Zeo ScientifiX Inc

Previous wording

We are a clinical-stage biopharmaceutical company principally focusing on the development of innovative biological therapeutics for the treatment of degenerative diseases and regenerative medicine. The Company’s proprietary products are derived from perinatal sources and manufactured to retain the naturally occurring extracellular vesicles, hyaluronic acid, and proteins without the addition or combination of any other substance or diluent and an autologous non-manipulated biologic containing the nanoparticle fraction from a patient’s own peripheral blood (“RAAM Products”). Our RAAM Products and related services are principally used in the health care industry administered through doctors and clinics (“Providers”).

Current wording

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

Previous wording

The following discussion of the Company’s results of operations and liquidity and capital resources should be read in conjunction with our condensed unaudited financial statements and related notes thereto appearing inItem 1. of this Report.

Current wording

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

Previous wording

Revenues. Our revenues for the three months ended April 30, 2024 were $1,131,000, compared to revenues of $845,000 for the three months ended April 30, 2023. The increase in revenues during the three months ended April 30, 2024 of $286,000 or 33.8% from the three months ended April 30, 2023, was primarily the result of an increase of approximately 19.2% (approximately $163,000) in the overall unit sales of its high concentration biologic products during the three months ended April 30, 2024, an increase of approximately 3.8% (approximately $31,000) in the average sales prices for the high concentration biologic products sold during the three months ended April 30, 2024, and an increase of approximately $92,000 of revenues associated with its recently launched PPX™ service platform during the three months ended April 30, 2024.

Current wording

Revenues. Our revenues for the three months ended July 31, 2024 were $1,091,000, compared to revenues of $1,221,000 for the three months ended July 31, 2023. The decrease in revenues during the three months ended July 31, 2024 of $130,000 or 10.6% from the three months ended July 31, 2023, was primarily the result of a decrease of approximately 18.3% (approximately $212,000) in the average sales prices for the high concentration biologic products sold during the three months ended July 31, 2024, compared with the three months ended July 31, 2023, partially offset by an increase of approximately 142.8% (approximately $92,000) of revenues associated with its recently launched PPX™ service platform during the three months ended July 31, 2024, compared with the three months ended July 31, 2023.

Previous wording

The increase in the overall unit sales of its high concentration biologic products and revenues associated with its recently launched PPX™ service platform during the six months ended April 30, 2024, as compared to the six months ended April 30, 2023 was primarily due the Company’s expanded sales and marketing efforts which included engaging additional sales representatives, participation in industry related conferences and sponsoring of educational webinars.

Current wording

The increase in the overall unit sales associated with its recently launched PPX™ service platform was primarily due the Company’s expanded sales and marketing efforts which included engaging additional sales representatives, participation in industry related conferences and sponsoring of educational webinars.

Previous wording

The percentage of overall unit sales of the Company’s high concentration medical grade biologic product offerings decreased to 46.6% from 49.1% and increased to 53.4% from 50.9% for the Company’s high concentration aesthetic biologics product offerings, respectively, for the three months ended April 30, 2024, as compared to the three months ended April 30, 2023.

Current wording

The decrease in the average sales prices for the high concentration biologic products sold during the three months ended July 31, 2024, compared to the three months ended July 31, 2023 was due to a reduction in sales of the Company’s higher priced medical grade biologic product offerings as compared to the Company’s lower priced aesthetic biologics product offerings. Although the total number of unit sales of its high concentration biologic products did not change significantly during the three months ended July 31, 2024, compared to the three months ended July 31, 2023 (a difference of 1.0%), the percentage of overall unit sales of the Company’s high concentration medical grade biologic product offerings decreased to 42.1% from 57.1% and increased to 57.9% from 42.8% for the Company’s high concentration aesthetic biologics product offerings, respectively, for the three months ended July 31, 2024, as compared to the three months ended July 31, 2023.

