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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended

August 31, 2024

¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

Commission File Number:

000-56262

BETTER FOR YOU WELLNESS, INC.

(Exact name of registrant as specified in its charter)

Nevada	87-2903933
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1349 East Broad Street Columbus, OH	43205
(Address of principal executive offices)	(Zip Code)

(888) 287-7555

(Registrant’s telephone number, including area code)

Securities registered pursuant to section 12(b) of the Act:

Title of Each Class		Trading Symbol(s)		Name of each exchange on which registered
Not applicable		Not applicable		Not applicable

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes



Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	x	Smaller reporting company	x
		Emerging growth company	x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes

The number of shares outstanding of the registrant’s common stock, $0.0001 par value per share, outstanding as of October

, 2024 was 507,804,946 shares of Common Stock and 998,796 shares of Series A Preferred Stock issued and outstanding.

INDEX

		Page
	PART I - FINANCIAL INFORMATION

ITEM 1	FINANCIAL STATEMENTS – UNAUDITED	1
	CONDENSED CONSOLIDATED BALANCE SHEETS AS OF AUGUST 31, 2024 (UNAUDITED) AND FEBRUARY 28, 2024 (AUDITED)	1
	CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED AUGUST 31, 2024 AND 2023 (UNAUDITED)	2
	STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT FOR THE THREE AND SIX MONTHS ENDED AUGUST 31, 2024 AND 2023 (UNAUDITED)	3
	CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE AND SIX MONTHS ENDED AUGUST 31, 2024 AND 2023 (UNAUDITED)	5
	NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)	6
ITEM 2	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS	16
ITEM 3	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	21
ITEM 4	CONTROLS AND PROCEDURES	21

	PART II - OTHER INFORMATION	22

ITEM 1	LEGAL PROCEEDINGS	22
ITEM 1A	RISK FACTORS	22
ITEM 2	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	22
ITEM 3	DEFAULTS UPON SENIOR SECURITIES	22
ITEM 4	MINE SAFETY DISCLOSURES	22
ITEM 5	OTHER INFORMATION	22
ITEM 6	EXHIBITS	23

SIGNATURES		24

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

BETTER FOR YOU WELLNESS, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	August 31, 2024			February 28, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	2,999		$	1,716
Accounts receivable		8,262			2,634
Prepaid expenses		13,934			4,634
Other receivable- related party		—			5,152
Inventory		56,091			55,416
Total current assets		81,286			69,552
Equipment, net		3,053			5,260
Right-of-use assets - operating leases		114,553			146,454
Total assets	$	198,892		$	221,266


LIABILITIES AND STOCKHOLDERS ’ DEFICIT
Current liabilities:
Accounts payable and accrued expenses	$	803,395		$	601,487
Deferred compensation		261,814			85,823
Notes payable- related party		496,731			449,287
Accrued interest		236,979			165,843
Operating lease liabilities - current portion		69,810			65,765
Convertible notes payable, net of discount		850,914			766,419
Total current liabilities		2,719,643			2,134,624
Long-term liabilities
Lease liability- net of current portion		44,743			80,689
Total liabilities		2,764,386			2,215,313

Commitments and contingencies (Note 18)

STOCKHOLDERS' DEFICIT:
Preferred stock ($0.0001 par value, 200,000,000 shares authorized; 998,796 and 700,000 shares issued and outstanding as of August. 31, and Febr uar y 28, 2024 respectively)		100			70
Common stock ($0.0001 par value, 2,000,000,000 and 500,000,000 shares authorized, 507,804,946 and 419,509,183 issued as of August 31, 2024 and February 28, 2024 respectively)		50,783			41,953
Additional paid in capital		6,485,445			6,493,465
Accumulated deficit		(9,101,822	)		(8,529,535	)
Total stockholders' deficit		(2,565,494	)		(1,994,047	)
TOTAL LIABILITIES & STOCKHOLDERS’ DEFICIT	$	198,892		$	221,266

The accompanying notes are an integral part of these interim unaudited consolidated financial statements.

BETTER FOR YOU WELLNESS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	For the Three Months Period Ended August 31,						For the Six Months Period Ended August 31,
	2024			2023			2024			2023
Revenue
Merchandise sales	$	5,844		$	1,804		$	11,533		$	3,654
Cost of goods sold		(3,657	)		(381	)		(8,976	)		(1,313	)
Gross profit		2,187			1,423			2,557			2,341

Operating expenses
Share based expenses		—			180,718			560			573,668
Selling, general and administrative		199,503			281,394			424,917			593,450
Total operating expenses		199,503			462,112			425,477			1,167,118

Operating loss		(197,316	)		(460,689	)		(422,920	)		(1,164,777	)

Other expense
Gain on d ebt s ettlement		1,979			—			1,979			—
Interest expense		(107,809	)		(25,505	)		(151,346	)		(69,301	)
Total other expense		(105,830	)		(25,505	)		(149,367	)		(69,301	)

Net loss	$	(303,146	)	$	(486,194	)	$	(572,287	)	$	(1,234,078	)


Net loss per common shares outstanding – basic and diluted	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)


Weighted average common shares outstanding – basic and diluted		507,804,946			411,804,068			496,856,824			407,943,223

The accompanying notes are an integral part of these interim unaudited consolidated financial statements.

BETTER FOR YOU WELLNESS

CONSOLIDATED AND CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDER'S DEFICIT

FOR THE THREE AND SIX MONTHS PERIOD ENDED AUGUST 31, 2024 AND 2023

(Unaudited)

	Common Shares				Class A Preferred Shares				Additional Paid- In			Accumulated
	Shares		Amount		Shares		Amount		Capital			Deficit			Total
SIX MONTHS
Balances, February 28, 2023		404,014,987	$	40,403		700,000	$	70	$	4,933,281		$	(6,075,601	)	$	(1,101,847	)

Common shares issued for services to the company		975,194		98		—		—		11,852			—			11,950

Common shares issued for settlement of debt		5,270,271		527		—		—		194,473			—			195,000

Common shares issued for settlement of deferred compensation		8,948,731		895		—		—		330,208			—			331,103

Stock option expense		—		—		—		—		546,594			—			546,594

Net loss		—		—		—		—		—			(1,234,078	)		(1,234,078	)

Balances, August 31, 2023		419,209,183	$	41,923		700,000	$	70	$	6,016,408		$	(7,309,679	)	$	(1,251,278	)

Balances, February 28, 2024		419,509,183	$	41,953		700,000	$	70	$	6,493,465		$	(8,529,535	)	$	(1,994,047	)

Common shares issued for conversion of deferred compensation		87,995,763		8,800		—		—		(8,800	)		—			—

Common shares issued for services to the company		300,000		30		—		—		810			—			840

Preferred shares issued for asset purchase		—		—		298,796		30		(30	)		—			—

Net loss		—		—		—		—		—			(572,287	)		(572,287	)

Balances, August 31, 2024		507,804,946	$	50,783		998,796	$	100	$	6,485,445		$	(9,101,822	)	$	(2,565,494	)

The accompanying notes are an integral part of these interim unaudited consolidated financial statements.

BETTER FOR YOU WELLNESS

CONSOLIDATED AND CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDER'S DEFICIT

FOR THE THREE AND SIX MONTHS PERIOD ENDED AUGUST 31, 2024 AND 2023

(Unaudited)

	Common Shares				Class A Preferred Shares				Additional Paid- In		Accumulated
	Shares		Amount		Shares		Amount		Capital		Deficit			Total
THREE MONTHS
Balances, May 31, 2023		404,114,987	$	40,413		700,000	$	70	$	5,318,659	$	(6,823,485	)	$	(1,464,343	)

Common shares issued for services to the company		875,194		88		—		—		10,912		—			11,000

Common shares issued for settlement of debt		5,270,271		527		—		—		194,473		—			195,000

Common shares issued for settlement of deferred compensation		8,948,731		895		—		—		330,208		—			331,103

Stock option expense		—		—		—		—		162,156		—			162,156

Net loss		—		—		—		—		—		(486,194	)		(486,194	)

Balances, August 31, 2023		419,209,183	$	41,923

Better For You Wellness, Inc. 10-Q