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Pursuant to the Company’s acquisition of Regentys on January 7, 2019 to acquire a 51% interest, the Company was issued 12,048,161 shares of Regentys common stock. As of January 31, 2020, Regentys had a total of 18,623,278 shares of common stock and 2,793,192 Series A voting preferred stock for a total of 21,416,470 total voting shares outstanding. As such, there are 9,368,309 of shares that belong to non-controlling interest shareholders which represents a 43.74% non-controlling interest
Pursuant to the Company’s acquisition of Olaregen on January 7, 2019 to acquire a 51% interest, the Company was issued 3,282,632 shares of Olaregen common stock from Olaregen shareholders. In May 2019, the Company issued 4,000,000 shares of common stock contributed and provided by the Friends of Generex Trust and a $2 million note payable for the acquisition of 592,683 shares of Series A Preferred Stock of Olaregen pursuant to a Stock Purchase Agreement entered into January 14, 2019 subject to the approval of the Board of Directors of Olaregen and consummated on May 10, 2019. The provided shares by the Friends of Generex Trust were already issued and outstanding and did not result in any expense of the Company. Since these shares were transferred, to the shareholders of Olaregen, by an existing shareholder to settle an obligation of the Company, the value of the shares provided by the Friends of the Generex Trust to settle the debt was reflected in the financial statements as an addition to contributed (paid-in) capital.
0.001
0.001
1000000
1000000
40000000
2100000
5102040
36296849
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12922360
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0.0016
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240000000
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60772618
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60205065
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0.24
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0.001
0.001
0.001
0.392
0.392
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5102040
15306120
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356710
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50000
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Use of Estimates</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in
conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results may differ from those estimates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><b>Business Combinations</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-bottom: 0; margin-left: 0; background-color: white">Business
combinations are accounted for using the acquisition method of accounting. Acquisition cost is measured as the aggregate of the
fair value at the date of acquisition of the assets given, equity instruments issued, or liabilities incurred or assumed. Acquisition
related costs are expensed as incurred (except for those costs arising on the issue of equity instruments which are recognized
directly in equity). Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are
measured at fair value on the acquisition date. Goodwill is measured as the excess of the acquisition cost and the amount of any non-controlling interest,
over the fair value of the identifiable net assets acquired.</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Three months ended October 31,</b></font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt"><b>Revenue Source</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2019</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 58%"><font style="font-size: 10pt">Product sales</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">88,435</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">713,405</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Management services</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">8,256</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Total Revenue</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">88,435</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">721,661</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Inventory consists of the following components:</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3" style="text-align: center"><font style="font-size: 10pt"><b>October 31,</b></font></td>
<td> </td>
<td colspan="3" style="text-align: center"><font style="font-size: 10pt"><b>July 31,</b></font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 58%"><font style="font-size: 10pt">Raw materials</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">182,722</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">182,722</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Finished goods</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><font style="font-size: 10pt">535,902</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">559,534</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Total Inventory</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">718,624</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">742,256</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment, net consisted of the
following:</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3" style="text-align: center"><font style="font-size: 10pt"><b>October 31,</b></font></td>
<td> </td>
<td colspan="3" style="text-align: center"><font style="font-size: 10pt"><b>July 31,</b></font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 58%"><font style="font-size: 10pt">Computers and technological assets</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">50,205</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">53,314</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Machinery and equipment</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">317,751</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">329,977</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td><font style="font-size: 10pt">Furniture and fixtures</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">18,725</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">18,725</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Leasehold Improvements</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">16,596</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">386,681</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">418,612</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Less accumulated depreciation</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt; text-align: right"><font style="font-size: 10pt">(211,168</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(204,944</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">175,513</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">213,668</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
29700
29700
123230
0
238759
0
0
52912
2000000
0
1850000
0
1500000
12393
3313
3499415
2000000
7005416
535902
559534
182722
182722
211168
204944
386681
418612
50205
317751
18725
0
53314
329977
18725
16596
2831757
5332
458202
500914
520564
654190
692555
255080
-1077086
-60000
20000
10709655
11591661
9958563
10666703
8483393
10079449
150000
0.001
5102040
15306122
5112463
15337389
9142973
9142973
30612240
29592825
538084
1911487
2146875
6222210
0
0.82
P7Y6M7D
P5Y11M15D
P9Y10M3D
P6Y9M
1.483
1.488
0
1750000
1750000
4082767
7479257
1.06
0.64
0.35
0
0.79
0.59
P0M
P48M
0
0.001
0.19
P2Y2M12D
P4Y11M26D
7546985
1892595
5662190
3480783
9142973
90562863
35968395
16867885
12922360
60772618
5061647
9339195
21567553
306939
306939
The Agreement, among other things, consists of the Joint Entity providing 100% funding for the clinical development, manufacturing and commercial registration of the Vaccine for China and paying Generex licensing and royalty fees as follows: 1. Licensing Fee: $5,000,000 upfront fee due upon the execution of the Agreement; and then upon a successfully approved Vaccine, and an additional $20,000,000 from the net profits from the Joint Entity. 2. Royalty Fee: Once the Vaccine comes on to market for the first commercial sale, then the Joint Entity shall:
82780
273000
5112463
15337389
9142973
29592825
1502122
1502122
9142973
6222210
366667
2459053
0
49305
538084
1911487
1911487
1911487
538084
538084
65762
2000000
0
1221852
787458
787458
787458
51
1221801
1221852
51130
1850000
-1850000
150000
130135
1127000
1530000
P5Y
P5Y
6222210
0.45
1210859
1850000
1850000
-2378614
-538084
-1840530
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>Note 2 – Summary of Significant
Accounting Policies:</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Basis of Presentation</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying unaudited condensed consolidated
financial statements of the Company and its subsidiaries have been prepared in accordance with U.S. GAAP for interim financial
information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments,
which include only normal recurring adjustments, considered necessary for a fair presentation have been included.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s fiscal year ends on July 31
of each calendar year. Each reference below to a fiscal year refers to the fiscal year ending in the calendar year indicated.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Operating results for the three months ended
October 31, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2021.
The balance sheet on October 31, 2020 does not include all of the information and footnotes required by U.S. GAAP for complete
financial statements. Therefore, these condensed financial statements should be read in conjunction with the Company’s audited
financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended July 31, 2020
as filed with the U.S. Securities and Exchange Commission (“SEC”).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Use of Estimates</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in
conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results may differ from those estimates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><b>Business Combinations</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-bottom: 0; margin-left: 0; background-color: white">Business
combinations are accounted for using the acquisition method of accounting. Acquisition cost is measured as the aggregate of the
fair value at the date of acquisition of the assets given, equity instruments issued, or liabilities incurred or assumed. Acquisition
related costs are expensed as incurred (except for those costs arising on the issue of equity instruments which are recognized
directly in equity). Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are
measured at fair value on the acquisition date. Goodwill is measured as the excess of the acquisition cost and the amount of any non-controlling interest,
over the fair value of the identifiable net assets acquired.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Revenue Recognition</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0; margin-right: 0; margin-left: 0">It is
the Company’s policy that revenues from product sales is recognized in accordance with ASC 606 “Revenue Recognition.” Five
basic steps must be followed before revenue can be recognized; (1) Identifying the contract(s) with a customer that creates enforceable
rights and obligations; (2) Identifying the performance obligations in the contract, such as promising to transfer goods or services
to a customer; (3) Determining the transaction price, meaning the amount of consideration in a contract to which an entity expects
to be entitled in exchange for transferring promised goods or services to a customer; (4) Allocating the transaction price to the
performance obligations in the contract, which requires the company to allocate the transaction price to each performance obligation
on the basis of the relative standalone selling prices of each distinct good or services promised in the contract; and (5) Recognizing
revenue when (or as) the entity satisfies a performance obligation by transferring a promised good or service to a customer. The
amount of revenue recognized is the amount allocated to the satisfied performance obligation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0; margin-right: 0; margin-left: 0">Revenue
from NGDx is recognized upon payment at the time the product(s) is released (shipment delivered using a common carrier), and the
control is transferred which is simultaneous to when payment received and accepted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Revenue from product sales of Olaregen’s
Excellagen® is recorded at the net sales price, or “transaction price,” which includes estimates of variable consideration
that result from coupons, discounts, chargebacks and distributor fees, processing fees, as well as allowances for returns and government
rebates. Revenue from product sales of Pantheon medical surgical kits used in surgical procedures is recorded all revenue is recognized
at a point in time, generally when title of the product and control is transferred to the client which occurs upon the completion
of surgical procedure when the product utilized and the medical facility provides a final list of products consumed. The Company
constrains revenue by considering factors that could otherwise lead to a probable reversal of revenue. Where appropriate, the Company
utilizes the expected value method to determine the appropriate amount for estimates of variable consideration based on factors
such as the Company’s historical experience, contractual arrangement and specific known market events and trends. Collectability
of revenue is reasonably assured based on historical evidence of collectability between the Company and its customers.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Revenue from the provision of management
services is recognized in accordance with the contractual terms of the relationship (item i); however, the current agreements
in place typically specify that a percentage of the gross margin associated with the third-parties’ sales that the Company
facilitates is to be remitted (iii), and as such, the revenue is considered earned upon completion of the third parties’
sales of such products (iv).</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Three months ended October 31,</b></font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt"><b>Revenue Source</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2019</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 58%"><font style="font-size: 10pt">Product sales</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">88,435</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">713,405</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Management services</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">8,256</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Total Revenue</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">88,435</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">721,661</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Provisions for estimated sales returns
and uncollectible accounts are recorded in the period in which the related sales are recognized based on historical and anticipated
rates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Adoption of New Accounting Standards</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In January 2017, the FASB issued ASU 2017-04, <i>Simplifying
the Test for Goodwill Impairment </i>(Topic 350), which eliminates Step 2 from the goodwill impairment test. Instead, an entity
should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying
amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value,
not to exceed the total amount of goodwill allocated to the reporting unit. The Company has adopted the standard effective August
1, 2020. The adoption of this ASU had no material impact on its consolidated financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Recently Issued Accounting Standards</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In June 2016, the Financial Accounting Standards
Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit
Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) and also issued subsequent
amendments to the initial guidance: ASU 2018-19, ASU 2019-04, and ASU 2019-05 (collectively, “Topic 326”). Topic 326
requires measurement and recognition of expected credit losses for financial assets held. The Company will be required to adopt
this ASU for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The adoption
of Topic 326 is not expected to have a material on the Company’s consolidated financial statements and financial statement
disclosures.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2020, the FASB issued ASU No. 2020-06
(“ASU 2020-06”) “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and
Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in
an Entity’s Own Equity.” ASU 2020-06 will simplify the accounting for convertible instruments by reducing the
number of accounting models for convertible debt instruments and convertible preferred stock. Limiting the accounting models will
result in fewer embedded conversion features being separately recognized from the host contract as compared with current GAAP.
Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are
not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope
exception from derivative accounting and (2) convertible debt instruments issued with substantial premiums for which the premiums
are recorded as paid-in capital. ASU 2020-06 also amends the guidance for the derivatives scope exception for contracts in an entity’s
own equity to reduce form-over-substance-based accounting conclusions. ASU 2020-06 will be effective January 1, 2024, for the Company.
Early adoption is permitted, but no earlier than January 1, 2021, including interim periods within that year.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><u>Note 4 – Inventory</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Inventory consists of the following components:</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3" style="text-align: center"><font style="font-size: 10pt"><b>October 31,</b></font></td>
<td> </td>
<td colspan="3" style="text-align: center"><font style="font-size: 10pt"><b>July 31,</b></font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 58%"><font style="font-size: 10pt">Raw materials</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">182,722</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">182,722</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Finished goods</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">535,902</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">559,534</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Total Inventory</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">718,624</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">742,256</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>Note 5 – Property and Equipment</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment, net consisted of the
following:</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="3" style="text-align: center"><font style="font-size: 10pt"><b>October 31,</b></font></td>
<td> </td>
<td colspan="3" style="text-align: center"><font style="font-size: 10pt"><b>July 31,</b></font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 58%"><font style="font-size: 10pt">Computers and technological assets</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">50,205</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">53,314</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Machinery and equipment</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">317,751</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">329,977</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td><font style="font-size: 10pt">Furniture and fixtures</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">18,725</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">18,725</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Leasehold Improvements</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">16,596</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">386,681</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">418,612</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Less accumulated depreciation</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(211,168</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(204,944</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">175,513</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">213,668</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Depreciation expense related to property and
equipment for the three months ended October 31, 2020 and 2019 was $30,831 and $48,847, respectively. Additionally, the Company
disposed of $7,324 worth of fixed assets during the three months ended October 31, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><b><u>Note 6 – Goodwill and Intangible
Assets </u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The goodwill was recognized as a result
of the acquisitions of Veneto, Regentys and Olaregen in fiscal year 2019. Goodwill was $<font style="background-color: white">34,489,342
</font>as of October 31, 2020 and July 31, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Intangible assets consist of the following
at:</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt"><b>Estimated</b></font></td>
<td> </td>
<td colspan="3" style="text-align: center"><font style="font-size: 10pt"><b>October 31,</b></font></td>
<td> </td>
<td colspan="3" style="text-align: center"><font style="font-size: 10pt"><b>July 31,</b></font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Useful Lives</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 22%"><font style="font-size: 10pt">In-Process Research & Development</font></td>
<td style="width: 5%"> </td>
<td style="width: 21%; text-align: center"> </td>
<td style="width: 5%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 19%; text-align: right"><font style="font-size: 10pt">6,302,427</font></td>
<td style="width: 1%"> </td>
<td style="width: 5%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 19%; text-align: right"><font style="font-size: 10pt">6,302,427</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Non-compete agreements</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">3 years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,210,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,210,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td><font style="font-size: 10pt">Developed software/technology</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">5 years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">131,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">131,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Intellectual Property</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">5 years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">2,459,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">2,459,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td><font style="font-size: 10pt">Patents</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">20 years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">51,274</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">51,274</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td style="text-align: center"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">10,153,701</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">10,153,701</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Less accumulated amortization</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(1,019,517</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(788,175</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: center"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">9,134,184</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">9,365,526</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Intangible assets are amortized on a straight-line
basis over the useful lives of the assets. The Company is currently not amortizing the in-process research and development until
it becomes commercially viable and placed in service. At the time when the intangible assets are placed in service the Company
will determine a useful life. As of October 31, 2020, the in-process research and development (“IPR&D”) of $6,302,427
in the aggregate was a combination of $2,911,377 obtained through the acquisition of HDS and $3,391,050 obtained through the acquisition
of Regentys. None of the research and development of the underlying IPR&D have been abandoned, nor was it determined to be
impaired by management as a result of COVID-19. On March 20, 2020, the Company was recently awarded a Blanket Purchase Agreement
(BPA) contract from the National Strategic Acquisition Center (SAC). The VA’s National Contract and National BPA programs
are used by VA medical centers, related facilities, specific State Veterans Homes, and other Federal facilities to procure select
products based on clinical evidence, patient outcomes, and economic cost to the VA hospitals. The SAC awarded Olaregen’s
Excellagen will expedite the purchasing of Excellagen at over 165 VA medical centers across the U.S. and Puerto Rico. This approval
process was critical to the Company’s ability to determine that IPR&D associated with Olaregen, valued at $2,459,000,
no longer has an indefinite life subject to amortization. The Company determined Olaregen’s IPR&D useful life to be 5
years.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">Amortization expense amounted to $231,342
and $154,426 for the three months ended October 31, 2020 and 2019, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">The estimated amortization expense
remainder of the current fiscal year and for the next five years and thereafter is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="vertical-align: top"><font style="font-size: 10pt"><b>Year Ending July 31,</b></font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>Amount</b></font></td></tr>
<tr style="background-color: silver">
<td style="vertical-align: top; width: 45%"><font style="font-size: 10pt">For the nine months ended July 31, 2021</font></td>
<td style="vertical-align: bottom; width: 10%"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 43%; text-align: right"><font style="font-size: 10pt">692,555</font></td>
<td style="vertical-align: bottom; width: 1%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top"><font style="font-size: 10pt">2022</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">654,190</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: silver">
<td style="vertical-align: top"><font style="font-size: 10pt">2023</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">520,564</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top"><font style="font-size: 10pt">2024</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">500,914</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: silver">
<td style="vertical-align: top"><font style="font-size: 10pt">2025</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">458,202</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top"><font style="font-size: 10pt">Thereafter</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">5,332</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td></tr>
<tr style="background-color: silver">
<td style="vertical-align: top"><font style="font-size: 10pt"> Total</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2,831,757</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>Note 8 – Derivative Liability</u> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company issued debts that consist of the
issuance of convertible notes with variable conversion provisions. The conversion terms of the convertible notes are variable based
on certain factors, such as the future price of the Company’s common stock. The number of shares of common stock to be issued
is based on the future price of the Company’s common stock. The number of shares of common stock issuable upon conversion
of the promissory note is indeterminate. Due to the fact that the number of shares of common stock issuable could exceed the Company’s
authorized share limit, the equity environment is tainted, and all additional convertible debentures and warrants are included
in the value of the derivative liabilities. Pursuant to ASC 815-15 Embedded Derivatives, the fair values of the variable conversion
options and warrants and shares to be issued were recorded as derivative liabilities on the issuance date and revalued at each
reporting period.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Based on the various convertible notes described
in Note 7, and the sale of common stock in a private investment in public equity (“PIPE”) described in Note 9, the
fair value of applicable derivative liabilities on notes, warrants and change in fair value of derivative liability are as follows
as of October 31, 2020:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Derivative Liability - Convertible Notes</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Derivative Liability - Warrants</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Total</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 46%"><font style="font-size: 10pt">Balance as of July 31, 2020</font></td>
<td style="width: 5%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">742,391</font></td>
<td style="width: 1%"> </td>
<td style="width: 5%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">574,366</font></td>
<td style="width: 1%"> </td>
<td style="width: 5%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">1,316,757</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 10pt"><font style="font-size: 10pt">Additions during the period</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">21,574,216</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">21,574,216</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-left: 10pt"><font style="font-size: 10pt">Change in fair value</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">111,150</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(4,131,002</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(4,019,852</font></td>
<td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 10pt"><font style="font-size: 10pt">Change due to conversion / exercise</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(538,084</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(1,840,530</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(2,378,614</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Balance as of October 31, 2020</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">315,457</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">16,177,050</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">16,492,507</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>Note 10 – Redeemable Non-Controlling
Interest</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to the Company’s acquisition
of 51% of the outstanding capital stock of Regentys, Regentys had authorized 7,500,000 shares of redeemable Series A Convertible
Preferred Stock (“Preferred Stock A”), with a par value of $0.0001 and redemption value of $0.65 per share of which
2,793,192 Preferred Stock A was outstanding as of the date of acquisition and as of January 31, 2020. Preferred Stock may be converted
into common stock at the initial conversion ratio of 1:1 which ratio shall be adjusted in accordance with stock dividends, splits,
combinations and other similar events, including the sale of additional shares of common or preferred stock and the holders of
Preferred Stock A are entitled to vote, together with the holders of Regentys common stock, on all matters submitted to stockholders
of Regentys for a vote. At any time after November 1, 2026, the holders of the Company’s Series A Preferred Stock will
have the right to require the Company to redeem all or a portion of their shares for cash at a redemption price equal to its liquidation
value. Accordingly, this Preferred Stock A was valued to be $4,073,898 at the time of acquisition of Regentys and reclassified
as Redeemable Non-Controlling Interest outside of stockholders’ deficit on the consolidated balance sheets.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>Note 12 - Warrants</u>:</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of July 31, 2020, the Company had 567,553
warrants outstanding. On August 4, 2020, the Company initially issued 30,612,240 warrants in the aggregate pursuant to the Private
Placement (see Note 9 - Stockholders’ Equity, <i>Sale of common stock in a private placement (PIPE), net of fees and exercise
of warrants); </i>and 29,592,825 additional warrants as a result, of an Interim Reset Date on September 28, 2020, and Second Trigger
Date on October 12, 2020, and the additional warrants were issued, and the exercise price was adjusted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following is a table of warrants issued
in connection with the PIPE deal during the three months ended October 31, 2020:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Initial Exercise Price</font></td>
<td style="padding-bottom: 1pt; text-align: center"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Initial Warrants Issued</font></td>
<td style="padding-bottom: 1pt; text-align: center"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Additional Warrants Issued</font></td>
<td style="padding-bottom: 1pt; text-align: center"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Reset Exercise Price</font></td>
<td style="padding-bottom: 1pt; text-align: center"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Outstanding Warrants as of October 31, 2020</font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 40%"><font style="font-size: 10pt">Series A Warrants</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">0.392</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">5,102,040</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">5,112,463</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">0.196</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">10,214,503</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Series B Warrants</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.392</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">15,306,120</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">15,337,389</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.196</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">30,643,509</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Series C Warrants</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">0.539</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">10,204,080</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">9,142,973</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">0.281</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">19,347,053</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Total Warrants from PIPE deal</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">30,612,240</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">29,592,825</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">60,205,065</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 28, 2020, the Interim Reset Date,
5,662,190 Series D Warrants were issued and exercised at $0.001 per share; and on October 12, 2020, the Second Trigger Date on
October 12, 2020, 3,480,783 Series D Warrants were issued and exercised at $0.001 per share, for an aggregate of 9,142,973 warrants
issued and exercised.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A summary of the Company’s warrant activities
is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt">Number of Warrants</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt">Weighted Average Exercise Price per Share</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt">Weighted Average Remaining Life (Years)</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt">Aggregate Intrinsic Value</font></td></tr>
<tr style="background-color: silver">
<td style="vertical-align: top; width: 26%"><font style="font-size: 10pt">Outstanding - July 31, 2020</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 16%; text-align: right"><font style="font-size: 10pt">567,553</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 16%; text-align: right"><font style="font-size: 10pt">2,50</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 15%; text-align: right"><font style="font-size: 10pt">2.20</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 15%; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="vertical-align: bottom; width: 1%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; padding-left: 10pt"><font style="font-size: 10pt">Issued</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">69,348,038</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.19</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">5</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">7,546,985</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: silver">
<td style="vertical-align: top; padding-left: 10pt"><font style="font-size: 10pt">Exercised</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(9,142,973</font></td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">)</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.001</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">5</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,892,595</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="border-bottom: black 1pt solid; vertical-align: top; padding-left: 10pt"><font style="font-size: 10pt">Expired</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td></tr>
<tr style="background-color: silver">
<td style="vertical-align: top"><font style="font-size: 10pt">Outstanding – October 31, 2020</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">60,772,618</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.24</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">4.99</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">5,654,389</font></td>
<td style="vertical-align: bottom"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>Note 13 - Net Income Per Share (“EPS”):</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic net income or loss per share is calculated
using the weighted average number of common shares outstanding during the period. Diluted earnings per common share is the same
as basic earnings per common share because, as the Company incurred a net loss during each period presented, the potentially dilutive
securities from the assumed exercise of all outstanding stock options, warrants and conversion notes payables, would have an anti-dilutive
effect.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following outstanding shares of potentially
dilutive securities were excluded from the computation of diluted net loss per share attributable to common shareholders because
including them would have been anti-dilutive for the years ended October 31, 2020 and 2019, respectively.</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Three Months Ended October 31,</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2019</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 58%"><font style="font-size: 10pt">Convertible debt</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">16,867,885</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">5,061,647</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Stock options</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">12,922,360</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">9,339,195</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Warrants</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">60,772,618</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">21,567,553</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Total</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">90,562,863</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">35,968,395</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><u>Note 14 – Income Taxes:</u></b> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has incurred losses since inception,
which have generated net operating loss (“NOL”) carryforwards. The NOL carryforwards arise from both United States
and Canadian sources. Pre-tax loss arising from domestic operations (United States) were $10,982,942 and $34,291,142 for the three
months ended October 31, 2020 and the year ended July 31, 20120, respectively. Pre-tax (losses)/income arising from foreign operations
(Canada) were ($6,134) and $59,049 for the three months ended October 31, 2020 and the year ended July 31, 2020, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of October 31, 2020, the Company has NOL
carryforwards in Generex Biotechnology Corporation of approximately $219.7 million, of which $189.5 million will expire in 2021
through 2038, and $30.3 million will not expire. Generex Pharmaceuticals Inc. has NOL carryforwards of approximately $34.4 million,
which expire in 2026 through 2041. NGIO has NOL carryforwards of approximately $35.7 which will expire in 2021 through 2038. Regentys
Corporation has NOL carryforwards of approximately $6.6 million, of which $5.0 million will expire in 2033 through 2038 and $1.6
million will not expire. Olaregen Therapeutics, Inc. has NOL carryforwards of $4.1 million which will not expire. Veneto has NOL
carryforwards of $10.6 million which will not expire. Some of these loss carryforwards are subject to limitation due to the acquisition
of Regentys, Olaregen and NGIO and may be limited in future years due to certain structural ownership changes which have occurred
over the last several years related to the Company’s equity and convertible debenture financing transactions.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of October 31, 2020, the Company had no
tax benefits which have not been fully allowed for, and no adjustment to its financial position, results of operations or cash
flows was required. The Company has deferred tax assets of over $73 million with a full allowance equal to the to the amount of
the deferred tax asset. The Company does not expect that unrecognized tax benefits will increase within the next twelve months.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company records interest and penalties
related to tax matters within other expense on the accompanying consolidated statement of operations. These amounts are not material
to the consolidated financial statements for the years presented. Generally, tax years 2017 to 2020 remain open to examination
by the Internal Revenue Agency or other tax jurisdictions to which the Company is subject. The Company’s Canadian tax returns
are subject to examination by federal and provincial taxing authorities in Canada. Generally, tax years 2012 to 2020 remain open
to examination by the Canada Revenue Agency or other tax jurisdictions to which the Company is subject.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 27, 2020, the CARES Act was enacted
and signed into law in the U.S. in response to the COVID-19 pandemic. One of the provisions of this law is the temporary suspension
of the 80% limitation on the utilization of net operating losses generated in taxable years beginning after December 31, 2017 and
before January 1, 2021. Additionally, the CARES Act allows The Company to carryback net operating losses generated in taxable years
beginning after December 31, 2017 and before January 1, 2021 to the five previous periods if the company has taxable income in
the carryback years. Neither of these modifications are expected to apply to the Company due to the sustained history of losses.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Basis of Presentation</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying unaudited condensed consolidated
financial statements of the Company and its subsidiaries have been prepared in accordance with U.S. GAAP for interim financial
information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments,
which include only normal recurring adjustments, considered necessary for a fair presentation have been included.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s fiscal year ends on July 31
of each calendar year. Each reference below to a fiscal year refers to the fiscal year ending in the calendar year indicated.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Operating results for the three months ended
October 31, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2021.
