Zeo ScientifiX, Inc.

Previous wording

To date, the Company has obtained certain Investigational New Drug (“IND”), emergency IND (“eIND”) approvals from the FDA, including applicable Institutional Review Board (“IRB”) approvals which authorized the Company to commence clinical trials or treatments in connection with the use of Zofin™ and related treatment protocols. The Company is pursuing efforts to complete its already approved clinical studies as well as obtaining approval to commence additional studies for other specific indications it has identified that the use of its products will provide more favorable and desired health related benefits for patients seeking alternative treatment options than are currently available. The ability of the Company to succeed in these efforts is subject to among other things, the Company having sufficient available working capital to fund the substantial costs of completing clinical trials, which the Company currently does not have, and ultimately, obtaining approval from the FDA.

Current wording

To date, the Company has obtained certain Investigational New Drug (“IND”), emergency IND (“eIND”) approvals from the FDA, including applicable Institutional Review Board (“IRB”) approvals which authorized the Company to commence clinical trials or treatments in connection with the use of Zofin™ and PPX™ and related treatment protocols. The Company is pursuing efforts to complete its already approved clinical studies as well as obtaining approval to commence additional studies for other specific indications it has identified that the use of its products will provide more favorable and desired health related benefits for patients seeking alternative treatment options than are currently available. The ability of the Company to succeed in these efforts is subject to among other things, the Company having sufficient available working capital to fund the substantial costs of completing clinical trials, which the Company currently does not have, and ultimately, obtaining approval from the FDA.

Previous wording

Revenues. Our revenues for the three months ended January 31, 2025 were $1,090,000, compared to revenues of $1,154,000 for the three months ended January 31, 2024. The decrease in revenues during the three months ended January 31, 2025 of $64,000 or 5.5% from the three months ended January 31, 2024, was primarily the result of a decrease of approximately 22.2% (approximately $245,000) in the units sold of the Company’s biologic products sold during the three months ended January 31, 2025, compared with the three months ended January 31, 2024, partially offset by an increase of approximately 1.0% (approximately $8,000) in the average sales prices for the high concentration biologic products sold during the three months ended January 31, 2025, compared with the three months ended January 31, 2024 and an increase of approximately 285.8% (approximately $173,000) of revenues associated with its PPX™ service platform during the three months ended January 31, 2025, compared with the three months ended January 31, 2024.

Current wording

Revenues. Our revenues for the three months ended April 30, 2025 were $1,149,000, compared to revenues of $1,131,000 for the three months ended April 30, 2024. The small increase in revenues during the three months ended April 30, 2025 of $18,000 or 1.6% from the three months ended April 30, 2024, was due to increases in revenues associated with its PPX™ service platform during the three months ended April 30, 2025, compared with the three months ended April 30, 2024, partially offset by decreases in revenues from the Company’s allogenic aesthetic biologic products sold during the three months ended April 30, 2025, compared with the three months ended April 30, 2024.

Previous wording

The percentage of overall unit sales of the Company’s higher concentration biologic product offerings decreased to 35.2% from 62.4% and increased to 64.8% from 37.6% for the Company’s lower concentration aesthetic biologic product offerings, respectively, for the three months ended January 31, 2025, as compared to the three months ended January 31, 2024.

Current wording

The revenues and percentage of overall unit sales derived from the Company’s higher concentration allogenic aesthetic biologic product offerings, lower concentration allogenic aesthetic biologic product offerings and its PPX™ service platform for the three months ended April 30, 2025, as compared to the three months ended April 30, 2024 are presented below:

Previous wording

The Company partially attributes the decrease in the units sold of the Company’s biologic products sold during the three months ended January 31, 2025, compared to the three months ended January 31, 2024 due to additional product competition in the marketplace and ongoing uncertainties surrounding the United States economy.

Current wording

The Company attributes the decrease in revenues from higher and lower concentration allogenic aesthetic biologic products sold during the three months ended April 30, 2025, compared to the three months ended April 30, 2024 due to additional product competition in the marketplace and ongoing uncertainties surrounding the United States economy which attracted greater demand for the Company’s lower priced allogenic aesthetic biologic product offerings.

Previous wording

Cost of Revenues. Our cost of revenues for the three months ended January 31, 2025 was $191,000, as compared to cost of revenues of $159,000 for the three months ended January 31, 2024. The increase in the cost of revenues for the three months ended January 31, 2025 of $32,000 or 19.9%, from the three months ended January 31, 2024, was due to the increase of approximately $46,000 of cost of revenues associated with its PPX™ service platform during the three months ended January 31, 2025, compared with the three months ended January 31, 2024 and an increase of approximately 11.6% (approximately $13,000) in the average cost of revenues for the high concentration biologic products for the three months ended January 31, 2025, as compared to the three months ended January 31, 2024, partially offset from the decrease of approximately 22.2% (approximately $28,000) in the overall unit sales of its high concentration biologic products for the three months ended January 31, 2025, as compared to the three months ended January 31, 2024.

Current wording

Cost of Revenues. Our cost of revenues for the three months ended April 30, 2025 was $256,000, as compared to cost of revenues of $284,000 for the three months ended April 30, 2024. The decrease in the cost of revenues for the three months ended April 30, 2025 of $28,000 or 9.9%, from the three months ended April 30, 2024, was due to the decrease of approximately $61,000 in the costs of revenues for its allogenic aesthetic biologic products sold for the three months ended April 30, 2025, as compared to the three months ended April 30, 2024, partially offset from an increase of approximately $33,000 of cost of revenues associated with its PPX™ service platform during the three months ended April 30, 2025, compared with the three months ended April 30, 2024.

Previous wording

Gross Profit. Our gross profit for the three months ended January 31, 2025 was $899,000 (82.5% of revenues), as compared to gross profit of $995,000 (86.2% of revenues) for the three months ended January 31, 2024. The decrease in gross profit during the three months ended January 31, 2025 of $96,000 (9.6%) was the result of decreases in the sales of high concentration biologic products sold, partially offset from the increases in the sales of its PPX™ service platform during the three months ended January 31, 2025, compared to the three months ended January 31, 2024. In addition, the percentage of the Company’s revenues associated with its PPX™ service platform, which has a lower gross margin percentage as compared to the Company’s high concentration biologic product offerings, increased to 21.4% of revenues for the three months ended January 31, 2025, as compared with 5.2% of revenues for the three months ended January 31, 2024.

Current wording

In addition, the percentage of the Company’s revenues associated with its PPX™ service platform, which has a lower gross margin percentage as compared to the Company’s allogenic aesthetic biologic product offerings, increased to 24.5% of revenues for the three months ended April 30, 2025, as compared with 9.6% of revenues for the three months ended April 30, 2024. The percentage of the Company’s revenues associated with its allogenic aesthetic biologic product decreased to 70.3% of revenues for the three months ended April 30, 2025, as compared with 84.1% of revenues for the three months ended April 30, 2024.

Previous wording

General and Administrative Expenses. General and administrative expenses for the three months ended January 31, 2025 were $2,152,000, as compared with $2,157,000 for the three months ended January 31, 2024, a decrease of $5,000 or 0.2%. The decrease in the general and administrative expenses for the three months ended January 31, 2025, from the three months ended January 31, 2024, was primarily the result of decreased payroll and consulting fees of approximately $114,000, decreased commissions and travel costs of approximately $150,000, decreased marketing related expenses of $16,000, decreased research and development costs of approximately $9,000 and decreased office and insurance related expenses of approximately $45,000 during the three months ended January 31, 2025, as compared to the three months ended January 31, 2024, which were partially offset by increased stock-based compensation costs to advisors, consultants and administrative staff totaling approximately $318,000 and increased laboratory related costs of approximately $11,000 during the three months ended January 31, 2025, as compared to the three months ended January 31, 2024.

Current wording

General and Administrative Expenses. General and administrative expenses for the three months ended April 30, 2025 were $2,287,000, as compared with $2,411,000 for the three months ended April 30, 2024, a decrease of $124,000 or 5.1%. The decrease in the general and administrative expenses for the three months ended April 30, 2025, from the three months ended April 30, 2024, was primarily the result of (a) decreased payroll and consulting fees of approximately $97,000, (b) decreased commissions and travel costs of approximately $56,000, (c) decreased marketing related expenses of $6,000 and (d) decreased stock-based compensation costs to advisors, consultants and administrative staff totaling approximately $91,000 during the three months ended April 30, 2025, as compared to the three months ended April 30, 2024, which were partially offset by (1) increased laboratory related costs of approximately $63,000, (2) increased professional fees of approximately $19,000 and (3) increased office and insurance related expenses of approximately $39,000 during the three months ended April 30, 2025, as compared to the three months ended April 30, 2024.

