UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period ended March 31, 2025

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________________ to __________________

Commission File number 000-24115

GEMAXEL INC. (formerly known as Worlds Inc.)

(Exact Name of Registrant as Specified in Its Charter)

Delaware	22-1848316
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

 4775 Collins Ave Apt 25088
    Miami Beach, FL  33140
(Address of Principal Executive Offices) 

 (917) 270-1187
(Registrant's Telephone Number, Including Area Code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [ ] No [X]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes [X] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

(Check One):

Large Accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☐	Smaller reporting company ☒
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [X] No [ ] 

As of May 8, 2026, 57,112,506 shares of the Issuer's Common Stock were outstanding.

Gemaxel Inc. 

Table of Contents 

PART I		FINANCIAL INFORMATION	Page
	Item 1.	Financial Statements
		Condensed Balance Sheets as of March 31, 2025 (unaudited) and December 31, 2024 (audited)	2
		Condensed Statements of Operations for the three months ended March 31, 2025 and 2024 (unaudited)	3
		Condensed Statements of Stockholders’ Deficit for the three months ended March 31, 2024 and 2025 (unaudited)	4
		Condensed Statements of Cash Flows for the three months ended March 31, 2025 and 2024 (unaudited)	5
		Condensed Notes to Financial Statements	6
	Item 2.	Management's Discussions and Analysis of Financial Condition and Results of Operations Forward Looking Statements	14
	Item 4.	Controls And Procedures	16
PART II		OTHER INFORMATION
	Item 1.	Legal Proceedings	17
	Item 1A.	Risk Factors	17
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	17
	Item 3.	Defaults Upon Senior Securities	17
	Item 4.	Mine Safety Disclosure	17
	Item 5.	Other Information	17
	Item 6.	Exhibits	18
		SIGNATURES	19

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

Gemaxel Inc.
Condensed Balance Sheets
March 31, 2025 and December 31, 2024
	Unaudited			Audited
	March 31, 2025			December 31, 2024
ASSETS:
Current Assets
Cash and cash equivalents	$	3,396		$	6,380
Prepaid expenses		6,563			8,750
Total Current Assets		9,959			15,130
Total assets	$	9,959		$	15,130
LIABILITIES AND STOCKHOLDERS' DEFICIT:
Current Liabilities
Accounts payable	$	833,228		$	809,928
Accrued expenses related party		384,765			316,765
Accrued expenses		1,784,333			1,768,703
Loan payable related party		4,500			—
Notes payable exceeding statute of limitations		773,279			773,279
Total Current Liabilities		3,780,105			3,668,675
Total Liabilities		3,780,105			3,668,675
Common stock (Par value $0.001 authorized 250,000,000 shares, issued and outstanding 57,112,506 at December 31, 2024 and March 31, 2025		57,113			57,113
Additional paid in capital		42,335,725			42,335,725
Common stock-warrants		1,206,913			1,206,913
Accumulated deficit		(47,369,897	)		(47,253,296	)
Total stockholders' deficit		(3,770,146	)		(3,653,545	)
Total Liabilities and stockholders' deficit	$	9,959		$	15,130
The accompanying notes are an integral part of these financial statements

2

Gemaxel Inc.
Condensed Statements of Operations
For the Three Months Ended March 31, 2025 and 2024
	Unaudited
	March 31,
		2025			2024
Revenue
Revenue	$	—			—
Total Revenue		—			—
Cost and Expenses
Cost of Revenue		—			—
Gross Profit/(Loss)		—			—
Selling, General & Admin.		37,365			26,765
Salaries and related		60,498			60,359
Operating loss		(97,863	)		(87,124	)
Interest expense		(18,738	)		(18,738	)
Net Income/(Loss)	$	(116,601	)		(105,862	)
Weighted Average Gain (Loss) per share, basic and diluted	$	(0.00	)	$	(0.00	)
Weighted Average Common Shares Outstanding, basic and diluted		57,112,506			57,112,506
The accompanying notes are an integral part of these financial statements

3

Gemaxel Inc.
Condensed Statement of Stockholders' Deficit
For the Three Months Ended March 31, 2024 and 2025 - Unaudited
			Additional	Common			Total
	Stock	Stock	Paid-in	Stock	Accumulated		Stockholders'
	Shares	Amount	Capital	Warrants	Deficit		Deficit
Balances, December 31, 2023	57,112,506	57,113	42,335,725	1,206,913	(46,741,914	)	(3,142,163	)
Net Loss	—	—	—	—	(105,862	)	(105,862	)
Balances, March 31, 2024	57,112,506	57,113	42,335,725	1,206,913	(46,847,776	)	(3,248,025	)
Balances, December 31, 2024	57,112,506	57,113	42,335,725	1,206,913	(47,253,294	)	(3,653,545	)
Net Loss	—	—	—	—	(116,601	)	(116,601	)
Balances, March 31, 2025	57,112,506	57,113	42,335,725	1,206,913	(47,369,897	)	(3,770,146	)
The accompanying notes are an integral part of these financial statements

4

Gemaxel Inc.
Condensed Statements of Cash Flows
Three Months Ended March 31, 2025 and 2024
	Unaudited			Unaudited
	3/31/2025			3/31/2024
Cash flows from operating activities:
Net Income/(loss)	$	(116,601	)	$	(105,862	)
Adjustments to reconcile net loss to net cash used in operating activities
Prepaid expenses		2,187			(6,000	)
Accounts payable and accrued expenses related party		68,000			10,000
Accounts payable and accrued expenses		38,930			12,251
Net cash (used in) operating activities:		(7,484	)		(89,611	)
Cash flows from financing activities
Loan payable related party		4,500			—
Net cash provided by financing activities		4,500			—
Net increase/(decrease) in cash and cash equivalents		(2,984	)		(89,611	)
Cash and cash equivalents, including restricted, beginning of year		6,380			244,856
Cash and cash equivalents, including restricted, end of period	$	3,396		$	155,245
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest	$	—		$	—
Income taxes	$	—		$	—
The accompanying notes are an integral part of these financial statements

5

Gemaxel Inc.

NOTES TO CONDENSED FINANCIAL STATEMENTS

Three Months Ended March 31, 2025

(Unaudited)

NOTE 1 – GOING CONCERN

As reflected in the accompanying financial statements, the Company has a working capital deficiency of $3,770,146 and a stockholder’s deficiency of $3,770,146 and used $7,484 of cash in operations for the three months ended March 31, 2025. This raises substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and implement its business plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Management believes that the actions presently being taken to obtain additional funding and implement its strategic plans provide the opportunity for the Company to continue as a going concern, although no assurance can be given that the Company will be successful. 

NOTE 2 – DESCRIPTION OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES

Description of Business

On March 26, 2026 the Company changed its name from Worlds Inc. to Gemaxel Inc. 

On May 16, 2011, the Company transferred, through a spin-off to its then wholly owned subsidiary, Worlds Online Inc. (currently called MariMed Inc.), the majority of its operations and related operational assets. The Company retained its patent portfolio and its legacy celebrity worlds and its collection of non-fungible tokens.

Basis of Presentation

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("US GAAP"). The Company has incurred significant losses since its inception and has had minimal revenues from operations. The Company will require substantial additional funds for its expansion of its legacy celebrity worlds and its collection of non-fungible tokens. There can be no assurance that the Company will be able to obtain the substantial additional capital resources to pursue its business plan or that any assumptions relating to its business plan will prove to be accurate. The Company has not been able to generate sufficient revenue or obtain sufficient financing which has had a material adverse effect on the Company, including requiring the Company to reduce operations. As the Company has focused its attention historically on increasing its patent portfolio and enforcing it, and more recently on its expansion of its legacy celebrity worlds and its collection of non-fungible tokens, the Company has been operating at a reduced capacity, with only one employee and using consultants to perform any additional work that may be required.

Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. 

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Cash and Cash Equivalents

Cash and cash equivalents include highly liquid money market instruments, which have original maturities of three months or less at the time of purchase. 

Revenue Recognition

Effective January 1, 2018, the Company adopted ASC 606. There was no impact in adopting ASC 606 as the Company has no revenue at this time. In the second quarter of 2011, the Company spun off its online businesses to MariMed Inc. The Company’s sources of revenue after the spinoff was expected to be from sublicenses of the patented technology by Worlds Online and any revenue that may be generated from enforcing its patents. Commencing in the first half of 2023, the Company expects that its revenues will come from its sales of it’s intellectual properties. The Company recognizes revenue by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied.

