HNO International, Inc. 10-Q/A

Item 1. Financial Statements. HNO INTERNATIONAL, INC. CONDENSED BALANCE SHEETS January 31, October 31, 2025 2024 ASSETS Unaudited Audited Current Assets Cash $ 47,900 $ 20,255 Total Current Assets 47,900 20,255 Non-Current Assets Property and equipment, net 1,125,228 994,898 Long term asset, net 105,190 112,026 Right-of-use asset 107,740 121,805 Total Non-Current Assets 1,338,158 1,228,729 TOTAL ASSETS $ 1,386,058 $ 1,248,984 LIABILITIES AND STOCKHOLDERS' DEFICIT LIABILITIES Current Liabilities Accounts payable 259,175 138,029 Accrued payroll 35,238 17,762 Accrued interest payable 35,776 28,845 Lease liability 58,041 57,062 Payroll tax 2,838 2,838 Advances, related party 1,319,585 960,585 Customer deposits 99 99 Lease vendor payable 288 — Notes payable, related party 785,000 785,000 Total Current Liabilities 2,496,040 1,990,220 Non-Current Liability Lease liability 51,245 66,155 Long term notes payable, related party 590,000 590,000 Total Non-Current Liability 641,245 656,155 Total Liabilities 3,137,285 2,646,375 STOCKHOLDERS’ DEFICIT Preferred stock, par value $ 0.001 per share; 15,000,000 shares authorized — Series A, par value $ 0.001 per share; 10,000,000 shares authorized; 5,000,000 and 5,000,000 shares issued and outstanding as of January 31, 2025 and October 31, 2024, respectively 5,000 5,000 Series B, par value $ 0.001 per share; 500,000 shares authorized; 360,000 and 0 shares issued and outstanding as of January 31, 2025 and October 31, 2024, respectively 360 — Common stock, par value $ 0.001 per share; 985,000,000 shares authorized; 75,592,158 and 419,437,865 shares issued and outstanding as of January 31, 2025 and October 31, 2024, respectively 75,592 419,438 Common stock payable 15,250 15,250 Common stock subscription receivable ( 13,750 ) ( 13,750 ) Additional paid-in capital 49,062,408 43,611,365 Accumulated deficit ( 50,896,087 ) ( 45,434,694 ) Total Stockholders’ Deficit ( 1,751,227 ) ( 1,397,391 ) TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $ 1,386,058 $ 1,248,984 The accompanying notes are an integral part of these condensed unaudited financial statements. 5 HNO INTERNATIONAL, INC. CONDENSED STATEMENTS OF OPERATIONS (Unaudited) For the Three Months Ended January 31, 2025 2024 (As Restated) Revenue $ — $ — Cost of goods sold — — Gross Profit — — Operating expenses Advertising and marketing 5,350 — General and administrative expenses 5,394,662 464,005 Depreciation and amortization 54,449 36,436 Total Operating Expenses 5,454,461 500,441 Other Income (Expenses) Interest income — 300 Interest expense ( 6,932 ) ( 6,932 ) Total Other (Expenses) ( 6,932 ) ( 6,632 ) Loss from Operations $ ( 5,461,393 ) $ ( 507,073 ) Net Loss $ ( 5,461,393 ) $ ( 507,073 ) PER SHARE AMOUNTS Basic and diluted net loss per share ( 0.02 ) ( 0.00 ) Weighted average number of common shares outstanding - basic and diluted 340,667,128 419,389,590 The accompanying notes are an integral part of these condensed unaudited financial statements. 6 HNO INTERNATIONAL, INC. CONDENSED STATEMENTS OF STOCKHOLDERS' DEFICIT For the three months ended January 31, 2024 (As Restated) (Unaudited) Series A Preferred Stock Series B Preferred Stock Common Stock Stock Share Subscription Additional Paid-in Accumulated Total Stockholders' Shares Amount Shares Amount Shares Amount Payable Receivable Capital Deficit Deficit Balance at October 31, 2023 (Restated) 5,000,000 5,000 — — 419,341,584 419,341 32,251 ( 23,750 ) 41,470,177 ( 42,096,104 ) ( 193,085 ) Regulation A stock issuances — — — — 91,501 92 33,999 — 91,409 — 125,500 Net loss for the three months ended January 31, 2024 — — — — — — — — — ( 507,073 ) ( 507,073 ) Balance at January 31, 2024 (Restated) 5,000,000 $ 5,000 — $ — 419,433,085 $ 419,433 $ 66,250 $ ( 23,750 ) $ 41,561,586 $ ( 42,603,177 ) $ ( 574,658 ) For the three months ended January 31, 2025 Balance at October 31, 2024 5,000,000 $ 5,000 — $ — 419,437,865 $ 419,438 $ 15,250 $ ( 13,750 ) $ 43,611,365 $ ( 45,434,694 ) $ ( 1,397,391 ) Regulation D stock issuances — — — — 29,293 29 — — 14,971 — 15,000 Shares cancelled as per exchange agreement — — — — ( 360,000,000 ) ( 360,000 ) — — — — ( 360,000 ) Series B preferred stock issuances — — 360,000 360 — — — — 359,640 — 360,000 S tock-based compensation — — — — 16,125,000 16,125 — — 5,076,432 — 5,092,557 Net loss for the three months ended January 31, 2025 — — — — — — — — — ( 5,461,393 ) ( 5,461,393 ) Balance at January 31, 2025 5,000,000 $ 5,000 360,000 $ 360 75,592,158 $ 75,592 $ 15,250 $ ( 13,750 ) $ 49,062,408 $ ( 50,896,087 ) $ ( 1,751,227 ) The accompanying notes are an integral part of these condensed unaudited financial statements. 7 HNO INTERNATIONAL, INC. CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) For the Three Months Ended January 31, 2025 2024 (As Restated) Cash Flow from Operating Activities Net loss $ ( 5,461,393 ) $ ( 507,073 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 54,449 36,436 Amortization of right-to-use asset 14,065 4,548 Stock-based compensation 5,092,557 — Changes in operating assets and liabilities: Increase/(Decrease) in accounts payable 121,146 ( 18,341 ) Increase in accrued payroll 17,476 — Increase/(Decrease) in accrued interest payable 6,931 6,931 Increase in lease vendor payable 288 — Increase (Decrease) in lease liabilities ( 13,931 ) ( 4,402 ) (Decrease) increase in payroll taxes — ( 14,802 ) Net Cash Used in Operating Activities ( 168,412 ) ( 496,703 ) Cash Flows from Financing Activities Proceeds from related party advances 359,000 265,585 Proceeds from security deposits — 100,000 Proceeds from sale of common stock subscription payable — 33,999 Proceeds from sale of common stock 15,000 91,501 Net Cash Provided by Financing Activities 374,000 491,085 Cash Flows from Investing Activities Purchase of property and equipment ( 177,943 ) ( 127,835 ) Purchase of long term asset — ( 32,904 ) Net Cash Used in Investing Activities ( 177,943 ) ( 160,739 ) Net increase (decrease) in cash 27,645 ( 166,357 ) Cash at beginning of period 20,255 235,159 Cash at end of period $ 47,900 $ 68,802 Supplemental Disclosure of Interest and Income Taxes Paid: Interest paid during the period $ — $ — Income taxes paid during the period $ — $ — Supplemental Disclosure for Non-Cash Investing and Financing Activities: Common stock cancellation per share exchange agreement $ 360,000 $ — Series B preferred stock issuance per exchange agreement $ 360,000 $ — Record right-to-use asset and lease liability per ASC 842 $ — $ 87,104 The accompanying notes are an integral part of these condensed unaudited financial statements. 