Financial Analysis

Note 7 Commitments and Contingencies In October 2018, the Company entered into a two-year sublease agreement for approximately 3,360 square feet of office space in Orlando, Florida. In August 2020, the Company provided $117,336 in security deposit and entered into a 39-month lease agreement which allowed the Company to expand its office space to 10,080 square feet. On October 31, 2023, we entered into a First Amendment that extended our lease until October 31, 2028 (see Note 8). On November 15, 2024, the Companys Chief Operating Officer employment agreement was amended whereby Mr. Savine is eligible to receive a performance bonus payable in cash only in an amount equal to the fair market value of: (i) 112,500 shares; and (ii) 100,000 warrants for Class A common stock exercised on a cashless basis with an exercise price of $2.00 per share. The initial term of the Savine Employment Agreement expired on May 12, 2025. The Savine Employment Agreement automatically renews on a month-to-month basis until either party terminates it. To be eligible for the bonus, Mr. Savine must be continuously employed during the term of the agreement, and the Company must have successfully completed a liquidity event, which may occur after the employment term. A Liquidity Event is defined in the Savine Employment Agreement as either: (i) (a) a merger, consolidation, reorganization, or business combination; or (b) a sale or other disposition of all or substantially all of our assets in any single tra …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 5 Debt Convertible Notes Payable Related Party In June 2016, the Chief Executive Officer of the Company (CEO), William Mobley, loaned the Company $111,000, at an interest rate of 12% per annum. The loan matured on December 31, 2017, and the note is convertible into shares of Class B common stock at a conversion price of $0.50 per share. The note was converted on March 29, 2024. As of March 29, 2024, and June 30, 2023, accrued interest charges related to this loan were $25,020 and $19,003, respectively. The outstanding principal and accrued interest balance on March 29, 2024, of $92,068 was converted into 184,136 shares of Class B common stock. As of June 30, 2026, the outstanding principal and interest due to William Mobley was $0. On May 3, 2024, the Company signed a convertible promissory note with Nextelligence in the principal amount of $1,000,000. The note accrued interest at 12% per annum and was due and payable no later than May 3, 2025. At Nextelligences option, all or part of the outstanding principal and accrued interest may be converted into shares of our Class A common stock at a conversion price of $8.00 per share. On July 1, 2024, the Company repaid $1,075,000 on the convertible promissory note with related party Nextelligence. On December 13, 2024, the Company renewed and modified the original May 3, 2024, note to incorporate additional borrowings. On July 26, 2025, the Company approved the conversion of all outstanding principal and interest into common s …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Note 9 Income Taxes The Company adopted Accounting Standards Update (ASU) 2023-09, Improvements to Income Tax Disclosures, effective for its annual reporting period ended June 30, 2026, using a retrospective approach. The adoption primarily impacted presentation and disclosure requirements, resulting in enhanced income tax disclosures, including the effective tax rate reconciliation and related tax information. The adoption did not have an impact on the Companys income tax provision, effective tax rate, deferred tax assets or liabilities, or overall financial position and results of operations. The Company evaluated the impact of tax law changes enacted under the One Big Beautiful Bill Act (OBBBA). The Company determined that the provisions related to bonus depreciation were applicable and elected to claim 100% bonus depreciation on qualified property placed in service during the year. The impact of this provision was reflected in the Companys current tax depreciation deductions and related deferred tax balances. At June 30, 2026, the Company has approximately $75,748,574 of operating loss carryforwards for federal and $75,744,135 for Florida state tax purposes that may be applied against future taxable income. Of the $75.7 million of net operating losses, $8.4 million will begin to expire in the year 2032 if not utilized prior to that date. The remaining amount of $67.3 million will not have an expiration date but will be limited to 80% of taxable income. There is no provisi …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Note 8 Leases The Company currently has two active leases, an office lease, as well as an office copier under non-cancellable operating leases with initial terms typically ranging from 1 to 3 years. At contract inception, the Company reviews the facts and circumstances of the arrangement to determine if the contract is or contains a lease. The Company follows the guidance in Topic 842 to evaluate whether the contract has an identified asset; if the Company has the right to obtain substantially all economic benefits from the asset; and if the Company has the right to