The balance sheet on October 31, 2020 does not include all of the information and footnotes required by U.S. GAAP for complete
financial statements. Therefore, these condensed financial statements should be read in conjunction with the Company’s audited
financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended July 31, 2020
as filed with the U.S. Securities and Exchange Commission (“SEC”).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Revenue Recognition</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0; margin-right: 0; margin-left: 0">It is
the Company’s policy that revenues from product sales is recognized in accordance with ASC 606 “Revenue Recognition.” Five
basic steps must be followed before revenue can be recognized; (1) Identifying the contract(s) with a customer that creates enforceable
rights and obligations; (2) Identifying the performance obligations in the contract, such as promising to transfer goods or services
to a customer; (3) Determining the transaction price, meaning the amount of consideration in a contract to which an entity expects
to be entitled in exchange for transferring promised goods or services to a customer; (4) Allocating the transaction price to the
performance obligations in the contract, which requires the company to allocate the transaction price to each performance obligation
on the basis of the relative standalone selling prices of each distinct good or services promised in the contract; and (5) Recognizing
revenue when (or as) the entity satisfies a performance obligation by transferring a promised good or service to a customer. The
amount of revenue recognized is the amount allocated to the satisfied performance obligation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0; margin-right: 0; margin-left: 0">Revenue
from NGDx is recognized upon payment at the time the product(s) is released (shipment delivered using a common carrier), and the
control is transferred which is simultaneous to when payment received and accepted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Revenue from product sales of Olaregen’s
Excellagen® is recorded at the net sales price, or “transaction price,” which includes estimates of variable consideration
that result from coupons, discounts, chargebacks and distributor fees, processing fees, as well as allowances for returns and government
rebates. Revenue from product sales of Pantheon medical surgical kits used in surgical procedures is recorded all revenue is recognized
at a point in time, generally when title of the product and control is transferred to the client which occurs upon the completion
of surgical procedure when the product utilized and the medical facility provides a final list of products consumed. The Company
constrains revenue by considering factors that could otherwise lead to a probable reversal of revenue. Where appropriate, the Company
utilizes the expected value method to determine the appropriate amount for estimates of variable consideration based on factors
such as the Company’s historical experience, contractual arrangement and specific known market events and trends. Collectability
of revenue is reasonably assured based on historical evidence of collectability between the Company and its customers.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Revenue from the provision of management
services is recognized in accordance with the contractual terms of the relationship (item i); however, the current agreements
in place typically specify that a percentage of the gross margin associated with the third-parties’ sales that the Company
facilitates is to be remitted (iii), and as such, the revenue is considered earned upon completion of the third parties’
sales of such products (iv).</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Three months ended October 31,</b></font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-size: 10pt"><b>Revenue Source</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2019</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 58%"><font style="font-size: 10pt">Product sales</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">88,435</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">713,405</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Management services</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">8,256</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Total Revenue</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">88,435</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">721,661</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Provisions for estimated sales returns
and uncollectible accounts are recorded in the period in which the related sales are recognized based on historical and anticipated
rates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Adoption of New Accounting Standards</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In January 2017, the FASB issued ASU 2017-04, <i>Simplifying
the Test for Goodwill Impairment </i>(Topic 350), which eliminates Step 2 from the goodwill impairment test. Instead, an entity
should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying
amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value,
not to exceed the total amount of goodwill allocated to the reporting unit. The Company has adopted the standard effective August
1, 2020. The adoption of this ASU had no material impact on its consolidated financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Recently Issued Accounting Standards</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In June 2016, the Financial Accounting Standards
Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit
Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) and also issued subsequent
amendments to the initial guidance: ASU 2018-19, ASU 2019-04, and ASU 2019-05 (collectively, “Topic 326”). Topic 326
requires measurement and recognition of expected credit losses for financial assets held. The Company will be required to adopt
this ASU for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The adoption
of Topic 326 is not expected to have a material on the Company’s consolidated financial statements and financial statement
disclosures.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2020, the FASB issued ASU No. 2020-06
(“ASU 2020-06”) “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and
Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in
an Entity’s Own Equity.” ASU 2020-06 will simplify the accounting for convertible instruments by reducing the
number of accounting models for convertible debt instruments and convertible preferred stock. Limiting the accounting models will
result in fewer embedded conversion features being separately recognized from the host contract as compared with current GAAP.
Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are
not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope
exception from derivative accounting and (2) convertible debt instruments issued with substantial premiums for which the premiums
are recorded as paid-in capital. ASU 2020-06 also amends the guidance for the derivatives scope exception for contracts in an entity’s
own equity to reduce form-over-substance-based accounting conclusions. ASU 2020-06 will be effective January 1, 2024, for the Company.
Early adoption is permitted, but no earlier than January 1, 2021, including interim periods within that year.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Intangible assets consist of the following
at:</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt"><b>Estimated</b></font></td>
<td> </td>
<td colspan="3" style="text-align: center"><font style="font-size: 10pt"><b>October 31,</b></font></td>
<td> </td>
<td colspan="3" style="text-align: center"><font style="font-size: 10pt"><b>July 31,</b></font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Useful Lives</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 22%"><font style="font-size: 10pt">In-Process Research & Development</font></td>
<td style="width: 5%"> </td>
<td style="width: 21%; text-align: center"> </td>
<td style="width: 5%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 19%; text-align: right"><font style="font-size: 10pt">6,302,427</font></td>
<td style="width: 1%"> </td>
<td style="width: 5%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 19%; text-align: right"><font style="font-size: 10pt">6,302,427</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Non-compete agreements</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">3 years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,210,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">1,210,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td><font style="font-size: 10pt">Developed software/technology</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">5 years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">131,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">131,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Intellectual Property</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">5 years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">2,459,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">2,459,000</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td><font style="font-size: 10pt">Patents</font></td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">20 years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">51,274</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">51,274</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td style="text-align: center"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">10,153,701</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">10,153,701</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Less accumulated amortization</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt; text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(1,019,517</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(788,175</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: center"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">9,134,184</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">9,365,526</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The estimated amortization expense remainder of the current fiscal
year and for the next five years and thereafter is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="vertical-align: top"><font style="font-size: 10pt"><b>Year Ending July 31,</b></font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>Amount</b></font></td></tr>
<tr style="background-color: silver">
<td style="vertical-align: top; width: 45%"><font style="font-size: 10pt">For the nine months ended July 31, 2021</font></td>
<td style="vertical-align: bottom; width: 10%"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 43%; text-align: right"><font style="font-size: 10pt">692,555</font></td>
<td style="vertical-align: bottom; width: 1%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top"><font style="font-size: 10pt">2022</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">654,190</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: silver">
<td style="vertical-align: top"><font style="font-size: 10pt">2023</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">520,564</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top"><font style="font-size: 10pt">2024</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">500,914</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: silver">
<td style="vertical-align: top"><font style="font-size: 10pt">2025</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">458,202</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top"><font style="font-size: 10pt">Thereafter</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">5,332</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td></tr>
<tr style="background-color: silver">
<td style="vertical-align: top"><font style="font-size: 10pt"> Total</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">2,831,757</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Based on the various convertible notes described
in Note 7, and the sale of common stock in a private investment in public equity (“PIPE”) described in Note 9, the
fair value of applicable derivative liabilities on notes, warrants and change in fair value of derivative liability are as follows
as of October 31, 2020:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Derivative Liability - Convertible Notes</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Derivative Liability - Warrants</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Total</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 46%"><font style="font-size: 10pt">Balance as of July 31, 2020</font></td>
<td style="width: 5%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">742,391</font></td>
<td style="width: 1%"> </td>
<td style="width: 5%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">574,366</font></td>
<td style="width: 1%"> </td>
<td style="width: 5%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">1,316,757</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 10pt"><font style="font-size: 10pt">Additions during the period</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">21,574,216</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">21,574,216</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-left: 10pt"><font style="font-size: 10pt">Change in fair value</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">111,150</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(4,131,002</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(4,019,852</font></td>
<td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 10pt"><font style="font-size: 10pt">Change due to conversion / exercise</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(538,084</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(1,840,530</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(2,378,614</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Balance as of October 31, 2020</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">315,457</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">16,177,050</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">16,492,507</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The following is a summary of the common
stock options granted, forfeited or expired and exercised under the Plan:</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Options</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Weighted Average Exercise Price per Share</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Weighted Average Remaining Life (Years)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Aggregate Intrinsic Value</font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 44%"><font style="font-size: 10pt">Outstanding - July 31, 2020</font></td>
<td style="width: 2%"> </td>
<td style="width: 1%"> </td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">8,847,025</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">0.90</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"> </td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">5.96</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">508,932</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 10pt"><font style="font-size: 10pt">Granted</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">6,222,210</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.35</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">9.84</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-left: 10pt"><font style="font-size: 10pt">Forfeited or expired</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(2,146,875</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.82</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">6.75</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 10pt"><font style="font-size: 10pt">Exercised</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td><font style="font-size: 10pt">Outstanding – October 31, 2020</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">12,922,360</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.65</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">7.52</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">130,315</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A summary of the status of the Company’s
non-vested stock options the three months ended October 31, 2020 is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; text-align: justify"><font style="font-size: 10pt"><b>Non-vested Options</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Options</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Weighted Average Grant Date Fair Value</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 58%; text-align: justify"><font style="font-size: 10pt">Non-vested on July 31, 2020</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">4,082,767</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">1.06</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 10pt; text-align: justify"><font style="font-size: 10pt">Granted</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">6,222,210</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.35</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-left: 10pt; text-align: justify"><font style="font-size: 10pt">Expired</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 10pt; text-align: justify"><font style="font-size: 10pt">Canceled</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(366,667</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.79</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-bottom: 1pt; padding-left: 10pt; text-align: justify"><font style="font-size: 10pt">Vested</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(2,459,053</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">0.59</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; text-align: justify"><font style="font-size: 10pt">Non-vested on October 31, 2020</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">7,479,257</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.64</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"> The following assumptions were used in the
Black-Scholes option-pricing model:</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">October 31, 2020</font></td></tr>
<tr style="background-color: silver">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Exercise price</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="text-align: right"><font style="font-size: 10pt">$0.31 – $0.45</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Time to expiration</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="text-align: right"><font style="font-size: 10pt">10 years</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: silver">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Risk-free interest rate</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.16% - 0.18</font></td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">%</font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; width: 75%"><font style="font-size: 10pt">Estimated volatility</font></td>
<td style="vertical-align: bottom; width: 8%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="width: 15%; text-align: right"><font style="font-size: 10pt">148.3% - 148.8</font></td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">%</font></td></tr>
<tr style="background-color: silver">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Expected dividend</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Stock price at valuation date</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="text-align: right"><font style="font-size: 10pt">$0.31 – $0.45</font></td>
<td style="vertical-align: bottom"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following is a table of warrants issued
in connection with the PIPE deal during the three months ended October 31, 2020:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Initial Exercise Price</font></td>
<td style="padding-bottom: 1pt; text-align: center"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Initial Warrants Issued</font></td>
<td style="padding-bottom: 1pt; text-align: center"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Additional Warrants Issued</font></td>
<td style="padding-bottom: 1pt; text-align: center"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Reset Exercise Price</font></td>
<td style="padding-bottom: 1pt; text-align: center"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Outstanding Warrants as of October 31, 2020</font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 40%"><font style="font-size: 10pt">Series A Warrants</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">0.392</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">5,102,040</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">5,112,463</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">0.196</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><font style="font-size: 10pt">10,214,503</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Series B Warrants</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.392</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">15,306,120</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">15,337,389</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.196</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">30,643,509</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Series C Warrants</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">0.539</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">10,204,080</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">9,142,973</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">0.281</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">19,347,053</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"><b>Total Warrants from PIPE deal</b></font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">30,612,240</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">29,592,825</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">60,205,065</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A summary of the Company’s warrant activities
is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="vertical-align: top"> </td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt">Number of Warrants</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt">Weighted Average Exercise Price per Share</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt">Weighted Average Remaining Life (Years)</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: center"><font style="font-size: 10pt">Aggregate Intrinsic Value</font></td></tr>
<tr style="background-color: silver">
<td style="vertical-align: top; width: 26%"><font style="font-size: 10pt">Outstanding - July 31, 2020</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 16%; text-align: right"><font style="font-size: 10pt">567,553</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 16%; text-align: right"><font style="font-size: 10pt">2,50</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 15%; text-align: right"><font style="font-size: 10pt">2.20</font></td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; width: 15%; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="vertical-align: bottom; width: 1%"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: top; padding-left: 10pt"><font style="font-size: 10pt">Issued</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">69,348,038</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.19</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">5</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">7,546,985</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: silver">
<td style="vertical-align: top; padding-left: 10pt"><font style="font-size: 10pt">Exercised</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">(9,142,973</font></td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">)</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.001</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">5</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">1,892,595</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="border-bottom: black 1pt solid; vertical-align: top; padding-left: 10pt"><font style="font-size: 10pt">Expired</font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="vertical-align: bottom; padding-bottom: 1pt"> </td></tr>
<tr style="background-color: silver">
<td style="vertical-align: top"><font style="font-size: 10pt">Outstanding – October 31, 2020</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">60,772,618</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">0.24</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">4.99</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">$</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-size: 10pt">5,654,389</font></td>
<td style="vertical-align: bottom"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following outstanding shares of potentially
dilutive securities were excluded from the computation of diluted net loss per share attributable to common shareholders because
including them would have been anti-dilutive for the years ended October 31, 2020 and 2019, respectively.</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Three Months Ended October 31,</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>2019</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 58%"><font style="font-size: 10pt">Convertible debt</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">16,867,885</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">5,061,647</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Stock options</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">12,922,360</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">9,339,195</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Warrants</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">60,772,618</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">21,567,553</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Total</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">90,562,863</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">35,968,395</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
Company awarded executives and employees bonus compensation of $7,005,416 to be paid in approximately $1 million in cash and $6 million in stock.
