v3.26.1
NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
6 Months Ended
Apr. 30, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation

Basis of Presentation

 

The interim consolidated financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures included herein are adequate to make the information presented not misleading. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended October 31, 2025, as filed with the SEC (“Form 10-K”). Unless otherwise noted in this Interim Report, there have been no material changes to the disclosures contained in the notes to the audited financial statements for the year ended October 31, 2025, contained in the Form 10-K.

 

The Consolidated Balance Sheet as of October 31, 2025, was derived from the audited financial statements included in the Form 10-K. In management’s opinion, the unaudited interim Consolidated Balance Sheet, Statements of Operations, Statements of Changes in Shareholders’ Deficit and Statements of Cash Flows, contained herein, reflect all adjustments, consisting solely of normal recurring items, which are necessary for the fair presentation of the Company’s financial position, results of operations and cash flows on a basis consistent with that of the Company’s prior audited consolidated financial statements. The results of operations for the interim periods may not be indicative of results to be expected for the full fiscal year. Certain prior period amounts were reclassified to conform to the current presentation on the Consolidated Financial Statements.

 

The accompanying consolidated financial statements are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

 

Basis of Consolidation

Basis of Consolidation

 

The consolidated financial statements include the operations of the Company and its wholly owned subsidiary, InfiniVive MD, LLC (“InfiniVive”).

 

Reclassifications

Reclassifications

 

Certain amounts in the prior period have been reclassified to conform with current period presentation.

 

Cash Equivalents

Cash Equivalents

 

For the purposes of the Balance Sheets and Statements of Cash Flows, the Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents.

 

Concentration of Credit Risk

Concentration of Credit Risk

 

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which at times, may exceed the Federal depository insurance coverage limits. The Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts.

 

 

Concentrations

 

During the three and six months ended April 30, 2026 and 2025, 0% and 0%, and 0% and 2% respectively, of the Company’s total revenues were derived from sales to an entity controlled by the Company’s former Chief Executive Officer and President, Dr. Jack Zamora (“Dr. Zamora”) (Note 10). Dr. Zamora is also a 29% stockholder. During the three months ended April 30, 2026, 25% and 12% of the Company’s total revenue was attributable to product sales to two customers. During the three months ended April 30, 2025, two customers accounted for 33% and 24% of the Company’s revenues. Other than the revenues derived through sales to the customers referenced herein, no customer accounted for greater than 10% of the Company’s gross sales for the three months ended April 30, 2026 or 2025. During the six months ended April 30, 2026, 28%, 13% and 11% of the Company’s total revenue was attributable to product sales to three customers. During the six months ended April 30, 2025, two customers accounted for 36% and 22% of the Company’s revenues. Other than the revenues derived through sales to the customers referenced herein, no customer accounted for greater than 10% of the Company’s gross sales for the six months ended April 30, 2026 or 2025.

 

As of April 30, 2026, two customers accounted for 26% and 10% of total accounts receivable, respectively. No other customer accounted for more than 10% of total accounts receivable. As of April 30, 2026, Dr. Zamora accounted for 0% of accounts receivable.

 

During the three and six months ended April 30, 2026 and 2025, foreign purchasers accounted for 86% and 50%, and 72% and 68% of total revenues, respectively. All sales to foreign customers were conducted in US Dollars.

 

Financial Instruments

Financial Instruments

 

The fair value of the Company’s assets and liabilities, which qualify as financial instruments under Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the balance sheets.

 

Use of Estimates

Use of Estimates

 

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Revenue Recognition

Revenue Recognition

 

As of January 1, 2018, the Company adopted Revenue from Contracts with Customers (Topic 606) (“ASC 606”). The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects to receive in exchange for the goods or services. To determine the appropriate amount of revenue to be recognized for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following steps: (i) identify the contract(s) with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) each performance obligation is satisfied. The Company adopted the standard using the modified retrospective method and the adoption did not have a material impact on the Company’s consolidated financial statements.

 

For each performance obligation identified in accordance with ASC 606, the Company determines at contract inception whether it satisfies the performance obligation over time (in accordance with paragraphs 606-10-25-27 through 25-29) or satisfies the performance obligation at a point in time (in accordance with paragraph 606-10-25-30). If an entity does not satisfy a performance obligation over time, the performance obligation is satisfied at a point in time.

 

Control is considered transferred over time if any one of the following criteria is met:

 

  The customer simultaneously receives and consumes the benefits of the asset or service which the entity performs;
     
  The entity’s performance creates or enhances an asset; or
     
  The entity’s performance creates or enhances an asset that has no alternative use to the entity and the entity has the right to payment for work completed to date.

 

 

For certain contracts to which the Company is party, it uses the recognition over time method to recognize revenue.