Advertising Expenses

Advertising costs are expensed as incurred. There were no advertising costs in the three months ended March 31, 2025 and 2024. 

Research and Development Costs

Research and development costs are charged to operations as incurred. There were no research and development costs in the three months ended March 31, 2025 and 2024.

Prepaid Expenses

Prepaid expenses is an annual fee paid to the OTC which is being amortized over the life of the subscription. The balance at March 31, 2025 is $6,563. The balance at December 31, 2024 is $8,750. 

Property and Equipment

Property and equipment are stated at cost. Depreciation is provided on a straight line basis over the estimated useful lives of the assets ranging from three to five years. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income. Maintenance and repairs are charged to expense in the period incurred.

Impairment of Long-Lived Assets

The Company evaluates the recoverability of its fixed assets and other assets in accordance with section 360-10-15 of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) for disclosures about Impairment or Disposal of Long-Lived Assets. Disclosure requires recognition of impairment of long-lived assets in the event the net book value of such assets exceeds its expected cash flows. If so, it is considered to be impaired and is written down to fair value, which is determined based on either discounted future cash flows or appraised values. The Company adopted the statement on inception. No impairments of these types of assets were recognized during the first quarter of 2025 and 2024. 

7

 Stock-Based Compensation

The Company accounts for stock-based compensation using the fair value method following the guidance set forth in section 718-10 of the FASB ASC for disclosure about Stock-Based Compensation. This section requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide services in exchange for the award (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service.

Income Taxes

The Company accounts for income taxes under Section 740-10-30 of the FASB ASC. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of operations in the period that includes the enactment date.

ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts.

Notes Payable

The Company has $773,279 in short term notes outstanding at March 31, 2025 and December 31, 2024. These are old notes payable for which the statute of limitations has passed and therefore the Company does not expect it will ever have to repay those notes.

Loan Payable Related Party

The Company received a loan during the quarter from its CEO to pay operating expenses. The balance at March 31, 2025 is $4,500.

Loss Per Share

Net loss per common share is computed pursuant to section 260-10-45 of the FASB ASC. Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. As of March 31, 2025, there were 1,600,000 options and no warrants outstanding and as of March 31, 2024, there were 16,600,000 options and no warrants outstanding whose effect is anti-dilutive and not included in diluted net loss per share for March 31, 2025 or for March 31, 2024. The options and warrants may dilute future earnings per share.

8

Commitments and Contingencies

The Company follows subtopic 450-20 of the FASB ASC to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows.

During 2000 the Company was involved in a lawsuit relating to unpaid consulting services. In April, 2001 a judgment against the Company was rendered for approximately $205,000. As of March 31, 2025, and December 31, 2024 the Company recorded a reserve of $205,000 for this lawsuit, which is included in accrued expenses in the accompanying balance sheets.

Risk and Uncertainties

The Company is subject to risks common to companies in the technology industries, including, but not limited to, litigation, development of new technological innovations and dependence on key personnel.

Off Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements.

Uncertain Tax Positions

The Company did not take any uncertain tax positions and had no adjustments to unrecognized income tax liabilities or benefits pursuant to the provisions of Section 740-10-25 for the year ended December 31, 2024.

Fair Value of Financial Instruments

The Company measures assets and liabilities at fair value based on an expected exit price as defined by the authoritative guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level. 

9

The following are the hierarchical levels of inputs to measure fair value:

•   Level 1 - Observable inputs that reflect quoted market prices in active markets for identical assets or liabilities.

•   Level 2 - Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

•   Level 3 - Unobservable inputs reflecting the Company’s assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

The carrying amounts of the Company’s financial assets and liabilities, such as cash, other receivables, accounts payable & accrued expenses, due to related party, notes payable and notes payables, approximate their fair values because of the short maturity of these instruments. The Company's convertible notes payable are measured at amortized cost.

Warrant and option expense was measured by using level 3 valuation.

