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

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

The following discussion and analysis of our financial condition and results of operations should be read together with our unaudited condensed financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and our audited financial statements and related notes for the year ended June 30, 2026 included in our Annual Report on Form 10-K filed with the SEC on September 23, 2026. In addition to historical information, this discussion and analysis contains forward-looking statements that involve risks, uncertainties, and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors. We discuss factors that we believe could cause or contribute to these differences below and elsewhere in this Quarterly Report on Form 10-Q, including those factors set forth in the section entitled "Cautionary Statement Regarding Forward-Looking Statements" and in the section entitled "Risk Factors" in Part II, Item 1A.

Overview

The following discussion highlights our results of operations and the principal factors that have affected our financial condition as well as our liquidity and capital resources for the three months ended September 30, 2026 and provides information that management believes is relevant for an assessment and understanding of the statements of financial condition and results of operations presented herein. The following discussion and analysis are based on our unaudited condensed financial statements contained in this Quarterly Report on Form 10-Q, which we have prepared in accordance with United States generally accepted accounting principles, or GAAP, and the requirements of the SEC. You should read the discussion and analysis together with such financial statements and the related notes thereto.

We are not currently profitable, and we cannot provide any assurance that we will ever be profitable. We incurred a net loss of $774,395 for the three months ended September 30, 2026, and we incurred a net loss of $45.3 million for the period from November 14, 2017 (date of incorporation) to September 30, 2026. Our condensed financial statements have been prepared assuming we will continue as a going concern, and substantial doubt exists about our ability to do so. See "Going Concern" below and Note 2.

Critical Accounting Policies and Significant Judgments and Estimates

There have been no material changes to the critical accounting policies and significant judgments and estimates described in our Annual Report on Form 10-K for the year ended June 30, 2026. During the three months ended September 30, 2026, we capitalized $56,800 of internal-use software costs and recognized $72,861 of amortization; no impairment was recognized.

Results of Operations

Revenue

Revenue was $70,223 compared to $94,296 during the three months ended September 30, 2026 and 2025, respectively, a decrease of $24,073 (25.5%). The decrease was primarily due to B2C revenue, which was $7,612 compared to $24,052, a decrease of $16,440 (68.4%), resulting from a reduction in subscription pricing effective February 2026. B2B revenue was $62,611 for the three months ended September 30, 2026 compared to $70,244, a decrease of $7,633 (10.9%).

General and Administrative

Expenses were $590,671 compared to $547,060 during the three months ended September 30, 2026 and 2025, respectively, an increase of $43,611 (8.0%), primarily due to professional fees. Stock-based compensation was $87,582 compared to $72,252.

Technology and Content Development

Expenses were $188,134 compared to $102,888 during the three months ended September 30, 2026 and 2025, respectively, an increase of $85,246 (82.9%). The increase was primarily due to higher fees paid to third-party artificial intelligence (AI) model providers and related hosting costs. Amortization of capitalized software was $72,861 compared to $54,103. Capitalized software additions, which consist of internal engineering payroll, were $56,800 compared to $87,600 during the three months ended September 30, 2026 and 2025, respectively.

Sales and Marketing

Expenses were $81,794 compared to $106,472 during the three months ended September 30, 2026 and 2025, respectively, a decrease of $24,678 (23.2%), primarily due to lower personnel costs following the departure of our Vice President of Sales in May 2026. Advertising expense was $27,991 compared to $46,466 during the three months ended September 30, 2026 and 2025, respectively.

Interest Income

Interest income was $15,981 compared to $19,858 during the three months ended September 30, 2026 and 2025, respectively, due to lower interest rates.

Interest Expense and Impairment Expense

We incurred no interest expense or impairment expense in either period.

Net Loss

The net loss was $774,395, or $0.12 per share, compared to $642,266, or $0.14 per share, during the three months ended September 30, 2026 and 2025, respectively.

Capital Expenditures

Capital asset additions were $56,800 compared to $87,600 during the three months ended September 30, 2026 and 2025, respectively, all of which were capitalized software development costs. There were no significant additions to property and equipment.

Financial Position, Liquidity, and Capital Resources

Overview

At September 30, 2026, cash and cash equivalents were $1,704,573 and restricted cash was $100,000, compared to $2,298,809 and $100,000 at June 30, 2026. Restricted cash is pledged as collateral for our credit card facility.

Operating cash use increased $121,671 (29.3%) for the three months ended September 30, 2026 compared to the respective prior year quarter, reflecting the $132,129 higher net loss. Investing activities consisted entirely of capitalized software development costs. We had no financing activity in the quarter.

Sources of Liquidity

ATM. On July 17, 2026, we entered into an At The Market Offering Agreement with H.C. Wainwright & Co., LLC under our effective Form S-3 (File No. 333-282999), with a 3.0% commission. We made no sales during the quarter or subsequently. Capacity is limited by the baby-shelf rule (one-third of public float in any twelve-month period) and by market conditions.

Warrants

The Series A-1 and A-2 warrants have been exercisable since July 13, 2026, each for 1,811,850 shares at $1.435 per share. Full cash exercise of both would provide about $5.2 million. No warrants were exercised in the quarter or subsequently. Exercise is at the holders' discretion and depends on our stock price.

Material Cash Requirements

We have no debt and no lease obligations; we operate remotely. Our cash requirements are primarily payroll, professional fees, capitalized software development, and public company costs. Based on our current forecast, we do not expect our cash and cash equivalents to be sufficient to fund our planned operations for the next twelve months. See "Going Concern" below.

Nasdaq Compliance

On October 28, 2025, Nasdaq notified us that we did not comply with Listing Rule 5550(b)(1), which requires stockholders' equity of at least $2,500,000, and that we did not meet either alternative standard (market value of listed securities of $35 million or net income from continuing operations of $500,000). Following our April 28, 2026 offerings, Nasdaq notified us on May 4, 2026 that we had regained compliance, and advised that failure to evidence compliance in our next periodic report may subject us to a delisting determination, which we may appeal to a Nasdaq Hearings Panel.

At September 30, 2026, our stockholders' equity was $1,966,906, below the minimum, and we continue not to meet either alternative standard. As of the date of this report, we have not received a notice from Nasdaq regarding this deficiency. There can be no assurance that we will regain compliance or that our common stock will remain listed on Nasdaq.

Going Concern

The accompanying condensed financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

The Company is developing its customer base and has not completed its efforts to establish a stabilized source of revenue sufficient to cover its expenses. The Company has had a history of net losses and negative cash flows from operating activities since inception and expects to continue to incur net losses and use cash in its operations in the foreseeable future.

The assessment of the Company's ability to meet its future obligations is inherently judgmental, subjective and susceptible to change. Based on their current forecast, management believes that it may not have sufficient cash and cash equivalents to maintain the Company's planned operations for the next twelve months following the issuance of these condensed financial statements.

The Company has considered both quantitative and qualitative factors that are known or reasonably known as of the date of these condensed financial statements are issued and concluded that there are conditions present in the aggregate that raise substantial doubt about the Company's ability to continue as a going concern. In response to the conditions, management plans include generating cash by completing financing transactions, which may include offerings of common stock. However, these plans are subject to market conditions, and are not within the Company's control, and therefore, cannot be deemed probable. There is no assurance that the Company will be successful in implementing their plans. As a result, the Company has concluded that management's plans do not alleviate substantial doubt about the Company's ability to continue as a going concern. In addition, stockholders' equity of $1,966,906 at September 30, 2026 is below Nasdaq's $2,500,000 continued listing requirement, and a delisting could impair the Company's ability to raise capital. The condensed financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty.