Axil Brands, Inc.
For the period ended Feb 28, 2025. Filed Apr 8, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Feb 28, 2025 · Filed Apr 8, 2025
AXIL$5.16-0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-11-30; filed 2025-01-08.
0001520138-25-000029
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-02-28; filed 2025-04-08.
0001520138-25-000113
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 46 previous paragraphs and 51 current paragraphs.
21 unchanged; 17 reworded; 13 added; 8 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 2 previous and 2 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
In addition, the Company is exploring options for its hair care and skin care business, which could result in the divestiture of such business. Any such divestiture may not occur in a timely manner, or at all, and the Company may not be able to realize any benefits from any strategic actions it may engage in with respect to its hair care and skin care business.
Current report
Business Update
Current report
In light of recent changes to U.S. trade policy, including the imposition of elevated tariffs on certain imported goods, AXIL has accelerated its previously initiated supply chain transition strategy. While we have historically relied on international suppliers for the majority of our manufacturing operations, we began proactively evaluating alternative strategies in anticipation of these risks.
Current report
To strengthen our long-term operational flexibility and reduce exposure to geopolitical volatility, we have initiated the relocation of senior manufacturing leadership to the United States. This relocation is part of a broader initiative to establish domestic manufacturing capabilities, including the setup of new production facilities. These efforts are expected to improve both cost stability and responsiveness to customer demand over time.
Current report
Although we anticipate some increase in product costs in the near term as a result of these tariffs, we believe our current inventory levels and ongoing mitigation strategies position us to navigate this period with minimal disruption. We are continuing to evaluate a range of strategic options to manage these cost pressures, including supply chain optimization, pricing strategies, and sourcing adjustments. We believe we will be able to adapt to the evolving trade environment and believe the actions we are taking now will enhance our resilience and competitiveness in the medium and long term.
Current report
Net sales for the three months ended February 28, 2025 and February 29, 2024 were $6,922,367 and $6,469,343, respectively. Net sales for the three months ended February 28, 2025 increased by $453,024 or 7.0%, as compared to the three months ended February 29, 2024. The increase in sales was primarily attributable to an increase in direct-to-consumer sales that was significantly affected by the shift of post-Thanksgiving holidays falling in the third quarter in fiscal year 2025. Furthermore, we strengthened our distribution channels of AXIL products, expanded our presence in new geographic regions, and increased distributor sales of our hair and skin care products.
Current report
For the three months ended February 28, 2025, the overall cost of sales increased by $110,922 or 6.0%, as compared to the three months ended February 29, 2024, which was primarily due to the strengthening of our distribution channels in both segments of our business. Cost of sales as a percentage of net revenues for the three months ended February 28, 2025 was 28.3% as compared to 28.5% for the three months ended February 29, 2024.
Current report
Gross profit for the three months ended February 28, 2025 and February 29, 2024 was $4,966,428 and $4,624,326, respectively. Gross profit as a percentage of sales for the three months ended February 28, 2025 was 71.7%, as compared to 71.5% for the three months ended February 29, 2024.
Current report
Income from operations for the three months ended February 28, 2025 was $583,109 compared to a loss from operations of $103,879 for the three months ended February 29, 2024. The increase in income from operations of $686,988 was primarily related to increased sales in both our direct-to-consumer channels as well as our distribution channels, partially offset by an increase in stock-based compensation.
Current report
Adjusted EBITDA increased by $901,598 to $890,546 for the three months ended February 28, 2025 from an Adjusted EBITDA loss of $11,052 for the three months ended February 29, 2024. The increase of Adjusted EBITDA related to increased sales in both our direct-to-consumer channels as well as our distribution channels. Adjusted EBITDA as a percentage of sales, net for the three months ended February 28, 2025 and February 29, 2024, was 12.9% and (0.2)%, respectively.
Current report
Net sales for the nine months ended February 28, 2025 and nine months ended February 29, 2024 were $20,506,213 and $20,997,289, respectively. Net sales for the nine months ended February 28, 2025 decreased by $491,076 or 2.3%, as compared to the nine months ended February 29, 2024. This decrease was primarily due to reduced advertising expenditure which adversely affected direct to consumer sales in the first and second quarters of the fiscal year offset by the strong performance of the third quarter.