Previous wording

Cost of Revenues. Our cost of revenues for the three months ended April 30, 2024 was $284,000, as compared to cost of revenues of $108,000 for the three months ended April 30, 2023. The increase in the cost of revenues for the three months ended April 30, 2024 of $176,000 or 163.0%, from the three months ended April 30, 2023, was due the increase of approximately 19.2% (approximately $34,000) in the overall unit sales of its high concentration biologic products, an increase of approximately 66.4% (approximately $70,000) in the average cost of revenues for the high concentration biologic products, and an increase of approximately $72,000 of cost of revenues associated with its recently launched PPX™ service platform during the three months ended April 30, 2024, compared with the three months ended April 30, 2023.

Current wording

Cost of Revenues. Our cost of revenues for the three months ended July 31, 2024 was $176,000, as compared to cost of revenues of $162,000 for the three months ended July 31, 2023. The increase in the cost of revenues for the three months ended July 31, 2024 of $14,000 or 8.6%, from the three months ended July 31, 2023, was due the increase of approximately $37,000 of cost of revenues associated with its recently launched PPX™ service platform during the three months ended July 31, 2024, compared with the three months ended July 31, 2023, partially offset from a decrease of approximately 18.2% (approximately $24,000) in the average cost of revenues for the high concentration biologic products for the three months ended July 31, 2024, as compared to the three months ended July 31, 2023.

Previous wording

Gross Profit. Our gross profit for the three months ended April 30, 2024 was $847,000 (74.9% of revenues), as compared to gross profit of $737,000 (87.2% of revenues) for the three months ended April 30, 2023. The increase in gross profit during the three months ended April 30, 2024 of $110,000 was the result of increases in the amount of high concentration biologic products sold and increases in the sales of its recently launched PPX™ service platform, partially offset from the increase in costs of revenues associated with those product sales during the three months ended April 30, 2024, compared to the three months ended April 30, 2023.

Current wording

Gross Profit. Our gross profit for the three months ended July 31, 2024 was $915,000 (83.9% of revenues), as compared to gross profit of $1,059,000 (86.7% of revenues) for the three months ended July 31, 2023. The decrease in gross profit during the three months ended July 31, 2024 of $144,000 was the result of decreases in the average sales prices from its high concentration biologic products sold, partially offset from the increases in the sales of its recently launched PPX™ service platform and the increase in costs of revenues associated with those product sales during the three months ended July 31, 2024, compared to the three months ended July 31, 2023.

Previous wording

In addition, the percentage of the Company’s revenues associated with its recently launched PPX™ service platform, which has a lower gross margin percentage as compared to the Company’s high concentration biologic product offerings, increased to 10.5% of revenues for the three months ended April 30, 2024, as compared with 3.2% of revenues for the three months ended April 30, 2023.

Current wording

In addition, the percentage of the Company’s revenues associated with its recently launched PPX™ service platform, which has a lower gross margin percentage as compared to the Company’s high concentration biologic product offerings, increased to 14.4% of revenues for the three months ended July 31, 2024, as compared with 5.3% of revenues for the three months ended July 31, 2023.

Previous wording

General and Administrative Expenses. General and administrative expenses for the three months ended April 30, 2024 were $2,411,000, as compared with $2,650,000 for the three months ended April 30, 2023, a decrease of $239,000 or 9.0%. The decrease in the general and administrative expenses for the three months ended April 30, 2024, from the three months ended April 30, 2023, was primarily the result of decreased research and development costs of approximately $401,000, decreased laboratory related costs of approximately $265,000, decreased office related expenses of approximately $70,000 and decreased professional fees of approximately $106,000, which were partially offset by increased in stock-based compensation costs to advisors, consultants and administrative staff totaling approximately $487,000 and increased payroll and consulting fees of approximately $76,000 during the three months ended April 30, 2024, as compared to the three months ended April 30, 2023.

