Forward-Looking Statements

Certain statements made in this quarterly report on Form 10-Q are "forward-looking statements" in regard to the plans and objectives of management for future operations. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the registrant to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements included herein are based on current expectations that involve numerous risks and uncertainties. The Company's plans and objectives are based, in part, on assumptions involving the continued expansion of business. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Although the Company believes its assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance the forward-looking statements included in this quarterly report will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the registrant or any other person that the objectives and plans of the registrant will be achieved.

Substantial risks exist with respect to an investment in the Company. These risks include but are not limited to, those factors discussed in our Annual Report on Form 10-K for the fiscal year ended August 31, 2022, filed with the Securities and Exchange Commission ("Commission") on November 17, 2022. More broadly, these factors include, but are not limited to:





  ? We have incurred significant losses and expect to incur future losses;




  ? We have limited operating history and limited business growth;




  ? Potential significant dilution resulting from the issuance of new securities
    for any funding, debt conversion
    or any business combination.




Description of Business

Plasma Innovative Inc., a Nevada corporation, were incorporated on July 22, 2021. We are an emerging cold plasma application company. We intend to use our proprietary, cold plasma technology to treat crops and plant seeds for agriculture. We believe that treated seeds yield healthier and more productive plants and crops. One of our directors has spent the last 16 years testing and developing this technology, which has been assigned to the Company.

We have begun the assembly and construction of our initial cold plasma processing unit which we will use for test purposes.

Plasma is called the fourth state of matter after gas, solid and liquid. It was identified by Sir William Crooks in 1879. Plasma is roughly defined as a collection of equal positive and negative charge carriers and has zero total charge. Mr. Shao, our director, has spent a number of years developing the application of cold plasma for the agriculture industry. In 2015, through his own internal testing, he discovered that cold plasma can interact with living organisms (biomolecules), thereby enabling living organisms (biomolecules) to obtain energy. Our process applies radio-frequency lighting supplied by the plasma source in a low-pressure vacuum environment to affect the seeds at the molecular level. As the plant life cycle develops from seed to yield bearing plants, our internal tests have indicated that the plants are healthier, demonstrating superior qualities over conventional, untreated seeds.





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Although the favorable characteristics of our plasma process have been supported by our own internal testing, the results have not been corroborated by third party, independent tests.





RESULTS OF OPERATIONS

For both of the three months ended November 30, 2022 and 2021, we did not recognize any revenues from operations.

For the three months ended November 30, 2022 and 2021, we had a net loss from operations of $7,500 and $22,368 related to administrative expenses which consists primarily of professional fees. The decrease in professional fees for the current quarter is due to the payments related to Company's Form S-1 filing which occurred last fiscal year. We did not have a similar filing during the current fiscal year.

We will continue to explore and advance the potential collaborations with agriculture departments of large universities within the State of Pennsylvania. We are hopeful that these universities will participate in the testing of our technology, which we believe will lead to a prospective client base of larger farmers greenhouses and nurseries in the area and state.

In early 2022, we began collaborating with a Chinese plasma company to apply our technology for the reduction of chemicals and pesticides on herbs and teas grown in China. In addition, in October 2022, the Company entered into an agreement with the Chinese plasma company to further explore the use of the technology for Chinese herbs and teas. Under the agreement, the parties will attempt to mutually agree on the testing protocols and the equipment design for a new plasma plant. If the parties reach an agreement on such plans, the Chinese company will pay the company the sum of $10,000 as an upfront fee. In addition, the Chinese company will pay for all costs associated with the design, assembly and production of the new plasma plant. Once the plant is operational, the Company will be entitled to receive 20% of all service fees received by the Chinese company for the treatment of herbs using the technology.





Net Loss

For the three months ended November 30, 2022 and 2021, the Company had a net loss of $7,500 and $22,368, respectively, for the reasons discussed above.

Liquidity and Capital Resources

The Company had $75,347 in working capital as of November 30, 2022 compared with $82,773 as of August 31, 2022. The decrease is due to funding the operating loss of the Company for the current quarter.

Our primary uses of cash have been for operations. The main sources of cash have been from the private placement of our common stock. The following trends are reasonably likely to result in a material decrease in our liquidity over the near to long term:





  ? The need for additional equipment,




  ? Development of a Company website,




  ? Increases in advertising and marketing in order to attempt to generate more
    revenues, and




  ? The cost of being a public company.




Cash Flows

The following is a summary of the Company's cash flows from operating and financing activities for the nine months ended November 30, 2022 and 2021:





                                         Three Month Ended       Three Month Ended
                                         November 30, 2022       November 30, 2021
Net Cash Used in Operating Activities   $            (5,358 )   $           (11,303 )
Net Cash Used in Investing Activities                     -                 (1,289)
Net Change in Cash                      $            (5,358 )   $          (12,480)




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Operating Activities

During the three months ended November 30, 2022, the Company had a net loss of $7,491 and after adjusting for accounts payable increase and depreciation expense net cash used in operating activities was $(5,358). By comparison, during the three months period ended November 30, 2021, the Company had a net loss of $22,368 and after adjusting for prepaid expense and depreciation, net cash used in operating activities of $(11,303) for the period.





Investing Activities

During the three months ended November 30, 2022, the Company had no investing activities. By comparison, during the three months period ended November 30, 2021, the Company has purchase of property, plant and equipment of $(1,289).





Cash Used

During the three months ended November 30, 2022 and 2021, the Company has net cash used $5,358 and $12,480, respectively for the reasons discussed above.

Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company's financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.





Contractual Obligations

None.

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