Financial Analysis

NOTE 10: COMMITMENTS AND CONTINGENCIES Legal Proceedings The Company is not presently a party to any legal proceedings, the resolution of which the Company believes would have a material adverse effect on its business, financial condition, operating results, or cash flows. However, legal proceedings are subject to inherent uncertainties, and an unfavorable outcome could include monetary damages, and excessive verdicts can result from litigation, and as such, could result in a material adverse impact on its business, financial position, results of operations, and/or cash flows.

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NOTE 5: NOTES PAYABLE The following table details the Companys notes payable as of April 30, 2026 and October 31, 2025, respectively: Schedule of notes payable Original Principal Balance as of Date of Note Principal April 30, October 31, Ref No. Issuance Balance 2026 2025 1* 7/25/2018 $ 10,000 $ 10,000 $ 2 3/12/2024 150,000 150,000 150,000 3* 3/18/2024 50,000 45,000 4 6/20/2024 400,000 400,000 5 6/20/2024 50,000 45,000 50,000 6 7/31/2024 500,000 435,000 7 7/31/2024 250,000 250,000 250,000 8 1/9/2025 50,000 50,000 50,000 9 2/3/2025 100,000 100,000 100,000 10* 4/16/2025 150,000 145,000 11* 4/23/2025 15,500 15,500 12 5/19/2025 250,000 152,958 13 6/8/2025 192,000 92,308 14 9/18/2025 63,000 50,400 15 9/30/2025 60,000 46,667 16 9/30/2025 60,000 46,368 17 9/30/2025 80,000 63,333 18** 9/30/2025 5,000 5,000 19 1/23/2026 100,000 Total $ 815,500 $ 1,887,034 * As of October 31, 2025, these noteholders were considered related parties. As of April 30, 2026, these noteholders are no longer considered related parties and their balances have been reclassified to notes payable. Their notes are described in Note 4 Notes Payable, Related Parties. ** On April 23, 2026, this note balance was transferred from a related party to a non-related party for no consideration. Note 2 On March 12, 2024, the Company executed a note payable agreement for $ 150,000 . The note originally matured on March 12, 2025 and carries an interest rate of 12 % per annum. On April 25, 2025, the Company executed an extensio …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 8: STOCK OPTIONS On August 19, 2025, the Company adopted the Helio Corporation 2025 Equity Incentive Plan (the 2025 Plan), which was also approved by the Companys stockholders on August 19, 2025. The 2025 Plan is intended to assist the Company in recruiting and retaining employees, officers, directors, and consultants, and to provide incentives tied to increases in the value of the Companys equity. Unless terminated earlier by the Board, the 2025 Plan will terminate on August 19, 2035, and no awards may be granted after that date. The 2025 Equity Plan limits the shares of common stock authorized to be awarded as stock awards to 2,382,352 shares as of April 30, 2026 and October 31, 2025, respectively. Employees are provided stock options vesting over a period of four years with a one year cliff. After one year, 25 % of the award size vests followed by 1/48 th of the award size for each month thereafter. On a case-by-case basis, options have been granted outright with no vest period. Due to the change-in-control transaction described in Note 1, there was a recapitalization for which the Companys stock options were adjusted for the new capital structure. The Company adjusted each of the granted options a 0.612 factor. During the three and six months ended April 30, 2026 and 2025, there were no stock options granted. Schedule of stock options granted Number of Shares Weighted Average Exercise Price ($) Weighted Average Remaining Term (Three months) Aggregate Intrinsic Value …

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NOTE 9: LEASES The Company leases its manufacturing facility and it is classified as an operating lease. The Company recognized right of use assets and lease liability pursuant to these leases. Leases with an initial term of 12 months or less or leases that are immaterial are not included on the condensed consolidated balance sheets. The lease liability was calculated at the commencement date of the lease by discounting the future payments using the Companys incremental borrowing rate of 10 %. The lease for the manufacturing facility commenced on June 1, 2022, and has a term of five years. For the first twelve months the monthly lease payments were $ 36,000 . The monthly lease payments are subject to an annual increase of 3%. Right-of-use lease asset is summarized below: Schedule of right-of-use lease asset and operating lease liability April 30, 2026 October 31, 2025 Manufacturing lease $ 1,788,571 $ 1,788,571 Less: accumulated amortization (1,389,270 ) (1,222,210 ) Right-of-use lease asset, net $ 399,301 $ 566,361 Operating lease liability is summarized below: April 30, 2026 October 31, 2025 Manufacturing lease $ 496,077 $ 701,275 Less: current portion (455,892 ) (477,956 ) Long term portion $ 40,185 $ 223,319 Future minimum lease payments required under this operating lease on an undiscounted cash flow basis as of April 30, 2026 were as follows: Schedule of future minimum lease payments Remainder of 2026 $ 241,928 2027 283,626 Total future minimum lease payments $ 525,554 …

