Financial Analysis

5. Convertible Notes Payable to Related Parties Schedule of Convertible Notes Maturity Interest Rate April 30, 2026 July 31, 2025 Fiscal 2023 Notes (a) June 2026 7.55 % $ 1,015,000 $ 1,015,000 Fiscal 2023 Notes (a) June 2026 7.55 % $ 1,015,000 $ 1,015,000 Fiscal 2024 Notes (b) October 2026 to June 2027 7.81 % 1,785,000 1,785,000 Fiscal 2025 Notes (c) September 2027 to July 2028 6.79 %- 7.88 % 2,000,000 2,000,000 Fiscal 2026 Notes (d) October to February 2029 6.16 % - 6.68 % 970,000 5,770,000 4,800,000 Accrued interest 727,000 436,000 Total $ 6,497,000 $ 5,236,000 (a) In fiscal 2023, the Company entered into a Note Purchase Agreement (the 2023 Note Purchase Agreement) with certain accredited investors (Lenders) pursuant to which the Company issued the Lenders convertible promissory notes with an aggregate principal balance of $ 1,015,000 (the 2023 Private Placement). Messrs. Tom Y. Lee and Ivan Chen, each a member of the Companys Board invested $ 1,000,000 and $ 15,000 , respectively in the 2023 Private Placement, through affiliates or directly. As of April 30, 2026, $ 1,015,000 of principal was outstanding under the 2023 Private Placement, which amount is currently due. (b) In fiscal 2024, the Company entered into a Note Purchase Agreement (the 2024 Note Purchase Agreement) with certain accredited investors (Lenders) pursuant to which the Company issued the Lenders convertible promissory notes with an aggregate principal balance of $ 1,785,000 (the 2024 Private Placement). To …

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8. Related Party Transactions As of April 30, 2026 and April 30, 2025, accounts payable include $ 235,000 and $ 249,000 , respectively, in board fees due to officers and directors.

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3. Significant Accounting Policies Revenue Recognition The Company recognizes revenue in accordance with the Financial Accounting Standards Board or the FASB, Accounting Standards Codification or ASC, Topic 606, Revenue from Contracts with Customers or Topic 606. Under Topic 606, revenue is recognized at an amount that reflects the consideration to which it expects to be entitled in exchange for transferring goods or services to a customer. This principle is applied using the following 5-step process: 1. Identify the contract with the customer 2. Identify the performance obligations in the contract 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations in the contract 5. Recognize revenue when (or as) each performance obligation is satisfied Under Topic 606, the Company recognizes revenue when it satisfies a performance obligation by transferring control of the promised goods or services to its customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. The Companys technology platform is based on patented stabilized ionic silver, and its initial products contain silver dihydrogen citrate, or SDC. SDC is a broad-spectrum, non-toxic antimicrobial agent, which offers residual protection and formulates well with other compounds. The Company sells various configurations and dilutions of SDC direct to customers and through distributors. The Company currently offers PURE H …

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7. Stockholders Equity Restricted Stock Units The Company issues restricted stock unit awards, or RSUs, to key management and as compensation for services to consultants and others. The RSUs typically vest over a one 1 to three 3 -year period and carry a ten 10 -year term. Each RSU represents the right to receive one share of common stock, issuable at the time the RSU subsequently settles, as set forth in the Restricted Stock Unit Agreement. The Company determines that fair value of those awards at the date of grant, and amortize those awards as an expense over the vesting period of the award. The shares earned under the grant are usually issued when the award settles at the end of the term. As of April 30, 2026, all the RSUs had vested and 712,500 RSUs are issuable as of April 30, 2026. During the nine months ended April 30, 2025, the Company granted 30,000 RSUs to a third-party consultant for manufacturing services. The RSUs vested 100% on the date of grant. As a result, the Company recognized the entire fair value of $ 3,000 of compensation cost relating to the vesting of the RSUs. Stock Option Plans 2024 Equity Incentive Plan The Companys shareholders approved its 2024 Equity Incentive Plan, or the 2024 Plan, in February 2024, which has a share reserve of 10,000,000 shares of common stock that were registered under a Form S-8 filed with the SEC in August 2024. The 2024 Plan provides for the grant of incentive and non-qualified stock options, as well as other share-based p …

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9. Subsequent Events The Companys stockholders approved an amendment to the Companys Certificate of Incorporation to increase the number of authorized shares of common stock from 200,000,000 shares to 250,000,000 shares. The amendment became effective upon filing with the Secretary of State of the State of Delaware on May 27, 2026. …

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