Zeo ScientifiX, Inc.

Previous wording

The Company has recently developed and begun to distribute additional products that incorporate its proprietary ingredients for products to be used in topical aesthetic applications and is actively exploring further development of additional products to be used in other topical aesthetic applications. During November 2024, the Company announced that it was launching the first planned collaborative topical product with its affiliate Exotropin LLC; “ZEO HAIR GROW™ Powered By Exotropin™”.

Current wording

The Company has recently developed and begun to distribute additional products that incorporate its proprietary ingredients for products to be used in topical aesthetic applications and is actively exploring further development of additional products to be used in other topical aesthetic applications.

Previous 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.

Current wording

Revenues. Our revenues for the three months ended July 31, 2025 were $1,306,000, compared to revenues of $1,091,000 for the three months ended July 31, 2024. The increase in revenues during the three months ended July 31, 2025 of $215,000 or 19.7% from the three months ended July 31, 2024, was due to increases in revenues associated with its PPX™ service platform during the three months ended July 31, 2025, compared with the three months ended July 31, 2024, partially offset by decreases in revenues from the Company’s allogenic aesthetic biologic products sold during the three months ended July 31, 2025, compared with the three months ended July 31, 2024.

Previous 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.

Current wording

The Company attributes the net decrease in revenues from higher and lower concentration allogenic aesthetic biologic products sold during the three months ended July 31, 2025, compared to the three months ended July 31, 2024 due to additional product competition in the marketplace which attracted greater demand for the Company’s lower priced allogenic aesthetic biologic product offerings and lower demand for the Company’s higher priced allogenic aesthetic biologic product offerings during the three months ended July 31, 2025, compared with the three months ended July 31, 2024.

Previous 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.

Current wording

Cost of Revenues. Our cost of revenues for the three months ended July 31, 2025 was $228,000, as compared to cost of revenues of $176,000 for the three months ended July 31, 2024. The increase in the cost of revenues for the three months ended July 31, 2025 of $52,000 or 29.9%, from the three months ended July 31, 2024, was due to the increase of approximately $57,000 of cost of revenues associated with its PPX™ service platform during the three months ended July 31, 2025, compared with the three months ended July 31, 2024, partially offset by a decrease of approximately $5,000 in the costs of revenues for its allogenic aesthetic biologic products sold for the three months ended July 31, 2025, as compared to the three months ended July 31, 2024.

Previous wording

The increase in the cost of revenues associated with its PPX™ service platform during the three months ended April 30, 2025 as compared to the three months ended April 30, 2024 was the result of an increase in units sold partially offset from the reduction in the costs of revenues per unit sold.

Current wording

The increase in the cost of revenues associated with its PPX™ service platform was the result of an increase in units sold during the three months ended July 31, 2025, as compared to the three months ended July 31, 2024.

Previous wording

Gross Profit. Our gross profit for the three months ended April 30, 2025 was $893,000 (77.7% of revenues), as compared to gross profit of $847,000 (74.9% of revenues) for the three months ended April 30, 2024. The increase in gross profit during the three months ended April 30, 2025 of $46,000 (5.4%) was the result of increases in the gross margins received from sales of its PPX™ service platform, partially offset from reduced gross margins received from the sale of its allogenic aesthetic biologic products.

Current wording

Gross Profit. Our gross profit for the three months ended July 31, 2025 was $1,078,000 (82.5% of revenues), as compared to gross profit of $915,000 (83.9% of revenues) for the three months ended July 31, 2024. The increase in gross profit during the three months ended July 31, 2025 of $163,000 (17.7%) was the result of increases in the gross margins received from sales of its PPX™ service platform, partially offset from reduced gross margins received from the sale of its allogenic aesthetic biologic products.

Previous 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.

Current wording

In addition, the percentage of the Company’s revenues associated with its PPX™ service platform, which has a higher cost of revenues as compared to the Company’s allogenic aesthetic biologic product offerings, increased to 27.8% of revenues for the three months ended July 31, 2025, as compared with 14.4% of revenues for the three months ended July 31, 2024. The percentage of the Company’s revenues associated with its allogenic aesthetic biologic product decreased to 66.8% of revenues for the three months ended July 31, 2025, as compared with 82.0% of revenues for the three months ended July 31, 2024.

Previous 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.

Current wording

General and Administrative Expenses. General and administrative expenses for the three months ended July 31, 2025 were $3,149,000, as compared with $2,083,000 for the three months ended July 31, 2024, an increase of $1,066,000 or 51.0%. The increase in the general and administrative expenses for the three months ended July 31, 2025, from the three months ended July 31, 2024, was primarily the result of (a) increased stock-based compensation costs to advisors, consultants and administrative staff totaling approximately $959,000 and (b) increased professional fees of approximately $118,000 during the three months ended July 31, 2025, as compared to the three months ended July 31, 2024.

Previous 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.

Current wording

Other income. Other income for the three months ended July 31, 2025 was $22,000, as compared to other income of $224,000 for the three months ended July 31, 2024, a decrease of $202,000. The decrease in other income was principally due to a reduction in non-recurring income in connection with 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 that occurred during the three months ended July 31, 2024, partially offset from the increase in commissions received from sales of Exotropin products of approximately $18,000 during the three months ended July 31, 2025 as compared to the three months ended July 31, 2024.

Previous wording

Revenues. Our revenues for the six months ended April 30, 2025 were $2,239,000, compared to revenues of $2,285,000 for the six months ended April 30, 2024. The decrease in revenues during the six months ended April 30, 2025 of $46,000 (2.0%) from the six months ended April 30, 2024, was due to decreases in revenues from the Company’s allogenic aesthetic biologic products sold during the six months ended April 30, 2025, compared with the six months ended April 30, 2024, partially offset by increases in revenues associated with its PPX™ service platform during the six months ended April 30, 2025, compared with the six months ended April 30, 2024.

Current wording

Revenues. Our revenues for the nine months ended July 31, 2025 were $3,545,000, compared to revenues of $3,376,000 for the nine months ended July 31, 2024. The increase in revenues during the nine months ended July 31, 2025 of $169,000 (5.0%) from the nine months ended July 31, 2024, was due to increases in revenues associated with its PPX™ service platform during the nine months ended July 31, 2025, compared with the nine months ended July 31, 2024, partially offset by decreases in revenues from the Company’s allogenic aesthetic biologic products sold during the nine months ended July 31, 2025, compared with the nine months ended July 31, 2024.

Previous 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 six months ended April 30, 2025, as compared to the six months ended April 30, 2024 are presented below:

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 nine months ended July 31, 2025, as compared to the nine months ended July 31, 2024 are presented below:

Previous 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.

Current wording

The Company attributes the net decrease in revenues from higher and lower concentration allogenic aesthetic biologic products sold during the nine months ended July 31, 2025, compared to the nine months ended July 31, 2024 due to additional product competition in the marketplace which attracted greater demand for the Company’s lower priced allogenic aesthetic biologic product offerings and lower demand for the Company’s higher priced allogenic aesthetic biologic product offerings during the nine months ended July 31, 2025, compared with the nine months ended July 31, 2024.

Previous wording

Cost of Revenues. Our cost of revenues for the six months ended April 30, 2025 was $447,000, as compared to cost of revenues of $443,000 for the three months ended April 30, 2024. The slight increase in the cost of revenues for the six months ended April 30, 2025 from the six months ended April 30, 2024, was due to the decrease of approximately $76,000 in the costs of revenues for its allogenic aesthetic biologic products sold for the six months ended April 30, 2025, as compared to the six months ended April 30, 2024, partially offset from an increase of approximately $79,000 of cost of revenues associated with its PPX™ service platform during the six months ended April 30, 2025, compared with the six months ended April 30, 2024.

Current wording

Cost of Revenues. Our cost of revenues for the nine months ended July 31, 2025 was $675,000, as compared to cost of revenues of $619,000 for the nine months ended July 31, 2024. The increase in the cost of revenues for the nine months ended July 31, 2025 of $56,000 or 9.1%, from the nine months ended July 31, 2024, was due to the increase of approximately $136,000 of cost of revenues associated with its PPX™ service platform during the nine months ended July 31, 2025, compared with the nine months ended July 31, 2024, partially offset by a decrease of approximately $80,000 in the costs of revenues for its allogenic aesthetic biologic products sold for the nine months ended July 31, 2025, as compared to the nine months ended July 31, 2024.

Previous wording

The increase in the cost of revenues associated with its PPX™ service platform during the six months ended April 30, 2025 as compared to the six months ended April 30, 2024 was the result of an increase in units sold partially offset from the reduction in the costs of revenues per unit sold.

Current wording

The increase in the cost of revenues associated with its PPX™ service platform was the result of an increase in units sold during the nine months ended July 31, 2025, as compared to the nine months ended July 31, 2024.

Previous wording

Gross Profit. Our gross profit for the six months ended April 30, 2025 was $1,792,000 (80.0% of revenues), as compared to gross profit of $1,842,000 (80.6% of revenues) for the six months ended April 30, 2024. The decrease in gross profit during the six months ended April 30, 2025 of $50,000 (2.7%) was the result of reduced gross margins received from the sale of its allogenic aesthetic biologic products, partially offset by increases in the gross margins received from sales of its PPX™ service platform.

