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10-KT false true 2025-12-31 333-274532 NEXSCIENT, INC. DE 92-2915192 2029 Century Park East Suite 400 Los Angeles CA 90067 310 494-6620 No No Yes Yes Non-accelerated Filer true true false false 4113000 34564312 Our information systems consist of commercially available, third-party hosted productivity, accounting and communications applications used by our corporate office, and the production, data storage and communications infrastructure operated by Flipside AI in the Philippines to deliver annotation and data services to its customers. Because Flipside AI handles customer-owned data, including sensor and imagery data, under contractual confidentiality and data-handling obligations, the security of that infrastructure is important to our business. We do not currently maintain a formal, enterprise-wide, documented cybersecurity risk management program, and we have not adopted written policies and procedures at the parent-company level for assessing, identifying and managing material risks from cybersecurity threats. At Flipside AI, access to customer data is controlled through role-based permissions, secured facilities and network controls, and customer-specified handling requirements, and the operations team monitors for and responds to security events as they arise. We have not engaged third-party assessors, consultants or auditors in connection with any cybersecurity risk assessment, and we do not have a formal program to oversee and identify risks from cybersecurity threats associated with our use of third-party service providers. As of the date of this Transition Report, we are not aware of any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected or are reasonably likely to materially affect the Company, including our business strategy, results of operations or financial condition. However, our limited resources and the absence of a formal program mean that a cybersecurity incident affecting us, Flipside AI or our service providers could go undetected for a period of time and could have a disproportionate effect on our operations, customer relationships, financial reporting and reputation. Our Board of Directors as a whole has oversight responsibility for risks from cybersecurity threats; we do not have a separate audit committee or a director designated with specific cybersecurity expertise. Management responsibility for assessing and managing material risks from cybersecurity threats rests with our Chief Executive Officer and, with respect to the operations of Flipside AI, our Chief Technology Officer, who report to the Board on such matters as circumstances warrant rather than on a fixed schedule. We intend to formalize our cybersecurity risk management processes and Board reporting as our operations and resources expand. 3501 dbbmckennon Newport Beach, California

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NOTE 1 — ORGANIZATION, DESCRIPTION OF BUSINESS AND CHANGE IN FISCAL YEAR Nexscient, Inc. (the “Company”) was incorporated in the State of Delaware on March 14, 2023. The Company is an emerging growth company building a global collaborative network of AI-enabled intelligent enterprise solutions and technologies through internal development, synergistic acquisitions, and capital investments in companies involved in machine learning, artificial intelligence, and Industrial Internet of Things technologies. The Company’s headquarters are in Los Angeles, California. Through December 31, 2025, the Company had not commenced planned principal operations and had generated no revenue since inception. On April 1, 2026, the Company acquired TaskAlpha Pte. Ltd. and its wholly owned Philippine subsidiary, Flipside Digital Content Company, Inc., as described in Note 10. The accompanying financial statements are those of Nexscient, Inc. alone and do not reflect the acquired business, which is consolidated from April 1, 2026. Change in fiscal year On June 25, 2026, the Company’s Board of Directors approved a change in the Company’s fiscal year end from June 30 to December 31. The change was reported on a Current Report on Form 8-K filed under Item 5.03. In accordance with Rule 13a-10 under the Securities Exchange Act of 1934, as amended, the Company is filing this transition report on Form 10-KT covering the six-month transition period from July 1, 2025 to December 31, 2025 (the “Transition Period”). Following the Transition Period, the Company’s fiscal year begins on January 1 and ends on December 31. A change in fiscal year end is not a change in accounting principle or a change in accounting estimate as those terms are used in Accounting Standards Codification (“ASC”) Topic 250, Accounting Changes and Error Corrections. Accordingly, no retrospective adjustment has been made to previously reported amounts as a result of the change, and the change had no effect on the Company’s financial position, results of operations or cash flows for any period presented. These financial statements present the audited balance sheets as of December 31, 2025, June 30, 2025 and June 30, 2024, and the audited statements of operations, stockholders’ equity (deficit) and cash flows for the six-month Transition Period ended December 31, 2025 and for the years ended June 30, 2025 and 2024. The statements of operations, stockholders’ equity (deficit) and cash flows for the six months ended December 31, 2024 are unaudited and are presented for comparative purposes only. In the opinion of management, the unaudited comparative information reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for that period. The Transition Period comprises six months, while each of the fiscal years ended June 30, 2025 and 2024 comprises twelve months, and accordingly the amounts presented are not directly comparable. Revision of unaudited comparative period In the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2025, $265,000 of financing proceeds received during the six months ended December 31, 2024 was captioned as proceeds from shares issued for cash, and interest that accrued on the Company’s 9% convertible debentures for that period was included within general and administrative expenses. Certain prior period reclassifications have been made to conform to the current period presentation. In these financial statements the $265,000 has been presented as proceeds from convertible debentures issued for cash, consistent with the audited statement of cash flows for the year ended June 30, 2025, and interest of $6,341 that accrued on the debentures during the six months ended December 31, 2024 has been reclassified from general and administrative expenses to interest expense for that period. These reclassifications have no effect on net loss for any period, on net cash flows, or on the balances as of June 30, 2025 or December 31, 2025.