450000
3416695
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>Note 11 - Stock-Based Compensation</u>:</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Stock Option Plans</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has two stockholder-approved stock
incentive plans under which shares and options exercisable, with a range of vesting between 0 and 48 months, for shares of common
stock have been or may be granted to employees, directors, consultants and advisors. All remaining options under the 2006 Stock
Plan have expired and no shares of common stock are reserved for issuance under the 2006 Stock Plan as amended (the 2006 Plan)
and a total of 240,000,000 shares of common stock reserved for issuance under the 2017 Stock Option Plan (the 2017 Plan). As of
October 31, 2020, there were 0 and 229,077,640 shares available under the 2006 Plan and 2017 Plan, respectively. The Company issues
new shares of common stock from the shares reserved under the respective Plans upon conversion or exercise of options and issuance
of restricted shares.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">During 2019, the Company established
a Direct Stock Purchase Plan (“2019 Plan”) pursuant to which eligible participants may acquire shares of common stock
in lieu of certain cash obligations otherwise owed to participants during the 2019 calendar year. The 2019 Plan automatically terminated
on December 31, 2019. There was a total of 1,680,000 shares of common stock reserved under the plan of which no shares have been
issued.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The 2017 Plan (the Plan) is administered
by the Board of Directors (the Board). The Board is authorized to select from among eligible employees, directors, advisors and
consultants those individuals to whom options are to be granted and to determine the number of shares to be subject to, and the
terms and conditions of the options. The Board is also authorized to prescribe, amend and rescind terms relating to options granted
under the Plan. Generally, the interpretation and construction of any provision of the Plan or any options granted hereunder is
within the discretion of the Board.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The Plans provide that options may or
may not be Incentive Stock Options (ISOs) within the meaning of Section 422 of the Internal Revenue Code. Only employees of the
Company are eligible to receive ISOs, while employees and non-employee directors, advisors and consultants are eligible to receive
options which are not ISOs, i.e. “Non-Qualified Options.” The options granted by the Board in connection with its adoption
of the Plans were Non-Qualified Options. In addition, the 2006 Plan also provides for restricted stock grants. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The fair value of each option granted
is estimated on the grant date using the Black-Scholes option pricing model or the value of the services provided, whichever is
more readily determinable. The Black-Scholes option pricing model takes into account, as of the grant date, the exercise price
and expected life of the option, the current price of the underlying stock and its expected volatility, expected dividends on the
stock and the risk-free interest rate for the term of the option.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">During August and September 2020, the
Company granted 6,222,210 stock options to buy common stock, at $0.45 per share and $0.31 per share, to various officers, board
members, employees and consultants.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The following is a summary of the common
stock options granted, forfeited or expired and exercised under the Plan:</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Options</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Weighted Average Exercise Price per Share</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Weighted Average Remaining Life (Years)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">Aggregate Intrinsic Value</font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 44%"><font style="font-size: 10pt">Outstanding - July 31, 2020</font></td>
<td style="width: 2%"> </td>
<td style="width: 1%"> </td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">8,847,025</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">0.90</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"> </td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">5.96</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 10%; text-align: right"><font style="font-size: 10pt">508,932</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 10pt"><font style="font-size: 10pt">Granted</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">6,222,210</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.35</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">9.84</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-left: 10pt"><font style="font-size: 10pt">Forfeited or expired</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(2,146,875</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.82</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">6.75</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 10pt"><font style="font-size: 10pt">Exercised</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td><font style="font-size: 10pt">Outstanding – October 31, 2020</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">12,922,360</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">0.65</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">7.52</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">130,315</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The intrinsic value is calculated as
the difference between the market value and the exercise price of the shares on October 31, 2020. The market value was $0.208 based
on the closing bid price for October 31, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A summary of the status of the Company’s
non-vested stock options the three months ended October 31, 2020 is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; text-align: justify"><font style="font-size: 10pt"><b>Non-vested Options</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Options</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Weighted Average Grant Date Fair Value</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 58%; text-align: justify"><font style="font-size: 10pt">Non-vested on July 31, 2020</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">4,082,767</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">1.06</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 10pt; text-align: justify"><font style="font-size: 10pt">Granted</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">6,222,210</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.35</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-left: 10pt; text-align: justify"><font style="font-size: 10pt">Expired</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 10pt; text-align: justify"><font style="font-size: 10pt">Canceled</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(366,667</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.79</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-bottom: 1pt; padding-left: 10pt; text-align: justify"><font style="font-size: 10pt">Vested</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(2,459,053</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">0.59</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; text-align: justify"><font style="font-size: 10pt">Non-vested on October 31, 2020</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">7,479,257</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.64</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">There were 5,443,103 vested common stock
options under the Plan as of October 31, 2020. The compensation expense was $1,211,007 for the three months ended October 31, 2020.
The Company had $3,936,129 of unrecognized compensation costs related to non-vested share-based compensation arrangements granted
under the Plan on October 31, 2020 to be recognized over an average of 2.09 years.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The Company estimated the fair value
of each stock option on the grant date using a Black-Scholes option-pricing model. Black-Scholes option-pricing models requires
the Company to make predictive assumptions regarding future stock price volatility, recipient exercise behavior, and dividend yield.
The Company estimated the future stock price volatility using the historical volatility over the expected term of the option. The
following assumptions were used in the Black-Scholes option-pricing model:</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt">October 31, 2020</font></td></tr>
<tr style="background-color: silver">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Exercise price</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="text-align: right"><font style="font-size: 10pt">$0.31 – $0.45</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Time to expiration</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="text-align: right"><font style="font-size: 10pt">10 years</font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: silver">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Risk-free interest rate</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.16% - 0.18</font></td>
<td style="vertical-align: bottom"><font style="font-size: 10pt">%</font></td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom; width: 75%"><font style="font-size: 10pt">Estimated volatility</font></td>
<td style="vertical-align: bottom; width: 8%"> </td>
<td style="vertical-align: bottom; width: 1%"> </td>
<td style="width: 15%; text-align: right"><font style="font-size: 10pt">148.3% - 148.8</font></td>
<td style="vertical-align: bottom; width: 1%"><font style="font-size: 10pt">%</font></td></tr>
<tr style="background-color: silver">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Expected dividend</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="text-align: right"><font style="font-size: 10pt">—  </font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="vertical-align: bottom"><font style="font-size: 10pt">Stock price at valuation date</font></td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom"> </td>
<td style="text-align: right"><font style="font-size: 10pt">$0.31 – $0.45</font></td>
<td style="vertical-align: bottom"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><u>Note 15 - Subsequent Events:</u></b> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The Company has evaluated subsequent
events occurring after the balance sheet date through the date the unaudited condensed interim consolidated financial statements
were issued.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 9, 2020 and November 18, 2020,
the Company exercised put options pursuant to an Equity Purchase Agreement with Oasis for an aggregate of 1,750,000 shares of Generex
common stock for $306,939 of net proceeds.</p>
<p style="font: 10pt/10.45pt Times New Roman, Times, Serif; margin: 0 6.55pt 0 0; text-align: justify"> </p>
<p style="font: 10pt/10.45pt Times New Roman, Times, Serif; margin: 0 6.55pt 0 0; text-align: justify">On November 13, 2020, Generex
Biotechnology Corporation and its majority owned subsidiary NuGenerex Immuno-Oncology, Inc., (collectively “Generex”)
signed The Ii-Key Innovative Vaccine Development Agreement (the “Agreement”) with Beijing Youfeng International Consulting
Co., Ltd (“BYIC”), National Institute for Viral Disease Control and Prevention, Chinese Centre for Disease Control
and Prevention (“NIVDC”) and Beijing Guoxin Haixiang Equity Investment Partnership (“BGHEIP” and together
with BYIC and NIVDC, the “China Partners”) to set up a joint research team and a joint entity in China (the “Joint
Entity”) that shall jointly develop and industrialize the Generex internationally patented Ii-Key innovative technology for
a SARS-CoV-2 coronavirus peptide vaccine (the “Vaccine”) and other vaccines in the People’s Republic of China
(“China”) and for Generex to provide the Joint Entity with an exclusive license to use its intellectual property; technical
know-how, pre-clinical and clinical data and background materials, in each case, relating to Ii-Key-SARS-CoV-2 technology in the
People’s Republic of China, including Hong Kong Special Administrative Region and Macau Special Administrative Region, but
excluding the Islands of Taiwan (the “Licensed Territory”). The Agreement, among other things, consists of the Joint
Entity providing 100% funding for the clinical development, manufacturing and commercial registration of the Vaccine for China
and paying Generex licensing and royalty fees as follows:</p>
<p style="font: 10pt/10.45pt Times New Roman, Times, Serif; margin: 0 6.55pt 0 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="font: 12pt Times New Roman, Times, Serif; width: 45px"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 24px"><font style="font-size: 10pt">1.</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; padding-right: 6.55pt; text-align: justify"><font style="font-size: 10pt">Licensing Fee: $5,000,000 upfront fee due upon the execution of the Agreement; and then upon a successfully approved Vaccine, and an additional $20,000,000 from the net profits from the Joint Entity.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 45px"> </td>
<td style="width: 24px"><font style="font-size: 10pt">2.</font></td>
<td style="padding-right: 6.55pt; text-align: justify"><font style="font-size: 10pt">Royalty Fee: Once the Vaccine comes on to market for the first commercial sale, then the Joint Entity shall:</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 72px"> </td>
<td style="width: 24px"><font style="font-size: 10pt">a.</font></td>
<td style="padding-right: 6.55pt; text-align: justify"><font style="font-size: 10pt">Offer Generex 20% of the equity interests in the Joint Entity; or</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 72px"> </td>
<td style="width: 24px"><font style="font-size: 10pt">b.</font></td>
<td style="padding-right: 6.55pt; text-align: justify"><font style="font-size: 10pt">Cash payments to Generex in a price equal to $2 per dose for the COVID-19 vaccine.</font></td></tr>
</table>
<p style="font: 10pt/10.45pt Times New Roman, Times, Serif; margin: 0 6.55pt 0 0; text-align: justify"> </p>
<p style="font: 10pt/10.45pt Times New Roman, Times, Serif; margin: 0 6.55pt 0 0; text-align: justify">The Joint Entity shall have
the perpetual sole and exclusive license to use the Generex technology within Licensed Territory. Generex shall negotiate separately
with the Joint Entity with respect to the sale of such technology in other countries outside the Licensed Territory.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 13, 2020, Generex Biotechnology
Corporation and its majority owned subsidiary NuGenerex Immuno-Oncology, Inc., (collectively “Generex”) signed The
Ii-Key Innovative Flu Vaccine Development Agreement (the “Agreement”) with Beijing Youfeng International Consulting
Co., Ltd, National Institute for Viral Disease Control and Prevention, Chinese Centre for Disease Control and Prevention (NIVDC)
and Beijing Guoxin Haixiang Equity Investment Partnership (Limited Partnership) (collectively referred to as “China Partners”)
to set up a joint entity in China (the “Joint Entity”) that shall jointly develop and industrialize the Generex internationally
patented Ii-Key innovative technology for a Flu peptide vaccine and other vaccines (the “Vaccine”) in the People’s
Republic of China (“China”). The Agreement, among other things, consists of the Joint Entity providing 100% funding
for the clinical development, manufacturing and commercial registration of the Vaccine for China and paying Generex a licensing
fee of US$2,500,000 (minus expenses estimated at US$500,000) upon successful development of the flu vaccine and receipt of approval
from NMPA for the product launch.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Joint Entity shall have the perpetual sole
and exclusive license to use the Generex technology within licensed territory and the licensed area.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 17, 2020, Generex signed statement
of work (SOW) #2 with CTL to conduct FDA requested laboratory testing and analysis for a contracted amount of $82,780.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 19, 2020 Generex signed a work
order with Polypeptide Laboratories to manufacture GMP grade Ii-Key vaccines for the COVID-19 vaccine program for a contracted
amount of $273,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 25, 2020 Generex signed a work
order with Covance to conduct preclinical animal immunogenicity studies for the Ii-Key COVID-19 vaccine program. The cost of the
project is projected at $130,135. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 7, 2020, Generex signed a contract
with Patheon, by Thermo Fisher Scientific, to provide manufacturing and fill/finish services for the clinical supply of aseptically
filled Ii-Key-SARS COV2 Vaccine Sterile Liquid Vials (the “Product”) for a Phase I/II study. The cost of the project,
specifications for which are still in development, are expected to be in the range of $1,127,000 and $1,530,000.</p>
5102040
-19724216
5102
-19729318
-19724216
1840530
1840530
1840530
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><u>Note 3 - Commitments and Contingencies:</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>Pending Litigation</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is a defendant in one legal proceeding
relating to alleged breach of contract and claims against certain of the Company’s original buccal delivery patents. The
Company is also a defendant in two legal proceedings brought by a former executive officer and her affiliate. These legal proceedings
have been reported in the Company’s prior periodic reports. No activity has occurred in these cases in several years, and
the Company now considers them dormant.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In December 2011, a vendor of the Company commenced
an action against the Company and its subsidiary, Generex Pharmaceuticals, Inc., in the Ontario Superior Court of Justice claiming
damages for unpaid invoices including interest in the amount of $429,000, in addition to costs and further interest. The Company
responded to this statement of claim and also asserted a counterclaim in the proceeding for $200,000 arising from the vendor’s
breach of contract and detinue, together with interest and costs. On November 16, 2012, the parties agreed to settle this action
and the Company has agreed to pay the plaintiff $125,000, following the spinout of its subsidiary NGIO, from the proceeds of any
public or private financing related to NGIO subsequent to such spinout. Each party agreed to execute mutual releases to the claim
and counterclaim to be held in trust by each party’s counsel until payment of the settlement amount. Following payment to
the plaintiff, the parties agree that a Consent Dismissal Order without costs will be filed with the court. If the Company fails
to make the payment following completion of any post-spinout financing related to NGIO or any other subsidiaries, the Plaintiffs
may take out a judgment in the amount of the claim plus interest of 3% per annum and costs fixed at $25,000 which has been accrued
as of October 31, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 22, 2017, Generex received a letter
from counsel for Three Brothers Trading LLC, d/b/a Alternative Execution Group (“AEXG”), claiming breach of a Memorandum
of Understanding (“MOU”) between Generex and AEXG. The MOU related to AEXG referring potential financing candidate
to Generex. The letter from AEXG counsel claimed that Generex’s acceptance of $3,000,000 in financing from Pharma Trials,
LLC, in March 2017, violated the provisions of the MOU prohibiting Generex from seeking other financing, with certain exceptions,
for a period of 60 days after execution of the MOU. AEXG has demanded at least $210,000 in cash and 84,000 warrants for Generex
stock convertible at $2.50 per share, for attorney’s fees and costs.  AEXG filed a demand for arbitration and on September
25, 2018 an arbitration hearing was held with an arbitrator from the American Arbitration Association’s International
Centre for Dispute Resolution. On December 3, 2018, an arbitrator awarded AEXG an aggregate of $315,695 in damages, costs and fees
as well as warrants exercisable for 84,000 shares of Generex Common Stock at an exercise price of $2.50 per share.  AEXG filed
a petition to confirm the arbitrator’s award in the United States District Court for the Southern District of New York. The
petition includes a demand of $3,300,360 as the value of the warrants. The arbitrator did not award the specific amount of $3.5
million, but only liquidated damages in the amount of $210,000 and the value of 84,000 warrants “as of today” (the
date of the award) plus attorney’s fees, certain costs, prejudgment and post-judgment interest (which continues to run on
a daily basis) and arbitration fees. Generex has responded that the value of the warrants on the date of the award is $0 or some
figure far less than the value calculated by AEXG. The petition to confirm the arbitrator’s award and Generex’s opposition
were remanded by the Court to the arbitrator and returned for clarification. The arbitrator stated that he was unable to add any
clarification, as he did not take evidence on the issue of warrant valuation. AEXG filed a petition and on April 24, 2020, the
Court issued an Opinion and Order in the Litigation confirming the portions of the Arbitration Award regarding liquidated damages,
pre-judgment interest, legal fees, and costs, but remanding to the Arbitrator for further proceedings the portion of the Arbitration
Award relating to “the economic value today of 84,000 warrants convertible to Generex’s stock exercisable at $2.50
per share as of September 24, 2018” (the “Remanded Arbitration”). On September 18, 2020, the Court issued that
AEXG recover from Generex the total sum of $384,771, which sum consists of $210,000 in liquidated damages, $93,304 in legal fees,
$12,393 in arbitration fees, $3,313 in arbitration expenses, $65,762 in pre-judgment interest, and post-judgment interest at a
rate established by 28 U.S.C § 1961 from September 18, 2020, until the judgment is satisfied (the “Partial Final Judgment”). 