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NOTE 6: CONVERTIBLE NOTES PAYABLE On August 26, 2025, the Company executed a note payable agreement for $ 275,000 from which $ 75,000 in fees were deducted for net proceeds of $ 200,000 . The note matures on August 26, 2026 and carries an interest rate of 10 % per annum. Interest on the note accrues and is paid at maturity along with principal, as specifically described in the note. In addition, the Company issued 25,000 unregistered shares of its common stock (the Commitment Shares), to the Buyer as additional consideration. The Note is convertible, upon certain events of default or missed payments, into shares of the Companys common stock at a price equal to 90% of the lowest closing price during the 10 trading days prior to conversion, subject to adjustment. Conversions are further limited by a beneficial ownership cap of 4.99% (which the Buyer may adjust up to 9.99% with 61 days notice). On February 24, 2026, the Company repaid $ 137,188 in principal and $ 13,562 in accrued interest. On March 2, 2026, the holder converted the remaining principal balance of $ 137,812 and $ 227 in accrued interest into 127,712 shares of common stock. The shares were valued at $ 279,689 , or $2.19 per share. This resulted in a loss on debt extinguishment in the amount of $ 141,650 . On December 19, 2025, the Company executed a note payable agreement for $ 65,205 from which $ 8,505 in fees were deducted for net proceeds of $ 56,700 . The note matures on October 15, 2026 and carries an interes …

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Recently Issued Accounting Pronouncements The Company does not believe that there are any new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

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NOTE 12: SEGMENT INFORMATION The Company conducts its business activities and reports financial results as one business segment. The presentation of financial results as one reportable segment is consistent with the way the Company operates its business and is consistent with the manner in which the Chief Operating Decision Maker (CODM) evaluates performance and makes resource and operating decisions for the business. The Companys CODM is the Chief Executive Officer. Furthermore, the Company notes that monitoring financial results as one reportable segment helps the CODM manage costs on a consolidated basis, consistent with the integrated nature of the operations. The CODM uses net loss, as reported on the Condensed Consolidated Statements of Operations, in evaluating the performance of the Company and determining how to allocate resources of the Company as a whole. As the CODM evaluates performance on a consolidated basis, all required financial segment information is included in the condensed consolidated financial statements. …

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NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to U.S. generally accepted accounting principles (U.S. GAAP) and reflect all adjustments which are, in the opinion of management, necessary to a fair presentation of the results of the interim periods presented, under the rules and regulations of the United States Securities and Exchange Commission (the SEC). These condensed consolidated financial statements include all adjustments consisting of only normal recurring adjustments, necessary for a fair statement of the results of the interim periods presented. The condensed consolidated financial statements include the accounts of Helio Corporation and its wholly-owned subsidiary Heliospace. The Companys condensed consolidated financial statements reflect the elimination of all significant inter-company accounts and transactions. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any subsequent quarter or for the entire year ending October 31, 2026. Certain information and note disclosures normally included in the Companys annual audited consolidated financial statements and accompanying notes prepared in accordance with U.S. GAAP have been condensed in, or omitted from, these interim financial statements. Accordingly, these unaudited condensed consolidated financial s …

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"NOTE 13: EQUITY Common Stock During the three months ending April 30, 2026, the Company issued the following common stock for services: 321,000 shares to consultants for services performed in lieu of cash totaling $ 33,540 ; 50,000 shares to its CFO as compensation totaling $ 31,892 ; and the Company issued 150,000 shares to Board members as compensation totaling $ 209,500 . During the three months ending January 31, 2026, the Company issued 3,000,000 shares to its CEO as compensation totaling $ 1,500,000 and 1,262,000 shares to a consultants in lieu of cash totaling $ 631,600 . On March 12, 2026, a convertible note holder received 263,198 shares of common stock in exchange for a cashless exercise of 300,000 warrants. Series A Preferred Stock On April 17, 2026, the Company designated 1,500,000 shares of Series A Convertible Preferred Stock (""Series A Preferred Stock""), par value $ 0.0001 per share, pursuant to a Certificate of Designation filed with the State of Florida. Each share of Series A Preferred Stock has a stated value of $ 1.00 per share. The Series A Preferred Stock ranks senior to the Companys common stock with respect to dividend rights and distributions upon liquidation, dissolution, or winding up of the Company. Holders are entitled to cumulative dividends at an annual rate of 10 % of the stated value, payable upon redemption, liquidation, or conversion. Upon the occurrence of certain events of default, the dividend rate increases to 22 %. In the event of li …

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NOTE 14: SUBSEQUENT EVENTS In preparing these condensed consolidated financial statements, management has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. Such events or transactions are described below as of the date these unaudited condensed consolidated financial statements were issued. The following subsequent events occurred after April 30, 2026, and prior to the filing of this Quarterly Report on Form 10-Q. Private Placement Memorandum Between May 1st and May 11th, 2026, the Company raised any additional $284,800 in proceeds in exchange for 149,409 shares of common stock in connection with the April 2026 Private Placement Memorandum. Series A Convertible Preferred Stock On May 8, 2026, the Company raised $175,000 through the sale of Series A Convertible Preferred Stock. Series B Convertible Preferred Stock On May 29, 2026, the Company raised $175,000 through the sale of Series B Convertible Preferred Stock. Convertible Note Payable Amendment The Company has a convertible note payable agreement for $250,000 dated July 31, 2024. This note was considered in default as of April 30, 2025. On June 13, 2026, the Company executed an agreement whereby the holder agreed not to pursue any default provisions in exchange for a payment plan and stock consideration. Upon execution of the agreement, the Company is obligated to pay the holder $20,000 and will pay monthly installments of $15,000 beginning Jul …

SubsequentEventsTextBlock · excerpt; the full note is in the filing