What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-07-07 compared with 2026-03-25 · 167 added, 88 removed, 135 unchanged (65% of the section changed)

26 unchanged sentences

For the three months

ended January 31, 2026 and 2025

ended April 30, 2026 and 2025

For the three months ended

January 31, 2026 and January 31, 2025, we generated no revenue.

April 30, 2026 and 2025, the Company recognized revenue of $33,821 and $43,708, respectively.

Revenue in the current period was generated

from the facilitation of the delivery of hydrogen equipment and related integration support.

The Company concluded that it acted as an

agent with respect to the equipment component of the arrangement, as it did not take control of the goods and the third-party supplier

shipped directly to the customer.

As a result, revenue was recognized on a net basis, limited to the Company’s retained margin.

Cost of Goods Sold

Cost of Goods Sold consists

of direct expenses related to hydrogen engineering services and combustion solution projects, including materials, subcontracted labor,

and other project-specific implementation costs.

For the three months ended April 30, 2026 and 2025, total cost of sales was $0 and $0,

respectively.

The Company acted as an agent in facilitating delivery of certain hydrogen refueling equipment during the 2026 period and

did not generate separate cost of goods sold.

For the three months ended

April 30, 2026 and 2025, gross profit was $33,821 and $43,708, respectively.

These amounts reflect revenue generated from the facilitation

of the delivery of hydrogen equipment and integration support services.

As the Company was acting as an agent with respect to the equipment

delivered by a third-party vendor, no cost of goods sold was recognized, and gross profit equaled the margin retained.

Operating Expenses

General and Administrative

and Contract Labor expenses were $121,489 for the three months ended January 31, 2026, compared to $5,394,662 during the same period in

2025, a decrease of $5,273,173.

The 2025 period included $5,092,557 of stock-based compensation expense.

No stock-based compensation was

recorded during the same period in 2026.

Excluding stock-based compensation, general and administrative expenses decreased by $180,616,

primarily due to reduced professional fees, lower consultant costs, and a general reduction in administrative overhead.

Depreciation and amortization

expense increased by $10,768 to $65,217 for the three months ended January 31, 2026, compared to $54,449 for the same period in 2025,

reflecting depreciation on additions to property and equipment.

expenses were $165,081 for the three months ended April 30, 2026, compared to $314,323 during the same period in 2025, a decrease of $149,242,

reflecting lower professional fees, reduced consultant costs, and a general decline in administrative overhead.

Depreciation expense increased

by $5,897 to $63,436 for the three months ended April 30, 2026, compared to $57,539 for the same period in 2025, reflecting depreciation

on additions to property and equipment.

Advertising and marketing

expenses were $853 for the three months ended January 31, 2026, compared to $5,350 for the same period in 2025.

expenses were $1,706 for the three months ended April 30, 2026, compared to $14,810 for the same period in 2025.

The decrease was due

to reduced outreach activities compared to the prior year, which had higher spending to support the Company’s hydrogen engineering

and combustion solutions.

Net loss for the three months

ended April 30, 2026, was $400,825 compared to a net loss of $470,066 during the same period in 2025.

For the six months

ended April 30, 2026 and 2025

For the six months ended

April 30, 2026 and 2025, the Company recognized revenue of $33,821 and $43,708, respectively.

Revenue in the current period was generated

from the facilitation of the delivery of hydrogen equipment and related integration support.

The Company concluded that it acted as an

agent with respect to the equipment component of the arrangement, as it did not take control of the goods and the third-party supplier

shipped directly to the customer.

As a result, revenue was recognized on a net basis, limited to the Company’s retained margin.

Cost of Goods Sold

Cost of Goods Sold consists

of direct expenses related to hydrogen engineering services and combustion solution projects, including materials, subcontracted labor,

and other project-specific implementation costs.

For the six months ended April 30, 2026 and 2025, total cost of sales was $0 and $0,

respectively.

The Company acted as an agent in facilitating delivery of certain hydrogen refueling equipment during the 2026 period and

did not generate separate cost of goods sold.

For the six months ended

April 30, 2026 and 2025, gross profit was $33,821 and $43,708, respectively.