 

The Company recognizes revenue when performance obligations with the customer are satisfied. Product sales occur once control is transferred upon shipment to the customer at the time of the sale. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods and services. The Company’s revenue is primarily derived from the sources listed below:

 

Sale of research and development product: Sales of research and development product include the sale of stem cell medium.

 

Sale of therapeutic product: Includes cell culture media to be used in therapeutic treatment, i.e. sales to Foreign Third-Party Clinics.

 

Shipping: Includes amounts charged to customers for shipping products. These amounts are included with the various types of revenue described in the table below.

 

Fitore product sales online: Includes internet sales, via the Fitore Nutrition website, of dietary supplements called Stemulife, Spectrum+, Easy Sleep and Thought Calmer. The Company stopped selling Fitore products in March 2025.

 

InfiniVive product sales: InfiniVive, via call-in and online orders, sells exosomes and daily cosmetic serum.

 

Disaggregation of revenue

 

The following tables summarize the Company’s revenue for the reporting periods, disaggregated by product or service type:

 

  

Three Months

Ended
April 30, 2026

  

Three Months

Ended
April 30, 2025

 
Revenues:          
Research and development products  $164,797   $122,328 
AlloRx Stem Cells to Foreign Third-Party Clinics   101,780    365,825 
InfiniVive products   179,718    22,449 
Fitore products   -    982 
           
Total  $446,295   $511,584 

 

The following tables summarize the Company’s revenue for the reporting periods, disaggregated by product or service type:

 

  

Six Months

Ended
April 30, 2026

  

Six Months

Ended
April 30, 2025

 
Revenues:          
Research and development products  $248,517   $239,898 
AlloRx Stem Cells to Foreign Third-Party Clinics   486,056    649,266 
InfiniVive products   241,139    69,387 
Fitore products   -    2,907 
           
Total  $975,712   $961,458 

 

Deferred Revenue

Deferred Revenue

 

The Company has recorded deferred revenue in connection with a Joint Operating Agreement (as subsequently amended, the “JOA”) executed between the Company and European Wellness/BIO PEP USA (“BIO PEP”). Pursuant to this JOA, which expired in accordance with its terms on July 31, 2023 and has not been renewed, the Company was obligated to use its best efforts to identify, develop and deliver various potential active pharmaceutical ingredients and to oversee the development of a recombinant cell line by a third-party service provider. The Company was also engaged to establish a Quality Management System to be utilized by BIO PEP in their pursuit of FDA authorizations. Prior to its expiration, our work under the JOA had been suspended since April 2023 pending discussions regarding amounts believed to be owed to us under that agreement for work already completed. If those discussions are unsuccessful, we may not be able to collect all of the amounts believed to be owed to us or the other amounts originally expected to be received by us under the agreement.

 

 

The Company records as deferred revenue amounts for which the Company has been paid but for which it has not yet achieved and delivered related milestones or when the level of effort required to complete performance obligations under an arrangement cannot be reasonably estimated under the terms of the related agreement. Deferred revenue is classified as current or long-term based on when management estimates the revenue will be recognized. As of October 31, 2025 and April 30, 2026, the Company has net deferred $525,387 in revenue, which is composed of $685,005 of deferred revenue, less $159,618 of prepaid project costs. The amount recorded as net deferred revenue will be recognized if and when the Company achieves and delivers the milestones under the terms of the agreement. The Company did not recognize any of this net deferred revenue during the three and six months ended April 30, 2026 and 2025.

 

The table below summarizes Deferred Revenues as of April 30, 2026:

 

   October 31, 2025  

Other

Project

Income

Recognized

   Net Revenue Deferred   April 30, 2026 
Deferred Revenue  $525,387   $-   $-   $525,387 
Total  $525,387   $-   $-   $525,387 

 

The table below summarizes Deferred Revenues as of October 31, 2025:

 

   October 31, 2024  

Other

Project

Income

Recognized

   Net Revenue Deferred   October 31, 2025 
Deferred Revenue  $525,387   $-   $-   $525,387 
Total  $525,387   $-   $-   $525,387 

 

Accounts Receivable

Accounts Receivable

 

Accounts receivable consists of amounts due from customers. The Company considers accounts more than 30 days old to be past due. The Company uses the current expected credit loss method for recognizing bad debts. When an account is deemed uncollectible, it is written off against the allowance. The Company generally does not require collateral for its accounts receivable. As of April 30, 2026 and October 31, 2025, total accounts receivable, including related party amounts of $0 and $2,250, amounted to $62,244 and $82,776, respectively, net of allowances. The Company monitors accounts receivable for collectability and when doubt as to the realization of amounts recorded arises, an allowance is recorded and/or accounts deemed to be uncollectible will be written off. As of April 30, 2026 and October 31, 2025, the allowance for credit losses was $0 and $0, respectively. No bad debt expense was recognized during the six months ended April 30, 2026 and 2025.

