FINANCIAL STATEMENT RESTATEMENT

3 Months Ended

Jan. 31, 2025

Accounting Changes and Error Corrections [Abstract]

FINANCIAL STATEMENT RESTATEMENT

NOTE 2 –FINANCIAL STATEMENT RESTATEMENT

In connection with the Company’s re-audit of its financial statements for the year ended October 31, 2023, the Company’s management, in consultation with its independent registered public accounting firm, 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 that impact the condensed financial statements for the quarter ended January 31, 2024, 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.
5. Reclassification of Expenses: Expenses 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.

These adjustments have been reflected in the restated financial statements for the quarter ended January 31, 2024.

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 Condensed Unaudited Balance Sheet for the quarter ended January 31, 2024, previously filed is as follows: 

Balance Sheet as of January 31, 2024	As Previously Reported			Adjustment			As Restated
ASSETS
Current Assets
Cash	$	68,869		$	(67	)	$	68,802
Due from related party	$	56,392		$	—		$	56,392
Total Current Assets	$	125,261		$	(67	)	$	125,194
Non-Current Assets
Property and equipment, net	$	866,077		$	(2,550	)	$	863,527
Intangible assets, net	$	78,287		$	(78,287	)	$	—
Long term asset, net	$	136,725		$	(4,190	)	$	132,535
Right-of-use asset	$	—			82,556			82,556
Security deposits	$	—			—			—
Total Non-Current Assets	$	1,081,089		$	(2,471	)	$	1,078,618
TOTAL ASSETS	$	1,206,350		$	(2,538	)	$	1,203,812
LIABILITIES AND STOCKHOLDERS' DEFICIT
LIABILITIES
Current Liabilities
Accounts payable	$	4,144		$	—		$	4,144
Accrued interest payable	$	48,201		$	—		$	48,201
Lease liability	$	—		$	27,284		$	27,284
Payroll tax	$	2,838		$	—		$	2,838
Advances, related party	$	265,585		$	—		$	265,585
Notes payable, related party	$	785,000		$	—		$	785,000
Total Current Liabilities	$	1,105,768		$	27,284		$	1,133,052
Non-Current Liability
Lease Liability		—			55,418			55,418
Long term notes payable, related party	$	590,000		$	—		$	590,000
Total Non-Current Liability	$	590,000		$	55,418		$	645,418
Total Liabilities	$	1,695,768		$	82,702		$	1,778,470
STOCKHOLDERS’ DEFICIT
Series A, par value $0.001 per share	$	10,000		$	(5,000	)	$	5,000
Common stock, par value $0.001 per share	$	419,433		$	—		$	419,433
Common stock payable	$	66,250		$	—		$	66,250
Common stock subscription receivable	$	(23,750	)	$	—		$	(23,750	)
Additional paid-in capital	$	41,171,311		$	390,275		$	41,561,586
Accumulated deficit	$	(42,132,662	)	$	(470,515	)	$	(42,603,177	)
Total Stockholders’ Deficit	$	(489,418	)	$	(85,240	)	$	(574,658	)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	1,206,350		$	(2,538	)	$	1,203,812

The impact of the restatement on the line items within the previously reported Condensed Unaudited Statement of Operations for the three months ended January 31, 2024, previously filed is as follows: 

Statement of Operations for the three months ended January 31, 2024	As Previously Reported			Adjustment			As Restated
Revenue	$	—		$	—		$	—
Cost of goods sold	$	—		$	—		$	—
Gross Profit	$	—		$	—		$	—
Operating expenses
General and administrative expenses	$	482,869		$	(18,864	)	$	464,005
Depreciation and amortization	$	33,283		$	3,153		$	36,436
Total Operating Expenses	$	516,152		$	(15,711	)	$	500,441
Other Income (Expenses)
Interest income	$	367			(67	)	$	300
Interest expense	$	(6,932	)		—		$	(6,932	)
Total Other (Expenses)	$	(6,565	)		(67	)	$	(6,632	)
Loss from Operations	$	(522,717	)	$	15,644		$	(507,073	)
Net Loss	$	(522,717	)	$	15,644		$	(507,073	)
PER SHARE AMOUNTS
Basic and diluted net loss per share	$	(0.00	)	$	—		$	(0.00	)
Weighted average number of common shares outstanding - basic and diluted		419,389,590			—			419,389,590

