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

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

FORWARD LOOKING STATEMENTS

Statements made in this Form 10-Q that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.

DESCRIPTION OF BUSINESS

Arterior Solutions Corp was incorporated in the State of Wyoming on June 23, 2025. We are an early-stage company focused on interior design, exterior design, and conceptual design-support services. Our fiscal year ends on April 30. To date, our activities have consisted primarily of organizational matters, preparing our business plan, launching our website at www.arterior-solutions.com, and completing two customer engagements.

RESULTS OF OPERATIONS

The following discussion summarizes our results of operations for the three and six months ended October 31, 2026. The Company was incorporated on June 23, 2025, and its activities during the corresponding prior-year period consisted solely of organizational matters.

As of October 31, 2026, our total assets were $31,844, compared to $8,900 as of April 30, 2026. The increase was primarily attributable to an increase in cash of $18,648, the website with a net book value of $2,796, and computer equipment with a net book value of $1,500. As of October 31, 2026, our total liabilities were $7,578, compared to $504 as of April 30, 2026, reflecting additional advances received from a related party.

Stockholders' equity was $24,266 as of October 31, 2026, compared to $8,396 as of April 30, 2026. The increase was attributable to proceeds of $16,673 from the issuance of 833,650 shares of common stock, partially offset by the net loss of $803 incurred during the six months ended October 31, 2026.

Three Month Period Ended October 31, 2026

Income

During the three-month period ended October 31, 2026, the Company generated revenue of $16,500 from a single customer engagement under the Architectural and Design Services Agreement dated August 3, 2026. Cost of services was $10,130, and gross profit was $6,370. The Company generated no revenue during the corresponding prior-year period.

Operating Expenses

During the three-month period ended October 31, 2026, we incurred total operating expenses of $3,410, consisting of legal and professional fees of $2,900, bank charges of $271, amortization expense related to our website of $153, depreciation expense related to our computer equipment of $79, and software subscriptions of $7. Legal and professional fees consisted of quarterly review fees of $2,150 and EDGAR filing fees of $750. The Company incurred no operating expenses during the corresponding prior-year period.

Our net income for the three-month period ended October 31, 2026 was $2,960, compared to $0 for the corresponding prior-year period.

Six Month Period Ended October 31, 2026

Income

During the six-month period ended October 31, 2026, the Company generated revenue of $21,640, consisting of $5,140 under the Architectural and Design Services Contract dated June 16, 2026 and $16,500 under the Architectural and Design Services Agreement dated August 3, 2026. Cost of services was $10,130, and gross profit was $11,510. The Company generated no revenue during the period from June 23, 2025 (inception) through October 31, 2025.

Operating Expenses

During the six-month period ended October 31, 2026, we incurred total operating expenses of $12,313, consisting of legal and professional fees of $11,612, bank charges of $361, amortization expense related to our website of $254, depreciation expense related to our computer equipment of $79, and software subscriptions of $7. Legal and professional fees consisted primarily of audit and review fees of $7,150, SEC registration and EDGAR filing fees of $2,275, a legal opinion fee of $1,500, tax preparation fees of $475, and registered agent fees of $212. Operating expenses for the period from June 23, 2025 (inception) through October 31, 2025 were $353, consisting of incorporation costs paid by our President on behalf of the Company.

Our net loss for the six-month period ended October 31, 2026 was $803, compared to $353 for the period from June 23, 2025 (inception) through October 31, 2025.

Cash Flows from Operating Activities

For the six-month period ended October 31, 2026, net cash used in operating activities was $470, consisting of our net loss of $803, partially offset by non-cash depreciation and amortization expense of $333.

Cash Flows from Investing Activities

For the six-month period ended October 31, 2026, net cash used in investing activities was $4,629, consisting of payments for website development of $3,050 and the purchase of computer equipment of $1,579.

Cash Flows from Financing Activities

For the six-month period ended October 31, 2026, net cash provided by financing activities was $23,747, consisting of proceeds from the issuance of common stock of $16,673 and advances received from a related party of $7,074.

Stockholders' Equity

During the three months ended October 31, 2026, we issued 833,650 shares of common stock at $0.02 per share for total proceeds of $16,673. As of October 31, 2026, we had 9,633,650 shares of common stock issued and outstanding and an accumulated deficit of $1,207.

PLAN OF OPERATION AND FUNDING

We expect that working capital requirements will continue to be funded through a combination of our existing funds, anticipated cash flow from operations, and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.

Existing working capital, related party advances, and anticipated cash flow are not expected to be adequate to fund our operations over the next twelve months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through advances from a related party and issuances of equity securities. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) developmental expenses associated with a start-up business; and (ii) marketing expenses. We intend to finance these expenses with anticipated cash flow from operations, further issuances of securities, and related party advances, if needed. Thereafter, we may need to raise additional capital and continue generating revenues to meet long-term operating requirements. Additional issuances of equity securities may result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations.

OFF-BALANCE SHEET ARRANGEMENTS

As of the date of this Quarterly Report, we do not have any 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 that are material to investors.

GOING CONCERN

The Company's financial statements have been prepared on a going concern basis.

As of October 31, 2026, the Company had an accumulated deficit of $1,207 and negative cash flows from operating activities of $470 for the six months ended October 31, 2026.

Management believes that existing cash resources, together with anticipated cash flows from operations, may not be sufficient to meet the Company's obligations and fund its planned operations for at least the next twelve months. Management plans to address these conditions by continuing the sale of common stock under the Company's registration statement, seeking additional customer engagements, and controlling operating costs; however, there can be no assurance that these plans will be successful.

Accordingly, these conditions raise substantial doubt about the Company's ability to continue as a going concern within one year after the date of this report. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.