# EDGAR Filing Document

**Accession Number:** 0001725911
**File Stem:** 0001641172-25-021670
**Filing Date:** 2025-7
**Character Count:** 70846
**Document Hash:** 784f22d7b7c69fd299ba225709019530
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001641172-25-021670.hdr.sgml**: 20250731

**ACCESSION NUMBER**: 0001641172-25-021670

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 52

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250731

**DATE AS OF CHANGE**: 20250731

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** NetBrands Corp.
- **CENTRAL INDEX KEY:** 0001725911
- **STANDARD INDUSTRIAL CLASSIFICATION:** BAKERY PRODUCTS [2050]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 823707673
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-55889
- **FILM NUMBER:** 251169493

**BUSINESS ADDRESS:**
- **STREET 1:** 4042 AUSTIN BOULEVARD
- **STREET 2:** SUITE B
- **CITY:** ISLAND PARK
- **STATE:** NY
- **ZIP:** 11558
- **BUSINESS PHONE:** 800-550-5996

**MAIL ADDRESS:**
- **STREET 1:** 4042 AUSTIN BOULEVARD
- **STREET 2:** SUITE B
- **CITY:** ISLAND PARK
- **STATE:** NY
- **ZIP:** 11558

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Global Diversified Marketing Group Inc.
- **DATE OF NAME CHANGE:** 20180613

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Dense Forest Acquisition Corp
- **DATE OF NAME CHANGE:** 20171220

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

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 10-Q**

(Mark One)

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

For the quarterly period ended: **<u>June 30, 2025</u>**

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT

For the transition period from **________** to **_________**

Commission File Number: <u>000-55889</u>

**<u>NETBRANDS CORP.</u>**

(Exact name of registrant as specified in its charter)

<u>Delaware</u> <u>82-3707673</u> <br> (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)

<u>4042 Austin Boulevard, Suite B Island Park, New York</u> <u>11558</u> <br> (Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: <u>800-550-5996</u>

Securities registered pursuant to Section 12(b) of the Act: None

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Not applicable | Not applicable | Not applicable |

---

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 (§232.405 of this chapter) 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, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "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 ☐

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 July 31, 2025 the registrant had 61,537,557 shares of its common stock issued and outstanding.

**NETBRANDS CORP.**

**QUARTERLY REPORT ON FORM 10-Q**

**June 30, 2025**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| | | Page |
| [PART I - FINANCIAL INFORMATION](#a_001) | [PART I - FINANCIAL INFORMATION](#a_001) | 3 |
| Item 1. | [Financial Statements.](#a_001) | 3 |
| Item 2. | [Management's Discussion and Analysis of Financial Condition and Results of Operations.](#ite_001) | 11 |
| Item 3. | [Quantitative and Qualitative Disclosures About Market Risk.](#a_004) | 14 |
| Item 4. | [Controls and Procedures.](#a_005) | 14 |
| [PART II - OTHER INFORMATION](#a_006) | [PART II - OTHER INFORMATION](#a_006) | 15 |
| Item 1. | [Legal Proceedings.](#a_007) | 15 |
| Item 1A. | [Risk Factors.](#a_008) | 15 |
| Item 2. | [Unregistered Sales of Equity Securities and Use of Proceeds.](#a_009) | 15 |
| Item 3. | [Defaults Upon Senior Securities.](#a_010) | 15 |
| Item 4. | [Mine Safety Disclosure.](#a_011) | 15 |
| Item 5. | [Other Information.](#a_012) | 15 |
| Item 6. | [Exhibits.](#a_013) | 15 |
| [SIGNATURES](#a_014) | [SIGNATURES](#a_014) | 16 |

---

**PART I – FINANCIAL INFORMATION**

**ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS.**

The following unaudited interim consolidated financial statements of NetBrands Corp. (referred to herein as the "Company," "we," "us" or "our") are included in this Quarterly Report on Form 10-Q (the "Quarterly Report").

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and the rules of the Securities and Exchange Commission (the "SEC"), and should be read in conjunction with the audited consolidated financial statements and notes thereto contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, which we filed with the SEC on April 24, 2025. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the periods presented have been reflected herein. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year.

**NETBRANDS CORP.**

**Consolidated Financial Statements for the Three and Six Months Ended June 30, 2025**

**Index to the Unaudited Consolidated Financial Statements**

---

| | |
|:---|:---|
| [Consolidated Balance Sheets at June 30, 2025 (Unaudited) and December 31, 2024](#f_001) | F-2 |
| [Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2025 and 2024 (Unaudited)](#f_002) | F-3 |
| [Consolidated Statement of Stockholders' Deficit for the Three and Six Months Ended June 30, 2025 and 2024 (Unaudited)](#f_003) | F-4 |
| [Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024 (Unaudited)](#f_004) | F-5 |
| [Notes to the Consolidated Financial Statements (Unaudited)](#f_005) | F-6 |

---

**Consolidated Balance Sheets**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
| **ASSETS** |  |  |
| Other assets-security deposit | $1600 | $1600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $1600 | $1600 |
| **LIABILITIES AND STOCKHOLDERS' DEFICIT** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expense | $1167496 | $1215986 |
| &nbsp;&nbsp;&nbsp;Convertible Notes | 258708 | 266118 |
| &nbsp;&nbsp;&nbsp;Loans payable | 394405 | 394405 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 1820609 | 1876508 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government loans payable | 500000 | 500000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 2320609 | 2376508 |
| Convertible Notes |  |  |
| Commitments and contingencies |  |  |
| Stockholders' (Deficit): |  |  |
| &nbsp;&nbsp;&nbsp; Preferred stock, Series A $0.0001 par value, 1,000,000 shares authorized, 1,000 issued and outstanding |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, $0.0001 par value, 100,000,000 shares authorized; 51,696,177 and 22,553,849 issued and outstanding as of June 30, 2025 and December 31, 2024, respectively | 5170 | 2255 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 29037555 | 28857907 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (31363630) | (31236968) |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | 1895 | 1895 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' (deficit) | (2319010) | (2374910) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and (deficit) | $1600 | $1600 |