Current report
Income from operations for the nine months ended February 28, 2025, was $1,115,278 compared to income of $1,333,790 for the nine months ended February 29, 2024. The decrease in income from operations of $218,512 or 16.4% was primarily related to an increase in our non-cash stock-based compensation.
Current report
Adjusted EBITDA increased by $399,763, or 23.8% from $1,677,058 for the nine months ended February 29, 2024 to $2,076,821 for the nine months ended February 28, 2025. Adjusted EBITDA as a percentage of sales, net for the nine months ended February 28, 2025 and February 29, 2024 was 10.1% and 8.0%, respectively. The increase was primarily due to a strong performance of the third quarter in fiscal year 2025, a forgiveness of account payable amounting to approximately $220,000 and a decrease in advertising expenses.
Removed paragraphs (8)
Previous report
Net sales for the three months ended November 30, 2024 and 2023 were $7,732,574 and $8,421,677, respectively. Net sales for the three months ended November 30, 2024 decreased by $689,103 or 8%, as compared to the three months ended November 30, 2023. This decrease is primarily due to the timing of post-Thanksgiving sales events, as a significant portion of these sales will be recognized in the third quarter this fiscal year, whereas sales from post-Thanksgiving sales events were recognized entirely in the second quarter in the prior fiscal year. Additionally, reduced advertising expenditure adversely affected direct to consumer sales in the three months ended November 30, 2024, as well as an increase of discounts as a percentage of revenue, offset by the strength in our distribution channels for AXIL products, and an increase in distributor sales in our hair and skin care products.
Previous report
Income from operations for the three months ended November 30, 2024 was $672,871 compared to $1,263,912 for the three months ended November 30, 2023. The decrease in income from operations of $591,041 or 46.8% was primarily related to the timing of post-Thanksgiving sales events, as a significant portion of these sales will be recognized in the third quarter this fiscal year, whereas sales from post-Thanksgiving sales events were recognized entirely in the second quarter in the prior fiscal year. Additionally, there was an increase in our non-cash stock-based compensation and lower gross profit, partially offset by a forgiveness of accounts payable.
Previous report
Adjusted EBITDA for the three months ended November 30, 2024 and 2023 were $1,013,952 and $1,425,176, respectively. The decrease of $411,224 was primarily related to the timing of post-Thanksgiving sales events, as a significant portion of these sales will be recognized in the third quarter this fiscal year, whereas sales from post-Thanksgiving sales events were recognized entirely in the second quarter in the prior fiscal year. Adjusted EBITDA as a percentage of sales, net for the three months ended November 30, 2024 and 2023, were 13.1% and 16.9%, respectively. The decline was primarily due to the decrease in the gross margin and the increase in costs related to our expansion into new geographic markets and product lines, partially offset by a forgiveness of accounts payable of approximately $220,000.
Previous report
Net sales for the six months ended November 30, 2024 and 2023 were $13,583,846 and $14,527,946, respectively. Net sales for the six months ended November 30, 2024 decreased by $944,100 or 6%, as compared to the six months ended November 30, 2023. This decrease is primarily due to the timing of post-Thanksgiving sales events, as a significant portion of these sales will be recognized in the third quarter this fiscal year, whereas sales from post-Thanksgiving sales events were recognized entirely in the second quarter in the prior fiscal year. Additionally, reduced advertising expenditure adversely affected direct to consumer sales in the six months ended November 30, 2024, as well as an increase of discounts as a percentage of revenue, offset by the strength in our distribution channels for AXIL products, and an increase in distributor sales in our hair and skin care products.
Previous report
For the six months ended November 30, 2024, the overall cost of sales increased by $309,710 or 9%, as compared to the six months ended November 30, 2023, which was primarily due to the relative increase in sales of the Company’s hair and skin care products. Cost of sales as a percentage of net revenues for the six months ended November 30, 2024 was 28.9% as compared to 24.9% for the comparable period in 2023. The increase in cost of sales, as a percentage of sales, was primarily attributable to an increase in sales to distributors in our hair and skin care products bearing lower margins, and an increase in sales of lower margin products in our hearing enhancement and protection segment.
Previous report
Gross profit for the six months ended November 30, 2024 and 2023 was $9,651,695 and $10,905,505, respectively. Gross profit as a percentage of sales for the six months ended November 30, 2024, was 71.1% as compared to 75.1% for the comparable period in 2023. The decrease in the gross profit margin for the six months ended November 30, 2024 was primarily attributable to an increase in cost of sales as a percentage of revenue, and an increase of discounts as a percentage of revenue.