8 HNO INTERNATIONAL, INC. NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS JANUARY 31, 2025 NOTE 1 – ORGANIZATION AND BASIS OF ACCOUNTING Organization HNO International, Inc. (the “Company”) was incorporated in the State of Nevada on May 2, 2005 under the name American Bonanza Resources Limited. On August 4, 2009, the Company acquired Clenergen Corporation Limited (UK), a United Kingdom corporation (“Limited”), and succeeded to the business of Limited. Limited acquired the assets of Rootchange Limited, a biofuel and biomass research and development company, in April 2009. On March 19, 2009, the Company changes its name to Clenergen Corporation. On July 8, 2020, the Company changed its name to Excoin Ltd. and on August 31, 2021, the Company changed its name to HNO International, Inc. its current name. The Company specializes in the design, integration, and development of green hydrogen-based clean energy technologies. With the Company’s management having over 13 years of experience in the field of green hydrogen production, the Company is committed to providing scalable products that help businesses and communities decarbonize, reduce emissions, and cut operational costs. HNO stands for Hydrogen and Oxygen. The Company is at the forefront of developing innovative solutions, such as the Compact Hydrogen Refueling System (CHRS) and the Compact Hydrogen Production System (CHPS), which can be used to produce green hydrogen for various applications including fuel cell electric vehicles, hydrogen internal combustion engines, heating, and cooking. The CHPS is highly scalable, capable of producing 100-2,000 (or more) kilograms of hydrogen per day for commercial use in various applications. In addition, the Company develops energy systems that complement the zero-emissions EV infrastructure, reduce harmful emissions, and cut maintenance costs of commercial diesel fleets. By integrating components from leading industry partners, the Company aims to transition fossil fuels to cleaner alternatives and promote lower emissions. NOTE 2 – FINANCIAL STATEMENT RESTATEMENT In connection with the Company’s re-audit of its financial statements for the year ended October 31, 2023, the Company’s management, in consultation with its independent registered public accounting firm, identified corrections to the valuation of service stock issued during the year ended October 31, 2023, and the termination of the patent agreement entered into on January 24, 2023. The corrections made that impact the condensed financial statements for the quarter ended January 31, 2024, are summarized as follows: Stock Price Valuation Adjustment: The valuation of the stock price was adjusted from $ 0.001 to $ 0.23 . Stock-Based Compensation: There was an increase in stock-based compensation reflecting the revised valuation of stock. Equity Adjustments: There was a corresponding increase in additional paid-in capital and an adjustment in the accumulated deficit to reflect the revised stock valuation. Termination of Patent Purchase Agreement: On March 13, 2025, the Company and Donald Owens mutually agreed to terminate the Patent Purchase Agreement as of January 24, 2023. As part of the termination, the patents were returned to Mr. Owens, and the 5,000,000 shares of Series A Preferred Stock were canceled. The $ 82,500 value previously reported in intangible assets and additional paid-in capital was reversed, resulting in a reduction in intangible assets. Additionally, the related amortization expense of $ 3,176 and the issuance of Series A Preferred Stock were removed from the financial statements. Reclassification of Expenses: Expenses incurred during the fiscal year ended October 31, 2023, and paid subsequently, have been reclassified to accounts payable as of October 31, 2023. This adjustment ensures that financial obligations are accurately reported in the period in which they were incurred. These adjustments have been reflected in the restated financial statements for the quarter ended January 31, 2024. 9 Impact of the Restatement The impact of the restatement on the financial statements for the affected period is presented below. In addition to the below, the related notes to the financial statements have also been adjusted as appropriate to reflect the impact of the restatements. The impact of the restatement on the line items within the previously reported Condensed Unaudited Balance Sheet for the quarter ended January 31, 2024, previously filed is as follows: Schedule of restatement balance sheet Balance Sheet as of January 31, 2024 As Previously Reported Adjustment As Restated ASSETS Current Assets Cash $ 68,869 $ ( 67 ) $ 68,802 Due from related party $ 56,392 $ — $ 56,392 Total Current Assets $ 125,261 $ ( 67 ) $ 125,194 Non-Current Assets Property and equipment, net $ 866,077 $ ( 2,550 ) $ 863,527 Intangible assets, net $ 78,287 $ ( 78,287 ) $ — Long term asset, net $ 136,725 $ ( 4,190 ) $ 132,535 Right-of-use asset $ — 82,556 82,556 Security deposits $ — — — Total Non-Current Assets $ 1,081,089 $ ( 2,471 ) $ 1,078,618 TOTAL ASSETS $ 1,206,350 $ ( 2,538 ) $ 1,203,812 LIABILITIES AND STOCKHOLDERS' DEFICIT LIABILITIES Current Liabilities Accounts payable $ 4,144 $ — $ 4,144 Accrued interest payable $ 48,201 $ — $ 48,201 Lease liability $ — $ 27,284 $ 27,284 Payroll tax $ 2,838 $ — $ 2,838 Advances, related party $ 265,585 $ — $ 265,585 Notes payable, related party $ 785,000 $ — $ 785,000 Total Current Liabilities $ 1,105,768 $ 27,284 $ 1,133,052 Non-Current Liability Lease Liability — 55,418 55,418 Long term notes payable, related party $ 590,000 $ — $ 590,000 Total Non-Current Liability $ 590,000 $ 55,418 $ 645,418 Total Liabilities $ 1,695,768 $ 82,702 $ 1,778,470 STOCKHOLDERS’ DEFICIT Series A, par value $0.001 per share $ 10,000 $ ( 5,000 ) $ 5,000 Common stock, par value $0.001 per share $ 419,433 $ — $ 419,433 Common stock payable $ 66,250 $ — $ 66,250 Common stock subscription receivable $ ( 23,750 ) $ — $ ( 23,750 ) Additional paid-in capital $ 41,171,311 $ 390,275 $ 41,561,586 Accumulated deficit $ ( 42,132,662 ) $ ( 470,515 ) $ ( 42,603,177 ) Total Stockholders’ Deficit $ ( 489,418 ) $ ( 85,240 ) $ ( 574,658 ) TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $ 1,206,350 $ ( 2,538 ) $ 1,203,812 10 The impact of the restatement on the line items within the previously reported Condensed Unaudited Statement of Operations for the three months ended January 31, 2024, previously filed is as follows: Schedule of statement of operations Statement of Operations for the three months ended January 31, 2024 As Previously Reported Adjustment As Restated Revenue $ — $ — $ — Cost of goods sold $ — $ — $ — Gross Profit $ — $ — $ — Operating expenses General and administrative expenses $ 482,869 $ ( 18,864 ) $ 464,005 Depreciation and amortization $ 33,283 $ 3,153 $ 36,436 Total Operating Expenses $ 516,152 $ ( 15,711 ) $ 500,441 Other Income (Expenses) Interest income $ 367 ( 67 ) $ 300 Interest expense $ ( 6,932 ) — $ ( 6,932 ) Total Other (Expenses) $ ( 6,565 ) ( 67 ) $ ( 6,632 ) Loss from Operations $ ( 522,717 ) $ 15,644 $ ( 507,073 ) Net Loss $ ( 522,717 ) $ 15,644 $ ( 507,073 ) PER SHARE AMOUNTS Basic and diluted net loss per share $ ( 0.00 ) $ — $ ( 0.00 ) Weighted average number of common shares outstanding - basic and diluted 419,389,590 — 419,389,590 The impact of the restatement on the line items within the previously reported Condensed Unaudited Statement of Changes in Stockholders’ Deficit for the three months ended January 31, 2024, previously filed is as follows: Schedule of statement of changes in stockholders’ deficit Changes