These amounts reflect revenue generated from the facilitation

of the delivery of hydrogen equipment and integration support services.

As the Company was acting as an agent with respect to the equipment

delivered by a third-party vendor, no cost of goods sold was recognized, and gross profit equaled the margin retained.

Operating Expenses

General and Administrative

expenses were $286,570 for the six months ended April 30, 2026, a decrease of $5,422,415 from $5,708,985 in the comparable period of 2025.

The decline was driven primarily by stock-based compensation, which totaled $5,092,557 in the 2025 period and was nil in 2026.

stock-based compensation, general and administrative expenses decreased by $329,858, reflecting lower professional fees, reduced consultant

costs, and a general decline in administrative overhead.

Depreciation expense increased

by $16,665 to $128,653 for the six months ended April 30, 2026, compared to $111,988 for the same period in 2025, reflecting depreciation

on additions to property and equipment.

Advertising and marketing

expenses were $2,559 for the six months ended April 30, 2026, compared to $20,160 for the same period in 2025.

The decrease was due to

1 unchanged sentence

and combustion solutions.

Net loss for the three months

ended January 31, 2026, was $182,069 compared to a net loss of $5,461,393 during the same period in 2025.

Net loss for the six months

ended April 30, 2026, was $582,894 compared to a net loss of $5,931,459 during the same period in 2025.

Forward-Looking Considerations

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Liquidity and Capital

incurred a net loss for the three months ended January 31, 2026 of $182,069 and had an accumulated deficit of $52,232,259 at January 31,

At January 31, 2026, we had a cash balance of $81,494, compared to a cash balance of $9,525 at October 31, 2025.

At January 31,

2026, the working capital deficit was $2,415,029, compared to a working capital deficit of $2,422,574 at October 31, 2025.

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.

incurred a net loss for the three months ended April 30, 2026 of $400,825 and had an accumulated deficit of $52,633,084 at April 30, 2026.

At April 30, 2026, we had a cash balance of $145,670, compared to a cash balance of $9,525 at October 31, 2025.

At April 30, 2026, the

working capital deficit was $2,613,968, compared to a working capital deficit of $2,422,574 at October 31, 2025.

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.

have not been able to generate sufficient cash from operating activities to fund our ongoing operations.

5 unchanged sentences

changes to the business plan.

There are no external sources

of liquidity available to the Company at this time.

The Company 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.

For the Three months Ended

January 31, 2026 and 2025

The Company will need to

raise additional capital through equity financings or other means in order to continue operations and meet its obligations.

obtain additional funding could have a material adverse effect on our financial condition and the results of operations.

While we do not

currently generate sufficient cash from operations, we have access to certain external sources of financing.

These include the Equity

Purchase Agreement we entered into with Lambda Ventures LLC on April 27, 2026, under which we may sell up to $30,000,000 of our common

stock over a period of up to 24 months;

our ongoing Regulation A offering;

and convertible note financings, including the notes issued

in April 2026 and the note issued in May 2026.

Our ability to access these sources is subject to significant conditions and limitations.

Sales under the Equity Purchase Agreement are subject to the effectiveness of a resale registration statement covering the underlying

shares, per-put dollar limits, and the prevailing market price of our common stock, and amounts realizable under our Regulation A offering

and any future note financings depend on investor demand and market conditions.

There can be no assurance that financing from these sources

will be available in amounts sufficient, or on terms acceptable, to meet our needs.

Accordingly, we will need to raise additional capital

through equity financings or other means in order to continue operations and meet our obligations, and failure to obtain additional funding

could have a material adverse effect on our financial condition and results of operations.

For the Six months Ended

April 30, 2026 and 2025

The following table summarizes

our cash flows for the periods indicated below:

For the Three months Ended January 31,

For the Six months Ended

Cash Used in Operating Activities

2 unchanged sentences

Cash Used in Operating

During the three months ended

January 31, 2026, cash used in operating activities amounted to $(125,531), primarily reflecting our net loss of $(182,069).

offset by depreciation and amortization of $65,217.

Additionally, there was a decrease in accounts receivable of $332,669, a decrease

in other receivable of $1,000, a decrease in accounts payable of $336,507, a decrease in accrued payroll of $96, and an increase in accrued

interest payable of $6,932.

During the three months ended

January 31, 2025, cash used in operating activities amounted to $(168,412), primarily reflecting our net loss of $(5,461,393).

was largely offset by non-cash items, primarily $5,092,557 stock-based compensation, along with depreciation and amortization of $54,449.

Additionally, there was an increase in accounts payable of $121,146, an increase in accrued payroll of $17,476, and an increase in accrued

interest payable of $6,931.

Cash Used in Financing

During the three months ended

January 31, 2026, cash provided by financing activities was $197,500, which consisted of proceeds from related party advances of $130,000

and proceeds from the sale of common stock of $67,500.

During the three

months ended January 31, 2025, cash provided by financing activities was $374,000, which consisted of proceeds from related party advances

During the six months ended

April 30, 2026, cash used in operating activities amounted to $(337,687), primarily reflecting our net loss of $(582,894).

This was partially

offset by non-cash items, including depreciation of $128,653, non-cash interest expense of $12,531, a loss on change in fair value of

convertible notes of $88,160, and a loss on derivative liability of $9,214.

Changes in operating assets and liabilities included a decrease

in accounts receivable of $332,669, a decrease in other receivable of $1,000, a decrease in accounts payable of $340,023, an increase

in accrued interest payable of $13,637, and a net change in operating lease right-of-use assets and lease liabilities of $(634).

During the six months ended

April 30, 2025, cash used in operating activities amounted to $(671,197), primarily reflecting our net loss of $(5,931,459).

largely offset by non-cash items, primarily $5,092,557 of stock-based compensation, depreciation of $111,988, a loss on write-off of intangible

assets of $105,190, legal services provided in exchange for a convertible note of $45,000, and a loss on change in fair value of convertible

notes of $14,985.

Changes in operating assets and liabilities included an increase in accounts receivable of $8,450, a decrease in accounts

payable of $106,116, a decrease in accrued payroll of $8,881, an increase in accrued interest payable of $13,864, and a net change in

operating lease right-of-use assets and lease liabilities of $125.

Cash Provided by Financing

During the six months ended

April 30, 2026, cash provided by financing activities was $487,000, which consisted of net proceeds from related party advances of $200,000,

proceeds from the sale of common stock of $62,500, proceeds from the sale of common stock subscription payable of $60,000, and proceeds

from issuance of convertible notes payable of $164,500.

During the six months

ended April 30, 2025, cash provided by financing activities was $901,500, which consisted of net proceeds from related party advances

of $359,000 and proceeds from the sale of common stock of $542,500.

Cash Provided by Investing

During the three months ended

January 31, 2026, there was no cash used in investing activities.

During the three

months ended January 31, 2025, cash used in investing activities was $(177,943), which consisted of the purchase of property and equipment

and long-term assets.

Cash Used in Investing

During the six months

ended April 30, 2026, cash used in investing activities was $(13,168), which consisted of the purchase of property and equipment and long-term

During the six months

ended April 30, 2025, cash used in investing activities was $(177,944), which consisted of the purchase of property and equipment and

long-term assets.

Going Concern

2 unchanged sentences

in the normal course of business.

During the three months ended January 31, 2026, the Company incurred a net loss of $182,069 and used

cash in operating activities of $125,531, and on January 31, 2026, had stockholders’ deficit of $1,697,073.

These factors, among

others, raise substantial doubt about the Company’s ability to continue as a going concern.

These financial statements do not include

any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and the classification of liabilities

During the six months ended April 30, 2026, the Company incurred a net loss of $582,894 and used cash

in operating activities of $337,687, and on April 30, 2026, had stockholders’ deficit of $1,961,103.

These factors, among others,

raise substantial doubt about the Company’s ability to continue as a going concern.

These financial statements do not include any

adjustments relating to the recoverability and classification of recorded asset amounts or amounts and the classification of liabilities

that might result from this uncertainty.

