Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations.

FORWARD-LOOKING STATEMENTS

The following discussion may contain forward-looking statements regarding the Company, its business prospects and its results of operations that are subject to certain risks and uncertainties posed by many factors and events that could cause the Company's actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. These forward-looking statements reflect our view only as of the date of this report. The Company cannot guarantee future results, levels of activity, performance, or achievement. The Company does not undertake any obligation to update or correct any forward-looking statements.

Revenues

We had no revenue for the three or nine months ended September 30, 2026 and 2025

Operating Expenses

Operating expenses increased to $46,166 for the three months ended September 30, 2026, from $27,935 for the same period ended September 30, 2025. Operating expenses decreased to $166,595 for the nine months ended September 30, 2026, from $63,756 for the same period ended September 30, 2025. The increase in operating expenses is mainly the result of the increase in professional fees during the three and nine month periods.

Other Expense

We had other expense of $11,942 for the three months ended September 30, 2026, as compared with other expenses of $8,367 for the three months ended September30, 2025. We had other expense of $31,734 for the nine months ended September 30, 2026, as compared with other expenses of $26,183 for the nine months ended June 30, 2025. Other expenses consisted of accrued interest expense and increased as a result of the Company issuing additional debt during 2026.

Net Loss

We recorded a net loss of $58,108 for the three months ended September 30, 2026, as compared with a net loss of $36,302 for the three months ended September 30, 2025. We recorded a net loss of $198,329 for the nine months ended September 30, 2025, as compared with a net loss of $89,939 for the nine months ended June 30, 2025.The change in net income was the result of the factors described above.

Liquidity and Capital Resources

Going concern - The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred cumulative net losses of $29,799,115 since its inception and requires capital for its contemplated operational and marketing activities to take place. The Company's ability to generate the necessary funds through licensing of its core products or the ability to raise additional capital through the future issuances of common stock or debt is unknown. The obtainment of additional financing, the successful development of the Company's contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations. These factors, among others, raises substantial doubt about the Company's ability to continue as a going concern. The condensed consolidated financial statements of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties.

As of September 30, 2026, we had total assets in the amount of $0. Our total current liabilities as of September 30, 2026 were $829,189. We had a working capital deficit of $829,189 as of September 30, 2026, compared with a working capital deficit of $630,860 as of December 31, 2025.

Operating activities used $117,084 in cash for the nine months ended September 30, 2026, as compared with $47,701 used for the nine months ended September 30, 2025. Our negative operating cash flows for 2026 and 2025 were largely the result of our net loss for those quarters, mainly offset by changes in operating assets and liabilities and the amortization of debt discount and amortization.

Cash flow provided from financing activities was $117,084 for the nine months ended September 30, 2026, as compared with $47,701 provided by cash flows for financing activities during the nine months ended September 30, 2025. Our debt from financing activities consist of the issuance of notes payable.

Based upon our current financial condition, we do not have sufficient cash to operate our business at the current level for the next twelve months. We intend to fund operations through increased sales and debt and/or equity financing arrangements, which may be insufficient to fund expenditures or other cash requirements. We plan to seek additional financing in a private equity offering to secure funding for operations. There can be no assurance that we will be successful in raising additional capital.