The parties settled and agreed to the terms of the Partial Final Judgment that included a payment schedule to which Generex has
paid $200,000 in cash to date with the remaining balance being paid and retired in 30 days. The settlement terms do not apply,
settle, or resolve in any manner the Remanded Arbitration or the issues pending therein, including, but not limited to, the economic
value of the 84,000 warrants, Generex’s right to contest AEXG’s attorneys’ fees, or Generex’s right to
contest the issue of who is the prevailing party for fees other than those fees awarded in the Arbitration Award. Generex
continues to vigorously defend the open</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">matters. As of October 31, 2020, the Company
has accrued approximately $450,000 related to this matter.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 28, 2018, the Company was named in
respect of a claim by Burrard Pharmaceutical Enterprises Ltd. and Moa’yeri Kayhan for unspecified damages and other remedies
issued by the Supreme Court of British Columbia. The claim is made in connection with one advanced against Burrard and Kayhan by
Middle East Pharmaceutical Factory L.L.C., a foreign corporation, for fraudulent or negligent misrepresentation. Middle East alleges
that it was misled by Burrard and Kayhan into believing that Burrard had rights to distribute Generex product in the Middle East.
Burrard and Kayhan allege that they did have rights in that regard, which the Company denies. The matter remains at the pleadings
stage and the Company is investigating the facts.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 26, 2018, Generex entered into
a securities purchase agreement with Alpha Capital Anstalt (“Alpha”) pursuant to which a note due on October 26, 2019
was called for repayment in the principal amount of $682,000. <b> </b>On January 25, 2019, Generex received a letter
from Alpha’s counsel stating that the note was in default because Generex’s common stock was not listed on NASDAQ
within 90 days after the issuance of the note.  The letter demanded repayment in full. On February 12, 2019, Alpha filed
a lawsuit in the Supreme Court of New York, demanding the aggregate principal amount, default interest and costs. Generex does
not agree with Alpha’s legal demands and continues to defend the lawsuit.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 21, 2019 Compass Bank filed suit against
NuGenerex Distributions Solutions 2, L.L.C. (“NDS”) in the District Court of Dallas County, Texas requesting damages
of $3,413,000. This lawsuit is directly connected to assets that were supposed to be transferred to NDS from a third party, but
never were transferred. Compass Bank had a lien on those certain assets that were supposed to be transferred into the ownership
of NDS, a subsidiary of Generex. NDS and Generex shall continue to defend this legal matter. As of October 31, 2020, the Company
has accrued $3,416,695 related to this matter.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2019 Brooks Houghton threatened litigation
by way of a FINRA Dispute Resolution. Brooks Houghton, who the managing representative is Mr. Centonfanti a prior board member,
was under contract to perform due diligence on the Veneto transaction, as well as other unrelated items. The Veneto transaction
closed three times, each time with a reduction in price due to material negative circumstances. Brook Houghton, who was under contract
to perform due diligence, claims their fee should be paid on the initial closing price not the ultimate resolution of the matter.
The company offered to compensate Brooks Houghton pursuant to agreement, 3% on the most recent closing price for Veneto for which
Brooks Houghton may have performed some level of work on, payable in kind, and Brooks Houghton declined the offer. Brooks Houghton
is claiming $450,000 for the first closing of Veneto, $714,000 for the second closing of Veneto, $882,353 for the Regentys acquisition,
and $705,882 for Olaregen. The Company shall continue to defend this legal matter. As of October 31, 2020, the Company has
accrued for the full $2,752,235 balance.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 9, 2019 Generex and its subsidiary
NuGenerex Distribution Solutions, LLC, and NuGenerex Distributions Solutions 2, LLC (jointly “NDS”) filed a litigation
against Veneto, and the constituent entities, for fraud, breach of contract, and a motion for a temporary restraining order restraining
the shares contemplated in the Asset Purchase Agreement (“APA”) (supra) for hiding their involvement in a massive healthcare
fraud scheme, which is currently being prosecuted civilly by the federal government and filing to transfer assets specified in
the APA. . Our motion for a temporary restraining order on transfer of shares we issued in connection with the acquisition of Veneto
assets was denied by the Court of Chancery. Generex has continued to pursue claims against Veneto and its principals in a separate
arbitration. In a related action, our transfer agent for our common stock was sued for failure to process a transfer of the shares
issued pursuant to the APA. This suit was brought in the United States District Court for the Eastern District of New York. Generex
was not named in the suit, but our transfer agent notified us of our obligation to indemnify them pursuant to our agreement with
the transfer agent. The action against the transfer agent was dismissed with prejudice and on consent on November 25, 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">On December 2, 2019 the Company was
named as a respondent in an arbitration brought by KSKZ Management, LLC before the American Arbitration Association in Texas. 
The Claimant alleges that the Company breached a consulting agreement that purportedly obligated the Company to pay claimant a
monthly consulting fee for three years.  Kevin Kuykendall is the manager and a member of Claimant. Claimant is seeking approximately
$3,450,000 in unpaid consulting fees allegedly due.  The Company is vigorously defending itself and has filed counterclaims
against Claimant. The Company believes that the likelihood of an unfavorable outcome is remote and as result has not accrued anything
for this claim.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">On February 18, 2020 the Company was
named as a defendant in an action brought by Discover Growth Fund, LLC in the United States District Court for the District of
Delaware. The plaintiff alleges that the Company breached a Purchase Agreement and Promissory Note and seeks $2,475,000 in damages.
The plaintiff also filed a confession of judgment in support of its claim. On May 4, 2020 the District Court entered judgment
against the Company in the amount of $2,200,000. Counsel for Generex and Discover have engaged in settlement discussions. In addition,
on August 20, 2020 the Company was named as a defendant in an action brought by Discover Growth Fund, LLC in the Court of Chancery
of the State of Delaware. The complaint alleges that the Company breached a Purchase Agreement, Promissory Note and Transfer Agent
Instructions and seeks to compel the Company to honor notices of conversion from Discover Growth Fund, LLC and issue it shares
pursuant to the Purchase Agreement and Promissory Note.  Discover has since dropped the Delaware case without prejudice.
The Company has accrued approximately $2,500,000 as of October 31, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">On May 6, 2020, the Company
was named as a defendant in an action brought by Iliad Research and Trading LP in Salt Lake City, Utah. The plaintiff alleged that
the Company breached a Securities Purchase Agreement and Convertible Promissory Note. Arbitration commenced on this matter on or
about July 1, 2020 and was settled on July 31, 2020. In settlement of the matter (including any amounts outstanding under the Convertible
Promissory Note), the Company has issued Iliad 3,499,415 shares of the Company’s common stock. The arbitration was dismissed
on August 14, 2020. </p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">On October 2, 2020, the
Company and its subsidiary, NuGenerex Distribution Solutions, LLC, was named as a defendant in an action brought by AVEM Medical,
LLC, formerly known as Medisource Partners, LLC and Pantheon Medical – Foot & Ankle, LLC in the Circuit Court of the
Seventeenth Judicial Circuit in and for Broward County, Florida, Civil Division. The complaint alleges that the Company breached
an Asset Purchase Agreement by issuing fewer shares to the seller than what the agreements contemplated.  AVEM claims entitlement
to an additional $312,000 in Company stock, and Pantheon claims entitlement to an additional $576,800 in Company stock. The Company
has filed a motion to dismiss the case for lack of subject matter jurisdiction, and it intends to vigorously defend the case wherever
it is ultimately litigated. The Company intends to vigorously defend the case, and nothing is accrued at this time.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">With respect to all litigation, as additional
information concerning the estimates used by the Company becomes known, the Company reassesses its position both with respect to
accrued liabilities and other potential exposures.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>Commitments</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Intellectual Property</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In connection with the Company’s acquisition
of Olaregen, intellectual property was acquired that had a valuation of $650,000 prior to being acquired and revalued. This initial
$650,000 valuation represented the initial payment remitted by Olaregen in accordance with the $4 million signed commitment agreement
entered into with Activation Therapeutics, Inc. The remaining $3.35 million balance is to be paid in quarterly installments equal
to 10% of quarterly net sales generated by Activation Therapeutics assuming the Exellagen average selling price per unit exceeds
$800. In the event that the average selling price per unit is less than $800 per unit, cost of goods sold shall be excluded from
the computation of net sales.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Acquisitions</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>ALTuCELL</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.1pt; text-align: justify">On November 22, 2019, the Company entered
into a Stock Purchase Agreement (“SPA”) for the purchase of 51% of the outstanding capital stock of GH Care, Inc. DBA
ALTuCELL, Inc.(“ALTuCELL”<u>)</u>.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.1pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Under the SPA, in exchange for the ALTuCELL
Stock, Generex will issue to ALTuCELL 2,240,000 shares of Generex common stock with an attributed value of $4 million to be issued
at the market price of the day at closing, but no less than $0.89 per share. The Company will also pay $2.5 million in cash of
which $212,000 has already been paid. In addition to stock and cash at closing, Generex has agreed to pay up to an aggregate of
$3,500,000 to ALTuCELL upon ALTuCELL’s attainment of certain milestones.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 27, 2020, Generex and ALTuCELL executed
an Amendment Agreement to the SPA (the “Amendment”). Under the Amendment, closing will occur within 30 days of the
full execution of the Amendment, subject to the conditions to closing under the SPA. The parties agreed that Generex will pay the
$2.5 million closing payment from certain specifically identified sources. If ALTuCELL chooses to cancel the transaction as a result
of delays due to forces beyond the control of Generex, including government regulatory delays or extended reviews by regulators
that delay approvals of corporate actions, or by natural disasters or other unforeseen events beyond the control of Generex, ALTuCELL,
agrees to return all payments made by Generex. As of October 31, 2020, Generex has advanced $212,000 to ALTuCELL. As of the date
of this filing, the acquisition did not close, however, both companies are negotiating the terms of the extension.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Olaregen</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 24, 2019, the Company amended
the Stock Purchase Agreement with Olaregen. The Company was obligated to pay in full $11,600,000 to Olaregen by November 30, 2019,
in connection with the purchase of Olaregen capital stock (the “Olaregen Note”). Effective November 24, 2019, the
deadline was extended to January 31, 2020. On February 14, 2020, the Company agreed to exchange 4,250,000 shares of Generex Common
Stock and 1,065,000 shares of NGIO for the remaining outstanding shares of Olaregen with a waiver of any penalties and accrued
interest on the outstanding Olaregen Note. As a result, Olaregen become wholly owned by the Company.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.1pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.1pt; text-align: justify"><i>Regentys</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.1pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.1pt 0 0; text-align: justify">On November 25, 2019, the Company
amended the Stock Purchase Agreement with Regentys originally on January 7, 2019. Effective November 25, 2019, the remaining three
payments of $2,039,001, $2,000,000, and $3,000,000 were all payable on or before December 30, 2019. The Company is negotiating
the terms of a new extension and there has been no demand for payment at this time.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.1pt 0 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.1pt 0 0; text-align: justify"><i>MediSource – Pantheon</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.1pt 0 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.1pt 0 0; text-align: justify">On August 1, 2019, the Company, through
its wholly owned subsidiary NDS, closed on Asset Purchase Agreements (the “APAs”) for the purchase of substantially
all the operating assets of MediSource and Pantheon which provided the Pantheon Earn-out and MediSource Earn-out based about the
EDITDA achieved by Patheon and MediSource. Neither earn-out was achieved nor anticipated for the remainder of the earn-out period
and therefore the liability for contingent consideration was relieved.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.1pt 0 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.1pt 0 0; text-align: justify">On July 20, 2020, Travis Bird terminated
his consulting agreement with the Company and Travis Bird caused the operations of MediSource and Pantheon to curtail. As of this
filing, no resolution and/or settlement has been reached and there is no guarantee that these operations will resume. This event
has led to the full impairment of goodwill and intangibles of MediSource and Pantheon for the fiscal year ended July 31, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.1pt 0 0; text-align: justify"><b>Agreements</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Research and Development Agreements</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 20, 2018, the Company entered into
a clinical trial agreement with NSABP Foundation, Inc. (“NSABP”) under which NSABP will conduct clinical research using
the Company’s AE37 peptide immunotherapeutic vaccine in combination with pembrolizumab (Ketruda®) for the treatment
of metastatic triple negative breast cancer. The Company has agreed to pay NSABP an amount not to exceed $2,118,461 based on NSABP
achieving various milestones.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognized $0 and $251,765 as research
and development related to the clinical trial agreement with NSABP for the three-month periods ended October 31, 2020 and 2019,
respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/10.45pt Times New Roman, Times, Serif; margin: 0 6.55pt 0 0; text-align: justify">On <font style="letter-spacing: -0.55pt">June
2</font>, 2020, the Company entered into a <font style="letter-spacing: -0.5pt">Laboratory </font>Services Agreement
and Statement of Work Agreement with Cellular Technology Limited (“CTL”). The Agreement <font style="letter-spacing: -0.7pt">calls
for </font>CTL to provide certain laboratory testing and analysis. These services provided by CTL to Generex are part of the
development of a potential vaccine for COVID-19 based upon NGIO Ii-Key vaccine technology. NGIO is a majority owned subsidiary
of Generex. Generex/NGIO will own the intellectual property generated by CTL’s work.</p>
<p style="font: 10pt/10.45pt Times New Roman, Times, Serif; margin: 0 6.55pt 0 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to this agreement, Generex will pay
to CTL a fee for work plan completion an amount not to exceed $939,478. As of October 31, 2020, $562,063 is accrued under this
agreement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>COVID-19 Collaboration Agreement</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 5, 2020, the Company entered into
a Distribution and Licensing Agreement (the “Agreement”) with Bintai Healthcare SDN BHD, a subsidiary of Bintai Kinden
Corporation Berhad of Malaysia (“Bintai”) for the exclusive rights to distribute, sell, develop and commercialize the
Generex Ii-Key-SARS-CoV-2 coronavirus vaccine (the “Vaccine”) in Malaysia and South East Asia countries, with right
of first refusal to commercialize the Vaccine within New Zealand, Australia and the Global Halal markets (the “Territory”).