Embedded Conversion Features 

The Company evaluates embedded conversion features within convertible debt under ASC 815 “Derivatives and Hedging” to determine whether the embedded conversion feature(s) should be bifurcated from the host instrument and accounted for as a derivative at fair value with changes in fair value recorded in earnings. If the conversion feature does not require derivative treatment under ASC 815, the instrument is evaluated under ASC 470-20 “Debt with Conversion and Other Options” for consideration of any beneficial conversion feature. 

Recent Accounting Pronouncements

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements, and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. 

10

NOTE 3 - NOTES PAYABLE   

Notes payable at March 31, 2025 consist of the following:
Unsecured note payable bearing 8% interest, entire balance of principal and unpaid interest due on demand	$	124,230
Unsecured note payable bearing 10% interest, entire balance of principal and unpaid interest due on demand	$	649,049
Total notes	$	773,279
2025 (9 months remaining)	$	773,279
2026	$	- 0 -
2027	$	- 0 -
2028	$	- 0 -
2029	$	- 0 -
	$	773,279

The Company accrued interest of $18,738 on the notes during the quarter ended March 31, 2025. 

NOTE 4 - EQUITY 

The Company did not issue any shares of common stock, options or warrants in the three months ending March 31, 2025 or in the three months ending March 31, 2024.   

		Stock Warrants and Options
Stock warrants/options outstanding and exercisable on March 31, 2025 are as follows
Exercise Price per Share			Shares Under Option/warrant		Remaining Life in Years
Outstanding
$	0.27			300,000		0.63
$	0.05			600,000		1.76
$	0.08			700,000		1.88
Total				1,600,000
Exercisable
$	0.27			300,000		0.63
$	0.05			600,000		1.76
$	0.08			700,000		1.88
Total				1,600,000

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NOTE 5 - COMMITMENTS AND CONTINGENCIES

The Company is committed to an employment agreement with its President and CEO, Thom Kidrin. The agreement, dated as of August 28, 2018, is for five years with a one-year renewal option held by Mr. Kidrin.  Prior to its expiration, Mr. Kidrin agreed to a second one-year extension of his employment agreement. The agreement provides for a base salary of $200,000, which increases 10% on September 1 of each year; a monthly car allowance of $500; an annual bonus equal to 2.5% of Pre-Tax Income (as defined in the agreement); an additional bonus as follows: $75,000, if Pre-Tax Income for the year is between 150% and 200% of the prior fiscal year’s Pre-Tax Income or (B) $100,000, if Pre-Tax Income for the year is between 201% and 250% of the prior fiscal year’s Pre-Tax Income or (C) $200,000, if Pre-Tax Income for the year is 251% or greater than the prior fiscal year’s Pre-Tax Income, but in no event shall this additional bonus exceed five (5%) percent of Pre-Tax Income for such year; payment of up to $10,000 in life insurance premiums; options to purchase 5 million shares of Worlds Inc. common stock at an exercise price of  $0.25 per share, 2 million of which vested on August 28, 2018, 1.5 million vested on August 28, 2019 and the remaining 1.5 million vested on August 28, 2020 and a death benefit of at least $2 million dollars; and a payment equal to 2.99 times his base amount (as defined in the agreement) in the event of a Change of Control (as defined in the agreement).  The agreement also provides that Mr. Kidrin can be terminated for cause (as defined in the agreement) and that he is subject to restrictive covenants for 12 months after termination.

NOTE 6 - RELATED PARTY TRANSACTIONS

During the three months ended March 31, 2024, Mr. Kidrin, the CEO of the Company, loaned the Company $4,500 to cover operating expenses. 

The balance in the accrued expense attributable to related parties is comprised of accrued salary due the CEO based on an employment agreement for $288,577, a $60,500 increase from the December 31, 2024 balance and an accrued consulting fee to the CFO in the amount of $96,188, an increase of $7,500 in the three months ended March 31, 2025 for a total of $384,765 at March 31, 2025.

The balance in the accrued expense attributable to related parties at December 31, 2024 is comprised of accrued salary due the CEO based on an employment agreement for $228,077 and an accrued consulting fee to the CFO in the amount of $88,688 for a total of $316,765 at December 31, 2024.

NOTE 7 – ACCRUED EXPENSES

Accrued expenses is comprised of (i) $384,765 owed to related parties, (ii) $205,000 related to a judgment against the Company relating to unpaid consulting services dating back to April of 2001, for which collection has not been sought in two decades so the Company does not expect it will ever have to pay it, (iii) $1,551,425 related to old accruals for which the statute of limitations has passed and therefore the Company does not expect it will ever have to repay those amounts, (iv) $10,128 related to accruals for recurring operating expenses, and (v) $17,780 related to a judgement requiring the Company to reimburse litigation fees.

NOTE 8 – PREPAID EXPENSES

Prepaid expenses is an annual fee paid to the OTC and being amortized over the life of the subscription. The balance at March 31, 2025 is $6,563. The balance at December 31, 2024 is $8,750. 

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NOTE 9 – SALE OF MARKETABLE SECURITIES

When Gemaxel Inc. spun off Worlds Online Inc. in January 2011, the Company retained 5,936,115 shares of common stock in Worlds Online Inc. (now named MariMed Inc.). Those shares were retained on the books of the Company with a book value of $0.

During the three months ended March 31, 2025, there were no sales of stock.

During the three months ended March 31, 2024, there were no sales of stock.

As of March 31, 2025, the Company still owns approximately 350,000 shares of MariMed Inc. common stock.

NOTE 10 – SUBSEQUENT EVENTS

In November of 2025 the CEO and Chairman of the Board, Thom Kidrin passed away. Director Leonard Toboroff was named acting CEO and Chairman of the Board of the Company. The Company changed its name to Gemaxel Inc. in the 2^nd quarter of 2026. The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the financial statements.  

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Item 2. Management's Discussions and Analysis of Financial Condition and Results of Operations

Forward Looking Statements

When used in this Form 10-Q and in other filings by the Company with the Commission, the words or phrases such as "anticipate," "believe," "could," "estimate," "expect," "intend," “hope”, "may," "plan," "predict," "project," "will" or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on any such forward looking statements, each of which speak only as of the date made. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The Company has no obligation to publicly release the result of any revisions which may be made to any forward-looking statements to reflect anticipated or unanticipated events or circumstances occurring after the date of such statements.

These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different. These factors include, but are not limited to, changes that may occur to general economic and business conditions resulting from changes in political, social and economic conditions (whether or not related to terrorism, war, pandemic, weather, environmental or other factors) in the jurisdictions in which we operate and changes to regulations that pertain to our operations.

The following discussion should be read in conjunction with the unaudited financial statements and related notes which are included under Item 1.

We do not undertake to update our forward-looking statements or risk factors to reflect future events or circumstances.

Overview

General

On May 16, 2011, we transferred, through a spin-off to our then wholly owned subsidiary, Worlds Online Inc. (currently named MariMed Inc.), the majority of our operations and related operational assets. We retained our patent portfolio. We also entered into a License Agreement with MariMed Inc. to sublicense patented technologies, which agreement has since expired.

At present, the Company’s anticipated sources of revenue will be from any revenue that may be generated from monetizing our collection of non-fungible tokens or the sale of other intellectual property that the Company owns.

Revenues

We generated no revenue during the quarter.

Expenses

We classify our expenses into two broad groups: 

  • Cost of revenues; and

  •  selling, general and administration.

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Liquidity and Capital Resources

We have had to limit our operations since mid- 2001 due to a lack of liquidity.  However, we were able to issue equity and convertible debt in the last few years and raise small amounts of capital from time to time that, prior to the spinoff, was used to enable us to begin upgrading our technology, develop new products and actively solicit additional business, and more recently to protect, increase and enforce our patent portfolio.  

Although we have been able to generate funds through our sale of shares of MariMed Inc., we continue to pursue additional sources of capital though we have no current arrangements with respect to, or sources of, additional financing at this time and there can be no assurance that any such financing will become available. If we cannot raise additional capital, form an alliance of some nature with another entity, raise more funds through the sale of shares of MariMed Inc., or start to generate sufficient revenues, we may be unable to purchase additional patents or otherwise expand operations through acquisition or otherwise.   

RESULTS OF OPERATIONS

Revenue was $0 for the three months ended March 31, 2025 and 2024.  Since the termination of our patent infringement lawsuits, the Company’s sources of revenue are anticipated to be from monetizing our collection of intellectual properties from our legacy celebrity virtual reality worlds.  We still need to raise a sufficient amount of capital to provide the resources required that would enable us to continue our business.

Three months ended March 31, 2025 compared to three months ended March 31, 2024

Selling general and administrative (SG&A) expenses increased by $10,600 to $37,365 for the three months ended March 31, 2025 from $26,765 for the three months ended March 31, 2024.

Salaries and related slightly increased by $139 to $60,498 from $60,359 for the three months ended March 31, 2025 and 2024, respectively. The CEO’s salary is based on the terms of his 2018 employment agreement and he is the Company’s only salaried employee. 

For the three months ended March 31, 2025, the Company had interest expense of $18,738. For the three months ended March 31, 2024 the Company had an interest expense of $18,738.

As a result of the foregoing, we realized a net loss of $116,601 for the three months ended March 31, 2025 compared to a net loss of $105,862 in the three months ended March 31, 2024. 

Liquidity and Capital Resources

At March 31, 2025, our cash and cash equivalents were $3,391. The Company was unable to raise funds during the three months ended March 31, 2025. The Company used $7,484 in cash to pay for operating expenses during the three months ended March 31, 2025.

At March 31, 2024, our cash and cash equivalents were $155,245. The Company was unable to raise funds during the three months ended March 31, 2024. The Company used $89,611 in cash to pay for operating expenses during the three months ended March 31, 2024.

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Historically, primary cash requirements have been used to fund the cost of operations and lawsuits, and patent enforcement, with additional funds having been used in connection with the exploration of new business lines.

We hope to raise additional funds to be used for further expansion of our legacy celebrity worlds and collection of non-fungible tokens. No assurances can be given that we will be able to raise any additional funds.  

Item 4. Controls And Procedures

As of March 31, 2026, we carried out an evaluation, under the supervision and with the participation of our management, including our Acting Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended). Based upon that evaluation, our Acting Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of March 31, 2025.

Changes in Internal Control Over Financial Reporting

During the quarter covered by this report there were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II OTHER INFORMATION

Item 1. Legal Proceedings

None

Item 1A. Risk Factors

We are not obligated to disclose our risk factors in this report, however, limited information regarding our risk factors appears in Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” under the caption “Forward-Looking Statements” contained in this Quarterly Report on Form 10-Q and in “Item 1A. RISK FACTORS” of our 2024 Annual Report on Form 10-K. There have been no material changes from the risk factors previously disclosed in our 2024 Annual Report on Form 10-K. 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

During the three months ended March 31, 2025 and 2024 we did not raise any funds through the sale of equity securities. 

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosure

Not applicable. 

Item 5. Other Information 

None.

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Item 6. Exhibits

3.1		Certificate of Incorporation (a)
3.2		By-Laws Restated as Amended (b)
31.1		Certification of Chief Executive Officer
31.2		Certification of Chief Financial Officer
32.1		Statement required by 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
32.2		Statement required by 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
101.INS* XBRL		Instance Document
101.	SCH*XBRL	Taxonomy Extension Schema
101.	CAL*XBRL	Taxonomy Extension Calculation Linkbase
101.	DEF*XBRL	Taxonomy Extension Definition Linkbase
101.	LAB*XBRL	Taxonomy Extension Label Linkbase
101.	PRE*XBRL	Taxonomy Extension Presentation Linkbase

(a)	Filed previously with the Proxy Statement Form DEF 14A on May, 19, 2010, as amended as described in Proxy Statements on Form DEF 14A filed on June 7, 2013 and May 17, 2016, and incorporated herein by reference.
(b)	Filed previously with the Proxy Statement Form DEF 14A on May, 19, 2010, and incorporated herein by reference.

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SIGNATURES

In accordance with the requirements of the Exchange Act, the Registrant caused this Report to be signed on its behalf by the undersigned thereto duly authorized.

Date: June 4, 2026

GEMAXEL INC.

By: /s/Leonard Toboroff

Leonard Toboroff

Acting Chief Executive Officer

By: /s/Christopher Ryan

Christopher Ryan

Chief Financial Officer

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