Annual Report for Fiscal Year Ending 06-30, 2026 (Form 10-K)

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following discussion should be read in conjunction with our audited financial statements and notes thereto included herein. In connection with, and because we desire to take advantage of, the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, we caution readers regarding certain forward-looking statements in the following discussion and elsewhere in this Report and in any other statement made by, or on our behalf, whether or not in future filings with the Securities and Exchange Commission. Forward looking statements are statements not based on historical information and which relate to future operations, strategies, financial results or other developments. Forward looking statements are necessarily based upon estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control and many of which, with respect to future business decisions, are subject to change. These uncertainties and contingencies can affect actual results and could cause actual results to differ materially from those expressed in any forward-looking statements made by, or on our behalf. We disclaim any obligation to update forward looking statements.

Accounting and audit plan

Our independent auditor is expected to charge us approximately $15,000 to review our quarterly financial statements and approximately $12,000 to audit our annual financial statements. In the next twelve months, we anticipate spending approximately $27,000 to pay for our accounting and audit requirements.

Limited operating history

We have limited historical financial information upon which to base an evaluation of our performance. We are in early stage operations and generated our first revenues of $20,000 during the year ended June 30, 2026. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible cost overruns due to price and cost increases in services and products.

Need for additional capital

We have no assurance that future financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations. Equity financing could result in additional dilution to existing shareholders.

Off balance sheet arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

Results of operations

During the year ended June 30, 2026, we generated revenue of $20,000 (2025 - $nil) from the sale of basketball merchandise inventory to a single customer. Cost of goods sold was $15,755, resulting in gross profit of $4,245. Operating expenses were $79,538 compared to $20,118 for the year ended June 30, 2025, comprising general and administrative expenses of $359 (2025 - $263), professional fees of $35,010 (2025 - $12,428) and transfer agent and filing fees of $44,169 (2025 - $7,427). The increase in operating expenses was primarily due to fees incurred in connection with the quotation of our common stock on the OTC Markets, including OTC Markets application and annual fees and fees paid to Glendale Securities, together with higher audit and accounting fees. We also recognized other income of $4,229 from a legal settlement. Net loss for the year ended June 30, 2026 was $71,064 compared to $20,118 for the year ended June 30, 2025. Our accumulated deficit as of June 30, 2026 is $382,901.

Since inception, we have offered and sold (i) (500,000 before split) 37,500,000 shares of common stock to our officers and directors, at a purchase price of $0.0001 per share, for aggregate proceeds of $50. During the year ended June 30, 2021, the Company received $32,000 of share subscriptions relating to a private placement of common shares at $0.10 per share. During the year ended June 30, 2022, the Company received $3,000 of share subscriptions relating to a private placement of common shares at $0.10 per share. On October 15, 2021, the Company issued (350,000 before split) 26,250,000 common shares at $0.10 per share relating to private placement proceeds of $35,000 that was received as at September 30, 2021. During the year ended June 30, 2023, the Company issued (500,000 before split) 37,500,000 common shares at $0.20 per share (pre-split) to settle a promissory note of $100,000.

Liquidity and Capital Resources

As of June 30, 2026, the Company had cash of $8,013 and total assets of $69,127 compared to cash of $20 and total assets of $76,889 as at June 30, 2025. The increase in cash was primarily due to proceeds from the sale of inventory and the legal settlement received, partially offset by payments of operating costs. As at June 30, 2026, and 2025, we had total liabilities of $316,978 and $253,676 respectively, all of which are current. Our working capital deficit was $247,851 as at June 30, 2026 compared to $176,787 at June 30, 2025.

The available capital reserves of the company are not sufficient for the company to remain operational. As of June 30, 2026, and 2025, our officer and director is owed $287,019 and $234,944 respectively, for paying expenses related to our operations since our inception. The amount owing is unsecured, bears no interest, and is payable on demand.

We are highly dependent upon the success of the private offerings of equity or debt securities, as described herein. Therefore, the failure thereof would result in the need to seek capital from other resources such as taking loans, which would likely not even be possible for the company. At such time these funds are required, management would evaluate the terms of such debt financing. If the company cannot raise additional proceeds via a private placement of its equity or debt securities, or secure a loan, the company would be required to cease business operations. As a result, investors would lose all of their investment.

Cash Flows

During the year ended June 30, 2026, we used $44,082 cash in operating activities compared to $29,053 during the year ended June 30, 2025. The increase in cash used in operating activities was primarily due to higher filing fees and professional fees, partially offset by the gross profit on inventory sales and the legal settlement received.

During the year ended June 30, 2026, we received $52,075 in proceeds from a related party compared to $28,997 during the year ended June 30, 2025. Net cash provided by financing activities for the years ended June 30, 2026 and 2025 was $52,075 and $28,997, respectively.

Going concern consideration

Our auditors have issued a "going concern" opinion, meaning that there is substantial doubt about our ability to continue as a going concern for the next twelve months unless we obtain additional capital. No substantial revenues are anticipated until we have obtained additional financing and implemented our plan of operations. Our main source of cash at this time is advances from our officer and director, who is under no obligation to continue providing such advances. We must raise cash to implement our strategy and stay in business. The Company anticipates that over the next 12 months the cost of being a reporting public company, including legal and accounting fees, will be approximately $27,000.

Summary of significant accounting policies

Basis of presentation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. The Company's fiscal year end is June 30.

Income taxes

The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, "Income Taxes". The asset and liability method provides that deferred income tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred income tax assets to the amount that is believed more likely than not to be realized.

A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the company will not realize tax assets through future operations.

Use of estimates

Management uses estimates and assumption in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses.

Fair value of financial instruments

ASC 820, "Fair Value Measurement", requires the company to disclose, when reasonably attainable, the fair market values of its assets and liabilities which are deemed to be financial instruments. The company's financial instruments consist primarily of cash, accounts payable and accrued liabilities, amounts due to a related party, and loans payable.

Per share information

The Company computes net loss per share accordance with ASC 260 "Earnings per Share". ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all potentially dilutive common shares outstanding during the period. Diluted EPS excludes all potentially dilutive shares if their effect is antidilutive.