In the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2025, $265,000 of financing proceeds received during the six months ended December 31, 2024 was captioned as proceeds from shares issued for cash, and interest that accrued on the Company’s 9% convertible debentures for that period was included within general and administrative expenses. Certain prior period reclassifications have been made to conform to the current period presentation. In these financial statements the $265,000 has been presented as proceeds from convertible debentures issued for cash, consistent with the audited statement of cash flows for the year ended June 30, 2025, and interest of $6,341 that accrued on the debentures during the six months ended December 31, 2024 has been reclassified from general and administrative expenses to interest expense for that period

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“US GAAP”). Effective for the Transition Period, the Company’s fiscal year end is December 31. Risks and uncertainties The Company has a limited operating history and has not generated revenue from its intended operations. The Company’s business and operations are sensitive to general business and economic conditions in the United States and worldwide, along with local, state, and federal governmental policy decisions. A host of factors beyond the Company’s control could cause fluctuations in these conditions, including increased inflation and interest rates; the effects of increased competition and innovation by new and existing competitors; the Company’s ability to attract new clients and generate revenue; its ability to attract and retain highly skilled professionals at cost-effective rates; its ability to penetrate new industry verticals and geographies; and its ability to identify acquisition targets, consummate acquisitions and successfully integrate acquired businesses and personnel. Adverse developments in these conditions could have a material adverse effect on the Company’s financial condition and results of operations. Use of estimates In preparing financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the financial statements, as well as the reported amounts of expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those estimates. Significant estimates include the fair value of common stock issued in non-cash transactions and the incremental borrowing rate used to measure lease liabilities. Revenue recognition The Company recognizes revenue under ASC 606, Revenue from Contracts with Customers. Revenue is recognized when control of the promised services is transferred to the customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The Company applies the five-step model: identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligations, and recognition of revenue as the performance obligations are satisfied. The Company did not generate revenue from its intended operations during the Transition Period or during the years ended June 30, 2025 and 2024, and accordingly no revenue was recognized in the periods presented. Following the acquisition of Flipside AI on April 1, 2026, substantially all revenue is generated by Flipside AI from data engineering and content services. Services are provided under arrangements that represent a single performance obligation satisfied over time as the services are rendered, and revenue is recognized as the work is performed. Payment terms are generally 30 to 60 days from invoice and contracts do not contain significant financing components, variable consideration or rights of return. See Note 10. Concentrations of credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash. As of December 31, 2025, June 30, 2025 and June 30, 2024, substantially all of the Company’s cash was held by major financial institutions located in the United States, which at times may exceed federally insured limits. Cash The Company considers all highly liquid investments with original or remaining maturities of three months or less on the purchase date to be cash equivalents. As of December 31, 2025, June 30, 2025 and June 30, 2024, the Company did not have any cash equivalents. Fair value of financial instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three levels of the fair value hierarchy: <table cellpadding="0" style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%"><tbody><tr style="height:15px"><td style="width:4%;"> </td><td style="width:4%;vertical-align:top;">·</td><td style="vertical-align:top;">Level 1 — inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.</td></tr><tr style="height:15px"><td> </td><td> </td><td> </td></tr><tr style="height:15px"><td> </td><td style="vertical-align:top;">·</td><td style="vertical-align:top;">Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.</td></tr><tr style="height:15px"><td> </td><td> </td><td> </td></tr><tr style="height:15px"><td> </td><td style="vertical-align:top;">·</td><td style="vertical-align:top;">Level 3 — inputs to the valuation methodology are unobservable and significant to the fair value measurement.</td></tr></tbody></table> For cash and accounts payable, it is management’s opinion that the carrying values are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization. Software Software is stated at cost less accumulated amortization and is amortized using the straight-line method over the estimated useful life of the asset. The estimated useful life of the Company’s software asset is three years; however, amortization will not commence until the software has been placed in service. As of December 31, 2025 and June 30, 2025, the software had not been placed in service and no amortization had been recorded. See Note 4. Impairment of long-lived assets The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. There were no impairments recorded during the Transition Period or the years ended June 30, 2025 and 2024. See Note 10 regarding the impairment of the Company’s software recognized in the quarter ended June 30, 2026. Leases The Company determines if an arrangement is a lease at inception. Operating right-of-use assets and lease liabilities are included on the balance sheet. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate, based on information available at the commencement date, in determining the present value of future lease payments. Operating lease expense is recognized on a straight-line basis over the term of the lease. Convertible instruments The Company evaluates convertible debt instruments under ASC 470-20, Debt with Conversion and Other Options, to determine whether the instrument includes embedded features that must be separately accounted for as a derivative. The Company assesses whether an embedded conversion feature requires bifurcation under ASC 815-15, Embedded Derivatives, and ASC 815-40, Contracts in Entity’s Own Equity. Based on its evaluation, the Company concluded that the conversion features embedded in its convertible debentures do not require bifurcation. Research and development Research and development costs include costs to develop and refine technological processes used to carry out business operations, and are expensed as incurred. The Company enters into agreements with third-party developers for development services. During the preliminary project stage and prior to the application development stage of a product, the Company records any costs incurred by third-party developers as research and development expense. Research and development costs were $21,000 for the six months ended December 31, 2025, $79,864 for the six months ended December 31, 2024 (unaudited), $97,364 for the year ended June 30, 2025, and $205,286 for the year ended June 30, 2024. Deferred offering costs The Company complies with the requirements of ASC 340-10-S99-1 with regard to offering costs. Prior to the completion of an offering, offering costs are capitalized. Deferred offering costs are charged to additional paid-in capital or recorded as a discount to debt, as applicable, upon completion of an offering, or expensed if the offering is not completed. Stock-based compensation The Company accounts for stock-based compensation in accordance with ASC 718, Compensation — Stock Compensation. The Company measures all stock-based awards granted to employees, directors and non-employee consultants based on the fair value on the date of grant and recognizes compensation expense for those awards over the requisite service period, which is generally the vesting or service period of the respective award. Shares issued in advance of services being rendered are recorded as prepaid expense and amortized to expense over the service period. The Company classifies stock-based compensation expense in its statement of operations in the same manner in which the award recipient’s costs are classified. The Company has elected to account for forfeitures as they occur. Income taxes The Company uses the asset and liability method of accounting for income taxes pursuant to ASC 740, Income Taxes. Deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Valuation allowances are provided for deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize their benefits or that future deductibility is uncertain. Net loss per share Basic net loss per share is computed by dividing the net loss available to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed similarly except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and were dilutive. Potentially dilutive securities are excluded from the computation of diluted net loss per share if their inclusion would be anti-dilutive. The following potentially dilutive securities were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive: <table cellpadding="0" style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%"><tbody><tr style="height:15px"><td> </td><td style="white-space: nowrap;"> </td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;">December 31, 2025</td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> </td><td style="white-space: nowrap;"> </td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;">December 31, 2024 (Unaudited)</td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> </td><td style="white-space: nowrap;"> </td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;">June 30, 2025</td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> </td><td style="white-space: nowrap;"> </td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;">June 30, 2024</td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Shares issuable upon conversion of convertible debentures</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">1,060,000</td><td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">530,000</td><td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">960,000</td><td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">-</td><td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Total</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">1,060,000</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">530,000</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">960,000</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">-</td><td style="width:1%;white-space: nowrap;"> </td></tr></tbody></table> Shares issuable upon conversion are computed using the $0.50 per share floor conversion price applicable to the debentures. Segments In accordance with ASC 280, Segment Reporting, the Company’s chief operating decision maker (“CODM”) has been identified as the Chief Executive Officer. The CODM reviews results to assess performance, make decisions, and allocate operating and capital resources of the Company as a whole; therefore, there is only one reportable segment. The CODM does not distinguish the Company’s principal business activities for the purpose of internal reporting and uses net loss to allocate resources in the budgeting and forecasting process, along with using that measure as a basis for evaluating financial performance. Significant segment expenses provided to the CODM on a regular basis and included within the reported measure of segment loss are research and development and general and administrative expenses. Other segment items consist of interest expense. The measure of segment assets reported to the CODM is total assets. The statements of operations for each period presented reflect the significant segment expenses and other segment items, and the balance sheets presented reflect the assets and liabilities, of the one reportable segment. Recently issued accounting pronouncements The Company adopted ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, for the fiscal year ended June 30, 2025; adoption affected disclosure only. ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, is effective for the Company, as an emerging growth company that has elected the extended transition period, for the annual period ending December 31, 2026 and is expected to affect disclosure only. ASU 2024-03, Income Statement — Reporting Comprehensive Income (Subtopic 220-40): Disaggregation of Income Statement Expenses, is effective for the Company for annual periods beginning after December 15, 2027. Management does not believe that any other recently issued but not yet effective accounting standards would have a material effect on the accompanying financial statements.

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“US GAAP”). Effective for the Transition Period, the Company’s fiscal year end is December 31. The Company has a limited operating history and has not generated revenue from its intended operations. The Company’s business and operations are sensitive to general business and economic conditions in the United States and worldwide, along with local, state, and federal governmental policy decisions. A host of factors beyond the Company’s control could cause fluctuations in these conditions, including increased inflation and interest rates; the effects of increased competition and innovation by new and existing competitors; the Company’s ability to attract new clients and generate revenue; its ability to attract and retain highly skilled professionals at cost-effective rates; its ability to penetrate new industry verticals and geographies; and its ability to identify acquisition targets, consummate acquisitions and successfully integrate acquired businesses and personnel. Adverse developments in these conditions could have a material adverse effect on the Company’s financial condition and results of operations.

In preparing financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the financial statements, as well as the reported amounts of expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those estimates. Significant estimates include the fair value of common stock issued in non-cash transactions and the incremental borrowing rate used to measure lease liabilities.

The Company recognizes revenue under ASC 606, Revenue from Contracts with Customers. Revenue is recognized when control of the promised services is transferred to the customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The Company applies the five-step model: identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligations, and recognition of revenue as the performance obligations are satisfied. The Company did not generate revenue from its intended operations during the Transition Period or during the years ended June 30, 2025 and 2024, and accordingly no revenue was recognized in the periods presented. Following the acquisition of Flipside AI on April 1, 2026, substantially all revenue is generated by Flipside AI from data engineering and content services. Services are provided under arrangements that represent a single performance obligation satisfied over time as the services are rendered, and revenue is recognized as the work is performed. Payment terms are generally 30 to 60 days from invoice and contracts do not contain significant financing components, variable consideration or rights of return. See Note 10.

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash. As of December 31, 2025, June 30, 2025 and June 30, 2024, substantially all of the Company’s cash was held by major financial institutions located in the United States, which at times may exceed federally insured limits.

The Company considers all highly liquid investments with original or remaining maturities of three months or less on the purchase date to be cash equivalents. As of December 31, 2025, June 30, 2025 and June 30, 2024, the Company did not have any cash equivalents.

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three levels of the fair value hierarchy: <table cellpadding="0" style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%"><tbody><tr style="height:15px"><td style="width:4%;"> </td><td style="width:4%;vertical-align:top;">·</td><td style="vertical-align:top;">Level 1 — inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.</td></tr><tr style="height:15px"><td> </td><td> </td><td> </td></tr><tr style="height:15px"><td> </td><td style="vertical-align:top;">·</td><td style="vertical-align:top;">Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.</td></tr><tr style="height:15px"><td> </td><td> </td><td> </td></tr><tr style="height:15px"><td> </td><td style="vertical-align:top;">·</td><td style="vertical-align:top;">Level 3 — inputs to the valuation methodology are unobservable and significant to the fair value measurement.</td></tr></tbody></table> For cash and accounts payable, it is management’s opinion that the carrying values are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization.

Software is stated at cost less accumulated amortization and is amortized using the straight-line method over the estimated useful life of the asset. The estimated useful life of the Company’s software asset is three years; however, amortization will not commence until the software has been placed in service. As of December 31, 2025 and June 30, 2025, the software had not been placed in service and no amortization had been recorded. See Note 4.

The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. There were no impairments recorded during the Transition Period or the years ended June 30, 2025 and 2024. See Note 10 regarding the impairment of the Company’s software recognized in the quarter ended June 30, 2026.

The Company determines if an arrangement is a lease at inception. Operating right-of-use assets and lease liabilities are included on the balance sheet. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate, based on information available at the commencement date, in determining the present value of future lease payments. Operating lease expense is recognized on a straight-line basis over the term of the lease.

The Company evaluates convertible debt instruments under ASC 470-20, Debt with Conversion and Other Options, to determine whether the instrument includes embedded features that must be separately accounted for as a derivative. The Company assesses whether an embedded conversion feature requires bifurcation under ASC 815-15, Embedded Derivatives, and ASC 815-40, Contracts in Entity’s Own Equity. Based on its evaluation, the Company concluded that the conversion features embedded in its convertible debentures do not require bifurcation.

Research and development costs include costs to develop and refine technological processes used to carry out business operations, and are expensed as incurred. The Company enters into agreements with third-party developers for development services. During the preliminary project stage and prior to the application development stage of a product, the Company records any costs incurred by third-party developers as research and development expense. Research and development costs were $21,000 for the six months ended December 31, 2025, $79,864 for the six months ended December 31, 2024 (unaudited), $97,364 for the year ended June 30, 2025, and $205,286 for the year ended June 30, 2024.

21000

79864

97364

205286

The Company complies with the requirements of ASC 340-10-S99-1 with regard to offering costs. Prior to the completion of an offering, offering costs are capitalized. Deferred offering costs are charged to additional paid-in capital or recorded as a discount to debt, as applicable, upon completion of an offering, or expensed if the offering is not completed.

The Company accounts for stock-based compensation in accordance with ASC 718, Compensation — Stock Compensation. The Company measures all stock-based awards granted to employees, directors and non-employee consultants based on the fair value on the date of grant and recognizes compensation expense for those awards over the requisite service period, which is generally the vesting or service period of the respective award. Shares issued in advance of services being rendered are recorded as prepaid expense and amortized to expense over the service period. The Company classifies stock-based compensation expense in its statement of operations in the same manner in which the award recipient’s costs are classified. The Company has elected to account for forfeitures as they occur.

The Company uses the asset and liability method of accounting for income taxes pursuant to ASC 740, Income Taxes. Deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Valuation allowances are provided for deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize their benefits or that future deductibility is uncertain.

Basic net loss per share is computed by dividing the net loss available to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed similarly except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and were dilutive. Potentially dilutive securities are excluded from the computation of diluted net loss per share if their inclusion would be anti-dilutive. The following potentially dilutive securities were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive: <table cellpadding="0" style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%"><tbody><tr style="height:15px"><td> </td><td style="white-space: nowrap;"> </td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;">December 31, 2025</td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> </td><td style="white-space: nowrap;"> </td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;">December 31, 2024 (Unaudited)</td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> </td><td style="white-space: nowrap;"> </td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;">June 30, 2025</td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> </td><td style="white-space: nowrap;"> </td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;">June 30, 2024</td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Shares issuable upon conversion of convertible debentures</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">1,060,000</td><td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">530,000</td><td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">960,000</td><td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">-</td><td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Total</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">1,060,000</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">530,000</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">960,000</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">-</td><td style="width:1%;white-space: nowrap;"> </td></tr></tbody></table> Shares issuable upon conversion are computed using the $0.50 per share floor conversion price applicable to the debentures.

1060000

530000

960000

1060000

530000

960000

0.50

In accordance with ASC 280, Segment Reporting, the Company’s chief operating decision maker (“CODM”) has been identified as the Chief Executive Officer. The CODM reviews results to assess performance, make decisions, and allocate operating and capital resources of the Company as a whole; therefore, there is only one reportable segment. The CODM does not distinguish the Company’s principal business activities for the purpose of internal reporting and uses net loss to allocate resources in the budgeting and forecasting process, along with using that measure as a basis for evaluating financial performance. Significant segment expenses provided to the CODM on a regular basis and included within the reported measure of segment loss are research and development and general and administrative expenses. Other segment items consist of interest expense. The measure of segment assets reported to the CODM is total assets. The statements of operations for each period presented reflect the significant segment expenses and other segment items, and the balance sheets presented reflect the assets and liabilities, of the one reportable segment.