Current wording

Gross Profit. Our gross profit for the nine months ended July 31, 2025 was $2,870,000 (81.0% of revenues), as compared to gross profit of $2,757,000 (81.7% of revenues) for the nine months ended July 31, 2024. The increase in gross profit during the nine months ended July 31, 2025 of $113,000 (4.1%) was the result of increases in the gross margins received from sales of its PPX™ service platform, partially offset from reduced gross margins received from the sale of its allogenic aesthetic biologic products.

Previous wording

General and Administrative Expenses. General and administrative expenses for the six months ended April 30, 2025 were $4,439,000, as compared with $4,568,000 for the six months ended April 30, 2024, a decrease of $129,000 or 2.8%. The decrease in the general and administrative expenses for the six months ended April 30, 2025, from the six months ended April 30, 2024, was primarily the result of (a) decreased payroll and consulting fees of approximately $211,000, (b) decreased commissions and travel costs of approximately $207,000 and (c) decreased marketing related expenses of $22,000 during the six months ended April 30, 2025, as compared to the six months ended April 30, 2024, which were partially offset by (1) increased stock-based compensation costs to advisors, consultants and administrative staff totaling approximately $227,000, (2) increased laboratory related costs of approximately $74,000 and (3) increased professional fees of approximately $16,000 during the six months ended April 30, 2025, as compared to the six months ended April 30, 2024.

Current wording

General and Administrative Expenses. General and administrative expenses for the nine months ended July 31, 2025 were $7,588,000, as compared with $6,651,000 for the nine months ended July 31, 2024, an increase of $937,000 or 14.1%. The increase in the general and administrative expenses for the nine months ended July 31, 2025, from the nine months ended July 31, 2024, was primarily the result of 1) increased stock-based compensation costs to advisors, consultants and administrative staff totaling approximately $1,187,000, (2) increased laboratory related costs of approximately $57,000 and (3) increased professional fees of approximately $134,000 during the nine months ended July 31, 2025, as compared to the nine months ended July 31, 2024, which were partially offset by (a) decreased payroll and consulting fees of approximately $215,000 and (b) decreased commissions and travel costs of approximately $205,000 during the nine months ended July 31, 2025, as compared to the nine months ended July 31, 2024.

Previous wording

The decrease in commissions and travel costs during the three months ended April 30, 2025, as compared to the three months ended April 30, 2024, 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. The decrease in payroll related expenses during the three months ended April 30, 2025, from the three months ended April 30, 2024, was principally the result of the non-renewal of certain executive employment contracts in May 2024

Current wording

The decrease in commissions and travel costs during the nine months ended July 31, 2025, as compared to the nine months ended July 31, 2024, was principally the result of 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. The decrease in payroll related expenses during the nine months ended July 31, 2025, from the nine months ended July 31, 2024, was principally the result of the non-renewal of certain executive employment contracts in May 2024.

Previous 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.

Current wording

Other expense for the nine months ended July 31, 2025 was $66,000, as compared to other expense of $115,000 for the nine months ended July 31, 2024. The decrease in other expense of $49,000 was principally the result of the reduction of reserves recorded against the carrying value of the Company’s investments in equity securities of $45,000 during the nine months ended July 31, 2025, as compared to the nine months ended July 31, 2024, Other expense also consisted of interest expense and amortization of discounts associated with the Company’s convertible promissory notes outstanding which was mostly unchanged for the nine months ended July 31, 2025, as compared to the nine months ended July 31, 2024.

Previous 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.

Current wording

During the nine months ended July 31, 2025, the Company had cash used in operating activities of $335,000, as compared to cash used in operating activities of $1,084,000 for the nine months ended July 31, 2024, a decrease in cash used of $749,000. 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 $4,000 and increases in cash provided from changes in operating assets and liabilities of $642,000 for the nine months ended July 31, 2025, as compared to the nine months ended July 31, 2024, partially offset by increases in gross profit of $113,000 for the nine months ended July 31, 2025, as compared to the nine months ended July 31, 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 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.

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 nine months ended July 31, 2025, as compared to the nine months ended July 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 nine months ended July 31, 2025, as compared to the nine months ended July 31, 2024.

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 $2,634,000 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.

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 $4,706,000 for the nine months ended July 31, 2025 and used $335,000 of cash in operating activities during that period. In addition, the Company had a stockholders’ deficit of $2,314,000 at July 31, 2025.