SKVI 10-K & 10-Q changes, risk factors and insider trading

Our success depends substantially on the performance of our management team and key personnel. Currently, we have threetwo employees, including our Director and CEO, Terry Howlett. Due to the specialized technical nature of our business, we are particularly dependent on our technical personnel. Our future success will depend on our ability to attract, integrate, motivate and retain qualified technical, sales, operations, and managerial personnel, as well as our ability to successfully implement a plan for management succession. Competition for qualified personnel in our business areas is intense, intense, and we may not be able to continue to attract and retain key personnel. In addition, if we lose the services of any of our management team or key personnel and are not able to find suitable replacements in a timely manner, our business could be disrupted and we may incur increased operating expenses.

This quarterlyannual report contains forward-looking statements. Forward-looking statements are projections of events, revenues, income, future economic performance or or management’s plans and objectives for our future operations. In some cases, you can identify forward-looking statements by terminology terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled “Risk Factors” and the risks set out below, any of which may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. These risks include, by way of example and not in limitation:

Our revenue, which we combine from product sales, sales, royalties on patent licenses and license fees (product development fees), was $20,000 for each of the yearsyear ended December 31, 20242025 andas 2023.compared with $20,000 for the year ended 2024.

We had $0 in cost of revenues for the year ended December 31, 20242025 and 2023,2024, so our gross profit was $20,000 and $20,000, or 100% of sales for 20242025 and 2023.2024.

Operating expenses increaseddecreased to $609,589$516,315 for the year year ended December 31, 2024,2025, from $510,375$609,589 for the year ended December 31, 2023.2024.

Our operating expenses for all periods consisted mainly mainly of selling, general and administrative expenses.expenses, which, consisted mainly of accrued salaries and wages and audit and accounting fees.

Other Income (/ Expenses)

Our other incomeexpense for the year ended December 31, 2024,2025 consisted mainly of interest expense netted against aother gainincome onrelated settlementto the sale of debt.polymer. Our other expensesexpense for the year year ended December 31, 20232024 consisted mainly of interest expense, netted against a gain on settlement of debt and gain on derivative liability changes.

Operating activities used $69,834$38,410 in cash for the the year ended December 31, 2024,2025, as compared with $75,969$69,834 used for the year ended December 31, 2023.2024. Our negative operating cash flows for for2025 and 2024 waswere largely the result of our net loss for thethose year,quarters, mainly offset by changes in operating assets and liabilities and the amortization of debt discount. Our negative operating cash flows for 2023 was the result of our net loss for the year, mainly offset by changes in operating assets and liabilities and the amortization of debt discount.discount and amortization.

We used cash of $9,218$4,086 and $10,521$9,218 in investing activities activities for the years ended December 31, 20242025 and 2023,2024, respectively, for the purchase of fixedintangible and intangiblefixed assets.

Cash flows provided by financing activities during the year ended December 31, 20242025 amounted to $88,500,$34,780, as compared with cash provided of $6,000$88,500 for the year ended December 31, 2023.2024. Our positive financing cash flow for the year ended December 31, 20242025 resulted from common stock issued for cash and proceeds from notes payable. Our positive financing cash flow for the year ended December 31, 20232024 resulted from proceeds from related partparties notes.

Results of Operations for the Three and Six Months Ended MarchJune 31,30, 2026 and and 2025

Our revenue, which we combine from product sales, royalties on patent licenses and license fees (product development fees), was $5,000 for the three months ended MarchJune 31,30, 2026 as compared with $5,000 for the same period ended June 30, 2025. Our revenue, which we combine from product sales, royalties on patent licenses and license fees (product development fees), was $10,000 for the six months ended June 30, 2026 as compared with $5,000$10,000 for the same period period ended MarchJune 31,30, 2025.

Operating expenses decreasedwere to $130,938$117,817 for the three months ended ended MarchJune 31,30, 2026, fromas $144,852compared with $141,237 for the same period ended MarchJune 31,30, 2025. Operating expenses were $248,755 for the six months ended June 30, 2026, as compared with $286,089 for the same period ended June 30, 2025.

