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

MANAGEMENT' DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

A CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This prospectus contains forward-looking statements which relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled "Risk Factors," that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

DESCRIPTION OF BUSINESS

GENERAL

Business Overview: AI-Native Creative Content Production & IP Monetization

Glidelogic Corp. is an artificial intelligence technology company focused on AI-powered creative content production and intellectual property monetization. We leverage our proprietary AI development capabilities to build specialized content generation engines that automate high-value creative tasks across three strategic verticals: AI-assisted literary creation, AI-powered visual content production (manga/comics), and AI-driven social media content generation. As of January 31, 2026, our business address is 8275 S. Eastern Ave. Suite 200-#406, Las Vegas, Nevada 89123. Our phone number is (310) 397-2300. We expect we may fail to achieve profitability which may result in ceasing operations due to lack of funding.

Our company operates alongside Propaganda GEM Inc. ("PGEM"), a Hollywood entertainment marketing firm established in 1991, under shared executive management. PGEM's global entertainment marketing network, brand partnership relationships, and IP monetization expertise serve as the commercial foundation for our AI-generated content distribution and monetization strategy. The Company's two full-time employees are Mr. Dapeng Ma, who also serves as CEO of PGEM, and Mr. Yitian Xue, the Company's CEO, who oversees technology development and public company compliance. This lean executive structure reflects the Company's design as an AI-native, capital-efficient development platform, with PGEM's operational team providing support as needed.

Our diversified product portfolio includes:

1.NovaGen AI (AI Literary Creation Engine)

NovaGen is our proprietary AI novel generation engine featuring a four-stage production pipeline: narrative structure generation, chapter expansion, consistency review, and stylistic refinement. The engine has produced its first commercially published AI-assisted novel, The Thirteenth Proposal (approximately 80,000 English words / 140,000 Chinese characters), currently available on Amazon Kindle. This validates the Company's end-to-end capability from concept to commercial publication.

2.AI Visual Content Production (Manga/Comics)

We are developing AI-powered tools for vertical-format manga and comic short drama ("漫剧") production, covering the workflow from script to storyboard, character design, scene rendering, voice synthesis, editing, and subtitling. This segment targets the rapidly growing short-form visual content market on platforms such as TikTok, YouTube Shorts, and Douyin.

3.AI Social Media & E-Commerce Content Engine

As an authorized TikTok Shop Partner (TSP), we deploy AI-generated content to drive gross merchandise value (GMV) for cross-border merchants. This division has historically achieved profitability by utilizing AI to optimize livestream scripts, virtual avatar creation, and short-video production. We intend to scale our AI content generation infrastructure to service a broader client base across social commerce platforms.

4.ResearchMind (AI Research Assistant)

An AI-powered research assistant for the academic community. Following its global launch on August 15, 2025, it achieved near-SOTA benchmark scores (8.8-9.0) in independent evaluations. Revenue is currently derived from early-access users through a SaaS subscription model.

Intellectual Property: The Company holds U.S. Patent No. 11,909,879 B2 for customized NFT technology that encodes copyright content with user information, directly supporting copyright verification and protection for AI-generated creative works.

Operational Model: To maximize capital efficiency, Glidelogic operates as a fully distributed, remote-first organization. The Company's lean structure is by design - it was established as a capital-efficient AI development platform, with all research and development efforts directed toward AI-driven creative content production in anticipation of future commercial integration with PGEM's entertainment marketing and IP monetization capabilities.

REVENUE

Strategic Realignment to AI-Native Creative Content Production

The Company has refined its revenue model to focus on AI-powered creative content production and IP monetization. We have discontinued non-core legacy initiatives related to proprietary cryptocurrency trading and general fintech consulting to mitigate regulatory risk and concentrate resources on our core AI creative technology stack. Our revenue structure is driven by proprietary AI content generation engines integrated with the commercial distribution capabilities of our affiliated entertainment marketing network.

The Company's plan for revenue generation consists of four synergistic streams:

1.AI Literary Creation Revenue (NovaGen)

Revenue Model: We generate revenue through multiple channels: direct sales of AI-assisted novels on platforms such as Amazon Kindle Direct Publishing (KDP), Webnovel, and Qidian (起点中文网); subscription and per-use fees for the NovaGen creation tools; and IP licensing for adaptation into other media formats (film, television, animation, merchandise).

Current Status: The Company has validated its end-to-end publishing capability with the commercial release of The Thirteenth Proposal. We intend to scale from single-title proof-of-concept to a repeatable production pipeline capable of generating multiple commercial-grade novels across genres.

IP Monetization: Through PGEM's established relationships with major entertainment studios and brand partners, high-performing literary IPs may be developed into film/TV adaptations, brand integrations, and multi-language global distribution - monetization channels that are typically inaccessible to standalone AI writing tool companies.

2.AI Visual Content & Manga/Comics Revenue

Revenue Model: Revenue is derived from CPS (Cost-Per-Sale) distribution of completed manga/comic short dramas on platforms such as Douyin, Kuaishou, TikTok, and YouTube Shorts; full IP lifecycle operations (novel → manga → animation → merchandise); and brand integration within visual content leveraging PGEM's brand partnership network.

Competitive Advantage: PGEM's thirty-year track record in brand integration (product placement, brand activation, celebrity partnerships) provides a direct revenue channel: brands pay for integration within AI-generated visual content, a revenue source unavailable to traditional short-video creators.

3.AI E-Commerce & Social Media Content Revenue (TikTok & Social Commerce)

Revenue Model: As an authorized TikTok Shop Partner (TSP), the Company earns service commissions and performance fees by deploying our AI Content Engines to automate livestream scripts, generate virtual avatars, and optimize ad placement for cross-border merchants.

Operational Efficiency: This segment has historically achieved profitability by leveraging AI to minimize human labor costs. We plan to scale this revenue stream by expanding our automated content generation infrastructure to service enterprise clients with bulk content needs.

4.Proprietary AI Toolset Revenue (ResearchMind & Internal Platform)

Revenue Model: Revenue Model: ResearchMind, our AI-powered research and analysis platform, was initially launched as a public SaaS product and achieved near-SOTA benchmark scores (8.8-9.0) in independent evaluations, validating its core AI capabilities. Following this public validation phase, the Company intends to transition ResearchMind into a proprietary internal tool available exclusively to cooperative members, enhancing the value proposition of membership and strengthening member retention. Revenue from this tool will be generated through membership fees within the cooperative structure rather than public subscription.

Future Revenue Outlook: Management anticipates revenue growth will be driven by scaling our validated AI creative content verticals and unlocking the IP monetization potential of our content library through PGEM's global entertainment network. While historical revenue has been constrained by limited working capital, the deployment of raised capital is expected to enable significant commercial scaling across both our content production (NovaGen, visual content) and service (E-Commerce) divisions. The transition of proven tools such as ResearchMind into member-exclusive offerings is expected to create a dual-layer revenue structure - platform-level membership fees combined with content-level monetization - providing greater revenue resilience.

MARKETING

Integrated AI-Native Creative Content Marketing Strategy

The Company's marketing strategy is unified under a single framework centered on AI-powered creative content production and IP monetization. Rather than marketing disparate consulting services, we focus on promoting our proprietary AI content generation engines and the resulting creative output across specific vertical applications: literary creation, visual content production, e-commerce content, and member-exclusive tools.

To date, our growth has been primarily organic ("Product-Led Growth"), constrained by limited working capital. We intend to utilize financing proceeds to transition from this validation phase to active commercial scaling. A primary use of proceeds will be to establish our first formal marketing budget, specifically to amplify creator recruitment for our cooperative platform and to scale the merchant base for our AI E-Commerce solutions.

