Quarterly Report for Quarter Ending February 28, 2026 (Form 10-Q)

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

The financial data discussed below are derived from the unaudited consolidated financial statements of the Company as of February 28, 2026, which were prepared and presented in accordance with United States generally accepted accounting principles for interim financial statements. These financial data are only a summary and should be read in conjunction with the unaudited financial statements and related notes contained herein, which more fully present the Company's financial condition and operations as at that date and with its audited financial statements and notes thereto contained in its Annual Report on Form 10-K for the year ended May 31, 2025. The results set forth in these consolidated financial statements are not necessarily indicative of the Company's future performance. This item and other parts of this report contain forward-looking statements that involve risks and uncertainties. Actual results may differ significantly from the results discussed in forward-looking statements.

Information about the Company

The Company, headquartered in Houston, Texas, conducts clinical trials for Sponsors and CROs and as a Sponsor through Alpha Research Institute, cannabis-related education in classrooms, seminars and online through Pharmacology University and sales of CBD products. For detailed information about the Company and its operations, see "Description of Business" in the Company's Annual Report on Form 10-Q for the month ended February 28, 2026.

The Company's fiscal year begins on June 1 in each year and ends on May 31 in the following year.

Going Concern

As indicated in Note 3 of the notes to the audited consolidated financial statements for the period ended February 28, 2026, and the report thereon of the Company's independent auditing firm, there is substantial doubt as to the ability of the Company to continue as a going concern. The Company has incurred recurring losses and recurring negative cash flow from operating activities and has an accumulated deficit, and its ability to continue as a going concern depends on the successful execution of its operating plan, which includes increasing sales of existing services and introducing new services, as well as raising either debt or equity financing.

The Company needs substantial additional capital to fund its business and repay its debts. No assurance can be given that any additional capital can be obtained or, if obtained, will be adequate to meet its needs, and the Company may need to take measures to remain a going concern. If adequate capital cannot be obtained on a timely basis and satisfactory terms, the Company's operations could be materially negatively impacted, or it could be forced to terminate its operations.

Overview

The Company provides educational systems focused on medical cannabis in the United States and Latin America, as well as worldwide through online education, services in therapeutic areas of clinical trials and CBD products. The Company's operating units and their activities were:

	·	Alpha Research Institute - Clinical trials and medical research.
	·	Pharmacology University - Education, consulting, digital publishing, marketing, and franchising related to medical cannabis.
	·	CBD Business - Sales of CBD products.

For detailed information about the Company and its operations, see "Description of Business" in the Company's Annual Report on Form 10-K for the year ended May 31, 2025. For further information concerning the Company and its business, see "Business."

Results of Operations

Comparison of the Quarter Ended February 28, 2026, and the Quarter Ended February 28, 2025

The following table sets forth information from the consolidated statements of operations for the quarters ended February 28, 2026, and February 28, 2025.

		Quarter Ended February 28,
		2026				2025
Revenues		$	11,205			$	14,931
Cost of revenues			3,045				19,396
Gross profit			8,160				(4,465	)
Total operating expenses			101,419				124,769
Operating loss			(93,259	)			(129,234	)
Amortization of discount			-				-
Note discount expense			-				(13,138	)
Forgiveness of debt			-				-
Change in fair value of derivative liabilities			-				(16,398	)
Interest			(10,776	)			(22,473	)
Other Income/loss			101				-
Net loss		$	(103,933	)		$	(181,243	)

Revenues

Revenues were $11,205 and $14,931 for the quarters ended February 28, 2026, and February 28, 2025, respectively, primarily due to a decrease of $42,061 in revenues from clinical trial contracts. This reduction was due to fewer clinical trial contracts taken in the 3rd quarter.

Operating Expenses

Operating expenses for the quarters ended February 28, 2026, and February 28, 2025, consisted of the following:

		Quarter Ended February,
		2026				2025
General and administrative		$	26,828			$	50,172
Contract labor			37,865				45,382
Professional fees			13,185				9,730
Officer compensation			11,089				6,000
Rent			11,469				13,270
Travel			983				215
Total operating expenses		$	101,419			$	124,769

The decrease in operating expenses was primarily due to a decrease of $23,344 in General & Administrative expense.

Operating Loss

For the reasons set forth above, operating loss decreased from $181,243 in the quarter ended February 28, 2025 to $103,933 in the quarter ended February 28, 2026, primarily due to a decrease in operating expenses from General and Administrative expense amounting to $23,344 and a decrease in Contract labor of 7,516.

Interest

Interest was $10,776 in the quarter ended February 28, 2026, and $22,473 in the quarter ended February 28, 2025.

Other Income

For the quarter February 28, 2026, and February 28, 2025, interest was $10,776 and $22,473, respectively. During the quarter ended February 28, 2025, the Company recorded an expense from Amortization of discount amounting to $13,138 and $0.00 for February 28, 2026. As a result, other income (expense) for the quarter ended February 28, 2026, and February 28, 2025, showed loss of $10,675 and loss of $52,009, respectively.

Net Loss

Net loss for the quarter ended February 28, 2026, was $92,463, compared with a net loss of $181,243 for the quarter ended February 28, 2025, for the reasons set forth above in relation to loss from operations ended February 28, 2026.

Changes in Financial Condition and Results of Operations

At February 28, 2026, the Company had $90 in cash and cash equivalents and accounts receivable of $1,266, negative working capital of $1,217,630 and no commitments for capital expenditures. At May 31, 2025, the Company had $12,952 in cash and cash equivalents, accounts receivable of $6,380, negative working capital of $916,878 and no commitments for capital expenditures. The Company have cash and cash equivalents of $81.89 on the date of this Report.

During the nine months ended February 28, 2026, the Company had net cash used in operations of negative $123,802, while during the nine months ended February 28, 2025, the Company had net cash used in operations of $185,315. During the nine months ended February 28, 2026, the Company had net cash provided by financing activities of $110,940, while during the nine months ended February 28, 2025, the Company had net cash provided by financing activities of $185,108. The Company had accumulated deficits of $6,186,448 at February 28, 2026, and $5,882,901 at May 31, 2025.

Off-Balance-Sheet Arrangements

The Company has no off-balance-sheet arrangements.

Recent Accounting Pronouncements

Refer to Note 2 of the accompanying financial statements.