The Agreement, among other things, consists of Bintai providing 100% funding for U.S. clinical development, manufacturing and commercial
registration of the Vaccine for the Territory and paying Generex the following fees:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 20px; padding-bottom: 6pt; text-align: right"><font style="font-size: 10pt">a.</font></td>
<td style="width: 7px"> </td>
<td style="padding-bottom: 6pt; text-align: justify"><font style="font-size: 10pt">$2,625,000 – Pre-Commercialization Stage Fees (inclusive for intellectual property rights, regulatory fees, and legal fees)</font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 20px; padding-bottom: 6pt; text-align: right"><font style="font-size: 10pt">b.</font></td>
<td style="width: 7px"> </td>
<td style="padding-bottom: 6pt; text-align: justify"><font style="font-size: 10pt">$10,000,000 – Commercialization Stage Fees</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has received $2,000,000 as refundable
advance related to this distribution and licensing agreement for the three-month ended October 31, 2020. If the Company fails to
secure FDA approvals within 6 months of execution of the agreement, or a reasonable time thereafter, the advance must be returned
to Bintai.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 30, 2020, Generex Biotechnology
Corporation and its majority owned subsidiary NuGenerex Immuno-Oncology, Inc., (collectively “Generex”) signed a Framework
Agreement on Cooperative Development of Coronavirus Peptide Vaccine with Beijing Youfeng International Consulting Co., Ltd, Chinese
Centre for Disease Control and Prevention National Institute for Viral Disease Control and Prevention (NIVDC) and Beijing Guoxin
Haixiang Equity Investment Partnership (Limited Partnership) (collectively referred to as “China Partners”) to jointly
develop and industrialize the Generex Ii-Key-SARS-CoV-2 coronavirus peptide vaccine (the “Vaccine”) in the People’s
Republic of China (“China”). The agreement, among other things, consists of the China Partners providing 100% funding
for the clinical development, manufacturing and commercial registration of the Vaccine for China and paying Generex fees that shall
be negotiated and agreed upon in subsequent agreements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Employee Compensation and Settlement Agreements</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended October 31, 2020,
the Company awarded executives and employees bonus compensation of $7,005,416 to be paid in approximately $1 million in cash and
$6 million in stock. The cash portion is to be paid out before December 31, 2020 and the stock portion is expected to be issued
by January 31, 2021.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt/10.7pt Times New Roman, Times, Serif; margin: 0 0 8pt; text-align: justify"><b>Payable to Foundation</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 1, 2007, the Company entered into
a clinical study agreement with the Henry M. Jackson Foundation (the “Foundation” for the clinical research and development
of AE37 for the treatment of breast cancer). The Company agreed to pay the foundation total compensation of $2,700,000 payable
at various intervals over the term of the agreement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 9, 2013, the Company entered into
a forbearance agreement (the “Forbearance Agreement”) with the Foundation, under which the Company n acknowledged that
they were in arrears on its payment and interest obligations to the Foundation in the amount of $1,315,817. Pursuant to the Forbearance
Agreement, the Company and the Foundation agreed that in exchange for deferring the overdue payments the Company would among other
matters, pay the foundation (i) the final $200,000 upon completion of the study and acceptance of all study documents, (ii) a royalty
of 5% of net third party sales and (iii) the original forbearance amount will continue to bear interest at 1.5% per month, compounded.
The Foundation may terminate the Forbearance Agreement by providing the Company written notice should the Company, among other
matters, fail to make payments due under the Forbearance Agreement. The foundation has not provided the study documents to the
Company.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Foundation has not notified the Company
that it is in default of any of its obligations under the Forbearance agreement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Effective August 1, 2015, the Company capitalized
all outstanding unpaid interest on the outstanding balance. For the period ended October 31, 2020 and 2019, the Company recorded
interest expense in the amount of $238,759 and $199,685, respectively, in the statements of operations. As of October 31, 2020
and July 31, 2020, the Company has recorded accrued interest of $4,149,900 and $3,911,141, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"><b><u>Note 1 – Organization of Business
and Going Concern:</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Generex Biotechnology Corporation (“Generex”,
“Company”, “GNBT”, "we", "us" or "our"), was formed in the State of Delaware
on September 4, 1997 and its year-end is July 31. As of October 31, 2020, the active subsidiaries of the Company are
Generex Pharmaceuticals, Inc.; 1097346 Ontario, Inc.; NuGenerex Immuno-Oncology, Inc.; Nugenerex Diagnostics, Inc.; Rapid Medical
Diagnostics Corporation; GNBTELC, LLC; Olaregen Therapeutix, Inc.; Regentys Corporation; Nugenerex Management Services, Inc.; Nugenerex
Distribution Solutions 2, LLC; DMEiq, LLC (d/b/a DME-IQ); Rapport Services, LLC; NMSIELC, LLC; High Desert Diagnostic Laboratory,
Inc.; NuGenerex Distribution Solutions, LLC; Pantheon F & A, LLC; Nugenerex Surgical Holdings, LLC; NuGenerex Health, LLC;
NuGenerex HMO, LLC; NuGenHealth, LLC; and NuGenerex MSO, LLC.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Generex is an integrated healthcare holding
company with end-to-end solutions for patient centric care from rapid diagnosis through delivery of personalized therapies. In
addition to advancing a legacy portfolio of immune-oncology assets, medical devices, and diagnostics, the Company is focused on
an acquisition strategy of strategic businesses that complement existing assets and provide immediate sources of revenue and working
capital.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 3, 2018, the Company entered into
an Asset Purchase Agreement with Veneto Holdings, L.L.C. (“Veneto”) to purchase certain assets of Veneto and its subsidiaries
to formulate Nugenerex Distribution Solutions 2, LLC (“NDS 2”). The Agreement bifurcated the closing. On October
3, 2018 (the “First Closing”), the Company purchased substantially all the operating assets of Veneto including (a)
system of dispensing pharmacies, (b) one central adjudicating pharmacy, (c) a wholesale pharmaceutical purchasing company, and
(d) an in-network laboratory. On November 1, 2018, the Company consummated the acquisition of the Second Closing Assets, consisting
primarily of Veneto’s management services organization business and two additional ancillary services.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In March 2019, the Company changed its business
model to no longer utilize the existing pharmacies. Going forward Veneto will conduct business exclusively through its management
services organization (“MSO”) and by entering into more ancillary provider service agreements with third party pharmacies
as an effort to reduce fixed costs and salaries. This was made practicable due to the decrease in overall script volume coupled
with delays in the Company being able to receive operating licenses from various government agencies.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 7, 2019, the Company closed two
separate Acquisition Agreements pursuant to which the Company acquired a 51% interest in both Regentys Corporation (“Regentys”)
and Olaregen Therapeutix Inc. (“Olaregen”). Regentys is a regenerative medicine company focused on developing novel
treatments for patients with gastrointestinal (GI) disorders. Olaregen is a New York based regenerative medicine company that is
preparing to launch its proprietary, patented, wound conforming gel matrix, Excellagen, an FDA 510K cleared wound healing product.
In the first quarter of 2020 the Company acquired increased its ownership of Olaregen to 77%. In the third quarter of 2020 the
Company acquired the remaining interest in Olaregen in exchange for its shares of common stock and became a wholly owned subsidiary
of the Company.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 1, 2019, the Company, through its
wholly owned subsidiary NDS, closed on Asset Purchase Agreements (the “APAs”) for the purchase of substantially all
the operating assets of MediSource Partners, LLC (“MediSource”) and Pantheon Medical - Foot & Ankle, LLC (“Pantheon”).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">MediSource contracts with vendors (including
Pantheon) for nationwide distribution of implants and devices for spine, hips, knees, foot, ankle, hand, and wrist surgeries. Additional
product lines include biologics (blood, bone, tissue, and stem cells), durable medical equipment, and soft goods. MediSource also
supplies kits to process bone marrow aspirates and platelet rich plasma biologics at the time of surgery.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pantheon sells a physician friendly, “all-in-one,”
integrated kit that includes plates, screws, and tools required for orthopedic surgeons and podiatrists conducting foot and ankle
surgeries. Over the next three years, Pantheon expects to develop and submit several new product lines to the FDA, which will include
cannulated surgical screws and surgical staples, as well as a proprietary Hammertoe System.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Since July 20, 2020, the termination of the
Travis Brid consulting agreement and the COVID-19 pandemic have curtailed the operations of MediSource and Pantheon and as result,
the goodwill and intangibles were fully impaired.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 25, 2020, Generex Biotechnology Corporation’s
wholly owned subsidiary NuGenerex Health LLC, (“NuGenerex Health”), entered into a strategic joint venture with Worldwide
Digitech, LLC (“WWDT”) by signing an Operating Agreement to form NuGenHealth LLC (“NuGenHealth”). Under
the agreement profits shall be distributed equally; 50% to NuGenerex Health LLC and 50% to WWDT.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">WWDT will provide the software powered by the
HealthKOS framework and back-end support for the NuGenHealth SaaS system, while NuGenerex Health LLC shall be responsible for the
day-to-day management and oversight of business operations along with operating capital totaling approximately $1,500,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt/10.45pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 24, 2020, NuGenHealth,
LLC, a subsidiary of Generex Biotechnology Corporation, signed a services agreement with Paradise Valley Family Medicine, P.C.
an Arizona professional corporation (“PVFM”) to provide a software and services solution for patient engagement, Remote
Patient Monitoring (RPM) and Chronic Care Management (CCM) services that are recommended and reimbursed by the Centers of Medicare
and Medicaid Services (CMS).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Going Concern</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying unaudited condensed interim
consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United
States of America (“U.S. GAAP”), which contemplate continuation of the Company as a going concern. The Company has
experienced recurring net losses and negative cash flows from operations since inception and has an accumulated deficit of $464,643,597
and a working capital deficiency of $50,399,602 on October 31, 2020. The Company has funded its activities to date almost exclusively
from debt and equity financings.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company will continue to require substantial
funds to implement its new investment acquisition plans.  Management’s plans in order to meet its operating cash flow
requirements include financing activities such as private placements of its common stock, preferred stock offerings, and issuances
of debt and convertible debt instruments. Management is also actively pursuing financial and strategic alternatives, including
strategic investments and divestitures, industry collaboration activities and strategic partners.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The recent, widespread outbreak of a
novel infectious disease called Coronavirus Disease 2019, or COVID-19, has created a dynamic and uncertain situation in the
national economy. Regarding the Company, sales of Olaregen's Excellagen have been significantly impacted by the COVID-19 pandemic.