Segment-Specific Marketing Strategies

1.AI Literary Creation (NovaGen)

Proof-of-Publication Marketing: The commercial availability of The Thirteenth Proposal on Amazon Kindle serves as our primary marketing asset - demonstrating that our AI engine can produce a full-length, market-ready novel. We leverage this published proof-of-concept to recruit creators who wish to use NovaGen's four-stage pipeline to produce their own works.

Creator Community Building: We target aspiring and mid-tier writers who lack the time or resources to complete long-form manuscripts. By offering a validated production pipeline that has already delivered a published result, we convert interest into active platform adoption.

2.AI Visual Content & Manga/Comics

IP-to-Visual Conversion Demonstration: We market the manga/comics production capability by showcasing the conversion of existing NovaGen-generated literary IPs into visual short dramas. This cross-format demonstration attracts both writers seeking visual adaptation and visual creators seeking AI-assisted production tools.

Brand Integration as Marketing Channel: Through PGEM's brand partnership network, completed visual content pieces that incorporate brand integrations serve a dual purpose - they generate revenue while simultaneously demonstrating the platform's commercial viability to prospective creators and brand partners. PGEM's thirty-year track record in entertainment marketing (collaborations with Marvel, Disney, Warner, Paramount, and others) provides credibility that standalone AI content platforms cannot replicate.

3.AI E-Commerce & Social Media Content (TikTok & Social Commerce)

Solution Selling to Merchants: Instead of marketing as a traditional agency, we market our AI Content Generation Infrastructure to cross-border merchants, highlighting our ability to automate livestream scripts and generate virtual avatars to lower their customer acquisition costs (CAC).

Performance Demonstration: We use case studies of our own profitable e-commerce operations - where AI content drove GMV - to attract enterprise clients looking for automated store management solutions on platforms like TikTok.

4.Cooperative Membership & Proprietary Tools (ResearchMind)

Exclusivity-Driven Recruitment: Following ResearchMind's public validation phase (near-SOTA benchmark scores of 8.8-9.0), the tool's transition to a member-exclusive offering creates a natural marketing hook: publicly demonstrated capability available only through cooperative membership. This "validated then privatized" approach - prove the tool's value in public, then make it exclusive - serves as a membership acquisition engine.

PGEM's Role in Marketing: Propaganda GEM's global entertainment marketing network (offices in Los Angeles, Geneva, and Tokyo) provides distribution and partnership channels that function as an organic marketing amplifier. When PGEM integrates AI-generated content into its brand client campaigns, each placement simultaneously demonstrates our technology's commercial value to a wider audience of potential creators, brand partners, and institutional investors - at no additional marketing cost to the Company.

COMPETITION

Strategic Positioning: Vertical Integration vs. Point Solutions

We operate at the intersection of the highly competitive artificial intelligence sector and the rapidly evolving creative content industry. Rather than competing directly with foundational model providers (such as OpenAI, Google, or Anthropic) in the capital-intensive race to train Large Language Models (LLMs), or with standalone AI writing tools (such as ChatGPT, NovelAI, or Jasper) that offer general-purpose text generation, we position ourselves as a vertically integrated AI creative content production and monetization platform.

Our core competitive differentiation is the combination of three elements that, to our knowledge, no single competitor currently replicates: (1) proprietary AI content generation engines purpose-built for commercial creative production, (2) an established entertainment marketing and IP monetization network with over thirty years of industry relationships, and (3) a public company framework providing access to capital markets. We believe this integrated structure creates a competitive advantage that is structural rather than merely technological.

Competitive Landscape by Segment

1.AI Literary Creation Sector (NovaGen)

Competitors: General-purpose AI writing assistants (ChatGPT, Claude), specialized AI novel tools (NovelAI, Sudowrite), and traditional self-publishing platforms (Amazon KDP).

