Financial Analysis

Note 5. Convertible Notes Payable In December 2024, the Company issued convertible notes payable to three investors in exchange for $ 650,000 . During the year ended December 31, 2025, the Company issued 0 % interest convertible notes payable to three investors in exchange for $ 190,000 . The convertible notes mature six months following that date of issuance and do not accrue interest. The notes are convertible into common shares as follows: (i) on the next equity financing conversion: the principal balance on each note will convert into shares upon the closing of the next equity financing. The number of conversion shares the Company issues upon such conversion will equal the quotient obtained by dividing (x) the outstanding principal balance under each converting note on the closing date of the next equity financing by (y) the applicable conversion price of the product of (x) 100% less the discount of 25% and (y) the lowest per share purchase price of the equity securities issued in the next equity financing; and/or (ii) corporate transaction conversion: at the closing of a major corporate transaction, the note will convert into that number of conversion shares equal to the quotient obtained by dividing (x) the outstanding principal balance of such note on the closing of such corporate transaction by (y) the applicable conversion price of the product of (x) 100% less the discount of 25% and (y) the volume weighted average trading price on the date that is ten days immediate …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The Company disaggregates revenue between subscription and license revenue and training and education revenue. Schedule of Disaggregation of Revenue December 31, 2025 December 31, 2024 For the Years Ended December 31, 2025 December 31, 2024 Subscription, license and software revenue $ 617,430 $ 27,804 Professional Services 868,881 3,500 OEM Solution 19,555 - Total Revenue $ 1,505,866 $ 31,304

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Note 9. Income Tax The Company is subject to United States federal income taxes at an approximate rate of 21%. The reconciliation of the provision for income taxes at the United States federal statutory rate compared to the Companys income tax expense as reported is as follows: Schedule of Income Tax Rate Reconciliation Year Ended Year Ended December 31, December 31, 2025 2024 Income tax benefit computed at the statutory rate $ 806,000 $ 965,000 Tax effect of: True-up and non-deductible expenses (183,000 ) (422,000 Change in valuation allowance (623,000 ) (543,000 ) Provision for income taxes $ $ The Company adopted ASC 2023-09 during the year ended December 31, 2025 prospectively. A reconciliation setting forth the differences between the effective tax rates and the U.S. federal statutory tax rate is as follows: Amount Rate Year Ended December 31, 2025 Amount Rate US federal statutory tax rate $ 806,000 21.0 % Changes in valuation allowances (623,000 ) -16.2 % Non-taxable or non-deductible items (183,000 ) -4.8 % Effective income tax rate $ 0 % Significant components of the Companys deferred tax assets and liabilities after applying enacted corporate income tax rates are as follows: Schedule of Deferred Tax Assets and Liabilities As of As of December 31, December 31, 2025 2024 Deferred income tax assets Net operating losses $ 4,691,000 $ 4,069,000 Valuation allowance (4,691,000 ) (4,069,000 ) Net deferred income tax assets $ $ As of December 31, 2025, the Company currently h …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Note 6. Promissory Notes On September 11, 2025, the Company entered into a Promissory Note for a principal amount of $ 353,050 with the Company receiving cash proceeds of $ 300,000 . The Company recognized debt discount of $ 53,050 at the issuance of the notes. The note matures on August 30, 2026 , and bears a one-time interest of 12% or $ 42,366 . Any amount of principal or interest which is not paid when due shall bear interest at the rate of 22% per annum from the due date. Additionally, in the event of default, the holder may convert all or any part of the outstanding and unpaid amount of this note into shares of Companys common stock with a discount rate of 35% on the lowest trading price of the common stock during the ten trading days prior to the conversion date . The Company recognized amortization on the debt discount of $ 17,683 during the year ended December 31, 2025. As of December 31, 2025, the principal balance of the note was $ 353,050 with an unamortized debt discount of $ 35,367 . On October 13, 2025, the Company entered into a Promissory Note for a principal amount of $ 88,550 with the Company receiving cash proceeds of $ 70,000 . The Company recognized debt discount of $ 18,550 at the issuance of the notes. The note matures on August 15, 2026 and bears a one-time interest of 15% or $ 13,282 . Any amount of principal or interest which is not paid when due shall bear interest at the rate of 22% per annum from the due date. Additionally, in the event of defaul …

LongTermDebtTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements Income Taxes In December 2023, the FASB issued Accounting Standards Update (ASU) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09). ASU 2023-09 requires enhanced disclosures surrounding income taxes, particularly related to rate reconciliation and income taxes paid information. In particular, on an annual basis, companies will be required to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. Companies will also be required to disclose, on an annual basis, the amount of income taxes paid, disaggregated by federal, state, and foreign taxes, and also disaggregated by individual jurisdictions above a quantitative threshold. The standard is effective for the Company for annual periods beginning January 1, 2025 on a prospective basis, with retrospective application permitted for all prior periods presented. We adopted ASU No. 2023-09 during the year ended December 31, 2025, which had no material impact on the Companys financial statements. Disaggregation of Income Statement Expenses In November 2024, the FASB issued Accounting Standards Update No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) (ASU 2024-03). ASU 2024-03 requires specified information about certain costs and expenses be disclosed in the notes to the financial statements, including …

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Note 4. Related Party Transactions Expense paid on the Companys behalf During the years ended December 31, 2025 and 2024, Mr. Day, a significant shareholder and former President and CFO, paid $ 345,984 and $ 341,108 of expenses on the Companys behalf. The Company repaid $ 416,332 and $ 275,097 during the years ended December 31, 2025 and 2024, respectively. The advances accrued interest at the rate of 14 %. As of December 31, 2025 and December 31, 2024, the balance owed to Mr. Day, with accrued interest, was $ 0 and $ 70,348 , respectively. Accrued salary and interest As of December 31, 2025, the accrued related party salary and accrued interest expense was $ 97,000 and $ 12,307 , respectively. As of December 31, 2024, the accrued related party salary and accrued interest expense was $ 364,500 and $ 23,121 , respectively. Senior secured notes payable On May 10, 2024, the Company (the Grantor) entered into a secured promissory note payable for $ 225,000 with Rowland Day (the Lender). The note is secured by the assets of the Company and will accrue interest at the rate of 14% per annum. The note is payable on demand. If the Lender does not demand payment, the note matures the earlier of; (i) November 10, 2024, (ii) the closing of a minimum of $500,000 in a subsequent financing of either debt or equity; (iii) a subsequent registration statement with minimum proceeds of one million dollars ($1,000,000) is received by the Company; and /or (iv) a change in control transaction occur …

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Note 2. Summary of Significant Accounting Policies Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates in the accompanying financial statements involving the valuation of stock-based compensation, fair value measurement and long-term customer contracts. Cash and Cash Equivalents Cash equivalents include all highly liquid investments with original maturities of three months or less. Accounts Receivable Accounts receivables are comprised of unsecured amounts due from customers. The Company carries its accounts receivable at their face amounts less an allowance for credit losses. The allowance for credit losses is recognized based on managements estimate of likely losses per year, past experience, review of customer profiles and the aging of receivable balances. As of December 31, 2025 and 2024, there was $ 1,160 and $ 1,160 of allowance for credit losses, respectively. Property and Equipment Property and equipment are valued at cost. Additions are capitalized and maintenance and repairs are charged to expense as incurred. Depreciation is provided using the straight-line method over the estimated useful lives of the assets as follows: Schedule of Property and Equipment Estimated Category Useful Lives …

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Note 7. Equity The Company is currently authorized to issue up to 500,000,000 shares of common stock with a par value of $ 0.001 . In addition, The Company is authorized to issue 50,000,000 shares of preferred stock with a par value of $ 0.001 . The specific rights of the preferred stock, when so designated, shall be determined by the board of directors. On May 1, 2023, the Company amended their articles of incorporation to increase the authorized B-1 preferred shares to 8,619,420 shares. Common Stock 2025 On April 1, 2025, the Company issued 1,000,000 common shares at $ 0.50 per share for a net proceed of $ 475,000 . The Company paid $ 25,000 as a finder fee to a consultant related to the issuance. On April 17, 2025, the Company issued 100,000 common shares for service performed. The grant-date fair value of these shares was $ 23,000 , calculated using the market price of $ 0.23 of the common stock on the date of grant. The awards are immediately vested, and the value of the issuance was recorded as stock-based compensation. 2024 During the year ended December 31, 2024, the Company issued 969,500 shares of common stock for cash and collected $ 725,600 . On November 25, 2024, the Company issued 1,500,000 shares of common stock to a consultant for service that were valued at $ 652,500 . On November 25, 2024, the Board approved the issuance of additional 2,325,983 shares of common stock to shareholders. The shares were issued to shareholders who previously entered into subscrip …

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Note 10. Subsequent Events On December 16, 2025, the Company issued 0 % interest convertible notes payable to a the director nominee in exchange for $ 200,000 . The funds were available to the Company on January 13, 2026. The convertible notes mature six months following that date of issuance and do not accrue interest. The note is convertible into common shares as follows: (i) on the next equity financing conversion: the principal balance on each note will convert into shares upon the closing of the next equity financing. The number of conversion shares the Company issues upon such conversion will equal the quotient obtained by dividing (x) the outstanding principal balance under each converting note on the closing date of the next equity financing by (y) the applicable conversion price of the product of (x) 100% less the discount of 25% and (y) the lowest per share purchase price of the equity securities issued in the next equity financing; and/or (ii) corporate transaction conversion: at the closing of a major corporate transaction, the note will convert into that number of conversion shares equal to the quotient obtained by dividing (x) the outstanding principal balance of such note on the closing of such corporate transaction by (y) the applicable conversion price of the product of (x) 100% less the discount of 25% and (y) the volume weighted average trading price on the date that is ten days immediately prior to the closing date of the corporate transaction; and/or (iii …

SubsequentEventsTextBlock · excerpt; the full note is in the filing