 

As of April 30, 2026, two customers accounted for 26% and 10% of accounts receivable. As of October 31, 2025, 36% of the Company’s accounts receivable were attributable to sales to one customer. No other customer comprised more than 10% of the accounts receivable balance as of April 30, 2026 or October 31, 2025.

 

 

Basic Loss Per Share

Basic Loss Per Share

 

The Company complies with accounting and disclosure requirements ASC Topic 260, “Earnings Per Share.” Basic net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share takes into consideration shares of common stock outstanding (computed under basic income or loss per share) and potentially dilutive shares of common stock that are not anti-dilutive. For the six months ended April 30, 2026 and 2025, the following number of potentially dilutive shares have been excluded from diluted net loss since such inclusion would be anti-dilutive:

 

   April 30, 2026   April 30, 2025 
         
Stock options outstanding   1,028,308    1,112,923 
Shares to be issued in connection with exercise of warrants   149,727    215,881 
2022 Series Convertible Notes Payable - common shares   7,692    7,692 
2023 Series Convertible Notes Payable – Stock Settled   34,142    31,984 
2023 Series Convertible Notes Payable – Stock Settled - warrants issuable   3,076    3,076 
2023 Series B Convertible Notes Payable - Stock Settled   108,520    101,522 
2023 Series B Convertible Notes Payable - Stock Settled - warrants issuable   39,881    39,881 
2024 Series Senior Secured Convertible Notes Payable – Stock Settled   8,333    39,583 
2024 Series Senior Secured Convertible Notes Payable – Stock Settled – warrants issuable   289,583    289,583 
2024 Pre-funded Warrants   1,107,500    1,107,500 
2025 Pre-funded Warrants   276,000    276,000 
2025 Series Senior Secured Convertible Notes Payable – Stock Settled   2,126,623    1,737,013 
2025 Series Senior Secured Convertible Notes Payable – Stock Settled – warrants issuable   1,488,637    1,215,909 
Series A-1 Convertible Preferred Stock   645,325    - 
Total   7,313,347    6,178,547 

 

Inventory

Inventory

 

Inventories, consisting of raw materials and finished goods, are stated at the lower of cost (using the specific identification method) or net realizable value. Inventories consisted of the following at the balance sheet dates:

  

   April 30, 2026   October 31, 2025 
         
Finished Goods  $138,919   $134,833 
Total inventory  $138,919   $134,833 

 

The Company periodically reviews the value of items in inventory and provides write-downs or write-offs of inventory based on its assessment of market conditions. During the three and six months ended April 30, 2026 and 2025, the Company recorded $0 and $99,700, and $0 and $0 in impairment expense, respectively.

 

Patents

Patents

 

Costs related to filing and pursuing patent applications (including direct application fees, and the legal and consulting expenses related to making such applications) are capitalized as incurred and will not be amortized until a patent is granted at which time they will be amortized. Capitalized patent costs recorded as of April 30, 2026 and October 31, 2025 were $163,827 and $156,631 respectively.

 

 

Property and Equipment

Property and Equipment

 

Property, equipment, and leasehold improvements are recorded at historical cost. The cost of property and equipment is depreciated over the estimated useful lives, when placed in service (ranging from 3-5 years), of the related assets utilizing the straight-line method of depreciation. The cost of leasehold improvements is depreciated (amortized) over the lesser of the length of the related leases or the estimated useful lives of the assets. Ordinary repairs and maintenance are expensed when incurred and major repairs are capitalized and expensed if they benefit future periods.

 

Intangible Assets and Impairment

Intangible Assets and Impairment

 

Intangible assets that are subject to amortization are reviewed for potential impairment whenever events or circumstances indicate that carrying amounts may not be recoverable. Assets not subject to amortization are tested for impairment at least annually.

 

The Company periodically reviews its intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less that the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value.

 

Goodwill

Goodwill

 

Goodwill is the excess of acquisition cost over the fair value of the net assets of acquired businesses. The Company does not amortize goodwill but assesses goodwill for impairment at least annually or when there has been a material change in circumstances, using the market approach.

 

Stock Based Compensation

Stock Based Compensation

 

The Company accounts for expenses associated with shares issued for services using the fair value method following the guidance outlined in Section 718-10 of the FASB ASC for disclosure about stock-based compensation. This section requires a public entity to measure the cost of employee and non-employee services received in exchange for an award of equity instruments based on the grant date fair value of the award (with limited exceptions). That cost is recognized over the period during which the service is provided. No compensation cost is recognized for equity instruments for which service is not provided or rendered.

 

Recent Accounting Standards

Recent Accounting Standards

 

In December 2023, the FASB issued ASU 2023-09, Income Taxes: Improvements to Income Tax Disclosures, which applies to all public business entities. This standard is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted. The Company will adopt this standard for the period ending October 31, 2026.

 

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (DISE), which applies to all public business entities. This standard is effective for annual reporting periods beginning after December 15, 2026, with early adoption permitted.