# EDGAR Filing Document

**Accession Number:** 0001813744
**File Stem:** 0001813744-25-000005
**Filing Date:** 2025-9
**Character Count:** 84069
**Document Hash:** f2b8d959a3aa22c609d6c91b25f36f7f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001813744-25-000005.hdr.sgml**: 20250918

**ACCESSION NUMBER**: 0001813744-25-000005

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 52

**CONFORMED PERIOD OF REPORT**: 20250131

**FILED AS OF DATE**: 20250918

**DATE AS OF CHANGE**: 20250918

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** World Scan Project, Inc.
- **CENTRAL INDEX KEY:** 0001813744
- **STANDARD INDUSTRIAL CLASSIFICATION:** WHOLESALE-COMPUTER & PERIPHERAL EQUIPMENT & SOFTWARE [5045]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 352677532
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1031

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56208
- **FILM NUMBER:** 251322026

**BUSINESS ADDRESS:**
- **STREET 1:** 2-18-23, NISHIWASEDA
- **CITY:** SHINJUKU-KU, TOKYO
- **STATE:** M0
- **ZIP:** 162-0051
- **BUSINESS PHONE:** 81-3-6670-1692

**MAIL ADDRESS:**
- **STREET 1:** 2-18-23, NISHIWASEDA
- **CITY:** SHINJUKU-KU, TOKYO
- **STATE:** M0
- **ZIP:** 162-0051

?xml version='1.0' encoding='ASCII'?

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549**

**FORM 10-Q**

**[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**FOR THE QUARTERLY PERIOD ENDED January 31, 2025** 

**OR**

**[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from to** 

**COMMISSION FILE NUMBER: 000-56208**

**World Scan Project, Inc.**

**(Exact name of registrant as specified in its charter)**

---

| | |
|:---|:---|
| **Delaware** | **35-2677532** |
| (State or other jurisdiction<br> of incorporation or organization) | (I.R.S. Employer Identification No.) |
| **2-18-23, Nishiwaseda**<br> **Shinjuku-Ku, Tokyo, Japan** | **169-0051** |
| (Address of Principal Executive Offices) | (Zip Code) |

---

&nbsp;&nbsp;&nbsp;&nbsp;Issuer's telephone number: +81-3-6670-1692

Email: contact@world-scan-project.com

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. [ ] Yes [X] No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). [ ] Yes [X] No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer☒ <br> Smaller reporting company ☒ Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

[ ] Yes [X] No

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

As of January 31, 2025, there were 11,997,350 shares of common stock and 10,000,000 shares of preferred stock issued and outstanding.

------

**INDEX**

---

| | | |
|:---|:---|:---|
|  |  | **<u>Page</u>** |
| &nbsp;&nbsp;&nbsp;&nbsp;**PART I - FINANCIAL INFORMATION** | &nbsp;&nbsp;&nbsp;&nbsp;**PART I - FINANCIAL INFORMATION** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;[ITEM 1](#financial) | [FINANCIAL STATEMENTS - UNAUDITED](#financial) | F1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Consolidated Balance Sheets - UNAUDITED](#balance) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Consolidated Balance Sheets - UNAUDITED](#balance) | F1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[CONSOLIDATED Statements of Operations AND COMPREHENSIVE INCOME- UNAUDITED](#operations) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[CONSOLIDATED Statements of Operations AND COMPREHENSIVE INCOME- UNAUDITED](#operations) | F2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[cONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT)- UNAUDITED](#changes) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[cONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT)- UNAUDITED](#changes) | F3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[cONSOLIDATED Statement of Cash Flows - unaudited](#cash) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[cONSOLIDATED Statement of Cash Flows - unaudited](#cash) | F4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Notes to CONSOLIDATED Financial Statements - unaudited](#notes) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Notes to CONSOLIDATED Financial Statements - unaudited](#notes) | F5 |
| &nbsp;&nbsp;&nbsp;&nbsp;[ITEM 2](#management) | [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS](#management) | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;[ITEM 3](#quantitative) | [QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#quantitative) | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;[ITEM 4](#controls) | [CONTROLS AND PROCEDURES](#controls) | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;**PART II - OTHER INFORMATION** | &nbsp;&nbsp;&nbsp;&nbsp;**PART II - OTHER INFORMATION** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;[ITEM 1](#legal) | [LEGAL PROCEEDINGS](#legal) | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;[ITEM 1A](#risk) | [RISK FACTORS](#risk) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;[ITEM 2](#unregistered) | [UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](#management) | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;[ITEM 3](#defaults) | [DEFAULTS UPON SENIOR SECURITIES](#defaults) | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;[ITEM 4](#mine) | [MINE SAFETY DISCLOSURES](#mine) | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;[ITEM 5](#other) | [OTHER INFORMATION](#other) | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;[ITEM 6](#exhibits) | [EXHIBITS](#exhibits) | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;[SIGNATURES](#signatures) | &nbsp;&nbsp;&nbsp;&nbsp;[SIGNATURES](#signatures) | 6 |

---

------

<u>[**Table of Contents**](#table)</u>

**PART I - FINANCIAL INFORMATION**

**WORLD SCAN PROJECT, INC.**

**CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp; January 31, 2025<br> (Unaudited) | &nbsp;&nbsp; October 31,<br> 2024  |
| &nbsp;&nbsp;&nbsp;&nbsp;ASSETS |  |  |
| &nbsp;&nbsp;Current Assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $&nbsp;&nbsp;1449453 | $&nbsp;&nbsp;1634200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, trade | &nbsp;&nbsp;37752 | &nbsp;&nbsp;902 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivables, current | &nbsp;&nbsp;1276496 | &nbsp;&nbsp;1070404 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advance payments and prepaid expenses | &nbsp;&nbsp;4846703 | &nbsp;&nbsp;4636258 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | &nbsp;&nbsp;14280795 | &nbsp;&nbsp;17045647 |
| &nbsp;&nbsp;TOTAL CURRENT ASSETS | &nbsp;&nbsp;21891199 | &nbsp;&nbsp;24387411 |
| &nbsp;&nbsp;Non-current assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Furniture, fixtures and equipment, net | &nbsp;&nbsp;195439 | &nbsp;&nbsp;212200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease asset long term | &nbsp;&nbsp;627324 | &nbsp;&nbsp;677022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment securities | &nbsp;&nbsp;1554102 | &nbsp;&nbsp;1562093 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long term prepaid expenses and security deposits, net | &nbsp;&nbsp;47126 | &nbsp;&nbsp; 49071 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax assets | &nbsp;&nbsp;407399 | &nbsp;&nbsp;436572 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other intangible assets, non-current | &nbsp;&nbsp;84318 | &nbsp;&nbsp;85882 |
| &nbsp;&nbsp;TOTAL NON-CURRENT ASSETS | &nbsp;&nbsp;2915708 | &nbsp;&nbsp;3022840 |
| &nbsp;&nbsp;TOTAL ASSETS | $&nbsp;&nbsp;24806907 | $&nbsp;&nbsp;27410251 |
| &nbsp;&nbsp;LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |
| &nbsp;&nbsp;Current Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other payables | $&nbsp;&nbsp;324757 | $&nbsp;&nbsp;1186679 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - related party | &nbsp;&nbsp;45299 | &nbsp;&nbsp;45532 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | &nbsp;&nbsp;36995 | &nbsp;&nbsp;334413 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consumption tax payable | &nbsp;&nbsp;- | &nbsp;&nbsp;13882 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term lease liability | &nbsp;&nbsp;213202 | &nbsp;&nbsp;233160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advance received | &nbsp;&nbsp;2027755 | &nbsp;&nbsp;3391942 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to related party | &nbsp;&nbsp;458 | &nbsp;&nbsp;458 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share application pending allotment | &nbsp;&nbsp;- | &nbsp;&nbsp;5154136 |
| &nbsp;&nbsp;TOTAL CURRENT LIABILITIES | &nbsp;&nbsp;2648466 | &nbsp;&nbsp;10360202 |
| &nbsp;&nbsp;Non-Current Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liability long term | &nbsp;&nbsp;435976 | &nbsp;&nbsp;466643 |
| &nbsp;&nbsp;TOTAL LIABILITIES | $&nbsp;&nbsp;3084442 | $&nbsp;&nbsp;10826845 |
| &nbsp;&nbsp;Shareholders' Equity |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock ($0.0001 par value, 200,000,000 shares authorized; 10,000,000 shares issued and outstanding as of January 31, 2025 and October 31, 2024) | $&nbsp;&nbsp;1000 | $&nbsp;&nbsp;1000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock ($0.0001 par value, 200,000,000 shares authorized, 11,997,350 and 11,560,350 shares issued and outstanding as of January 31, 2025 and October 31, 2024, respectively) | &nbsp;&nbsp;1200 | &nbsp;&nbsp;1156 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | &nbsp;&nbsp;15873803 | &nbsp;&nbsp;10629847 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated earnings | &nbsp;&nbsp;8472093 | &nbsp;&nbsp;8370124 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | &nbsp;&nbsp;(2625631) | &nbsp;&nbsp; (2418721) |
| &nbsp;&nbsp;TOTAL SHAREHOLDERS' EQUITY | $&nbsp;&nbsp;21722465 | $&nbsp;&nbsp;16583406 |
| &nbsp;&nbsp;TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $&nbsp;&nbsp;24806907 | $&nbsp;&nbsp;27410251 |

