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

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

FORWARD LOOKING STATEMENTS

Statements made in this Form 10-Q that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.

DESCRIPTION OF BUSINESS

Essence Array Inc. was incorporated in Wyoming on March 29, 2024. We are an early-stage company focused on the distribution of premium European health and beauty supplements in the United States. Our business model is centered on the planned sourcing of high-quality supplements and wellness products from trusted manufacturers in Europe, with the goal of introducing them to the U.S. market through direct-to-consumer e-commerce and strategic wholesale partnerships. We intend for our primary distribution channels to include a company website, social media advertising, and potential relationships with boutique retailers, spas, salons, wellness clinics, and online beauty platforms.

RESULTS OF OPERATIONS

Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation.

We expect we will require additional capital to meet our long-term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.

As of September 30, 2026, our total assets were $44,581 compared to $39,730 in total assets at March 31, 2026. As of September 30, 2026 and March 31, 2026, our total liabilities were $6,200.

Stockholders' equity was $38,381 as of September 30, 2026 compared to $33,530 as of March 31, 2026.

Three months ended September 30, 2026 compared to three months ended September 30, 2025

During the three-month ended September 30, 2026, the Company had $4,728 in revenue compared to $0 during the three-month ended September 30, 2025.

During three months ended September 30, 2026, we incurred expenses of $7,437 compared to $2,500 during three months ended September 30, 2025. Our net loss for the three months ended September 30, 2026 was $2,709 compared to $2,500 during three months ended September 30, 2025.

Six months ended September 30, 2026 compared to six months ended September 30, 2025

During the six-month ended September 30, 2026, the Company had $21,888 in revenue compared to $0 during the six-month ended September 30, 2025.

During six months ended September 30, 2026, we incurred expenses of $23,337 compared to $9,121 during six months ended September 30, 2025. Our net loss for the six months ended September 30, 2026 was $1,449 compared to $9,121 during six months ended September 30, 2025.

Cash Flows used by Operating Activities

For the six-month period ended September 30, 2026, net cash flows used in operating activities were $1,955 comprised of net loss of $1,449, amortization expense of $494 and increase in prepaid expenses of $117. For the six-month period ended September 30, 2025, net cash flows provided by operating activities were $629 comprised of net loss of $9,121 and increase in deferred revenue of $9,750.

Cash Flows from Financing Activities

For the six-month period ended September 30, 2026, net cash flows from financing activities were $6,300, consisting of proceeds from the issuance of common stock. For the six-month period ended September 30, 2025, net cash flows from financing activities were $11,800, consisting of $6,200 received from a related party loan, $600 in proceeds from the issuance of common stock, and $5,000 in subscription receivable.

PLAN OF OPERATION AND FUNDING

We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.

While existing working capital is currently unavailable, further advances, debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next twelve months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) acquisition of inventory; (ii) developmental expenses associated with a start-up business; and (iii) marketing expenses. We intend to finance these expenses with further issuances of securities, and debt issuances. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations.

OFF-BALANCE SHEET ARRANGEMENTS

As of the date of this Quarterly Report, we do not have any 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 that are material to investors.

GOING CONCERN

The independent registered public accounting firm auditors' report accompanying our March 31, 2026 financial statements contained an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. Management has a disclosure in the financial statements to this effect as well. The financial statements have been prepared "assuming that we will continue as a going concern," which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.