Our Competitive Advantage: Unlike general-purpose AI tools that generate text without narrative architecture, NovaGen employs a four-stage production pipeline specifically designed for long-form commercial fiction. Our competitive edge extends beyond the tool itself: through PGEM's entertainment network, successful literary IPs can access film/TV adaptation, brand integration, and global distribution channels - a monetization pathway unavailable to users of standalone writing tools. Additionally, the cooperative structure provides a continuous feedback loop from hundreds of active creators, generating proprietary training data on narrative quality, reader engagement, and commercial performance that improves the engine over time.

2.AI Visual Content & Manga/Comics Sector

Competitors: AI image generation tools (Midjourney, DALL-E, Stable Diffusion), traditional animation studios, and MCN agencies.

Our Competitive Advantage: Standalone AI image tools generate individual images but lack end-to-end production pipeline capabilities for serialized visual content. We compete by offering a complete workflow from script to finished short drama, maintaining character and visual consistency across episodes - a critical requirement that general image generators cannot reliably achieve. PGEM's brand integration expertise provides a revenue channel (brand placement within visual content) that neither AI tool companies nor traditional MCN agencies can offer at comparable scale and quality.

3.AI E-Commerce & Social Media Content Sector

Competitors: Traditional MCN agencies (labor-intensive), generic marketing software, and emerging AI content generation startups.

Our Competitive Advantage: Unlike traditional agencies that rely on human talent management, we compete via automated content infrastructure. By using AI to generate livestream scripts, virtual avatars, and optimized ad placements, we achieve significantly higher operating margins and scalability than service-based competitors. Our status as an authorized TikTok Shop Partner (TSP) provides platform-level access that newer entrants must earn independently.

4.AI Research & Analysis Sector (ResearchMind)

Competitors: Traditional citation management software, general-purpose AI chatbots, and academic search engines.

Our Competitive Advantage: ResearchMind utilizes a proprietary RAG (Retrieval-Augmented Generation) architecture to minimize hallucinations, validated by independent evaluations showing near-SOTA benchmark scores (8.8-9.0). Following its public validation phase, the planned transition to a member-exclusive tool transforms ResearchMind from a competitive SaaS product into a membership acquisition and retention asset - reducing direct competitive exposure while increasing the value proposition of our cooperative platform.

Operational Competitive Advantage: Our most significant structural barrier against smaller competitors is our capital-efficient operating model. By utilizing a fully distributed, remote-first organization and leveraging our own AI tools for internal operations, we maintain a significantly lower burn rate than traditional software or content companies. This allows us to sustain operations and continue R&D innovation even during periods of capital constraint. Furthermore, the cooperative model itself creates a competitive moat: as membership grows, the collective creative data generated by hundreds of active creators continuously improves our AI engines - a self-reinforcing advantage that single-user tools cannot replicate.

EMPLOYEES; IDENTIFICATION OF CERTAIN SIGNIFICANT EMPLOYEES.

We are a start-up company and currently have two employees: our president, Mr. Dapeng Ma, and our CEO, Mr. Yitian Xue, both were appointed as a director of the Company on May 15, 2023. Mr. Ma and Mr. Xue will jointly oversee the day-to-day operations of the company.

We intend to hire employees on an as needed basis.

INSURANCE

We do not maintain any insurance and do not intend to maintain insurance in the future. Because we do not have any insurance, if we had a party of a legal action, we may not have sufficient funds to defend the litigation. If that occurs a judgment could be rendered against us that could cause us to cease operations.

OFFICES

As of April 30, 2026, the Company's principal executive office is located at 8275 S. Eastern Ave., Suite 200-#406, Las Vegas, Nevada 89123.

GOVERNMENT REGULATION

We will be required to comply with all regulations, rules and directives of governmental authorities and agencies applicable to our business in any jurisdiction which we would conduct activities. We do not believe that regulations will have a material impact on the way we conduct our business.

