Results of Operations for the Year Ended October 31, 2022, compared to the Year Ended October 31, 2021

Revenue

We had $0 in revenue for the year ended October 31, 2022, compared to $3,450 for the year ended October 31, 2021. The large decrease in revenue is due to a loss in retail food service customers. As the Company reorganized, it sold through its remaining inventory and did not produce additional product while it worked on plans to relaunch the Yuengling's Ice Cream brand.

Cost of Goods Sold

We incurred $0 in costs of goods sold for the year ended October 31, 2022, compared to $148,014 for the year ended October 31, 2021. In the prior period we had a large write down of our inventory of approximately $136,000 due to expired or goods sold below cost.

General and administrative expenses

We had $89,687 of general and administrative expenses ("G&A") for the year ended October 31, 2022, compared to $90,223 for the year ended October 31, 2021, a decrease of $536 or 0.6%.





Bad debt expense

During the year ended October 31, 2022, due to the uncertainty of the collection of our note receivable the Company has written the receivable off and recognized $80,000 of bad debt expense.





Consulting - related party

We had $0 of related party consulting expenses for the year ended October 31, 2022, compared to $85,000 for the year ended October 31, 2021. In the prior period we made a payment of $40,000 to Everett Dickson, our former CEO and two payments totaling $45,000 to Robert Bohorad, YICA's former Chief Operating Officer and our current CEO.





Officer compensation

We had $63,000 of officer compensation for the year ended October 31, 2022, compared to $0 for year ended October 31, 2021. In the current period we began to compensate Mr. Bohorad, CEO, $5,000 per month.











  5






Professional fees

We incurred $107,583 of professional fees for the year ended October 31, 2022, compared to $171,692 for the year ended October 31, 2021, a decrease of $64,109 or 37.3%. Professional fees generally consist of audit, legal, accounting and investor relation service fees. The decrease is due to a decrease in investor relation expense of approximately $70,000, which was offset by small increases in all other professional fees.

Other income (expense)

For the year ended October 31, 2022, we had total other expense of $141,082, compared to total other income of $110,973 for the year ended October 31, 2021. In the current period we incurred $108,677 of interest expense, which included $27,978 of debt discount amortization, earned $174 of interest income and recognized a gain on forgiveness of debt of $80,637. We also incurred additional expense of $186,886 for the issuance of convertible debt and a gain of $73,670 for the change in the fair value of derivatives. In the prior period we incurred $176,157 of interest expense, which included $93,750 on debt discount amortization, earned $738 of interest income, recognized a gain on forgiveness of debt of $151,418 and a loss on conversion of debt of $26,000. We also incurred additional expense of $59,028 for the issuance of convertible debt and a prepayment penalty on that debt of $17,819.

Net loss

We incurred a net loss of $481,352 for the year ended October 31, 2022, compared to a net loss of $602,452 for the year ended October 31, 2021. Our net loss decreased due to reasons discussed above.

Liquidity and Capital Resources

Cash flow from operations

Cash used in operating activities for the year ended October 31, 2022 was $268,238 compared to $416,801 of cash used in operating activities for the year ended October 31, 2021.





Cash Flows from Investing

We used $80,000 for investing activities for the year ended October 31, 2022, which was paid to Revolution Desserts (Note 5).

Cash Flows from Financing

For the year ended October 31, 2022, we netted $2,080 from financing activities. We received $187,520 from proceeds from the sale of common stock and $113,500 for the issuance of convertible promissory notes. We repaid $153,411 on our notes payable and $106,201 towards our LOC. We also returned $39,328 that was previously received for the purchase of preferred stock. For the year ended October 31, 2021, we netted $655,472 from financing activities. We received $114,582 from proceeds from notes payable, $86,250 from the issuance of convertible debt, $168,600 from the sale of preferred stock, $540,000 from the sale of common stock and $30,570 from related party loans. We repaid $142,391 of a note payable, $111,569 back for the convertible debt and the related partly loans of $30,570 during the same period.





Critical Accounting Policies

Refer to Note 2 of our financial statements contained elsewhere in this Form 10-K for a summary of our critical accounting policies and recently adopting and issued accounting standards.

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