Previous wording

Other income. Other income for the three months ended January 31, 2025 was $32,000, as compared to other income of $149,000 for the three months ended January 31, 2024. The decrease in other income was principally due to non-recurring income in connection with an insurance claim of $89,000 and from the settlement of liabilities of approximately $24,000 which occurred during the three months ended January 31, 2024. The Company received other income of $32,000 and $34,000 during the three months ended January 31, 2025 and 2024, respectively, in connection with commissions received from sales of Exotropin products.

Current wording

Other income. Other income for the three months ended April 30, 2025 was $24,000, as compared to other income of $185,000 for the three months ended April 30, 2024, a decrease of $161,000. The decrease in other income was principally due to non-recurring income in connection with the settlement of liabilities of approximately $130,000 which occurred during the three months ended April 30, 2024 and the reduction in commissions received from sales of Exotropin products of approximately $34,000 during the three months ended April 30, 2025 as compared to the three months ended April 30, 2024.

Previous wording

Other expense for the three months ended January 31, 2025 was $22,000, as compared to other expense of $27,000 for the three months ended January 31, 2024. The decrease in other expense of $5,000 during the three months ended January 31, 2025, as compared to the three months ended January 31, 2024, was principally the result of reduced IRS interest and penalties.

Current wording

Other expense for the six months ended April 30, 2025 was $43,000, as compared to other expense of $47,000 for the six months ended April 30, 2024. The decrease in other expense of $4,000 during the six months ended April 30, 2025, as compared to the six months ended April 30, 2024, was principally the result of reduced IRS interest and penalties. Other expense also consisted of interest expense and amortization of discounts associated with the Company’s convertible promissory notes outstanding which was unchanged for the six months ended April 30, 2025, as compared to the six months ended April 30, 2024.

Previous wording

During the three months ended January 31, 2025, the Company had cash provided by operating activities of $65,000, as compared to cash used operating activities of $575,000 for the three months ended January 31, 2024, a decrease in cash used of $640,000. 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 $210,000 and increases in cash provided from changes in operating assets and liabilities of $526,000 for the three months ended January 31, 2025, as compared to the three months ended January 31, 2024, partially offset by decreases in gross profit of $96,000 for the three months ended January 31, 2025, as compared to the three months ended January 31, 2024.

Current wording

During the six months ended April 30, 2025, the Company had cash used in operating activities of $78,000, as compared to cash used in operating activities of $990,000 for the six months ended April 30, 2024, a decrease in cash used of $912,000. 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 $78,000 and increases in cash provided from changes in operating assets and liabilities of $882,000 for the six months ended April 30, 2025, as compared to the six months ended April 30, 2024, partially offset by decreases in gross profit of $50,000 for the six months ended April 30, 2025, as compared to the six months ended April 30, 2024.

Previous wording

The increase in cash provided from changes in operating assets and liabilities was due to increases in accounts payable and accrued expenses and decreases in accounts receivable and prepaid expenses, partially offset from decreases in deferred revenues during the three months ended January 31, 2025, as compared to the three months ended January 31, 2024. 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 payroll, consulting costs and commission expenses during the three months ended January 31, 2025, as compared to the three months ended January 31, 2024.

Current wording

The increase in cash provided from changes in operating assets and liabilities was due to increases in accounts payable and accrued expenses and decreases in accounts receivable and prepaid expenses, partially offset from decreases in deferred revenues during the six months ended April 30, 2025, as compared to the six months ended April 30, 2024. 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 payroll, consulting costs and commission expenses during the six months ended April 30, 2025, as compared to the six months ended April 30, 2024.

Previous wording

During the nine months ended January 31, 2025, the Company had cash used in financing activities of $2,000, as compared to cash used in financing activities of $9,000 for the three months ended January 31, 2024. The decrease in cash used in financing activities of $7,000 was due to the decreases in payments on finance leases.

Current wording

During the six months ended April 30, 2025, the Company had cash used in financing activities of $37,000, as compared to cash used in financing activities of $20,000 for the six months ended April 30, 2024. The increase in cash used in financing activities of $17,000 was due to the increases in payments on finance leases.

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 $1,243,000 for the three months ended January 31, 2025 and had cash of $65,000 provided from operating activities during that period. In addition, the Company had a stockholders’ deficit of $1,805,000 at January 31, 2025. The Company had a working capital deficit of $2,259,000 at January 31, 2025.

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 $2,634,000 for the six months ended April 30, 2025 and used $78,000 of cash in operating activities during that period. In addition, the Company had a stockholders’ deficit of $2,100,000 at April 30, 2025.