockholders’ deficit of $984,711.

These factors, among others,

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that might result from this uncertainty.

Management is actively seeking additional sources

of capital through the sale of equity, advances from related parties, and exploring strategic partnerships.

The Company is also focused

on attracting suitable investors to support its business plan without relying heavily on existing cash reserves.

Additionally, management

is implementing cost-saving measures and exploring opportunities to diversify through acquisitions or entering into new markets.

there can be no assurance that these efforts will result in sufficient funding, and the Company may continue to face substantial uncertainty

regarding its ability to achieve profitable operations and sustain its business.

Off-Balance Sheet Arrangements

73 unchanged sentences

RECENT ACCOUNTING PRONOUNCEMENTS

In August 2020, the FASB issued ASU 2020-06, Debt— Debt

with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic

This update amends the guidance on convertible instruments and the derivatives scope exception for contracts in an entity's

own equity and improves and amends the related EPS guidance for both Subtopics.

This standard is effective for fiscal years and interim

periods within those fiscal years beginning after December 15, 2023, which means it will be effective for our fiscal year beginning October

Early adoption is permitted but no earlier than fiscal years beginning after December 15, 2020, including interim periods within

those fiscal years.

We are currently evaluating the impact of ASU 2020-06 on our financial statements.

In August 2020, the FASB issued ASU 2020-06,

Debt— Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s

Own Equity (Subtopic 815-40).

This update amends the guidance on convertible instruments and the derivatives scope exception for

contracts in an entity's own equity and improves and amends the related EPS guidance for both Subtopics.

This standard is effective

for fiscal years and interim periods within those fiscal years beginning after December 15, 2023, which means it will be effective

for our fiscal year beginning October 31, 2024.

Early adoption is permitted but no earlier than fiscal years beginning after

December 15, 2020, including interim periods within those fiscal years.

We are currently evaluating the impact of ASU 2020-06 on our

financial statements.

Other recent accounting pronouncements issued by the

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OUTSTANDING SHARE DATA

As of April 30, 2024, the following securities were

As of July 31, 2024, the following securities were

Common stock:

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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