Financial Analysis

"Note 10 Commitments and Contingencies Leases The Company had a lease agreement in connection with its previous office and warehouse facility in California under an operating lease which expired in October 2019. On December 1, 2019, the Company signed an extension of the lease for 3 years. The rent was $7,567 per month for the first year and increased by a certain amount each year. In November 2022, the Company entered into an extension of the lease for a two-year term beginning December 1, 2022. The rent was $6,098 per month for the first year and increased by a certain amount the following year. Upon expiration of the lease on December 1, 2024, the Company did not renew the lease. On October 12, 2024, the Company entered into a lease in Beverly Hills, California for a term beginning November 1, 2024 and ending January 31, 2029. The base rent is $11,168 per month for the first twelve months and shall increase for each twelve-month period thereafter. The lease provides for rent abatement during months 2, 15, and 30. On September 10, 2024, the Company entered into a sublease in American Fork, Utah for a three-year term beginning October 1, 2024. The base rent was $0 for the first three months and $7,684 per month for the next nine months. The rent shall increase for each twelve-month period, thereafter. An additional amount of $1,210 shall be due each month for the additional overheads. The Company previously leased warehouse space in Utah under a month-to-month lease agreemen …

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Note 8 Notes Payable During the fiscal year ended May 31, 2020, a commercial bank granted to the Company a loan (the Loan) in the amount of $ 150,000 , which is administered under the authority and regulations of the U.S. Small Business Administration pursuant to the Economic Injury Disaster Loan Program (the EIDL) of the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act). The Loan, which is evidenced by a note dated May 18, 2020, bears interest at an annual rate of 3.75% and is payable in installments of $ 731 per month, beginning May 18, 2021 until May 18, 2050. The Company has to maintain a hazard insurance policy including fire, lightning, and extended coverage on all items used to secure this loan to at least 80% of the insurable value. Proceeds from loans granted under the CARES Act are intended to be used for payroll, costs to continue employee group health care benefits, rent, utilities, and certain other qualified costs (collectively, qualifying expenses). The Company used the loan proceeds for qualifying expenses. During the fiscal year ended May 31, 2022, the Company received a loan forgiveness for $ 10,000 and an additional $ 10,000 of borrowing under the program. The Company recorded interest expense related to the Loan, on the accompanying consolidated financial statements, of $ 1,435 and $ 1,271 , during the three months ended February 28, 2026 and February 28, 2025, respectively, and $ 4,022 and $ 2,567 , during the nine months ended February 2 …

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Note 11 Related Party Transactions The Companys Chairman and Chief Executive Officer, Jeff Toghraie, is the managing director of Intrepid Global Advisors (Intrepid). Intrepid has, from time to time, provided advances to the Company for working capital purposes and is paid consulting fees throughout the year. The Company recorded and paid approximately $ 50,000 and approximately $ 51,000 in consulting fees for the three months ended February 28, 2026 and February 28, 2025, respectively, and approximately $ 166,100 and approximately $ 178,000 for the nine months ended February 28, 2026 and February 28, 2025, respectively, related to consulting services provided by Intrepid. As of February 28, 2026, the Company had a payable to Intrepid of $ 169,203 for advances provided by Intrepid and as of May 31, 2025, an amount receivable from Intrepid of $ 222 related to an overpayment of advances made by Intrepid. During the nine months ended February 28, 2026, advances from Intrepid were $ 4,719,409 and repayments to Intrepid were $ 4,549,984 . During the nine months ended February 28, 2025, advances from Intrepid were $ 5,601,537 and repayments to Intrepid were $ 5,584,759 . Advances made from Intrepid are short-term in nature and non-interest bearing. The Companys Board Member, Chief Financial Officer, and Chief Operating Officer is the co-owner, Chairman and Chief Financial Officer of, and has a controlling interest in BZ Capital Strategies. The Company recorded and paid consulting fe …

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Note 13 Business Segment and Geographic Area Information Business Segments The Company operates in three reportable segments: Hearing Enhancement and Protection, Hair and Skin Care, and Marketing Services. The segments are determined based on the nature of the products and services provided and how the business is managed. On May 5, 2025, the Company incorporated a new wholly owned subsidiary, Sharper Vision Marketing Inc., which provides marketing services. Beginning in the three months ended February 28, 2026, the Company determined that this business meets the criteria for separate disclosure as a reportable segment due to increased activity and the availability of discrete financial information reviewed by the Chief Operating Decision Maker (CODM). Prior to this determination, the results of this business were included within All Other in the Companys segment reporting. The CODM is the Companys Chief Executive Officer. The CODM evaluates segment performance and allocates resources based primarily on a segment profit measure referred to as Segment non-cash operating income, which the Company has concluded is the measure of segment profitability. This non-GAAP measure is defined as operating income from segment operations before depreciation and amortization, stock-based compensation expense, and corporate expenses. Corporate expenses primarily include insurance, expenses related to operating as a public companyincluding fees paid to related parties for executive management …

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Note 2 Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). In the opinion of the management, all adjustments necessary to present fairly our financial position, results of operations, and cash flows as of February 28, 2026 and February 28, 2025, and for the periods then ended, have been made. Those adjustments consist of normal and recurring adjustments. Certain information and note disclosures normally included in our annual consolidated financial statements prepared in accordance with generally accepted accounting principles have been omitted. The unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Companys annual report on Form 10-K for the year ended May 31, 2025, filed on August 21, 2025. The results of operations for the three and nine months ended February 28, 2026, are not necessarily indicative of the results to be expected for the fiscal year ending May 31, 2026. The unaudited consolidated financial statements include the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated upon consolidation. Use of estimates The preparation of the unaudited consolidated financial s …

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Note 9 Stockholders Equity Shares Authorized As of February 28, 2026 and May 31, 2025, the authorized capital of the Company consisted of 15,000,000 shares of common stock, par value $ 0.0001 per share and 28,000,000 shares of preferred stock, par value $ 0.0001 per share. On April 8, 2025, the Board of Directors approved, and the holders of a majority of the Companys outstanding voting securities approved by written consent, an amendment to the Companys Certificate of Incorporation to reduce the authorized shares of common stock from 450,000,000 to 15,000,000, authorized shares of preferred stock from 300,000,000 to 28,000,000, and designated shares of Series A Preferred Stock from 250,000,000 to 27,773,500. The par value and rights of the shares remained unchanged. The amendment became effective upon filing with the Delaware Secretary of State on May 19, 2025. Preferred Stock The preferred stock may be issued from time to time in one or more series. The Board is expressly authorized to provide for the issuance of all or any of the shares of the preferred stock in one or more series, and to fix the number of shares and to determine or alter, for each such series, such voting powers, full or limited, or no voting powers and such designations, preferences, and relative, participating, optional, or other rights and such qualifications, limitations, or restrictions thereof, as shall be stated and expressed in the resolution adopted by the Board providing the issuance of such sha …

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