Current wording

General and Administrative Expenses. General and administrative expenses for the three months ended July 31, 2024 were $2,083,000, as compared with $2,505,000 for the three months ended July 31, 2023, a decrease of $422,000 or 16.8%. The decrease in the general and administrative expenses for the three months ended July 31, 2024, from the three months ended July 31, 2023, was primarily the result of decreased research and development costs of approximately $233,000, decreased laboratory related costs of approximately $80,000, decreased commissions and travel costs of approximately $187,000 and decreased professional fees of approximately $102,000, which were partially offset by increased in stock-based compensation costs to advisors, consultants and administrative staff totaling approximately $55,000 and increased payroll and consulting fees of approximately $209,000 during the three months ended July 31, 2024, as compared to the three months ended July 31, 2023.

Previous wording

The decrease in laboratory related costs was principally the result of the Company’s sale of the Basalt laboratory facility in August 2023 and as a result, there were no associated costs associated with operating that facility during the three months ended April 30, 2024, as compared with the three months ended April 30, 2023. The decrease in research and development costs during the three months ended April 30, 2024, from the three months ended April 30, 2023 was principally the result of the Company’s completion of its Phase 1 trials during July 2023, and there being no other significant clinical trial costs incurred since that time. The decrease in professional fees was principally the result of reduced audit fees, tax preparation fees and legal fees during the three months ended April 30, 2024, as compared to the three months ended April 30, 2023. The increase in stock-based compensation costs during the three months ended April 30, 2024, as compared to the three months ended April 30, 2023 was principally the result of increased amortization of costs from shares and options issued to executives and advisors and options issued to employees and outside directors.

Current wording

The decrease in research and development costs during the three months ended July 31, 2024, from the three months ended July 31, 2023 was principally the result of the Company’s completion of its Phase 1 trials during July 2023, and there being no other significant clinical trial costs incurred since that time. The decrease in laboratory related costs was principally the result of the Company’s sale of the Basalt laboratory facility in August 2023 and as a result, there were no associated costs associated with operating that facility during the three months ended July 31, 2024, as compared with the three months ended July 31, 2023. The decrease in professional fees was principally the result of reduced audit fees, tax preparation fees and legal fees during the three months ended July 31, 2024, as compared to the three months ended July 31, 2023. The decrease in commissions and travel costs during the three months ended July 31, 2024, as compared to the three months ended July 31, 2023 was principally the result of reduced sales and a larger percentage of sales that were generated from house accounts with much lower commission costs than paid to distributors and/or independent sales representatives.

Previous wording

Other expense for the three months ended April 30, 2024 was $20,000, as compared to other expense of $109,000 for the three months ended April 30, 2023. The decrease in other expense of $89,000 during the three months ended April 30, 2024, as compared to the three months ended April 30, 2023, was principally the result of reduced amortization of loan discounts of approximately $86,000, reduced IRS interest and penalties of approximately 13,000, partially offset from increased interest expenses on debt obligations of $10,000 during the three months ended April 30, 2024, as compared to the three months ended April 30, 2023.

Current wording

Other expense for the three months ended July 31, 2024 was $68,000, as compared to other expense of $172,000 for the three months ended July 31, 2023. The decrease in other expense of $104,000 during the three months ended July 31, 2024, as compared to the three months ended July 31, 2023, was principally the result of reduced amortization of loan discounts of approximately $149,000, partially offset from increases in the reserve against the carrying value of the Company’s investments in equity securities of $45,000 during the three months ended July 31, 2024, as compared to the three months ended July 31, 2023.

Previous wording

Revenues. Our revenues for the six months ended April 30, 2024 were $2,285,000, as compared to revenues of $1,915,000 for the six months ended April 30, 2023. The increase in revenues for the six months ended April 30, 2024 of $370,000 or 19.3%, was primarily the result of an increase of approximately 14.7% (approximately $271,000) in the overall unit sales of its high concentration biologic products during the six months ended April 30, 2024 and an increase of approximately $116,000 of revenues associated with its recently launched PPX™ service platform during the six months ended April 30, 2024, from the six months ended April 30, 2023, partially offset by a decrease of approximately 1.0% (approximately $18,000) in the average sales prices for the high concentration biologic products sold during the six months ended April 30, 2024, compared with the six months ended April 30, 2023.

Current wording

Revenues. Our revenues for the nine months ended July 31, 2024 were $3,376,000, as compared to revenues of $3,136,000 for the nine months ended July 31, 2023. The increase in revenues for the nine months ended July 31, 2024 of $240,000 or 7.7%, was primarily the result of an increase of approximately $208,000 of revenues associated with its recently launched PPX™ service platform during the nine months ended July 31, 2024, compared with the nine months ended July 31, 2023 and an increase of approximately 8.6% (approximately $242,000) in the overall unit sales of its high concentration biologic products during the nine months ended July 31, 2024, compared with the nine months ended July 31, 2023, partially offset by a decrease of approximately 7.0% (approximately $210,000) in the average sales prices for the high concentration biologic products sold during the nine months ended July 31, 2024, compared with the nine months ended July 31, 2023.

Previous wording

The increase in the overall unit sales of its high concentration biologic products and revenues associated with its recently launched PPX™ service platform during the three months ended April 30, 2024, as compared to the three months ended April 30, 2023 was primarily due the Company’s expanded sales and marketing efforts which included engaging additional sales representatives, participation in industry related conferences and sponsoring of educational webinars.

Current wording

The increase in the overall unit sales of its high concentration biologic products and revenues associated with its recently launched PPX™ service platform during the nine months ended July 31, 2024, as compared to the nine months ended July 31, 2023 was primarily due the Company’s expanded sales and marketing efforts which included engaging additional sales representatives, participation in industry related conferences and sponsoring of educational webinars.

Previous wording

Cost of Revenues. Our cost of revenues for the six months ended April 30, 2024 were $443,000, as compared to cost of revenues of $212,000 for the six months ended April 30, 2023. The increase in the cost of revenues for the six months ended April 30, 2024 of $231,000 or 109.0%, from the six months ended April 30, 2023, was due the increase of approximately 14.7% (approximately $42,000) in the overall unit sales of its high concentration biologic products, an increase of approximately 43.5% (approximately $85,000) in the average cost of revenues for the high concentration biologic products, and an increase of approximately $104,000 of cost of revenues associated with its recently launched PPX™ service platform during the six months ended April 30, 2024, as compared to the six months ended April 30, 2023.

Current wording

Cost of Revenues. Our cost of revenues for the nine months ended July 31, 2024 were $619,000, as compared to cost of revenues of $375,000 for the nine months ended July 31, 2023. The increase in the cost of revenues for the nine months ended July 31, 2024 of $244,000 or 65.1%, from the nine months ended July 31, 2023, was due an increase of approximately $142,000 of cost of revenues associated with its recently launched PPX™ service platform during the nine months ended July 31, 2024, as compared to the nine months ended July 31, 2023, the increase of approximately 20.2% (approximately $67,000) in the average cost of revenues for the high concentration biologic products during the nine months ended July 31, 2024, as compared to the nine months ended July 31, 2023 and the increase of approximately 8.6% (approximately $35,000) in the overall unit sales of its high concentration biologic products, during the nine months ended July 31, 2024, as compared to the nine months ended July 31, 2023.

Previous wording

Gross Profit. Our gross profit for the six months ended April 30, 2024 was $1,842,000 (80.6% of revenues), compared to gross profit of $1,703,000 (88.9% of revenues) for the six months ended April 30, 2023. The increase in gross profit during the six months ended April 30, 2024 of $139,000 was the result of increases in the amount of high concentration biologic products sold and increases in the sales of its recently launched PPX™ service platform, partially offset from the increase in costs of revenues associated with those product sales during the six months ended April 30, 2024, compared to the six months ended April 30, 2023.

Current wording

Gross Profit. Our gross profit for the nine months ended July 31, 2024 was $2,757,000 (81.7% of revenues), compared to gross profit of $2,761,000 (88.1% of revenues) for the nine months ended July 31, 2023. The minor change in gross profit during the nine months ended July 31, 2024 compared to the nine months ended July 31, 2023 was the result of increases in the amount of high concentration biologic products sold and increases in the sales of its recently launched PPX™ service platform, offset from the increase in costs of revenues associated with those product sales during the nine months ended July 31, 2024, compared to the nine months ended July 31, 2023.