The Company adopted ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, for the fiscal year ended June 30, 2025; adoption affected disclosure only. ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, is effective for the Company, as an emerging growth company that has elected the extended transition period, for the annual period ending December 31, 2026 and is expected to affect disclosure only. ASU 2024-03, Income Statement — Reporting Comprehensive Income (Subtopic 220-40): Disaggregation of Income Statement Expenses, is effective for the Company for annual periods beginning after December 15, 2027. Management does not believe that any other recently issued but not yet effective accounting standards would have a material effect on the accompanying financial statements.

NOTE 3 — GOING CONCERN The financial statements have been prepared on a going concern basis, which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company had generated no revenue through December 31, 2025 and has incurred losses since inception, resulting in an accumulated deficit of $1,877,530 as of December 31, 2025. As of that date the Company had cash of $28,459 and a working capital deficit of $370,416. The acquisition of Flipside AI on April 1, 2026 (Note 10) introduced revenue-generating operations, and the subsidiary was profitable for the quarter ended June 30, 2026; however, at June 30, 2026 the Company had current liabilities in excess of current assets, including $530,000 of convertible debentures maturing within twelve months of that date, the short-term borrowings of Flipside AI and a $200,000 loan from the seller of the acquired business that has been extended to October 6, 2026. These conditions raise substantial doubt about the Company’s ability to continue as a going concern for a period of one year from the date these financial statements are issued. Management’s plans include applying cash generated by the operations of Flipside AI to the servicing and repayment of these obligations, pursuing the renewal or refinancing of the subsidiary’s borrowings as they mature, and raising additional capital through the sale of equity securities or the issuance of convertible debt. The Company has historically funded its operations through private placements of common stock and the issuance of convertible debentures. After considering these plans, management concluded that substantial doubt about the Company’s ability to continue as a going concern has not been alleviated. There can be no assurance that management’s plans will be successful. The financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts or to the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

-1877530

28459

-370416

530000

200000

NOTE 4 — SOFTWARE In February 2025, the Company entered into a Software Purchase Agreement with i2 Analytics, Inc. and acquired software for total consideration of $135,000, consisting of $47,500 in cash and 350,000 shares of common stock valued at $87,500. The Company concurrently entered into a Software Support Agreement with i2 Analytics, Inc. As of December 31, 2025 and June 30, 2025, the software had a carrying value of $135,000. The software had not been placed in service as of December 31, 2025, and accordingly no amortization expense has been recognized in any period presented. As of December 31, 2025, the Company continued to pursue commercialization of the software and concluded that its carrying amount was recoverable. As described in Note 10, following the acquisition of Flipside AI the Company determined during the quarter ended June 30, 2026 that it would no longer pursue commercialization of the software and recorded an impairment charge of $135,000 in that quarter.

135000

47500

350000

87500

135000

NOTE 5 — CONVERTIBLE DEBENTURES On July 1, 2024, the Board of Directors authorized a private placement offering to accredited investors of unsecured 9% convertible debentures with a twenty-four month maturity in the aggregate principal amount of up to $5,000,000 (the “Debentures”). The Debentures are convertible into shares of the Company’s common stock at the lower of $0.75 per share or 20% below the average volume weighted average price per share of common stock for the ten trading days prior to the date of conversion, subject to a minimum conversion price of $0.50 per share. The Debentures bear interest at 9% per annum, compounded on the basis of a 365-day year and actual days elapsed, due at maturity, have a maturity date of two years from the date of issuance, are convertible at the option of the holder, and are subject to certain lock-up and leak-out provisions. The Company issued $480,000 aggregate principal amount of Debentures during the year ended June 30, 2025 and an additional $50,000 during the Transition Period. As of December 31, 2025 and June 30, 2025, $530,000 and $480,000 aggregate principal amount of Debentures were outstanding, respectively. As of December 31, 2025, $265,000 of principal, representing Debentures issued during the six months ended December 31, 2024 and maturing during the second half of 2026, was classified as a current liability, and $265,000 of principal maturing during the first half of 2027 was classified as long-term. Interest expense on the Debentures was $24,070 for the six months ended December 31, 2025, $6,341 for the six months ended December 31, 2024 (unaudited), $21,392 for the year ended June 30, 2025, and $0 for the year ended June 30, 2024. Accrued and unpaid interest on the Debentures was $45,462 and $21,392 as of December 31, 2025 and June 30, 2025, respectively, of which $30,000 and $0, respectively, was classified as a current liability. The Company evaluated the Debentures under ASC 470-20 and ASC 815 and determined that the embedded conversion feature does not require bifurcation and that no beneficial conversion feature was required to be recognized.

0.09

5000000

The Debentures are convertible into shares of the Company’s common stock at the lower of $0.75 per share or 20% below the average volume weighted average price per share of common stock for the ten trading days prior to the date of conversion, subject to a minimum conversion price of $0.50 per share. The Debentures bear interest at 9% per annum, compounded on the basis of a 365-day year and actual days elapsed, due at maturity, have a maturity date of two years from the date of issuance, are convertible at the option of the holder, and are subject to certain lock-up and leak-out provisions

480000

50000 530000 480000

265000

24070

6341

21392

45462

21392

30000

NOTE 6 — STOCKHOLDERS’ EQUITY (DEFICIT) The Company’s authorized capital consists of 85,000,000 shares, comprised of (i) 75,000,000 shares of common stock, par value $0.001 per share, and (ii) 10,000,000 shares of blank check preferred stock, par value $0.001 per share. No shares of preferred stock were issued or outstanding as of December 31, 2025, June 30, 2025 or June 30, 2024. Transition period In November 2025, the Company issued 300,000 shares of common stock, valued at $75,000, to Tekcapital, PLC for consulting services under a Strategic Alliance Agreement; the value of the shares was recorded as prepaid expense and is being amortized over the one-year service period. The valuation of shares was based on shares of common stock sold for cash as described below, as the Company’s stock is thinly traded and not considered an active market. Also during the quarter ended December 31, 2025, the Company issued 40,000 shares of common stock and received cash proceeds of $10,000 from an investor in a private placement offering. As of December 31, 2025, 21,663,312 shares of common stock were issued and outstanding. Shares issued after December 31, 2025 are described in Note 10. Year ended June 30, 2025 During the period from January through April 2025, as compensation to members of its Advisory Board, the Company issued a total of 32,000 shares of common stock having an aggregate value of $8,000. During the period from March through June 2025, the Company issued a total of 270,000 shares of common stock to consultants as compensation in lieu of cash for services having an aggregate value of $67,500. Services for these shares were to be rendered over a one-year period. In February 2025, the Company issued 350,000 shares of common stock as partial consideration for the purchase of software, valued at $87,500, and issued 250,000 shares to its Chief Executive Officer pursuant to the terms of a promissory note related to a zero-interest loan made to the Company (see Note 8). Year ended June 30, 2024 The Company issued 1,736,000 shares of common stock for services valued at $327,000 and 2,157,312 shares of common stock for cash proceeds of $519,297, which included the collection of $154,500 of subscriptions receivable outstanding at June 30, 2023.

85000000

75000000

0.001

10000000

0.001

300000

75000

40000

10000

21663312

32000

8000

270000

67500

350000

87500

250000

1736000

327000

2157312

519297

154500

NOTE 7 — COMMITMENTS AND CONTINGENCIES Lease commitments In May 2024, the Company entered into a lease agreement for office space that commenced on May 1, 2024 and expired on October 31, 2025, with monthly rent of $1,609 throughout the lease term. The Company recognized a right-of-use asset and lease liability of $27,482 at commencement using a discount rate of 7.5%. In November 2025, the Company entered into a new lease agreement for office space. The lease commenced on November 1, 2025 and expires on October 31, 2027, with monthly rent of $1,815 throughout the lease term. The Company recognized a right-of-use asset and lease liability of $40,586 at commencement using a discount rate of 7.5%. The lease does not contain renewal options that the Company is reasonably certain to exercise, residual value guarantees, or material restrictive covenants. The following is a summary of future minimum lease payments as of December 31, 2025, presented on the Company’s new calendar fiscal year basis: <table cellpadding="0" style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%"><tbody><tr style="height:15px"><td style="BORDER-BOTTOM: 1px solid;vertical-align:bottom;">Year Ending December 31,</td><td style="white-space: nowrap;"> </td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;">Amount</td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">2026</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">21,780</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">2027</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">18,150</td><td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Total minimum lease payments</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">39,930</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Less: imputed interest</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">(2,499</td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Total lease obligations</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">37,431</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Less: current portion</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(19,780</td><td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Long-term portion of lease obligations</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">17,651</td><td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> </td></tr></tbody></table> Operating lease cost was $10,066 for the six months ended December 31, 2025, $9,654 for the six months ended December 31, 2024 (unaudited), $19,308 for the year ended June 30, 2025 and $3,218 for the year ended June 30, 2024. Cash paid for amounts included in the measurement of lease liabilities approximated operating lease cost in each period. The weighted-average remaining lease term as of December 31, 2025 was 1.8 years and the weighted-average discount rate was 7.5%. Contingencies The Company may be subject to pending legal proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the Company does not anticipate that the final outcome, if any, arising out of any such matters will have a material adverse effect on its business, financial condition or results of operations. As of December 31, 2025, the Company was not a party to any material pending legal proceedings.

1609 27482 0.075 1815 40586 0.075

<table cellpadding="0" style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%"><tbody><tr style="height:15px"><td style="BORDER-BOTTOM: 1px solid;vertical-align:bottom;">Year Ending December 31,</td><td style="white-space: nowrap;"> </td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;">Amount</td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">2026</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">21,780</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">2027</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">18,150</td><td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Total minimum lease payments</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">39,930</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Less: imputed interest</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">(2,499</td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Total lease obligations</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">37,431</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Less: current portion</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(19,780</td><td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Long-term portion of lease obligations</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">17,651</td><td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> </td></tr></tbody></table>

21780

18150

39930

-2499

37431

19780

17651

10066

9654

19308

3218

P1Y9M18D

0.075

NOTE 8 — RELATED PARTY TRANSACTIONS Related party transactions are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties. Related parties are natural persons or other entities that have the ability, directly or indirectly, to control another party or exercise significant influence over the party in making financial and operating decisions, and include other parties that are subject to common control or common significant influence. Deferred officer compensation Certain of the Company’s executive officers have deferred a portion of their compensation. Deferred wages payable to officers was $145,500 and $43,500 as of December 31, 2025 and June 30, 2025, respectively, an increase of $102,000 during the Transition Period. These amounts are non-interest bearing, unsecured and payable on demand. Other than the employment agreement with the Company’s Chief Technology Officer entered into effective April 1, 2026, there are no written employment agreements with the Company’s executive officers. Related party loan In February 2025, pursuant to the terms of a promissory note, the Company issued 250,000 shares of its common stock to its Chief Executive Officer as an accommodation for advancing the Company a zero-interest loan in the amount of $30,000. The loan was repayable within 30 days from the date of issuance. The Company determined the relative fair value of the debt and equity components; accordingly, the debt was discounted by $20,270, which was accreted through the maturity date and recorded as interest expense during the year ended June 30, 2025. As of June 30, 2025, the loan had been repaid in full. There were no related party loans outstanding as of December 31, 2025. Family relationship Tarek N. Shoufani, a director and the Company’s Chief Operating Officer, is the brother-in-law of Fred E. Tannous, a director and the Company’s Chief Executive Officer. Related party transactions occurring after December 31, 2025, including the settlement of deferred officer compensation in shares, the transactions with Arcadia Data Pte. Ltd. and the arrangements with Anthony De Luna, are described in Note 10.

145500 43500 102000

250000

30000

NOTE 9 — INCOME TAXES The Company accounts for income taxes under the asset and liability method of ASC 740. Deferred taxes are recognized for temporary differences between the basis of assets and liabilities for financial statement and income tax purposes. The differences relate primarily to net operating loss carryforwards and accrued officer compensation that is deductible when paid. The Company had no current or deferred income tax provision for any period presented. A reconciliation of the income tax benefit computed at the federal statutory rate to the income tax provision is as follows: <table cellpadding="0" style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%"><tbody><tr style="height:15px"><td> </td><td style="white-space: nowrap;"> </td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;">Six Months Ended December 31, 2025</td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> </td><td style="white-space: nowrap;"> </td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;">Year Ended June 30, 2025</td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> </td><td style="white-space: nowrap;"> </td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;">Year Ended June 30, 2024</td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Income tax benefit at federal statutory rate (21%)</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">66,458</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">111,238</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">196,894</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">State income tax benefit, net of federal effect</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">22,101</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">36,992</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">65,478</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Permanent differences and other</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">-</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">(16,969</td><td style="width:1%;white-space: nowrap;">) </td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">(85,548</td><td style="width:1%;white-space: nowrap;">) </td></tr><tr style="height:15px;background-color:#ffffff"><td>Temporary differences</td><td> </td><td> </td><td class="ffcell"> 35,178</td><td> </td><td> </td><td> </td><td class="ffcell"> (2,261</td><td>) </td><td> </td><td> </td><td class="ffcell"> (22,824</td><td>) </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Change in valuation allowance</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(123,737</td><td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(129,000</td><td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(154,000</td><td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Income tax provision</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">-</td><td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">-</td><td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">-</td><td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> </td></tr></tbody></table> The components of the Company’s net deferred tax assets are as follows: <table cellpadding="0" style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%"><tbody><tr style="height:15px"><td> </td><td style="white-space: nowrap;"> </td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;">December 31, 2025</td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> </td><td style="white-space: nowrap;"> </td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;">June 30, 2025</td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> </td><td style="white-space: nowrap;"> </td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;">June 30, 2024</td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Net operating loss carryforwards</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">381,021</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">298,000</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">169,000</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Accrued compensation</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">40,716</td><td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">-</td><td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">-</td><td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Total deferred tax assets</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">421,737</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">298,000</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">169,000</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Less: valuation allowance</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(421,737</td><td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(298,000</td><td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(169,000</td><td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Net deferred tax assets</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">-</td><td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">-</td><td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">-</td><td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> </td></tr></tbody></table> The Company recognizes deferred tax assets to the extent that it believes these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. The Company has a history of losses and had no revenue-generating operations at December 31, 2025, and accordingly has determined that a full valuation allowance against its net deferred tax assets is required. The valuation allowance increased by $123,737 during the Transition Period, of which $88,559 relates to the benefit of the loss for the period and the remainder primarily to the treatment of research and development costs. Deferred tax assets were calculated using the Company’s combined federal and state statutory rate of approximately 28%. The effective rate is reduced to 0% by the full valuation allowance. At December 31, 2025, the Company had federal net operating loss carryforwards of approximately $1,362,000, which can be carried forward indefinitely but the use of which is limited to 80% of taxable income in any year, and state net operating loss carryforwards of a similar amount that expire beginning in 2043. At June 30, 2025, federal net operating loss carryforwards were approximately $1,065,000. Section 382 of the Internal Revenue Code limits the amount of net operating loss carryforwards that can be utilized annually following an ownership change of more than 50 percentage points among five-percent stockholders over a three-year period. Management has not completed a Section 382 study and has not determined the extent of any resulting limitation; because the Company’s deferred tax assets are fully reserved, any limitation would not affect the Company’s financial position or results of operations. The Company has evaluated its income tax positions and has determined that it does not have any uncertain tax positions. The Company will recognize interest and penalties related to any uncertain tax positions through its income tax expense. The Company is subject to taxation in the United States and California, is not presently subject to any income tax audit in any taxing jurisdiction, and all tax years from inception remain open to examination. The change in fiscal year end requires the Company to file a short-period federal income tax return for the period from July 1, 2025 to December 31, 2025. Beginning with the quarter ended June 30, 2026, the Company’s consolidated income tax provision also includes the Philippine income taxes of Flipside AI, which is registered with the Philippine Economic Zone Authority and benefits from the incentives available under that registration.