LEGAL PROCEEDINGS

There are no pending legal proceedings to which the Company is a party or in which any director, officer or affiliate of the Company, any owner of record or beneficially of more than 5% of any class of voting securities of the Company, or security holder is a party adverse to the Company or has a material interest adverse to the Company.

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

Certain statements contained in this prospectus, including statements regarding the anticipated development and expansion of our business, our intent, belief or current expectations, primarily with respect to the future operating performance of the Company and the products we expect to offer and other statements contained herein regarding matters that are not historical facts, are "forward-looking" statements. Future filings with the Securities and Exchange Commission, future press releases and future oral or written statements made by us or with our approval, which are not statements of historical fact, may contain forward-looking statements, because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.

RESULTS OF OPERATIONS

For the three months ended April 30, 2026, Glidelogic generated $0 in revenue, compared to $77 of revenue for the same period in 2025. The decrease was primarily due to limited revenue-generating activities during the current quarter as the Company continued to focus on developing and refining its AI-driven platforms and solutions.

For the three months ended April 30, 2026, we incurred operating expenses of $27,212, compared to $14,967 for the same period in 2025. The increase in operating expenses was primarily attributable to higher professional fees, mainly due to the timing and increase of annual audit fees, as well as education and training expenses related to AI development and increased R&D costs associated with developing various AI-powered applications and platforms.

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.

Currently efforts are focused on enhancing revenue generation based on the business plan detailed in this report. We expect we may require additional capital to meet our long-term operating requirements. We expect to raise additional capital through, among other things, the sale of equity.

LIQUIDITY AND CAPITAL RESOURCES

As of April 30, 2026, our total assets were $18,469. Total assets were comprised of $16,081 in current assets and $2,388 in fixed assets, compared to total assets of $5,196 as of January 31, 2026, which included $2,703 in current assets and $2,493 in fixed assets.

As of April 30, 2026, our current liabilities were $171,593 and our stockholders' equity was $(153,124), compared to current liabilities of $131,108 and stockholders' equity of $(125,912) as of January 31, 2026..

CASH FLOWS FROM OPERATING ACTIVITIES

For the three months ended April 30, 2026 net cash flows used in operating activities was $42,804.

For the three months ended April 30, 2025 net cash flows used in operating activities was $36,612.

The increase in cash used in operating activities was primarily attributable to increased professional fees and costs associated with product development.

CASH FLOWS FROM INVESTING ACTIVITIES

For the three months ended April 30, 2026 we have generated $0 in investing activities.

For the three months ended April 30, 2025 we have generated $0 in investing activities.

CASH FLOWS FROM FINANCING ACTIVITIES

For the three months ended April 30, 2026 net cash flows provided by financing activities was $42,880.

For the three months ended April 30, 2025 net cash flows provided by financing activities was $34,554.

The increase in cash provided by financing activities was primarily attributable to increased funding from related party loans used to support the Company's operations during the year.

The Company's cash flow change in Q1 remained relatively steady compared to prior quarters but it still heavily relied on the Company's controlling shareholders and related party loans. Pursuant to the provisions of the One Big Beautiful Bill Act, and the newly enacted IRC Section 174A, the Company is permitted to immediately expense domestic research and experimental (R&D) expenditures for tax years beginning after December 31, 2024. Starting in Q2, the Company has taken on this opportunity to increase its R&D activity on Ai application development, which increased the cash flows used by operating activities.

Between November 8, 2024 and December 4, 2024, a total of 28 individuals have received 200 bonus shares each, amounting to an aggregate of 5,600 shares. The total cost basis of these shares is $4,756, determined based on the fair market value of the stock on the respective grant dates. This transaction was recognized as an expense on the income statement but did not impact the Company's cash flow, as it was a non-cash equity issuance. No additional services shares were issued in FYE 2026 or current quarter. As a result, as of April 30, 2026, there were a total of 66,599,350 shares of common stock issued and outstanding.

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.