NOTE 11 – RISKS AND UNCERTAINTIES

General Economic and Political Risks

The Company conducts a significant portion of its operations in Canada, which subjects it to various political, economic, and regulatory risks. These risks include, but are not limited to, general economic instability, changes in local tax laws, tariffs, trade policies, and fluctuations in foreign currency exchange rates. A material adverse change in the economic, regulatory, or political environment in Canada could negatively impact the Company's financial condition and results of operations.

Furthermore, our operations are subject to broader global macroeconomic and geopolitical risks. Recent escalations in geopolitical tensions and armed conflicts in the Middle East, including those involving Iran, Israel, and the United States, have contributed to increased global economic instability. These conflicts have the potential to disrupt global supply chains and cause significant volatility in global energy markets and oil prices. Such disruptions and energy price increases could exacerbate inflationary pressures, influence central bank interest rate policies, and negatively impact the broader global economy. If these macroeconomic headwinds persist or worsen, they could result in increased operating costs and adversely affect our business, financial condition, and results of operations.

Foreign Currency Risk

The Company is exposed to foreign currency exchange rate risk inherent in its foreign operations. The functional currency of the Company’s foreign subsidiaries is their respective local currency. Assets and liabilities are translated into U.S. dollars at period-end exchange rates, while revenues and expenses are translated at average exchange rates during the period. The resulting translation adjustments are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity. Transaction gains and losses resulting from transactions denominated in currencies other than the functional currency are recognized in the consolidated statements of operations and have not been material to date.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents with high-credit-quality financial institutions. At times, such balances may exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on its cash and cash equivalents.

With respect to accounts receivable, the Company performs ongoing credit evaluations of its customers' financial condition and generally does not require collateral.

For the year ended December 31, 2025, two customers accounted for 14% and 12.1% of the Company's total revenue. As of December 31, 2025, four customers accounted for 15.25%, 12.77%, 10.22% and 10.22% of total accounts receivable, respectively.

Concentration of Suppliers

The Company relies on a limited number of third-party technology platforms, ad exchanges, and infrastructure providers to deliver its online advertising services. A significant disruption in services from the providers, or an inability to maintain these relationships on favorable terms, could have a material adverse effect on the Company’s financial condition and results of operations.

For the year ended December 31, 2025, costs associated with two third-party providers accounted for approximately 28.9% and 27.4% of total cost of revenue.

Liquidity Risk

The Company manages liquidity risk by maintaining adequate cash reserves and continuously monitoring actual and forecasted cash flows to ensure it has sufficient funds to meet its operational and capital obligations as they become due.