What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-05-13 compared with 2025-11-13 · 245 added, 220 removed, 152 unchanged (75% 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.

17 unchanged sentences

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, 2025, 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

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.

With the research and development complete on forty products and numerous

14 unchanged sentences

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

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.

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

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

variety of environmental irritants.

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

22 unchanged sentences

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.

1 unchanged sentence

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

6 unchanged sentences

Positive Initial Data and Clean Safety Profile:

The trials have demonstrated positive initial data and a clean safety profile, leading to the implementation of an optimization plan.

have demonstrated positive initial data and a clean safety profile, leading to the implementation of an optimization plan.

Optimization Plan Implementation:

Quoin has increased the size of both clinical trials significantly and adjusted dosing frequency to twice-daily from once-daily for both trials.

Quoin has increased

the size of both clinical trials significantly and adjusted dosing frequency to twice-daily from once-daily for both trials.

Elimination of Lower Dose:

In the blinded trial, a lower dose has been eliminated based on the positive outcomes observed.

In the blinded trial, a lower

dose has been eliminated based on the positive outcomes observed.

Protocol Amendments:

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.

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.

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

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.

This development represents the first ever inclusion of non-adult subjects in Netherton Syndrome clinical studies conducted under an open Investigational New Drug Application.

It is believed that the inclusion of this patient population in Quoin’s studies will be a critical component of the development of a robust data set that could result in regulatory approval with a broad label as QRX003 is being tested both as monotherapy and in conjunction with off-label treatments.

it received FDA

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

We believe this announcement is important as:

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.

This development represents the first ever inclusion

of non-adult subjects in Netherton Syndrome clinical studies conducted under an open Investigational New Drug Application.

It is believed that the inclusion of this patient population

in Quoin’s studies will be a critical component of the development of a robust data set that could result in regulatory approval

with a broad label as QRX003 is being tested both as monotherapy and in conjunction with off-label treatments.

On June 27, 2024, Quoin announced an International Expansion of ongoing

clinical trials for Netherton Syndrome in Saudia Arabia.

clinical trials for Netherton Syndrome in Saudi Arabia.

The site is currently treating Netherton patients who are eligible for recruitment

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

1 unchanged sentence

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

10 unchanged sentences

Quoin also announced other key developments, including:

Significant clinical improvements in both open label and pediatric studies including subject's disease classification improved from "severe" to "mild" after 6 weeks dosing;

No adverse events or safety concerns reported to date from each of Quoin's ongoing clinical studies in Netherton Syndrome subjects;

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.

Significant clinical improvements in both open label

and pediatric studies including subject's disease classification improved from "severe" to "mild" after 6 weeks dosing;

No adverse events or safety concerns reported to date

from each of Quoin's ongoing clinical studies in Netherton Syndrome subjects;

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.

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 of age.

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.

On January 27, 2026 Quoin Pharmaceuticals Announced 1.

Pharmaceuticals Announces “FDA Grants Fast Track Designation for QRX003 for the Treatment of Netherton Syndrome” .

Track Designation facilitates development and expedites regulatory review of therapies addressing serious conditions with significant

unmet medical need.

Fast Track Designation follows Pediatric Rare Disease and Orphan Drug Designation previously granted by the FDA and

Orphan Drug Designation granted by the European Medicines Agency for QRX003 in Netherton Syndrome.

QRX003 lotion (4%) currently being

evaluated in two late-stage whole-body clinical trials for treatment of Netherton Syndrome.

Saudi Arabia - Quoin Pharmaceuticals Files

Breakthrough Medicine Designation Application in Saudi Arabia for QRX003 in Netherton Syndrome.

If granted, QRX003 could be approved for

sale and reimbursement in Saudi Arabia as the first ever approved treatment for Netherton Syndrome.

Japan - Quoin Pharmaceuticals Announces

Submission to Japanese MHLW for Orphan Drug Designation for QRX003 and has been approved for both Fast Track and Regulatory Review Status

for QRX003 for Netherton Syndrome.

On March 25, 2026 Quoin Pharmaceuticals Ltd.

provided a clinical and regulatory

update from its recent constructive Type C meeting with the U.S.

Food and Drug Administration (FDA) for its lead product candidate, QRX003,

for the treatment of Netherton Syndrome (NS):

Key highlights from the meeting include:

FDA indicated that a single Phase 3 study may be sufficient

to support marketing approval for QRX003 for Netherton Syndrome, which is an alternative to the traditional expectation for two Phase

3 studies in NS patients originally proposed by the Company.

FDA expressed openness to an alternative innovative clinical

trial design such as a randomized withdrawal or a randomized delayed start for a pivotal Phase 3 study.

Such trial design would likely

not include a traditional upfront vehicle or placebo control.

Based on the feedback from the meeting, Quoin is implementing

FDA recommendations consistent with the meeting outcomes, ensuring its readiness to advance toward registrational Phase 3 development.

Quoin will submit clinical data from the ongoing Phase 2 and pediatric investigator studies and plans to request a meeting to discuss

this data prior to initiating the Phase 3 pivotal program for QRX003 to gain alignment with FDA on the design of the program.

Quoin remains

on track to complete patient recruitment into its Phase 3 program by the end of 2026 and to potentially file for FDA approval for QRX003

as the first treatment for Netherton Syndrome in 2027.

License Agreement with Ovation Science

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

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

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

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.

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

7 unchanged sentences

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

9 unchanged sentences

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 and Nine Months Ended September

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 September 30, 2025 as compared with $5,000

for the same period ended September 30, 2024.

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

fees (product development fees), was $15,000 for the nine months ended September 30, 2025 as compared with $15,000 for the same period

ended September 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 nine months ended September 30, 2025, compared with $0 in cost of revenues for the three and nine months ended September 30,

2024, so our gross profit was $5,000 and $5,000 for the

three months ended September 30, 2025 and 2024, respectively, and $15,000 and

$15,000 for the nine months ended September 30, 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 Months Ended March 31, 2026 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, 2026 as compared with $5,000 for the same

period ended March 31, 2025.

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, 2026,

compared with $0 in cost of revenues for the three months ended March 31, 2025, so our gross profit was $5,000 and $5,000 for the three

months ended March 31, 2026 and 2025, respectively.

Operating Expenses

Operating expenses decreased to $130,938 for the three months ended

September 30, 2025, from $129,969 for the same period ended September 30, 2024.

Operating expenses decreased to $397,146 for the nine

months ended September 30, 2025, from $405,846 for the same period ended September 30, 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 nine months

ended September 30, 2025, consisted mainly of accrued salaries and wages of $259,950 and audit and accounting of $39,828.50.

In comparison,

our selling, general and administrative expenses for the nine months ended September 30, 2024, consisted mainly of accrued salaries and

wages of $262,827 and audit and accounting of $37,747.

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 $144,188 for the three months ended September

30, 2025, as compared with other expenses of $161,635 for the three months ended September 30, 2024.

We had other expense of $423,531

for the nine months ended September 30, 2025, as compared with other expenses of $489,579 for the nine months ended September 30, 2024.

Our other expense for the three and nine months ended September 30,

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

Our other expense for the three

and nine months ended September 30, 2024 consisted mainly of interest expense, netted against a gain on settlement of debt and gain on

derivative liability changes.

We recorded a net loss of $250,245 for the three months ended September

30, 2025, as compared with a net loss of $286,604 for the three months ended September 30, 2024.

We recorded a net loss of $805,677 for

the nine months ended September 30, 2025, as compared with a net loss of $880,425 for the nine months ended September 30, 2024.

March 31, 2026, from $144,852 for the same period ended March 31, 2025.

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, 2026, consisted mainly of accrued salaries and wages of $86,442 and audit and accounting of $18,110.

In comparison, 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.

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 expenses of $141,246 for the three months ended March 31,

2026, compared with other income of $141,153 for the three months ended March 31, 2025.

Our other expense for the three months ended March 31, 2026 consisted mainly

of interest expense of $141,246.

Our other expense for the three months ended March 31, 2025 consisted mainly of interest expense of $141,153.

We recorded a net loss of $267,184 for the three months ended March 31,

2026, as compared with a net loss of $281,005 for the three months ended March 31, 2025.

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 $40,751,819 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 September 30, 2025, we had total current assets of $28,469 and

total assets in the amount of $133,623.

Our total current liabilities as of September 30, 2025 were $4,765,644.

We had a working capital

deficit of $4,737,175 as of September 30, 2025, compared with a working capital deficit of $3,615,238 as of December 31, 2024.

Operating activities used $40,385 in cash for the nine months ended

September 30, 2025, as compared with $52,922 used for the nine months ended September 30, 2024.

Our negative operating cash 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 $4,086 in cash for the purchase of intangible assets in investing

activities for the nine months ended September 30, 2025, and used $9,218 in cash in the same period ended 2024.

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

months ended September 30, 2025, as compared with $61,864 provided by cash flows for financing activities during the nine months ended

September 30, 2024.

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 $41,277,360 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 March 31, 2026, we had total current assets of $24,390 and total

assets in the amount of $119,419.

Our total current liabilities as of March 31, 2026 were $5,276,981.

We had a working capital deficit

of $5,252,591 as of March 31, 2026, compared with a working capital deficit of $4,990,414 as of December 31, 2025.

Operating activities used $822 in cash for

the three months ended March 31, 2026, as compared with $31,720 used for the three months ended March 31, 2025.

Our negative operating

cash flows for 2026 and 2025 was 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, 2026 and 2025.

Cash flow provided from financing activities was $0 for the three months

ended March 31, 2025, as compared with $34,780 provided by cash flows for financing activities during the three months ended March 31,

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.

We intend to fund operations through increased sales and

debt and/or equity financing arrangements, which may be insufficient to fund expenditures or other cash requirements.

We plan to seek

additional financing in a private equity offering to secure funding for operations.

There can be no assurance that we will be successful

in raising additional capital.

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

increased sales and debt and/or equity financing arrangements, which may be insufficient to fund expenditures or other cash requirements.

We plan to seek additional financing in a private equity offering to secure funding for operations.

There can be no assurance that we

will be successful in raising additional capital.

Off Balance Sheet Arrangements

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

As of March 31, 2026, 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

5 unchanged sentences

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

4 unchanged sentences

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.

4 unchanged sentences

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

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

As of March 31, 2026, we had not recorded a reserve for doubtful accounts.

Recently Issued Accounting Pronouncements

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

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 condensed consolidated financial statements and related disclosures.

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

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):

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

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

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

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

amendments prospectively.

The Company has evaluated the impact of ASU 2025-05 on its financial statements and disclosures and has

determined that it does not a have material impact on the financial statements.

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

2 unchanged sentences

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis