What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-13 compared with 2025-05-14 · 182 added, 160 removed, 181 unchanged (65% of the section changed)

Management’s Discussion and Analysis

of Financial Condition and Results of Operations Forward-Looking Statements

Management’s Discussion and Analysis of Financial

Condition and Results of Operations Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements.

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cybersecurity concerns.

This list is not an exhaustive list of the factors that may affect any

of our forward-looking statements.

These and other factors should be considered carefully, including those contained in our Annual Report

on Form 10-K under “Risk Factors” for the year ended December 31, 2024, and readers should not place undue reliance on our

forward-looking statements.

Forward looking statements are made based on management’s beliefs, estimates and opinions on the date

the statements are made, and we undertake no obligation to update forward-looking statements if these beliefs, estimates and opinions

or other circumstances should change.

Although we believe that the expectations reflected in the forward-looking statements are reasonable,

we cannot guarantee future results, levels of activity, performance or achievements.

Except as required by applicable law, including the

securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to

actual results.

Our financial statements are stated in United States dollars (US$) and

are prepared in accordance with United States Generally Accepted Accounting Principles.

This list is not an exhaustive list of the factors that may affect

any of our forward-looking statements.

These and other factors should be considered carefully, including those contained in our Annual

Report on Form 10-K under “Risk Factors” for the year ended December 31, 2024, and readers should not place undue reliance

on our forward-looking statements.

Forward looking statements are made based on management’s beliefs, estimates and opinions on

the date the statements are made, and we undertake no obligation to update forward-looking statements if these beliefs, estimates and

opinions or other circumstances should change.

Although we believe that the expectations reflected in the forward-looking statements are

reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Except as required by applicable law,

including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these

statements to actual results.

Our financial statements are stated in United States dollars (US$)

and are prepared in accordance with United States Generally Accepted Accounting Principles.

Company Overview

We, through our wholly owned subsidiary Skinvisible Pharmaceuticals Inc.,

are a pharmaceutical research and development (“R&D”) company that has developed and patented an innovative polymer delivery

system, Invisicare® and formulated over forty topical skin products, which we out-license globally.

We were incorporated in 1998 and

target an estimated $80 billion global skincare and dermatology market and a $30 billion global over-the-counter market as well as other

healthcare / medical and consumer goods markets.

The Company is also exploring new opportunities in large medical markets outside of the

dermatology market such as obesity and other potential markets where a topical or transdermal solution would be a viable alternative.

We, through our wholly owned subsidiary Skinvisible Pharmaceuticals

Inc., are a pharmaceutical research and development (“R&D”) company that has developed and patented an innovative polymer

delivery system, Invisicare® and formulated over forty topical skin products, which we out-license globally.

We were incorporated

in 1998 and target an estimated $80 billion global skincare and dermatology market and a $30 billion global over-the-counter market as

well as other healthcare / medical and consumer goods markets.

The Company is also exploring new opportunities in large medical markets

outside of the dermatology market such as obesity and other potential markets where a topical or transdermal solution would be a viable

With the research and development complete on forty products and numerous

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the duration of time the product remains on the skin and active.

Invisicare is specifically formulated to carry water insoluble active

and certain cationic active ingredients in water-based products without the use of alcohol, silicones, waxes, or other organic solvents.

Invisicare is specifically formulated to carry water insoluble

active and certain cationic active ingredients in water-based products without the use of alcohol, silicones, waxes, or other organic

Products utilizing Invisicare have the proven ability to bond active ingredients to the skin for up to four hours and longer.

non-occlusive and allow normal skin respiration and perspiration while moisturizing and protecting against exposure from a wide variety

of environmental irritants.

They are non-occlusive and allow normal skin respiration and perspiration while moisturizing and protecting against exposure from a wide

variety of environmental irritants.

When topically applied, these formulated products adhere to the skin's

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We generate revenue by:

We develop topical prescription and over-the-counter

products enhanced with Invisicare to license to pharmaceutical and consumer goods companies around the world for an upfront fee and ongoing

We develop topical prescription and over-the-counter products enhanced with Invisicare to license to pharmaceutical and consumer goods companies around the world for an upfront fee and ongoing royalties.