---

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

**NetBrands Corp.**

**Consolidated Statements of Operations**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**<br>**June 30,**<br>**2025** | **Three Months Ended**<br>**June 30,**<br>**2024** | **Six Months Ended**<br>**June 30,**<br>**2025** | **Six Months Ended**<br>**June 30,**<br>**2024** |
| Sales, net | $- | $- | $- | $- |
| Cost of goods sold | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross margin |  |  |  |  |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Payroll and taxes |  | 56689 |  | 121034 |
| &nbsp;&nbsp;&nbsp;Legal and professional fees |  | 477076 |  | 586334 |
| &nbsp;&nbsp;&nbsp;Rent |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative and expenses | - | 14996 | 6191 | 32503 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | - | 548761 | 6191 | 739871 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from operations |  | (548761) | (6191) | (739871) |
| Other (expense) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on note conversion |  |  | (96854) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (23616) | (4584) | (23616) | (233100) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other (expense) | (23616) | (4584) | (120471) | (233100) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss before income taxes | (23616) | (553345) | (126662) | (972972) |
| Provision for income taxes (benefit) | - | - | - | - |
| Net loss | $(23616) | $(553345) | $(126662) | $(972972) |
| Basic and diluted earnings (loss) per common share | $(0.00) | $(0.03) | $(0.00) | $(0.05) |
| Weighted-average number of common shares outstanding: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic and diluted | 51696177 | 20071502 | 49109833 | 19159414 |

---

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

**NetBrands Corp.**

**Consolidated Statements of Changes in Stockholders' Equity**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | | | **Accumulated** | |
|  | | | | | **Additional** | | **Other** | **Total** |
|  | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | **Paid-in** | **Accumulated** | **Comprehensive** | **Stockholders'** |
|  | **Shares** | **Value** | **Shares** | **Value** | **Capital** | **Deficit** | **Income(Loss)** | **Equity** |
| Balance, December 31, 2023 | 1000 | $- | 16610756 | $1661 | $28080311 | $(29951662) | $1895 | $(1867795) |
| Stock based compensation for services |  |  | 750000 | 75 | 56175 |  |  | 56250 |
| Common stock issued for financing fees |  |  | 866302 | 87 | 83078 |  |  | 83165 |
| Issuance of warrants for financing costs |  |  |  |  | 77251 |  |  | 77251 |
| Net loss |  |  |  |  |  | (419627) |  | (419627) |
| Balance, March 31, 2024 | 1000 | $- | 18227058 | $1823 | $28296816 | $(30371289) | $1895 | $(2070756) |
| Stock based compensation for services |  |  | 1844444 | 184 | 368704 |  |  | 368889 |
| Net loss |  |  |  |  |  | (553345) |  | (553345) |
| Balance, June 30, 2024 | 1000 | $- | 20071502 | $2007 | $28665520 | $(30924633) | $1895 | $(2255212) |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  |  |  | **Accumulated** |  |
|  |  |  |  |  | **Additional** |  | **Other** | **Total** |
|  | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | **Paid-in** | **Accumulated** | **Comprehensive** | **Stockholders'** |
|  | **Shares** | **Value** | **Shares** | **Value** | **Capital** | **Deficit** | **Income** | **Deficit** |
| Balance, December 31, 2024 | 1000 | $- | 22553849 | $2255 | $28857907 | $(31236968) | $1895 | $(2374910) |
| Common stock issued for conversion |  |  | 24486568 | 2255 | 177979 |  |  | 180234 |
| Net loss |  |  |  |  |  | (103045) |  | (103045) |
| Balance, March 31, 2025 | 1000 | $- | 47040417 | $4510 | $29035886 | $(31340013) | $1895 | $(2297721) |
| Common stock issued for conversion |  |  | 4655760 | 660 | 1669 |  |  | 2328 |
| Net loss |  |  |  |  |  | (23616) |  | (23616) |
| Balance, June 30, 2025 | 1000 | $- | 51696177 | $5170 | $29037555 | $(31363630) | $1895 | $(2319010) |

---

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

**Netbrands Corp.**

**Consolidated Statements of Cash Flows**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended**<br>**June 30,**<br>**2025** | **Six Months Ended**<br>**June 30,**<br>**2024** |
| Cash flows from operating activities |  |  |
| &nbsp;&nbsp;&nbsp;Net (loss) | $(126662) | $(972972) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on note conversion | 96854 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock based compensation |  | 425139 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrants issued for financing costs |  | 77251 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock issued for financing fees |  | 83165 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable |  | 179 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory |  | 6114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 29807 | 193951 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) operating activities |  | (187172) |
| Cash flows from financing activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes payable related parties |  | 7278 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from convertible notes |  | 187777 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments on loans payable | - | (8075) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities |  | 186980 |
| Net (decrease) in cash and cash equivalents |  | (191) |
| Cash and cash equivalents at beginning of the year | - | 1013 |
| Cash and cash equivalents at end of the period | $- | $821 |
| Supplemental disclosure of cash flow information: |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | $- | $- |
| &nbsp;&nbsp;&nbsp;Cash paid for income taxes | $- | $- |

---

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

**NetBrands Corp.**

**Notes To Unaudited Financial Statements for the Periods**

**Ended June 30, 2025 and 2024**

**NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

Nature of Business

NetBrands Corp., formerly known as Global Diversified Marketing Group Inc. ("NetBrands" or the "Company"), was incorporated as Dense Forest Acquisition Corporation, in Delaware on December 1, 2017, and changed its name on June 13, 2018, as part of a change in control. As part of the change in control, its then officers and directors resigned and contributed back to the Company 19,500,000 shares of the 20,000,000 outstanding shares of its common stock, and appointed new officers and directors. On June 14, 2018, the new management of the Company issued 12,500,000 shares of its common stock to Paul Adler, the then president of the Company.

On November 26, 2018, the Company effected the acquisition of Global Diversified Holdings, Inc. ("GDHI"), a private New York company owned by the Company's president, with the issuance of 200 shares of the Company's common stock in exchange for all of the outstanding shares of GDHI. GDHI became a wholly-owned subsidiary of the Company, and its activity for the years 2022 and 2021 is reflected in these financial statements along with the expenses of the Company.

Prior to the acquisition of GDHI, the Company had no business and no operations. Pursuant to the acquisition, the Company acquired the operations and business plan of GDHI, which imports and sells snack food products. For accounting purposes, GDHI is considered to be the acquirer, and the equity is presented as if the business combination had occurred on January 1, 2017.

On August 31, 2022, the Company entered into an Asset Purchase Agreement with InPlay Capital Inc., a Delaware corporation ("InPlay"), pursuant to which, on the same date, the Company purchased from InPlay all of the assets used in the operation and conduct of its business relating to the online home fitness store known as "The Hula Fit", including the Shopify Store and the TikTok, Facebook and Google ad accounts, for a purchase price of $50,000. Paul Adler, the sole executive officer and a director of the Company, and the Company's majority stockholder, is also the sole officer, director, and 100% stockholder of InPlay.

On March 29, 2023, the Company filed an Amendment to its Certificate of Incorporation effecting the change of the Company's name to NetBrands Corp., a name that reflects the planned expansion of the Company's digital business. On July 31, 2023, the Company's common stock began trading on the OTC Pink marketplace under its new name, NetBrands Corp., and its new trading symbol "NBND."

Basis of Presentation

The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. Certain prior year amounts have been reclassified to conform to the presentation in the current year. The Company has adopted a December 31 year-end.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Global Diversified Holdings, Inc. All intercompany accounts and transactions have been eliminated in consolidation.

Fair Value of Financial Instruments

The Company's financial instruments consist of cash, accounts receivable from customers, accounts payable, and loans payable. The carrying amounts of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these consolidated financial statements.

<u>Management's Representation of Interim Consolidated Financial Statements</u>

The accompanying unaudited financial statements have been prepared by the Company without audit pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States ("GAAP") have been or omitted as allowed by such rules and regulations, and management believes that the disclosures are adequate to make the information presented not misleading. These financial statements include all of the adjustments, which in the opinion of management are necessary to a fair presentation of financial position and results of operations. All such adjustments are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year. These financial statements should be read in conjunction with the audited financial statements at and as of December 31, 2024 filed with the SEC on April 24, 2025.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to revenue recognition, inventories, valuation of financial instruments, income taxes, and contingencies. The Company bases its estimates on historical experience, known or expected trends and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these consolidated financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates.

Reclassifications

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

Stock-Based Compensation

The Company accounts for stock-based compensation using the fair value method following the guidance outlined in Section 718-10 of the FASB Accounting Standards Codification for disclosure about Stock-Based Compensation. This Section requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award- the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service. During the six months ended June 30, 2025 and June 30, 2024 stock-based compensation was $-0- and $425,139, respectively.

Cash and Cash Equivalents

The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. On June 30, 2025 and December 31, 2024 the Company had $-0- and $-0- of cash and cash equivalents, respectively.

Accounts Receivable

Accounts receivable are generated from sales of snack food products to retail outlets throughout the United States. The Company performs ongoing credit evaluations of its customers and adjusts credit limits based on customer payment and current creditworthiness, as determined by review of their current credit information. The Company continuously monitors credit limits for its customers and maintains a provision for estimated credit losses based on its historical experience and any specific customer issues that have been identified. An allowance for doubtful accounts are provided against accounts receivable for amounts management believes may be uncollectible. The Company historically has not had issues collecting on its accounts receivable from its customers. The Company factors certain of its receivables to improve its cash flow. Bad debt expense for the six months ended June 30, 2025, and June 30, 2024 was $-0- and $-0-, respectively.

Inventory

Inventory, which is comprised of snack food products and packaging supplies is charged to inventory when purchased, is stated at the lower of cost or net realizable value with cost determined under the first-in, first-out ("FIFO") method. The Company does not carry any raw materials.

The Company evaluates inventory levels quarterly value based upon assumptions about future demand and market conditions. Any inventory that has a cost basis in excess of its expected net realizable value, inventory that becomes obsolete, inventory in excess of expected sales requirements, inventory that fails to meet commercial sale specifications or is otherwise impaired are written down with a corresponding charge to the statement of operations in the period that the impairment is first identified. As of June 30, 2025 and December 31, 2024 the Company had $-0- and $-0- inventory respectively.

Property and Equipment

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful life of the assets. Maintenance, repairs, and renewals that do not materially add to the value of the equipment nor appreciably prolong its useful life are charged to expense as incurred.

Revenue Recognition

The Company recognizes revenue from product sales when control of the promised goods are transferred to our clients in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods and services. To achieve this core principle, the Company applies the following five steps: identify the contract with the client, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to performance obligations in the contract and recognize revenues when or as the Company satisfies a performance obligation. Typically, the Company receives a detailed purchase order from large retailers that specify the goods ordered, their price, payment terms and the required delivery date. Once the delivery of items on the purchase order is made to the client and title passes, the Company has met its performance obligation and recognizes revenue.

Impairment of Long-Lived Assets

The Company continually monitors events and changes in circumstances that could indicate the carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell.

*<u>Intangible Assets</u>*

Intangible assets have either an identifiable or indefinite useful life. Intangible assets with identifiable useful lives are amortized on a straight-line basis over their economic or legal life, whichever is shorter.

The Company performs an annual impairment assessment for intangible assets during the fourth quarter of each year and more frequently whenever events or changes in circumstances indicate that the fair value of the asset may be less than the carrying amount.

Determining the fair value of intangible assets is judgmental in nature and requires the use of significant estimates and assumptions.

Income Taxes

Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.

The Company's income tax returns are open for examination for up to the past three years under the statute of limitations. There are no tax returns currently under examination.

Leases

The majority of our lease obligations are real estate operating leases from which the Company conducts its business. For any lease with an initial term in excess of 12 months, the related lease assets and liabilities are recognized on the Consolidated Balance Sheets as either operating or finance leases at the inception of an agreement where it is determined that a lease exists. Leases with an initial term of 12 months or less are not recorded on our Consolidated Balance Sheets. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.

Leases with an initial term of 12 months or less, or that are on a month-to-month basis are not recorded on our Consolidated Balance Sheets. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.

Operating lease assets represent the right to use an underlying asset for the lease term, and operating lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at commencement date. The Company uses a collateralized incremental borrowing rate based on the information available at commencement date, including lease term, in determining the present value of future payments. Our lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Fixed payments may contain predetermined fixed rent escalations. The Company recognizes the related rent expense on a straight-line basis from the commencement date to the end of the lease term.

As of June 30, 2025 we had $-0- in right of use assets, $-0- in short term operating lease payables and $-0- in long-term lease liabilities.

Comprehensive Income

The Company has established standards for reporting and displaying comprehensive income, its components, and accumulated balances. If applicable, the Company would disclose this information on its Statement of Stockholders' Equity. Comprehensive income comprises equity except those resulting from investments by owners and distributions to owners. As of June 30, 2025, the Company had a balance of $1,895 in accumulated other comprehensive income on its balance sheet which arose from an unrealized gain due to foreign currency fluctuations in prior years.

Basic Income (Loss) Per Share

Basic income (loss) per share has been calculated based on the weighted average number of shares of common stock outstanding during the period. As of June 30, 2025, the Company had no dilutive instruments that could increase the number of shares if exercised or converted.

Recent Accounting Pronouncements

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company's results of operations, financial position, or cash flow.

**NOTE 2 – GOING CONCERN**

As of June 30, 2025, the Company had cash and cash equivalents of $-0-, negative working capital of $1,819,009 and had an accumulated deficit of $31,363,630. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The consolidated financials have been prepared assuming that the Company will continue as a going concern and, accordingly, do not include any adjustments that might result from the outcome of this uncertainty. The Company is seeking new sources of financing to fund its operations. There can be no assurances that the Company will be able to secure financing. If the Company is unable to secure financing it will have a material adverse impact and may not enable the Company to continue as a going concern. As a result the shareholders may lose some or all of their investment in the Company.

**NOTE 3 – CAPITAL STOCK**

The Company has authorized 100,000,000 shares of common stock, $0.0001 par value per share. The Company had 51,696,177 and 22,553,849 shares of common stock issued and outstanding as of June 30, 2025 and December 31, 2024, respectively.

***2025 Common Stock Issuances for Conversion of Note***

During the six months ended June 30, 2025, the Company issued

● 24,486,568 shares for conversion of a convertible note valued at $83,380 at prices of between $0.02525 and $0.00125 per share. As a result of the conversions the Company realized a loss of $96,854 on the extinguishment of debt.

● Trillium issuance

***2024 Common Stock Issuances for Services***

During the year ended December 31, 2024 the Company had the following stock issuances:

● 2,594,444 shares for services valued at $164,450 , or an average price of $0.164 per share. The share price was determined based on the trading price of the Company's common stock on the date of issuance.

● 866,302 shares were issued for financing fees at $0.096 per share. The share price was determined based on the trading price of the Company's common stock on the date of issuance.

● 2,482,347 shares were issued to convert related party debt to equity at price of $0.072 per share. The share price was determined based on the trading price of the Company's common stock on the date of issuance.

***Preferred Stock***

The Company has 20,000,000 shares of $.0001 par value preferred stock authorized. On February 24, 2020, the Company filed a Certificate of Designation for a class of preferred stock designated Class A Super Voting Preferred Stock ("A Stock"). There are 1,000,000 shares of A Stock designated. Each share of such stock shall vote with the common stock and have 100,000 votes. The A Stock has no conversion, dividend, or liquidation rights. Accordingly, the holders of A Stock will, by reason of their voting power, be able to control the affairs of the Company. The Company has issued 1,000 shares of A Stock to Paul Adler, the Company's Chief Executive Officer, and majority shareholder giving him effective voting control over the Company's affairs for the foreseeable future.

As a result of the issuance of the A Stock with super-voting rights giving him an aggregate of 100,000,000 votes, combined with the shares of common stock he holds, Mr. Adler has effective voting control of approximately 97% of the Company.

***Warrants***

On November 14, 2022 (the "Execution Date"), the "Company, entered into an engagement agreement ("Engagement Agreement") with Spencer Clarke, LLC ("Spencer Clarke"), pursuant to which the Company engaged Spencer Clarke to serve as its exclusive investment banking firm (the "Services").

In consideration for Spencer Clarke providing the Services, (a) upon execution of the Engagement Agreement, the Company issued Spencer Clarke warrants to purchase 310,715 shares of the Company's common stock, par value $0.0001 per share, and (b) upon the closing of a financing of over $1,000,000 in value, which has not occurred as of the date of this Quarterly Report, the Company will issue to Spencer Clarke additional warrants to purchase shares of the Company's common stock representing 3% of the Company's total issued and outstanding shares of common stock as of the Execution Date.

The 310,715 warrants outstanding as of June 30, 2025 are exercisable for a term of five years from the date of issuance and have an exercise price of $0.001 per share, subject to adjustment. As of June 30, 2025, these warrants had no intrinsic value.

**NOTE 4 – RELATED PARTY TRANSACTIONS**

On August 31, 2022, the Company entered into an Asset Purchase Agreement with InPlay Capital Inc., a Delaware corporation ("InPlay"), pursuant to which the Company purchased from InPlay all of the assets used in the operation its business relating to the online home fitness store known as "The Hula Fit", including the Shopify Store and the TikTok, Facebook and Google ad accounts, for a purchase price of $50,000. Paul Adler, the sole executive officer and a director of the Company, and the Company's majority stockholder, is also the sole officer, director, and 100% stockholder of InPlay. The assets were recorded as intangible assets on the Company's balance sheet then impaired for the full amount of $50,000.