---

The accompanying notes are an integral part of these unaudited financial statements.

------

[**Table of Contents**](#table)

**WORLD SCAN PROJECT, INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME**

**(UNAUDITED)** 

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;Three Months Ended | &nbsp;&nbsp;Three Months Ended |
|  | &nbsp;&nbsp;January 31, 2025 | &nbsp;&nbsp;January 31, 2024 |
| &nbsp;&nbsp;**Revenues** |  |  |
| &nbsp;&nbsp;Revenues | $&nbsp;&nbsp;4084010 | $&nbsp;&nbsp;6635195 |
| &nbsp;&nbsp;Revenues, net | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;**Total Revenues** | &nbsp;&nbsp;4084010 | &nbsp;&nbsp;6635195 |
| &nbsp;&nbsp;Cost of revenues | &nbsp;&nbsp;2620666 | &nbsp;&nbsp;5148757 |
| &nbsp;&nbsp;**Gross profit** | &nbsp;&nbsp;1463344 | &nbsp;&nbsp;1486438 |
| &nbsp;&nbsp;OPERATING EXPENSE |  |  |
| &nbsp;&nbsp;General and administrative expenses | &nbsp;&nbsp;1226889 | &nbsp;&nbsp;1582961 |
| &nbsp;&nbsp;Research and development | &nbsp;&nbsp;160465 | &nbsp;&nbsp;179625 |
| &nbsp;&nbsp;Total operating Expenses | &nbsp;&nbsp;1387354 | &nbsp;&nbsp;1762586 |
| &nbsp;&nbsp;**Income (loss) from operations** | &nbsp;&nbsp;75990 | &nbsp;&nbsp;(276148) |
| &nbsp;&nbsp;Other income (expense) |  |  |
| &nbsp;&nbsp;Other income | &nbsp;&nbsp;(2) | &nbsp;&nbsp;1 |
| &nbsp;&nbsp;Other Expense | &nbsp;&nbsp;1007 | &nbsp;&nbsp;(96433) |
| &nbsp;&nbsp;Total other income (expense) | &nbsp;&nbsp;1005 | &nbsp;&nbsp;(96432) |
| &nbsp;&nbsp;**Net income (loss) before tax** | &nbsp;&nbsp;76995 | &nbsp;&nbsp;(372580) |
| &nbsp;&nbsp;Income tax expense (credit) | &nbsp;&nbsp;(24974) | &nbsp;&nbsp;(64319) |
| &nbsp;&nbsp;**NET INCOME (LOSS)** | $&nbsp;&nbsp;101969 | $&nbsp;&nbsp;(308261) |
| &nbsp;&nbsp;OTHER COMPREHENSIVE INCOME (LOSS) |  |  |
| &nbsp;&nbsp;Foreign currency translation adjustment | $&nbsp;&nbsp;(206910) | $&nbsp;&nbsp;213187 |
| &nbsp;&nbsp;**TOTAL COMPREHENSIVE INCOME (LOSS)** | $&nbsp;&nbsp;(104941) | $&nbsp;&nbsp;(95074) |
| &nbsp;&nbsp;**Income per common share** |  |  |
| &nbsp;&nbsp;Basic | $&nbsp;&nbsp;0.01 | $&nbsp;&nbsp;(0.03) |
| &nbsp;&nbsp;Diluted | $&nbsp;&nbsp;0.00 | $&nbsp;&nbsp;(0.01) |
| &nbsp;&nbsp;**Weighted average common shares outstanding** |  |  |
| &nbsp;&nbsp;Basic | &nbsp;&nbsp;11902350 | &nbsp;&nbsp;10817350 |
| &nbsp;&nbsp;Diluted | &nbsp;&nbsp;20902350 | &nbsp;&nbsp;20817350 |

---

The accompanying notes are an integral part of these unaudited financial statements.

------

[**Table of Contents**](#table)

 **WORLD SCAN PROJECT, INC.**

 **CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT)**

 **FOR THE PERIOD ENDING JANUARY 31, 2025**

**(UNAUDITED)** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;PREFERRED STOCK | &nbsp;&nbsp;PREFERRED STOCK | &nbsp;&nbsp;COMMON STOCK | &nbsp;&nbsp;COMMON STOCK | | | | |
|  | &nbsp;&nbsp;NUMBER | &nbsp;&nbsp;AMOUNT | &nbsp;&nbsp;NUMBER | &nbsp;&nbsp;AMOUNT | <br>&nbsp;&nbsp;ADDITIONAL<br>&nbsp;&nbsp;PAID IN<br>&nbsp;&nbsp;CAPITAL | &nbsp;&nbsp;ACCUMULATED<br>&nbsp;&nbsp;OTHER<br>&nbsp;&nbsp;COMPREHENSIVE<br>&nbsp;&nbsp;INCOME (LOSS) | <br>&nbsp;&nbsp;ACCUMULATED<br>&nbsp;&nbsp;EARNINGS<br>&nbsp;&nbsp;(DEFICIT) | <br>&nbsp;&nbsp;TOTAL<br>&nbsp;&nbsp;EQUITY<br>&nbsp;&nbsp;(DEFICIT) |
| &nbsp;&nbsp;Balance - October 31, 2024 | &nbsp;&nbsp;10000 | $&nbsp;&nbsp;1000 | &nbsp;&nbsp;11560350 | $&nbsp;&nbsp;1156 | $&nbsp;&nbsp;10629847 | $&nbsp;&nbsp;(2418721) | $&nbsp;&nbsp;8370124 | $&nbsp;&nbsp;16583406 |
| &nbsp;&nbsp;Common shares sold | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;437000 | &nbsp;&nbsp;44 | &nbsp;&nbsp;5243956 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;5244000 |
| &nbsp;&nbsp;Net income | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;101969 | &nbsp;&nbsp;101969 |
| &nbsp;&nbsp;Foreign currency translation | &nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(206910) | &nbsp;&nbsp;- | &nbsp;&nbsp;(206910) |
| &nbsp;&nbsp;Balance - January 31, 2025 | &nbsp;&nbsp;10000 | $&nbsp;&nbsp;1000 | &nbsp;&nbsp;11997350 | $&nbsp;&nbsp;1200 | $&nbsp;&nbsp;15873803 | $&nbsp;&nbsp;(2625631) | $&nbsp;&nbsp;8472093 | $&nbsp;&nbsp;21722465 |

---

The accompanying notes are an integral part of these unaudited financial statements.

**WORLD SCAN PROJECT, INC.** 

**CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT)**

**FOR THE PERIOD ENDING JANUARY 31, 2024** 

**(UNAUDITED)** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;PREFERRED STOCK | &nbsp;&nbsp;PREFERRED STOCK | &nbsp;&nbsp;COMMON STOCK | &nbsp;&nbsp;COMMON STOCK | | | | |
|  | &nbsp;&nbsp;NUMBER | &nbsp;&nbsp;AMOUNT | &nbsp;&nbsp;NUMBER | &nbsp;&nbsp;AMOUNT | <br>&nbsp;&nbsp;ADDITIONAL<br>&nbsp;&nbsp;PAID IN<br>&nbsp;&nbsp;CAPITAL | &nbsp;&nbsp;ACCUMULATED<br>&nbsp;&nbsp;OTHER<br>&nbsp;&nbsp;COMPREHENSIVE<br>&nbsp;&nbsp;INCOME (LOSS) | <br>&nbsp;&nbsp;ACCUMULATED<br>&nbsp;&nbsp;EARNINGS<br>&nbsp;&nbsp;(DEFICIT) | <br>&nbsp;&nbsp;TOTAL<br>&nbsp;&nbsp;EQUITY<br>&nbsp;&nbsp;(DEFICIT) |
| &nbsp;&nbsp;Balance - October 31, 2023 | &nbsp;&nbsp;10000 | $&nbsp;&nbsp;1000 | &nbsp;&nbsp;10817350 | $&nbsp;&nbsp;1082 | $&nbsp;&nbsp;2063973 | $&nbsp;&nbsp;(2488923) | $&nbsp;&nbsp;9138555 | $&nbsp;&nbsp;8715687 |
| &nbsp;&nbsp;Net loss | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(308261) | &nbsp;&nbsp;(308261) |
| &nbsp;&nbsp;Foreign currency translation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;213187 | &nbsp;&nbsp;- | &nbsp;&nbsp;213187 |
| &nbsp;&nbsp;Balance - January 31, 2024 | &nbsp;&nbsp;10000 | $&nbsp;&nbsp;1000 | &nbsp;&nbsp;10817350 | $&nbsp;&nbsp;1082 | $&nbsp;&nbsp;2063973 | $&nbsp;&nbsp;(2275736) | $&nbsp;&nbsp;8830294 | $&nbsp;&nbsp;8620613 |

---

The accompanying notes are an integral part of these unaudited financial statements.

------

[**Table of Contents**](#table)

**WORLD SCAN PROJECT, INC.**

**CONSOLIDATED STATEMENT OF CASH FLOWS**

**(UNAUDITED)**

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp; Three Months Ended | &nbsp;&nbsp; Three Months Ended  |
|  | &nbsp;&nbsp; January 31, 2025 | &nbsp;&nbsp; January 31, 2024 |
| &nbsp;&nbsp;CASH FLOWS FROM OPERATING ACTIVITIES |  |  |
| &nbsp;&nbsp;Net income (loss) | $&nbsp;&nbsp;101969 | $&nbsp;&nbsp;(308261) |
| &nbsp;&nbsp;Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;Depreciation and amortization | &nbsp;&nbsp;16774 | &nbsp;&nbsp;13361 |
| &nbsp;&nbsp;Amortization of long-term deposits | &nbsp;&nbsp;1691 | &nbsp;&nbsp;4350 |
| &nbsp;&nbsp;Lease expense | &nbsp;&nbsp;63894 | &nbsp;&nbsp;57580 |
| &nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;Accounts receivable | &nbsp;&nbsp;(36796) | &nbsp;&nbsp;128247 |
| &nbsp;&nbsp;Advance payments and other prepaid expense | &nbsp;&nbsp;(237400) | &nbsp;&nbsp;404224 |
| &nbsp;&nbsp;Inventories | &nbsp;&nbsp;2673455 | &nbsp;&nbsp;(6824119) |
| &nbsp;&nbsp;Other receivables | &nbsp;&nbsp;(211236) | &nbsp;&nbsp;(105315) |
| &nbsp;&nbsp;Other current assets | &nbsp;&nbsp;- | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Deferred tax assets | &nbsp;&nbsp;26897 | &nbsp;&nbsp;(64436) |
| &nbsp;&nbsp;Accrued expenses and other payables | &nbsp;&nbsp;(5974240) | &nbsp;&nbsp;(753407) |
| &nbsp;&nbsp;Taxes payable | &nbsp;&nbsp;(309033) | &nbsp;&nbsp;(29549) |
| &nbsp;&nbsp;Advance received | &nbsp;&nbsp;(1344724) | &nbsp;&nbsp;(3059618) |
| &nbsp;&nbsp;ROU asset/liability | &nbsp;&nbsp;(64702) | &nbsp;&nbsp;(57154) |
| &nbsp;&nbsp;Net cash used in operating activities | &nbsp;&nbsp;(5293451) | &nbsp;&nbsp;(10594097) |
| &nbsp;&nbsp;CASH FLOWS FROM INVESTING ACTIVITIES |  |  |
| &nbsp;&nbsp; Cash paid for purchase of fixed assets | &nbsp;&nbsp;- | &nbsp;&nbsp;(30797) |
| &nbsp;&nbsp; Cash paid for intangible assets | &nbsp;&nbsp;- | &nbsp;&nbsp;(408529) |
| &nbsp;&nbsp; Net cash used in investing activities | &nbsp;&nbsp;- | &nbsp;&nbsp;(439326) |
| &nbsp;&nbsp;CASH FLOWS FROM FINANCING ACTIVITIES |  |  |
| &nbsp;&nbsp;Cash received for share subscriptions prior to registration | $&nbsp;&nbsp;5244000 | $&nbsp;&nbsp;5832000 |
| &nbsp;&nbsp;Net cash provided by financing activities | &nbsp;&nbsp;5244000 | &nbsp;&nbsp;5832000 |
| &nbsp;&nbsp;Net effect of exchange rate changes on cash | $&nbsp;&nbsp;(135296) | $&nbsp;&nbsp;269750 |
| &nbsp;&nbsp;Net Change in Cash and Cash Equivalents | &nbsp;&nbsp;(184747) | &nbsp;&nbsp;(4931673) |
| &nbsp;&nbsp;Cash and cash equivalents - beginning of period | &nbsp;&nbsp;1634200 | &nbsp;&nbsp;5698883 |
| &nbsp;&nbsp;Cash and cash equivalents - end of period | $&nbsp;&nbsp;1449453 | $&nbsp;&nbsp;767210 |
| &nbsp;&nbsp;SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | &nbsp;&nbsp;SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION |  |
| &nbsp;&nbsp;Interest paid | $&nbsp;&nbsp;- | $&nbsp;&nbsp;- |
| &nbsp;&nbsp;Income taxes paid | $&nbsp;&nbsp;297418 | $&nbsp;&nbsp;- |
| &nbsp;&nbsp;NON-CASH INVESTING AND FINANCING TRANSACTIONS | &nbsp;&nbsp;NON-CASH INVESTING AND FINANCING TRANSACTIONS | &nbsp;&nbsp;NON-CASH INVESTING AND FINANCING TRANSACTIONS |
| &nbsp;&nbsp;ROU Asset/Liability | $&nbsp;&nbsp;- | $&nbsp;&nbsp;- |

---

The accompanying notes are an integral part of these unaudited financial statements.

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**WORLD SCAN PROJECT, INC.**

**CONSOLIDATED NOTES TO FINANCIAL STATEMENTS**

**JANUARY 31, 2025**

 **(UNAUDITED)**

**NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS**

World Scan Project, Inc., a Delaware corporation ("the Company") was incorporated under the laws of the State of Delaware on October 25, 2019.

On October 25, 2019, Ryohei Uetaki, our officer and director, paid for expenses involved with the incorporation of the Company with personal funds on behalf of the Company, in exchange for 10,000,000 shares of Common Stock, par value $0.0001 per share and 10,000,000 shares of Series A Preferred stock, par value $0.0001 per share, which issuance was exempt from the registration provisions of Section 5 of the Securities Act under Section 4(2) of such same said act. The value of the stock provided to Mr. Uetaki, based on the par value of $.0001 per share of common stock and Series A Preferred Stock, is valued at $2,000.

On October 25, 2019, Ryohei Uetaki was appointed as Chief Executive Officer, Chief Financial Officer, President, Director, Secretary, and Treasurer.

On November 18, 2019, Yasumasa Ichikawa was appointed as Chief Technology Officer.

On January 25, 2020, the Company entered into and consummated a Share Contribution Agreement with Ryohei Uetaki. Pursuant to this agreement Mr. Uetaki gifted to the Company, at no cost, 300 shares of common stock of World Scan Project Corporation, a Japan corporation ("WSP Japan"), which represented all of its issued and outstanding shares. The Company has since gained a 100% interest in the issued and outstanding shares of WSP Japan's common stock and WSP Japan is now a wholly owned subsidiary of the Company. The Company and WSP Japan were under common control at the time of the acquisition.

WSP Japan was incorporated under the laws of Japan on January 22, 2020. Currently, WSP Japan is headquartered in Tokyo, Japan. The Company's primary business is focused on developing and manufacturing autonomous aerial vehicles including drones.

On February 19, 2020, Ryohei Uetaki gifted 7,000,000 shares of our Common Stock and 10,000,000 shares of our Series A Preferred Stock, which represented all of our issued and outstanding shares of Preferred Stock at the time, to SKYPR LLC, a Delaware Limited Liability Company (referred to herein as "SKYPR LLC"). Our CEO Ryohei Uetaki owns and controls 100% of the membership interests in SKYPR LLC.

In September, 2020, the Company entered into subscription agreements with 41 shareholders. Pursuant to these agreements, the Company issued 647,350 shares of common stock in total to these shareholders and received $323,675 as aggregate consideration. At the time of purchase the price paid per share by each shareholder was the equivalent of about 0.50 USD.

These shares were sold pursuant to the Company's effective S-1 Registration Statement deemed effective on August 28, 2020 at 4pm EST.

In June and August of 2023, the Company entered into subscription agreements with 10 shareholders. Pursuant to these agreements, the Company issued 170,000 shares of Common Stock in total to these shareholders and received $1,740,000 as aggregate consideration. At the time of purchase the price paid per share by each shareholder was approximately 10.00 USD. These shares were sold pursuant to the Company's effective S-1 Registration Statement deemed effective on May 25, 2023 at 4pm EST. This offering has been completed and is no longer ongoing.

However, offering deemed effective in August 2023 was ongoing. On August 13, 2024, we filed a Form 8-K with the SEC to announce that Mr. Ryohei Uetaki had chosen to extend the offering period of the S-1 Registration Statement, which was declared effective by the Securities and Exchange Commission at 4:00 PM EST on August 23, 2023 by an additional 90 calendar days. As a result, the offering concluded on November 21, 2024.

We operate through our wholly owned subsidiary, World Scan Project Corporation, a Japanese Company. We are a start-up stage company currently focused on developing, designing and selling small sized drones which may be used for a variety of purposes.

Our principal executive offices are located at 2-18-23, Nishiwaseda, Shinjuku-Ku, Tokyo, 169-0051, Japan.

The Company has elected October 31<sup>st</sup> as its year end.

**NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Principles of Consolidations**

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, World Scan Project Corporation, whose registered address is 2-18-23, Nishiwaseda, Shinjuku-Ku, Tokyo, 162-0051, Japan. All significant intercompany accounts and transactions have been eliminated.

**Basis of Presentation**

This summary of significant accounting policies is presented to assist in understanding the Company's financial statements. These accounting policies conform to accounting principles, generally accepted in the United States of America, and have been consistently applied in the preparation of the financial statements.

**Reclassification**

Certain amounts in the prior period have been reclassified to conform to the current period presentation.

**Use of Estimates**

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In the opinion of management, all adjustments necessary in order to make the financial statements not misleading have been included. Actual results could differ from those estimates.

**Advertising and Promotion**

All advertising, promotion and marketing expenses, including commissions, are expensed when incurred.

**Leases**

The Company capitalizes all leased assets pursuant to ASU 2016-02, *Leases (Topic 842)* ("Topic 842"), which requires lessees to recognize right-of-use ("ROU") assets and lease liability, initially measured at present value of the lease payments, on its balance sheet for leases with terms longer than 12 months and classified as either financing or operating leases. The Company excludes short-term leases having initial terms of 12 months or less from Topic 842 as an accounting policy election and recognizes rent expense on a straight-line basis over the lease term.

**Related party transaction**

A related party is generally defined as (i) any person that holds 10% or more of the Company's securities and their immediate families, (ii) the Company's management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. The Company conducts business with its related parties in the ordinary course of business.

Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated.

**Cash and Cash Equivalents**

The Company considers all highly liquid investments with an original maturity of nine months or less when purchased to be cash equivalents.

**Accounts Receivable and Credit Policies**

Accounts receivable are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. If there is a claim for a defect of product within four days after arrival of goods, the Company shall accept a goods return.

**Advance payments and prepaid expenses**

Advance payments and prepaid expenses are cash paid amounts that represent costs incurred from which a service or benefit is expected to be derived in the future.

**Inventory**

Inventories, consisting of products available for sale, are primarily accounted for using the first-in, first-out ("FIFO") method, and are valued at the lower of cost or market value. This valuation requires the Company to make judgments, based on currently available information, about the likely method of disposition, such as through sales to individual customers, returns to product vendors, or liquidations, and expected recoverable values of each disposition category.

**Fixed assets and depreciation**

Property, plant and equipment are stated at cost less depreciation and impairment loss. The initial cost of the assets comprises its purchase price and any directly attributable costs of bringing the asset to its working condition and location for its intended use. Depreciation is calculated using the straight-line method over the shorter of the estimated useful life of the respective assets as follows: computer software developed or acquired for internal use, 5 years; leasehold improvements, 10 years; and tools, furniture and fixtures, 2 to 15 years.

**Investment and Securities**

In accordance with ASC 321-10-35-2, the Company elected to measure an equity security without a readily determinable fair value at its cost subject to impairment. The Company has not identified any observable price changes in orderly transactions for the identical or a similar investment of the same issuer.

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**Foreign currency translation**

The Company maintains its books and records in its local currency, Japanese YEN ("JPY"), which is a functional currency as being the primary currency of the economic environment in which its operation is conducted. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statements of operations.

The reporting currency of the Company is the United States Dollars ("US$") and the accompanying consolidated financial statements have been expressed in US$. In accordance with ASC Topic 830-30, "Translation of Financial Statement", assets and liabilities of the Company whose functional currency is not US$ are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at weighted average quarterly rates prevailing during the period. The gains and losses resulting from translation of financial statements are recorded as a separate component of accumulated other comprehensive income within the statements of shareholders' equity.

**Comprehensive income or loss**

ASC Topic 220, "Comprehensive Income", establishes standards for reporting and display of comprehensive income or loss, its components and accumulated balances. Comprehensive income or loss as defined includes all changes in equity during a period from non-owner sources. Accumulated comprehensive income, as presented in the accompanying consolidated statements of shareholders' equity, consists of changes in unrealized gains and losses on foreign currency translation.

**Revenue recognition**

The Company adopted ASC 606 – Revenue from contracts with Customers: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied.

Revenue amount represents the invoiced value, net of a value-added tax ("Consumption Tax") and applicable local government levies. The Consumption Tax on sales is calculated at 10% of gross sales. The Company is subject to consumption taxes in Japan for the quarter ended January 31, 2025.

*<u>Revenue from product sales</u>*

Revenue for products is recognized when the products are delivered to the customer and the customer completes the product inspection. Cash receipts for undelivered products are recorded as advance received. As of January 31, 2025, the Company had advance received related to product sales totaling $2,027,755.

*<u>Revenue from educational institution program</u>*

 

Revenue for educational institution fees is recognized when the services are provided to the customer. Cash receipts for undelivered products are recorded as advance received. As of January 31, 2025, the Company had no advance related to the educational institution program.

**Other intangible assets**

Other intangible assets with finite useful lives consist primarily of software, which are amortized using the straight-line method. The costs incurred for the development of computer software to be sold, leased, or otherwise marketed are capitalized in accordance with ASC 985-20, Costs of Software to be Sold, Leased or Marketed, when technological feasibility has been established.

**Research and Development**

The Company accounts for research and development costs in accordance with ASC subtopic 730-10, Research and Development ("ASC 730-10").

Under ASC 730-10, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and development costs are expensed when the contracted work has been performed or as milestone results have been achieved as defined under the applicable agreement.

The Company also applies the principles of ASC 985-20, Accounting for the Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed ("ASC 985-20"). ASC 985-20 requires that software development costs incurred in conjunction with product development be charged to research and development expense until technological feasibility is established.

The Company records expenses for research and development activities based on Management's estimates of services received and efforts expended pursuant to contracts with vendors that conduct research and development on the Company's behalf. The financial terms vary from contract to contract and may result in uneven payment flows as compared with services performed or products delivered. As a result, the Company is required to estimate research and development expenses incurred during the period, which impacts the amount of Advance payments and prepaid expenses balances related to such costs as of each balance sheet date. Management estimates the amount of work completed through discussions with internal personnel and the contract research and contract manufacturing entity as to the progress or stage of completion of the services. The Company's estimates are based on a number of factors, including the Company's knowledge of the status of each of the research and development project milestones.

**Income Taxes**

The Company accounts for income taxes under ASC 740, "Income Taxes." Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations. The Company recognized deferred tax assets of $407,399 and $436,572 as of January 31, 2025 and October 31, 2024, respectively.

**Basic Earnings (Loss) Per Share**

The Company computes basic and diluted earnings (loss) per share in accordance with ASC Topic 260, *Earnings per Share*. Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the reporting period. Diluted earnings (loss) per share reflects the potential dilution that could occur if stock options and other commitments to issue common stock were exercised or equity awards vest resulting in the issuance of common stock that could share in the earnings of the Company. Each shareholder of Series A Preferred Stock may convert their shares at the option of the holder thereof into an equal amount of shares of any other class or series of the Company's stock on a one to one basis, therefore the Company computes diluted earnings (loss) per shares by dividing net income (loss) by the sum of the total of weighted average number of common shares and total preferred shares outstanding.

Basic and diluted earnings per share are as follows:

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| | | |
|:---|:---|:---|
|  | January 31, | January 31, |
|  | 2025 | 2024 |
| Basic earnings(loss) per share | $(0.01) | $(0.03) |
| Diluted earnings(loss) per share | $0.00 | $(0.01) |

---

**Fair Value of Financial Instruments**

The Company's balance sheet includes certain financial instruments. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization.

ASC 820, *Fair Value Measurements and Disclosures*, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity's own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

- Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

- Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

- Level 3 – Inputs that are both significant to the fair value measurement and unobservable.

**Recently Issued Accounting Pronouncements**

The Company does not believe that any recently issued effective pronouncements, or pronouncements issued but not yet effective, if adopted, would have a material effect on the accompanying financial statements.

**Concentration of Purchases**

Net purchases from suppliers accounting for 10% or more of total purchases are as follows:

For the period ended January 31, 2025, 34.9% of inventories were purchased from Handa Boseki Co., Ltd in the amount of $914,542.

For the period ended January 31, 2025, 26.87% of inventories were purchased from Osaka Orikomi Co., Ltd in the amount of $704,198.

For the period ended January 31, 2025, 16.19% of inventories were purchased from SashinoBerute Co., Ltd in the amount of $424,284.

For the period ended January 31, 2025, 13.60% of inventories were purchased from G-Force, Inc. in the amount of $356,366.

For the period ended January 31, 2024, 36.85% of the inventories were purchased from Web3 Computing Corp in the amount of $1,897,482.

For the period ended January 31, 2024, 28.06% of the inventories were purchased from CU Holdings Co., Ltd in the amount of $1,444,708.

For the period ended January 31, 2024, 18.71% of the inventories were purchased from Kaneko Takuzo Shoten Co. in the amount of $963,138.

**Concentration of Revenues**&nbsp;&nbsp;&nbsp;&nbsp;

Revenues from customers accounting for 10% or more of total revenue are as follows:

For the period ended January 31, 2025, 26.91% of total revenue was generated from Drone Net, Inc. in the amount of $1,099,096.

For the period ended January 31, 2025, 14.96% of total revenue was generated from Santavel Corporation in the amount of $610,968.

For the period ended January 31, 2025, 14.53% of total revenue was generated from Tomoko Keida in the amount of $593,512.

For the period ended January 31, 2024, 46.55% of total revenue was generated from I'rom Co. Ltd. in the amount of $3,088,481.

For the period ended January 31, 2024, 18.56% of total revenue was generated from Heart Corporation in the amount of $1,231,715.

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**NOTE 3 - ACCOUNTS RECEIVABLE**

Accounts receivable from customers totaled $37,752 as of January 31, 2025 and $902 as of October 31, 2024. No bad debt allowance was provided as of January 31, 2025 and October 31, 2024.

**Concentration of Accounts Receivable**

Accounts receivable from customers accounting for 10% or more of total accounts receivable are as follows:

As of January 31, 2025, 75.47% of total accounts receivable was owed to the Company by Tutankhamen Project in the amount of $28,492.

As of January 31, 2025, 24.53% of total accounts receivable was owed to the Company by TOEI Co., Ltd in the amount of $9,260.

As of October 31, 2024, 100% of total accounts receivable was owed to the Company by Sanyukai Medical Corp in the amount of $902.

**NOTE 4 - ADVANCE PAYMENTS AND PREPAID EXPENSES**

Advance payments are comprised of the payments for the undelivered products and other deliverables. As of January 31, 2025 and October 31, 2024, the Company had advance payments and other prepaid expenses of $4,846,703 and $4,636,258, respectively. Details of the advance payments as of January 31, 2025 and October 31, 2024 are as follows:

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp; January 31,<br> 2025 | &nbsp;&nbsp; October 31,<br> 2024 |
| &nbsp;&nbsp;Purchase of product from Rogyx Co., Ltd | $&nbsp;&nbsp;54554 | $&nbsp;&nbsp;67401 |
| &nbsp;&nbsp;Purchase of products from Sankyu Co., Ltd | &nbsp;&nbsp;- | &nbsp;&nbsp;28009 |
| &nbsp;&nbsp;Purchase of products from I'rom Group Co., Ltd | &nbsp;&nbsp;168283 | &nbsp;&nbsp;134438 |
| &nbsp;&nbsp;Purchase of cryptocurrency miners from Web3 Computing Corp&nbsp;&nbsp;&nbsp;&nbsp; | &nbsp;&nbsp;4273781 | &nbsp;&nbsp;4295746 |
| &nbsp;&nbsp;G-Force Inc. | &nbsp;&nbsp;196309 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Other advances and prepaid expenses | &nbsp;&nbsp;153776 | &nbsp;&nbsp;110654 |
| &nbsp;&nbsp;Totals | $&nbsp;&nbsp;4846703 | $&nbsp;&nbsp;4636258 |

---

**NOTE 5 - FIXED ASSETS**

The company recognizes purchased assets with a useful life longer than one year as fixed or non-current assets. These assets are depreciated using the straight-line method of depreciation over the estimated useful life of the assets.

During the period ended January 31, 2025, the Company purchased no fixed assets. The Company is depreciating previously purchased assets over a 1-15 year period once they were put into use. Depreciation expense for the period ended January 31, 2025 was approximately $16,774.

During the year ended October 31, 2024, the Company purchased additional long-term assets totaling $1,218,854, including software. The Company is depreciating fixed assets over a 1-39 year period once they were put into use. Depreciation expense for the year ended October 31, 2024 was $1,251,414.

**NOTE 6 - ADVANCE RECEIVED**

Advance received is the amount the Company received in advance from the customer for their orders placed with us. As of January 31, 2025, advance received in the amount of $2,027,755 was related to our sales of cryptocurrency miners which represents a large amount in both number of transactions and values. As of October 31, 2024, advance received in the amount of $3,391,942 was related to our sales of cryptocurrency miners which represents a large amount in both number of transactions and values.

**NOTE 7 - INVESTMENT SECURITIES**

During the year ended October 31, 2023, the company invested $1.6 million (JPY 240 million) in 400 shares of Company A. For that investment, the Company has received an exclusive right to commercialize IOT Edge Data Center Business. Further, the Company is developing IOT Terminal for which the Company has appointed WEB3 and NBCT to develop the said technology and Company A is developing Immersion cooling technology (IOT Edge Data Centre).

There is no impairment required for such investment at January 31, 2025 and October 31, 2024.

**NOTE 8 - REVENUE**

The following table summarizes our revenue recognized under ASC 606 in our consolidated statements of operations:

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| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;**Three Months Ended** | &nbsp;&nbsp;**Three Months Ended** |
|  | &nbsp;&nbsp;**January 31,** | &nbsp;&nbsp;**January 31,** |
|  | &nbsp;&nbsp;**2025** | &nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;**Revenues** |  |  |
| &nbsp;&nbsp;Product sales | $&nbsp;&nbsp;4049201 | $&nbsp;&nbsp;6635195 |
| &nbsp;&nbsp;Drone imaging and video production | &nbsp;&nbsp;34266 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Other | &nbsp;&nbsp;543 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Total Revenue Under ASC 606 | $&nbsp;&nbsp;4084010 | $&nbsp;&nbsp;6635195 |

---

**NOTE 9 - RESEARCH & DEVELOPMENT**

During the period ended January 31, 2025, the Company incurred research and development expenses of $160,465 for products the Company intends to offer for sale in the future.

During the period ended January 31, 2024, the Company incurred research and development expenses of $179,625 for products the Company intends to offer for sale in the future.

**NOTE 10 - INCOME TAXES**

For the periods ended January 31, 2025 and 2024, the Company had income tax credits of $24,974 and $64,319, respectively.

<u>United States</u>

The Company was incorporated under the laws of the State of Delaware on October 25, 2019. The U.S. federal income tax rate is 21%.

Japan

The Company conducts its major businesses in Japan through WSP Japan and is subject to tax in this jurisdiction. As a result of its business activities, the Company files tax returns that are subject to examination by the local tax authority.

The realization of deferred tax assets is dependent upon the generation of sufficient taxable income of the appropriate character in future periods. The Company regularly assesses the ability to realize its deferred tax assets and establish a valuation allowance if it is more-likely-than-not that some portion of the deferred tax assets will not be realized. The Company weighs all available positive and negative evidence, including its earnings history and results of recent operations, projected future taxable income, and tax planning strategies.

The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as the Company's projections for growth. The adjustments of a valuation allowance against deferred tax assets may cause greater volatility in the effective tax rate in the periods in which the valuation allowance is adjusted. For the year ended October 31, 2021, a full valuation allowance was provided. For the year ended October 31, 2022, certain valuation allowance was released for WSP Japan considering the collectability of deferred tax assets.

For the periods ended January 31, 2025 and 2024, the Company's income tax expenses are as follows:

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| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;Three Months Ended | &nbsp;&nbsp;&nbsp;Three Months Ended |
|  | &nbsp;&nbsp;&nbsp;January 31, | &nbsp;&nbsp;&nbsp;January 31, |
|  | &nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;**2024** |
| &nbsp;&nbsp;&nbsp;Current | $&nbsp;&nbsp;&nbsp;(51871) | $&nbsp;&nbsp;&nbsp;116 |
| &nbsp;&nbsp;&nbsp;Deferred | &nbsp;&nbsp;&nbsp;26897 | &nbsp;&nbsp;&nbsp;(64435) |
| &nbsp;&nbsp;&nbsp;Total | $&nbsp;&nbsp;&nbsp;(24974) | $&nbsp;&nbsp;&nbsp;(64435) |

---

As of January 31, 2025 and October 31, 2024, the Company had income tax payable of $36,995 and $334,413, respectively.

**NOTE 11 - SHAREHOLDERS EQUITY**

***Preferred Stock***

The authorized preferred stock of the Company consists of 200,000,000 shares with a par value of $0.0001. The authorized Series A Preferred Stock of the Company consists of 100,000,000. There were 10,000,000 shares of Series A Preferred Stock issued and outstanding as of January 31, 2025 and October 31, 2024.

The rights, preferences, privileges, restrictions and other matters relating to the Series A Preferred Stock are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each share of Series A Preferred Stock shall have no voting rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each shareholder of Series A Preferred Stock may convert their shares at the option of the holder thereof into an equal amount of shares of any other class or series of the Company's stock on a one-to-one basis.

***Common Stock***

The authorized common stock of the Company consists of 200,000,000 shares with a par value of $0.0001. There were 11,997,350 and 11,560,350 shares of common stock issued and outstanding as of January 31, 2025 and October 31, 2024, respectively.

During the period ended January 31, 2025, 437,000 shares of common stock were issued to 31 shareholders for proceeds totaling $5,244,000 by an S-1 offering deemed effective on August 23, 2023 and extended to November 2024.

During the year ended October 31, 2024, 743,000 shares of common stock were issued to 43 shareholders for proceeds totaling $8,565,948 by an S-1 offering deemed effective on August 23, 2023 and extended to November 2024.

**NOTE 12 - RELATED-PARTY TRANSACTIONS**

***Loan to the Company***

As of January 31, 2025, our CEO and Director, Ryohei Uetaki, has advanced to the Company $45,299 for salary and $458 for expenses. This advance is considered as a loan to the Company, which is unsecured, noninterest-bearing and payable on demand.

As of October 31, 2024, our CEO and Director, Ryohei Uetaki, has advanced to the Company $45,532 for salary and $458 for expenses. This advance is considered as a loan to the Company which is unsecured, noninterest-bearing and payable on demand.

**NOTE 13 - LEASE ASSETS AND LIABILITIES**

Our adoption of ASU 2016-02, Leases (Topic 842), and subsequent ASUs related to Topic 842, requires us to recognize substantially all leases on the balance sheet as an ROU asset and a corresponding lease liability. The new guidance also requires additional disclosures as detailed below. We adopted this standard on the effective date of November 1, 2020 and used this effective date as the date of initial application. Under this application method, we were not required to restate prior period financial information or provide Topic 842 disclosures for prior periods. We elected the 'package of practical expedients,' which permitted us to not reassess our prior conclusions related to lease identification, lease classification, and initial direct costs, and we did not elect the use of hindsight.

We determine if a contract is a lease at the inception of the arrangement. We review all options to extend, terminate, or purchase the ROU assets, and when reasonably certain to exercise, we include the option in the determination of the lease term and lease liability. We have six operating leases related to our office space in Tokyo with remaining lease terms of 1 to over 3 years. We recognized $63,894 and $57,580 in operating lease costs for the three months ended January 31, 2025 and January 31, 2024, respectively.

Lease ROU assets and liabilities are recognized at commencement date of the lease, based on the present value of lease payments over the lease term. The lease ROU asset also includes any lease payments made and excludes any lease incentives. When readily determinable, we use the implicit rate in determining the present value of lease payments. When leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date, including the lease term.

The tables below present financial information associated with our leases. As noted above, we adopted Topic 842 using a transition method that does not require application to periods prior to adoption.

