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

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

The following discussion should be read in conjunction with our unaudited financial statements and the related notes appearing elsewhere in this quarterly report and with our audited financial statements for the fiscal year ended May 31, 2026 included in our Annual Report on Form 10-K.

Overview

ELVENTIX TECHNOLOGY CORPORATION (the "Company") was incorporated in the State of Wyoming on March 4, 2025 and is an early-stage technology company focused on the development and commercialization of "Smarterest," a mobile news aggregation and content-curation application, and on subscription-based access to an API that provides personalized and filtered news sources. The Company owns the Smarterest application, including the underlying source code and all associated intellectual property rights, acquired on May 15, 2025 under an Application Sale Agreement with Smarterest Incorporated. During the three months ended August 31, 2026, the Company completed an upgrade and enhancement of its existing API service pursuant to an API Upgrade Agreement entered into on June 1, 2026. The upgrade work was completed on July 17, 2026, following which the enhanced API was deployed for use. The underlying API had originally been developed and completed on March 25, 2026. The Company's current principal address is Avinguda de Blondel, 21, 25002 Lleida, Spain. As of the date of this report, the Company has no full-time employees and relies on technology consultants and third-party development firms.

Results of Operations for the three months ended August 31, 2026 compared to the three months ended August 31, 2025

Revenues. For the three months ended August 31, 2026, the Company generated revenues of $32,196 from API subscriptions, compared to no revenues for the three months ended August 31, 2025. Revenues consisted of pro subscriptions of $18,410, custom subscriptions of $13,187 and basic subscriptions of $599. During the quarter the Company received $42,916 from customers, and deferred revenue increased from $18,090 as of May 31, 2026 to $28,810 as of August 31, 2026.

Operating expenses. Total operating expenses for the three months ended August 31, 2026 were $44,024, compared to $19,229 for the three months ended August 31, 2025, an increase of $24,795. The increase was primarily attributable to server rental expense of $8,400 and research and development expense of $5,040 related to the operation and development of the API, both of which were not incurred in the comparative period, an increase in professional fees of $5,947 and an increase in amortization expense of $5,382 resulting from software refactoring costs, website development costs and API development costs placed in service after August 31, 2025. Professional fees of $14,473 consisted primarily of audit and review fees, technical support consulting, transfer agent and legal fees.

Net loss. As a result of the foregoing, the Company recorded a net loss of $11,828, or $(0.00) per share, for the three months ended August 31, 2026, compared to a net loss of $19,229, or $(0.00) per share, for the three months ended August 31, 2025.

Liquidity and Capital Resources

As of August 31, 2026, the Company had cash of $630 (May 31, 2026: $1,421), total current assets of $19,030 (May 31, 2026: $15,421), total assets of $278,583 (May 31, 2026: $255,343), total current liabilities of $192,157 (May 31, 2026: $181,289) and total liabilities of $355,741 (May 31, 2026: $320,673). The Company had a working capital deficit of $173,127 and a total stockholders' deficit of $(77,158) as of August 31, 2026, compared to a working capital deficit of $165,868 and a stockholders' deficit of $(65,330) as of May 31, 2026.

Our liabilities as of August 31, 2026 consisted of accounts payable of $347, deferred revenue of $28,810, a promissory note payable of $163,000 maturing on November 14, 2026, and a related party loan payable of $163,584 owed to our CEO and director. The available capital reserves of the Company are not sufficient for the Company to remain operational. The Company depends on continued financial support from its CEO and director under the Loan Agreement described in Note 8 to the financial statements, on revenues from API subscriptions and on its ability to raise additional capital.

Cash from operating activities. Net cash provided by operating activities for the three months ended August 31, 2026 was $10,649, compared to net cash used in operating activities of $8,602 for the three months ended August 31, 2025. The change reflects cash collected from API subscriptions in advance of the subscription periods (an increase in deferred revenue of $10,720), partially offset by the net loss adjusted for non-cash amortization and an increase in prepaid expenses of $4,400.

Cash used in investing activities. Net cash used in investing activities for the three months ended August 31, 2026 was $35,640, consisting of capitalized API development costs, compared to $15,300 of capitalized website development costs for the three months ended August 31, 2025.

Cash provided by financing activities. Net cash provided by financing activities for the three months ended August 31, 2026 was $24,200, consisting of advances under the Loan Agreement with our CEO and director, which were paid directly to vendors on behalf of the Company, compared to $21,805 of related party advances for the three months ended August 31, 2025.

Going Concern

The Company has an accumulated deficit of $120,583 as of August 31, 2026, and further losses are anticipated in the development of its business. These conditions, together with the working capital deficit and upcoming debt maturities, raise substantial doubt about the Company's ability to continue as a going concern. Management plans to finance operational expenses for the next twelve months by using available cash on hand and subscription revenues, as well as loans from its director and/or a private offering of common stock.

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.

Critical Accounting Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses. We believe the most significant estimates relate to the estimated useful lives of intangible assets, the assessment of the recoverability of long-lived assets and the determination of the amount of revenue to be deferred at each reporting date. There have been no material changes to our critical accounting estimates from those disclosed in our Annual Report on Form 10-K for the fiscal year ended May 31, 2026.