direct use of the underlying asset. When determining if a contract has an identified asset, the Company considers both explicit and implicit assets, and whether the supplier has the right to substitute the asset. When determining if the Company has the right to direct the use of an underlying asset, the Company considers if they have the right to direct how and for what purpose the asset is used throughout the period of use and if they control the decision-making right over the asset. The Companys lease terms may include options to extend or terminate the lease. The Company exercises judgment to determine the term of those leases when extension or termination options are present and include such options in the calculation of the lease term when it is reasonably certain that it will exercise those options. The Company has elected to include both lease and non-lease components in the determination of lease payments. …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Issued Accounting Pronouncements The Company has reviewed the recent accounting pronouncements issued by the Financial Accounting Standards Board (FASB), including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the SEC, and determined that these pronouncements do not have a material impact on the Companys current or anticipated consolidated financial statement presentation or disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures (ASU 2023-09). ASU 2023-09 requires that an entity, on an annual basis, disclose additional income tax information, primarily related to the rate reconciliation and income taxes paid. The amendment in the ASU is intended to enhance the transparency and decision usefulness of income tax disclosures. The ASUs amendments are effective for annual periods beginning after December 15, 2024. The Company adopted ASU 2023-09 during fiscal 2026. The adoption did not have a material impact on the Companys financial position, results of operations or cash flows, but resulted in additional income tax disclosures in the notes to the financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The standard is ef …

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Note 10 Related Party Transactions All related party transactions are reviewed and approved by the Companys Board of Directors or Audit Committee to ensure they are conducted in the best interest of shareholders. License agreement On June 30, 2011, we entered into a Technology License and Development Agreement, with Nextelligence, which is majority owned and controlled by the Companys CEO. Nextelligence is the Companys largest shareholder with more than 40% of outstanding Class A common stock prior to the listing of our Class A common stock on Nasdaq. In connection with the Technology Agreement, we issued 10,002,000 shares of our Class A common stock to Nextelligence. The Technology Agreement expires on June 30, 2054, unless its terminated earlier based on termination events as defined in the Technology Agreement. Convertible Notes Payable The Company has entered into various convertible promissory note arrangements with Nextelligence, Inc., a related party. Additional information regarding the terms, modifications, conversions, and balances associated with these arrangements is included in Note 5. Issuance of Class B Common Shares On May 16, 2024, in conjunction with the Reverse Split and Amendment, where defined in these notes to the financial statements, Nextelligence, Inc. agreed to forfeit and cancel 20,000,000 shares of Class A common stock in exchange for the issuance of 4,000,000 shares of Series A preferred stock (see Note 6). On July 29, 2024, the Companys largest s …

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Note 3 Segment Reporting The Company operates as a single operating and reportable segment. The Companys Chief Executive Officer , who is the chief operating decision maker (CODM), reviews financial information on a consolidated basis for purposes of allocating resources and evaluating financial performance. The Companys operations are organized as a single segment because the nature of its products and services, production processes, customer base, distribution methods and economic characteristics are similar. Accordingly, the Company has one operating and reportable segment. …

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Note 2 Summary of Significant Accounting Policies Basis of Presentation The accompanying financial statements have been prepared in accordance with GAAP and include all adjustments necessary for the fair presentation of the Companys financial position for the periods presented. Use of Estimates The preparation of these financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and disclosure in the accompanying notes. Actual results may differ from those estimates, and such differences may be material to the financial statements. The more significant estimates and assumptions by management include among others: accounts receivable realization, the valuation allowance on deferred tax assets, the valuation of the Companys Class A common stock, options, warrants and revenue recognition. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities at the date of purchase of year or less to be cash equivalents. Cash and cash equivalents include bank demand deposits, marketable securities with maturities of year ended or less at purchase, and money market funds that invest primarily in certificates of deposits, commercial paper and U.S. government and U.S. government agency obligations. Cash equivalents are reported at fair value. As of June 30, 2026, the Companys cash balance exceeded the FDIC insured limit by $8.7 million. Accounts receiva …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Note 6 Stockholders Equity (Deficit) and Mezzanine Equity Preferred Stock The Preferred Stock is divided into series, with the first series designated Series A Preferred Stock and consisting of 4,000,000 shares (the Series A Shares). Our board of directors may designate the remaining 1,000,000 authorized but unissued shares of Preferred Stock with such rights and privileges as the board of directors may determine without notice to our shareholders and without shareholder approval. As of June 30, 2026, and 2025, there were 4,000,000 shares of Series A Preferred Stock issued and outstanding, respectively. On May 16, 2024, in conjunction with the Reverse Split and Amendment, the Companys largest shareholder Nextelligence, Inc., which is a related party and controller by the Companys CEO, agreed to forfeit and cancel 20,000,000 shares of Class A common stock in exchange for the issuance of 4,000,000 shares of Series A preferred stock. The Company determined the Series A Preferred Stock is classified as temporary mezzanine equity because the redemption rights are not solely within the Companys control because the Companys CEO, William Mobley is able to force the Company to redeem the shares for cash. Accordingly, the Company classifies the Series A Preferred Stock as mezzanine equity pursuant to ASC 480-10-S99. The Company accounted for the issuance of the Series A Preferred Stock at its fair value of $115,000,000. Subsequently, the Company has adjusted the carrying value of the S …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Note 11 Subsequent Events The Company evaluated subsequent events through the date the financial statements were issued and determined that except for the following subsequent events, there have been no additional subsequent events that would require recognition in the financial statements or disclosure in the notes to the financial statements: On July 2, 2026, the Company entered into a Securities Purchase Agreement with a group of accredited investors pursuant to a private placement financing. Under the agreement, the Company agreed to issue 7,910,474 shares of Class A common stock, consisting of 4,666,667 shares of Class A common stock and pre-funded warrants exercisable for up to 3,243,807 shares of Class A common stock for net proceeds of $22.3 million. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

Note 7 Commitments and Contingencies In October 2018, the Company entered into a two-year sublease agreement for approximately 3,360 square feet of office space in Orlando, Florida. In August 2020, the Company provided $117,336 in security deposit and entered into a 39-month lease agreement which allowed the Company to expand its office space to 10,080 square feet. On October 31, 2023, we entered into a First Amendment that extended our lease until October 31, 2028 (see Note 8). On November 15, 2024, Chris Savine, the Company Chief Operating Officer employment agreement was amended whereby Mr. Savine is eligible to receive a performance bonus payable in cash only in an amount equal to the fair market value of: (i) 112,500 shares; and (ii) 100,000 warrants for Class A common stock exercised on a cashless basis with an exercise price of $2.00 per share. To be eligible for the bonus, Mr. Savine must be continuously employed during the term of the agreement, and the Company must have successfully completed a liquidity event, which may occur after the employment term. A Liquidity Event is defined in the Savine Employment Agreement as either: (i) (a) a merger, consolidation, reorganization, or business combination; or (b) a sale or other disposition of all or substantially all of our assets in any single transaction or series of related transactions; or (ii) (a) a primary offering of our Class A common stock by us to the general public through an effective registration statement fi …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 5 Debt Convertible Notes Payable Related Party In June 2016, the Chief Executive Officer of the Company (CEO), William Mobley, loaned the Company $111,000, at an interest rate of 12% per annum. The loan matured on December 31, 2017, and the note is convertible into shares of Class B common stock at a conversion price of $0.50 per share. The note was converted on March 29, 2024. The outstanding principal and accrued interest balance on March 29, 2024, of $92,068 was converted into 184,136 shares of Class B common stock. As of June 30, 2025, the outstanding principal and interest due to William Mobley was $0. On May 3, 2024, the Company signed a convertible promissory note with Nextelligence, a related party that is majority owned and controlled by William Mobley, the Companys CEO, in the principal amount of $1,000,000. The note accrues interest at 12% per annum and is due and payable no later than May 3, 2025. At Nextelligences option, all or part of the outstanding principal and accrued interest may be converted into shares of our Class A common stock at a conversion price of $8.00 per share. On July 1, 2024, the Company repaid $1,075,000 on the convertible promissory note with related party Nextelligence. On December 13, 2024, the Company renewed and modified the original May 3, 2024, note to incorporate additional borrowings. On July 26, 2025, the Company approved the conversion of all outstanding principal and interest into common shares at a conversion price of $8 pe …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Net sales disaggregated by significant products and services for the three months ended December 31, 2025, and 2024, were as follows: For the three months ended December 31, 2025 2024 Membership (1) $ 15,687 $ 39,063 FAST Revenue related parties (2) 46,381 62,345 Ad Revenue (3) 22 50,132 Other Revenue - 5 Total $ 62,090 $ 151,545 Net sales disaggregated by significant products and services for the six months ended December 31, 2025, and 2024, were as follows: For the six months ended December 31, 2025 2024 Membership (1) $ 37,807 $ 77,191 FAST Revenue related parties (2) 101,047 141,484 Ad Revenue (3) 119,036 50,132 Other Revenue 60 1,145 Total $ 257,950 $ 269,952 (1) Membership sales refer to customers purchasing premium content through our SmartGuide for varying fees and recognized on a gross basis over the service period determined. (2) We provide end-to-end software solutions for development of FAST (Free Ad-Supported TV) channels to customers such as content creation, production, video studio rental, etc. to aid in the creation of content for their channels and a platform fee for distributing the channel. Revenue is recognized at the point in time the services are performed for the development of FAST channels. We charge a monthly platform fee for distributing the FAST channel on our platform. We recognized related party revenue of $46,381 and $101,047 ($89,047 for FAST channel buildouts and $12,000 for channel streaming) for the three and six months ended December 31, 2 …

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Note 8 Leases The Company currently has one active lease, an office lease, under a non-cancellable operating lease with initial terms typically ranging from 1 to 3 years but previously extended the lease for an additional 5 years. At contract inception, the Company reviews the facts and circumstances of the arrangement to determine if the contract is or contains a lease. The Company follows the guidance in Topic 842 to evaluate whether the contract has an identified asset; if the Company has the right to obtain substantially all economic benefits from the asset; and if the Company has the right to direct use of the underlying asset. When determining if a contract has an identified asset, the Company considers both explicit and implicit assets, and whether the supplier has the right to substitute the asset. When determining if the Company has the right to direct the use of an underlying asset, the Company considers if they have the right to direct how and for what purpose the asset is used throughout the period of use and if they control the decision-making right over the asset. The Companys lease terms may include options to extend or terminate the lease. The Company exercises judgment to determine the term of those leases when extension or termination options are present and include such options in the calculation of the lease term when it is reasonably certain that it will exercise those options. The Company has elected to include both lease and non-lease components in the …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Note 9 Related Parties All related party transactions are reviewed and approved by the Companys Board of Directors or Audit Committee to ensure they are conducted in the best interest of shareholders. On June 30, 2011, we entered into a Technology License and Development Agreement, which was amended and restated on October 19, 2012, amended on July 1, 2013 and amended and restated a second time on July 31, 2014 and further revised to terminate all payments by us pursuant to the agreement, effective June 30, 2016, with Nextelligence, which is majority owned and controlled by William A. Mobley, Jr. The Technology Agreement provides us with an exclusive license for certain technology from Nextelligence and for Nextelligence to provide all further development, improvement, modification, maintenance, management and enhancement services related to such technology. Nextelligence is our largest shareholder with more than 40% of our outstanding Class A common stock prior to the listing of our Class A common stock on Nasdaq. In connection with the Technology Agreement, we issued 10,002,000 shares of our Class A common stock to Nextelligence. The Technology Agreement expires on June 30, 2054, unless its terminated earlier based on termination events as defined in the Technology Agreement. On May 3, 2024, the Company signed a convertible promissory note with Nextelligence in the principal amount of $1,000,000. The note accrues interest at 12% per annum and is due and payable no later tha …

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Note 10 Disaggregation of Revenues Net sales disaggregated by significant products and services for the three months ended December 31, 2025, and 2024, were as follows: For the three months ended December 31, 2025 2024 Membership (1) $ 15,687 $ 39,063 FAST Revenue related parties (2) 46,381 62,345 Ad Revenue (3) 22 50,132 Other Revenue - 5 Total $ 62,090 $ 151,545 Net sales disaggregated by significant products and services for the six months ended December 31, 2025, and 2024, were as follows: For the six months ended December 31, 2025 2024 Membership (1) $ 37,807 $ 77,191 FAST Revenue related parties (2) 101,047 141,484 Ad Revenue (3) 119,036 50,132 Other Revenue 60 1,145 Total $ 257,950 $ 269,952 (1) Membership sales refer to customers purchasing premium content through our SmartGuide for varying fees and recognized on a gross basis over the service period determined. (2) We provide end-to-end software solutions for development of FAST (Free Ad-Supported TV) channels to customers such as content creation, production, video studio rental, etc. to aid in the creation of content for their channels and a platform fee for distributing the channel. Revenue is recognized at the point in time the services are performed for the development of FAST channels. We charge a monthly platform fee for distributing the FAST channel on our platform. We recognized related party revenue of $46,381 and $101,047 ($89,047 for FAST channel buildouts and $12,000 for channel streaming) for the three …

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Note 3 Segment Reporting The Company operates as a single operating and reportable segment. Management evaluates performance and allocates resources on a consolidated basis. Accordingly, separate segment information is not presented. …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 2 Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles 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 the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments except those otherwise described herein) considered necessary for a fair presentation have been included, unless otherwise disclosed. Operating results for the current quarter ended December 31, 2025, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2026. The Condensed Balance Sheet at December 31, 2025, has been derived from the unaudited Financial Statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The financial statements should be read in conjunction with the annual audited Financial Statements and Notes thereto. Use of Estimates The preparation of these financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and disclosure in the accompanying notes. …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Note 6 Stockholders Deficit and Mezzanine Equity Preferred Stock The Preferred Stock is divided into series, with the first series designated Series A Preferred Stock and consisting of 4,000,000 shares (the Series A Shares). Our board of directors may designate the remaining 1,000,000 authorized but unissued shares of Preferred Stock with such rights and privileges as the board of directors may determine without notice to our shareholders and without shareholder approval. As of December 31, 2025, and June 30, 2025, there were 4,000,000 shares of Series A Preferred Stock issued and outstanding, respectively. A summary of the powers, preferences, rights, privileges, restrictions, and other matters relating to the Series A Shares are as follows: Dividends . In any fiscal year Series A Shares are outstanding where the Company has revenue of more than $50,000,000, the holder of the Series A Shares (the Series A Shareholder) shall be entitled to receive an annual cash dividend equal to ten percent of any revenue above $50,000,000 (the Annual Dividend Payment). Subject to meeting the above criteria for such fiscal year, Annual Dividend Payments shall continue until such time as the aggregate amount of all Annual Dividend Payments is equal to the lesser of: (i) $160,000,000; or (ii) the product of the then number of outstanding shares of Series A Preferred Stock and $40 (as may be adjusted for any subdivisions or combinations) (the Maximum Dividend Payment). Notwithstanding the above …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Note 11 Subsequent Events The Company evaluated subsequent events through March 27, 2026, the date the financial statements were issued, and determined that except for the following subsequent events, there have been no additional subsequent events that would require recognition in the financial statements or disclosure in the notes to the financial statements other than the following: Between December 31, 2025, and March 27, 2026, the Company has received an additional $2,263,500 in advances on the Nextelligence revolving convertible note payable. As of March 27, 2026, the total outstanding principal is $4,689,052 and the accrued interest balance is $120,546 for a total outstanding balance of $4,809,598. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing