FINANCIAL STATEMENT RESTATEMENT

9 Months Ended

Jul. 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 July 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 and there was an increase in stock-based compensation reflecting the revised valuation of stock.
2. 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 and related stock-based compensation.
3. 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.
4. 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.
5. The restatement includes the initial recognition of right-of-use assets and corresponding lease liabilities on the balance sheet to properly reflect lease accounting in accordance with ASC 842.

These adjustments have been reflected in the restated financial statements for the quarter ended July 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 restatement.

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

Statement of Operations for the three months ended July 31, 2024	As Previously Reported			Adjustment			As Restated
Depreciation and amortization	$	49,964		$	(1,037	)	$	48,927
Total Operating Expenses	$	490,250		$	(1,037	)	$	489,213
Loss from Operations	$	(496,621	)	$	1,037		$	(495,584	)
Net Loss	$	(496,621	)	$	1,037		$	(495,584	)
PER SHARE AMOUNTS
Basic and diluted net loss per share	$	(0.00	)	$	—		$	(0.00	)
Weighted average number of common shares outstanding - basic and diluted		410,591,730			—			410,591,730

Statement of Operations for the nine months ended July 31, 2024	As Previously Reported			Adjustment			As Restated
Operating expenses
General and administrative expenses	$	1,440,197		$	(18,864	)	$	1,421,333
Depreciation and amortization	$	120,056		$	7,938		$	127,994
Total Operating Expenses	$	1,569,846		$	(10,926	)	$	1,558,920
Loss from Operations	$	(1,584,438	)	$	10,926		$	(1,573,512	)
Net Loss	$	(1,584,438	)	$	10,926		$	(1,573,512	)
PER SHARE AMOUNTS
Basic and diluted net loss per share	$	(0.00	)	$	—		$	(0.00	)
Weighted average number of common shares outstanding - basic and diluted		416,515,952			—			416,515,952

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

Changes in Statement of Stockholders' Deficit for the three months ended July 31, 2024	As Previously Reported			Adjustment			As Restated
Beginning Additional Paid-in Capital - Balance at April 30, 2024	$	41,291,591		$	390,275		$	41,681,866
Beginning Accumulated Deficit - Balance at April 30, 2024	$	(42,697,762	)	$	(476,270	)	$	(43,174,032	)
Beginning Total Stockholders' Deficit - Balance at April 30, 2024	$	(920,868	)	$	(90,995	)	$	(1,011,863	)
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 July 31, 2024	$	(496,621	)	$	1,037		$	(495,584	)
Ending Additional paid in capital - Balance at July 31, 2024	$	41,784,933		$	390,275		$	42,175,208
Ending Accumulated Deficit - Balance at July 31, 2024	$	(43,194,383	)	$	(475,233	)	$	(43,669,616	)
Ending Total Stockholders' Deficit - Balance at July 31, 2024	$	(984,711	)	$	(89,958	)	$	(1,074,669	)

Changes in Statement of Stockholders' Deficit for the nine months ended July 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 nine months ended July 31, 2024	$	1,584,438		$	(10,926	)	$	1,573,512
Ending Additional paid in capital - Balance at July 31, 2024	$	41,784,933		$	390,275		$	42,175,208
Ending Accumulated Deficit - Balance at July 31, 2024	$	(43,194,383	)	$	(475,233	)	$	(43,669,616	)
Ending Total Stockholders' Deficit - Balance at July 31, 2024	$	(984,711	)	$	(89,958	)	$	(1,074,669	)

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

Statement of Cash Flows for the nine months ended July 31, 2024	As Previously Reported			Adjustment			As Restated
Cash Flow from Operating Activities
Net loss	$	(1,584,438	)	$	10,926		$	(1,573,512	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	$	120,056		$	7,938		$	127,994
Changes in operating assets and liabilities:
Increase/(Decrease) in accounts payable	$	21,127		$	(21,560	)	$	(433	)
Operating lease ROU assets and lease liabilities, net	$	844		$	146		$	990
Net Cash Used in Operating Activities	$	(1,380,178	)	$	(2,550	)	$	(1,382,728	)
Cash Flows from Investing Activities
Purchase of property and equipment	$	(32,904	)	$	2,550		$	(30,354	)
Net Cash Used in Investing Activities	$	(368,676	)	$	2,550		$	(366,126	)
Net increase (decrease) in cash	$	(156,242	)	$	—		$	(156,242	)
Cash at beginning of period	$	235,159		$	—		$	235,159
Cash at end of period	$	78,917		$	—		$	78,917
Supplemental Disclosure for Non-Cash Investing and Financing Activities:
Record right-to-use asset and lease liability per ASC 842	$	(135,875	)	$	(31,874)		$	(167,749	)