CORRECTION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

12 Months Ended

Oct. 31, 2024

Accounting Changes and Error Corrections [Abstract]

CORRECTION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

NOTE 2 – CORRECTION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

In connection with the Company’s re-audit of the Company’s financial statements for the year ended October 31, 2023, the Company’s management identified corrections to the valuation of service stock issued during the year ended October 31, 2023 and the termination of the patent agreement entered into on January 24, 2023.   The corrections made are summarized as follows:

1. Stock Price Valuation Adjustment: The valuation of the stock price was adjusted from $0.001 to $0.23.

2. Stock-Based Compensation: There was an increase in stock-based compensation reflecting the revised valuation of stock.

3. Equity Adjustments: There was a corresponding increase in additional paid-in capital and an adjustment in the accumulated deficit to reflect the revised stock valuation.

4. Termination of Patent Purchase Agreement: On March 13, 2025, the Company and Donald Owens mutually agreed to terminate the Patent Purchase Agreement as of January 24, 2023. As part of the termination, the patents were returned to Mr. Owens, and the 5,000,000 shares of Series A Preferred Stock were canceled. The $82,500 value previously reported in intangible assets and additional paid-in capital was reversed, resulting in a reduction in intangible assets. Additionally, the related amortization expense of $3,176 and the issuance of Series A Preferred Stock were removed from the financial statements. A copy of the Termination Agreement was attached to the Company’s Form 10-K as Exhibit 10.27.

5. Expenses totaling $21,560, incurred during the fiscal year ended October 31, 2023, and paid subsequently, have been reclassified to accounts payable as of October 31, 2023. This adjustment ensures that financial obligations are accurately reported in the period in which they were incurred.

Impact of the Restatement

The impact of the restatement on the financial statements for the affected period is presented below. In addition to the below, the related notes to the financial statements have also been adjusted as appropriate to reflect the impact of the restatements.

The impact of the restatement on the line items within the previously reported Audited Balance Sheet for the year ended October 31, 2023, previously filed is as follows: 

Balance Sheet as of October 31, 2023	As Previously Reported			Adjustment			As Restated
ASSETS
Current Assets
Cash	$	235,159		$	—		$	235,159
Due from related party	$	56,392		$	—		$	56,392
Total Current Assets	$	291,551		$	—		$	291,551
Non-Current Assets
Property and equipment, net	$	767,938		$	—		$	767,938
Intangible assets, net	$	79,324		$	(79,324	)	$	—
Long term asset, net	$	103,821		$	—		$	103,821
Security deposits	$	100,000		$	—		$	100,000
Total Non-Current Assets	$	1,051,083		$	(79,324	)	$	971,759
TOTAL ASSETS	$	1,342,634		$	(79,324	)	$	1,263,310
LIABILITIES AND STOCKHOLDERS' DEFICIT
LIABILITIES
Current Liabilities
Accounts payable	$	925		$	21,560		$	22,485
Accrued interest payable	$	41,270		$	—		$	41,270
Lease liability	$	—		$	—		$	—
Payroll tax	$	17,640		$	—		$	17,640
Advances, related party	$	—		$	—		$	—
Customer deposits	$	—		$	—		$	—
Notes payable, related party	$	785,000		$	—		$	785,000
Total Current Liabilities	$	844,835		$	21,560		$	866,395
Non-Current Liability
Lease liability	$	—		$	—		$	—
Long term notes payable, related party	$	590,000		$	—		$	590,000
Total Non-Current Liability	$	590,000		$	—		$	590,000
Total Liabilities	$	1,434,835		$	21,560		$	1,456,395
STOCKHOLDERS’ DEFICIT
Series A, par value $0.001 per share	$	10,000		$	(5,000	)	$	5,000
Common stock, par value $0.001 per share	$	419,341		$	—		$	419,341
Common stock payable	$	32,251		$	—		$	32,251
Common stock subscription receivable	$	(23,750	)	$	—		$	(23,750	)
Additional paid-in capital	$	41,079,902		$	390,275		$	41,470,177
Accumulated deficit	$	(41,609,945	)	$	(486,159	)	$	(42,096,104	)
Total Stockholders’ Deficit	$	(92,201	)	$	—		$	(193,085	)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	1,342,634		$	79,324		$	1,263,310

The impact of the restatement on the line items within the previously reported Audited Statement of Operations for the year ended October 31, 2023, previously filed is as follows: 