Previous wording

In addition, the percentage of the Company’s revenues associated with its recently launched PPX™ service platform, which has a lower gross margin percentage as compared to the Company’s high concentration biologic product offerings, increased to 7.4% of revenues for the six months ended April 30, 2024, as compared to 2.8% of revenues for the six months ended April 30, 2023.

Current wording

The percentage of the Company’s revenues associated with its recently launched PPX™ service platform, which has a lower gross margin percentage as compared to the Company’s high concentration biologic product offerings, increased to 9.6% of revenues for the nine months ended July 31, 2024, as compared to 3.8% of revenues for the nine months ended July 31, 2023.

Previous wording

General and Administrative Expenses. General and administrative expenses for the six months ended April 30, 2024 were $4,568,000, as compared to $5,792,000 for the six months ended April 30, 2023, a decrease of $1,224,000 or 21.1%. The decrease in the general and administrative expenses for the six months ended April 30, 2024, from the six months ended April 30, 2023, was primarily the result of decreased research and development costs of approximately $569,000, decreases in insurance costs of approximately $123,000, decreased marketing and investor relations costs of approximately $123,000, decreases in commissions from sales of the Company’s products and travel and entertainment costs of approximately $94,000, decreased office related expenses of approximately $99,000, decreased laboratory related costs of approximately $508,000 and decreased professional fees of approximately $277,000, which were partially offset by increased payroll and consulting fees of approximately $283,000 and increases in stock-based compensation costs to advisors, consultants and administrative staff totaling approximately $286,000.

Current wording

General and Administrative Expenses. General and administrative expenses for the nine months ended July 31, 2024 were $6,651,000, as compared to $8,297,000 for the nine months ended July 31, 2023, a decrease of $1,646,000 or 19.8%. The decrease in the general and administrative expenses for the nine months ended July 31, 2024, from the nine months ended July 31, 2023, was primarily the result of decreased research and development costs of approximately $803,000, decreased laboratory related costs of approximately $588,000, decreased commissions and travel costs of approximately $281,000, decreased marketing related costs of approximately $98,000 and decreased professional fees of approximately $379,000, which were partially offset by increased in stock-based compensation costs to advisors, consultants and administrative staff totaling approximately $341,000 and increased payroll and consulting fees of approximately $492,000 during the three months ended July 31, 2024, as compared to the three months ended July 31, 2023.

Previous wording

The decrease in research and development costs during the six months ended April 30, 2024, from the six months ended April 30, 2023 was principally the result of the Company’s completion of its Phase 1 trials during July 2023, and there being no other significant ongoing clinical trial costs incurred since that time. The decrease in laboratory related costs was principally the result of the Company’s sale of the Basalt laboratory facility in August 2023 and as a result, there were no associated costs associated with operating that facility during the six months ended April 30, 2024, as compared to the six months ended April 30, 2023. The decrease in professional fees was principally the result of reduced audit fees, tax preparation fees and legal fees during the six months ended April 30, 2024, as compared to the six months ended April 30, 2023. The increase in stock-based compensation costs during the six months ended April 30, 2024, as compared to the six months ended April 30, 2023 was principally the result of increased amortization of costs from shares and options issued to executives and advisors and options issued to employees and outside directors.

Current wording

The decrease in research and development costs during the nine months ended July 31, 2024, from the nine months ended July 31, 2023 was principally the result of the Company’s completion of its Phase 1 trials during July 2023, and there being no other significant ongoing clinical trial costs incurred since that time. The decrease in laboratory related costs was principally the result of the Company’s sale of the Basalt laboratory facility in August 2023 and as a result, there were no associated costs associated with operating that facility during the nine months ended July 31, 2024, as compared to the nine months ended July 31, 2023. The decrease in commissions and travel costs during the nine months ended July 31, 2024, as compared to the nine months ended July 31, 2023 was principally the result of a larger percentage of sales that were generated from lower priced products and sales through house accounts with much lower commission costs than paid to distributors and/or independent sales representatives. The decrease in professional fees was principally the result of reduced audit fees, tax preparation fees and legal fees during the nine months ended July 31, 2024, as compared to the nine months ended July 31, 2023.

Previous wording

Other income (expense). Other income for the six months ended April 30, 2024 was $334,000, as compared to other income of $0 for the six months ended April 30, 2023. The increase in other income was due to the abatement of IRS penalties of $93,000, settlement of insurance claims of $89,000, increases in commissions received from sales of Formulator products of $87,000 and increases in income from the settlement of liabilities of approximately $61,000 during the six months ended April 30, 2024, as compared to the six months ended April 30, 2023.

Current wording

Other income. Other income for the nine months ended July 31, 2024 was $558,000, as compared to other income of $0 for the nine months ended July 31, 2023. The increase in other income was due to the write-off of advances payable to an affiliate of a former executive of $221,000 resulting from the inability of the affiliate to enforce a claim to collect the advances as the period of statute of limitations had run, the abatement of IRS penalties of $93,000, the settlement of insurance claims of $89,000, the increases in commissions received from sales of Formulator products of $87,000 and the increases in income from the settlement of liabilities of approximately $61,000 during the nine months ended July 31, 2024.

Previous wording

Other expense for the six months ended April 30, 2024 was $47,000, as compared to other expense of $189,000 for the six months ended April 30, 2023. The decrease in other expense of $142,000 during the six months ended April 30, 2024, compared to the six months ended April 30, 2023, was principally the result of reduced amortization of loan discounts of approximately $117,000, reduced IRS interest and penalties of approximately 16,000, and reduced costs associated with changes in the fair value of a commitment fee of $19,000 related to a January 2022 $600,000 debt financing, during the six months ended April 30, 2024, as compared to the six months ended April 30, 2023, partially offset from increased interest expenses on debt obligations of $10,000 during the six months ended April 30, 2024, as compared to the six months ended April 30, 2023.

Current wording

Other expense for the nine months ended July 31, 2024 was $115,000, as compared to other expense of $360,000 for the nine months ended July 31, 2023. The decrease in other expense of $245,000 during the nine months ended July 31, 2024, compared to the nine months ended July 31, 2023, was principally the result of reduced amortization of loan discounts of approximately $266,000, reduced IRS interest and penalties of approximately 16,000, and reduced costs associated with changes in the fair value of a commitment fee of $19,000 related to a January 2022 $600,000 debt financing, during the nine months ended July 31, 2024, as compared to the nine months ended July 31, 2023, partially offset from increased interest expenses on debt obligations of $9,000 and from increases in the reserve against the carrying value of the Company’s investments in equity securities of $45,000 during the three months ended July 31, 2024, as compared to the three months ended July 31, 2023.

Previous wording

During the six months ended April 30, 2024, the Company used cash in operating activities of $990,000, as compared to $1,954,000 for the six months ended April 30, 2023, a decrease in cash used of $964,000. The decrease in cash used was primarily the result of a reduction in general and administrative expenses and other income (expense) after adjusting for non-cash related activities of $1,472,000 and increases in gross profit of $139,000 for the six months ended April 30, 2024, as compared to the six months ended April 30, 2023, partially offset by reductions in cash provided from changes in operating assets and liabilities of $647,000 for the six months ended April 30, 2024, as compared to the six months ended April 30, 2023.

Current wording

During the nine months ended July 31, 2024, the Company used cash in operating activities of $1,084,000, as compared to $2,418,000 for the nine months ended July 31, 2023, a decrease in cash used of $1,334,000. The decrease in cash used was primarily the result of a reduction in general and administrative expenses and other income (expense) after adjusting for non-cash related activities of $1,713,000 and increases in gross profit of $85,000 for the nine months ended July 31, 2024, as compared to the nine months ended July 31, 2023, partially offset by reductions in cash provided from changes in operating assets and liabilities of $465,000 for the nine months ended July 31, 2024, as compared to the nine months ended July 31, 2023.