24 unchanged sentences

Stock Based-Compensation

The Company accounts for stock-based

compensation in accordance with Accounting Standards Codification (“ASC”) 718 Compensation - Stock Compensation

ASC 718 requires that the cost of equity instrument awards, issued in exchange for services, including

those issued to employees and predominantly to consultants, be measured at the grant-date fair value.

The Company does not adhere to

a formal stock-based compensation plan;

rather, it issues stock awards on a discretionary basis as part of compensation agreements

with selected consultants and employees.

Compensation for stock-based awards is recognized as a non-cash expense on the income

The fair value of restricted stock grants is determined using the closing market price on the grant date, adjusted for an

appropriate discount to reflect the restrictions on transferability and marketability of the shares.

The discount is calculated

using a weighted average of comparable restricted stock transactions, which better reflects the economic impact of larger issuances

and provides a more accurate representation of fair value under ASC 718.

The cost is recognized over the period during which the

award recipient is required to perform services, typically known as the vesting period.

The total compensation cost related to

vested stock-based awards is recognized after adjusting for estimated forfeitures at the time of vesting.

The expense related to

stock-based compensation is included within the same income statement lines as cash compensation for the consultants and employees

who receive the awards.

As of the report date, the Company has not established any plans to issue dividends on stock-based awards.

Any tax benefits arising from deductions for these awards are recorded in additional paid-in capital, provided they exceed the

cumulative compensation cost recognized.

The Company accounts for stock-based compensation

in accordance with Accounting Standards Codification (“ASC”) 718 Compensation - Stock Compensation (“ASC 718”).

ASC 718 requires that the cost of equity instrument awards, issued in exchange for services, including those issued to employees and predominantly

to consultants, be measured at the grant-date fair value.

The Company does not adhere to a formal stock-based compensation plan;

it issues stock awards on a discretionary basis as part of compensation agreements with selected consultants and employees.

for stock-based awards is recognized as a non-cash expense on the income statement.

The fair value of restricted stock grants is determined

using the closing market price on the grant date, adjusted for an appropriate discount to reflect the restrictions on transferability

and marketability of the shares.

The discount is calculated using a weighted average of comparable restricted stock transactions, which

better reflects the economic impact of larger issuances and provides a more accurate representation of fair value under ASC 718.

is recognized over the period during which the award recipient is required to perform services, typically known as the vesting period.

The total compensation cost related to vested stock-based awards is recognized after adjusting for estimated forfeitures at the time of

The expense related to stock-based compensation is included within the same income statement lines as cash compensation for the

consultants and employees who receive the awards.

As of the report date, the Company has not established any plans to issue dividends

on stock-based awards.

Any tax benefits arising from deductions for these awards are recorded in additional paid-in capital, provided

they exceed the cumulative compensation cost recognized.

Employee Benefits

During the quarter ended January 31, 2026, the Company

During the six months ended April 30, 2026, the Company

paid $2,970 in employer retirement contributions, representing 3% of semi-monthly payroll for one employee over three pay periods.

contributions are made in accordance with the terms of the Company’s state-mandated retirement plan for eligible employees and

are recorded as employee benefits expense in the period incurred.

These contributions are made in accordance with the terms of the Company’s state-mandated retirement plan for eligible employees

and are recorded as employee benefits expense in the period incurred.

Fair Value Measurement of Convertible Instruments

17 unchanged sentences

on a net basis, limited to the margin or fee earned, consistent with the Company’s role as an agent under ASC 606-10-55-36 through

During the three months ended April 30, 2026 and April

30, 2025, the Company recognized $33,821 and $43,708 in revenue related to the facilitation of delivery of hydrogen refueling equipment

and related services.

Based on its evaluation of the arrangement, the Company determined that it acted as an agent with respect to the

facilitation of delivery of equipment, as it did not obtain control of the goods and the third-party vendor delivered directly to the

As a result, revenue was recognized on a net basis, excluding gross billings and associated third-party costs, in accordance

with ASC 606.

Proposed Transactions

9 unchanged sentences

Outstanding Share Data

As of January 31, 2026, the following securities were

As of April 30, 2026, the following securities were

Common Stock:

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