Our operating expenses for all periods consisted mainly of selling, general and administrative expenses. Our selling, general and administrative expenses for the three months ended June 30, March 31, 2026, consisted mainly of accrued salaries and wages of $86,442$86,463 and audit and accounting of $18,110.$14,473. In comparison, our selling, general general and administrative expenses for the three months ended MarchJune 31,30, 2025, consisted mainly of accrued salaries and wages of $87,942$84,066 and audit and accounting of $17,610. Our selling, general and administrative expenses for the six months ended June 30, 2026, consisted mainly of accrued salaries and wages of $172,885 and audit and accounting of $11,609.$32,583. In comparison, our selling, general and administrative expenses for the six months ended June 30, 2025, consisted mainly of accrued salaries and wages of $172,008 and audit and accounting of $29,219. We expect our operating expenses will increase in the future as the Company begins to generate more licensing revenue.

We had other expenses of $141,246$142,716 for the three months ended June 30, 2026, compared with other expense of $138,190 for the three months ended MarchJune 31,30, 2025. We had other expenses of $283,962 for the six months ended June 30, 2026, as compared with other incomeexpense of $141,153$279,343 for the threesix months ended MarchJune 31,30, 2025.

Our other expense for the three months ended MarchJune 31,30, 2026 consisted mainly of interest expense of $141,246.$142,716. Our other expense for the three months ended MarchJune 31,30, 2025 consisted mainly of interest expense of $142,720. Our other expense for the six months ended June 30, 2026 consisted mainly of interest expense of $283,962. Our other expense for the six months ended June 30, 2025 consisted mainly of interest expense of $141,153.$283,873 netted against other income related to the sale of polymer.

We recorded a net loss of $267,184$255,533 for the three months ended MarchJune 31, 30, 2026, as compared with a net loss of $281,005$274,427 for the three months ended MarchJune 31,30, 2025 June 30, 2025. We recorded a net loss of $522,717 for the six months ended June 30, 2026, as compared with a net loss of $555,432 for the six months ended June 30, 2025.

As of MarchJune 31,30, 2026, we had total current assets of $24,390 $33,301 and total assets in the amount of $119,419.$123,334. Our total current liabilities as of MarchJune 31,30, 2026 were $5,276,981.$5,536,429. We had a working capital deficit of $5,252,591$5,503,128 as of MarchJune 31,30, 2026, compared with a working capital deficit of $4,990,414 as of December 31, 2025.

Operating activities used $822$1,339 in cash for the three six months ended MarchJune 31,30, 2026, as compared with $31,720$40,909 used for the threesix months ended MarchJune 31,30, 2025. Our negative operating cash flows for 2026 and 2025 was largely the result of our net loss for those quarters, mainly offset by changes in operating assets and liabilities and the amortization of debt discount and amortization.

We used no cash in investing activities for the three six months ended March 31,June 30, 2026 and 2025.

Cash flow provided from financing activities was $0 for the threesix months ended MarchJune 31,30, 2025,2026, as compared with $34,780 provided by cash flows for financing activities during the threesix months ended MarchJune 31, 30, 2025.

As of MarchJune 31,30, 2026, there were no off-balance sheet arrangements.

Royalty sales – We also recognize royalty revenue from licensing our patented product formulations only when earned, with no further contingencies or material performance obligations are warrantedwarranted, and thereby have earned the right to receive and retain reasonably assured payments.

Distribution and license rights sales – We also recognize revenue from distribution and license rights only when earned (and are amortized over a five-year period),earned, with no further contingencies or material performance obligations are warranted warranted, and thereby have earned the right to receive and retain reasonably assured payments.

Accounts Receivable – Accounts receivable is comprised of uncollateralized customer obligations due under normal trade terms requiring payment within 30 days from the invoice date. The carrying amount of accounts receivable is reviewed periodically for collectability. If management determines that collection is unlikely, an allowance that reflects management’s best estimate of the amounts that will not be collected is recorded. Management reviews each accounts receivable balance that exceeds 30 days from the invoice date and, based on an assessment of creditworthiness, estimates the portion, if any, of the balance that will not be collected. As of MarchJune 31,30, 2026, we had not recorded a reserve for doubtful accounts.