What changed in this filing

/stocks — the workspaceLOADING

Item 7. Management’s Discussion and Analysis

2026-03-31 compared with 2025-04-14 · 156 added, 144 removed, 44 unchanged (87% of the section changed)

2 unchanged sentences

Forward-Looking Statements

This quarterly report

contains forward-looking statements.

Forward-looking statements are projections of events, revenues, income, future economic performance

or management’s plans and objectives for our future operations.

In some cases, you can identify forward-looking statements by terminology

such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”,

“estimates”, “predicts”, “potential” or “continue” or the negative of these terms or

other comparable terminology.

These statements are only predictions and involve known and unknown risks, uncertainties and other factors,

including the risks in the section entitled “Risk Factors” and the risks set out below, any of which may cause our or our

industry’s actual results, levels of activity, performance or achievements to be materially different from any future results,

levels of activity, performance or achievements expressed or implied by these forward-looking statements.

These risks include, by way

of example and not in limitation:

uncertainty of profitability based upon our history of losses;

• legislative

or regulatory changes concerning skincare research and therapies;

related to failure to obtain adequate financing on a timely basis and on acceptable terms

to continue as going concern;

related to our operations and uncertainties related to our business plan and business strategy;

in economic conditions;

• uncertainty

with respect to intellectual property rights, protecting those rights and claims of infringement

of other’s intellectual property;

• competition;

• cybersecurity

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 this Annual Report under “Risk Factors,” and readers should not place undue reliance on our forward-looking

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 annual report contains forward-looking

Forward-looking statements are projections of events, revenues, income, future economic performance or

management’s plans and objectives for our future operations.

In some cases, you can identify forward-looking statements by

terminology such as “may”, “should”, “expects”, “plans”, “anticipates”,

“believes”, “estimates”, “predicts”, “potential” or “continue” or the

negative of these terms or other comparable terminology.

These statements are only predictions and involve known and unknown risks,

uncertainties and other factors, including the risks in the section entitled “Risk Factors” and the risks set out below,

any of which may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially

different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking

These risks include, by way of example and not in limitation:

the uncertainty of profitability based upon our history of losses;

legislative or regulatory changes concerning skincare research and therapies;

risks related to failure to obtain adequate financing on a timely basis and on acceptable terms to continue as going concern;

risks related to our operations and uncertainties related to our business plan and business strategy;

changes in economic conditions;

uncertainty with respect to intellectual property rights, protecting those rights and claims of infringement of other’s intellectual property;

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 this Annual Report under “Risk Factors,” 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

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.

Results of Operations for the Years Ended December

31, 2025 and 2024

Our revenue, which we combine from product

sales, royalties on patent licenses and license fees (product development fees), was $20,000 for each of the years ended December

31, 2024 and 2023.

Our revenue, which we combine from product sales,

royalties on patent licenses and license fees (product development fees), was $20,000 for the year ended December 31, 2025 as compared

with $20,000 for the year ended 2024.

We hope to generate more revenues from our licenses

3 unchanged sentences

We had $0 in cost of revenues for the year ended

December 31, 2024 and 2023, so our gross profit was $20,000, or 100% of sales for 2024 and 2023.

December 31, 2025 and 2024, so our gross profit was $20,000 and $20,000, or 100% of sales for 2025 and 2024.

Operating Expenses

Operating expenses increased to $609,589 for the

year ended December 31, 2024, from $510,375 for the year ended December 31, 2023.

Our operating expenses for all periods consisted

mainly of selling, general and administrative expenses.

Our selling, general and administrative expenses

for the year December 31, 2024, consisted mainly of accrued salaries and wages of $351,269 and audit and accounting of $56,857.

Operating expenses decreased to $516,315 for the year

ended December 31, 2025, from $609,589 for the year ended December 31, 2024.

Our operating expenses for all periods consisted mainly

of selling, general and administrative expenses, which, consisted mainly of accrued salaries and wages and audit and accounting fees.

Our selling, general and administrative expenses for

the year December 31, 2025, consisted mainly of accrued salaries and wages of $347,892 and audit and accounting of $58,479.

In comparison,

1 unchanged sentence

and audit and accounting of $56,857.

We expect our operating expenses will increase

in the future as the Company begins to generate more licensing revenue.

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 $23,935 for the year ended

December 31, 2024, as compared with other expenses of $1,892,065 for the year ended December 31, 2023.

Our other income for the year

ended December 31, 2024, consisted mainly of interest expense netted against a gain on settlement of debt.

Our other expenses for the

year ended December 31, 2023 consisted mainly of interest expense, netted against and gain on derivative liability changes.

We had other expenses of $567,719 for the year ended

December 31, 2025, as compared with other income of $23,935 for the year ended December 31, 2024.

Our other expense for the year ended December

31, 2025 consisted mainly of interest expense netted against other income related to the sale of polymer.

Our other expense for the year

ended December 31, 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 $1,064,034 for the year

1 unchanged sentence

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.

The Company has incurred cumulative net losses of $39,946,142 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

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 consolidated financial

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

As of December 31, 2024, we had total current

assets of $42,028 and total assets in the amount of $158,217.

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 $41,010,176 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 consolidated financial statements of the Company do not include

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

As of December 31, 2025, we had total current assets

of $27,531 and total assets in the amount of $127,567.

Our total current liabilities as of December 31, 2025, were $5,017,945.

We had a working capital deficit of $3,677,659 as of December 31, 2024, compared with a working capital deficit of $3,476,947 as of December

Operating activities used $69,834 in cash for

the year ended December 31, 2024, as compared with $75,969 used for the year ended December 31, 2023.

Our negative operating cash flows

for 2024 was the result of our net loss for the year, mainly offset by changes in operating assets and liabilities and the amortization

of debt discount.

Our negative operating cash flows for 2023 was the result of our net loss for the year, mainly offset by changes in

operating assets and liabilities and the amortization of debt discount.

We used cash of $9,218 and $10,521 in investing

activities for the years ended December 31, 2024 and 2023, respectively, for the purchase of fixed and intangible assets.

a working capital deficit of $4,990,414 as of December 31, 2025, compared with a working capital deficit of $3,637,658 as of December

Operating activities used $38,410 in cash for the

year ended December 31, 2025, as compared with $69,834 used for the year ended December 31, 2024.

Our negative operating cash flows for

2025 and 2024 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 cash of $4,086 and $9,218 in investing activities

for the years ended December 31, 2025 and 2024, respectively, for the purchase of intangible and fixed assets.

Cash flows provided by financing activities during

1 unchanged sentence

Our positive financing cash flow for the year ended December 31, 2025 resulted from common stock issued for cash and proceeds from notes

Our positive financing cash flow for the year ended December 31, 2023 resulted from proceeds from related part notes.

Our positive financing cash flow for the year ended December 31, 2024 resulted from proceeds from related parties notes.

The features of the debt instruments and payables

concerning our financing activities are detailed in the footnotes to our financial statements.

Based upon our current financial condition, we

do not have sufficient cash to operate our business at the current level for the next twelve months.

Based upon our current financial condition, we do

not have sufficient cash to operate our business at the current level for the next twelve months.

We intend to fund operations through

7 unchanged sentences

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

6 unchanged sentences

assured payments for products sold and delivered.

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 revenue from distribution and license rights only when earned (and are amortized over a five-year

period), with no further contingencies or material performance obligations are warranted, and thereby have earned the right to receive

and retain reasonably assured payments.

Costs of Revenue – Cost

of revenue includes raw materials, component parts, and shipping supplies.

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.

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 revenue from distribution and license rights only when earned (and are amortized over a five-year period), with

no further contingencies or material performance obligations are warranted, and thereby have earned the right to receive and retain reasonably

assured payments.

Costs of Revenue – Cost of

revenue includes raw materials, component parts, and shipping supplies.

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.

The carrying amount of accounts receivable is reviewed periodically for collectability.

management determines that collection is unlikely, an allowance that reflects management’s best estimate of the amounts that

will not be collected is recorded.

Management reviews each accounts receivable balance that exceeds 30 days from the invoice date

and, based on an assessment of creditworthiness, estimates the portion, if any, of the balance that will not be collected.

December 31, 2024, we had not recorded a reserve for doubtful accounts.

