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

Management's Discussion and Analysis

The following discussion should be read with the unaudited condensed financial statements and the audited March 31, 2026 statements in our Form S-1. References to we, us and our mean Spin AI Inc.

Overview and recent developments

We provide an academic-intelligence SaaS platform to institutional customers. Commercial operations began June 7, 2026. All five customer agreements were active during July-September. Our registration statement became effective August 6 and we raised $94,250 through September 18. The offering has since been confirmed closed. We moved our principal banking activity to Bluevine in July.

Quarterly revenue was $22,749 and six-month revenue was $25,356. The quarter includes a full quarter of subscription services and the $364 cumulative Wilbe correction described in Note 2. Revenue for April-June was $2,607. September billings were $7,513 and collections were $7,453, leaving $60 receivable. No comparable 2025 period exists.

Cost of revenue for the quarter and six months was $2,374, comprising $1,147 of hosting/infrastructure and $1,227 of model-inference API costs. Quarterly operating expenses were $3,177, comprising $2,856 amortization and $320 software subscriptions. Six-month operating expenses of $8,533 also include $2,500 audit fees and $2,856 additional April-June amortization.

Quarterly and six-month imputed interest were $568 and $1,102, including the $3 correction described in Note 2. Both are noncash. Income before income taxes was $16,630 for the quarter and $13,346 for the six months.

The Company plans to engage independent software developers and technical contractors to add features and expand platform functionality during October 2026 through March 2027, with the aim of attracting new customers and supporting revenue growth. A substantial portion of revenue is planned to be reinvested in this development. Routine maintenance and support address the continued operation of the existing platform. The scope and pace of development will depend on business priorities and available resources.

Liquidity and capital resources

Cash increased from $365 at March 31 to $121,732 at September 30. Operating cash provided $27,117, comprising $29,812 of customer collections less $2,695 of cash operating costs. There were no cash investing activities. Financing cash consisted of $94,250 of registered stock proceeds. The previously founder-funded $2,250 of offering costs reduced paid-in capital without a current cash outflow.

Current assets were $121,792 and current liabilities were $9,266, yielding working capital of $112,526. Current liabilities comprise $4,516 deferred revenue and the $4,750 demand facility. The related-party note has face value $61,300 and matures March 18, 2028. There is no additional committed financing.

We plan to use cash for operating and developing the platform, hosting, model inference, working capital and public-company obligations. Planned operations-contractor spending is $7,600 per month, subject to engagement and available resources. We intend to manage discretionary spending and maintain customer collections. Customer concentration, usage costs and future spending may affect liquidity; additional financing is not assured.

Critical estimates and known uncertainties

Significant estimates include revenue allocation, receivable collectibility, IP useful life and recoverability, related-party interest, contingencies and going concern. Changes in assumptions may materially affect reported results. There are no recorded off-balance-sheet financing arrangements.

Forward-looking statements

Statements about development, costs, customers, liquidity, financing and quotation plans are forward-looking and involve uncertainties. Actual results may differ materially because of customer losses, platform performance, expenses, financing availability and other risks described in our SEC filings. Plans and forecasts are not historical transactions or commitments.