Quarterly Report for Quarter Ending March 31, 2026 (Form 10-Q)

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

The following management's discussion and analysis ("MD&A") should be read in conjunction with financial statements of Eline Entertainment Group, Inc. for the three months ended March 31, 2026 and 2025, and the notes thereto.

Safe Harbor for Forward-Looking Statements

Certain statements included in this MD&A constitute forward-looking statements, including those identified by the expressions anticipate, believe, plan, estimate, expect, intend, and similar expressions to the extent they relate to Eline Entertainment Group, Inc. or its management. These forward-looking statements are not facts, promises, or guarantees; rather, they reflect current expectations regarding future results or events. These forward-looking statements are subject to risks and uncertainties that could cause actual results, activities, performance, or events to differ materially from current expectations. These include risks related to revenue growth, operating results, industry, products, and litigation, as well as the matters discussed in Eline Entertainment Group, Inc's MD&A. Readers should not place undue reliance on any such forward-looking statements. Eline Entertainment Group, Inc disclaims any obligation to publicly update or to revise any such statements to reflect any change in the Company's expectations or in events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.

Eline Entertainment Group, Inc, Inc. is a blank check company and has no operations. Our business plan includes acquisitions of operating companies. In summary, EEGI is focused on raising capital for its business plan. As of this filing, we have not raised any capital and our business is not yet operational.

Results of Operations

The financial statements appearing elsewhere in this report have been prepared assuming the Company will continue as a going concern. The Company was recently formed and has not established sufficient operations or revenues to sustain the Company. These conditions raise substantial doubt about the Company's ability to continue as a going concern.

The following table sets forth key components of our results of operations for the three months ended March 31, 2026 and 2025.

		Three Months Ended
		March 31,
		2026				2025				$ Changed				% Changed
Revenues, net		$	-			$	-				-				-
Cost of sales			-				-				-				-
Gross Margin			-				-				-				-
Gross Margin %			-				-				-				-
Operating expenses:
Selling, general and administrative			6,116				8,542				(2,426	)			(28.4)%
Total operating expenses			6,116				8,542				(2,426	)			(28.4)%
Total other (expenses) income			-				-				-				-
Income tax expenses (benefits)			-				-				-				-
Net income (loss)		$	(6,116	)		$	(8,542	)			(2,426	)			(28.4)%

To date, the Company has relied on debt and equity raised in private offerings and shareholder loans to finance operations and no other sources of capital has been identified. If we experience a shortfall in operating capital, we could be faced with having to limit our research and development activities.

Three Months Ended March 31, 2026 and 2025

Revenue

For the three months ended March 31, 2026 and 2025, the Company had not generated any revenues.

Operating Expenses

Operating expenses for the three months ended March 31, 2026 were $6,116 compared to $8,542 for the three months ended March 31, 2025 which primarily consist of professional fees.

For the three months ended March 31, 2026, professional fees were $6,000, a increase of $NIL as compared to $6,000 for the three months ended of March 31, 2025.

Other Income and Expenses

For the three months ended March 31, 2026 and 2025, the Company did not have any other income or expenses.

Net Income (Loss)

For the three months ended March 31, 2026, the Company had a net loss of $6,116 compared to the three months period ended March 31, 2025 of a net loss of $8,542.

The net loss resulted from increase of operating expenses.

Liquidity and Capital Resources

As of March 31, 2026, we had no cash and a working capital deficit of $140,417 compared to a working capital deficit of $97,851 as of March 31, 2025.

Operating Activities

For three months ended March 31, 2026, the Company had cash used in operating activities in the amount of $15,068 compared to $11,295 in the three months ended March 31, 2025. Net operating loss decreased to $6,116 as compared to net loss of $8,542 for the three months ended March 31, 2025. Accounts payable and accrued expenses for the three months ended March 31, 2026 was $10,402, decreased by $6,199, as compared to $19,354 for the three months ended March 31, 2025. The decrease in accounts payable and accrued expenses is related to payments made to outstanding professional fees.

Investing Activities

No investing activities occurred during the three months ended March 31, 2026 and 2025.

Financing Activities

During the three months ended March 31, 2026, the Company received advances from a related party for working capital purposes in the amount of $15,068 as compared to $11,295 for the same period in 2025.

Off-Balance Sheet Arrangements

There are no off-balance sheet arrangements with any party.

Critical Accounting Policies

Our discussion and analysis of results of operations and financial condition are based upon our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these condensed consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We evaluate our estimates on an ongoing basis, including those related to provisions for uncollectible accounts receivable, inventories, valuation of intangible assets and contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

The accounting policies that we follow are set forth in Note 2 to our financial statements as included in the SEC report filed. These accounting policies conform to accounting principles generally accepted in the United States and have been consistently applied in the preparation of the financial statements.