What changed in this filing

/stocks — the workspaceLOADING

Item 7. Management’s Discussion and Analysis

2025-03-20 compared with 2024-01-29 · 51 added, 46 removed, 87 unchanged (53% of the section changed)

12 unchanged sentences

and product development to generate green hydrogen-based clean energy solutions to help businesses and communities decarbonize in the

HNO stands for Hydrogen and Oxygen and our experienced

management team has over 13 years of expertise in the green hydrogen production industry.

HNO stands for “Hydrogen” and “Oxygen”

and our experienced management team has over 14 years of expertise in the green hydrogen production industry.

We provide green hydrogen systems engineering design,

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reduction product and services market.

On May 16, 2023, we began accepting subscription agreements

from investors as part of a $75 million offering under Regulation A.

During the year ended October 31, 2023, we issued 2,026,532 shares

of common stock under our Regulation A offering.

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.

During this period, the Company issued 2,459,961 shares of common stock under the Regulation A offering.

Results of Operations

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the year ended October 31, 2024, our cost of goods sold was $3,688, resulting in a gross profit of $553.

In comparison, for the year

ended October 31, 2022, our cost of goods sold were $27,692, resulting in a gross profit of $6,758.

The cost of goods sold were expenses

made to contract labor in association with revenue generation.

In comparison, for the year ended

October 31, 2023, our cost of goods sold was $5,885, resulting in a gross profit of $7,115.

The cost of goods sold consisted of expenses

related to contract labor associated with revenue generation.

Operating Expenses - Operating expenses for

the year ended October 31, 2024, were $2,208,701 compared to $1,910,168 for the same period in 2023.

This is attributable to our efforts

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

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

We also expanded our staff to support

increased sales and marketing efforts.

This increase of $298,533 is attributable

to our expanded operations, which resulted in increased costs related to general and administrative expenses, as well as higher depreciation

and amortization expenses.

Notably, advertising and marketing expenses increased to $7,408 in 2024 from $3,000 in 2023.

Net Loss - Net loss for the year ended October

31, 2024, was $2,230,222 compared to a net loss of $1,927,494 during the same period in 2023.

This increase in net loss is primarily due

to the significant rise in operating expenses during the year, as well as the decline in revenues.

Forward-Looking Considerations

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Our cash balance of $20,255 as of October 31, 2024,

combined with the profits from our operations, is not sufficient to maintain operations.

combined with the current level of revenues, is insufficient to maintain operations.

Therefore, we will need to raise additional funds

in the near future to support our operations and growth plans.

Our cash balance on October 31, 2022, was $51,109 for a difference of $184,050.

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

We have raised capital through sales of

common stock and debt securities.

The effect of

existing or probable government regulations on our business is not known at this time.

Due to the nature of our business, it is anticipated

that there may be increasing government regulation that may cause us to have to take serious corrective actions or make changes to the

business plan.

There are no external sources of liquidity available

to us at this time.

We will need to raise additional capital through equity financings or other means in order to continue operations

and meet its obligations.

Failure to obtain additional funding could have a material adverse effect on our financial condition and the

results of operations.

Our cash balance on October 31, 2023, was $235,159, reflecting a decrease

of $214,904 over the year.

This decrease is attributable to significant cash outflows related to operating and investing activities.

We have not been able to generate sufficient cash

from operating activities to fund our ongoing operations and have relied primarily on raising capital through sales of common stock, Regulation

A offerings, and related party loans.

The impact of existing or probable government regulations

on our business remains uncertain.

Due to the nature of our operations in hydrogen-based clean energy technologies, it is anticipated

that government regulation may increase in the future, potentially requiring corrective actions or changes to our business model.

There are currently no external sources of liquidity

available to us, other than potential equity financing or debt offerings.

Failure to secure additional funding could have a material adverse

effect on our financial condition and the results of our operations.

For the Years Ended October 31, 2024 and 2023

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Cash Used in Operating Activities

During the year ended October 31, 2023 cash used in

operating activities of $1,427,284 primarily reflected our net losses for the period, adjusted by non-cash charges such as depreciation

and share based compensation, as well as changes in our working capital accounts, primarily consisting of an increase in accrued interest

payable and payroll taxes, and a decrease in security deposit and accounts payable.

During the year ended October 31, 2022 cash used in

operating activities of $1,121,708 primarily reflected our net losses for the period and changes in our working capital accounts, primarily

consisting of an increase in a due from related party and accrued interest payable, and a decrease in security deposit.

During the year ended October 31, 2024, cash used

in operating activities was $1,802,678.

This reflects our net losses for the period, adjusted by non-cash charges such as depreciation

and share-based compensation.

Changes in working capital accounts also contributed to cash usage, primarily due to increases in accounts

payable and decreases in payroll taxes and accrued interest payable.

In comparison, during the year ended October 31, 2023,

cash used in operating activities was $1,334,084.

The increase in cash usage in 2024 is attributable to higher operating expenses, including

costs related to expanding operations, share based compensation and increased depreciation expenses.

Cash Provided by Financing Activities

During the year ended October 31, 2024, cash provided

by financing activities was $2,520,033, which consisted of proceeds from related party note payable of $185,000 and $2,335,033 in proceeds

obtained through the Company’s active Regulation A offering sale of common stock.

During the year ended October 31, 2022, cash provided

by financing activities was $1,172,827, which primarily consisted of proceeds from related party notes payable of $1,172,817.

by financing activities was $2,002,612.

This primarily consisted of proceeds from related party advances totaling $960,585, along with

$958,929 raised through the Company's Regulation A offering and proceeds from customer deposits.

In comparison, during the year ended October 31, 2023,

cash provided by financing activities was $2,426,833, primarily reflecting proceeds from the Company’s Regulation A offering and

related party loans.

Cash Provided by Investing Activities

During the year ended October 31, 2024, cash used

in investing activities was $908,699.

The Company purchased $804,878 in property and equipment and $103,821 in SAFE note.

During the year ended October 31, 2022, cash used

in investing activities was $10, which consisted of the termination of an acquisition of a subsidiary.

in investing activities was $414,838, primarily due to the purchase of property and equipment and additional investments in intellectual

property classified as long-term assets.

For the year ended October 31, 2023, cash used in

investing activities was $908,699, which included significant purchases of property and equipment as well as investments in a SAFE agreement.

Going Concern

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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-K

Item 7. Management’s Discussion and Analysis