Surgeries and outpatient procedures were delayed and rescheduled, severely limiting sales of wound care and surgical products.
Going forward, as the VA and other hospital systems re-open, the re-scheduled surgeries and procedures are expected to start up
and create a backlog of cases, which should accelerate product sales to pre-COVID levels in due course. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result of the termination of the Travis
Bird Consulting Agreement and the ongoing COVID-19 pandemic, the operations of Medisource and Pantheon have been significantly
curtailed resulting in no sales for during the current quarter ending October 31, 2020 compared to $449,196 for the same period
in the prior year with no expectation that such sales will resume in the near future.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Because of the COVID-19 pandemic Generex and
its subsidiaries are currently pursuing the development of a SARS-CoV-2 vaccine using the company's patented Ii-Key peptide vaccine
technology. To this end, the Company applied for funding to BARDA in the U.S., Health Canada, and the Malaysian Ministry of Health
as well as with CEPI, the international public/private consortium focused on the development of vaccines for the global market.
To date, Generex has identified viral epitopes through computer vaccinology algorithms, and manufactured those peptide sequences
with the Ii-Key moiety for testing in immunological screening program using convalescent blood samples from patients who have recovered
from COVID-19. The immunological blood screening program is in progress. Manufacturing partners have been identified and contracted
for clinical and commercial supply. Completion of the Ii-Key-SARS-CoV-2 peptide vaccine program is being funded through a partnership
with international partners, including Bintai Kinden.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company continues to closely monitor the
latest information to make timely, informed business decisions and public disclosures regarding the potential impact of pandemic
on its operations and financial condition. The scope of pandemic is unprecedented and its long-term impact on the Company’s
operations and financial condition cannot be reasonably estimated at this time.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">There is always uncertainty and risk associated
with the development of any vaccine, medical treatment or therapy, but the continued development depends upon the completing the
trials under various collaboration agreements and associated potential commercialization of the product, FDA approval and/or licensing
agreements. Any collaborator with whom we may enter into such collaboration agreements may not support fully our research and
commercial interests since our program may compete for time, attention and resources with such collaborator's internal programs.
Therefore, these collaborators may not commit sufficient resources to our program to move it forward effectively, or that the
program will advance as rapidly as it might if we had retained complete control of all research, development, regulatory and commercialization
decisions. During the pandemic COVID-19, it is anticipated that delays will occur, but the full impact of any slow down due to
COVID-19 has not been determined.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">These conditions raise substantial doubt about
the Company’s ability to continue as a going concern for a period of twelve months from the filing of this document. There
are no assurances that such additional funding will be achieved and that the Company will succeed in its future operations. The
unaudited condensed interim consolidated financial statements do not include any adjustments relating to the recoverability and
classification of recorded asset amounts or amounts of liabilities that might be necessary should the Company be unable to continue
as a going concern. The Company’s inability to obtain required funding in the near future or its inability to obtain funding
on favorable terms will have a material adverse effect on its operations and strategic development plan for future growth. If the
Company cannot successfully raise additional capital and implement its strategic development plan, its liquidity, financial condition,
and business prospects will be materially and adversely affected, and the Company may have to cease operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>Note 7 – Notes Payable</u> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 26, 2018, Generex entered into a
Securities Purchase Agreement with an investor pursuant to which the Company sold its Note Due October 26, 2019 (“Note”)
in the principal amount of $682,000<b>. </b>The purchase price of the Note was $550,000 from which Generex was required to
pay the $15,000 fee of the investor’s counsel. The remaining $147,000 of principal amount represents original issue discount.
The Note does not bear any stated interest in addition to the original issue discount. On January 26, 2019, the note went into
default and since that date has an effective interest rate is 24% per annum.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">In May 2019, the Company consummated
a Stock Purchase Agreement entered into January 14, 2019 to which the Company sold a $2,000,000 promissory note bearing interest
at 7% per annum originally due and payable on August 1, 2019. The notes remain active and interest has continued to accrue while
new terms of the note are in process of being negotiated.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">In August 2019, the Company borrowed
$1,000,000 from an investor, bearing 10% interest per annum, with an original issue discount of $150,000. This note is due in one
year from the date of issuance.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">In August 2019, the Company entered
into Securities Purchase Agreements to which the Company sold convertible note, bearing 10% interest per annum, in the principal
amount of $1,100,000. The purchase price was $1,000,000 and the remaining 100,000 of principal amount represents original issue
discount. Subject to certain ownership limitations, the Notes will be convertible at the option of the holder at any time into
shares of the Company’s common stock at an effective conversion price determined as follows: 80% of the lowest trading price
of the common stock on the ten days prior to conversion. The embedded beneficial conversion feature in these Notes meets the definition
of a derivative and requires bifurcation and liability classification, at fair value. The fair value of the derivative liability
as of the date of issuance was $521,383 and was recorded as a discount of the Notes. In August 2020, this note was fully converted
into common stock leaving no balance as of October 31, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">In December 2019, the Company entered
into Securities Purchase Agreements with an investor pursuant to which the Company sold a convertible note bearing interest of
12% per annum in the principal amount of $2,200,000 and due in 18 months. The purchase price of the note was $2,000,000 and the
remaining $200,000 of principal amount represents original issue discount. Subject to certain ownership limitations, the note
is convertible at the option of the holder at any time into shares of the Company’s common stock at an effective conversion
price of 95% of the lowest stock five trading days prior to conversion less. During the 2020 fiscal year, the Company defaulted
on the note for not filing the S-1 within a required period. Thereafter the interest increased to 22% per annum and the conversion
price decreased to 85% of the lowest stock five trading days prior to conversion. The embedded beneficial conversion feature in
the note meets the definition of a derivative and requires bifurcation and liability classification, at fair value. The fair value
of the derivative liability as of the date of issuance was $111,508 and was recorded as a discount of the note. On February 18,
2020, the investor has filed suit and the Company is evaluating the claim and has had a preliminary settlement discussion with
the plaintiff.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">In November 2019, the Company entered
into Securities Purchase Agreements pursuant to which the Company sold convertible notes bearing 10% interest per annum (the “Notes”)
in the aggregate principal amount of $203,333. The purchase price of the note was $183,333 and the remaining $20,000 of principal
amount represents original issue discount. Subject to certain ownership limitations, the Notes are convertible at the option of
the holder at any time into shares of the Company’s common stock at an effective conversion price of 80% of the lowest 20
days prior to conversion. The embedded beneficial conversion feature of these notes meets the definition of a derivative and requires
bifurcation and liability classification, at fair value. The fair value of the derivative liability as of the date of issuance
was $161,325 and was recorded as a discount of the notes.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 10, 2020, the Company entered into
a Securities Purchase Agreement with an investor pursuant to which the Company sold a convertible note bearing interest at 12%
per year in the principal amount of $305,000 and issued 35,000 shares of common stock. The purchase price of the note was $270,000
and the remaining $35,000 of principal amount represents $30,000 of original issue discount and $5,000 of closing costs. Subject
to certain ownership limitations, the note is convertible at the option of the holder at any time into shares of our common stock
at an effective conversion price equal to 80% of the lowest closing price as of the date of the notice. The embedded beneficial
conversion feature of these note meets the definition of a derivative and requires bifurcation and liability classification, at
fair value. The fair value of the derivative liability as of the date of issuance was $131,703 and was recorded as a discount of
the note. During the three months ended October 31, 2020, the entire note was converted into common stock.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">On February 19, 2020, a lender made
a formal demand for repayment of a note payable due on August 29, 2020 because they claim Company failed to comply with all
terms of the note. On April 8, 2020, the Company signed a forbearance agreement with the lender to remove the major default penalty
but increase the annual interest rate to 22%. The balance of the note was amended to $956,535 in cash which includes principal
in the amount of $772,500 and approximately $184,035 of accrued interest and penalties. On July 31, 2020, a settlement was reached
where the Company agreed to issue 3,499,415 shares of common stock for $1,459,676 which included $772,500 of principal and $687,176
of interest and penalties. On July 30, 2020, the note was settled to be paid in Company common stock and on August 11, 2020, the
shares were issued.</p>
<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0">As of October 31, 2020, there were two notes in default with an
aggregate principal balance of $2,882,000.  The notes are accruing at default rates of interest of 22% and 24% per annum.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 28, 2020, the Company entered into
a series of Securities Purchase Agreements with three investors pursuant to which the Company agreed to sell and sold convertible
notes bearing interest at 9.5% per year in the aggregate principal amount of $281,600. The purchase price of the notes in the aggregate
was $250,000 and the remaining $31,600 of principal amount represents original issue discount. Subject to certain ownership limitations,
the notes will be convertible at the option of the holder at any time into shares of our common stock at an effective conversion
price equal 80% of the lowest closing price for the ten trading days prior to the day of the notice. The embedded beneficial conversion
feature of these notes meets the definition of a derivative and requires bifurcation and liability classification, at fair value.
The fair value of the derivative liability as of the date of issuance was $128,219 and was recorded as a discount of the notes.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 9, 2020, the Company issued a note
to a lender for $50,000 due in year with an interest rate of 10% per annum. The funds were paid directly to one of the Company’s
vendors. On May 4, 2020, the Company issued a promissory note with a purchase price of $100,000 to the same investor that matures
in one year and has a stated interest rate of 10% per annum. Additionally, the Company agreed to issue 20,000 shares of restricted
common stock and 20,000 stock options with an exercise price of $0.43 which was due upon execution of the note. On October 9, 2020,
the Company paid $60,000 toward these notes leaving a balance of $90,000 as of October 31, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In April 2020, Regentys, Olaregen, NDS 2 and
MediSource (collectively “the Subsidiaries”) were granted loans (the “PPP Loans”) in the aggregate amount
of $499,473, pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act, which
was enacted March 27, 2020. The application for these funds required the Company to, in good faith, certify that the current economic
uncertainty made the loan request necessary to support the ongoing operations of the Company. This certification further required
the Subsidiaries to consider its current business activity and its ability to access other sources of liquidity sufficient to
support ongoing operations in a manner that is not significantly detrimental to the business. The receipt of these funds, and
the forgiveness of the loan attendant to these funds, is dependent on the Subsidiaries having initially qualified for the loan
and qualifying for the forgiveness of such loan based on its future adherence to the forgiveness criteria.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The PPP Loans, which were in the form
of a notes with dates ranging between April 17 and April 24, 2020 and mature between two and five years and bear interest at a
rate of 1.00% per annum, payable in monthly payments commencing six months after loan disbursements. The notes may be prepaid by
the Subsidiaries at any time prior to maturity with no prepayment penalties. Funds from the PPP Loan may only be used
for payroll costs and any payments of certain covered interest, lease and utility payments. Under the terms of the PPP, certain
amounts of the Loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. No assurance can be
provided that the Company will obtain forgiveness of the PPP Loan in whole or in part.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">On June 25, 2020, the Company entered
into a Securities Purchase Agreements pursuant to which the Company sold a convertible note bearing interest at 12% per year in
the principal amount of $150,000. The purchase price of the note was $145,000 and the remaining $5,000 of principal represents
original issue discount. Subject to certain ownership limitations, the notes will be convertible at the option of the holder at
any time into shares of our common stock at an effective conversion price equal 80% of the lowest closing price for the ten trading
days prior to the day of the notice. The embedded beneficial conversion feature of these Notes meets the definition of a derivative
and requires bifurcation and liability classification, at fair value. The fair value of the derivative liability as of the date
of issuance was $59,985 and was recorded as a discount of the note. During September 2020 and October 2020, the entire note was
converted into common stock.</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Amount</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 71%"><font style="font-size: 10pt">Balance of notes payable on July 31, 2020</font></td>
<td style="width: 10%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 17%; text-align: right"><font style="font-size: 10pt">11,166,359</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Increase in debt due to default</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">255,080</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td><font style="font-size: 10pt">Amortization of debt discount</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">174,049</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Conversions</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(1,077,086</font></td>
<td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Payments</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(60,000</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Balance of notes payable on October 31, 2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">10,458,402</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>As of October 31, 2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>As of July 31, 2020</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 58%"><font style="font-size: 10pt">Notes payable</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">10,709,655</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">11,591,661</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Less: debt discount</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(251,253</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(425,302</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td><font style="font-size: 10pt">Total debt, net of discount</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">10,458,402</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">11,166,359</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Notes payable, net - noncurrent</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">499,839</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">499,656</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Notes payable, net - current</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">9,958,563</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">10,666,703</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 28, 2017, the Company through its
then wholly owned subsidiary NuGenerex Distribution Solutions, LLC (“NuGenerex”), completed the acquisition of the
assets and 100% of the membership interests of two pre-operational pharmacies, Empire State Pharmacy, LLC (“Empire Pharmacy”)
and Grainland Pharmacy, LLC (“Grainland Pharmacy”), pursuant to the bills of sale for a consideration of $320,000 Promissory
Note due and payable in full on June 28, 2018 bearing an annual interest rate of 3%. The note was extended by six months and set
to mature with the same terms on December 28, 2018. The note remains active and interest has continued to accrue while new terms
of the note are in process of being negotiated. Empire Pharmacy is not currently operating, and Grainland Pharmacy has been dissolved.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to the second closing of the acquisition
of certain operating assets of Veneto Holdings, L.L.C. and its affiliates, Generex’s wholly owned subsidiary agreed to assume
outstanding debt of Veneto subsidiaries to Compass Bank, including obligations under a term loan and a revolving line of credit.