 The impact of the restatement on the line items within the previously reported Condensed Unaudited Statement of Changes in Stockholders’ Deficit for the three months ended January 31, 2024, previously filed is as follows: 

Changes in Statement of Stockholders' Deficit for the three months ended January 31, 2024	As Previously Reported			Adjustment			As Restated
Beginning Additional Paid-in Capital - Balance at October 31, 2023	$	41,079,902		$	390,275		$	41,470,177
Beginning Accumulated Deficit - Balance at October 31, 2023	$	(41,609,945	)	$	(486,159	)	$	(42,096,104	)
Beginning Total Stockholders Deficit - Balance at October 31, 2023	$	(92,201	)		(100,884	)		(193,085	)
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 three months ended January 31, 2024	$	(522,717	)	$	15,644		$	(507,073	)
Ending Additional paid in capital - - Balance at January 31, 2024	$	41,171,311		$	390,275		$	41,561,586
Ending Accumulated Deficit - Balance at January 31, 2024	$	(42,132,662	)	$	(470,515	)	$	(42,603,177	)
Ending Total Stockholders Deficit - Balance at January 31, 2024	$	(489,418	)	$	(85,240	)	$	(574,658	)

The impact of the restatement on the line items within the previously reported Condensed Unaudited Statement of Cash Flows for the three months ended January 31, 2024, previously filed is as follows: 

Statement of Cash Flows for the three months ended January 31, 2024	As Previously Reported			Adjustment			As Restated
Cash Flow from Operating Activities
Net loss	$	(522,717	)	$	15,644		$	(507,073	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	$	33,283		$	3,153		$	36,436
Amortization of right-to-use asset	$	—			4,548			4,548
Changes in operating assets and liabilities:
Increase/(Decrease) in accounts payable	$	3,219		$	(21,560	)	$	(18,341	)
Increase/(Decrease) in accrued interest payable	$	6,931		$	—		$	6,931
Increase in lease vendor payable	$	—			—			—
(Increase) of right-to-use asset	$	—			(87,104	)		(87,104	)
Increase (Decrease) in lease liabilities	$	—			82,702			82,702
Increase (Decrease) in payroll taxes	$	(14,802	)		—			(14,802	)
Net Cash Used in Operating Activities	$	(494,086	)	$	(2,617	)	$	(496,703	)
Cash Flows from Financing Activities
Proceeds from related party advances	$	265,585		$	—		$	265,585
Proceeds from security deposits	$	100,000		$	—		$	100,000
Proceeds from sale of common stock subscription payable	$	33,999		$	—		$	33,999
Proceeds from sale of common stock	$	91,501		$	—		$	91,501
Net Cash Provided by Financing Activities	$	491,085		$	—		$	491,085
Cash Flows from Investing Activities
Purchase of property and equipment	$	(130,385	)	$	2,550		$	(127,835	)
Purchase of long term asset	$	(32,904	)	$	—		$	(32,904	)
Net Cash Used in Investing Activities	$	(163,289	)	$	2,550		$	(160,739	)
Net increase (decrease) in cash	$	(166,290	)	$	(67	)	$	(166,357	)
Cash at beginning of period	$	235,159		$	—		$	235,159
Cash at end of period	$	68,869		$	(67	)	$	68,802
Supplemental Disclosure for Non-Cash Investing and Financing Activities:
Record right-to-use asset and lease liability per ASC 842	$	—		$	87,104		$	87,104