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

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

Overview and results of operations

MYX operates Legal Stage and earns revenue from subscription and analytics access. This discussion compares the three months ended August 31, 2026 with the same period in 2025. Financial amounts are presented consistently with the accompanying financial statements.

Revenue increased $15,010.50, or 222.3%, as the May 2026 Pro/Enterprise subscriptions and continuing analytics-access arrangement contributed a full quarter of recognized revenue. Revenue represents service delivery against existing contract balances. There were no customer cash collections during the quarter, so revenue growth did not produce an operating cash inflow.

Operating expenses increased $11,732.12, or 177.8%. The 2026 quarter includes $10,630 of platform maintenance, testing and data cleaning, $2,975 of consulting and onboarding, and $4,725.00 of depreciation and amortization. The comparative quarter included $3,109 of consulting/legal/accounting costs and $3,488.88 of depreciation and amortization. Income before taxes increased $3,278.38.

Platform maintenance and related services are expensed; the computer purchase is capitalized. The research advance is classified as noncurrent based on the confirmed future service period. Subsequent collections are disclosed separately without treating uncollected amounts as cash.

Liquidity and capital resources

Cash increased $62,895, from $34,500 to $97,395. Financing inflow of $78,000 exceeded $13,605 of operating payments and $1,500 of equipment purchases. The corrected comparative quarter shows $400 used in operating activities, no investing cash flow and $400 provided by financing activities, with no change in cash. See Note 1.

Current assets are $137,095. Current liabilities are $89,057.83 and working capital is $48,037.17. Current assets include $39,700 of gross receivables. The $30,000 research advance is classified as noncurrent. Cash is the most immediately available resource.

Funding requirements

Management estimates $3,000-$8,000 monthly operating spending, including professional and filing costs. Liquidity depends on spending, collection of the remaining $25,000 receivable and settlement of $44,537 of supplier and shareholder obligations. No additional investor financing was received through October 14, and no uncommitted future financing is assumed.

Management plans to seek additional investment and reduce or postpone discretionary spending if needed. No additional financing was committed as of October 14, 2026. The supplier payment schedule remains undecided and the shareholder loan is payable on demand. Substantial doubt exists for one year after issuance of these financial statements and is not alleviated by these plans.

MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)

Critical accounting estimates

Revenue recognition follows the existing contract schedules and confirmed continued access. Management confirms full recoverability of the Kenneth receivable, and no allowance is recorded as described in Note 3. Research advance classification and absence of quarter expense or impairment reflect the confirmed future-service rights and expected performance. Recoverability will be reassessed. The equipment estimate and monthly convention follow the existing asset schedules. Vendor service periods and maintenance expense classification have been resolved.

The May comparative includes the $1,428 offering-cost presentation adjustment, and the 2025 comparative cash flows have been restated, as described in Note 1. Neither adjustment changes cash; the cash-flow restatement does not change operating results.