Claiming three separate types of default, Compass Bank has demanded payment in full of amounts due under the term loan and revolving
line of credit, in an aggregate amount of approximately $3,413,000. Generex believes it has defenses to such demand, including
that the bank was not an intended beneficiary of the subsidiary’s agreement to assume the debt.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to its acquisition of Regentys, the
Company inherited convertible notes with several investors which collectively held a principal plus of $615,000 as of the date
of acquisition. As of October 31, 2020, the remaining principal balance was $349,656 with an unamortized debt discount balance
of $16,824. These notes have an accrued interest balance of $95,885 as of October 31, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><u>Note 9 - Stockholders’ Equity</u></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 49.5pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Common Stock</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Stock compensation expense</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.1pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.1pt; text-align: justify">During the three months ended October
31, 2020, the Company recognized $1,210,859 of expense related to the vesting of stock options. In October 2020, the Company issued
51,130 shares of common stock to vendors for services valued at $0.215 per share, or $10,993.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Sale of common stock </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.1pt; text-align: justify">On November 25, 2019, the Company entered
an Equity Purchase Agreement with Oasis Capital, LLC (“Oasis”) to purchase up to $40,000,000 of the Company’s
stock at 92% of the market price for the period of five (5) consecutive trading days immediately subject to a put notice on such
date on which the Purchase Price is calculated in accordance with the terms and conditions of the agreement (subject to certain
limitations) from time to time over a 36-month period. During September 2020 and October 2020, Oasis purchased 2,100,000 shares
of common stock in three tranches for an aggregate price of $356,710.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.1pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Issuance of common stock in a PIPE deal,
net of fees and exercise of warrants</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.1pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 4, 2020, the Company and three institutional
accredited investors (each a “Buyer” and, collectively, the “Buyers”) entered into a securities purchase
agreement pursuant to which the Company sold and issued to the Buyers an aggregate of 5,102,040 shares of the Company’s common
stock, par value $0.001 per share, and received net proceeds of $1,850,000 after deducting commissions and attorney’s fees
of $150,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to the Securities Purchase Agreement,
the Company issued to the Buyers (i) Series A Warrants to purchase 5,102,040 shares of Common Stock in the aggregate (the “Series
A Warrants”) with an initial exercise price equal to $0.392 per share (the “Series A/B Exercise Price”), (ii)
Series B Warrants to purchase 15,306,122 shares of Common Stock in the aggregate (the “Series B Warrants”) with an
initial exercise price equal to the Series A/B Exercise Price; (iii) Series C Warrants to purchase the number of shares of Common
Stock equal to Maximum Eligibility Number (as defined therein) (the “Series C Warrants”) at an initial exercise price
equal to $0.539 per share; and (iv) Series D Warrants to purchase the number of shares Common Stock equal to the Maximum Eligibility
Number (as defined therein) (the “Series D Warrants” and together with the Series A Warrants, the Series B Warrants
and the Series C Warrants, the “Warrants” and the Warrants together with the Common Shares and the shares of Common
Stock underlying the Warrants, the “Securities”) at an exercise price equal to $0.001 per share, in each case, subject
to adjustment and beneficial ownership limitations set forth therein. Subject to the satisfaction or waiver of certain conditions
set forth in the Series A Warrants, the Company may force the Buyers to exercise the Series A Warrants in full on the twenty second
(22nd) trading day (the “Forced Exercise Date”) after the effectiveness of the Company’s registration statement
that registers all of the Common Shares and shares underlying the Warrants. The exercise price set forth in each of the Series
A Warrants, the Series B Warrants and Series C Warrants is subject to adjustment on certain trigger dates as provided in each such
Warrant. The holders of the Series A Warrants, Series B Warrants and Series C Warrants shall be allowed a cashless exercise if
a registration statement registering the Securities is not effective within 180 days following the issuance of such Warrants. On
certain interim reset dates (“Interim Reset Date(s)” and second trigger dates (“Second Trigger Date(s)”)
as set forth in the Series D Warrants, the Series D Warrants will become exercisable into a number of shares of Common Stock that
would have been issued on the issuance date and upon exercise of the Series A Warrants and Series B Warrants had the purchase price
per share and exercise price of the Series A Warrants and Series B Warrants been equal to the applicable reset price as set forth
in the Series D Warrant; or the right to use the applicable exercise price, or adjustment right (as the case may be) calculated
using the Black-Scholes Option Pricing Model pursuant to the Securities Purchase Agreement. The Buyers have the potential right
to have these Warrants settled in cash equal to the Black Scholes value of any remaining unexercised warrant. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result, of an Interim Reset Date on September
28, 2020, and Second Trigger Date on October 12, 2020, the additional warrants were issued and the exercise price adjusted as follows:
(i) 5,112,463 additional Series A Warrants were issued to purchase 10,214,503 in the aggregate shares of Common Stock with a “reset”
exercise price equal to $0.1958 per share (the “Series A/B Reset Exercise Price”), (ii) 15,337,389 additional Series
B Warrants to purchase 30,643,509 shares of Common Stock in the aggregate with a reset exercise price equal to the Series A/B Exercise
Price; (iii) 9,142,973 additional Series C Warrants to purchase the number of shares of Common Stock to purchase 19,347,053 shares
of Common Stock in the aggregate at a reset exercise price equal to $0.28149 per share; and (iv) the Buyers exercised 9,142,973
Series D Warrants and purchased 9,142,973 shares of Common Stock at $0.001 per share (See Note 12 – Warrants).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Deemed dividend related to issuance of warrants
containing derivative liabilities</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result of the excess warrant liability
recorded relative to the total proceeds received in connection with the Securities Purchase Agreement (see Note 8), this led to
a full discount ascribed to the common stock. Accordingly, the Company then immediately recorded a deemed dividend of $1,850,000
to accrete the common stock to the value received in this transaction by increasing Additional Paid-in Capital and reducing accumulated
deficit by $1,850,000. As a result of the excess warrant liability for the warrants granted relative to total proceeds received
in connection with pursuant to the Securities Purchase Agreement (see Note 8) it was determined to be immediately beneficial upon
initial closing date and, as a result, the Company recorded a deemed dividend of $1,850,000 increasing Additional Paid-in Capital
and reducing the Accumulated Deficit by $1,850,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Issuance of common stock payable</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.1pt; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">During the three months ended October
31, 2020 and 2019, 3,529,415 and 296,793 shares of common stock payable were issued to settle outstanding obligations, valued at
$1,472,826 and $921,895, respectively. As of October 31, 2020 and July 31, 2020, the value of the remaining shares to be issued
was $8,483,393 and $10,079,449, respectively.</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Common Stock Payable</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 71%"><font style="font-size: 10pt"><b>Balance as of July 31, 2020</b></font></td>
<td style="width: 10%"> </td>
<td style="width: 1%">$</td>
<td style="width: 17%; text-align: right">10,079,449</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 10pt"><font style="font-size: 10pt">Issuance of common stock payable</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(1,472,826</font></td>
<td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-bottom: 1pt; padding-left: 10pt"><font style="font-size: 10pt">Change in fair value of common stock payable</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(123,230</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt"><b>Balance as of October 31, 2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid">$</td>
<td style="border-bottom: black 1pt solid; text-align: right">8,483,393</td>
<td style="padding-bottom: 1pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Conversion of debt to equity</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended October 31, 2020
and 2019, the Company issued 5,860,255 and 1,164,190 shares of common stock for the conversion of $1,127,842 and $1,736,837 of
debt, respectively. As a result of the debt conversions during the three months ended October 31, 2020 and 2019, $538,084 and $1,911,487
of derivative liabilities were reduced, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Issuance of common stock for acquisitions</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">In August 2019, the Company issued 400,000
and 560,000 shares of common stock valued at $2.50 per share for the acquisition of MediSource and Pantheon, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Cancellation of shares</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 12, 2019, 20,375,900 outstanding
shares of common stock were cancelled by the Company held by Joe Moscato TTEE Friends of Generex Biotechnology Investment Trust
U/A/D 4/2/2019, a trust formed for the benefit the Company and any 80% controlled subsidiary of the Company by several shareholders
contributing in the aggregate 33,175,900 shares of the Company’s Common Stock and 8,293,975 shares of  NGIO commons
shares (the “Friends of Generex Trust”), similar to the Stock Control Agreement previously entered into by the same
shareholders on December 1, 2018 filed in an 8-K filed on December 3, 2019, incorporated herein by reference.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Non-controlling Interest</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Regentys</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to the Company’s acquisition
of Regentys on January 7, 2019 to acquire a 51% interest, the Company was issued 12,048,161 shares of Regentys common stock. As
of January 31, 2020, Regentys had a total of 18,623,278 shares of common stock and 2,793,192 Series A voting preferred stock for
a total of 21,416,470 total voting shares outstanding. As such, there are 9,368,309 of shares that belong to non-controlling interest
shareholders which represents a 43.74% non-controlling interest. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Olaregen</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to the Company’s acquisition
of Olaregen on January 7, 2019 to acquire a 51% interest, the Company was issued 3,282,632 shares of Olaregen common stock from
Olaregen shareholders. In May 2019, the Company issued 4,000,000 shares of common stock contributed and provided by the Friends
of Generex Trust and a $2 million note payable for the acquisition of 592,683 shares of Series A Preferred Stock of Olaregen pursuant
to a Stock Purchase Agreement entered into January 14, 2019 subject to the approval of the Board of Directors of Olaregen and consummated
on May 10, 2019. The provided shares by the Friends of Generex Trust were already issued and outstanding and did not result in
any expense of the Company. Since these shares were transferred, to the shareholders of Olaregen, by an existing shareholder to
settle an obligation of the Company, the value of the shares provided by the Friends of the Generex Trust to settle the debt was
reflected in the financial statements as an addition to contributed (paid-in) capital.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 14, 2020, the remaining stockholders
of Olaregen exchanged all of its outstanding shares for 5,950,000 shares of Generex common stock and 2,765,000 shares of NGIO.
After this transaction Olaregen became a 100% owned subsidiary.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Veneto</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 1, 2018, the Company completed
its second closing of Veneto Holdings, L.L.C. (“Veneto”) which granted the Company Rapport Services, LLC (“Rapport”)
through the ownership of the units of Class B membership interests providing control of Rapport as only the Class B Member is entitled
to elect the nominees to the Board of Managers, which constitute a one percent (1%) ownership in Rapport. The remaining interests
represent a 99% non-controlling interest. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>NuGenerex Immuno-Oncology, Inc.</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 14, 2020, NGIO entered into a purchase
agreement with an investor Oasis Capital, LLC (“Oasis”) pursuant to which Oasis has agreed to purchase from the Company
up to $50,000,000 of common stock at 92% of the market price for the period of five (5) consecutive trading days immediately subject
to a put notice on such date on which the purchase price is calculated in accordance with the terms and conditions of the agreement
(subject to certain limitations) from time to time over a 36-month period. NGIO also issued to Oasis 300,000 shares of its common
stock under the Oasis Capital Agreement as a commitment fee in connection with a registration statement. This transfer has been
accounted through common stock and additional paid in capital which has no net effect on equity.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of October 31, 2020, 400,300,000 shares
of NGIO are issued and outstanding of which 36,296,849 shares belong to non-controlling interest shareholders which represents
a 9.07% non-controlling interest.<b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">During September 2020 and October 2020,
the entire note was converted into common stock.</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Amount</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 71%"><font style="font-size: 10pt">Balance of notes payable on July 31, 2020</font></td>
<td style="width: 10%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 17%; text-align: right"><font style="font-size: 10pt">11,166,359</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Increase in debt due to default</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">255,080</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td><font style="font-size: 10pt">Amortization of debt discount</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">174,049</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Conversions</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(1,077,086</font></td>
<td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Payments</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(60,000</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Balance of notes payable on October 31, 2020</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">10,458,402</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>As of October 31, 2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>As of July 31, 2020</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 58%"><font style="font-size: 10pt">Notes payable</font></td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">10,709,655</font></td>
<td style="width: 1%"> </td>
<td style="width: 8%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 11%; text-align: right"><font style="font-size: 10pt">11,591,661</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Less: debt discount</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(251,253</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(425,302</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td><font style="font-size: 10pt">Total debt, net of discount</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">10,458,402</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">11,166,359</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Notes payable, net - noncurrent</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">499,839</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">499,656</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">Notes payable, net - current</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">9,958,563</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">10,666,703</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font-size: 10pt"><b>Common Stock Payable</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 71%"><font style="font-size: 10pt"><b>Balance as of July 31, 2020</b></font></td>
<td style="width: 10%"> </td>
<td style="width: 1%">$</td>
<td style="width: 17%; text-align: right">10,079,449</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 10pt"><font style="font-size: 10pt">Issuance of common stock payable</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(1,472,826</font></td>
<td><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="padding-bottom: 1pt; padding-left: 10pt"><font style="font-size: 10pt">Change in fair value of common stock payable</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font-size: 10pt">(123,230</font></td>
<td style="padding-bottom: 1pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt"><font style="font-size: 10pt"><b>Balance as of October 31, 2020</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid">$</td>
<td style="border-bottom: black 1pt solid; text-align: right">8,483,393</td>
<td style="padding-bottom: 1pt"> </td></tr>
</table>