On April 10, 2023, Paul Adler, the President and a director of the Company, made a loan to the Company in the amount of $124,000, at an interest rate of 14.9% per annum. The principal amount of the loan, and any accrued and unpaid interest thereon, were due and payable on July 9. 2023, in cash or shares of the Company's common stock, at Mr. Adler's sole discretion. The due date of this loan has been extended to July 9, 2024. If repaid in shares of common stock, the number of shares to be issued to be calculated using the closing sale price of the Company's common stock on the OTC Pink marketplace on the payment date.

On April 8, 2024, Mr. Adler had advanced an additional $54,729 to the Company, at an interest rate of 14.9% per annum. The principal amount of the loan, and any accrued and unpaid interest thereon, are due and payable on July 9. 2024, in cash or shares of the Company's common stock, at Mr. Adler's sole discretion. If repaid in shares of common stock, the number of shares to be issued to be calculated using the closing sale price of the Company's common stock on the OTC Pink marketplace on the payment date.

On August 29, 2024, the Company had outstanding loan balances and accrued interest totaling $178,729 due to Mr. Adler, its Chairman and CEO. Effective August 29, 2024, Mr. Adler agreed to convert all of his loan balance and accrued interest into shares of the Company's Common Stock, at a conversion price of $0.072 per share, which was equivalent to the closing price of the Company's common stock of $0.072 on August 29, 2024. This resulted in the issuance of 2,482,347 shares to InPlay Capital Inc., an entity controlled by Mr. Adler.

**NOTE 5 – COMMITMENTS AND CONTINGENCIES**

The Company has one lease. The Company leases approximately 1,000 square feet of office space at 4042 Austin Boulevard, Suite B, Island Park, New York on a month to month basis. On October 1, 2021, the Company entered into a 60-month lease for $20,976 per year for the first two years, with 3% annual escalation clauses for the last three years of the lease. The lease contains one five-year renewal option. Management believes that its present office facilities are adequate for its corporate needs.

**NOTE 6 – LOANS PAYABLE**

The Company's subsidiary had various loans outstanding on June 30, 2025 and December 31, 2024. All of these loans were short-term in nature, with varying rates of interest and fees, and no set minimum monthly payments. All of these notes were in default as of June 30, 2025.

---

| | | |
|:---|:---|:---|
|  | June 30, 2025 | December 31, 2024 |
| Fundbox (c) | $50464 | $50464 |
| Other | 44739 | 44739 |
| Can Capital (d) | 144684 | 144684 |
| Credit Line – Loan Builder(b) Current | 54524 | 54524 |
| Credit Line – Webster Bank(a) | 99994 | 99994 |
| Total loans payable | $394405 | $394405 |

---

**(a)** The
 maximum borrowing level under this unsecured facility is $100,000 at an interest rate of 2.5 % over prime. This facility has no fixed
 maturity date.

**(b)** The
 maximum borrowing level on this facility is $150,000 with a fixed interest rate of 10 %. This facility has no fixed maturity date.

**(c)** The
 interest rate on this facility is 40 % with a one-year maturity date of December 31, 2023 .

**(d)** The
 principal loan is for $150,000 with weekly loan payments due of $2,558 over a 78 -month period. The effective interest rate on this
 loan amounts to approximately 67 % These are two combined loans that were for $199,500 & 33,000 with current balance for both
 of $144,437 in default.

*<u>Government loans payable</u>*

As of June 30, 2025 and December 31, 2024, the Company had $500,000 and $500,000 respectively, in government EIDL loans outstanding related to Covid-19. These loans are repayable over a 30-year period with an interest rate of 3.75%.

Convertible notes

As of June 30, 2025 and December 31, 2024 the balance of convertible notes was $258,708 and $266,118 respectively.

Cove Note

On March 22, 2024, the Company entered into the Cove Purchase Agreement with Cove Funding, pursuant to which Cove Funding agreed to extend the Cove Loan to the Company in the amount of up to $300,000, in two tranches. On March 22, 2024, the Company issued the Cove Note to Cove Funding in the principal amount of $187,777, evidencing the First Tranche of the Cove Loan. The Company received net proceeds of $150,000 (after deducting a 5% commitment fee, a 5% diligence fee, and Cove Funding's fees and expenses related to the transaction, including attorney's fees). The difference between the amount of the First Tranche and $300,000 (less a 5% commitment fee, a 5% diligence fee, and Cove Funding's fees and expenses related to the transaction, including attorney's fees) may be funded in a second tranche (the "Second Tranche" and, together with the First Tranche, the "Principal Amount"), upon the Company's written request, and subject to certain conditions.

The Cove Note has a stated maturity date of July 22, 2024 (as such date may be extended by the parties, the "Maturity Date"), and an interest rate of 12% per annum, which begins to accrue on the First Tranche on the Closing Date and will begin to accrue on the Second Tranche if and when such amount is funded by Cove Funding. Any Principal Amount that is not paid when due will bear interest at a rate of the lesser of (a) 24% per annum, or (b) the maximum amount permitted by law. The Cove Convertible Note may not be prepaid in whole or in part, except as otherwise set forth in the Cove Note. Pursuant to the terms of Cove Note, if the Cove Loan is not repaid on or before the Maturity Date, the Company is required to issue Cove Funding shares of its Common Stock, on a monthly basis (subject to a 4.99% beneficial ownership limitation), with a value of 16.67% of the principal amount of the Cove Loan outstanding as of each issuance date, plus a commitment fee equal to 5% of such outstanding principal amount, until the Cove Loan is repaid in full (collectively, the "Penalty Shares"). In addition, commencing on the Maturity Date, Cove Funding may (subject to a 4.99% beneficial ownership limitation) convert amounts due under the Cove Note into shares of the Company's Common Stock (collectively, the "Conversion Shares") at a conversion price equal to the lesser of (a) $0.07, or (b) the five-trading day closing price average immediately prior to the conversion date. The number of Conversion Shares issuable upon conversion of the Cove Note will be subject to adjustment from time-to-time in the event of any combination, extraordinary distribution, dilutive issuance, or similar event. Upon the occurrence of an event of default under the Cove Note, 125% of the amounts due under the Cove Note will become immediately due and payable. In addition, as long as the Company has any obligations outstanding under the Cove Note, the Company may not (among other things), without Cove Funding's written consent, incur any senior or pari passu indebtedness, sell a significant amount of the Company's assets, or issue equity securities in an amount greater than 10% of the Company's outstanding Common Stock, subject to certain exceptions.

As of June 30, 2025 and December 31, 2024 the balance of this convertible note, which was in default, amounted to $234,425.33 which includes accrued interest.

Trillium Note

On April 8, 2025 the Company entered into a Securities Purchase Agreement ("SPA") with Trillium Partners, LP ("Trillium"). Under the terms of the SPA Trillium provided funding to the Company and entered into a $30,000 secured convertible note. As of June 30, 2025, the balance on the Note due to Trillium was $24,283.

**NOTE 7 – SUBSEQUENT EVENTS**

On July 25, 2025, the Company entered into a Securities Purchase Agreement (the "SPA"), dated July 11, 2025, with Trillium. Pursuant to the SPA, the Company agreed to issue a $110,000 original issue discount note to Trillium for $100,000 (the "Note") and issued Trillium a common stock Purchase Warrant (the "Warrant"). The Note is due June 20, 2026, bears interest at 12%, is prepayable at any time with a 40% prepayment penalty and is convertible into the Company's common stock at $0.0005 per share. The Warrant is for the purchase of 55,000,000 shares, has a seven-year duration and an exercise price of $0.0005 per shares. The Note requires an initial reservation of 125,000,000 shares for its conversion.

On July 15, 2025, the Company has entered a new line of business by entering into the cryptocurrency mining space. The Company has chosen to mine Dogecoin via Bitmain Antminers L9 (16Gh) and mine Bitcoin ("BTC") directly via Bitmain Antminers S21+ 235Th/s. To date the Company has purchased 10 units, S21+ ASICs and should be up and running as of July 29<sup>th</sup> contributing of 2.5 Petahash of power.

Additionally, the Company signed a hosting agreement with Simple Mining LLC on July 22nd to host the Company's ASIC miners out of their sites in Iowa. As part of the agreement the Company will have the ability to scale up to 25-megawatt expansion with the opportunity to assist in the buildout of a mining data center with sub-five cents per KhW cost of energy. The Company expects to begin generating revenue during the three month ended September 30, 2025

On July 16, 2025 the Company formed a wholly owned Wyoming subsidiary called DigiHash LLC.

**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.**

*The information set forth in this Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including, among others (I) increase in our revenue and profitability, (ii) prospective business opportunities and (iii) our strategy for financing our business. Forward-looking statements are statements other than historical information or statements of current condition. Some forward-looking statements may be identified by use of terms such as "believes", "anticipates", "intends" or "expects". These forward-looking statements relate to our plans, liquidity, ability to complete financing, to enter into future agreements with companies, and plans to successfully expand our business operations and the sale of our products. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs.*

*Although we believe that our expectations with respect to the forward-looking statements are based upon reasonable assumptions within the bounds of our knowledge of our business and operations, in light of the risks and uncertainties inherent in all future projections, the inclusion of forward-looking statements in this Quarterly Report should not be regarded as a representation by us or any other person that our objectives or plans will be achieved. All forward-looking statements speak only as of the date of this Quarterly Report. Except to the extent required by law, we undertake no obligation to update or revise any forward-looking statements, or other information contained herein, whether as a result of new information, future events, a change in events, conditions, circumstances or assumptions underlying such statements, or otherwise. We caution you therefore that you should not rely on any of these forward-looking statements as statements of historical fact or as guarantees or assurances of future performance.*

**Basis of Presentation**

The following discussion highlights our results of operations and the principal factors that have affected our financial condition as well as our liquidity and capital resources for the periods described and provides information that management believes is relevant for an assessment and understanding of the statements of financial condition and results of operations presented herein. The following discussion and analysis are based on our unaudited financial statements contained in this Quarterly Report, which we have prepared in accordance with United States generally accepted accounting principles. You should read the discussion and analysis together with such financial statements and the related notes thereto.

The audited financial statements for our fiscal year ended December 31, 2024, contained in our Annual Report, include a summary of our significant accounting policies and should be read in conjunction with the discussion below. In the opinion of management, all material adjustments necessary to present fairly the results of operations for such periods have been included in these audited financial statements. All such adjustments are of a normal recurring nature.

References in this section to "NetBrands," "we," "us," "our," "the Company" and "our Company" refer to NetBrands Corp. and its consolidated subsidiary, Global Diversified Holdings, Inc.

**Overview**

We are an early stage diversified holdings company which sells multiple products under common management with one of them a global multi-line consumer packaged goods ("CPG") company with branded product lines in the food and snack industry. This division operates as marketer and distributor in the United States, Canada, and Europe. Another division is focused and involved in building and acquiring ecommerce assets as well as private businesses in various verticals with the goal of scaling them up and increasing revenue.

The Company was incorporated on December 1, 2017, as a Delaware corporation under the name "Dense Forest Acquisition Corporation." On June 13, 2018, in anticipation of its acquisition of Global Diversified Holdings, Inc. ("GDHI"), a private New York snack and gourmet food company, the Company changed its to "Global Diversified Marketing Group Inc." Prior to consummation of this acquisition, the Company had no business and no operations. On November 26, 2018, the Company acquired the operations and business plan of GDHI, to develop and market healthy snack foods, and it became our wholly owned operating subsidiary.

