2. Basis of Preparation of Financial Statements

2.1 Basis of Presentation

We have prepared financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

2.2 Intangible Assets

Intangible assets are subject to amortization and are amortized using the straight-line method over their estimated period of benefit. The recoverability of intangible assets is evaluated periodically by taking into account events or circumstances that may warrant revised estimates of useful lives or that indicate the asset may be impaired.

2.3 Cash and Cash Equivalent

For purposes of the statements of cash flows, the Company considers cash in hand and cash at bank along with all highly liquid investments available for current use with an initial maturity of three months or less to be cash equivalents.

2.4 Capital Stock

The Company has 75,000,000 common shares authorized with a par value of $0.001 per share. 6,947,400 shares of common stock were issued and outstanding as at June 30, 2026 and 4,927,600 at June 30, 2025.

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2.5 Revenue Recognition

Revenue is recognized when promised goods or services are transferred to the customer, in an amount that reflects the total consideration we expect to receive in exchange. We apply the FASB's five-step model for revenue recognition:

We provide access to a library of books enhanced with bionic reading technology and generate revenue primarily through an API service that allows developers and businesses to integrate bionic reading technology into their own platforms. We offer this service through two subscription-based tariff plans, described on our website at https://readvantage.tech, each providing a different level of access and functionality.

Subscription revenue is recognized over time, generally on a straight-line basis, as the customer receives access to the API throughout the subscription period. Amounts collected but not yet earned as of the end of a reporting period are recorded as deferred revenue and recognized in subsequent periods as the related performance obligations are satisfied. We recognized subscription revenue of $47,763 for the year ended June 30, 2026, representing revenue from our API bionic reading technology subscriptions.

2.6 Earnings Per Share

The Company presents basic and diluted earnings per share ("EPS") data for its common stock. The basic EPS is calculated by dividing (a) by (b):

a. The income attributable to common shareholders.

b. The weighted-average number of common shares outstanding

Diluted EPS is determined by adjusting the profit or loss attributable to common stockholders and the weighted average number of common stock outstanding, adjusted for the effects of all dilutive potential common stock. There are no dilutive instruments at reporting date.

2.7 Deferred Revenue

Deferred revenue represents billing in excess of revenue earned on contracts and is recognized on a pro-rata basis over the life of the contract.

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2.8 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 as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. A change in management's estimates or assumptions could have a material impact on Readvantage Corp.'s financial condition and results of operations during the period in which such changes occur. Actual results could differ from those estimates. Readvantage Corp.'s financial statements reflect all adjustments that management believes are necessary for the fair presentation of its financial condition and results of operations for the periods presented.

2.9 Fair value measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various methods, including market, income and cost approaches. Based on these approaches, the Company often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated, or generally unobservable. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.

The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value are classified and disclosed within one of the following three levels:

- Level 1 observable inputs - unadjusted quoted prices in active markets for identical assets and liabilities;

- Level 2 observable inputs - other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with market data;

- Level 3 Unobservable inputs - includes amounts derived from valuation models where one or more significant inputs are unobservable.

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2.10 Net Income (Loss) per Common Share

The Company computes income (loss) per share in accordance with ASC 260-10-45, Earnings per Share, which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic income (loss) per share is computed by dividing net income (loss) available to Common Stockholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive income (loss) per share excludes all potential common shares if their effect is anti-dilutive. The Company has no potential dilutive instruments, and therefore, basic and diluted income (loss) per share are equal.