Annual Report for Fiscal Year Ending August 31, 2025 (Form 10-K)

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

We are a development stage corporation with limited operations and minimal revenues from our business operations.

The following discussion of our financial condition and results of operations should be read in conjunction with (i) our audited financial statements as of August 31, 2025, that appear elsewhere in this filing. This filing contains certain forward-looking statements and our future operating results could differ materially from those discussed herein. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward- looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. We disclaim any obligation to update any such factors or to announce publicly the results of any revisions of the forward -looking statements contained herein to reflect future events or developments.

In General

E-Smart Corp. ("Company") was incorporated on June 06, 2023 under the laws of Nevada. We are a Nevada-incorporated Company focused on creating a platform that facilitates interaction between tattoo artists and enthusiasts. Our product serves as a combined professional profile and artistic showcase for tattoo artists, enabling them to present their expertise and history in an aesthetically pleasing format. This platform simplifies the process for employers to identify and locate skilled artists within their vicinity. Moreover, our service offers users the capability to generate preliminary tattoo sketches through an AI-driven tattoo design tool.

E-Smart is a dynamic and forward-thinking digital platform that connects tattoo artists and clients seamlessly. By leveraging advanced technologies, offering comprehensive services, and prioritizing user convenience, we provide an unparalleled experience for all stakeholders in the tattoo industry.

Plan of Operations

Fiscal year ended August 31, 2025 compared to fiscal year ended August 31, 2024

During the years ended August 31, 2025 and 2024 we have generated $29,247 and $11,562 in revenues, respectively.

Our net loss for the fiscal year ended August 31, 2025 was $68,034 compared to a net loss of $41,236 during the fiscal year ended August 31, 2024.

Operating expenses incurred were $87,388 during fiscal year ended August 31, 2025 compared to $45,925 during fiscal year ended August 31, 2024. Operating expenses consist primarily of accumulated depreciation, server rental expenses, and professional services expenses.

The number of shares outstanding was 5,799,469 and 4,500,000 for the fiscal years ended August 31, 2025 and 2024, respectively.

Liquidity and Capital Resources

Fiscal year ended August 31, 2025 and 2024

As of August 31, 2025, our total assets were $141,281 consisting of $6,825current assets, $20,274 other current assets and $114,182 intangible assets. As of August 31, 2024, our total assets were $149,488 consisting of $546 cash and $148,942 intangible assets.

Cash Flows from Operating Activities

For the year ended August 31, 2025, net cash flows used in operating activities was $43,452. For the year ended August 31, 2024, net cash flows used in operating activities was $10,973.

Cash Flows from Investing Activities

There was no net cash flow from investing activities for the year ended August 31, 2025. For the year ended August 31, 2024, net cash flows generated from investing activities was $157,300.

Cash Flows from Financing Activities

For the year ended August 31, 2025, net cash flows provided by financing activities was $49,731 from director loan and capital stock. For the year ended August 31, 2024, net cash flows provided by financing activities was $168,594 from director loan.

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 Policies

The discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with the accounting principles generally accepted in the United States of America. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and expenses. These estimates and assumptions are affected by management's application of accounting policies. We believe that understanding the basis and nature of the estimates and assumptions involved with the following aspects of our financial statements is critical to an understanding of our financial statements.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain expenses during the reporting period. Actual results could differ from these estimates and judgments.

Recent Accounting Pronouncements

The Company considers all new pronouncements and management has determined that there have been no recently adopted or issued accounting standards that had or will have a material impact on its financial statements