On March 29, 2023, the Company filed an Amendment to its Certificate of Incorporation effecting the change of the Company's name to NetBrands Corp., a name that reflected the planned expansion of the Company's digital business.

We operate through diversified subsidiaries with merger and acquisition interest in acquiring ecommerce assets as well as private businesses in various verticals which may include health, wellness, beauty sectors as well as digital app and asset space which could include web 3.0 applications. As a result of numerous events described throughout this Report, we have not generated any revenue since December 31, 2023. We are currently undergoing internal transformation and we seek to enhance shareholder value by acquiring income producing businesses and assets as our operating subsidiaries.

Going forward, we intend to seek, investigate and, if such investigation warrants, engage in a business combination with a private entity whose business presents an opportunity for our shareholders. We will not restrict our potential candidate target companies to any specific business, industry or geographical location and, thus, may acquire any type of business. Further, we may acquire or combine with a venture that is in its preliminary or early stages of development, one that is already in operation, or one that is in a more mature stage of its corporate existence. Accordingly, business opportunities may be available in many different industries and at various stages of development, all of which will make the task of comparative investigation and analysis of such business opportunities difficult and complex. The analysis of new business opportunities will be undertaken by or under the supervision of our executive officers and directors, none of whom is a business analyst. Therefore, it is anticipated that outside consultants or advisors may be utilized to assist us in the search for and analysis of qualified target companies.

**Results of Operations**

The information set forth below should be read in conjunction with the financial statements and accompanying notes elsewhere in this Quarterly Report.

***Comparison of Results of Operations for the Three Months Ended June 30, 2025 and 2024***

**Revenues and Cost of Sales**

Sales for the three months ended June 30, 2025, were $-0- compared to sales of $-0- for the three months ended June 30, 2024 . We have not generated any sales since the year ended December 31, 2023.

During 2024 we incurred a significant loss of revenue due to the supply, shipping and logistic issues, transitioning from a public warehouse to our own warehousing facility, and the significant loss of revenue on a product with eight SKUs that was produced in Russia that is no longer available to us. Without having an adequate amount of inventory on hand to fulfill existing and future orders, and our lack of sufficient liquidity, our ability to conduct future business with our customers is materially impaired. We are currently seeking new lines of business, new sources of liquidity and an acquisition target. If we are unsuccessful in our efforts to raise capital it will have a material adverse impact on our Company on our ability to remain a going concern.

**Operating expenses**

Operating expenses for the three months ended June 30, 2025 were $-0- compared to $548,761 during the same three months ended June 30, 2024. The material decrease in expenses is attributable to the lack of revenue in the 2025 period.

**Other income and (expense)**

Other income (expense) is comprised solely of interest expense and a loss on the extinguishment of debt related to our fundings. Other expense was $23,616 for the three months ended June 30, 2025, compared to $4,584 in other expense during the three months ended June 30, 2024.

**Net loss**

As a result of the foregoing, we recorded a net loss of $23,616 or $(0.00) per share for the three months ended June 30, 2025, compared to a loss of $553,345 or $(0.03) per share for the three months ended June 20, 2024.

 ****

***Comparison of Results of Operations for the Six Months Ended June 30, 2025 and 2024***

**Revenues and Cost of Sales**

Sales for the six months ended June 30, 2025, were $-0- compared to sales of $-0- for the six months ended June 30, 2024 . We have not generated any sales since the year ended December 31, 2023.

During 2024 we incurred a significant loss of revenue due to the supply, shipping and logistic issues, transitioning from a public warehouse to our own warehousing facility, and the significant loss of revenue on a product with eight SKUs that was produced in Russia that is no longer available to us. Without having an adequate amount of inventory on hand to fulfill existing and future orders, and our lack of sufficient liquidity, our ability to conduct future business with our customers is materially impaired. We are currently seeking new lines of business, new sources of liquidity and an acquisition target. If we are unsuccessful in our efforts to raise capital it will have a material adverse impact on our Company on our ability to remain a going concern.

**Operating expenses**

Operating expenses for the six months ended June 30, 2025 were $6,191 compared to $739,871 during the same six months ended June 30, 2024. The material decrease in expenses is attributable to limited expenses is due to the lack of revenue in the 2025 period.

**Other income and (expense)**

Other income (expense) is comprised solely of interest expense and a loss on the extinguishment of debt related to our fundings. Other expense was $120,471 for the six months ended June 30, 2025, compared to $233,100 in other expense during the six months ended June 30, 2024.

**Net loss**

As a result of the foregoing, we recorded a net loss of $126,662 or $(0.00) per share for the six months ended June 30, 2025, compared to a loss of $972,972 or $(0.03) per share for the six months ended June 20, 2024.

**Liquidity and Capital Resources**

As of June 30, 2025, we had $-0- in cash, compared to $-0- in cash as of December 31, 2024.

Net cash used in operating activities decreased to $-0- in the six months ended June 30, 2025, compared to $187,172 in the six months ended June 30, 2024. The decrease in cash used in operating is primarily due to changes in balance sheet accounts and reduced activities at the Company.

Net cash provided by financing activities was $-0- during the six months ended June 30, 2025, compared to $186,980 of net cash provided by financing activities in the six months ended June, 2024. The decrease in net cash provided in the six-month period ended June 30, 2025, as compared to the same period in 2024, is primarily due to lower proceeds from notes and loans payable.

The Company has historically financed its operations through the cash flow generated from operations, capital investment, notes payable and factoring.

In the event continuing lack of sales, our ability to obtain additional financing could be negatively impacted which could have a material adverse impact on our liquidity or our ability to remain as a going concern.

**Going Concern**

The accompanying consolidated financial statements have been prepared assuming we will continue as a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the date of these financial statements. On a consolidated basis, we have incurred significant operating losses since inception. The Company's independent auditor has indicated substantial doubt about the Company continuing as a going concern based on the Company's accumulated deficit and accrued liabilities. Our ability to continue our operations as a going concern, realize the carrying value of our assets, and discharge our liabilities in the normal course of business is dependent upon our ability to raise capital sufficient to fund our commitments and ongoing losses, and ultimately generate profitable operations. If we cannot obtain needed funds, we may be forced to reduce or cease our activities with a consequent loss to investors. In addition, should we incur significant presently unforeseen expenses or delays, we may not be able to accomplish our goals. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern.

Trillium funding commitment

**Off-Balance Sheet Arrangements**

We have no off-balance sheet arrangements.

**Critical Accounting Estimates**

Our financial statements and accompanying notes have been prepared in accordance with GAAP. The preparation of these financial statements requires management to make estimates, judgments, and assumptions that affect reported amounts of assets, liabilities, revenues and expenses. We continually evaluate the accounting policies and estimates used to prepare our financial statements. The estimates are based on historical experience and assumptions believed to be reasonable under current facts and circumstances. Actual amounts and results could differ from these estimates made by management. Certain accounting policies that require significant management estimates and are deemed critical to our results of our operations or financial position. Our critical accounting estimates are more fully discussed in Note 2 to our unaudited financial statements contained herein.

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

Not applicable because we are an emerging growth company.

**Item 4. Controls and Procedures.**

**Evaluation of Disclosure Controls and Procedures**

Under the supervision and with the participation of our management, including our President (principal executive officer) and Chief Financial Officer (principal financial and accounting officer), who is directly involved in the day-to-day operations of the Company, as of June 30, 2025, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended. Based on this evaluation, our principal executive officer and principal financial and accounting officer concluded that our disclosure controls and procedures were effective as of June 30, 2025 to ensure that information required to be disclosed by us in reports filed or submitted under the Securities Exchange Act were recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Act Commission's rules and forms and that our disclosure controls are effectively designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities 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.

Our management, including our President and Chief Financial Officer, does not expect that our disclosure controls and procedures will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. The design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdown can occur because of simple error or mistake. In particular, many of our current processes rely upon manual reviews and processes to ensure that neither human error nor system weakness has resulted in erroneous reporting of financial data.

As of June 30, 2025, our disclosure controls and procedures were determined to be effective.

**Changes in Internal Control over Financial Reporting**

During the period covered by this Quarterly Report, there were no changes in our internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**PART II – OTHER INFORMATION**

**Item 1. Legal Proceedings.**

None

**Item 1A. Risk Factors.**

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information under this item.

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

Except as set forth below, there were no sales of equity securities sold during the period covered by this Report that were not registered under the Securities Act and were not previously reported in a Current Report on Form 8-K filed by the Company.

During the six months ended June 30, 2025, the Company issued 24,486,568 shares for conversion of note valued at $83,380 at prices between $0.02525 and $0.00125 per share. The share price was determined based on the trading price of the Company's common stock on the date of issuance.

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

All Company debt is in default.

**Item 4. Mine Safety Disclosures.**

Not applicable.

**Item 5. Other Information.**

None.

**Item 6. Exhibits.**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 10.1\* | [Simple Mining Master Host Agreement dated July 16, 2025](ex10-1.htm) |
| 31.1/31.2\* | [Certification of Principal Executive Officer and Principal Financial and Accounting Officer pursuant to Exchange Act Rule 13a-14(a)/15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ex31-1.htm) |
| 32.1/32.2\* | [Certification Of Principal Executive Officer and Principal Financial and Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ex32-1.htm) |
| 101.INS\* | Inline XBRL Instance Document |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL\* | Inline XBRL Taxonomy Extension Calculation Link base Document |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition Link base Document |
| 101.LAB\* | Inline XBRL Taxonomy Extension Label Link base Document |
| 101.PRE\* | Inline XBRL Taxonomy Extension Presentation Link base Document |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

\*Filed herewith

**SIGNATURES**

Pursuant to the requirements 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.

---

| | | |
|:---|:---|:---|
|  | NETBRANDS CORP | NETBRANDS CORP |
| Date: July 31, 2025 | By: | */s/ Paul Adler* |
|  | Name: | Paul Adler |
|  | Title: | Chief Financial Officer, President, Secretary and Treasurer |
|  |  | (Principal Executive Officer and Principal Financial and Accounting Officer) |

---

## Exhibit 10.1

**Exhibit 10.1**

![](ex10-1_001.jpg)

![](ex10-1_002.jpg)

![](ex10-1_003.jpg)

![](ex10-1_004.jpg)

![](ex10-1_005.jpg)

![](ex10-1_006.jpg)

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## Exhibit 31.1

**Exhibit 31.1/31.2**

**CERTIFICATION**

**OF CHIEF EXECUTIVE OFFICER**

**PURSUANT TO SECTION 302**

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

I, Paul Adler, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q, for the quarter ended June 30, 2025, of NetBrands Corp.

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

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

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

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

&nbsp;&nbsp;&nbsp;&nbsp;&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;&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; and

5. The registrants' other certifying officer(s) and I have disclosed, based on our 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;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal controls 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;&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: July 31, 2025

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| |
|:---|
| */s/ Paul Adler* |
| Paul Adler |
| President, Chief Financial Officer, |
| Treasurer, Secretary and Director |
| (Principal Executive Officer and |
| Principal Financial and Accounting Officer) |

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## Exhibit 32.1

**Exhibit 32.1/32.2**

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906**

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

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), the undersigned officer of NetBrands Corp. (the "Company"), does hereby certify, in the capacities and on the date indicated below, to the best of such officer's knowledge, that:

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 (the "Form 10-Q") of the Company fully complies with
 the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and

2. The
 information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations
 of the Company as of, and for, the periods presented in the Form 10-Q.

Date: July 31, 2025

---

| |
|:---|
| */s/ Paul Adler* |
| Paul Adler |
| President, Chief Financial Officer, |
| Treasurer, Secretary and Director |
| (Principal Executive Officer and |
| Principal Financial and Accounting Officer) |

---