If management determines that collection

is unlikely, an allowance that reflects management’s best estimate of the amounts that will not be collected is recorded.

reviews each accounts receivable balance that exceeds 30 days from the invoice date and, based on an assessment of creditworthiness, estimates

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

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

Recently Issued Accounting Pronouncements

In August 2020, FASB issued

ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity;

Own Equity (“ASU 2020-06”), as part of its

overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the

usefulness of the information provided to users of financial statements.

Among other changes, the new guidance removes from GAAP separation

models for convertible debt that require the convertible debt to be separated into a debt and equity component, unless the conversion

feature is required to be bifurcated and accounted for as a derivative or the debt is issued at a substantial premium.

As a result, after

adopting the guidance, entities will no longer separately present such embedded conversion features in equity, and will instead account

for the convertible debt wholly as debt.

The new guidance also requires use of the “if-converted” method when calculating

the dilutive impact of convertible debt on earnings per share, which is consistent with the Company’s current accounting treatment

under the current guidance.

The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2021,

and interim periods within those fiscal years, with early adoption permitted, but only at the beginning of the fiscal year.

is currently evaluating the impact the adoption of ASU 2020-06 will have on the Company’s financial statements.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280):

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

Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.

The amendments

in this ASU require disclosures, on an annual and interim basis, of significant segment expenses that are regularly provided to the chief

operating decision maker (“CODM”), as well as the aggregate amount of other segment items included in the reported measure

of segment profit or loss.

This ASU requires that a public entity disclose the title and position of the CODM and an explanation of how

the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources.

This ASU is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, with early

adoption permitted.

The amendments in this ASU should be applied retrospectively to all prior periods presented in the financial statements.

The Company adopted the ASU and determined that its adoption did not have a material impact on the Company’s consolidated financial

statements and related disclosures.

As defined in the ASU, operating segments are components of an enterprise about which discrete financial

information is regularly provided to the CODM in making decisions on how to allocate resources and assess performance for the organization.

The Company operates and manages its business as one reportable and operating segment.

The Company’s CODM is the Chief Executive

The Company’s CODM reviews consolidated operating results to make decisions about allocating resources and assessing performance

for the entire Company.

The Company does not believe that other standards, which have been issued but are not yet effective, will have

a significant impact on its financial statements.

Quantitative and Qualitative Disclosures About Market Risk

reporting company is not required to provide the information required by this Item.

The amendments in this ASU require disclosures, on an annual and

interim basis, of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”),

as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss.

This ASU requires that

a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment

profit or loss in assessing segment performance and deciding how to allocate resources.

This ASU is effective for fiscal years beginning

after December 15, 2023, including interim periods within those fiscal years, with early adoption permitted.

The amendments in this ASU

should be applied retrospectively to all prior periods presented in the financial statements.

The Company adopted the ASU and determined

that its adoption did not have a material impact on the Company’s consolidated financial statements and related disclosures.

defined in the ASU, operating segments are components of an enterprise about which discrete financial information is regularly provided

to the CODM in making decisions on how to allocate resources and assess performance for the organization.

The Company operates and manages

its business as one reportable and operating segment.

The Company’s CODM is the Chief Executive Officer.

The Company’s CODM

reviews 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.

In November 2025, the FASB issued ASU No.

Interim Reporting (Topic 270):

Narrow-Scope Improvements.

The amendments clarify and reorganize existing interim reporting guidance, including

the scope of Topic 270 and interim disclosure requirements, and introduce a disclosure principle requiring entities to disclose material

events or changes occurring since the most recent annual reporting period.

ASU 2025-11 is effective for interim reporting periods within

annual reporting periods beginning after December 15, 2027.

Early adoption is permitted.

The Company is currently evaluating the impact

of ASU 2025-11 on its financial statements and related disclosures.

In December 2025, the FASB issued ASU 2025-12, Accounting

Standards Codification Improvements, which clarifies guidance and makes minor improvements across various topics, including earnings per

share, receivables, revenue, income taxes, and equity.

This ASU is effective for annual periods beginning after December 15, 2026, and

interim periods within those annual periods, with early adoption permitted.

The Company is currently evaluating the impact of the new

guidance on its financial statements and disclosures.

The Company does not believe that other standards,

which have been issued but are not yet effective, will have a significant impact on its financial statements.

Quantitative and Qualitative Disclosures

About Market Risk

A smaller reporting company is not required to provide

the information required by this Item.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis