# EDGAR Filing Document

**Accession Number:** 0001557376
**File Stem:** 0001829126-25-004512
**Filing Date:** 2025-6
**Character Count:** 109710
**Document Hash:** da178805ff5b2e048c8939013e3f435c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001829126-25-004512.hdr.sgml**: 20250616

**ACCESSION NUMBER**: 0001829126-25-004512

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 74

**CONFORMED PERIOD OF REPORT**: 20250430

**FILED AS OF DATE**: 20250616

**DATE AS OF CHANGE**: 20250616

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Zeo ScientifiX, Inc.
- **CENTRAL INDEX KEY:** 0001557376
- **STANDARD INDUSTRIAL CLASSIFICATION:** BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836]
- **ORGANIZATION NAME:** 03 Life Sciences
- **EIN:** 474180540
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1031

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-55008
- **FILM NUMBER:** 251050260

**BUSINESS ADDRESS:**
- **STREET 1:** 3321 COLLEGE AVENUE
- **STREET 2:** SUITE 246
- **CITY:** DAVIE
- **STATE:** FL
- **ZIP:** 33314
- **BUSINESS PHONE:** 888-963-7881

**MAIL ADDRESS:**
- **STREET 1:** 3321 COLLEGE AVENUE
- **STREET 2:** SUITE 246
- **CITY:** DAVIE
- **STATE:** FL
- **ZIP:** 33314

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Organicell Regenerative Medicine, Inc.
- **DATE OF NAME CHANGE:** 20180625

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Biotech Products Services & Research, Inc.
- **DATE OF NAME CHANGE:** 20150917

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BESPOKE TRICYCLES INC
- **DATE OF NAME CHANGE:** 20120831

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

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549**

**FORM 10-Q**

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended **April 30, 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: **000-55008**

**Zeo ScientifiX, Inc.**

(Exact Name of Registrant as Specified in Its Charter)

---

| | |
|:---|:---|
| **Nevada** | **47-4180540** |
| (State or Other Jurisdiction of<br> Incorporation or Organization) | (I.R.S. Employer<br> Identification No.) |
| **3321 College Avenue, Suite 246**<br> **Davie, FL** | **33314** |
| (Address of Principal Executive Offices) | (Zip Code) |

---

Registrant's Telephone Number, Including Area Code: (**888) 963-7881**

**Securities registered pursuant to Section 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| None | N/A | N/A |

---

**Securities registered pursuant to Section 12(g) of the Act:** Common Stock, $0.001 par value

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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 ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files.) Yes ☒ 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 "accelerated filer", "large accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☐ Accelerated Filer ☐ <br> Non-Accelerated Filer ☒ Smaller reporting company ☒ <br> 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 ☐ No ☒

As of June 16, 2025, there were 6,449,817 shares of common stock, $0.001 par value per share, issued and outstanding.

**ZEO SCIENTIFIX, INC.**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | **PAGE NO.** |
| **[PART I](#a_001)** | [**FINANCIAL INFORMATION**](#a_001) |  |
| &nbsp;&nbsp;&nbsp;[Item 1.](#a_002) | [Condensed Unaudited Financial Statements](#a_002) | 1 |
| &nbsp;&nbsp;&nbsp;[Item 2.](#a_003) | [Management's Discussion and Analysis of Financial Condition and Results of Operations.](#a_003) | 20 |
| &nbsp;&nbsp;&nbsp;[Item 3.](#a_004) | [Quantitative and Qualitative Disclosures About Market Risk.](#a_004) | 27 |
| &nbsp;&nbsp;&nbsp;[Item 4.](#a_005) | [Controls and Procedures.](#a_005) | 27 |
| **[PART II](#a_006)** | [**OTHER INFORMATION**](#a_006) |  |
| &nbsp;&nbsp;&nbsp;[Item 1.](#a_007) | [Legal Proceedings.](#a_007) | 28 |
| &nbsp;&nbsp;&nbsp;[Item 1A.](#a_008) | [Risk Factors.](#a_008) | 28 |
| &nbsp;&nbsp;&nbsp;[Item 2.](#a_009) | [Unregistered Sales of Equity Securities and Use of Proceeds.](#a_009) | 28 |
| &nbsp;&nbsp;&nbsp;[Item 3.](#a_010) | [Defaults Upon Senior Securities.](#a_010) | 28 |
| &nbsp;&nbsp;&nbsp;[Item 4.](#a_011) | [Mine Safety Disclosures.](#a_011) | 28 |
| &nbsp;&nbsp;&nbsp;[Item 5.](#a_012) | [Other Information.](#a_012) | 28 |
| &nbsp;&nbsp;&nbsp;[Item 6.](#a_013) | [Exhibits.](#a_013) | 28 |
| &nbsp;&nbsp;&nbsp;[Signatures](#a_014) | &nbsp;&nbsp;&nbsp;[Signatures](#a_014) | 29 |

---

i

Unless stated otherwise, the words "we," "us," "our," the "Company" or "ZEO" in this Quarterly Report on Form 10-Q (this "Report") refer to Zeo ScientifiX, Inc. (f/k/a Organicell Regenerative Medicine, Inc.), a Nevada corporation, and its subsidiaries.

**Cautionary Note Regarding Forward- Looking Statements**

The statements contained in this Report that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"). These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts. Statements using words such as "may," "could," "should," "expect," "plan," "project," "strategy," "forecast," "intend," "anticipate," "believe," "estimate," "predict," "potential," "pursue," "target," "continue," or similar expressions help identify forward-looking statements.

The forward-looking statements contained in this Report are largely based on our expectations, which reflect estimates and assumptions made by our management. These estimates and assumptions reflect our best judgment based on currently known market conditions and other factors. Although we believe such estimates and assumptions to be reasonable, they are inherently uncertain and involve a number of risks and uncertainties that are beyond our control. In addition, management's assumptions about future events may prove to be inaccurate. Management cautions all readers that the forward-looking statements contained in this Report are not guarantees of future performance, and management cannot assure any reader that such statements will be realized or the forward-looking events and circumstances will in fact occur. The Company's actual results may differ materially from those anticipated, estimated, projected or expected by management.

All forward-looking statements speak only as of the date of this Report. We do not intend to publicly update or revise any forward-looking statements as a result of new information, future events or otherwise.

ii

**Part I – FINANCIAL INFORMATION**

**Item 1. Financial Statements**

**Zeo ScientifiX, Inc.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(Amounts rounded to the nearest thousand except share amounts)**

---

| | | |
|:---|:---|:---|
|  | **April 30,<br>2025** | **October 31,**<br>**2024** |
|  | **(Unaudited)** | |
| **ASSETS** |  |  |
| **Current Assets** |  |  |
| Cash | $542000 | $657000 |
| Accounts receivable, net of allowance for bad debts | 11000 | 194000 |
| Other receivables | 1000 | 3000 |
| Prepaid expenses | 76000 | 79000 |
| Inventories | 235000 | 232000 |
| **Total Current Assets** | 865000 | 1165000 |
| Property and equipment, net | 570000 | 478000 |
| **TOTAL ASSETS** | $1435000 | $1643000 |
| **LIABILITIES, SHARES SUBJECT TO POSSIBLE REDEMPTION AND STOCKHOLDERS' DEFICIT** |  |  |
| **Current Liabilities** |  |  |
| Accounts payable and accrued expenses | $1885000 | $1719000 |
| Finance lease obligations | 20000 | 5000 |
| Convertible promissory note, net of debt discount of $33,000 and $45,000 | 692000 | 680000 |
| Deferred revenue | 856000 | 884000 |
| **Total Current Liabilities** | 3453000 | 3288000 |
| Long term finance lease obligations | 82000 | 8000 |
| **Total Liabilities** | 3535000 | 3296000 |
| **Commitments and contingencies** |  |  |
| **Shares Subject To Possible Redemption** |  |  |
| Series C Preferred Stock, $0.001 par value, 100 shares authorized; 100 and 100 shares issued and outstanding, respectively |  |  |
| **Stockholders' Deficit** |  |  |
| Common stock, $0.001 par value, 2,500,000,000 shares authorized; 6,344,817 and 6,344,817 shares issued and outstanding, respectively | 6000 | 6000 |
| Additional paid-in capital | 62741000 | 60554000 |
| Accumulated deficit | (64847000) | (62213000) |
| **Total Stockholders' Deficit** | (2100000) | (1653000) |
| **TOTAL LIABILITIES, SHARES SUBJECT TO POSSIBLE REDEMPTION AND STOCKHOLDERS' DEFICIT** | $1435000 | $1643000 |

---

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

**Zeo ScientifiX, Inc.**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

**(Amounts rounded to the nearest thousand except share amounts)**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br> April 30,** | **Three Months Ended<br> April 30,** | **Six Months Ended<br>April 30,** | **Six Months Ended<br>April 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Revenues (includes sales to related parties of approximately $43,000, $105,000, $75,000, and $169,000, respectively) | $1149000 | $1131000 | $2239000 | $2285000 |
| Cost of revenues | 256000 | 284000 | 447000 | 443000 |
| Gross profit | 893000 | 847000 | 1792000 | 1842000 |
| General and administrative expenses | 2287000 | 2411000 | 4439000 | 4568000 |
| Loss from operations | (1394000) | (1564000) | (2647000) | (2726000) |
| Other income (expense) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (21000) | (20000) | (43000) | (47000) |
| &nbsp;&nbsp;&nbsp;Other income | 24000 | 185000 | 56000 | 334000 |
| Net loss | $(1391000) | $(1399000) | $(2634000) | $(2439000) |
| Net loss per common share - basic and diluted | $(0.22) | $(0.23) | $(0.42) | $(0.39) |
| Weighted average number of common shares outstanding - basic and diluted | 6344817 | 6173768 | 6344817 | 6182375 |

---

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

**Zeo ScientifiX, Inc.**

**CONDENSED CONSOLIDATED CHANGES TO STOCKHOLDERS' DEFICIT**

**For the Three Months and Six Months Ended April 30, 2025 and 2024**

**(Amounts rounded to the nearest thousand except share amounts)**

(Unaudited)

<u>**Three Months Ended April 30,**</u>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Par Value** | **Additional**<br>**Paid In**<br>**Capital** |<br>**Accumulated**<br>**Deficit** | **Total**<br>**Stockholders'**<br>**Deficit** |
| Balance February 1, 2024 | 6125482 | $6000 | $57034000 | $(58548000) | $(1508000) |
| Reverse split round-up adjustment | (188) |  |  |  |  |
| Cancellation of shares in connection with litigation | (750) |  |  |  |  |
| Exchange of accounts payable for stock | 20000 |  | 20000 |  | 20000 |
| Fair value of equity instruments issued for compensation: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fair value of vested shares issued | 187875 |  | 387000 |  | 387000 |
| &nbsp;&nbsp;&nbsp;Fair value of vested options issued |  |  | 273000 |  | 273000 |
| &nbsp;&nbsp;&nbsp;Fair value of vested warrants issued |  |  | 527000 |  | 527000 |
| Net loss | - | - | - | (1399000) | (1399000) |
| Balance April 30, 2024 | 6332419 | $6000 | $58241000 | $(59947000) | $(1700000) |
| Balance February 1, 2025 | 6344817 | $6000 | $61645000 | $(63456000) | $(1805000) |
| Fair value of equity instruments issued for compensation: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fair value of vested shares issued |  |  | 21000 |  | 21000 |
| &nbsp;&nbsp;&nbsp;Fair value of vested options issued |  |  | 265000 |  | 265000 |
| &nbsp;&nbsp;&nbsp;Fair value of vested warrants issued |  |  | 810000 |  | 810000 |
| Net loss | - | - | - | (1391000) | (1391000) |
| Balance April 30, 2025 | 6344817 | $6000 | $62741000 | $(64847000) | $(2100000) |

---

**<u><u>Six Months Ended April 30,</u></u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Par Value** | **Additional<br> Paid In**<br>**Capital** | **Accumulated**<br>**Deficit** | **Total<br> Stockholders'**<br>**Deficit** |
| Balance October 31, 2023 | 7283483 | $7000 | $56260000 | $(57508000) | $(1241000) |
| Reverse split round-up adjustment | 5803 |  |  |  |  |
| Cancellation of shares in connection with litigation | (1164742) | (1000) | 1000 |  |  |
| Exchange of accounts payable for stock | 20000 |  | 20000 |  | 20000 |
| Fair value of equity instruments issued for compensation: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fair value of vested shares issued | 187875 |  | 387000 |  | 387000 |
| &nbsp;&nbsp;&nbsp;Fair value of vested options issued |  |  | 519000 |  | 519000 |
| &nbsp;&nbsp;&nbsp;Fair value of vested warrants issued |  |  | 1054000 |  | 1054000 |
| Net loss | - | - | - | (2439000) | (2439000) |
| Balance April 30, 2024 | 6332419 | $6000 | $58241000 | $(59947000) | $(1700000) |
| Balance October 31, 2024 | 6344817 | $6000 | $60554000 | $(62213000) | $(1653000) |
| Fair value of equity instruments issued for compensation: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fair value of vested shares issued |  |  | 53000 |  | 53000 |
| &nbsp;&nbsp;&nbsp;Fair value of vested options issued |  |  | 514000 |  | 514000 |
| &nbsp;&nbsp;&nbsp;Fair value of vested warrants issued |  |  | 1620000 |  | 1620000 |
| Net loss | - | - | - | (2634000) | (2634000) |
| Balance April 30, 2025 | 6344817 | $6000 | $62741000 | $(64847000) | $(2100000) |

---

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

**Zeo ScientifiX, Inc.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Amounts rounded to the nearest thousand except share amounts)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended<br> April 30,** | **Six Months Ended<br> April 30,** |
|  | **2025** | **2024** |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |
| Net loss | $(2634000) | $(2439000) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization expense | 34000 | 38000 |
| &nbsp;&nbsp;&nbsp;Amortization of OID and commitment fee discount – Promissory notes | 12000 | 12000 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 2187000 | 1960000 |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net of allowance for bad debts | 183000 | (42000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivable | 2000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 3000 | (222000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (2000) | 39000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 165000 | (638000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Security deposits |  | 7000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (28000) | 295000 |
| Net cash used in operating activities | (78000) | (990000) |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |
| Payments on finance leases | (37000) | (20000) |
| Net cash used in financing activities | (37000) | (20000) |
| Decrease in cash | (115000) | (1010000) |
| Cash at beginning of period | 657000 | 1756000 |
| Cash at end of period | $542000 | $746000 |
| **SUPPLEMENTAL CASH FLOW INFORMATION:** |  |  |
| Cash paid for taxes | $- | $- |
| Cash paid for interest | $- | $- |
| **NON-CASH INVESTING AND FINANCING TRANSACTIONS:** |  |  |
| Reduction in accounts payable for equipment returned to vendor | $- | $21000 |
| Exchange of shares for payables | $- | $20000 |
| Finance lease obligations | $125000 | $- |

---

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

**Zeo ScientifiX, Inc.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE THREE MONTHS AND SIX MONTHS PERIODS ENDED APRIL 30, 2025 AND 2024**

**(UNAUDITED)**

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

Zeo ScientifiX, Inc. ("ZEO" or the "Company") (f/k/a Organicell Regenerative Medicine, Inc.) was incorporated on August 9, 2011 in the State of Nevada under the name Bespoke Tricycles Inc. (changed to Biotech Products Services and Research, Inc. during September 2015 and to Organicell Regenerative Medicine, Inc., effective June 20, 2018). Effective February 20, 2024, we further amended our Articles of Incorporation to assume our current name, Zeo ScientifiX, Inc.

The Company is a clinical-stage biopharmaceutical company principally focusing on the development of innovative biological therapeutics for the treatment of degenerative diseases and regenerative medicine. The Company's proprietary products, including Zofin™, are derived from perinatal sources and manufactured to retain the naturally occurring extracellular vesicles, proteins and cell secreted nanoparticles and Patient Pure X™ ("PPX™"), an autologous biologic containing a nanoparticle fraction that is precipitated from a patient's own peripheral blood ("RAAM Products"). Our RAAM Products and related services are principally used in the health care industry administered through doctors and clinics ("Providers").

For the six months ended April 30, 2025 and 2024, the Company principally operated through General Surgical of Florida, Inc., a Florida corporation and wholly owned subsidiary, which was formed to sell the Company's therapeutic products to Providers.

Effective November 28, 2023, we implemented a one-for-200 reverse stock split (the "Reverse Split"). The par value of the Company's common stock was unchanged at $0.001 per share after the Reverse Split. As a result, on the effective date of the Reverse Split, the stated capital on the Company's balance sheet attributable to the Company's common stock was reduced proportionately based on the Reverse Split ratio of one-for-200 and the additional paid-in capital account was credited with the amount by which the stated capital was reduced. All share and per share amounts referenced herein give effect to the Reverse Split as of the earliest period presented.

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

*<u>Basis of Presentation</u>*

The accompanying condensed consolidated financial statements are unaudited and include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. In the opinion of management, the condensed unaudited consolidated financial statements contain all adjustments, including normal recurring adjustments, necessary to present fairly the Company's financial position as of April 30, 2025, the results of its operations for the three and six months ended April 30, 2025 and 2024 and the cash flows for the six months ended April 30, 2025 and 2024. Results of operations for the fiscal periods presented herein are not necessarily indicative of fiscal year-end results.

Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to the rules and regulations of the Securities Exchange Commission, although we believe that the disclosures made are adequate to make the information not misleading. These unaudited consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended October 31, 2024 filed with the Securities and Exchange Commission.

All amounts presented have been rounded to the nearest thousand except share amounts, share prices and earnings per share.

*<u>Concentrations of Risk</u>*

**Credit Risk**

The balance sheet items that potentially subject us to concentrations of credit risk are primarily cash and cash equivalents and accounts receivable. Balances in accounts are insured up to Federal Deposit Insurance Corporation ("FDIC") limits of $250,000 per institution. At April 30, 2025, the Company did not have cash balances in one financial institution in excess of FDIC insurance coverage limits.

**Major Customer**

During the six months ended April 30, 2025, the Company sold products and services totaling approximately $270,000 (12.1%) to a large distributor and $341,000 (15.2%) and $228,000 (10.2%) to two individual medical practices.

During the six months ended April 30, 2024, the Company sold products and services totaling approximately $477,000 (20.9%) to a large distributor, approximately $237,000 (10.4%) to another large distributor and approximately $311,000 (13.6%) to an individual medical practice.

The Company's sales agreements are non-exclusive and the Company does not believe it has any exposure based on the customers of its products.

*<u>Use of Estimates</u>*

The preparation of financial statements in conformity with generally accepted accounting principles of the United States 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 year. Management bases its estimates on historical experience and on other assumptions considered to be reasonable under the circumstances. However, actual results may differ from the estimates.

Those estimates and assumptions include estimates for credit loss reserves for accounts receivable, assumptions used in valuing inventories at net realizable value, impairment testing of recorded long-term assets, the valuation allowance for deferred tax assets, accruals for potential liabilities, assumptions made in valuing equity instruments issued for services, and assumptions used in the determination of the Company's liquidity.

*<u>Revenue Recognition</u>*

The Company follows the guidance of the Financial Accounting Standards Board ("FASB') Accounting Standards Update ("ASU") Topic 606 "Revenue from Contracts with Customers" which requires the Company to recognize revenue in amounts that reflect the prorata completion of the performance obligations of the Company required under the contracts.

The Company recognizes revenue only when it transfers control of a promised good or service to a customer in an amount that reflects the consideration it expects to receive in exchange for the good or service. Our performance obligations are satisfied and control is transferred at a point-in-time, which is typically when the transfer and title to the product sold has taken place and there is evidence of our customer's satisfactory acceptance of the product shipment or delivery except in those instances when the customer has made prior arrangements with the Company to store the product purchased by the customer at the Company's facilities that is to be delivered at a later date to be designated by the customer. Amounts received prior to satisfying the revenue recognition criteria are recorded as deferred revenue on the Company's consolidated balance sheet.

*<u>Net Income (Loss) Per Common Share</u>*

Basic income (loss) per common share is calculated by dividing the Company's net loss applicable to common shareholders by the weighted average number of fully vested common shares outstanding during the period. Diluted earnings per share is calculated by dividing the Company's net income available to common shareholders by the diluted weighted average number of fully vested shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted average number of shares adjusted for any potentially dilutive debt or equity instruments.

At April 30, 2025, the Company had 3,591,721 common shares issuable upon the exercise of options and warrants (vested and unvested), 228,333 unvested restricted stock (178,333 unissued) and $725,000 of convertible debt securities that were not included in the computation of dilutive loss per share because their inclusion is anti-dilutive for the six months ended April 30, 2025.

At April 30, 2024, the Company had 2,644,194 common shares issuable upon the exercise of options and warrants (vested and unvested), 167,500 unvested restricted stock and $725,000 of convertible debt securities warrants that were not included in the computation of dilutive loss per share because their inclusion is anti-dilutive for the six months ended April 30, 2024.

*<u>Stock-Based Compensation</u>*

All stock-based payments are recognized in the financial statements based on their fair values.

The Company periodically issues stock options and stock awards to employees and non-employees in non-capital raising transactions for services and for financing costs. The Company accounts for such grants issued and vesting based on ASC 718, *Compensation-Stock Compensation* whereby the value of the award is measured on the date of grant and recognized for employees as compensation expense on the straight-line basis over the vesting period. Recognition of compensation expense for non-employees is in the same period and manner as if the Company had paid cash for the services.

The fair value of the Company's stock options is estimated using the Black-Scholes-Merton Option Pricing model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the stock options or restricted stock, and future dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes-Merton Option Pricing model and based on actual experience. The assumptions used in the Black-Scholes-Merton Option Pricing model could materially affect compensation expense recorded in future periods.

*<u>Research and Development Costs</u>*

Research and development costs consist of direct and indirect costs associated with the development of the Company's technologies. These costs are expensed as incurred. Our research and development expenses were approximately $11,000 and $6,000 for the three months ended April 30, 2025 and 2024, respectively and approximately $29,000 and $33,000 for the six months ended April 30, 2025 and 2024, respectively. The research and development costs primarily relate to the filing and approval of IND applications and the performance of clinical trials.

*<u>Fair Value of Financial Instruments</u>*

The Company includes fair value information in the notes to financial statements when the fair value of its financial instruments is different from the book value. When the book value approximates fair value, no additional disclosure is made.

The Company follows FASB ASC 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value and enhances disclosures about fair value measurements. It 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 which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company's financial instruments consist of cash and cash equivalents, accounts payable, accrued liabilities and convertible debt. The estimated fair value of cash, accounts payable and accrued liabilities approximate their carrying amounts due to the short-term nature of these instruments.

The Company follows the provisions of ASC 820 with respect to its financial instruments. As required by ASC 820, assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement.

*Level one* — Quoted market prices in active markets for identical assets or liabilities;

*Level two* — Inputs other than level one inputs that are either directly or indirectly observable such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

*Level three* — Unobservable inputs that are supported by little or no market activity and developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter.

The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, accounts receivable, accounts payable and other payables, approximate their fair values because of the short maturity of these instruments. The carrying values of convertible notes approximate their fair values because interest rates on these obligations are based on prevailing market interest rates.

*<u>Segment Information</u>*

Under ASC 280, Segment Reporting, operating segments are defined as components of an enterprise where discrete financial information is available that is evaluated regularly by the chief operating decision maker ("CODM"), in deciding how to allocate resources and in assessing performance. The Company has one component. Therefore, the Company's Chief Executive Officer, who is also the CODM, makes decisions and manages the Company's operations as a single operating segment for the manufacture and distribution of its products.

<u>*Recently Issued Accounting Pronouncements*</u>

In January 2025, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, in November 2024, and ASU 2025-01, Clarifying the Effective Date. These 6 updates require entities to provide disaggregated disclosure of income statement expenses. The ASUs do not affect the expense captions presented on the face of the income statement but instead require the disaggregation of certain expense captions into specified categories within the footnotes to the financial statements. The ASUs will become effective for the Company beginning December 1, 2027, and is not expected to have a material impact on its consolidated financial statements and related disclosures.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which is intended to improve reportable segment disclosure requirements, primarily through additional disclosures about significant segment expenses. This ASU requires public companies with a single reportable segment to provide all disclosures required under ASC 280. In addition, this ASU requires public companies to include in interim reports all disclosures related to a reportable segment's profit or loss and assets that are currently required in annual reports. While the ASU implements further segment disclosure requirements, it does not change how an entity identifies its operating or reportable segments and it will have no impact on the Company's consolidated financial condition, results of operations or cash flows. This ASU is applicable to the Company's Annual Report on Form 10-K for the fiscal year ending October 31, 2025, and subsequent interim periods. Early adoption is permitted and the amendments must be applied retrospectively to all prior periods presented.

Management does not believe that any other recently issued, but not yet effective, authoritative guidance, if currently adopted, would have a material impact on the Company's financial statements, including their presentation and related disclosures.

**NOTE 3 – GOING CONCERN**

The unaudited accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern. The Company has had limited revenues since its inception. The Company incurred net losses of $2,634,000 for the six months ended April 30, 2025 and used $78,000 of cash in operating activities during that period. In addition, the Company had a stockholders' deficit of $2,100,000 at April 30, 2025.

United States Food and Drug Administration ("FDA") regulations which were announced in November 2017 and which became effective in May 2021 require that the sale of products that fall under Section 351 of the Public Health Services Act pertaining to marketing traditional biologics and human cells, tissues and cellular and tissue based products ("HCT/Ps") can only be sold pursuant to an approved biologics license application ("BLA"). The Company has not obtained any opinion or ruling regarding the Company's operations and whether the processing, sales and distribution of the products it currently produces would be subject to the FDA's previously announced intended enforcement policies regarding HCT/P's.

As a result of the above, the Company's efforts to establish a stabilized source of sufficient revenues to cover operating costs has yet to be achieved and ultimately may prove to be unsuccessful unless (a) the Company's ability to process, sell and distribute the products currently being produced or developed in the future are not restricted; and/or (b) additional sources of working capital through operations or debt and/or equity financings are realized. These financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Management anticipates that the Company will remain dependent, for the near future, on additional investment capital to fund ongoing operating expenses and research and development costs related to development of new products and to perform required clinical studies in connection with the sale of its products. The Company does not have any assets to pledge for the purpose of borrowing additional capital. In addition, the Company relies on its ability to produce and sell products it manufactures that are subject to changing technology and regulations that it currently sells and distributes to its customers. The Company's current market capitalization, common stock liquidity and available authorized shares may hinder its ability to raise equity proceeds. The Company anticipates that future sources of funding, if any, will therefore be costly and dilutive, if available at all.

In view of the matters described in the preceding paragraphs, recoverability of the recorded asset amounts shown in the accompanying consolidated balance sheet assumes that (a) the Company is able to continue to produce products or obtain products under supply arrangements which are in compliance with current and future regulatory guidelines; (b) the Company will be able to establish a stabilized source of revenues, including efforts to expand sales internationally and the development of new product offerings and/or designations of products; (c) obligations to the Company's creditors are not accelerated; (d) the Company's operating expenses remain at current levels and/or the Company is successful in restructuring and/or deferring ongoing obligations; (e) the Company is able to continue its research and development activities, particularly in regards to remaining compliant with the FDA and ongoing safety and efficacy of its products; and/or (f) the Company obtains additional working capital to meet its contractual commitments and maintain the current level of Company operations through debt or equity sources.

There is no assurance that the products we currently produce will not be subject to the FDA's previously announced intended enforcement policies regarding HCT/P's and/or the Company will be able to complete its revenue growth strategy. There is no assurance that the Company's research and development activities will be successful or that the Company will be able to timely fund the required costs of those activities. Without sufficient cash reserves, the Company's ability to pursue growth objectives will be adversely impacted. Furthermore, despite significant effort since July 2015, the Company has thus far been unsuccessful in achieving a stabilized source of revenues.

If revenues do not increase and stabilize, if the Company's ability to process, sell and/or distribute the products currently being produced or developed in the future are restricted, and/or if additional funds cannot otherwise be raised, the Company might be required to seek other alternatives which could include the sale of assets, closure of operations and/or protection under the U.S. bankruptcy laws.

The independent auditor's report dated January 29, 2025 included in our Annual Report on Form 10-K for the year ended October 31, 2024 included an explanatory paragraph as to the Company's ability to continue as a going concern. As of April 30, 2025, based on the factors described above, the Company concluded that there was substantial doubt about its ability to continue to operate as a going concern for the 12 months following the issuance of these financial statements.

**NOTE 4 – INVENTORIES**

---

| | | |
|:---|:---|:---|
|  | **April 30,<br>2025** | **October 31,<br>2024** |
| Raw materials and supplies | $132000 | $164000 |
| Finished goods | 103000 | 68000 |
| Total inventories | $235000 | $232000 |

---

**NOTE 5 – PROPERTY AND EQUIPMENT**

---

| | | |
|:---|:---|:---|
|  | **April 30,<br>2025** | **October 31,<br>2024** |
| Finance lease equipment | $138000 | $13000 |
| Manufacturing equipment | 757000 | 757000 |
|  | 895000 | 770000 |
| Less: accumulated depreciation | (325000) | (292000) |
| Total property and equipment, net | $570000 | $478000 |

---

Depreciation expense totaled $16,000 and $19,000 for the three months ended April 30, 2025 and 2024, respectively.

Depreciation expense totaled $34,000 and $38,000 for the six months ended April 30, 2025 and 2024, respectively.

**NOTE 6 – EQUITY IN NON-MARKETABLE SECURITIES OF AFFILIATED ENTITY**

---

| | | |
|:---|:---|:---|
|  | **April 30,<br>2025** | **October 31,<br>2024** |
| Equity in non-marketable securities | $145000 | 145000 |
| Reserve on carrying value of investment in non-marketable securities | $(145000) | (145000) |
| Equity in non-marketable securities | $- | - |

---

As of April 30, 2025 and October 31, 2024, the Company invested $145,000 in the non-marketable equity securities of Exotropin ("Exotropin"), a privately-held skin-care formulator in an effort to accelerate the Company's development of expertise with respect to the skincare industry and the potential supply of the Company's products in future formulations.

As of April 30, 2025 and October 31, 2024, the Company has recorded total reserves against the carrying value of its investment of Exotropin of $145,000, based on the limited financial history of Exotropin to date and the lack of any information to ascertain the fair value of Exotropin.

During November 2024, the Company received a capital call notice from Exotropin, in which the Company's pro-rata share was $126,000 ("November Capital Call"). The Company has yet committed to participating in the November Capital Call. If the Company does not elect to participate, its interest in Exotropin would be reduced to approximately 5.6% based on all other members fully participating in the November Capital Call.

Sales Representative Agreement

During November 2023, the Company and Exotropin entered into a Sales Representative Agreement ("Sales Agreement") in connection with the Company's efforts to expand the use of its proprietary products for a variety of topical use applications. In connection with the Sales Agreement, the Company will receive commissions on the net sales value of Exotropin products that are sold to pre-approved retailers, wholesale distributors, private label customers and direct to consumer customers which were introduced to Exotropin by the Company of 10%, 5%, 10% and 15%, respectively.

For the three months ended April 30, 2025 and 2024, $19,000 and $53,000, respectively, of commissions were earned under the Sales Agreement. For the six months ended April 30, 2025 and 2024, $51,000 and $87,000, respectively, of commissions were earned under the Sales Agreement. The commissions earned under the Sales Agreement are reflected in other income in the unaudited consolidated financial statements.

**NOTE 7 – FINANCE LEASE OBLIGATIONS**

During April 2025, the Company entered into a lease agreement for certain lab equipment in the amount of $125,000 ("Lease Agreement"). The Lease Agreement was accounted for as a finance lease obligation. Under the terms of the lease agreement, the Company is required to make 60 equal monthly payments of $1,600 plus applicable sales taxes. Under the lease agreement, the Company has the option to acquire all of the leased equipment for a nominal amount upon termination of the lease. The annual interest rate charged in connection with the lease is 2.7%. Lease payments and depreciation of the leased equipment began during June 2025, the date that the lease equipment was installed and became operational. The leased equipment is being depreciated over their estimated useful lives of 15 years beginning from the date it became operational. As of April 30, 2025, $92,000 was due under the lease through 2030, of which $14,000 is current.

**NOTE 8 – RELATED PARTY TRANSACTIONS**

For the three months ended April 30, 2025 and 2024 and the six months ended April 30, 2025 and 2024, the Company sold a total of approximately $24,000, $52,000, $24,000 and $82,000, respectively, of product to a management services organization ("MSO") that provides administrative services and contracts for medical supplies for several medical practices, of which Dr. George Shapiro, the Company's Chief Medical Officer and a member of the board of directors has an indirect economic interest in the parent company that owns the MSO.

During November 2024, the Company received a capital call notice from Exotropin, in which the Company's pro-rata share was $126,000 ("November Capital Call"). The Company has yet committed to participating in the November Capital Call. If the Company does not elect to participate, its interest in Exotropin would be reduced to approximately 5.6% based on all other members fully participating in the November Capital Call (see Note 6).

**NOTE 9 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES**

---

| | | |
|:---|:---|:---|
|  | **April 30,<br>2025** | **October 31,<br>2024** |
| Accrued payroll related liabilities | $667000 | $667000 |
| Lab equipment and supplies payables | 88000 | 54000 |
| Clinical trial and research payables | 634000 | 648000 |
| Legal fees payable | 175000 | 127000 |
| Other professional fees payable | 133000 | 119000 |
| Accrued commissions payable | 21000 | 18000 |
| Construction payables | 9000 | 9000 |
| Other payables and accrued expenses | 158000 | 77000 |
| Total Accounts Payable and Accrued Expenses | $1885000 | $1719000 |

---

**NOTE 10 – NOTES PAYABLE**

---

| | | |
|:---|:---|:---|
|  | **April 30,<br>2025** | **October 31,<br>2024** |
| Convertible Promissory Notes | $725000 | $725000 |
| Unamortized discount | (33000) | (45000) |
| Total Notes Payable | $692000 | $680000 |

---

**Convertible Promissory Notes**

The Convertible Promissory Notes are due September 30, 2026. Interest on the Convertible Promissory Notes is 8.0 % payable annually and together with the principal amount on the maturity date.

The Convertible Promissory Notes may be prepaid by the Company, in whole, but not in part, at any time prior to the Maturity Date, subject to payment of a premium of 10%, provided that the Company gives the holders fifteen (15) business notice prior to prepayment, during which period, Investors may elect to convert the Notes and accrued but unpaid interest thereon into Shares at a conversion price equal to 80% of the average of the daily VWAP of the Shares (as defined in the Note) for twenty consecutive (20) trading days ending on the date the Company gives the holders of the Convertible Promissory Notes notice of prepayment.

Holders of the Convertible Promissory Notes will have the right, at any time during the period commencing on April 1, 2024 and ending on the earliest to occur of the Maturity Date, the date of a Prepayment or the date of an automatic conversion, to convert the Convertible Promissory Note in whole, but not in part, and accrued interest thereon into Shares at a conversion price equal to 80% of the average of the daily VWAP of the Shares (as defined in the Convertible Promissory Note) for twenty consecutive (20) trading days ending on the date the investor gives the Company a notice of conversion, subject to a minimum conversion price of $6.00 per Share.

In addition, the Convertible Promissory Notes and accrued but unpaid interest thereon will automatically convert into Shares in the event that prior to the Maturity Date, the Company consummates a "Qualified Financing" or a "Qualified Sale" (as defined in the Convertible Promissory Note) at a conversion price equal to 80% of the offering price of Shares sold in the Qualified Financing or 80% of the purchase price per Share to be received by stockholders following consummation of a Qualified Sale.

In connection with the issuance of the Convertible Promissory Notes, the Company recorded a discount in the amount of $72,000. The discount is being amortized over the term of Convertible Promissory Notes. For the three months ended April 30, 2025 and 2024, $5,000 and $5,000, respectively, of the discounts recorded in connection with the issuance of the Convertible Promissory Notes have been amortized. For the six months ended April 30, 2025 and 2024, $12,000 and $12,000, respectively, of the discounts recorded in connection with the issuance of the Convertible Promissory Notes have been amortized.

At April 30, 2025, the unamortized debt discount recorded in connection with the issuance of the Convertible Promissory Notes was $33,000.

**NOTE 11 – CAPITAL STOCK**

**<u>Series C Preferred Shares</u>**

During December 2024, Skycrest requested that it be allowed to transfer the 50 shares of Series C Preferred Shares of the Company it holds to Ian T. Bothwell, the Company's Interim Chief Executive Officer and Chief Financial Officer ("Transfer"). In December 2024, the Board of Directors of the Company approved the Transfer and the Transfer was completed.

**<u>Common Stock</u>**

On November 7, 2023, the Company filed a certificate of amendment to its Articles of Incorporation to affect a reverse split of our issued and outstanding common stock on a one-for-two-hundred basis. The reverse stock split was effective with FINRA on November 28, 2023 (the "Reverse Split"). The par value of the Company's common stock was unchanged at $0.001 per share after the Reverse Split. All share and per share amounts have been retroactively adjusted to reflect the split as if it occurred at the earliest period presented.

<u>2021 Plan</u>

In September 2021, the Company adopted the 2021 Equity Incentive Plan ("2021 Plan"). The 2021 Plan permits the grant of Incentive Stock Options, Nonstatutory Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Units, and Performance Shares (an "Award") to any person who is an employee or director of, or consultant to the Company. The maximum aggregate number of shares that may be issued pursuant to all Awards was 1,250,000 shares. On June 6, 2023, the Company's board of directors and stockholders holding a majority of the Company's voting power, approved an increase in the number of shares of the Company's common stock reserved for issuance under the Company's 2021 Plan from 1,250,000 shares to 2,500,000 shares.

The 2021 Plan is administered by (a) the board of the directors of the Company; or (b) a committee designated by the board, which Committee shall be constituted in such a manner as to satisfy the applicable laws and to permit such grants and related transactions under the Plan to be exempt from Section 16(b) of the Exchange Act in accordance with Rule 16b-3. Once appointed, such committee shall continue to serve in its designated capacity until otherwise directed by the board. The board of directors may at any time amend, suspend, or terminate the Plan; provided, however, that no such amendment shall be made without the approval of the Company's shareholders to the extent such approval is required by applicable laws.

As of April 30, 2025, a total of 1,455,482 Awards (net of 1,218,647 Awards redeposited for future issuance) that have been awarded under the 2021 Plan remain issued and outstanding.

<u>Restricted Stock Awards</u>

Effective February 1, 2025, in connection with an agreement with an independent sales representative ("Representative"), the Company agreed to grant the Representative 40,000 shares of the Company's common stock which shall vest quarterly over a 2-year period beginning with the first month subsequent to the monthly period that the Representative has generated a cumulative amount of sales for the Company in excess of $500,000 ("Sales Milestone"). Upon a termination of the Agreement for cause or the failure of the Representative to achieve the Sales Milestone during the 1<sup>st</sup> year of the Agreement, all unvested shares as of such time shall be forfeited (except in the case of a sale of the Company). In addition, the Representative will be entitled to receive commissions on sales of the Company's products to customers introduced by the Representative in the form of cash and common stock of the Company based on sales milestones. The agreement may be terminated by the Company at any time upon 30 days written notice for failure of Representative to meet sales targets, to be solely determined by the Company. The fair value of the shares as of the date of grant was $104,000. The Company will amortize $104,000 of stock-based compensation expense over the remaining term of the agreement beginning when the Representative has met the vesting conditions.

A summary of unvested restricted stock activity for the six months ended April 30, 2025 are presented below:

---

| | | | |
|:---|:---|:---|:---|
|  | **Number of<br>Non-vested<br>Shares** | **Fair Value** | **Weighted-<br>Average<br>Grant Date<br>Value** |
| Non-vested Shares at October 31, 2024 | 185000 | $257000 | $1.79 |
| &nbsp;&nbsp;&nbsp;Non-vested Shares Granted | 40000 | $105000 | $2.62 |
| &nbsp;&nbsp;&nbsp;Vested | (46667) | $(54000) | $- |
| &nbsp;&nbsp;&nbsp;Expired/Forfeited | - | $- | $- |
| Non-vested Shares at April 30, 2025 | 178333 | $308000 | $1.98 |

---

The Company recorded a total of $22,000 and $54,000 of stock-based compensation expense based on the grant date fair value of these shares during the three months and six months ended April 30, 2025, respectively.

There was approximately $308,000 of unamortized compensation associated with unvested stock grants outstanding as of April 30, 2025 that will be amortized over their respective remaining service periods.

**NOTE 12 – STOCK OPTIONS AND WARRANTS**

The Company has issued option securities under its Incentive Plan and warrants entitling the holder to purchase shares of its common stock at specified prices and for specified exercise periods.

**Options:**

A summary of the Company's option activity for the six months ended April 30, 2025 is presented below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of<br>Shares** | **Weighted-<br>average<br>Exercise Price** | **Remaining<br>Contractual<br>Term (years)** | **Aggregate<br>Intrinsic Value** |
| Outstanding at October 31, 2024 | 963288 | $2.94 | 8.07 | $- |
| &nbsp;&nbsp;&nbsp;Granted | 76341 | $2.99 | 5.00 | $- |
| &nbsp;&nbsp;&nbsp;Exercised |  | $- |  | $- |
| &nbsp;&nbsp;&nbsp;Expired/Forfeited | (7147) | $4.50 | 4.10 | $- |
| Outstanding at April 30, 2025 | 1032482 | $2.93 | 7.39 | $1000 |
| Exercisable at April 30, 2025 | 614620 | $3.15 | 7.46 | $1000 |

---

During the six months ended April 30, 2025, under its Incentive Plan, the Board approved the granting of options to certain employees to purchase 11,341 shares of its common stock. The options vest annually over 3 years, expire five years from the date of grant and had an aggregate fair value of $39,000 at the date of grant.

The Company valued the options using a Black-Scholes option pricing model with the following assumptions:

---

| | |
|:---|:---|
| Exercise prices | $4.50 |
| Expected dividends |  |
| Expected volatility | 152% |
| Risk free interest rate | 4.36% |
| Expected term of options | 5.0 years |

---

During the six months ended April 20, 2025, the Board approved the granting of options to purchase 65,000 shares of its common stock to Dr. Everts, Chief Science and Technology Officer of the Company and Mr. Ron Borsheim, Chief Sales Officer of the Company in accordance with their employment agreements. The options are exercisable until the fifth anniversary date of the date of issuance and had an aggregate fair value of $177,125. The options vest over a five-year periods. The Company valued the options using a Black-Scholes option pricing model with the following assumptions:

---

| | |
|:---|:---|
| Exercise prices | $2.50 - $3.08 |
| Expected dividends |  |
| Expected volatility | 149% - 151 |
| Risk free interest rate | 3.91% - 4.34 |
| Expected term of options | 5.0 years |

---

Options totaling 7,147 that were previously issued to certain employees that were no longer employed by the Company as of April 30, 2025, were forfeited.

During the three months ended April 30, 2025 and 2024, the Company amortized $265,000 and $273,000, respectively, of stock compensation costs associated with options vesting during the period.

During the six months ended April 30, 2025 and 2024, the Company amortized $514,000 and $519,000, respectively, of stock compensation costs associated with options vesting during the period.

There was approximately $978,000 of unamortized compensation associated with options outstanding as of April 30, 2025 that will be amortized over their respective remaining service periods.

**Warrants:**

A summary of the Company's warrant activity for the six months ended April 30, 2025 is presented below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of<br>Shares** | **Weighted-<br>average<br>Exercise Price** | **Remaining<br>Contractual<br>Term (years)** | **Aggregate<br>Intrinsic Value** |
| Outstanding at October 31, 2024 | 2559239 | $3.77 | 7.97 | $- |
| &nbsp;&nbsp;&nbsp;Granted |  | $- |  | $- |
| &nbsp;&nbsp;&nbsp;Exercised |  | $- |  | $- |
| &nbsp;&nbsp;&nbsp;Expired/Forfeited | - | $- | - | $- |
| Outstanding at April 30, 2025 | 2559239 | $3.77 | 7.47 | $4000 |
| Exercisable at April 30, 2025 | 2228684 | $3.98 | 7.22 | $4000 |

---

During the three months ended April 30, 2025 and 2024, the Company amortized $810,000 and $527,000, respectively, of stock compensation costs associated with warrants vesting during the period.

During the six months ended April 30, 2025 and 2024, the Company amortized $1,620,000 and $1,054,000, respectively, of stock compensation costs associated with warrants vesting during the period.

There was approximately $1,385,000 of unamortized compensation associated with warrants outstanding as of April 30, 2025 that will be amortized over their respective remaining service periods.

All stock compensation expense is classified under general and administrative expenses in the consolidated statements of operations.

**NOTE 13 – COMMITMENTS AND CONTINGENCIES**

<u>**Joint Venture with BioXtek, LLC**</u>

On February 4, 2025, the Company entered into a Binding Memorandum of Understanding ("Binding MOU") with BioXtek, LLC, a Florida limited liability company ("BioXtek") setting forth the terms of a joint development, manufacturing, marketing and funding arrangement to be entered into by the Company and BioXtek in various phases ("Joint Venture").

The Joint Venture contemplates, among other matters:

● The Company relocating its current operations located at Nova Southeastern University in Davie, Florida, to sublet space at the BioXtek Facility in Pompano Beach, Florida expected to be completed by May 31. 2025, which will include administrative, laboratory (research and development) and clean room (tissue processing) space, as well as shared common area space;

● The Company and BioXtek establishing a jointly-owned (50/50) special purpose entity (the "SPE"), to pursue the development and commercialization of agreed upon products including membrane patches that are used primarily in the wound care and surgical markets ("Membrane Products"), and conduct and complete required clinical trials and/or studies for mutually agreed upon indications and products with the goal of the SPE obtaining FDA approval in the form of a BLA license or other designated license required by the FDA to permit the SPE to commercialize the product(s) (the "SPE Business"). The Company and BioXtek have agreed to use their respective commercially reasonable efforts to secure funding for the SPE Business. In addition, under the terms of the Joint Venture, the SPE will become the exclusive distributor (subject to certain agreed upon exceptions for current customers of BioXtek) of the Membrane Products;

● In addition, as a result of the Joint Venture, the parties intend to seek operating efficiencies as a result of overlap in their respective operations, including administrative, laboratory and research personnel and research and manufacturing assets used in connection with the SPE Business and their respective individual businesses;

The Company and BioXtek have agreed to work in good faith towards the preparation, authorization, execution and delivery of a series of definitive agreements documenting the Joint Venture on the terms set forth in the Binding MOU and including other terms and conditions typical and customary for agreements of this type and nature. However, in the event the Parties fail to agree upon and execute such definitive agreements, then the Binding MOU shall govern the terms of the Joint Venture.

**<u>Deferred Revenue</u>**

Amounts received by the Company for products that have yet to be delivered to the customers as of April 30, 2025 and October 31, 2024 are reflected in the Company's balance sheet as deferred revenues and were comprised of the following:

---

| | | |
|:---|:---|:---|
|  | **April 30,<br>2025** | **October 31,<br>2024** |
| Advances On Future Purchases Of Inventory | $483000 | $608000 |
| Sales To Customers Not Yet Delivered | 373000 | 276000 |
| Total Deferred Revenue | $856000 | $884000 |

---

<u>**Employment Agreements**</u>

*Dr. Peter A. M. Everts, Ph.D.*

Effective February 7, 2025, Dr. Peter A. M. Everts, Ph.D. ("Dr. Everts") was appointed the Company's Chief Scientific and Technology Officer. Dr. Everts' employment agreement provides for a base salary of $220,000 for the first year and $235,000 per annum for each subsequent year it is in effect, subject to adjustment of up to $15,000, in the event certain compensation under a consulting agreement which Dr. Everts is party to with a non-affiliated third party is not paid. In connection with the employment agreement, Dr. Everts was granted an option under the 2021 Plan to purchase 25,000 shares of our common stock at a price of $3.05 per share (fair market value on the date of grant) ("Everts Option"). The Everts Option vests 50% on the one-year anniversary of the effective date of the employment agreement and 50% on the second anniversary, contingent upon Dr. Everts' continued employment with the Company and to the extent vested, expires five years from the date of grant.

Dr. Everts may also be paid a performance bonus to the extent earned, based on criteria established by the Company's Board of Directors, and may be eligible to participate in the employee benefit plans maintained by the Company and generally applicable to other senior executives of the Company.

Dr. Everts' employment with the Company is "At Will" meaning that his employment with the Company and his employment agreement may be terminated by the Company at any time, for any reason or for no reason at all and with or without "Cause" (as defined in the Agreement). Notwithstanding the foregoing, if at any time after the first ninety (90) days of the term, the Company terminates Dr. Everts' employment without Cause or Dr. Everts terminates his employment with the Company for "Good Reason" (as defined in the Agreement), Dr. Everts will be entitled to receive an amount equal to one quarter (1/4) month's salary for each successive three (3) months of employment completed as severance.

*Ron Borsheim* 

Effective April 1, 2025, Ron Borsheim was appointed the Company's Chief Sales Officer - Aesthetics. Mr. Borsheim's employment agreement provides for a base salary of $225,000 and the grant of an option under ZEO's Equity Incentive Plan (the "Incentive Plan") to purchase 40,000 shares of our common stock at a price of $2.50 per share (fair market value on the date of grant) (the "Option"). The Option vests 50% on the one-year anniversary of the effective date of the employment agreement and 50% on the second anniversary, contingent upon Mr. Borsheim's' continued employment with the Company and to the extent vested, expires five years from the date of grant.

Mr. Borsheim may also be paid a performance bonus to the extent earned, based on criteria established by the Company's Board of Directors or its Compensation Committee, and is eligible to participate in the employee benefit plans maintained by the Company and generally applicable to other senior executives of the Company.

Mr. Borsheim's employment with the Company is "At Will" meaning that his employment with the Company and his employment agreement may be terminated by the Company at any time, for any reason or for no reason at all and with or without "Cause" (as defined in the employment agreement). Notwithstanding the foregoing, if at any time after the first ninety (90) days of the term, the Company terminates Mr. Borsheim's employment without Cause or Mr. Borsheim terminates his employment with the Company for "Good Reason" (as defined in the employment agreement), Mr. Borsheim will be entitled to receive an amount equal to one quarter (1/4) month's salary for each successive three (3) months of employment completed as severance.

Mr. Borsheim's employment agreement contains customary confidentiality, non-competition and non-solicitation covenants.

**<u>Legal Matters</u>**

*Dr. Golub*

On November 19, 2024, Howard Golub, M.D., the Company's former Chief Science Officer ("Plaintiff"), filed a complaint in the Circuit Court of the Seventeenth Judicial Circuit in and for Broward County, Florida against the Company, alleging a breach of contract as a result of the Company's failure to pay Plaintiff severance in the amount of $150,000 in connection with the non-renewal of the Plaintiff's employment agreement with the Company. Plaintiff is demanding judgment in the amount of $150,000 plus interest and attorney's fees. The Company is currently exploring its legal options and intends to vigorously defend against the lawsuit.

*Other*

In addition to the foregoing, from time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. Litigation is subject to inherent uncertainties, and an adverse result in any such matter may harm our business.

**NOTE 14 – OTHER INCOME**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>April 30,** | **Three Months Ended<br>April 30,** |
|  | **2025** | **2024** |
| Other income (expense) |  |  |
| &nbsp;&nbsp;&nbsp;Resolution and settlement of long outstanding payables |  | 130000 |
| &nbsp;&nbsp;&nbsp;Commissions on sales of Exotropin products | 19000 | 53000 |
| &nbsp;&nbsp;&nbsp;Other | 5000 | 2000 |
| &nbsp;&nbsp;&nbsp;Total | $24000 | $185000 |

---

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended<br> April 30,** | **Six Months Ended<br> April 30,** |
|  | **2025** | **2024** |
| Other income (expense) |  |  |
| &nbsp;&nbsp;&nbsp;Resolution and settlement of long outstanding payables |  | 153000 |
| &nbsp;&nbsp;&nbsp;Commissions on sales of Exotropin products | 51000 | 87000 |
| &nbsp;&nbsp;&nbsp;Proceeds from insurance claim |  | 89000 |
| &nbsp;&nbsp;&nbsp;Other | 5000 | 5000 |
| &nbsp;&nbsp;&nbsp;Total | $56000 | $334000 |

---

**NOTE 15 – SUBSEQUENT EVENTS**

<u>**Grant of Unvested Restricted Common Stock**</u>

On May 8, 2025, the Company entered into an agreement with a non-affiliated consultant (the "Consultant") to advise the Company on strategic communication investor relation programs ("Consulting Agreement"). In connection with the Consultant Agreement, the Company granted the Consultant 100,000 shares of common stock ("Shares") and warrants to purchase an additional 500,000 shares of common stock (the "Warrants"). 50,000 of the Shares vested upon execution of the Consulting Agreement and the remaining 50% will vest on the six month anniversary of the Consulting Agreement. The fair value of the Shares as of the date of grant was $286,000. The Company will amortize the $286,000 of stock-based compensation expense over the term of the Consulting Agreement. The Warrants vest in five equal tranches of 100,000 shares, at various exercise prices ranging between $3.50 - $10.00 per share, and are exercisable on the terms provided in the Consulting Agreement. Once vested, the Warrants are exercisable for a period of ninety (90) days from the date they become exercisable. The Company valued the warrants on the date of the grant using the Black-Scholes option pricing model with the following weighted average assumptions: (1) risk free interest rate 4.00%, (2) term of 3 years, (3) expected stock volatility of 143%, and (4) expected dividend rate of 0%. The grant date fair value of the warrants granted was $1,428,000. The Company will amortize $1,428,000 of stock-based compensation based on the vesting of the Warrants. The Company issued the foregoing securities pursuant to the exemption from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"), afforded by Section 4(a)(2) thereof.

On May 8, 2025, under its Incentive Plan, the Board approved the granting of options to certain employees, officers and directors to purchase 165,000 shares of its common stock. 153,000 of the options vest immediately and 12,000 of the options vest over a 4-month period, expire five years from the date of grant and had an aggregate fair value of $472,000 at the date of grant. The Company valued the options using a Black-Scholes option pricing model with the following assumptions:

---

| | |
|:---|:---|
| Exercise prices | $2.86 |
| Expected dividends |  |
| Expected volatility | 148% |
| Risk free interest rate | 4.00% |
| Expected term of options | 5.0 years |

---

On May 8, 2025, the Company awarded warrants to purchase 55,000 shares of our common stock to Greyt Ventures, LLC, a principal shareholder of the Company in consideration of consulting services rendered to the Company. The warrants are fully vested as of the award date and are exercisable for a period of five (5) years from the award date at an exercise price of $2.86 per share.

Effective May 23, 2025, in connection with an agreement with a second consultant ("Second Consultant"), the Company agreed to grant the Second Consultant 40,000 shares of the Company's common stock which shall vest quarterly over a 2-year period commencing on the date that sales obtained by the Company from customers introduced by Second Consultant exceed $400,000 ("Milestone") and provided that the Milestone is achieved by December 31, 2025. Upon termination of the agreement for any reason, any unvested stock shall be forfeited. In addition, the Second Consultant will be entitled to receive commissions on sales of the Company's products to customers introduced by the Representative in the form of cash and common stock of the Company based on sales milestones. The agreement may be terminated by the Company at any time by either party upon 30 days written notice. The fair value of the shares as of the date of grant was $124,000. The Company will amortize $124,000 of stock-based compensation prorata over the vesting period.

**Item 2.** **Management's Discussion and Analysis of Financial Condition and Results of Operations.**

**Business Overview**

We are a clinical-stage biopharmaceutical company principally focusing on the development of innovative biological therapeutics for the treatment of degenerative diseases and regenerative medicine. The Company's proprietary products, including Zofin™, are derived from perinatal sources and manufactured to retain the naturally occurring extracellular vesicles, proteins and cell secreted nanoparticles and Patient Pure X™ ("PPX™"), an autologous biologic containing a nanoparticle fraction that is precipitated from a patient's own peripheral blood ("RAAM Products"). Our RAAM Products and related services are principally used in the health care industry administered through doctors and clinics ("Providers").

The Company is a clinical-stage biopharmaceutical company principally focusing on the development of innovative biological therapeutics for the treatment of degenerative diseases and regenerative medicine. The Company's proprietary products, including Zofin™, are derived from perinatal sources and manufactured to retain the naturally occurring extracellular vesicles, proteins and cell secreted nanoparticles and Patient Pure X™ ("PPX™"), an autologous biologic containing a nanoparticle fraction that is precipitated from a patient's own peripheral blood ("RAAM Products"). Our RAAM Products and related services are principally used in the health care industry administered through doctors and clinics ("Providers").

To date, the Company has obtained certain Investigational New Drug ("IND"), emergency IND ("eIND") approvals from the FDA, including applicable Institutional Review Board ("IRB") approvals which authorized the Company to commence clinical trials or treatments in connection with the use of Zofin™ and PPX™ and related treatment protocols. The Company is pursuing efforts to complete its already approved clinical studies as well as obtaining approval to commence additional studies for other specific indications it has identified that the use of its products will provide more favorable and desired health related benefits for patients seeking alternative treatment options than are currently available. The ability of the Company to succeed in these efforts is subject to among other things, the Company having sufficient available working capital to fund the substantial costs of completing clinical trials, which the Company currently does not have, and ultimately, obtaining approval from the FDA.

Current FDA guidance requires that the sale of products that fall under Section 351 of the Public Health Services Act pertaining to marketing traditional biologics and human cells, tissues and cellular and tissue-based products ("HCT/Ps") can only be sold pursuant to an approved biologics license application ("BLA").

We have not obtained any opinion or ruling regarding the Company's operations and whether the processing, sales and distribution of the products we currently produce would be subject to the FDA's previously announced intended enforcement policies regarding HCT/P's. However, we do not believe that our products fall within these guidelines and intend to vigorously defend against any adverse interpretation by the FDA on the classification of our products that may be deemed as falling under this defined regulation, if any. Notwithstanding the foregoing, we are undertaking efforts on an ongoing basis to mitigate any potential risks associated with an adverse ruling by the FDA and the subsequent limitations on our ability to continue to generate revenues from the sale of our products in the United States until the Company obtains the required licenses. The efforts include continuing with clinical trials, expanding sales internationally and developing new product offerings and/or designations of products that would not fall under these regulations.

All share and per share amounts referenced herein give effect as of the earliest period presented to a 200 for one reverse stock split implemented effective November 28, 2023.

The following discussion of the Company's results of operations and liquidity and capital resources should be read in conjunction with our condensed unaudited financial statements and related notes thereto appearing in "**Item 1**. Financial Statements" of Part I of this Report.

**Results of Operations**

***Three months ended April 30, 2025 as compared to three months ended April 30, 2024***

*Revenues*. Our revenues for the three months ended April 30, 2025 were $1,149,000, compared to revenues of $1,131,000 for the three months ended April 30, 2024. The small increase in revenues during the three months ended April 30, 2025 of $18,000 or 1.6% from the three months ended April 30, 2024, was due to increases in revenues associated with its PPX™ service platform during the three months ended April 30, 2025, compared with the three months ended April 30, 2024, partially offset by decreases in revenues from the Company's allogenic aesthetic biologic products sold during the three months ended April 30, 2025, compared with the three months ended April 30, 2024.

The revenues and percentage of overall unit sales derived from the Company's higher concentration allogenic aesthetic biologic product offerings, lower concentration allogenic aesthetic biologic product offerings and its PPX™ service platform for the three months ended April 30, 2025, as compared to the three months ended April 30, 2024 are presented below:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br> April 30,<br> 2025** | **Three Months Ended<br> April 30,<br> 2025** | **Three Months Ended<br> April 30,<br> 2024** | **Three Months Ended<br> April 30,<br> 2024** | **Change In Revenues &<br> Percentage Of<br> Overall Revenues** | **Change In Revenues &<br> Percentage Of<br> Overall Revenues** |
| Higher Concentration Allogenic Aesthetic Biologics | $335000 | 29.2% | $639000 | 56.5% | $(304000) | -26.9% |
| Lower Concentration Allogenic Aesthetic Biologics | $473000 | 41.2% | $312000 | 27.6% | $161000 | 14.2% |
|  | $808000 | 70.3% | $951000 | 84.1% | $(143000) | -12.6% |
| PPX™ | $282000 | 24.5% | $109000 | 9.6% | $173000 | 15.3% |
| Other | $59000 | 5.1% | $71000 | 6.3% | $(12000) | -1.1% |
| Total | $1149000 | 100.0% | $1131000 | 100.0% | $18000 | 1.6% |

---

The Company attributes the decrease in revenues from higher and lower concentration allogenic aesthetic biologic products sold during the three months ended April 30, 2025, compared to the three months ended April 30, 2024 due to additional product competition in the marketplace and ongoing uncertainties surrounding the United States economy which attracted greater demand for the Company's lower priced allogenic aesthetic biologic product offerings.

The increase in the overall unit sales associated with its PPX™ service platform was primarily due the Company's continued sales and marketing efforts which included engaging additional sales representatives, participation in industry related conferences, sponsoring of educational webinars and from sales of PPX™ to the Company's existing customers.

*Cost of Revenues*. Our cost of revenues for the three months ended April 30, 2025 was $256,000, as compared to cost of revenues of $284,000 for the three months ended April 30, 2024. The decrease in the cost of revenues for the three months ended April 30, 2025 of $28,000 or 9.9%, from the three months ended April 30, 2024, was due to the decrease of approximately $61,000 in the costs of revenues for its allogenic aesthetic biologic products sold for the three months ended April 30, 2025, as compared to the three months ended April 30, 2024, partially offset from an increase of approximately $33,000 of cost of revenues associated with its PPX™ service platform during the three months ended April 30, 2025, compared with the three months ended April 30, 2024.

The decrease in the costs of revenues for its allogenic aesthetic biologic products sold during the three months ended April 30, 2025 as compared to the three months ended April 30, 2024 was the result of sales coming from a greater ratio of lower cost units than higher cost units, partially offset from the overall increase in total units sold.

The increase in the cost of revenues associated with its PPX™ service platform during the three months ended April 30, 2025 as compared to the three months ended April 30, 2024 was the result of an increase in units sold partially offset from the reduction in the costs of revenues per unit sold.