in Statement of Stockholders' Deficit for the three months ended January 31, 2024 As Previously Reported Adjustment As Restated Beginning Additional Paid-in Capital - Balance at October 31, 2023 $ 41,079,902 $ 390,275 $ 41,470,177 Beginning Accumulated Deficit - Balance at October 31, 2023 $ ( 41,609,945 ) $ ( 486,159 ) $ ( 42,096,104 ) Beginning Total Stockholders Deficit - Balance at October 31, 2023 $ ( 92,201 ) ( 100,884 ) ( 193,085 ) Series A preferred issued pursuant to patent agreement, shares 10,000,000 ( 5,000,000 ) 5,000,000 Series A preferred issued pursuant to patent agreement, amount $ 10,000 $ ( 5,000 ) $ 5,000 Net loss for the three months ended January 31, 2024 $ ( 522,717 ) $ 15,644 $ ( 507,073 ) Ending Additional paid in capital - - Balance at January 31, 2024 $ 41,171,311 $ 390,275 $ 41,561,586 Ending Accumulated Deficit - Balance at January 31, 2024 $ ( 42,132,662 ) $ ( 470,515 ) $ ( 42,603,177 ) Ending Total Stockholders Deficit - Balance at January 31, 2024 $ ( 489,418 ) $ ( 85,240 ) $ ( 574,658 ) 11 The impact of the restatement on the line items within the previously reported Condensed Unaudited Statement of Cash Flows for the three months ended January 31, 2024, previously filed is as follows: Schedule of statement of cash flows Statement of Cash Flows for the three months ended January 31, 2024 As Previously Reported Adjustment As Restated Cash Flow from Operating Activities Net loss $ ( 522,717 ) $ 15,644 $ ( 507,073 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization $ 33,283 $ 3,153 $ 36,436 Amortization of right-to-use asset $ — 4,548 4,548 Changes in operating assets and liabilities: Increase/(Decrease) in accounts payable $ 3,219 $ ( 21,560 ) $ ( 18,341 ) Increase/(Decrease) in accrued interest payable $ 6,931 $ — $ 6,931 Increase in lease vendor payable $ — — — (Increase) of right-to-use asset $ — ( 87,104 ) ( 87,104 ) Increase (Decrease) in lease liabilities $ — 82,702 82,702 Increase (Decrease) in payroll taxes $ ( 14,802 ) — ( 14,802 ) Net Cash Used in Operating Activities $ ( 494,086 ) $ ( 2,617 ) $ ( 496,703 ) Cash Flows from Financing Activities Proceeds from related party advances $ 265,585 $ — $ 265,585 Proceeds from security deposits $ 100,000 $ — $ 100,000 Proceeds from sale of common stock subscription payable $ 33,999 $ — $ 33,999 Proceeds from sale of common stock $ 91,501 $ — $ 91,501 Net Cash Provided by Financing Activities $ 491,085 $ — $ 491,085 Cash Flows from Investing Activities Purchase of property and equipment $ ( 130,385 ) $ 2,550 $ ( 127,835 ) Purchase of long term asset $ ( 32,904 ) $ — $ ( 32,904 ) Net Cash Used in Investing Activities $ ( 163,289 ) $ 2,550 $ ( 160,739 ) Net increase (decrease) in cash $ ( 166,290 ) $ ( 67 ) $ ( 166,357 ) Cash at beginning of period $ 235,159 $ — $ 235,159 Cash at end of period $ 68,869 $ ( 67 ) $ 68,802 Supplemental Disclosure for Non-Cash Investing and Financing Activities: Record right-to-use asset and lease liability per ASC 842 $ — $ 87,104 $ 87,104 NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”), and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and reflect all adjustments, consisting of normal recurring adjustments, which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company for the three months ended January 31, 2025. Use of Estimates The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The management makes its best estimate of the outcome for these items based on information available when the financial statements are prepared. 12 Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. As of January 31, 2025, and October 31, 2024, the Company did not hold any investments that qualify as cash equivalents. Therefore, the cash and cash equivalents line item in the balance sheet solely comprises cash. Stock-Based Compensation 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; 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 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. 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. Income Taxes Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. Revenue Recognition We recognize revenue in accordance with ASC 606, Revenue from Contracts with Customers . The standard’s stated core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, ASC 606 includes provisions within a five-step model that includes identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue when, or as, an entity satisfies a performance obligation. During the three months ended January 31, 2025 and 2024, the Company did no t generate any revenue. Basic and Diluted Net Loss per Common Share Basic loss per common share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding for each period. Diluted loss per share is computed by dividing the net loss by the weighted average. Number of shares of common stock outstanding plus the dilutive effect of shares issuable through the common stock equivalents. The weighted-average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. Property and Equipment Property and equipment are carried at cost and, less accumulated depreciation. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposal. The Company examines the possibility of decreases in the value of property and equipment when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. The Company’s property and equipment mainly consists of computer and laser equipment. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. 13 Schedule of estimated useful lives Useful life Small equipment 3 Years Large equipment 7 Years Vehicles 4 Years Impairment of Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. To determine recoverability of a long-lived asset, management evaluates whether the estimated future undiscounted net cash flows from the asset are less than its carrying amount. If impairment is indicated, the long-lived asset would be written down to fair value. Fair value is determined by an evaluation of available price information at which assets could be bought or sold, including quoted market prices, if available, or the present value of the estimated future cash flows based on reasonable and supportable assumptions. Leases The Company accounts for leases in accordance with ASC 842, Leases (“ASC 842”). At contract inception, the Company determines if an arrangement is or contains a lease. Where the Company is the lessee, for each lease with a term greater than twelve months, the Company records a right-of-use asset and lease liability. A right-of-use asset represents the economic benefit conveyed to the Company by the right to use the underlying asset over the lease term. A lease liability represents the obligation to make lease payments arising from the use of the asset over the lease term. As most of the Company’s leases do not provide an implicit interest rate, the lease liability is calculated at lease commencement as the present value of unpaid lease payments using the Company’s estimated incremental borrowing rate. The incremental borrowing rate represents the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term and is determined using a portfolio approach based on information available at the commencement date of the lease. Leases with an initial expected term of 12 months or less are not recorded in the Balance Sheet and the related lease expense is recognized on a straight-line basis over the lease term. Recent Accounting Pronouncements In March 2024, the Financial Accounting Standards Board (FASB) issued ASU No. 2024-01, "Compensation—Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards." This update clarifies the accounting for profits interest awards by specifying when these awards should be accounted for under ASC 718, Stock Compensation, as opposed to other compensation arrangements like cash bonuses under ASC 710. This clarification is provided through a series of illustrative examples which show how to determine whether profits interest awards meet the conditions of ASC 718, focusing on when such awards should be recognized as equity or liability. The guidance is intended to increase the comparability and consistency of financial reporting by providing clearer criteria for the accounting of profits interest awards. For public companies, the amendments in this update are effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. For private companies, the amendments are effective for fiscal years beginning after December 15, 2025, and interim periods within fiscal years beginning after December 15, 2026. Early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on its financial statements and will continue to assess its potential effects as the adoption date approaches. NOTE 4 – GOING CONCERN On January 31, 2025, we had an accumulated deficit of $ 50,896,087 . We have not been able to generate sufficient cash from operating activities to fund our ongoing operations. We will be required to raise additional funds through public or private financing, additional collaborative relationships, or other arrangements until we are able to raise revenues to a point of positive cash flow. We are evaluating various options to further reduce our cash requirements to operate at a reduced rate, as well as options to raise additional funds, including obtaining loans and selling common stock. There is no guarantee that we will be able to generate enough revenue and/or raise capital to support operations. Based on the above factors, substantial doubt exists about our ability to continue as a going concern for one year from the issuance of these financial statements. 14 The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. NOTE 5 – PROPERTY AND EQUIPMENT Property and equipment consisted of the following: Schedule of property and equipment January 31, 2025 October 31, 2024 Vehicles $ 60,702 $ 60,702 Small equipment $ 32,943 $ 32,943 Large equipment 1,271,108 1,093,166 Property and Equipment, Gross $ 1,364,753 $ 1,186,811 Less: Accumulated depreciation ( 239,525 ) ( 191,913 ) Property and Equipment, Net $ 1,125,228 $ 994,898 Depreciation expenses for the three months ended January 31, 2025 and 2024 were $ 47,612 and $ 32,246 , respectively. NOTE 6 – LEASES Operating leases The Company has an operating lease agreement for office space in Murrieta, California, expiring on November 30, 2026. On November 18, 2020, the Company entered into an operating lease with the landlord, Demarius Holdings, Inc., commencing on December 1, 2020, and ending on November 30, 2023, for the office spaces located at 41558 Eastman Drive, Suites B and C, Murrieta, California 92562. The monthly rent was $4,183. Both suites are approximately 2,088 square feet of space. The Company’s principal executive office is located at 41558 Eastman Drive, Suite B, Murrieta, California 92562. Suite C is utilized for testing and research equipment. On November 14, 2023, the lease for Suite B was extended for 36 months to November 30, 2026. The monthly rental amount for Suite B is $2,501 for the period from December 1, 2023, to November 30, 2024, with an increase to $2,573 for the period from December 1, 2024, to November 30, 2025, and an increase to $2,647 for the period from December 1, 2025, to November 30, 2026. On January 4, 2024, the lease for Suite C was extended for 34 months to November 30, 2026. The monthly rental amount for Suite C is $2,434 for the period from February 1, 2024, to November 30, 2024, with an increase to $2,506 for the period from December 1, 2024, to November 30, 2025, and an increase to $2,555 for the period from December 1, 2025, to November 30, 2026. The Company has active operating lease arrangements for office space. The Company is typically required to make fixed minimum rent payments relating to its right to use the underlying leased assets. The Company was required to classify such leases as operating leases in accordance with the provisions of ASC 842 . Therefore, the Company recognized operating lease liabilities with corresponding Right-Of-Use ("ROU") assets based on the present value of the minimum rental payments of such leases . As most of the Company’s leases do not provide an implicit interest rate, the lease liability is calculated at lease commencement as the present value of unpaid lease payments using the Company’s estimated incremental borrowing rate. The incremental borrowing rate represents the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term and is determined using a portfolio approach based on information available at the commencement date of the lease. As of January 31, 2025, the right-of-use asset was $ 107,740 and operating lease liabilities were $ 109,286 . The operating lease liabilities consist of a current portion of $ 58,041 and a non-current portion of $ 51,245 . The weighted average remaining lease term was 1.83 years and the weighted average discount rate was 4.14 %. Remaining lease term as of January 31, 2025: Schedule of remaining lease term Year Operating Lease Payment 2024 $ — 2025 $ 45,682 2026 and above $ 65,986 Total Payments $ 111,668 15 NOTE 7 – COMMON STOCK The Company is authorized to issue 985,000,000 shares of common stock, par value $ 0.001 . Increase in Authorized Capital Stock On January 4, 2023, the Board of Directors and a majority of the Company’s stockholders approved the proposal to increase the number of shares of capital stock that the Company is authorized to issue to 1,000,000,000 . On January 6, 2023, the Company filed a Certificate of Amendment to the Articles of Incorporation with the Secretary of State of Nevada to increase the total authorized capital from 510,000,000 shares to 1,000,000,000 shares consisting of 985,000,000 shares of common stock, par value $ 0.001 , and 15,000,000 shares of preferred stock, par value $ 0.001 . Stock Issued During the quarter ended January 31, 2023, the Company entered into Stock Subscription Agreements with Donald Owens, the Company’s Chairman of the Board of Directors, whereby the Company privately sold a total of 175,000,000 shares of its common stock for a cash purchase price of $ 175,000 . Donald Owens was an “accredited investor” (under Rule 506 (b) of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”)). The $ 175,000 in proceeds from the sale of common stock will be used for operating capital. The shares were ‘restricted securities’ under Rule 144 of the Securities Act. On January 17, 2023, the Company entered into a Stock Subscription Agreement with William Parker, a member of the Company’s Board of Directors, whereby the Company privately sold a total of 5,000,000 shares of its common stock for a cash purchase price of $ 5,000 . William Parker was an “accredited investor” (under Rule 506 (b) of Regulation D under the Securities Act). The $ 5,000 in proceeds from the sale of common stock will be used for operating capital. The shares were ‘restricted securities’ under Rule 144 of the Securities Act. On January 11, 2023, the Company entered into a Stock Subscription Agreement with Hossein Haririnia, the Company’s Treasurer and a member of the Board of Directors, whereby the Company privately sold a total of 2,000,000 shares of its common stock for a cash purchase price of $ 2,000 . Hossein Haririnia was an “accredited investor” (under Rule 506 (b) of Regulation D under the Securities Act). The $ 2,000 in proceeds from the sale of common stock will be used for operating capital. The shares were ‘restricted securities’ under Rule 144 of the Securities Act. The Company's Board of Directors granted approval for the issuance of 2,025,000 shares of our common stock with a value of $ 0.23 on January 2, 2023, in exchange for services rendered to the Company. These shares were considered "restricted securities" under Rule 144 and were issued under the exemption provided by Section 4(a)(2) of the Securities Act. On January 31, 2023, the Company entered into Stock Subscription Agreements with Donald Owens, the Company’s Chairman of the Board of Directors, whereby the Company privately sold a total of 100,000,000 shares of its common stock for a cash purchase price of $ 100,000 . Donald Owens was an “accredited investor” (under Rule 506 (b) of Regulation D under the Securities Act). The $ 100,000 in proceeds from the sale of common stock will be used for operating capital. As of January 31, 2023, these shares had not yet been issued and therefore were recorded as stock payable. On February 1, 2023, these shares were issued. On June 9, 2023, the Company entered into a Stock Subscription Agreement with Hossein Haririnia, the Company’s Treasurer and a member of the Board of Directors, whereby the Company privately sold a total of 8,000,000 shares of its common stock for a cash purchase price of $ 8,000 . Hossein Haririnia was an “accredited investor” (under Rule 506 (b) of Regulation D under the Securities Act). The $ 8,000 in proceeds from the sale of common stock will be used for operating capital. The shares were issued as ‘restricted securities’ under Rule 144 of the Securities Act. During the quarter ended July 31, 2023, the Company issued 1,968,032 shares of common stock for $ 1,968,032 in cash under its Regulation A offering, qualified on May 3, 2023. Additionally, the Company issued 13,750 Regulation A shares, resulting in $ 13,750 classified as common stock receivable due to unpaid balances, and sold 19,750 Regulation A shares, which were classified as $ 19,750 common stock payable. During the quarter ended October 31, 2023, the Company issued 52,500 shares of common stock for $ 52,500 in cash under its Regulation A offering, qualified by the SEC on May 3, 2023. The Company also issued 6,000 Regulation A shares previously classified as common stock payable and sold 18,501 Regulation A shares, classified as $ 18,501 common stock payable. On October 9, 2023, the Company issued 24,753 shares of common stock valued at $ 20,000 as a commitment fee for equity financing. The shares were issued in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act, and Rule 506(b) of Regulation D under the Securities Act, based, in part, on the representations of the investor. 16 During the quarter ended January 31, 2024, the Company issued 74,500 shares of common stock for $ 74,500 in cash under its Regulation A offering, qualified by the SEC on May 3, 2023. The Company also issued 17,001 Regulation A shares previously classified as common stock payable and sold 51,000 Regulation A shares, classified as $ 51,000 common stock payable. During the quarter ended April 30, 2024, the Company issued 64,900 shares of common stock for $ 69,400 in cash under its Regulation A offering, qualified by the SEC on May 3, 2023. The Company also issued 51,000 Regulation A shares previously classified as common stock payable and sold 64,250 Regulation A shares, classified as $ 64,250 common stock payable. During the quarter ended July 31, 2024, the Company issued 158,278 shares of common stock for $ 158,278 in cash under its Regulation A offering, qualified by the SEC on May 3, 2023. The Company also issued 60,750 Regulation A shares previously classified as common stock payable and sold 1,000 Regulation A shares, classified as $ 1,000 common stock payable. During the quarter ended July 31, 2024, the Company entered into a Stock Subscription Agreement with accredited investors (under Rule 506 (b) of Regulation D under the Securities Act of 1933, as amended). Whereby the Company privately sold a total of 966,879 shares of its common stock, $ 0.001 par value per share, (“common stock”) for a cash purchase price of $ 275,500 . The proceeds from the sale of common stock will be used for operating capital. The shares were issued as ‘restricted securities’ under Rule 144 of the Securities Act. During the quarter ended October 31,2024, the Company issued 2,500 Regulation A shares previously classified as common stock payable and sold 2,500 Regulation A shares, classified as $ 2,500 common stock payable. During the quarter ended October 31, 2024, the Company entered into a Stock Subscription Agreement with accredited investors (under Rule 506 (b) of Regulation D under the Securities Act of 1933, as amended). Whereby the Company privately sold a total of 1,295,973 shares of its common stock, $ 0.001 par value per share, (“common stock”) for an aggregate cash purchase price of $ 250,000 . The proceeds from the sale of common stock will be used for operating capital. The shares were issued as ‘restricted securities’ under Rule 144 of the Securities Act. During the quarter ended October 31, 2024, the Company's Board of Directors granted approval for the issuance of 7,400,000 shares of our common stock valued at$ 1,192,356 , in exchange for services rendered to the Company. These shares were considered "restricted securities" under Rule 144 and were issued under the exemption provided by Section 4(a)(2) of the Securities Act. The issuance of these shares resulted in the recognition of stock-based compensation expense in the accompanying statement of operations. During the quarter ended January 31, 2025, the Company entered into a Stock Subscription Agreement with accredited investors (under Rule 506 (b) of Regulation D under the Securities Act of 1933, as amended). Whereby the Company privately sold a total of 29,293 shares of its common stock, $ 0.001 par value per share, (“common stock”) for an aggregate cash purchase price of $ 15,000 . The proceeds from the sale of common stock will be used for operating capital. The shares were issued as ‘restricted securities’ under Rule 144 of the Securities Act. During the quarter ended January 31, 2025, the Company's Board of Directors granted approval for the issuance of 16,125,000 shares of our common stock valued at $ 5,092,577 , in exchange for services rendered to the Company. These shares were considered "restricted securities" under Rule 144 and were issued under the exemption provided by Section 4(a)(2) of the Securities Act. The issuance of these shares resulted in the recognition of stock-based compensation expense in the accompanying statement of operations. As of January 31, 2025 and October 31, 2024, the Company had 75,592,158 and 419,437,865 shares of common stock issued and outstanding, respectively. Stock Receivable As of January 31, 2025 and October 31, 2024, the Company issued 13,750 shares of common stock under Regulation A offering to various shareholders that have not yet paid for shares; therefore, $ 13,750 has been classified as common stock receivable. On March 31, 2022, the Company issued 10,000,000 shares of common stock to Vivaris Capital, LLC, in connection with an Advisory Agreement. However, Vivaris Capital, LLC never paid for the shares, and a dispute arose. The dispute centered around the respective performance under the Advisory Agreement. On May 3, 2024, the Company and Vivaris Capital, LLC executed a Settlement Agreement. As part of this agreement, the Company paid Vivaris Capital, LLC a settlement amount of $ 15,500 , and the 10,000,000 shares issued to Vivaris Capital, LLC were canceled. This settlement nullifies any outstanding receivables related to the stock issuance and fully resolves the dispute between the parties. As per the Settlement Agreement and Mutual Release of All Claims executed on May 3, 2024, the Company and Vivaris Capital, LLC have resolved their dispute. The settlement terms include the cancellation of the 10,000,000 shares issued to Vivaris Capital, LLC. Additionally, the Company agreed to pay Vivaris Capital, LLC a settlement amount of $ 15,500 , which has been recorded as a legal expense. This agreement nullifies any outstanding receivable related to the stock issuance and resolves the dispute in full. 17 Stock Payable As of January 31, 2025, the Company sold 15,250 shares of common stock under its Regulation A offering to various shareholders that have not yet been issued by the transfer agent; therefore, $ 15,250 has been classified as common stock payable. NOTE 8 – PREFERRED STOCK The Company is authorized to issue 15,000,000 shares of preferred stock, par value $ 0.001 . Series A Preferred Stock The Company is authorized to issue 10,000,000 shares of Series A preferred stock, par value $ 0.001 . On January 24, 2023, the Company issued 5,000,000 shares of its Series A Preferred Stock to Mr. Owens, valued at $ 82,500 for patents On March 13, 2025, the Company and Mr. Owens mutually agreed to terminate the Patent Purchase Agreement as of January 24, 2023. As part of the termination, the 5,000,000 shares of Series A Preferred Stock were canceled (see Note 12). As of January 31, 2025, and October 31, 2024, the Company had 5,000,000 and 5,000,000 shares of Series A preferred stock issued and outstanding, respectively. Series B Preferred Stock The Company is authorized to issue 500,000 shares of Series B preferred stock, par value $ 0.001 . On January 2, 2025, the Company entered into a Share Exchange Agreement with Donald Owens, the Company’s CEO and Chairman. Pursuant to the agreement, Donald Owens exchanged 245,000,000 shares of the Company’s common stock for 245,000 shares of Series B Preferred Stock. On January 9, 2025, 245,000,000 shares of common stock held by Donald Owens were cancelled, and 245,000 shares of Series B Preferred Stock were issued to Donald Owens. On January 2, 2025, the Company entered into a Share Exchange Agreement with HNO Green Fuels, Inc. Pursuant to the agreement, HNO Green Fuels, Inc. exchanged 115,000,000 shares of the Company’s common stock for 115,000 shares of Series B Preferred Stock. On January 9, 2025, 115,000,000 shares of common stock held by HNO Green Fuels, Inc. were cancelled, and 115,000 shares of Series B Preferred Stock were issued to HNO Green Fuels, Inc. As of January 31, 2025, and October 31, 2024, the Company had 360,000 and 0 shares of Series B preferred stock issued and outstanding, respectively. NOTE 9 – RELATED PARTY TRANSACTIONS Notes Payable, Related Party On November 19, 2021, the Company issued a note payable in the amount of $ 20,000 to HNO Green Fuels, of which Donald Owens is Chief Executive Officer. This note bears an interest rate of 2 % per annum and had a maturity date of December 19, 2022. The Company agreed to issue 20,000,000 shares of its common stock for settlement of the $ 20,000 note payable dated November 19, 2021 to HNO Green Fuels. The note matured on December 19, 2022 and the $ 20,000 principal was settled on December 26, 2022 with the issuance of these shares. The shares are ‘restricted securities’ under Rule 144 and the issuance of the shares was made in reliance upon the exemption provided in Section 4(a)(2) of the Securities Act of 1933, as amended. The accrued interest of $ 436 due in connection with this note was paid in full on August 21, 2024. On December 1, 2021, the Company issued a note payable in the amount of $ 500,000 to HNO Green Fuels, of which Donald Owens is Chief Executive Officer. This note bears an interest rate of 2 % per annum and had a maturity date of January 1, 2023. During the year ended October 31, 2023, $ 65,000 of principal was repaid. On January 17, 2024, the Company entered into an extension to the promissory note, extending the maturity date to December 31, 2024, and waiving all prior defaults. On December 19, 2024, the Company executed another extension, further extending the maturity date to December 31, 2025 , and waiving all prior defaults. On August 21, 2024, the Company paid $ 27,517 in accrued interest. At January 31, 2025, there is $ 435,000 of principal and $ 2,193 of accrued interest due on this note. 18 On May 31, 2022, the Company issued a note payable in the amount of $ 590,000 to HNO Green Fuels, of which Donald Owens is Chief Executive Officer. This note bears an interest rate of 2 % per annum and has a maturity date of May 31, 2030 . At January 31, 2025, there is $ 590,000 of principal and $ 31,553 of accrued interest due on this note. On September 29, 2022, the Company issued a note payable in the amount of $ 50,000 to HNO Green Fuels, of which Donald Owens is Chief Executive Officer. This note bears an interest rate of 2 % per annum and had a maturity date of October 31, 2023 . On January 17, 2024, the Company entered into an extension to the promissory note, extending the maturity date to December 31, 2024, and waiving all prior defaults. On December 19, 2024, the Company executed another extension, further extending the maturity date to December 31, 2025, and waiving all prior defaults. On August 21, 2024, the Company paid $ 2,090 in accrued interest. At January 31, 2025, there is $ 50,000 of principal and $ 252 of accrued interest due on this note. On October 20, 2022, the Company issued a note payable in the amount of $ 50,000 to HNO Green Fuels, of which Donald Owens is Chief Executive Officer. This note bears an interest rate of 2 % per annum and had a maturity date of November 20, 2023 . On January 17, 2024, the Company entered into an extension to the promissory note, extending the maturity date to December 31, 2024, and waiving all prior defaults. On December 19, 2024, the Company executed another extension, further extending the maturity date to December 31, 2025, and waiving all prior defaults. On August 21, 2024, the Company paid $ 2,033 in accrued interest. At January 31, 2025, there is $ 50,000 of principal and $ 252 of accrued interest due on this note. On March 1, 2023, the Company issued a note payable in the amount of $ 50,000 to HNO Green Fuels, of which Donald Owens is Chief Executive Officer. This note bears an interest rate of 2 % per annum and had a maturity date of March 1, 2024 . On March 1, 2024, the Company entered into an extension to the promissory note, extending the maturity date to December 31, 2024, and waiving all prior defaults. On December 19, 2024, the Company executed another extension, further extending the maturity date to December 31, 2025, and waiving all prior defaults. On August 21, 2024, the Company paid $ 1,671 in accrued interest. At January 31, 2025, there is $ 50,000 of principal and $ 252 of accrued interest due on this note. On March 8, 2023, the Company issued a note payable in the amount of $ 50,000 to HNO Green Fuels, of which Donald Owens is Chief Executive Officer. This note bears an interest rate of 2 % per annum and had a maturity date of March 8, 2024 . On March 1, 2024, the Company entered into an extension to the promissory note, extending the maturity date to December 31, 2024, and waiving all prior defaults. On December 19, 2024, the Company executed another extension, further extending the maturity date to December 31, 2025, and waiving all prior defaults. On August 21, 2024, the Company paid $ 1,652 in accrued interest. At January 31, 2025, there is $ 50,000 of principal and $ 252 of accrued interest due on this note. On March 23, 2023, the Company issued a note payable in the amount of $ 50,000 to HNO Green Fuels, of which Donald Owens is Chief Executive Officer. This note bears an interest rate of 2 % per annum and had a maturity date of March 23, 2024 . On March 1, 2024, the Company entered into an extension to the promissory note, extending the maturity date to December 31, 2024, and waiving all prior defaults. On December 19, 2024, the Company executed another extension, further extending the maturity date to December 31, 2025, and waiving all prior defaults. On August 21, 2024, the Company paid $ 1,611 in accrued interest. At January 31, 2025, there is $ 50,000 of principal and $ 252 of accrued interest due on this note. On April 3, 2023, the Company issued a note payable in the amount of $ 50,000 to HNO Green Fuels, of which Donald Owens is Chief Executive Officer. This note bears an interest rate of 2 % per annum and had a maturity date of April 3, 2024 . On March 1, 2024, the Company entered into an extension to the promissory note, extending the maturity date to December 31, 2024, and waiving all prior defaults. On December 19, 2024, the Company executed another extension, further extending the maturity date to December 31, 2025, and waiving all prior defaults. On August 21, 2024, the Company paid $ 1,581 in accrued interest. At January 31, 2025, there is $ 50,000 of principal and $ 252 of accrued interest due on this note. On April 13, 2023, the Company issued a note payable in the amount of $ 20,000 to HNO Green Fuels, of which Donald Owens is Chief Executive Officer. This note bears an interest rate of 2 % per annum and had a maturity date of April 13, 2024 . On March 1, 2024, the Company entered into an extension to the promissory note, extending the maturity date to December 31, 2024, and waiving all prior defaults. On December 19, 2024, the Company executed another extension, further extending the maturity date to December 31, 2025, and waiving all prior defaults. On August 21, 2024, the Company paid $ 621 in accrued interest. At January 31, 2025, there is $ 20,000 of principal and $ 101 of accrued interest due on this note. On April 17, 2023, the Company issued a note payable in the amount of $ 30,000 to HNO Green Fuels, of which Donald Owens is Chief Executive Officer. This note bears an interest rate of 2 % per annum and had a maturity date of April 17, 2024 . On March 1, 2024, the Company entered into an extension to the promissory note, extending the maturity date to December 31, 2024, and waiving all prior defaults. On December 19, 2024, the Company executed another extension, further extending the maturity date to December 31, 2025, and waiving all prior defaults. On August 21, 2024, the Company paid $ 787 in accrued interest. At January 31, 2025, there is $ 30,000 of principal and $ 290 of accrued interest due on this note. 19 On August 21, 2024, the Company repaid accrued interest of $ 40,000 to HNO Green Fuels. As of January 31, 2025 and October 31, 2024, these current and long-term notes payable had an aggregate outstanding balance of $ 1,375,000 . As of January 31, 2025 and October 31, 2024, the Company has recorded $ 35,776 and $ 28,845 , respectively in accrued interest in connection with these notes in the accompanying financial statements. Advances from Related Party During the year ended October 31, 2024, Donald Owens, the Company's Chairman of the Board of Directors, advanced $ 950,585 to the Company to cover operating expenses. During the year ended October 31, 2024, HNO Green Fuels, Inc., advanced $ 10,000 to the Company to cover operating expenses. During the three months ended January 31, 2025, Donald Owens, the Company's Chairman of the Board of Directors, advanced $ 16,000 to the Company to cover operating expenses. During the three months ended January 31, 2025, HNO Green Fuels, Inc., advanced $ 343,000 to the Company to cover operating expenses. NOTE 10 – RECEIVABLE SETTLEMENT WITH RELATED PARTY As of January 31, 2024, October 31, 2023 and October 31, 2022, the Company had a receivable from HNO Hydrogen Generators totaling $ 56,392 on its balance sheet, which was unsecured and due on demand. The receivable was fully settled through a transfer of assets in connection with a settlement agreement effective April 15, 2024. The settlement agreement involved the transfer of equipment, categorized into large and small equipment, with a combined value of $56,392. Specifically, large equipment was valued at $32,327, and small equipment at $24,065. This settlement agreement fully resolved all claims associated with the receivable. On the date of settlement, $ 5,185 was calculated as 5 % interest and was recorded on the balance sheet as accrued interest receivable. The $ 5,185 balance of accrued interest was fully received on July 3, 2024. NOTE 11 – INTELLECTUAL PROPERTY: PROTOTYPE COMPACT HYDROGEN REFUELING STATION (CHRS) On July 10, 2023, the Company entered into a Simple Agreement for Future Equity (the “SAFE”) with Varea, Inc. ("Varea"), a Delaware corporation. Pursuant to the SAFE, the Company is investing $ 500,000 (the "Purchase Amount") in Varea in exchange for the right to certain shares of Varea's Capital Stock. The agreement specifies that the Purchase Amount will be used for the Company's business operations over the next 12 months, subject to an agreed-upon budget. Prior to entering into this SAFE, the Company had an existing financial arrangement with Varea LLC, whereby Varea LLC invoiced the Company for services rendered, which were recorded as expenses by HNOI. However, recognizing the potential for a more mutually beneficial arrangement, Varea Inc. proposed a revised approach. Under the newly proposed approach, Varea Inc. would submit a detailed budget outlining their anticipated monthly expenses, and HNO International, Inc. would view these expenses as an investment opportunity rather than mere costs. In exchange for funding Varea Inc.'s expenses, HNO International, Inc. would receive a post-money SAFE, which represents a future right to certain shares of Varea's Capital Stock. The transition from the previous invoicing system to the investment-based financial arrangement was agreed by both parties. The terms and conditions of the agreement, including the conversion of expenses into a potential future return on investment, were thoroughly assessed and discussed. On December 6, 2023, the SAFE was terminated as part of a Mutual Release Agreement between HNO International, Inc., and Varea, Inc. Under the terms of this Mutual Release Agreement, the intellectual property related to the prototype Compact Hydrogen Refueling Station (CHRS), developed with the funds provided under the SAFE, was retained by HNO International, Inc. The balance of the SAFE on December 6, 2023, was $ 136,725 . Following the termination of the SAFE, the amount previously recorded under the SAFE was reclassified, and the intellectual property associated with the CHRS is now fully owned and recognized as a long-term intangible asset on HNO International, Inc.'s balance sheet. This long-term asset is solely the intellectual property associated with the CHRS and does not include any physical equipment. 20 Amortization The intellectual property associated with the CHRS is being amortized over a useful life of five 5 years, beginning on December 6, 2023. The amortization expense for the three months ended January 31, 2025 is $ 6,836 , recognizing the straight-line amortization of the asset over the remaining useful life. Schedule of amortization expense Useful Life (years) January 31, 2025 October 31, 2024 Long term asset 5 $ 136,725 $ 136,725 Less: Accumulated amortization ( 31,535 ) ( 24,699 ) Long term asset, net $ 105,190 $ 112,026 NOTE 12 – TERMINATION OF PATENT AGREEMENT Patent Purchase Agreement On January 24, 2023, the Company entered into a Patent Purchase Agreement with Donald Owens, the Company's Chairman of the Board of Directors, to acquire several patents related to hydrogen supplemental systems for on-demand hydrogen generation for internal combustion engines and a method and apparatus for increasing combustion efficiency and reducing particulate matter emissions in jet engines. In exchange for these patents, the Company issued 5,000,000 shares of its Series A Preferred Stock to Mr. Owens, valued at $ 82,500 . Termination of Patent Purchase Agreement On March 13, 2025, the Company and Donald Owens mutually agreed to terminate the Patent Purchase Agreement as of January 24, 2023. As part of the termination, the patents were returned to Mr. Owens, and the 5,000,000 shares of Series A Preferred Stock were canceled. See Note 2 – Correction of Previously Issued Financial Statements. A copy of the Termination Agreement was attached to the Company’s Annual Report on Form 10-K as Exhibit 10.27. NOTE 13 – TERMINATION OF PROPERTY ACQUISITION AGREEMENT On August 28, 2023, the Company entered into a Purchase and Sale Agreement (the “PSA”) with TCF Elrod, LLC. Pursuant to the PSA, the Company agreed to purchase property located in Harris County, Texas, including real property, improvements, development rights, and a lease. The purchase price for the property was $ 10,800,000 . In connection with the PSA, the Company deposited $ 100,000 in earnest money, which was applied towards the purchase price of the sale proceeds as planned. Although the earnest money was non-refundable, the PSA provided for return of the deposit under certain conditions, including the failure to satisfy specific contingencies. When such conditions were not met, the Company chose to exercise its right to terminate the PSA. As a result, TCF Elrod, LLC refunded the $ 100,000 earnest money deposit to the Company on December 4, 2023 . NOTE 14 – SUBSEQUENT EVENTS Subsequent events have been evaluated through April 9, 2025, which represents the date the financial statements were available to be issued, and no events, other than discussed below have occurred through that date that would impact the financial statements. On April 7, 2025, the Company entered into a Legal Services Agreement with Newlan Law Firm, PLLC, pursuant to which the Company issued a $ 45,000 principal amount convertible promissory note in payment of legal services. This convertible promissory note is convertible any time beginning 180 days from its issue date, bears interest at 8 % per annum and is due in April 2026. The conversion price under this convertible promissory note is equal to 75% of the closing price of the Company’s common stock on the trading day immediately preceding the date of conversion. Common Stock Issued The Company entered into Stock Subscription Agreements with accredited investors (under Rule 506(b) of Regulation D under the Securities Act of 1933, as amended), whereby the Company privately sold a total of 4,558,333 shares of its common stock, $ 0.001 par value per share (“common stock”), for a cash purchase price of $ 527,500 . The Company issued 1,500,000 shares on February 19, 2025, 125,000 shares on February 26, 2025, 500,000 shares on February 28, 2025, 75,000 shares on March 3, 2025, 1,333,333 shares on March 10, 2025, 300,000 shares on March 12, 2025, 250,000 shares on March 14, 2025, 50,000 shares on March 17, 2025, 350,000 shares on March 20, 2025 and 75,000 shares on March 26, 2025 as ‘restricted securities’ under Rule 144 of the Securities Act. The proceeds from the sale of common stock will be used for operating capital. Termination of Patent Purchase Agreement On March 13, 2025, the Company and Donald Owens mutually agreed to terminate the Patent Purchase Agreement as of January 24, 2023. As part of the termination, the patents were returned to Mr. Owens, and the 5,000,000 shares of Series A Preferred Stock were canceled. A copy of the Termination Agreement was attached to the Company’s Annual Report filed on Form 10-K as Exhibit 10.27. 21