Annual Report for Fiscal Year Ending 07-31, 2026 (Form 10-K)

Management's Discussion and Analysis of our Financial Conditions and Results of Operations.

The following discussion should be read in conjunction with our consolidated financial statements and notes to our consolidated financial statements, included in "Item 8. Financial Statements and Supplementary Data." of this Report.

Results of Operations

For the year ended July 31, 2026, we generated revenues of $5,863 from the royalty interest we acquired in the Eagle Acquisition consummated in January 2024. The royalty interest provides the Company with a monthly distribution of its share of revenues from the property, net of expenses and operational risks, from an oil production property managed by a non-affiliated third party.

For the year ended July 31, 2026, we incurred cost of revenue of $4,986 from the depletion of the royalty interest we acquired in the Eagle Acquisition consummated in January 2024. The royalty interest is depleted using the straight-line method over its estimated useful economic life of 20 years, and the cost of revenue includes $3,022 of depletion attributable to prior periods, which we determined to be immaterial to the prior period consolidated financial statements.

The Company's general and administrative expenses for the year ended July 31, 2026, totaled $34,667, representing a decrease of $30,255 compared to $64,922 for the year ended July 31, 2025. The primary reason for the decrease was a significant reduction in consulting and audit expenses.

For the year ended July 31, 2026, we had a loss of $34,150 due to the general and administrative expense. All the expenses were paid by our controlling stockholder Zenith Energy, who renounced its credit.

For the year ended July 31, 2025, we generated revenues of $5,974 from the royalty interest we acquired in the Eagle Acquisition consummated in January 2024. The royalty interest provides the Company with a monthly distribution of its share of revenues from the property, net of expenses and operational risks, from an oil production property managed by a non-affiliated third party.

For the year ended July 31, 2025, we had a net profit of $31,835 due to the revenues and the positive result in the extinguishment of account payables. All the expenses were paid by our controlling stockholder Zenith Energy, who renounced its credit.

Liquidity and Capital Resources

As of July 31, 2026, our current assets consisted of $17,620 in cash, as compared to $12,118 in cash at July 31, 2025 deposits $17,617, as compared to $12,115 at July 31, 2025.

Cash Flows from Operating Activities

For the fiscal year ended July 31, 2026, net cash provided by operating activities was $5,502, consisting of our net loss for the period of $34,150, adjusted for non-cash royalty interest depletion of $4,986 and an increase in accounts payable and accrued expenses of $34,666.

For the fiscal year ended July 31, 2025, net cash provided by operating activities was $5,686, consisting of our net profit for the period of $31,835, adjusted for a non-cash gain on settlement of accounts payable of $91,071 and an increase in accounts payable and accrued expenses of $64,922.

Cash Flows from Investing Activities

For the fiscal year ended July 31, 2026 and July 31, 2025, we did not realize any investment.

Cash Flows from Financing Activities

Although no direct cash proceeds were received by the Company from financing activities during the years ended July 31, 2026 and 2025, our principal stockholder paid operating expenses and liabilities of $33,000 and $82,265, respectively, directly on behalf of the Company, which were recognized as non-cash additional paid-in capital.

Since the transfer of controlling interest in August 2023, Zenith Energy Ltd. ("Zenith Energy"), the Company's controlling stockholder, has provided $421,007 capital in the form of payment made on behalf of the Company and $45,000 paid in capital in cash. Zenith Energy has indicated that it intends to continue to finance the Company and its expansion into the energy sector, to acquire additional royalties and/or ownership interest, pending the receipt of additional financing.

Our financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP"), which contemplates our continuation as a going concern. As of July 31, 2026, we have incurred losses of $11,727,265. In addition, as of July 31, 2026 our current liabilities exceed our current assets by $118,978. These factors raise substantial doubt about our ability to continue operating as a going concern. Our ability to continue our operations as a going concern, realize the carrying value of our assets, and discharge our liabilities in the normal course of business is dependent upon our ability to raise capital sufficient to fund our commitments and ongoing losses, and ultimately generate profitable operations.

We expect we will require additional capital to meet our long-term operating requirements. We expect to raise additional capital through, among other methods, the sale of equity or debt securities. In addition, Zenith Energy, our controlling stockholder, has advised us that intends to provide the Company with working capital to fund operations and acquisitions, pending receipt of additional funding.

Critical Accounting Estimates

Our financial statements and the notes to the financial statements have been prepared in accordance with GAAP applied on a consistent basis. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.

We regularly evaluate the accounting policies and estimates that we use to prepare our financial statements. A complete summary of these policies is included in the notes to our financial statements. In general, management's estimates are based on historical experience, on information from third party professionals, and on various other assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ from those estimates made by management.

Contractual Obligations

As a "smaller reporting company" we are not required to provide this information.

Off-Balance Sheet Arrangements

None.