*Gross Profit*. Our gross profit for the three months ended April 30, 2025 was $893,000 (77.7% of revenues), as compared to gross profit of $847,000 (74.9% of revenues) for the three months ended April 30, 2024. The increase in gross profit during the three months ended April 30, 2025 of $46,000 (5.4%) was the result of increases in the gross margins received from sales of its PPX™ service platform, partially offset from reduced gross margins received from the sale of its allogenic aesthetic biologic products.

In addition, the percentage of the Company's revenues associated with its PPX™ service platform, which has a lower gross margin percentage as compared to the Company's allogenic aesthetic biologic product offerings, increased to 24.5% of revenues for the three months ended April 30, 2025, as compared with 9.6% of revenues for the three months ended April 30, 2024. The percentage of the Company's revenues associated with its allogenic aesthetic biologic product decreased to 70.3% of revenues for the three months ended April 30, 2025, as compared with 84.1% of revenues for the three months ended April 30, 2024.

*General and Administrative Expenses*. General and administrative expenses for the three months ended April 30, 2025 were $2,287,000, as compared with $2,411,000 for the three months ended April 30, 2024, a decrease of $124,000 or 5.1%. The decrease in the general and administrative expenses for the three months ended April 30, 2025, from the three months ended April 30, 2024, was primarily the result of (a) decreased payroll and consulting fees of approximately $97,000, (b) decreased commissions and travel costs of approximately $56,000, (c) decreased marketing related expenses of $6,000 and (d) decreased stock-based compensation costs to advisors, consultants and administrative staff totaling approximately $91,000 during the three months ended April 30, 2025, as compared to the three months ended April 30, 2024, which were partially offset by (1) increased laboratory related costs of approximately $63,000, (2) increased professional fees of approximately $19,000 and (3) increased office and insurance related expenses of approximately $39,000 during the three months ended April 30, 2025, as compared to the three months ended April 30, 2024.

The decrease in commissions and travel costs during the three months ended April 30, 2025, as compared to the three months ended April 30, 2024, was principally the result of reduced sales and a larger percentage of sales that were generated from house accounts with much lower commission costs than paid to distributors and/or independent sales representatives. The decrease in payroll related expenses during the three months ended April 30, 2025, from the three months ended April 30, 2024, was principally the result of the non-renewal of certain executive employment contracts in May 2024

*Other income.* Other income for the three months ended April 30, 2025 was $24,000, as compared to other income of $185,000 for the three months ended April 30, 2024, a decrease of $161,000. The decrease in other income was principally due to non-recurring income in connection with the settlement of liabilities of approximately $130,000 which occurred during the three months ended April 30, 2024 and the reduction in commissions received from sales of Exotropin products of approximately $34,000 during the three months ended April 30, 2025 as compared to the three months ended April 30, 2024.

Other expense for the three months ended April 30, 2025 was $21,000, as compared to other expense of $20,000 for the three months ended April 30, 2024. Other expense consisted of interest expense and amortization of discounts associated with the Company's convertible promissory notes outstanding.

***Six months ended April 30, 2025 as compared to six months ended April 30, 2024***

*Revenues*. Our revenues for the six months ended April 30, 2025 were $2,239,000, compared to revenues of $2,285,000 for the six months ended April 30, 2024. The decrease in revenues during the six months ended April 30, 2025 of $46,000 (2.0%) from the six months ended April 30, 2024, was due to decreases in revenues from the Company's allogenic aesthetic biologic products sold during the six months ended April 30, 2025, compared with the six months ended April 30, 2024, partially offset by increases in revenues associated with its PPX™ service platform during the six months ended April 30, 2025, compared with the six months ended April 30, 2024.

The revenues and percentage of overall unit sales derived from the Company's higher concentration allogenic aesthetic biologic product offerings, lower concentration allogenic aesthetic biologic product offerings and its PPX™ service platform for the six months ended April 30, 2025, as compared to the six months ended April 30, 2024 are presented below:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended<br> April 30,**<br> **2025** | **Six Months Ended<br> April 30,**<br> **2025** | **Six Months Ended**<br> **April 30,<br> 2024** | **Six Months Ended**<br> **April 30,<br> 2024** | **Change In Revenues &<br> Percentage Of<br> Overall Revenues** | **Change In Revenues &<br> Percentage Of<br> Overall Revenues** |
| Higher Concentration Allogenic Aesthetic Biologics | $875000 | 39.1% | $1458000 | 63.8% | $(583000) | -25.5% |
| Lower Concentration Allogenic Aesthetic Biologics | $738000 | 33.0% | $553000 | 24.2% | $185000 | 8.1% |
|  | $1613000 | 72.0% | $2011000 | 88.0% | $(398000) | -17.4% |
| PPX™ | $516000 | 23.0% | $169000 | 7.4% | $347000 | 15.2% |
| Other | $110000 | 4.9% | $105000 | 4.6% | $5000 | 0.2% |
| Total | $2239000 | 100.0% | $2285000 | 100.0% | $(46000) | -2.0% |

---

The Company attributes the decrease in revenues from higher and lower concentration allogenic aesthetic biologic products sold during the three months ended April 30, 2025, compared to the three months ended April 30, 2024 due to additional product competition in the marketplace and ongoing uncertainties surrounding the United States economy which attracted greater demand for the Company's lower priced allogenic aesthetic biologic product offerings.

The increase in the overall unit sales associated with its PPX™ service platform was primarily due the Company's continued sales and marketing efforts which included engaging additional sales representatives, participation in industry related conferences, sponsoring of educational webinars and from sales of PPX™ to the Company's existing customers.

*Cost of Revenues*. Our cost of revenues for the six months ended April 30, 2025 was $447,000, as compared to cost of revenues of $443,000 for the three months ended April 30, 2024. The slight increase in the cost of revenues for the six months ended April 30, 2025 from the six months ended April 30, 2024, was due to the decrease of approximately $76,000 in the costs of revenues for its allogenic aesthetic biologic products sold for the six months ended April 30, 2025, as compared to the six months ended April 30, 2024, partially offset from an increase of approximately $79,000 of cost of revenues associated with its PPX™ service platform during the six months ended April 30, 2025, compared with the six months ended April 30, 2024.

The decrease in the costs of revenues for its allogenic aesthetic biologic products sold during the six months ended April 30, 2025 as compared to the six months ended April 30, 2024 was the result of sales coming from a greater ratio of lower cost units than higher cost units, partially offset from the overall increase in total units sold.

The increase in the cost of revenues associated with its PPX™ service platform during the six months ended April 30, 2025 as compared to the six months ended April 30, 2024 was the result of an increase in units sold partially offset from the reduction in the costs of revenues per unit sold.

*Gross Profit*. Our gross profit for the six months ended April 30, 2025 was $1,792,000 (80.0% of revenues), as compared to gross profit of $1,842,000 (80.6% of revenues) for the six months ended April 30, 2024. The decrease in gross profit during the six months ended April 30, 2025 of $50,000 (2.7%) was the result of reduced gross margins received from the sale of its allogenic aesthetic biologic products, partially offset by increases in the gross margins received from sales of its PPX™ service platform.

*General and Administrative Expenses*. General and administrative expenses for the six months ended April 30, 2025 were $4,439,000, as compared with $4,568,000 for the six months ended April 30, 2024, a decrease of $129,000 or 2.8%. The decrease in the general and administrative expenses for the six months ended April 30, 2025, from the six months ended April 30, 2024, was primarily the result of (a) decreased payroll and consulting fees of approximately $211,000, (b) decreased commissions and travel costs of approximately $207,000 and (c) decreased marketing related expenses of $22,000 during the six months ended April 30, 2025, as compared to the six months ended April 30, 2024, which were partially offset by (1) increased stock-based compensation costs to advisors, consultants and administrative staff totaling approximately $227,000, (2) increased laboratory related costs of approximately $74,000 and (3) increased professional fees of approximately $16,000 during the six months ended April 30, 2025, as compared to the six months ended April 30, 2024.

The decrease in commissions and travel costs during the six months ended April 30, 2025, as compared to the six months ended April 30, 2024, was principally the result of reduced sales and a larger percentage of sales that were generated from house accounts with much lower commission costs than paid to distributors and/or independent sales representatives. The decrease in payroll related expenses during the six months ended April 30, 2025, from the six months ended April 30, 2024, was principally the result of the non-renewal of certain executive employment contracts in May 2024

*Other income.* Other income for the six months ended April 30, 2025 was $56,000, as compared to other income of $334,000 for the six months ended April 30, 2024. The decrease in other income was principally due to non-recurring income in connection with an insurance claim of $89,000 and the settlement of liabilities of approximately $153,000 which occurred during the six months ended April 30, 2024 and the reduction in commissions received from sales of Exotropin products of approximately $36,000 during the six months ended April 30, 2025 as compared to the six months ended April 30, 2024.

Other expense for the six months ended April 30, 2025 was $43,000, as compared to other expense of $47,000 for the six months ended April 30, 2024. The decrease in other expense of $4,000 during the six months ended April 30, 2025, as compared to the six months ended April 30, 2024, was principally the result of reduced IRS interest and penalties. Other expense also consisted of interest expense and amortization of discounts associated with the Company's convertible promissory notes outstanding which was unchanged for the six months ended April 30, 2025, as compared to the six months ended April 30, 2024.

***Liquidity and Capital Resources***

***Cash and Cash Equivalents***

The following table summarizes the sources and uses of cash for the periods stated. The Company held no cash equivalents for any of the periods presented:

---

| | | |
|:---|:---|:---|
|  | **For the<br>Six Months Ended<br>April 30,** | **For the<br>Six Months Ended<br>April 30,** |
|  | **2025** | **2024** |
| Cash, beginning of period | $657000 | $1756000 |
| Net cash used in operating activities | (78000) | (990000) |
| Net cash used in financing activities | (37000) | (20000) |
| Cash, end of period | $542000 | $746000 |

---

During the six months ended April 30, 2025, the Company had cash used in operating activities of $78,000, as compared to cash used in operating activities of $990,000 for the six months ended April 30, 2024, a decrease in cash used of $912,000. The decrease in cash used was primarily the result of a reduction in general and administrative expenses and other income (expense) after adjusting for non-cash related activities of $78,000 and increases in cash provided from changes in operating assets and liabilities of $882,000 for the six months ended April 30, 2025, as compared to the six months ended April 30, 2024, partially offset by decreases in gross profit of $50,000 for the six months ended April 30, 2025, as compared to the six months ended April 30, 2024.

The increase in cash provided from changes in operating assets and liabilities was due to increases in accounts payable and accrued expenses and decreases in accounts receivable and prepaid expenses, partially offset from decreases in deferred revenues during the six months ended April 30, 2025, as compared to the six months ended April 30, 2024. The reduction in general and administrative expenses and other income (expense) after adjusting for non-cash related activities was the result of reduced operating expenses associated with payroll, consulting costs and commission expenses during the six months ended April 30, 2025, as compared to the six months ended April 30, 2024.

During the six months ended April 30, 2025, the Company had cash used in financing activities of $37,000, as compared to cash used in financing activities of $20,000 for the six months ended April 30, 2024. The increase in cash used in financing activities of $17,000 was due to the increases in payments on finance leases.

***Capital Resources***

The Company has historically relied on the sale of debt or equity securities, the restructuring of debt obligations and/or the issuance and/or exchange of equity securities to meet the shortfall in cash to fund its operations.

***Going Concern Consideration***

The unaudited accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern. The Company has had limited revenues since its inception. The Company incurred net losses of $2,634,000 for the six months ended April 30, 2025 and used $78,000 of cash in operating activities during that period. In addition, the Company had a stockholders' deficit of $2,100,000 at April 30, 2025.

United States Food and Drug Administration ("FDA") regulations which were announced in November 2017 and which became effective in May 2021 require that the sale of products that fall under Section 351 of the Public Health Services Act pertaining to marketing traditional biologics and human cells, tissues and cellular and tissue based products ("HCT/Ps") can only be sold pursuant to an approved biologics license application ("BLA"). The Company has not obtained any opinion or ruling regarding the Company's operations and whether the processing, sales and distribution of the products it currently produces would be subject to the FDA's previously announced intended enforcement policies regarding HCT/P's.

As a result of the above, the Company's efforts to establish a stabilized source of sufficient revenues to cover operating costs has yet to be achieved and ultimately may prove to be unsuccessful unless (a) the Company's ability to process, sell and distribute the products currently being produced or developed in the future are not restricted; and/or (b) additional sources of working capital through operations or debt and/or equity financings are realized. These financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Management anticipates that the Company will remain dependent, for the near future, on additional investment capital to fund ongoing operating expenses and research and development costs related to development of new products and to perform required clinical studies in connection with the sale of its products. The Company does not have any assets to pledge for the purpose of borrowing additional capital. In addition, the Company relies on its ability to produce and sell products it manufactures that are subject to changing technology and regulations that it currently sells and distributes to its customers. The Company's current market capitalization, common stock liquidity and available authorized shares may hinder its ability to raise equity proceeds. The Company anticipates that future sources of funding, if any, will therefore be costly and dilutive, if available at all.

In view of the matters described in the preceding paragraphs, recoverability of the recorded asset amounts shown in the accompanying consolidated balance sheet assumes that (a) the Company is able to continue to produce products or obtain products under supply arrangements which are in compliance with current and future regulatory guidelines; (b) the Company will be able to establish a stabilized source of revenues, including efforts to expand sales internationally and the development of new product offerings and/or designations of products; (c) obligations to the Company's creditors are not accelerated; (d) the Company's operating expenses remain at current levels and/or the Company is successful in restructuring and/or deferring ongoing obligations; (e) the Company is able to continue its research and development activities, particularly in regards to remaining compliant with the FDA and ongoing safety and efficacy of its products; and/or (f) the Company obtains additional working capital to meet its contractual commitments and maintain the current level of Company operations through debt or equity sources.

There is no assurance that the products we currently produce will not be subject to the FDA's previously announced intended enforcement policies regarding HCT/P's and/or the Company will be able to complete its revenue growth strategy. There is no assurance that the Company's research and development activities will be successful or that the Company will be able to timely fund the required costs of those activities. Without sufficient cash reserves, the Company's ability to pursue growth objectives will be adversely impacted. Furthermore, despite significant effort since July 2015, the Company has thus far been unsuccessful in achieving a stabilized source of revenues.

If revenues do not increase and stabilize, if the Company's ability to process, sell and/or distribute the products currently being produced or developed in the future are restricted, and/or if additional funds cannot otherwise be raised, the Company might be required to seek other alternatives which could include the sale of assets, closure of operations and/or protection under the U.S. bankruptcy laws.

The independent auditor's report dated January 29, 2025 included in our Annual Report on Form 10-K for the year ended October 31, 2024 included an explanatory paragraph as to the Company's ability to continue as a going concern. As of April 30, 2025, based on the factors described above, the Company concluded that there was substantial doubt about its ability to continue to operate as a going concern for the 12 months following the issuance of these financial statements.

**Off-Balance Sheet Arrangements**

Our liquidity is not dependent on the use of off-balance sheet financing arrangements (as that term is defined in Item 303(a) (4) (ii) of Regulation S-K) and as of April 30, 2025 and through the date of this report, we had no such arrangements.

**Recently Issued Financial Accounting Standards**

See Note 2 to our unaudited condensed consolidated financial statements included in this report for a discussion of recent accounting pronouncements.

**Critical Accounting Policies**

Our unaudited consolidated financial statements reflect the selection and application of accounting policies which require us to make significant estimates and judgments. See Note 2 to our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended October 31, 2024, "Summary of Significant Accounting Policies".

**Item 3.** **Quantitative and Qualitative Disclosures About Market Risk.**

Not applicable.

**Item 4.** **Controls and Procedures.**

*Evaluation of Disclosure Controls and Procedures*

Disclosure controls are procedures that are designed with the objective of ensuring that information required to be disclosed in our reports under the Exchange Act, such as this Quarterly Report, is recorded, processed, summarized and reported in accordance with the rules of the Securities and Exchange Commission ("SEC"). Disclosure controls are also designed with the objective of ensuring that such information is accumulated appropriately and communicated to management, including the chief executive officer and chief financial officer, as appropriate, to allow for timely decisions regarding required disclosures.

Our Interim Chief Executive Officer and Chief Financial Officer (our principal executive, financial and accounting officer) evaluated the effectiveness of our "disclosure controls and procedures" (as defined in the Exchange Act Rules 13a-15(e) and 15d-15(e)) as of April 30, 2025, the end of the period covered by this report. Based on that evaluation, our Interim Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act were recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms and that our disclosure controls are not effectively designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to management, including our principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. See the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2024, for a description of the Company's material weaknesses in internal control over financial reporting.

*Changes in Internal Controls over Financial Reporting*

No change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) occurred during the fiscal quarter ended April 30, 2025, that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

**Part II – OTHER INFORMATION**

**Item 1.** **Legal Proceedings.**

In addition to matters which have been resolved as reported in previous periodic Exchange Act filings, from time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. Litigation is subject to inherent uncertainties, and an adverse result in any such matter may harm our business.

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| | |
|:---|:---|
| **Item 1A.** | **Risk Factors.** |

---

As a "**smaller reporting company**" we are not required to disclose information under this Item**.**

**Item 2.** **Unregistered Sales of Equity Securities and Use of Proceeds**

None.

**Item 3.** **Defaults upon Senior Securities**

None.

**Item 4.** **Mine Safety Disclosures**

Not applicable.

**Item 5.** **Other Information.**

None.

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| | |
|:---|:---|
| **Item 6**. | **Exhibits.** |

---

---

| | |
|:---|:---|
| **Exhibit No:** | **Description:** |
| 31.1\* | [Rule 13(a)-14(a)/15(d)-14(a) Certification of Chief Executive Officer and Chief Financial Officer (filed herewith)](zeoscientifix_ex31-1.htm) |
| 32.1\* | [Section 1350 Certification of Chief Executive Officer and Chief Financial Officer (filed herewith)](zeoscientifix_ex32-1.htm) |
| 101.INS \*\* | XBRL Instance Document |
| 101.SCH\*\* | XBRL Taxonomy Extension Schema Document |
| 101.CAL\*\* | XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.LAB\*\* | XBRL Taxonomy Extension Labels Linkbase Document |
| 101.DEF\*\* | XBRL Taxonomy Extension Definition Linkbase Document |
| 101.PRE\*\* | XBRL Taxonomy Extension Presentation Linkbase Document |

---

\* Filed herewith.

\*\* Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability under those sections.

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| **ZEO SCIENTIFIX, INC.** | **ZEO SCIENTIFIX, INC.** |
| By: | /s/ Ian T. Bothwell |
|  | Ian T. Bothwell |
|  | Interim Chief Executive Officer and Chief Financial Officer |
|  | (Principal Executive, Financial and Accounting Officer) |
|  | June 16, 2025 |

---

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION PURSUANT TO 18 U.S.C. SS 1350, AS ADOPTED PURSUANT TO**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Ian T. Bothwell, certify that:

1. I am the Interim Chief Executive Officer and Chief Financial Officer (principal executive, financial and
accounting officer of Zeo ScientifiX, Inc., a Nevada corporation (the "**Registrant**") and have reviewed this Quarterly
Report on Form 10-Q for the quarter ended April 30, 2025, of the Registrant (the "**Report** ");

2. Based on my knowledge, this Report does not contain any untrue statement of 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 Registrant as of, and for, the periods presented in this Report;

4. As the Registrant's Interim Chief Executive Officer and Chief Financial Officer (principal executive,
 financial and accounting officer), I am 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 Registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;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 Registrant, 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;

&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control
 over financial reports 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;

&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant'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

&nbsp;&nbsp;&nbsp;&nbsp;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.

5. As the Registrant's principal executive, financial and accounting officer, I have disclosed, based on
 the most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;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 Registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who
 have a significant role in the Registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: June 16, 2025 | /s/ Ian T. Bothwell |
|  | Ian T. Bothwell |
|  | Interim Chief Executive Officer and Chief Financial Officer |
|  | (Principal Executive, Financial and Accounting Officer) |

---

## Exhibit 32.1

**Exhibit 32.1**

**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 Zeo ScientifiX, Inc. on Form 10-Q for the quarter ended April 30, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "**Report**"), the undersigned Ian T. Bothwell, Interim Chief Executive Officer and Chief Financial Officer (principal executive, financial and accounting officer) of Zeo ScientifiX, Inc., a Nevada corporation (the "**Company**"), hereby certifies, pursuant to 18 U.S.C. Section 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 Zeo
ScientifiX, Inc.

---

| | |
|:---|:---|
| Date: June 16, 2025 | /s/ Ian T. Bothwell |
|  | Ian T. Bothwell |
|  | Interim Chief Executive Officer and Chief Financial Officer |
|  | (Principal Executive, Financial and Accounting Officer) |

---