What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-13 compared with 2026-05-13 · 80 added, 68 removed, 329 unchanged (31% of the section changed)

260 unchanged sentences

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.

Results of Operations for the Three and Six Months Ended June 30, 2026

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, 2026 as compared

with $5,000 for the same period ended June 30, 2025.

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, 2026 as compared with $10,000 for the same period

ended June 30, 2025.

We hope to generate more revenues from our licenses

with Quoin and Ovation in 2026.

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.

Operating Expenses

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

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.

Operating expenses were $117,817 for the three months

ended June 30, 2026, as compared with $141,237 for the same period ended June 30, 2025.

Operating expenses were $248,755 for the six months

ended June 30, 2026, as compared with $286,089 for the same period ended June 30, 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 June 30,

2026, consisted mainly of accrued salaries and wages of $86,463 and audit and accounting of $14,473.

In comparison, 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.

Our selling, general and administrative expenses for the six months ended June 30, 2026, consisted mainly of

accrued salaries and wages of $172,885 and audit and accounting of $32,583.

In comparison, 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.

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.

We had other expenses of $142,716 for

the three months ended June 30, 2026, compared with other expense of $138,190 for the three months ended June 30, 2025.

We had other expenses

of $283,962 for the six months ended June 30, 2026, as compared with other expense of $279,343 for the six months ended June 30, 2025.

Our other expense for the three months

ended June 30, 2026 consisted mainly of interest expense of $142,716.

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

mainly of interest expense of $142,720.

Our other expense for the six months ended June 30, 2026 consisted mainly of interest expense

Our other expense for the six months ended June 30, 2025 consisted mainly of interest expense of $283,873 netted against

other income related to the sale of polymer.

We recorded a net loss of $255,533 for the

three months ended June 30, 2026, as compared with a net loss of $274,427 for the three months ended June 30, 2025 June 30, 2025.

a net loss of $522,717 for the six months ended June 30, 2026, as compared with a net loss of $555,432 for the six months ended June 30,

Liquidity and Capital Resources

12 unchanged sentences

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.

As of June 30, 2026, we had total current assets of

$33,301 and total assets in the amount of $123,334.

Our total current liabilities as of June 30, 2026 were $5,536,429.

We had a working

capital deficit of $5,503,128 as of June 30, 2026, compared with a working capital deficit of $4,990,414 as of December 31, 2025.

Operating activities used $1,339 in cash for the six

months ended June 30, 2026, as compared with $40,909 used for the six months ended June 30, 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 six

months ended June 30, 2026 and 2025.

Cash flow provided from financing activities was $0

for the six months ended June 30, 2026, as compared with $34,780 provided by cash flows for financing activities during the six months

ended June 30, 2025.

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,

6 unchanged sentences

Off Balance Sheet Arrangements

As of March 31, 2026, there were no off-balance sheet arrangements.

As of June 30, 2026, there were no off-balance sheet arrangements.

Critical Accounting Policies

12 unchanged sentences

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.

revenue from distribution and license rights 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.

Costs of Revenue – Cost of revenue includes raw materials,

9 unchanged sentences

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

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

As of June 30, 2026, we had not recorded a reserve for doubtful accounts.

Recently Issued Accounting Pronouncements

9 unchanged sentences

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.

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 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.

1 unchanged sentence

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.

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.

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.

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