CO-DEVELOPMENT :

We assist pharmaceutical clients in the early development

of the most optimal formulation, which they then take forward into clinical testing.

We assist pharmaceutical clients in the early development of the most optimal formulation, which they then take forward into clinical testing.

LIFE CYCLE MANAGEMENT :

We provide cost-effective solutions to global

pharmaceutical companies by reformulating their products coming off patent with a new Invisicare patent and new product benefits and line

Pharmaceutical companies are under a lot of pressure to develop innovative strategies to counteract the revenue loss from

their drugs coming off patent.

We provide cost-effective solutions to global pharmaceutical companies by reformulating their products coming off patent with a new Invisicare patent and new product benefits and line extensions.

Pharmaceutical companies are under a lot of pressure to develop innovative strategies to counteract the revenue loss from their drugs coming off patent.

License Agreement with Quoin

On October 17, 2019, we entered an Exclusive License Agreement with Quoin

Pharmaceuticals, Inc., a Delaware corporation (“Quoin”) pursuant to which we granted Quoin a license to certain patents for

the development of products for commercial sale.

In exchange for the license, Quoin paid us a license fee of one million USD dollars (USD

$1,000,000) (the “License Fee”) and will additionally pay a single digit royalty interest of all net sales on the licensed

On October 17, 2019, we entered an Exclusive License Agreement with

Quoin Pharmaceuticals, Inc., a Delaware corporation (“Quoin”) pursuant to which we granted Quoin a license to certain patents

for the development of products for commercial sale.

In exchange for the license, Quoin paid us a license fee of one million USD dollars

(USD $1,000,000) (the “License Fee”) and will additionally pay a single digit royalty interest of all net sales on the licensed

products subject to adjustment in certain situations.

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us upon achieving the first to occur of either FDA or European Union regulatory approval for one product licensed.

In addition, and upon the successful approval in the US or European Union,

whichever occurs first, Skinvisible is entitled to receive a single digit royalty percentage of Quoins net sales revenues for any licensed

product covered by the patent rights licensed under the License Agreement.

Plus, Quoin also agreed to pay Skinvisible 25% of any revenues

they receive as royalties in the event that they sublicense any licensed products to a third party.

On June 6, 2022, the Company announced that its licensee Quoin and its

product QRX003, was the first Invisicare delivery technology product to receive U.S.

In addition, and upon the successful approval in the US or European

Union, whichever occurs first, Skinvisible is entitled to receive a single digit royalty percentage of Quoins net sales revenues for any

licensed product covered by the patent rights licensed under the License Agreement.

Plus, Quoin also agreed to pay Skinvisible 25% of

any revenues they receive as royalties in the event that they sublicense any licensed products to a third party.

On June 6, 2022, the Company announced that its licensee Quoin and

its product QRX003, was the first Invisicare delivery technology product to receive U.S.

FDA Acceptance of Investigational New Drug Application

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Quoin's press release highlights protocol amendments aimed at enhancing the data set and potentially expediting regulatory approval.

We believe these protocol amendments could ultimately result in the generation

of a highly compelling data set, which could support regulatory filings and approval for QRX003 as the first treatment for Netherton Syndrome.

We believe these protocol amendments could ultimately result in the

generation of a highly compelling data set, which could support regulatory filings and approval for QRX003 as the first treatment for

Netherton Syndrome.

On March 4, 2024, Quoin announced a further milestone:

it received FDA

Clearance to recruit teen subjects into both ongoing Netherton Syndrome clinical studies.

We believe this announcement is important as:

FDA Clearance to recruit teen subjects into both ongoing Netherton Syndrome clinical studies.

We believe this announcement is important

Clearance to include teen patients in both Quoin’s open label and placebo-controlled studies are expected to significantly expand the number of eligible subjects, potentially expedite recruitment and lead to a more robust data set.

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into Quoin studies.

On October 22, 2024, Quoin announced further International Expansion of

ongoing clinical trials for Netherton Syndrome with two additional clinical sites to be opened in the United Kingdom where both sites

On October 22, 2024, Quoin announced further International Expansion

of ongoing clinical trials for Netherton Syndrome with two additional clinical sites to be opened in the United Kingdom where both sites

are recognized Centers of Excellence for Netherton Syndrome in the UK.

On November 5, 2024, Quoin Pharmaceuticals initiated clinical testing of

its lead product in a pediatric Netherton Syndrome patient.

On November 5, 2024, Quoin Pharmaceuticals initiated clinical testing

of its lead product in a pediatric Netherton Syndrome patient.

This clinical assessment is being performed on a pediatric patient at children’s

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the first evaluation of QRX003, powered by Skinvisible’s Invisicare technology, in a pediatric patient.

On December 19, 2024, Quoin Pharmaceuticals announced FDA clearance to

initiate a new additional Netherton Syndrome (NS) clinical study for QRX003.

On December 19, 2024, Quoin Pharmaceuticals announced FDA clearance

to initiate a new additional Netherton Syndrome (NS) clinical study for QRX003.

The company further announced that the study will be conducted

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License of Netherton Syndrome product QRX003 with Invisicare delivery technology in 60 countries.

On May 20, 2025, Quoin announced that it has been granted an

Orphan Drug Designation in Europe by the European Medicines Agency (EMA) for its lead product QRX003 in Netherton Syndrome.

Orphan Drug Designation in Europe affords the Company incentive

benefits including scientific advice on study protocols, various fee reductions and access to EU grants.

If approved, QRX003 will be granted

10 years of market exclusivity in Europe for the treatment of Netherton Syndrome.

On June 24, 2025, Quoin announced that the FDA granted a Rare

Pediatric Disease (RPD) Designation for QRX003, for the treatment of Netherton Syndrome.

The designation reinforces the potential of QRX003 as a therapeutic

candidate for a profoundly underserved pediatric population.

The FDA’s Rare Pediatric Disease Designation program is intended to

encourage the development of new therapies for serious and life-threatening diseases that primarily affect individuals under 18 years

If a New Drug Application (NDA) for QRX003 is approved, upon reauthorization of the program Quoin may be eligible to receive a

Priority Review Voucher (PRV), which can be redeemed to receive priority review for another marketing application or may be sold or transferred.

License Agreement with Ovation Science

On February 3, 2020, we entered into a License Agreement with Ovation Science

On February 3, 2020, we entered into a License Agreement with Ovation

pursuant to which Skinvisible granted to Ovation Science Inc.

a license for the manufacture and distribution rights to its hand sanitizer

product, DermSafe.

a license for the manufacture and distribution rights to its

hand sanitizer product, DermSafe.

In exchange for the license, Ovation Science Inc.

agreed to pay to Skinvisible a royalty percentage on all net sales

on the licensed products subject to adjustment in certain situations plus a license fee payable in year 3 of the agreement if it chooses

to continue the license.

On June 10, 2020, Ovation Science paid us the fee otherwise due in year

3 and in exchange we extended the term of Ovation Science’s license to 6-years and granted Ovation additional rights to its hand

sanitizer products and assigned Canadian Identification Numbers 02310589 and 02355558, all DermSafe Trademarks, DermSafe clinical data

and the right to patent DermSafe where not currently patented.

In exchange for these rights, Ovation Science paid a $100,000 license fee.

agreed to pay to Skinvisible a royalty percentage

on all net sales on the licensed products subject to adjustment in certain situations plus a license fee payable in year 3 of the agreement

if it chooses to continue the license.

On June 10, 2020, Ovation Science paid us the fee otherwise due in

year 3 and in exchange we extended the term of Ovation Science’s license to 6-years and granted Ovation additional rights to its

hand sanitizer products and assigned Canadian Identification Numbers 02310589 and 02355558, all DermSafe Trademarks, DermSafe clinical

data and the right to patent DermSafe where not currently patented.

In exchange for these rights, Ovation Science paid a $100,000 license

We completed the required assignments during the year ending December 31, 2020 and recognized $100,000 in revenue.

Patent Applications for Transdermal Delivery for Obesity and Glucose-Controlling

In May and June of 2024, we filed provisional patent applications covering

formulations that leverage Invisicare for the transdermal administration of obesity drugs and glucose-controlling agents for diseases

such as diabetes.

The patents are titled "Transdermal Delivery Composition for Delivery of CB-1 Receptor Antagonists and/or GLP-1

Receptor Agonists, and Method of Delivery” and “Transdermal Delivery Composition for Delivery of at Least One Glucose Controlling

Agent, and Method of Delivering at Least One Glucose Controlling Agent.”

In May and June of 2024, we filed provisional patent applications

covering formulations that leverage Invisicare for the transdermal administration of obesity drugs and glucose-controlling agents for

diseases such as diabetes.

The patents are titled "Transdermal Delivery Composition for Delivery of CB-1 Receptor Antagonists and/or

GLP-1 Receptor Agonists, and Method of Delivery” and “Transdermal Delivery Composition for Delivery of at Least One Glucose

Controlling Agent, and Method of Delivering at Least One Glucose Controlling Agent.”

The patent applications focus on the use of Invisicare in a transdermal

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for administering maintenance doses for these medications.

We are actively pursuing strategic partnerships with pharmaceutical and/or

biotech companies to facilitate the introduction of the first transdermal obesity therapies to market and to explore the application of

its delivery platform across diverse disease domains.

Results of Operations for the Three Months Ended March 31, 2025 and

Our revenue, which we combine from product sales, royalties on patent licenses

and license fees (product development fees), was $5,000 for the three months ended March 31, 2025 as compared with $5,000 for the same

period ended March 31, 2024.

We hope to generate more revenues from our licenses with Quoin and Ovation

We also plan to enter into commercial arrangements with pharma and biotech companies to exploit our patent applications that

were recently filed, and we hope to generate revenue from these efforts in the future.

We had $0 in cost of revenues for the three months ended March 31, 2025,

compared with $0 in cost of revenues for the three months ended March 31, 2024, so our gross profit was $5,000 and $5,000 for the three

months ended March 31, 2025 and 2024, respectively.

We are actively pursuing strategic partnerships with pharmaceutical

and/or biotech companies to facilitate the introduction of the first transdermal obesity therapies to market and to explore the application

of its delivery platform across diverse disease domains.

Results of Operations for the Three and Six Months Ended June

30, 2025 and 2024

Our revenue, which we combine from product sales, royalties on patent

licenses and license fees (product development fees), was $5,000 for the three months ended June 30, 2025 as compared with $5,000 for

the same period ended June 30, 2024.

Our revenue, which we combine from product sales, royalties on patent licenses and license fees (product

development fees), was $10,000 for the six months ended June 30, 2025 as compared with $10,000 for the same period ended June 30, 2024.

We hope to generate more revenues from our licenses with Quoin and

Ovation for the second half of 2025.

We also plan to enter into commercial arrangements with pharma and biotech companies to exploit our

patent applications that were recently filed, and we hope to generate revenue from these efforts in the future.

We had $0 in cost of revenues for the three and

six months ended June 30, 2025, compared with $0 in cost of revenues for the three and six months ended June 30, 2024, so our gross

profit was $5,000 and

$5,000 for the three months ended June 30, 2025 and 2024, respectively, and $10,000 and

$10,000 for the six months ended June 30, 2025 and 2024, respectively.

Operating Expenses

Operating expenses increased to $144,852 for the three months ended March

31, 2025, from $128,184 for the same period ended March 31, 2024.

Our operating expenses for all periods consisted mainly of selling, general

and administrative expenses.

Our selling, general and administrative expenses for the three months ended

March 31, 2025, consisted mainly of accrued salaries and wages of $87,942 and audit and accounting of $11,609.

In comparison, our selling,

general and administrative expenses for the three months ended March 31, 2024, consisted mainly of accrued salaries and wages of $87,942

and audit and accounting of $17,610.

We expect our operating expenses will increase in the future as the Company

begins to generate more licensing revenue.

Other Income (Expenses)

We had other income of $141,153 for the three months ended March 31,

2025, as compared with other expenses of $167,188 for the three months ended March 31, 2024.

Our other expense for the three months ended March 31, 2025 consisted mainly

of interest expense of $141,153.

Our other expenses for the three months ended March 31, 2024 consisted mainly of interest expense of

$166,408 and losses on derivative liability of $780.

The decrease in other expenses is the result of decreased debt as of March 31, 2025.

We recorded a net loss of $281,005 for the three months ended March 31,

2025, as compared with a net loss of $290,372 for the three months ended March 31, 2024.

Operating expenses increased to $141,237 for the three months ended

June 30, 2025, from $147,693 for the same period ended June 30, 2024.

Operating expenses increased to $286,089 for the six months ended

June 30, 2025, from $275,877 for the same period ended June 30, 2024.

Our operating expenses for all periods consisted mainly of selling,

general and administrative expenses.

Our selling, general and administrative expenses

for the three months ended June 30, 2025, consisted mainly of accrued salaries and wages of $84,066 and audit and accounting of $17,610.

In comparison, our selling, general and administrative expenses for the three months ended June 30, 2024, consisted mainly of accrued

salaries and wages of $87,442 and audit and accounting of $14,028.

Our selling, general and administrative expenses

for the six months ended June 30, 2025, consisted mainly of accrued salaries and wages of $172,008 and audit and accounting of $29,219.

In comparison, our selling, general and administrative expenses for the six months ended June 30, 2024, consisted mainly of accrued salaries

and wages of $175,885 and audit and accounting of $31,638.

We expect our operating expenses will increase in the future as the

Company begins to generate more licensing revenue.

Other Expense

We had other expense of $138,190 for the three months ended June 30,

2025, as compared with other expenses of $160,756 for the three months ended June 30, 2024.

We had other expense of $279,343 for the six

months ended June 30, 2025, as compared with other expenses of $327,944 for the six months ended June 30, 2024.

Our other expense for the three and six months ended June 30, 2025

consisted mainly of interest expense netted against other income related to the sale of polymer.

Our other expense for the three and six

months ended June 30, 2024 consisted mainly of interest expense, netted against a gain on settlement of debt and gain on derivative liability

We recorded a net loss of $274,427 for the three months ended June

30, 2025, as compared with a net loss of $303,449 for the three months ended June 30, 2024.

We recorded a net loss of $555,432 for the

six months ended June 30, 2025, as compared with a net loss of $593,821 for the six months ended June 30, 2024.

Liquidity and Capital Resources

Going concern – The accompanying financial statements have been prepared on a going

concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

Company has incurred cumulative net losses of $40,227,147 since its inception and requires capital for its contemplated operational and

marketing activities to take place.

The Company’s ability to generate the necessary funds through licensing of its core products

or the ability to raise additional capital through the future issuances of common stock or debt is unknown.

The obtainment of additional

financing, the successful development of the Company’s contemplated plan of operations, and its transition, ultimately, to the attainment

of profitable operations are necessary for the Company to continue operations.

These factors, among others, raises substantial doubt about

the Company’s ability to continue as a going concern.

The condensed consolidated financial statements of the Company do not include

any adjustments that may result from the outcome of these aforementioned uncertainties.

As of March 31, 2025, we had total current assets of $38,305 and total

Going concern – The accompanying

financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of

liabilities in the normal course of business.

The Company has incurred cumulative net losses of $40,501,574 since its inception and requires

capital for its contemplated operational and marketing activities to take place.

The Company’s ability to generate the necessary

funds through licensing of its core products or the ability to raise additional capital through the future issuances of common stock or

debt is unknown.

The obtainment of additional financing, the successful development of the Company’s contemplated plan of operations,

and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations.

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

The condensed consolidated

financial statements of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties.

As of June 30, 2025, we had total current assets of $33,102 and total

assets in the amount of $143,375.

Our total current liabilities as of March 31, 2025 were $4,256,903.

Our total current liabilities as of June 30, 2025 were $4,525,151.

We had a working capital deficit

of $4,218,598 as of March 31, 2025, compared with a working capital deficit of $3,615,238 as of December 31, 2024.

Operating activities used $31,720 in cash for the

three months ended March 31, 2025, as compared with $12,291 used for the three months ended March 31, 2024.

of $4,492,049 as of June 30, 2025, compared with a working capital deficit of $3,615,238 as of December 31, 2024.

Operating activities used $44,996 in cash for

the six months ended June 30, 2025, as compared with $40,380 used for the six months ended June 30, 2024.

Our negative operating cash

flows for 2024 and 2025 was largely the result of our net loss for those quarters, mainly offset by changes in operating assets and liabilities

flows for 2024 and 2025 were largely the result of our net loss for those quarters, mainly offset by changes in operating assets and liabilities

and the amortization of debt discount and amortization.

We used no cash in investing activities for the three months ended March

31, 2025 and 2024.

Cash flow provided from financing activities was $34,780 for the three

months ended March 31, 2025, as compared with $19,500 provided by cash flows for financing activities during the three months ended March

We used no cash in investing activities for the six months ended June

30, 2025, but used $9,218 in cash for the purchase of intangible assets in the same period ended 2024.

Cash flow provided from financing activities was $34,780 for the six

months ended June 30, 2025, as compared with $55,700 provided by cash flows for financing activities during the six months ended June

The features of the debt instruments and payables concerning our financing

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Off Balance Sheet Arrangements

As of March 31, 2025, there were no off-balance sheet arrangements.

As of June 30, 2025, there were no off-balance sheet arrangements.

Critical Accounting Policies

In December 2001, the SEC requested that all registrants list their most

“critical accounting polices” in the Management Discussion and Analysis.

In December 2001, the SEC requested that all registrants list their

most “critical accounting polices” in the Management Discussion and Analysis.

The SEC indicated that a “critical accounting

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performance obligations are warranted, and thereby have earned the right to receive reasonably assured payments for products sold and

Royalty sales – We also recognize royalty revenue from licensing

our patented product formulations only when earned, with no further contingencies or material performance obligations are warranted, and

thereby have earned the right to receive and retain reasonably assured payments.

Royalty sales – We also recognize royalty revenue from

licensing our patented product formulations only when earned, with no further contingencies or material performance obligations are warranted,

and thereby have earned the right to receive and retain reasonably assured payments.

Distribution and license rights sales – We also recognize

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Shipping and handling costs is not a significant portion of the cost of revenue.

Accounts Receivable – Accounts receivable is comprised of

uncollateralized customer obligations due under normal trade terms requiring payment within 30 days from the invoice date.

Accounts Receivable – Accounts receivable is comprised

of uncollateralized customer obligations due under normal trade terms requiring payment within 30 days from the invoice date.

amount of accounts receivable is reviewed periodically for collectability.

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if any, of the balance that will not be collected.

As of March 31, 2025, we had not recorded a reserve for doubtful accounts.

As of June 30, 2025, we had not recorded a reserve for doubtful accounts.

Recently Issued 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 815-40),”

which reduces the number of accounting models in ASC 470-20 that require separate accounting for embedded conversion features.

a convertible debt instrument will be accounted for as a single liability measured at its amortized cost as long as no other features

require bifurcation and recognition as derivatives.

By removing those separation models, the effective interest rate of convertible debt

instruments will be closer to the coupon interest rate.

Further, the diluted net income per share calculation for convertible instruments

will require the Company to use the if-converted method.

The treasury stock method should no longer be used to calculate diluted net income

per share for convertible instruments.

The amendment will be effective for the Company for fiscal years beginning after December 15, 2021,

including interim periods within those fiscal years.

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

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

We adopted this ASU for the year ended December 31 ,2022.

no impact on our financial statements for the three months ended March 31, 2025.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting

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condensed consolidated operating results to make decisions about allocating resources and assessing performance for the entire Company.

In July 2025, the FASB issued Accounting Standards Update

2025-05, Financial Instruments – Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract

Assets ("ASU 2025-05").

ASU 2025-05 provides a practical expedient that all entities can use when estimating expected

credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606, Revenue

from Contracts with Customers.

Under this practical expedient, an entity is allowed to assume that the current conditions it

has applied in determining credit loss allowances for current accounts receivable and current contract assets remain unchanged for the

remaining life of those assets.

ASU 2025-05 is effective for fiscal years beginning after December 15, 2025, and interim reporting periods

in those years.

Entities that elect the practical expedient and, if applicable, make the accounting policy election are required to apply

the amendments prospectively.

The Company is currently evaluating the impact of ASU 2025-05 on its financial statements and disclosures.

The Company does not believe that other standards, which have

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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