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

The following discussion and analysis should be read in conjunction with our unaudited financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and our audited financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2026. This discussion contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those projected in forward-looking statements.

GENERAL INFORMATION

Mercalot Inc. was incorporated on April 24, 2024 under the laws of the state of Wyoming. We are a company that provides an e-commerce and classifieds platform, which is also known as online marketplace. We have purchased a mobile application known as "SafeDeal Connect", which is already working, but we also intend to add more features to make the app better and offer wide range of services.

Currently, we have no employees, only our officers and directors, Mr. Blas Mayor Reyes and Ms. Isabel Marin Vargas. Our executive and business office is located at C/ de l'Illa Formentera, 54, Quatre Carreres, 46026 Valencia, Spain, and our telephone number is +13072630861.

Our business is an online platform that combines the ability to place offers and orders for services, creating a convenient environment for interaction between buyers and service providers. "SafeDeal" aims to ensure the reliability and security of the entire process: from searching to dealings. The application strives to become a reliable partner that will support the user at every step. Our mission is to develop a convenient and secure platform. Starting in the Spanish market, we have significant plans for expansion into the broader European market.

Marketplace platforms hold immense relevance and importance in today's interconnected and digital world. These platforms, where buyers and sellers converge to exchange goods, services, and ideas, play a pivotal role in shaping the modern economy. Here is why they are so significant:

Global Connectivity: marketplace platforms break down geographical barriers, connecting individuals and businesses on a global scale, meaning that sellers can reach a vast audience, and buyers can access a diverse range of products and services from around the world.

Economic Empowerment: these platforms empower individuals and small businesses by providing a level playing field, allowing entrepreneurs to easily set up virtual storefronts, reaching potential customers without the need for a physical presence; this democratization of commerce contributes to economic empowerment.

Efficiency and Convenience: marketplace platforms streamline the buying and selling process, making it efficient and convenient by allowing users to browse, compare, and make a deal with just a few clicks, eliminating the traditional hassles associated with commerce.

Diverse Product and Service Offerings: our marketplace platform offers a comprehensive range of services and products, organized into the following categories:

By offering a diverse selection of goods and services, our platform aims to serve a wide range of consumer preferences, from individual creators and small businesses to consumers looking for unique products and professional services. This diversity enhances our marketplace's inclusiveness and caters to both digital and physical product needs.

Innovation Hub: these platforms often serve as hubs for innovation, where entrepreneurs can test new ideas, products, or services without significant upfront costs, fostering a culture of creativity and continuous improvement.

Data-Driven Insights: the data generated by marketplace platforms provide valuable insights into consumer behavior, market trends, and preferences, allowing businesses to make informed decisions and tailor their offerings to meet customer demands.

"SafeDeal" app is new and convenient online marketplace, where every seller can find their buyer and every customer can find what they need. The platform provides an opportunity for both sellers and buyers to place ads for goods and services they want to sell or buy. By combining accessibility, efficiency, and trust, the application transforms the way people in Spain engage in buying and selling, shaping a more connected and empowered society. We provide our customers with a user-friendly application that caters to both seasoned service providers and sellers and newcomers alike. The interface is designed with simplicity in mind, ensuring a smooth and intuitive experience for users of all backgrounds. Whether you're looking to sell pre-loved items, discover unique treasures, or engage in professional service providing, "SafeDeal" has you covered. Here are services that we can offer in our application:

There are also several features that we intend to successfully implement in the future:

For a better understanding of how the "SafeDeal" app works, let's consider two scenarios of using the app:

We plan to constantly expand the functionality of our services to make our application more attractive for our consumers. We have purchased the mobile application from LABRIS LIMITED for iOS and Android platforms and the website for total consideration of US $47,000.

The Company's revenues are expected to be derived mostly from advertising, but there are also several revenue opportunities that we intend to use in the future, such as premium account subscriptions, paid packages for the contractors, affiliate programs, analytics and data, additional paid services, such as transaction security consultations, insurance, and other services that improve the user experience.

RESULTS OF OPERATIONS

We have incurred recurring losses to date. 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.

For the three months ended September 30, 2026 we generated $8,260 of revenue. We have incurred $17,111 of operating expenses for the three months ended September 30, 2026. For the three months ended September 30, 2025 we generated $5,560 of revenue. We have incurred $35,752 of operating expenses for the three months ended September 30, 2025. Increase in revenue amount in 2026 compared to 2025 period is due to attracting new clients and receiving additional revenue from selling a banner advertising. Decrease in operating expenses amount for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 is due to decrease in professional fees.

We have not attained profitable operations and are dependent upon obtaining financing to pursue our business plan and our business operations. So, for these reasons, there is substantial doubt that we will be able to continue as a going concern.

LIQUIDITY AND CAPITAL RESOURCES

Our cash balance is $25,502 as of September 30, 2026. We believe our cash balance is not sufficient to fund our operations for any period of time. We have been utilizing and may utilize funds from Isabel Marin Vargas and Blas Mayor Reyes, our directors, who verbally agreed and entered into a Loan Agreement on April 26, 2024, that they may be willing to provide funds required to maintain the reporting status and to implement our business plan in a form of a non-secured loan until minimum required proceeds are obtained by the Company. Management believes that if the Company cannot maintain its reporting status with the SEC and implements even a part of the Company's business plan, they will have to cease all efforts directed towards the company. As such, your investment previously made may be lost in its entirety.

We have entered into the Mobile Application and Website Purchase Agreement with LABRIS LIMITED, Office 4, 219 Kensington High Street, Kensington, London County, W8 6BD England (the "Developer") for the amount of $47,000.

Currently, we have a working mobile application for Android and IOS platforms, known as "SafeDeal Connect". The address in Play Market is https://play.google.com/store/apps/details?id=sdc.connect and in App Store - https://apps.apple.com/us/app/safe-deal-connect/id6477819843. We also have a website (safedealconnect.com/) for informational purposes only. It provides users with information about the "SafeDeal" app, our company and contacts. In addition, we plan to refine it, expand its functionality and implement a lot of new useful features and systems.

As of September 30, 2026, our total assets were $51,334. Total assets were comprised of $25,502 in current assets and $25,832 in intangible assets.

As of September 30, 2026, our total liabilities were $102,901 and Stockholders' deficit was $51,567.

As of June 30, 2026, our total assets were $58,245. Total assets were comprised of $30,061 in current assets and $28,184 in intangible assets.

As of June 30, 2026, our current liabilities were $100,961 and Stockholders' deficit was $42,716.

CASH FLOWS FROM OPERATING ACTIVITIES

For the three months ended September 30, 2026 net cash used in operating activities was negative $4,559 due to its net loss $8,851 and increase in amortization of $2,352; increase in accounts payable-related party of $3,000 and decrease in deferred revenue of $1,060.

For the three months ended September 30, 2025 net cash flows used in operating activities was negative $23,400 due to its net loss $30,192 and increase in amortization of $2,352; increase in accounts payable-related party of $3,000 and increase in deferred revenue of $1,440.

CASH FLOWS FROM INVESTING ACTIVITIES

For the three months ended September 30, 2026 we have generated no cash from investing activities.

For the three months ended September 30, 2025 we have generated no cash from investing activities.

CASH FLOWS FROM FINANCING ACTIVITIES

For the three months ended September 30, 2026 net cash flows provided by financing activities was $0.

For the three months ended September 30, 2025 net cash flows provided by financing activities was $0.

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.