Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The information contained in this Form 10-Q is intended to update the information contained in our Annual Report on Form 10-K for the year ended December 31, 2024, and presumes that readers have access to, and will have read, the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and other information contained in such Form 10-K. The following discussion and analysis also should be read together with our financial statements and the notes to the financial statements included elsewhere in this Form 10-Q.

The following discussion contains certain statements that may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements appear in a number of places in this Report, including, without limitation, "Management's Discussion and Analysis of Financial Condition and Results of Operations." These statements are not guarantees of future performance and involve risks, uncertainties and requirements that are difficult to predict or are beyond our control. Forward-looking statements speak only as of the date of this quarterly report. You should not put undue reliance on any forward-looking statements. We strongly encourage investors to carefully read the factors described in the Form 10-K in the section entitled "Risk Factors" for a description of certain risks that could, among other things, cause actual results to differ from these forward-looking statements. We assume no responsibility to update the forward-looking statements contained in this quarterly report on Form 10-Q. The following should also be read in conjunction with the unaudited Financial Statements and notes thereto that appear elsewhere in this report.

Overview

On July 14, 2025, the Company completed the acquisition of certain assets of Eco Bio Plastics Midland, Inc. The accompanying condensed consolidated financial statements reflect the historical results of One World Products, Inc. and its subsidiaries for the periods presented. Unaudited pro forma financial information giving effect to the acquisition is presented separately for illustrative purposes only.

During 2024, the Company began its new business model, first developing industrial hemp solutions for the automotive market. Then the Company began to focus increased efforts on research and development to help the automotive industry meet its goals of achieving carbon neutral manufacturing using renewable and recycled material solutions. In October of 2024, the Company, in collaboration with partners in the automotive industry, developed hemp-based molded containers for automotive part packaging applications and received an initial order for 1,400 units of these reusable totes, designed to move and protect automotive parts through the supply chain.

With global demand surging for sustainable materials, and new regulatory incentives aligning with our strengths, Eco Bio Plastics is positioned to become one of the fastest-growing players in American green manufacturing. Eco Bio's advanced micronizeation and pelletization process enables the production of ultra-small, application-ready biofibers derived from organic matter including agricultural byproducts, natural fibers, and plant-based residues - offering automotive, food, and industrial clients a cost-effective, ESG-compliant alternative to traditional materials. In-house micronizeation allows Eco Bio to produce fine powder compounds ideal for coatings, polymer blends, and talc-free formulations - meeting growing demand for recyclable, lightweight, and high-performance solutions across multiple sectors. Its patent-pending process produces the only pelletized bast fiber on the market, opening the door for additional sustainable fiber plastic compounds.

In July 2025, the Company's Board of Directors and the Company's majority shareholder approved a change in the Company's corporate name to "Isiah Enterprises, Inc." This change in corporate name will not become effective in the trading markets until such time as FINRA has approved such change.

Results of Operations for the Three Months Ended September 30, 2025 and 2024:

The following table summarizes selected items from the statement of operations for the three months ended September 30, 2025, and 2024.

		Three Months Ended September 30,								Increase /
		2025				2024				(Decrease)
Revenues		$	49,966			$	1,517			$	48,449
Cost of goods sold			1,375				310				1,065
Gross profit			48,591				1,207				47,384
Operating expenses:
Salaries, wages and benefits			250,800				-				250,800
General and administrative			17,150				203,242				(186,092	)
Professional fees			157,781				169,596				(11,815	)
Total operating expenses:			425,731				372,838				52,893
Operating loss			(377,140	)			(371,631	)			(5,509	)
Other income (expense)
Gain on acquisition of business			6,049,860				-				6,049,860
Loss on early extinguishment of debt			-				-				-
Loss on deconsolidation of foreign subsidiaries			-				(22,359	)			22,359
Loss on sale of assets			(841	)			-				(841	)
Interest expense			(258,135	)			(340,609	)			82,474
Depreciation expense			(148,001	)			-				(148,001	)
Total other Income (expense)			5,642,883				(362,968	)			6,005,851
Net income (loss)		$	5,265,743			$	(734,599	)		$	6,000,342

Revenues

Revenues during the three months ending September 30, 2025, were $49,966, compared to $1,517 during the three months ending September 30, 2025, an increase of $48,449, or 3,194%. Revenues during the current period were generated by manufacturing sales of Eco Bio products, while revenues from the comparative period were attributable to CBD products.

Cost of Goods Sold

Cost of goods sold for the three months ending September 30, 2025, were $1,375, compared to $310 for the three months ending September 30, 2024, an increase of $1,065 or 344%. Cost of goods sold for the current period was from manufacturing compounding product consists primarily of additives while the costs for CBD products are finished goods sold. Our profit margin during the three months ended September 30, 2025, was 96% compared to 80% for the three months ending September 30, 2024.

Salaries, wages and benefits

Salaries, wages and benefits have been tracked separately since the acquisition of the Eco Bio Plastics Michigan operation. Wages, salaries, and benefits for the three months ending September 30, 2025, were $250,800. Such costs did not exist in the prior operations as the Company had no salaries, wages and benefits cash payments.

General and Administrative Expenses

General and administrative expenses for the three months ending September 30, 2025, were $17,150 compared to $203,242 during the three months ending September 30, 2024, a decrease of $186,092, or 92%. The expenses for the current period consisted primarily of office rent and travel costs. General and administrative expenses decreased primarily due to our focus on operations within the United States.

Professional Fees

Professional fees for the three months ending September 30, 2025, were $157,781, compared to $169,596 during the three months ending September 30, 2024, a decrease of $11,815, or 7%. Professional fees included non-cash, stock-based compensation of $21,564 and $147,367 during the three months ending September 30, 2025, and 2024, respectively. Professional fees increased primarily due to increased stock-based compensation being issued to consultants during the current period.

Other Income (Expense)

Other income (expenses), on a net basis, for the three months ending September 30, 2025, were $5,642,883, compared to other expenses, on a net basis, for the three months ending September 30, 2024, of $362,968, an increase in other income of $6,005,851, or 1,655%. Other income (expense) for the three months ended September 30, 2025, primarily reflects a gain of $6,049,860 recognized in connection with the acquisition of Eco Bio Plastics Midland, Inc. The gain represents a bargain purchase under ASC 805, calculated as the excess of the fair value of net assets acquired over the purchase price, and was recognized in terms of earnings during the period. This gain was partially offset by interest expense of $258,135 associated with outstanding debt. There were no gains or losses related to foreign subsidiary deconsolidation during the period. Expenses in 2024 resulted from one-time charges related to a $22,359 loss on deconsolidation of foreign subsidiaries and $340,609 of interest expense, including $147,756 of stock-based finance costs on the amortization of debt discounts for the three months ended September 30, 2024. Depreciation expense of $148,001 related to the newly acquired fixed assets.

Net Income (Loss)

Net loss for the three months ending September 30, 2025, was $5,265,743, $0.44 per share, compared to $734,599 or a loss of $0.01 per share, during the three months ended September 30, 2024, an increase of $6,000,342, or 817%.

Results of Operations for the Nine Months Ended September 30, 2025, and 2024:

The following table summarizes selected items from the statement of operations for the nine months ended September 30, 2025 and 2024.

		Nine Months Ended September 30,								Increase /
		2025				2024				(Decrease)
Revenues		$	51,619			$	3,053			$	48,566
Cost of goods sold			1,703				588				1,115
Gross profit			49,916				2,465				47,451
Operating expenses:
Salaries, wages, taxes, benefits		$	250,800			$	-			$	250,800
General and Administrative			202,503				552,874				(350,371	)
Professional fees			278,383				971,934				(693,552	)
Total operating expenses:			731,686				1,524,808				(793,123	)
Operating loss			681,770				(1,522,343	)			(840,573	)
Other income (expense)
Gain on acquisition of business			6,049,860				-				6,049,860
Loss on early extinguishment of Debt			-				(724,086	)			(724,086	)
Loss on deconsolidation of foreign subsidiaries			-				(242,631	)			(242,631	)
Loss on sale of assets			(841	)			-				841
Interest expense			(475,088	)			(811,620	)			(336,532	)
Depreciation expense			(148,001	)			-				148,001
Total other income (expense)			5,425,930				(1,778,337	)			7,204,267
Net income (loss)		$	4,744,160			$	(3,300,680	)		$	8,044,841

Revenues

Revenues during the nine months ended September 30, 2025 were $51,619, compared to $3,053 during the nine months ended September 30, 2025, a increase of $48,566, or 1591%. Revenues during the current period were generated by sales at our Eco Bio Plastics Michigan facility while 2024 sales were from our CBD product.

Cost of Goods Sold

Cost of goods sold for the nine months ending September 30, 2025, were $1,703, compared to $588 for the nine months ending September 30, 2025, an increase of $1,115, or 190%. Cost of goods sold at Eco Bio Plastics Michigan is from chemical additives used in compounding, while our CBD product consisted primarily of finished goods sold.

Salaries, wages and benefits

Salaries, wages and benefits have been tracked separately since the acquisition of the Eco Bio Plastics Michigan operation. Wages, salaries, and benefits for the Nine months ending September 30, 2025, were $250,800. Such costs did not exist prior to the acquisition of Eco Bio Plastics Michigan in 2025.

General and Administrative Expenses

General and administrative expenses for the nine months ending September 30, 2025, were $202,503, compared to $552,874 during the nine months ending September 30, 2024, a decrease of $350,371, or 63%. The expenses for the current period consisted primarily of liability insurance premiums, utilities, operating expenses and other costs of operation of the plant.

Professional Fees

Professional fees for the nine months ending September 30, 2025, were $278,383, compared to $971,934 during the nine months ending September 30, 2025, a decrease of $693,551, or 71%. Professional fees included non-cash, stock-based compensation of $267,452 and $100,000 during the nine months ending September 30, 2025, and 2024, respectively. Professional fees decreased due to a reduction in forces following the closing of operations outside United States.

Other Income (Expense)

Other Income (Expense), on a net basis, for the nine months ending September 30, 2025, were $5,425,930, compared to other income (expense), on a net basis, of $(1,778,337) during the nine months ending September 30, 2024, an increase in net other income (expenses) of $7,204,267, or 405%. Other income (expense) for the nine months ended September 30, 2025, primarily reflects a gain of $6,049,860 recognized in connection with the acquisition of Eco Bio Plastics Midland, Inc. The gain represents a bargain purchase under ASC 805, calculated as the excess of the fair value of net assets acquired over the purchase price, and was recognized in terms of earnings during the period. This gain was partially offset by interest expense of $475,088 associated with outstanding debt. There were no gains or losses related to foreign subsidiary deconsolidation during the period. Depreciation expense of $148,001 related to the newly acquired fixed assets. The decrease is due primarily to the elimination of foreign operations and related debts.

Net Income (Loss)

Net Income for the nine months ending September 30, 2025, was $4,744,160, or less than $0.40 per share, compared to a loss of $3,300,680 or less than $0.30 per share, during the nine months ended September 30, 2024, an increase of $8,044,840, or 244%. The net income increased primarily due to a gain in connection with the acquisition of Eco Bio Plastics Midland, Inc. and related debt, stock-based compensation, the fair value of common stock issued to related parties as commitment shares on debt modifications and interest expense.

Liquidity and Capital Resources

The following is a summary of the Company's cash flows provided by (used in) operating, investing, financing activities and effect of exchange rate changes on cash for the nine months ended September 30, 2025 and 2024:

		2025				2024
Operating Activities		$	(593,837)			$	(1,010,268	)
Investing Activities			(415,000	)			(75,000	)
Financing Activities			1,135,000				1,208,500
Effect of Exchange Rate Changes on Cash							(42,328	)
Net Increase (Decrease) in Cash		$	126,164			$	80,904

Net Cash Used in Operating Activities

During the nine months ended September 30, 2025, net cash used in operating activities was $593,837, and $1,010,268, in the nine months ended September 30, 2024. The change was primarily attributable to non-cash adjustments, including the bargain purchase gain recognized in connection with the acquisition of Eco Bio Plastics Midland, Inc., which did not result in operating cash inflows, together with changes in working capital and operating results during the period.

Net Cash Used in Investing Activities

During the nine months ended September 30, 2025, net cash used in investing activities was $415,000 for the nine months ended September 30, 2025, and $75,000 in the nine months ended September 30, 2024. The change was due to cash used during the period for the acquisition of fixed assets in the Eco Bio Plastics Michigan purchase.

Net Cash Provided by Financing Activities

During the nine months ended September 30, 2025, net cash provided by financing activities was $1,135,000 and $1,208,500, in the nine months ended September 30, 2024. The current period consisted of increase in Notes Payable from affiliated shareholders. In the period ended September 30 2025 a series of restructuring notes payable accounted for the changes the nine months ended September 30, 2024.

Ability to Continue as a Going Concern

As of September 30, 2025, our balance of cash on hand was $168,620, and we had negative working capital of $3,953,402 and an accumulated deficit of $26,120,538. We are too early in our development stage to project future revenue levels and may not be able to generate sufficient funds to sustain our operations for the next twelve months. Accordingly, we will need to raise additional cash to fund our operations. These factors raise substantial doubt about the Company's ability to continue as a going concern.

In the event sales do not materialize at the expected rates, management will seek additional financing and will attempt to conserve cash by further reducing expenses. There can be no assurance that we will be successful in achieving these objectives; therefore, without sufficient financing it would be unlikely for the Company to continue as a going concern.

The condensed consolidated financial statements do not include any adjustments that might result from the outcome of any uncertainty regarding the Company's ability to continue as a going concern. The condensed consolidated financial statements also do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern. Our ability to scale production and distribution capabilities and further increase the value of our products is largely dependent on our success in raising additional capital.

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires our management to make assumptions, estimates and judgments that affect the amounts reported, including the notes thereto, and related disclosures of commitments and contingencies, if any. We have identified certain accounting policies that are significant to the preparation of our financial statements. These accounting policies are important for an understanding of our financial condition and results of operations. Critical accounting policies are those that are most important to the presentation of our financial condition and results of operations and require management's subjective or complex judgment, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods. Certain accounting estimates are particularly sensitive because of their significance to financial statements and because of the possibility that future events affecting the estimate may differ significantly from management's current judgments.

While our significant accounting policies are more fully described in notes to our consolidated financial statements appearing elsewhere in this Form 10-Q, we believe that the following accounting policies are the most critical to aid you in fully understanding and evaluating our reported financial results and affect the more significant judgments and estimates that we used in the preparation of our financial statements.

Revenue Recognition

The Company recognizes revenue in accordance with ASC 606 - Revenue from Contracts with Customers. Under ASC 606, the Company previously recognized revenue from the commercial sales of products, licensing agreements and contracts to perform pilot studies by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied. The Company's revenues in the current period consisted of the sale of our CBD rub, and in the prior period revenues consisted entirely of the sale of seeds. The sale of seeds included multi-element arrangements whereby the Company collected 50% of the sale upon delivery of the sales, and the remaining 50% upon the completion of the harvest, whether the seeds result in a successful crop, or not. In addition, the Company had a right of first refusal to purchase products resulting from the harvest.

Currently the Company manufactures products and provides research and development production studies under custom work orders. Net revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services and is recognized when performance obligations are satisfied under the terms of contracts with customers.

A performance obligation is deemed to be satisfied by the Company when control of the product or service is transferred to the customer. The transaction price of a contract, or the amount the Company expects to receive upon satisfaction of the performance obligation, is determined by reference to the contract's terms and includes adjustments. If an estimate is required, these allowances are determined using the expected value method, which is typically based upon historical rates. The timing of revenue recognition for product is at a point in time.

Inventory

Inventories are stated at the lower of cost or net realizable value. Cost is determined on a standard cost basis that approximates the first-in, first-out (FIFO) method. Appropriate consideration is given to obsolescence, excessive levels, deterioration, and other factors in evaluating net realizable value. Our cannabis products consist of cannabis flower grown in-house, along with produced extracts and CBD derived products.

Stock-Based Compensation

The Company accounts for equity instruments issued to employees and non-employees in accordance with the provisions of ASC 718 Stock Compensation (ASC 718). All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. The measurement date of the fair value of the equity instrument issued is the earlier date on which the counterparty's performance is complete or the date at which a commitment for performance by the counterparty to earn the equity instruments is reached because of sufficiently large disincentives for nonperformance.