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| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;Balance Sheet Classification | &nbsp;&nbsp;**January 31, 2025** | &nbsp;&nbsp;**October 31, 2024** |
| &nbsp;&nbsp;Right-of-use assets | &nbsp;&nbsp;Lease asset long | $&nbsp;&nbsp;627324 | $&nbsp;&nbsp;677022 |
| &nbsp;&nbsp;Current lease liabilities | &nbsp;&nbsp;Short-term lease liability | &nbsp;&nbsp;213202 | &nbsp;&nbsp;233160 |
| &nbsp;&nbsp;Non-current lease liabilities | &nbsp;&nbsp;Lease liability long term | &nbsp;&nbsp;435976 | &nbsp;&nbsp;466643 |
| &nbsp;&nbsp;Maturities of lease liabilities as of January 31, 2025 are as follows: |  |  |  |
| &nbsp;&nbsp;2025 | &nbsp;&nbsp;231967 |  |  |
| &nbsp;&nbsp;2026 | &nbsp;&nbsp;88757 |  |  |
| &nbsp;&nbsp;2027 | &nbsp;&nbsp;73087 |  |  |
| &nbsp;&nbsp;2028 and beyond | &nbsp;&nbsp;302412 |  |  |
| &nbsp;&nbsp;Total | &nbsp;&nbsp;696223 |  |  |
| &nbsp;&nbsp;Add/(Less): Imputed interest | &nbsp;&nbsp;(47045) |  |  |
| &nbsp;&nbsp;Present value of lease liabilities | &nbsp;&nbsp;649178 |  |  |

---

**NOTE 14 - ACCRUED EXPENSES AND OTHER PAYABLES**

Accrued expenses and other payables are comprised of trade accounts payable, accrued payroll tax liabilities and accrued expenses. As of January 31, 2025 and October 31, 2024, the Company had accrued expenses and other payables of $324,757 and $1,186,679, respectively. Details of the accrued expenses and other payables as of January 31, 2025 and October 31, 2024 are as follows:

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;January 31, 2025 | &nbsp;&nbsp;October 31, 2024 |
| &nbsp;&nbsp;Accounts payable, trade | $&nbsp;&nbsp;264679 | $&nbsp;&nbsp;1109345 |
| &nbsp;&nbsp;Accounts payable for employees | &nbsp;&nbsp;45048 | &nbsp;&nbsp;63631 |
| &nbsp;&nbsp;Accrued payroll liabilities | &nbsp;&nbsp;15030 | &nbsp;&nbsp;13703 |
| &nbsp;&nbsp;Totals | $&nbsp;&nbsp;324757 | $&nbsp;&nbsp;1186679 |

---

**NOTE 15 - SUBSEQUENT EVENTS**

The Company has evaluated subsequent events through September 18, 2025, the date on which the consolidated financial statements were available to be issued and has found no material transactions to report.

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| | |
|:---|:---|
| **ITEM 2** | **MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS** |

---

**Forward-Looking Statements**

Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are "forward-looking statements."

These forward-looking statements generally are identified by the words "believes," "project," "expects," "anticipates," "estimates," "intends," "strategy," "plan," "may," "will," "would," "will be," "will continue," "will likely result," and similar expressions.

Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on our operations and future prospects on a consolidated basis include but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.

**Company Overview**

***Corporate History***

World Scan Project, Inc., a Delaware corporation ("the Company") was incorporated under the laws of the State of Delaware on October 25, 2019.

On October 25, 2019, Ryohei Uetaki, our officer and director, paid for expenses involved with the incorporation of the Company with personal funds on behalf of the Company, in exchange for 10,000,000 shares of Common Stock, par value $0.0001 per share and 10,000,000 shares of Series A Preferred stock, par value $0.0001 per share, which issuance was exempt from the registration provisions of Section 5 of the Securities Act under Section 4(2) of such same said act. The value of the stock provided to Mr. Uetaki, based on the par value of $.0001 per share of common stock and Series A Preferred Stock, is valued at $2,000.

On October 25, 2019, Ryohei Uetaki was appointed as Chief Executive Officer, Chief Financial Officer, President, Director, Secretary, and Treasurer.

On November 18, 2019, Yasumasa Ichikawa was appointed as Chief Technology Officer.

On January 25, 2020, the Company entered into and consummated a Share Contribution Agreement with Ryohei Uetaki. Pursuant to this agreement Mr. Uetaki gifted to the Company, at no cost, 300 shares of common stock of World Scan Project Corporation, a Japan corporation ("WSP Japan"), which represented all of its issued and outstanding shares. The Company has since gained a 100% interest in the issued and outstanding shares of WSP Japan's common stock and WSP Japan is now a wholly owned subsidiary of the Company. The Company and WSP Japan were under common control at the time of the acquisition.

WSP Japan was incorporated under the laws of Japan on January 22, 2020. Currently, WSP Japan is headquartered in Tokyo, Japan. The Company's primary business is focused on developing and manufacturing of autonomous aerial vehicles including drones.

On February 19, 2020, Ryohei Uetaki gifted 7,000,000 shares of our Common Stock and 10,000,000 shares of our Series A Preferred Stock, which represented all of our issued and outstanding shares of Preferred Stock at the time, to SKYPR LLC, a Delaware Limited Liability Company (referred to herein as "SKYPR LLC"). Our CEO Ryohei Uetaki owns and controls 100% of the membership interests in SKYPR LLC.

In September 2020, the Company entered into subscription agreements with 41 shareholders. Pursuant to these agreements, the Company issued 647,350 shares of common stock in total to these shareholders and received $323,675 as aggregate consideration. At the time of purchase the price paid per share by each shareholder was the equivalent of about 0.50 USD.

These shares were sold pursuant to the Company's effective S-1 Registration Statement deemed effective on August 28, 2020 at 4pm EST.

In June and August of 2023, the Company entered into subscription agreements with 10 shareholders. Pursuant to these agreements, the Company issued 170,000 shares of Common Stock in total to these shareholders and received $1,740,000 as aggregate consideration. At the time of purchase the price paid per share by each shareholder was approximately 10.00 USD. These shares were sold pursuant to the Company's effective S-1 Registration Statement deemed effective on May 25, 2023 at 4pm EST. This offering has been completed and is no longer ongoing.

On August 13, 2024, we filed a Form 8-K with the SEC to announce that Mr. Ryohei Uetaki had chosen to extend the offering period of the S-1 Registration Statement, which was declared effective by the Securities and Exchange Commission at 4:00 PM EST on August 23, 2023 by an additional 90 calendar days. As a result, the offering concluded on November 21, 2024.

We operate through our wholly owned subsidiary, World Scan Project Corporation, a Japanese Company. The Company is an industrial automation equipment manufacturer, designing/developing robots, drones, Web3 infrastructure, IoT equipment and other related products.

Our principal executive offices are located at 2-18-23, Nishiwaseda, Shinjuku-Ku, Tokyo, 169-0051, Japan.

***Liquidity and Capital Resources***

As of January 31, 2025 we had cash and cash balance in the amount of $1,449,453. Currently, our cash balance is sufficient to fund our operations without the need for additional funding.

***Revenues***

We recorded revenues of $4,084,010 for the three months ended January 31, 2025. We recorded revenues of $6,635,195 for the three months ended January 31, 2024. This decrease in revenues was due mainly to a decrease in the sales of crypto miners.

***Net Income***

 ****

We recorded net income of $101,969 for the three months ended January 31, 2025. We recorded a net loss of $308,262 for the three months ended January 31, 2024. This increase in net income was due mainly to a decrease in the cost of goods sold and a decrease in general and administrative expenses.

***Cash flow***

For the three months ended January 31, 2025, we had negative cash flows used in operations in the amount of $5,293,451. The decrease in operating cash flow is attributed to an decrease in accounts payable and accruals during this period. For the three months ended January 31, 2025, we had no cash flows used in investing activities. For the three months ended January 31, 2025, we had cash flows from financing activities, totaling $5,244,000, from cash received from the sales of common shares.

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| | |
|:---|:---|
| **ITEM 3** | **QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK** |

---

As a smaller reporting company, as defined in Rule 12b-2 of the Exchange Act, we are not required to provide the information called for by this Item.

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[**Table of Contents**](#table)

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| | |
|:---|:---|
| **ITEM 4** | **CONTROLS AND PROCEDURES** |

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***Management's Report on Disclosure Controls and Procedures***

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to our management, including our chief executive officer and our chief financial officer (who is acting as our principal executive officer, principal financial officer and principle accounting officer) to allow for timely decisions regarding required disclosure.

As of January 31, 2025, we carried out an evaluation, under the supervision of our chief executive officer, with the participation of our chief financial officer, of the effectiveness of the design and the operation of our disclosure controls and procedures. The officers concluded that the disclosure controls and procedures were not effective as of the end of the period covered by this report due to material weaknesses identified below.

The matters involving internal controls and procedures that our management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were: domination of management by a single individual without adequate compensating controls, lack of a majority of outside directors on board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; inadequate segregation of duties consistent with control objectives, and lack of an audit committee. These material weaknesses were identified by our Chief Executive Officer, who also serves as our Chief Financial Officer in connection with the above evaluation.

***Inherent limitations on effectiveness of controls***

Internal control over financial reporting has inherent limitations which include but is not limited to the use of independent professionals for advice and guidance, interpretation of existing and/or changing rules and principles, segregation of management duties, scale of organization, and personnel factors. Internal control over financial reporting is a process which involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures. Internal control over financial reporting also can be circumvented by collusion or improper management override. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements on a timely basis, however these inherent limitations are known features of the financial reporting process and it is possible to design into the process safeguards to reduce, though not eliminate, this risk. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

***Changes in Internal Control over Financial Reporting***

 ****

There have been no changes in our internal controls over financial reporting that have occurred for the fiscal quarter ended January 31, 2025, that have materially or are reasonably likely to materially affect, our internal controls over financial reporting.

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[**Table of Contents**](#table)

**PART II-OTHER INFORMATION**

---

| | |
|:---|:---|
| **ITEM 1** | **LEGAL PROCEEDINGS** |

---

There are no legal proceedings against the Company and the Company is unaware of such proceedings contemplated against it.

---

| | |
|:---|:---|
| **ITEM 1A** | **RISK FACTORS** |

---

As a smaller reporting company, as defined in Rule 12b-2 of the Exchange Act, we are not required to provide the information called for by this Item.

---

| | |
|:---|:---|
| **ITEM 2** | **UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS** |

---

On October 25, 2019 the Company issued 10,000,000 shares of restricted Common Stock to Ryohei Uetaki for **services rendered to the Company. Additionally, on the same day, it issued 10,000,000 shares of its restricted Series** A Preferred Stock to Ryohei Uetaki, also for services rendered. The aforementioned shares of common and preferred stock were all issued at par value, $0.0001, having a total value of $2,000. No monies were exchanged per the issuances and the shares were all exempt from the registration provisions of Section 5 of the Securities Act under Section 4(2) of such same said act.

On February 19, 2020, Ryohei Uetaki gifted 7,000,000 shares of our Common Stock and 10,000,000 shares of our Series A Preferred Stock, which represented all of our issued and outstanding shares of Preferred Stock at the time, to SKYPR LLC, a Delaware Limited Liability Company (referred to herein as "SKYPR LLC"). Our CEO Ryohei Uetaki owns and controls 100% of the membership interests in SKYPR LLC.

**Uses of Proceeds from Registered Securities**

In September, 2020, the Company entered into subscription agreements with 41 shareholders. Pursuant to these agreements, the Company issued 647,350 shares of common stock in total to these shareholders and received $323,675 as aggregate consideration. At the time of purchase, the price paid per share by each shareholder was the equivalent of about 0.50 USD.

These shares were sold pursuant to the Company's effective S-1 Registration Statement deemed effective on August 28, 2020 at 4pm EST. On August 13, 2024, we filed a Form 8-K with the SEC to announce that Mr. Ryohei Uetaki had chosen to extend the offering period of the S-1 Registration Statement, which was declared effective by the Securities and Exchange Commission at 4:00 PM EST on August 23, 2023 by an additional 90 calendar days. As a result, the offering concluded on November 21, 2024. The Company will continue to provide investors with a current prospectus, including up-to-date financial information and any other required disclosures.

These funds are planned to be used for R&D, marketing and working capital.

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| | |
|:---|:---|
| **ITEM 3** | **DEFAULTS UPON SENIOR SECURITIES** |

---

None.

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| | |
|:---|:---|
| **ITEM 4** | **MINE SAFETY DISCLOSURES** |

---

Not applicable.

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| | |
|:---|:---|
| **ITEM 5** | **OTHER INFORMATION** |

---

None.

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| | |
|:---|:---|
| **ITEM 6** | **EXHIBITS** |

---

---

| | |
|:---|:---|
| Exhibit No. | Description |
| 3.1 | [Certificate of Incorporation](https://www.sec.gov/Archives/edgar/data/1813744/000159991620000109/certificate.htm) (1) |
| 3.2 | [By-laws](https://www.sec.gov/Archives/edgar/data/1813744/000159991620000109/bylaws.htm) (1) |
| 31 | [Certification of the Company's Principal Executive and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to the registrant's report on Form 10-Q for the period ended January 31, 2025](ex31_125.htm) (2) |
| 32 | [Certification of the Company's Principal Executive and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ex32_125.htm) (2) |
| 101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
| 101.LAB | Inline XBRL Taxonomy Extension Labels Linkbase Document. |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

(1) Filed as
 an exhibit to the Company's Registration Statement on Form S-1, as filed with the SEC on August 26, 2020, and incorporated herein
 by this reference.

(2) Filed herewith.

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**SIGNATURES**

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, there unto duly authorized.

**World Scan Project, Inc.**

(Registrant)

By: <u>/s/ Ryohei Uetaki</u>

Name: Ryohei Uetaki

Chief Executive Officer and Chief Financial Officer

Dated: September 18, 2025

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## Ex-31

EXHIBIT 31.1

World Scan Project, INC.

OFFICER'S CERTIFICATE PURSUANT TO SECTION 302

I, Ryohei Uetaki, certify that:

1. I have reviewed this report on Form 10-Q of World Scan Project, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;

4. The small business issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The small business owner's other certifying officer and I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small issuer's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.

Dated: September 18, 2025

By: <u>/s/ Ryohei Uetaki</u>

Ryohei Uetaki,

*Chief Executive Officer*

(Principal Executive Officer)

EXHIBIT 31.2

World Scan Project, INC.

OFFICER'S CERTIFICATE PURSUANT TO SECTION 302

I, Ryohei Uetaki, certify that:

1. I have reviewed this report on Form 10-Q of World Scan Project, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;

4. The small business issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The small business owner's other certifying officer and I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small issuer's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.

Dated: September 18, 2025

By: <u>/s/ Ryohei Uetaki</u>

Ryohei Uetaki,

*Chief Financial Officer*

(Principal Financial Officer)

## Ex-32

EXHIBIT 32.1

World Scan Project, INC.

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF

THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of World Scan Project, Inc. (the Company) on Form 10-Q for the quarterly period ended January 31, 2025, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Ryohei Uetaki, Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. ss.1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to Ryohei Uetaki and will be retained by World Scan Project, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

Dated: September 18, 2025

By: <u>/s/ Ryohei Uetaki</u>

Ryohei Uetaki,

*Chief Executive Officer*

(Principal Executive Officer)

EXHIBIT 32.2

World Scan Project, INC.

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF

THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of World Scan Project, Inc. (the Company) on Form 10-Q for the quarterly period ended January 31, 2025, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Ryohei Uetaki, Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. ss.1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to Ryohei Uetaki and will be retained by World Scan Project, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

Dated: September 18, 2025

By: <u>/s/ Ryohei Uetaki</u>

Ryohei Uetaki,

*Chief Financial Officer*

(Principal Financial Officer)