Statement of Operations for the year ended October 31, 2023	As Previously Reported			Adjustment			As Restated
Revenue	$	13,000		$	—		$	13,000
Cost of goods sold	$	(5,885	)	$	—		$	(5,885	)
Gross Profit	$	7,115		$	—		$	7,115
Operating expenses
Advertising and marketing	$	3,000		$	—		$	3,000
General and administrative expenses	$	1,358,868		$	21,560		$	1,380,428
Stock based compensation	$	22,025		$	467,775		$	489,800
Depreciation and amortization	$	40,116		$	(3,176	)	$	36,940
Total Operating Expenses	$	1,424,009		$	486,159		$	1,910,168
Other Income (Expenses)
Interest income	$	2,104			—		$	2,104
Interest expense	$	(26,545	)		—		$	(26,545	)
Total Other (Expenses)	$	(24,441	)		—		$	(24,441	)
Loss from Operations	$	(1,441,335	)	$	(486,159	)	$	(1,927,494	)
Net Loss	$	(1,441,335	)	$	(486,159	)	$	(1,927,494	)
PER SHARE AMOUNTS
Basic and diluted net loss per share	$	(0.00	)	$	—		$	(0.00	)
Weighted average number of common shares outstanding - basic and diluted		352,447,298			—			352,447,298

The impact of the restatement on the line items within the previously reported Audited Statement of Changes in Stockholders’ Deficit for the year ended October 31, 2023, previously filed is as follows: 

Changes in Statement of Stockholders' Deficit for the year ended October 31, 2023	As Previously Reported			Adjustment			As Restated
Common stock based compensation	$	2,025		$	467,775		$	469,800
Additional paid in capital	$	41,079,902		$	390,275		$	41,470,177
Series A preferred issued pursuant to patent agreement, shares		10,000,000			(5,000,000	)		5,000,000
Series A preferred issued pursuant to patent agreement, amount	$	10,000		$	(5,000	)	$	5,000
Net loss for the year ended October 31, 2023	$	(1,441,335	)	$	(486,159	)	$	(1,927,494	)
Balance at October 31, 2023	$	(92,201	)	$	(100,884	)	$	(193,085	)

The impact of the restatement on the line items within the previously reported Audited Statement of Cash Flows for the year ended October 31, 2023, previously filed is as follows: 

Statement of Cash Flows for the year ended October 31, 2023	As Previously Reported			Adjustment			As Restated
Cash Flow from Operating Activities
Net loss	$	(1,441,335	)	$	(486,159	)	$	(1,927,494	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	$	40,116		$	(3,176	)	$	36,940
Stock-based compensation	$	22,025		$	467,775		$	489,800
Changes in operating assets and liabilities:
Decrease in due from related party	$	—		$	—		$	—
Increase in accounts payable	$	925		$	21,560		$	22,485
Increase in accrued payroll	$	—		$	—		$	—
Increase/(Decrease) in accrued interest payable	$	26,545		$	—		$	26,545
Payments of lease liabilities	$	—		$	—		$	—
(Decrease) increase in payroll taxes	$	17,640		$	—		$	17,640
Net Cash Used in Operating Activities	$	(1,334,084	)	$	—		$	(1,334,084	)
Cash Flows from Financing Activities
Proceeds from related party advances	$	—		$	—		$	—
Proceeds from related party note payable	$	250,000		$	—		$	250,000
Proceeds from security deposits	$	(93,200	)	$	—		$	(93,200	)
Proceeds from customer deposits	$	—		$	—		$	—
Proceeds from sale of common stock subscription payable	$	—		$	—		$	—
Proceeds from sale of common stock	$	2,335,033		$	—		$	2,335,033
Repayment of related party note payable	$	(65,000	)	$	—		$	(65,000	)
Net Cash Provided by Financing Activities	$	2,426,833		$	—		$	2,426,833
Cash Flows from Investing Activities
Purchase of property and equipment	$	(804,878	)	$	—		$	(804,878	)
Purchase of long term asset	$	(103,821	)	$	—		$	(103,821	)
Net Cash Used in Investing Activities	$	(908,699	)	$	—		$	(908,699	)
Net increase (decrease) in cash	$	184,050		$	—		$	184,050
Cash at beginning of period	$	51,109		$	—		$	51,109
Cash at end of period	$	235,159		$	—		$	235,159
Supplemental Disclosure of Interest and Income Taxes Paid:
Interest paid during the period	$	—		$	—		$	—
Income taxes paid during the period	$	—		$	—		$	—
Supplemental Disclosure for Non-Cash Investing and Financing Activities:
Series A preferred stock issued pursuant to patent agreement	$	82,500		$	(82,500	)	$	—
Common stock issued for conversion of debt	$	20,000		$	—		$	20,000