Previous wording

The decrease in cash provided from changes in operating assets and liabilities was due to decreases in accounts payable and accrued expenses and prepaid expenses, partially offset from increases in deferred revenues during the six months ended April 30, 2024, as compared to the six months ended April 30, 2023. The reduction in general and administrative expenses and other oncome (expense) after adjusting for non-cash related activities was the result of reduced operating expenses associated with professional fees, payroll, consulting costs, research and laboratory related expenses during the six months ended April 30, 2024, as compared to the six months ended April 30, 2023.

Current wording

The decrease in cash provided from changes in operating assets and liabilities was due to decreases in accounts payable and accrued expenses and prepaid expenses, partially offset from increases in deferred revenues during the nine months ended July 31, 2024, as compared to the nine months ended July 31, 2023. The reduction in general and administrative expenses and other income (expense) after adjusting for non-cash related activities was the result of reduced operating expenses associated with professional fees, payroll, consulting costs, research and laboratory related expenses during the nine months ended July 31, 2024, as compared to the nine months ended July 31, 2023.

Previous wording

During the six months ended April 30, 2024, the Company did not have any investing activities, compared to cash used in investing activities of $116,000 for the six months ended April 30, 2023 a decrease in cash used from investing activities of $116,000. The decrease in cash used by investing activities was primarily due to the reduction of payments made in connection with the Company’s purchase of laboratory equipment and the decrease in investments from non-marketable securities of $100,000 during the six months ended April 30, 2024, as compared to the six months ended April 30, 2023.

Current wording

During the nine months ended July 31, 2024, the Company had cash used in investing activities of $45,000, compared to cash used in investing activities of $120,000 for the nine months ended July 31, 2023, a decrease in cash used from investing activities of $75,000. The decrease in cash used by investing activities was primarily due to the decrease in investments from non-marketable securities of $55,000 and the reduction of payments made in connection with the Company’s purchase of laboratory equipment of $20,000 during the nine months ended July 31, 2024, as compared to the nine months ended July 31, 2023.

Previous wording

During the six months ended April 30, 2024, the Company had cash used in financing activities of $20,000, as compared to cash used in financing activities of $552,000 for the six months ended April 30, 2023. The decrease in cash used in financing activities of $532,000 was due to the reduction in repayment of notes payable of $600,000, reductions in funds held in escrow for shares to be repurchased in connection with litigation of $500,000 and decreases in payments on finance leases of approximately $36,000, partially offset from decreases in proceeds from the sale of equity securities of $100,000 and decreases in proceeds from the issuance of promissory notes of $504,000 during the six months ended April 30, 2024, as compared to the six months ended April 30, 2023.

Current wording

The decrease in cash provided by financing activities of $104,000 was due to decreases in proceeds from the issuance of promissory notes of $504,000, partially offset from increases in proceeds from the sale of equity securities of $400,000 during the nine months ended July 31, 2024, as compared to the nine months ended July 31, 2023. The decrease in cash used in financing activities of $1,164,000 was due to the reduction in repayment of notes payable of $600,000, reductions in shares repurchased in connection with litigation of $500,000 and decreases in payments on finance leases of approximately $64,000.

Previous wording

The unaudited accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern. The Company has had limited revenues since its inception. The Company incurred net losses of $2,439,000 for the six months ended April 30, 2024 and used $990,000 of cash from operating activities during that period. In addition, the Company had a stockholders’ deficit of $1,700,000 at April 30, 2024. The Company had a working capital deficit of $2,203,000 at April 30, 2024.

Current wording

The unaudited accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern. The Company has had limited revenues since its inception. The Company incurred net losses of $3,451,000 for the nine months ended July 31, 2024 and used $1,084,000 of cash from operating activities during that period. In addition, the Company had a stockholders’ deficit of $1,422,000 at July 31, 2024. The Company had a working capital deficit of $1,909,000 at July 31, 2024.