Overview of Financial Performance

The financial report provides an overview of the company’s financial performance for the three months ended March 31, 2025 and 2024. The key points are:

• The company expects to require additional capital to meet its long-term operating requirements and plans to raise funds through the sale of stock or debt securities.
• General and administrative expenses increased from $15,472 in Q1 2024 to $60,976 in Q1 2025, primarily due to expenses related to SEC filings.
• Professional fees decreased from $124,703 in Q1 2024 to $56,904 in Q1 2025, mainly due to expenses incurred in Q1 2024 for the transfer of Sovryn to investors.
• Amortization and interest expense decreased from $130,226 in Q1 2024 to $0 in Q1 2025, as most of the company’s debt matured in 2023 and the remaining discounts were fully amortized.
• Net loss decreased from $830,912 in Q1 2024 to $709,477 in Q1 2025, primarily due to the decreases in amortized interest expense and professional fees, partially offset by the increase in general and administrative expenses.

Liquidity and Capital Resources

• As of March 31, 2025, the company had $0 in cash and a working capital deficit of $21,095,772, compared to a working capital deficit of $20,386,294 as of December 31, 2023.
• The company used $90,693 in cash from continuing operating activities in Q1 2025, compared to $140,496 in Q1 2024.
• The company’s principal source of liquidity was cash obtained from funds provided by investors, and its principal use of cash was to fund operations.
• The company will require additional capital to meet its long-term and short-term operating requirements and plans to raise funds through the sale of stock or debt securities.

Strengths and Weaknesses

Strengths:

• The company has been able to reduce its amortization and interest expense significantly, which has helped to decrease its net loss.
• The company has been able to secure funding from investors to support its operations.

Weaknesses:

• The company has a significant working capital deficit and will require additional capital to meet its long-term and short-term operating requirements.
• The company’s general and administrative expenses have increased, which has partially offset the improvements in other areas.

Outlook for the Future

The company’s future outlook is uncertain, as it will need to raise additional capital to meet its long-term and short-term operating requirements. The company plans to raise funds through the sale of stock or debt securities and further implement its business plan. However, the company’s ability to continue as a going concern is in doubt, and the financial statements do not include any adjustments that might result from the outcome of this uncertainty.