Previous report
Income from operations for the six months ended November 30, 2024, was $532,169 compared to income of $1,437,669 for the six months ended November 30, 2023. The decrease in income from operations of $905,500 or 63.0% was primarily timing of post-Thanksgiving sales events, as a significant portion of these sales will be recognized in the third quarter this fiscal year, whereas sales from post-Thanksgiving sales events were recognized entirely in the second quarter in the prior fiscal year. Additionally, there was a decrease related to the increase of our non-cash stock-based compensation and lower gross profit, partially offset by a forgiveness of accounts payable.
Previous report
Adjusted EBITDA for the six months ended November 30, 2024 and 2023 were $1,186,275 and $1,688,112 respectively. The decrease of $501,837 was primarily related to the timing of post-Thanksgiving sales events, as a significant portion of these sales will be recognized in the third quarter this fiscal year, whereas sales from post-Thanksgiving sales events were recognized entirely in the second quarter in the prior fiscal year. Adjusted EBITDA as a percentage of sales, net for the six months ended November 30, 2024 and 2023, were 8.7% and 11.6%, respectively. The decline was primarily due to the decrease in the gross margin and the increase in costs related to our expansion into new geographic markets and product lines, partially offset by a forgiveness of accounts payable of approximately $220,000.
Reworded paragraphs (17)
Previous wording
The Company’s overall business strategy is to establish market awareness of our products through our direct-to-consumer campaigns. The Company's strategy centers on driving growth by expanding market share within existing channels and developing new ones through both online and traditional platforms. The Company’s primary focus is optimizing its e-commerce strategies, building sales teams to meet the needs of distribution channels, and enhancing value through strategic partnerships. We believe the increase in awareness will allow the Company to increase distribution and gain customers through our distribution partners’ retail establishments, with the goal of helping us achieve growth in market share and diversify our sales channels.
Current wording
The Company’s overall business strategy is to establish market awareness of our products through our direct-to-consumer campaigns. The Company’s strategy centers on driving growth by expanding market share within existing channels and developing new ones through both online and traditional platforms. The Company’s primary focus is optimizing its e-commerce strategies, building sales teams to meet the needs of distribution channels, and enhancing value through strategic partnerships. The Company is also working to expand its offline retail presence and enter into new international markets. We believe the increase in awareness will allow us to increase distribution and gain customers through our distribution partners’ retail establishments, with the goal of helping us achieve growth in market share and diversify our sales channels; however, we cannot provide any assurances that such increases will occur, or that we will realize the anticipated benefits of our actions.
Previous wording
Operating expenses consisted of marketing and selling expenses, compensation and related taxes, professional and consulting fees, and general and administrative costs. Operating expenses decreased by $168,851 or 3% from $4,994,027 in the three months ended November 30, 2023 to $4,825,176 in the three months ended November 30, 2024. Operating expense as a percentage of revenue for the three months ended November 30, 2024 was 62.4% compared 59.3% for the comparable period in 2023. Included in operating expenses were non-cash stock-based compensation of $304,600 and $51,111 in the three months ended November 30, 2024 and 2023, respectively. The decrease in operating expenses related primarily to lower advertising costs, and a forgiveness of accounts payable of approximately $220,000, partially offset by an increase of stock-based compensation expense and an increase in salaries and consulting fees. During the three months ended November 30, 2024, we incurred approximately $130,000 in consulting fees to support our expansion into new geographic markets, compared to $0 for the same period in 2023. Of this amount, approximately $50,000 was related to stock-based compensation. We have also incurred additional costs related to new product lines. We believe we have not yet realized the anticipated benefits from our recent efforts to expand into new geographic markets and product lines.
Current wording
Operating expenses consisted of marketing and selling expenses, compensation and related taxes, professional and consulting fees, and general and administrative costs. Operating expenses decreased by $344,886 or 7.3% from $4,728,205 in the three months ended February 29, 2024 to $4,383,319 in the three months ended February 28, 2025. Operating expense as a percentage of revenue for the three months ended February 28, 2025 was 63.3% compared 73.1% for the three months ended February 29, 2024. Included in operating expenses were non-cash stock-based compensation of $258,053 and $59,099 in the three months ended February 28, 2025 and three months ended February 29, 2024, respectively. The decrease in operating expenses related primarily to lower advertising costs, as we move to a more targeted and efficient approach of advertising for direct-to-consumer sales channels and improve reliance on our distribution channels. During the three months ended February 28, 2025, we incurred approximately $195,000 in consulting fees to support our expansion into new geographic markets, compared to $0 for the same period in 2024. Of this amount, approximately $116,000 was related to stock-based compensation. We have also incurred additional costs related to new product lines. We believe we have not yet realized the anticipated benefits from our recent efforts to expand into new geographic markets and product lines.
