AIBOTICS, INC.

Previous wording

We did not have any revenue or cost of revenue from operations for the three months ended September 30, 2024 and 2023.

Current wording

We did have revenue and cost of revenue from operations for the three months ended March 31, 2025, of $2,183, as compared to $0 revenue and cost of revenue from operations for the three months ended March 31, 2024.

Previous wording

Operating expenses for the three months ended September 30, 2024 and 2023, consisted solely of general and administrative expenses. General and administrative expenses consisted primarily of consulting fees, stock-based compensation, board compensation, and legal and professional services. For the three months ended September 30, 2024 compared to the three months ended September 30, 2023 our general and administrative expense increased by $219,836, or 133%, from $165,421 to $385,257. The increase in general and administrative expenses was mainly the result of increased amortization expense from the intangible assets acquired by the Company in the fourth quarter of 2023 ($167,883), increased product development costs ($70,700). The increase was offset by decreased legal and professional expenses ($23,472).

Current wording

Operating expenses for the three months ended March 31, 2025 and 2024, consisted solely of general and administrative expenses. General and administrative expenses consisted primarily of consulting fees, stock-based compensation, board compensation, and legal and professional services. For the three months ended March 31, 2025 compared to the three months ended March 31, 2024 our general and administrative expense increased by $170,775, or 47%, from $360,872 to $531,647. The increase in general and administrative expenses was the result of increased legal & professional services of $13,371, increase in board compensation of $15,000, increase in product development expense of $119,967, increase in other business expenses of $4,333, increase in advertising & marketing of $7,081, and increase in consulting fees of $18,125.

Previous wording

For the three months ended September 30, 2024 compared to the three months ended September 30, 2023 our interest expense decreased by $68,392, or 48%, from $143,279 to $74,887. The decrease primarily resulted from $113,664 less in debt discount amortization from the Company’s convertible notes partially offset by $44,495 of additional interest expense accrued during the third quarter of 2024 due to the default interest on the Company’s convertible note payables in default.

Current wording

For the three months ended March 31, 2025 compared to the three months ended March 31, 2024 our interest expense decreased by $3,137, or 5%, from $65,070 to $61,933. The decrease primarily resulted from no interest expense related to debt discount amortization from the Company’s convertible notes during the period ended March 31, 2025 as compared to approximately $9,000 in debt amortization costs recognized in the corresponding period ended March 31, 2024 partially offset by full three month period interest expense recognized for Note payable - related party during the period ended March 31, 2025.

Previous wording

For the three months ended September 30, 2024 and 2023 we had a net loss of $460,144 and $308,700, respectively.

Current wording

For the three months ended March 31, 2025 and 2024 we had a net loss of $591,397 and $425,942, respectively.

Previous wording

Liquidity is the ability of an enterprise to generate adequate amounts of cash to meet its needs for cash requirements. As of September 30, 2024, we had $202,358 in cash and cash equivalents compared to $279,134 at December 31, 2023, a decrease of $76,776 resulting primarily from cash used in our operations. As of September 30, 2024, we had undiscounted obligations in the amount of approximately $1.3 million relating to the payment of indebtedness due within one year.

Current wording

Liquidity is the ability of an enterprise to generate adequate amounts of cash to meet its needs for cash requirements. As of March 31, 2025, we had $156,737 in cash and cash equivalents compared to $185,097 at December 31, 2024, a decrease of $28,360 resulting primarily from cash used in our operations. As of March 31, 2025, we had undiscounted obligations in the amount of approximately $1.1 million relating to the payment of indebtedness due within one year.

Previous wording

As of September 30, 2024, we had a working capital deficiency of $4,798,602 down from a working capital deficiency of $3,968,589 as of December 31, 2023. At September 30, 2024 our current assets were $203,058 and consisted almost entirely of cash. At September 30, 2024 our current liabilities were $5,001,660 and consisted predominantly of related party accrued expenses, convertible notes payable, and shares to be issued. We had an accumulated deficit of $10,317,742 as of September 30, 2024, an increase from an accumulated deficit of $8,960,981 as of December 31, 2023.

Current wording

As of March 31, 2025, we had a working capital deficiency of $4,944,635 down from a working capital deficiency of $4,666,666 as of December 31, 2024. At March 31, 2025 our current assets were $156,737 and consisted almost entirely of cash. At March 31, 2025 our current liabilities were $5,101,372 and consisted predominantly of related party accrued expenses, convertible notes payable, and shares to be issued. We had an accumulated deficit of $11,400,653 as of March 31, 2025, an increase from an accumulated deficit of $10,809,256 as of December 31, 2024.

Previous wording

Our monthly operating costs averaged approximately $27,000 per month for the nine months ended September 30, 2024, excluding capital expenditures. We did not have capital expenditures during the nine months ended September 30, 2024. We plan to fund our operations with our cash on hand and additional financing.

Current wording

Our monthly operating costs averaged approximately $10,000 per month for the three months ended March 31, 2025, excluding capital expenditures. We did not have capital expenditures during the three months ended March 31, 2025. We plan to fund our operations with our cash on hand and additional financing.

Previous wording

Operating activities used net cash of $241,776 for the nine months ended September 30, 2024, as compared to using net cash of $68,914 for the nine months ended September 30, 2023. For the nine months ended September 30, 2024, cash used in operating activities was primarily driven by our net loss of $1,356,761; offset primarily by amortization expense, the increase in related party accrued expenses, the increase in accrued interest, and the increase in accounts payable and accrued expenses. For the nine months ended September 30, 2023, cash used in operating activities was primarily driven by our net loss of $890,386; offset primarily by the amortization of debt discounts, and the increase in related party and non-related party accrued expenses.

Current wording

Operating activities used net cash of $28,360 for the three months ended March 31, 2025, as compared to using net cash of $73,709 for the three months ended March 31, 2024. For the three months ended March 31, 2025, cash used in operating activities was primarily driven by our net loss of $591,397; offset primarily by amortization expense, the increase in related party accrued expenses, the increase in accrued interest, and the increase in accounts payable and accrued expenses. For the three months ended March 31, 2024, cash used in operating activities was primarily driven by our net loss of $425,942; offset primarily by the amortization of debt discounts, and the increase in related party and non-related party accrued expenses.

Previous wording

Investing activities used net cash of $0 for the nine months ended September 30, 2024, and 2023. Financing activities produced cash flows of $165,000 and $0 for the nine months ended September 30, 2024, and 2023, respectively. We did not pay any cash for interest or for income taxes during the nine months ended September 30, 2024 and 2023.

Current wording

Investing activities used net cash of $0 for the three months ended March 31, 2025, and 2024. Financing activities produced cash flows of $0 and $165,000 for the three months ended March 31, 2025, and 2024, respectively. We did not pay any cash for interest or for income taxes during the three months ended March 31, 2025 and 2024.

Previous wording

For the nine months ended September 30, 2024, the Company incurred a net loss of $1,356,761, had negative cash flows from operations of $241,776 and may incur additional future losses. At September 30, 2024, the Company had total current assets of $203,058 and total current liabilities of $5,001,660, resulting in a working capital deficit of $4,798,602. These conditions raise substantial doubt about the Company’s ability to continue as a going concern for a period of time within one year after that date that the consolidated financial statements are issued.

Current wording

For the three months ended March 31, 2025, the Company incurred a net loss of $591,397, had negative cash flows from operations of $28,360 and may incur additional future losses. At March 31, 2025, the Company had total current assets of $156,737 and total current liabilities of $5,101,372, resulting in a working capital deficit of $4,944,635. These conditions raise substantial doubt about the Company’s ability to continue as a going concern for a period of time within one year after that date that the consolidated financial statements are issued.