Previous wording
For the three months ended November 30, 2024 provision for income taxes was $67,250. For the three months ended November 30, 2023, provision for income tax expense was $364,393.
Current wording
For the three months ended February 28, 2025 provision for income taxes was $53,085. For the three months ended February 29, 2024, we had an income tax benefit of $827,436.
Previous wording
As a result of the above, and a gain on settlement of debt of approximately $79,000 in the prior year period that did not recur in the current period, we reported a net income of $633,706 and a net income of $1,018,075 for the three months ended November 30, 2024 and 2023, respectively.
Current wording
As a result of the above, we reported a net income of $576,662 and a net income of $781,091 for the three months ended February 28, 2025 and February 29, 2024, respectively.
Previous wording
For the Six Months Ended November 30, 2024 Compared to the Six Months Ended November 30, 2023
Current wording
For the Nine Months Ended February 28, 2025 Compared to the Nine Months Ended February 29, 2024
Previous wording
For the three months ended November 30, 2024, the overall cost of sales increased by $70,789 or 3%, as compared to the three months ended November 30, 2023, which was primarily due to the relative increase in sales of the Company’s hair and skin care products. Cost of sales as a percentage of net revenues for the three months ended November 30, 2024 was 28.9% as compared to 25.7% for the comparable period in 2023. The increase in cost of sales, as a percentage of sales, was primarily attributable to an increase in sales to distributors in our hair and skin care products bearing lower margins, and an increase in sales of lower margin products in our hearing enhancement and protection segment.
Current wording
For the nine months ended February 28, 2025, the overall cost of sales increased by $420,632 or 7.7%, as compared to the nine months ended February 29, 2024. Cost of sales as a percentage of net revenues for the nine months ended February 28, 2025 was 28.7% as compared to 26.0% for the three months ended February 29, 2024. The increase in cost of sales, as a percentage of sales, was primarily attributable to an increase in sales to distributors in both our hair and skin care products and our hearing enhancement and protection segment, bearing lower margins.
Previous wording
Gross profit for the three months ended November 30, 2024 and 2023 was $5,498,047 and $6,257,939, respectively. Gross profit as a percentage of sales for the three months ended November 30, 2024, was 71.1% as compared to 74.3% for the comparable period in 2023. The decrease in the gross profit margin for the three months ended November 30, 2024 was primarily attributable to an increase in cost of sales as a percentage of revenue, and an increase of discounts as a percentage of revenue.
Current wording
Gross profit for the nine months ended February 28, 2025 and February 29, 2024 was $14,618,123 and $15,529,831, respectively. Gross profit as a percentage of sales for the nine months ended February 28, 2025 was 71.3%, as compared to 74.0% for the nine months ended February 29, 2024. The decrease in the gross profit margin for the nine months ended February 28, 2025 was primarily attributable to an increase in cost of sales as a percentage of revenue, and an increase in discounts as a percentage of revenue.
Previous wording
Operating expenses consisted of marketing and selling expenses, compensation and related taxes, professional and consulting fees, and general and administrative costs. Operating expenses decreased by $348,310 or 4% from $9,467,836 in the six months ended November 30, 2023 to $9,119,526 in the six months ended November 30, 2024. Operating expenses as a percentage of net revenues for the six months ended November 30, 2024, were 67.1% compared to 65.2% for the six months ended November 30, 2023. Included in operating expenses were non-cash stock-based compensation of $602,464 and $102,215 in the six months ended November 30, 2024 and 2023, respectively. The decrease in operating expenses related primarily to a net decrease in advertising expenses, and a forgiveness of account payable amounting to approximately $220,000 partially offset by an increase of stock-based compensation of $500,249 and increased professional and consulting fees. During the six months ended November 30, 2024, we incurred approximately $200,000 in consulting fees to support our expansion into new geographic markets, compared to $0 for the same period in 2023. Of this amount, approximately $80,000 was related to stock-based compensation. We have also incurred additional costs related to new product lines. We believe we have not yet realized the anticipated benefits from our recent efforts to expand into new geographic markets and product lines.
Current wording
Operating expenses consisted of marketing and selling expenses, compensation and related taxes, professional and consulting fees, and general and administrative costs. Operating expenses decreased by $693,196 or 4.9% from $14,196,041 in the nine months ended February 29, 2024 to $13,502,845 in the nine months ended February 28, 2025. Operating expenses as a percentage of net revenues for the nine months ended February 28, 2025 was 65.8% compared to 67.6% for the nine months ended February 29, 2024. Included in operating expenses were non-cash stock-based compensation of $860,517 and $161,314 in the nine months ended February 28, 2025 and February 29, 2024, respectively. The decrease in operating expenses related primarily to a net decrease in advertising expenses, and a forgiveness of account payable amounting to approximately $220,000 partially offset by an increase of stock-based compensation of $699,203 and increased professional and consulting fees. During the nine months ended February 28, 2025, we incurred approximately $395,000 in consulting fees to support our expansion into new geographic markets, compared to $0 for the same period in 2024. Of this amount, approximately $195,000 was related to stock-based compensation. We have also incurred additional costs related to new product lines. We believe we have not yet realized the anticipated benefits from our recent efforts to expand into new geographic markets and product lines.
Previous wording
For the six months ended November 30, 2024, provision for income tax expense was $67,250. For the six months ended November 30, 2023, provision for income tax expense was $430,382.
Current wording
For the nine months ended February 28, 2025, provision for income tax expense was $120,335. For the nine months ended February 29, 2024, income tax benefit was $397,054.
Previous wording
As a result of the above, and a gain on settlement of debt of approximately $79,000 in the prior year period that did not recur in the current period, we reported a net income of $523,901 and $1,172,527 for the six months ended November 30, 2024 and 2023, respectively.
Current wording
As a result of the above, and a gain on settlement of debt of approximately $79,000 in the prior year period that did not recur in the current period, we reported a net income of $1,100,563 and $1,953,618 for the nine months ended February 28, 2025 and February 29, 2024, respectively.
Previous wording
We are currently engaged in product sales and development. Although we earned net income and have cash provided by operations for the six months ended November 30, 2024, we have incurred operating losses in the past. We currently expect to earn net income and positive cash flows from operations during the current fiscal year ending May 31, 2025. We believe our current cash balances, coupled with anticipated cash flow from operating activities, will be sufficient to meet our working capital requirements for at least one year from the date of issuance of the accompanying unaudited consolidated financial statements. We intend to continue to control our cash expenses as a percentage of expected revenue on an annual basis and thus may use our cash balances in the short-term to invest in revenue growth. As a result of the acquisition of AXIL & Associated Brands’ assets in June 2022, we have generated and expect we will continue to generate sufficient cash for our operational needs, including any required debt payments, for at least one year from the date of issuance of the accompanying unaudited consolidated financial statements. Management is focused on growing the Company’s existing product lines and introducing new products, as well as expanding its customer base, to increase its revenues. The Company cannot give assurance that it can increase its cash balances or limit its cash consumption and thus maintain sufficient cash balances for its planned operations or future acquisitions. Future business demands may lead to cash utilization at levels greater than recently experienced. The Company cannot provide any assurance that it will be able to raise additional capital or obtain necessary financing on acceptable terms, or at all. Subject to the foregoing, management believes that the Company has sufficient capital and liquidity to fund its operations for at least one year from the date of issuance of the accompanying unaudited consolidated financial statements.
Current wording
We are currently engaged in product sales and development. Although we earned net income and have cash provided by operations for the nine months ended February 28, 2025, we have incurred operating losses in the past. We currently expect to earn net income and positive cash flows from operations during the current fiscal year ending May 31, 2025. We believe our current cash balances, coupled with anticipated cash flow from operating activities, will be sufficient to meet our working capital requirements for at least one year from the date of issuance of the accompanying unaudited consolidated financial statements. We intend to continue to control our cash expenses as a percentage of expected revenue on an annual basis and thus may use our cash balances in the short-term to invest in revenue growth. As a result of the acquisition of AXIL & Associated Brands’ assets in June 2022, we have generated and expect we will continue to generate sufficient cash for our operational needs, including any required debt payments, for at least one year from the date of issuance of the accompanying unaudited consolidated financial statements. Management is focused on growing the Company’s existing product lines and introducing new products, as well as expanding its customer base, to increase its revenues. The Company cannot give assurance that it can increase its cash balances or limit its cash consumption and thus maintain sufficient cash balances for its planned operations or future acquisitions. Future business demands may lead to cash utilization at levels greater than recently experienced. The Company cannot provide any assurance that it will be able to raise additional capital or obtain necessary financing on acceptable terms, or at all. Subject to the foregoing, management believes that the Company has sufficient capital and liquidity to fund its operations for at least one year from the date of issuance of the accompanying unaudited consolidated financial statements.
Previous wording
Net cash provided by operating activities for the six months ended November 30, 2024, was $1,904,174, compared to $1,252,113 for the same period in 2023. This improvement primarily resulted from our strategic decision to increase inventory levels as of May 31, 2024 to accommodate new product variations and packaging aimed at expanding into new markets. Inventory sold during the six months ended November 30, 2024, contributed positively to cash flows. We also negotiated a forgiveness of accounts payable during the six months ended November 30, 2024, resulting in an improvement of operating cash flows of approximately $220,000 offset by timing of net changes in operating assets and liabilities excluding inventory.
Current wording
Net cash provided by operating activities for the nine months ended February 28, 2025, was $1,734,230, compared to $339,323 for the nine months ended February 29, 2024. This improvement primarily resulted from our strategic decision to increase inventory levels as of May 31, 2024 to accommodate new product variations and packaging aimed at expanding into new markets. Inventory sold during the nine months ended February 28, 2025 contributed positively to cash flows. We also negotiated a forgiveness of accounts payable during the nine months ended February 28, 2025, resulting in an improvement of operating cash flows of approximately $220,000 offset by timing of net changes in operating assets and liabilities excluding inventory.
Previous wording
Net cash flows used in investing activities for the six months ended November 30, 2024 was $107,623 due to the purchase of intangibles and property and equipment for the Company’s business. For the six months ended November 30, 2023, net cash flows used in investing activities were $70,845, attributable to the cash used in the purchase of property and equipment primarily relating to our expansion into new product lines.
Current wording
Net cash flows used in investing activities for the nine months ended February 28, 2025 was $255,778 due to the purchase of intangibles and property and equipment for the Company’s business. For the nine months ended February 29, 2024, net cash flows used in investing activities were $80,192, attributable to the cash used in the purchase of property and equipment primarily relating to our expansion into new product lines.
Previous wording
Net cash flows provided by financing activities for the six months ended November 30, 2024 was $163,470, and were from advances made from a related party of $166,722 partially offset by a repayment of the note payable of $3,252. Net cash flows used in financing activities for the six months ended November 30, 2023 were $51,519 primarily related to the repayment of note payable of $24,657 and payments to our related party of $25,212.
Current wording
Net cash flows provided by financing activities for the nine months ended February 28, 2025 was $11,142, and were from advances made from a related party of $16,778 partially offset by a repayment of the note payable of $5,636. Net cash flows used in financing activities for the nine months ended February 29, 2024 were $204,246 primarily related to the repayment of note payable of $25,438 and payments to our related party of $176,608.
Previous wording
As of November 30, 2024, we had a secured Economic Injury Disaster Loan outstanding, administered pursuant to the CARES Act in the principal amount of $143,342, with a maturity date of May 18, 2050. The Company continues to pay interest and principal on the loan.
Current wording
As of February 28, 2025, we had a secured Economic Injury Disaster Loan outstanding, administered pursuant to the CARES Act in the principal amount of $140,958, with a maturity date of May 18, 2050. The Company continues to pay interest and principal on the loan.
Previous wording
As of November 30, 2024, we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results or operations, liquidity, capital expenditures or capital resources that is material to investors.
Current wording
As of February 28, 2025, we did not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results or operations, liquidity, capital expenditures or capital resources that is material to investors.
Previous wording
See the footnotes to our unaudited consolidated financial statements for the three and six months ended November 30, 2024, included with this Quarterly Report on Form 10-Q for additional discussion of our critical accounting policies and use of estimates.
Current wording
See the footnotes to our unaudited consolidated financial statements for the three and nine months ended February 28, 2025, included with this Quarterly Report on Form 10-Q for additional discussion of our critical accounting policies and use of estimates.