<table cellpadding="0" style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%"><tbody><tr style="height:15px"><td> </td><td style="white-space: nowrap;"> </td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;">Six Months Ended December 31, 2025</td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> </td><td style="white-space: nowrap;"> </td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;">Year Ended June 30, 2025</td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> </td><td style="white-space: nowrap;"> </td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;">Year Ended June 30, 2024</td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Income tax benefit at federal statutory rate (21%)</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">66,458</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">111,238</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">196,894</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">State income tax benefit, net of federal effect</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">22,101</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">36,992</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">65,478</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Permanent differences and other</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">-</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">(16,969</td><td style="width:1%;white-space: nowrap;">) </td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">(85,548</td><td style="width:1%;white-space: nowrap;">) </td></tr><tr style="height:15px;background-color:#ffffff"><td>Temporary differences</td><td> </td><td> </td><td class="ffcell"> 35,178</td><td> </td><td> </td><td> </td><td class="ffcell"> (2,261</td><td>) </td><td> </td><td> </td><td class="ffcell"> (22,824</td><td>) </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Change in valuation allowance</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(123,737</td><td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(129,000</td><td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(154,000</td><td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Income tax provision</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">-</td><td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">-</td><td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">-</td><td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> </td></tr></tbody></table>

66458

111238

196894

22101

36992

65478

-16969

-85548

35178 2261 22824

-123737

-129000

-154000

<table cellpadding="0" style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%"><tbody><tr style="height:15px"><td> </td><td style="white-space: nowrap;"> </td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;">December 31, 2025</td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> </td><td style="white-space: nowrap;"> </td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;">June 30, 2025</td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> </td><td style="white-space: nowrap;"> </td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;">June 30, 2024</td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Net operating loss carryforwards</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">381,021</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">298,000</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">169,000</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Accrued compensation</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">40,716</td><td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">-</td><td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">-</td><td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Total deferred tax assets</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">421,737</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">298,000</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">169,000</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Less: valuation allowance</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(421,737</td><td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(298,000</td><td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(169,000</td><td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Net deferred tax assets</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">-</td><td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">-</td><td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">-</td><td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> </td></tr></tbody></table>

381021

298000

169000

40716 0 0

421737

298000

169000

421737

298000

169000

123737

88559

0.28

1362000

1065000

NOTE 10 — SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date these financial statements were issued. Because this Transition Report is being filed approximately nine months after the balance sheet date, the following events occurring between January 1, 2026 and the date of issuance are disclosed. The Company’s consolidated financial statements as of and for the three and six months ended June 30, 2026, which reflect the acquisition described below, are included in the Company’s Quarterly Report on Form 10-Q filed on August 14, 2026. Acquisition of TaskAlpha and Flipside AI On January 13, 2026, the Company entered into a Stock Purchase Agreement, subsequently amended on March 30, 2026, with Arcadia Data Pte. Ltd. (“Arcadia”), Crestview BPO Pte. Ltd., Flipside Digital Content Company, Inc. (“Flipside AI”) and the selling shareholders named therein. On April 1, 2026, the Company completed the acquisition of 100% of the equity interests of Crestview BPO Pte. Ltd., a Singapore company renamed TaskAlpha Pte. Ltd. in July 2026 (“TaskAlpha”), which owns 100% of Flipside AI, a Philippine corporation engaged in providing data curation, annotation and validation services for artificial intelligence systems. The transaction was accounted for as a business combination under ASC 805 with the Company as the accounting acquirer. The consideration transferred consisted of $600,000 in cash, a $450,000 seller convertible note recorded at its present value of $379,694, and 6,520,000 shares of common stock valued at $1,630,000, for total consideration of $2,609,694. An additional 326,000 shares valued at $81,500 were issued to the business broker and recorded as a transaction cost. Shares issued in the acquisition were measured at $0.25 per share, the price at which the Company sold shares for cash in contemporaneous private placements, because the Company’s common stock does not trade in an active market. The provisional allocation of the consideration transferred is as follows: <table cellpadding="0" style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%"><tbody><tr style="height:15px"><td> </td><td style="white-space: nowrap;"> </td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;">Amount</td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Cash</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">25,146</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Accounts receivable, net</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">354,252</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Due from related parties</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">354,996</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Prepaid expenses and other current assets</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">25,788</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Property and equipment, net</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">204,685</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Right of use asset</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">213,125</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Other non-current assets</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">63,101</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Identifiable intangible assets</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">200,000</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Accounts payable and accrued expenses</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">(122,257</td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Loans payable</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">(741,054</td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Right of use liability</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">(200,075</td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Retirement benefit obligation</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">(301,266</td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Deferred tax liability on intangibles</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(50,000</td><td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Net identifiable assets acquired</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">26,441</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Goodwill</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">2,583,253</td><td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Total consideration transferred</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">2,609,694</td><td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> </td></tr></tbody></table> Identifiable intangible assets consist of customer relationships of $90,000 (seven-year life), a trade name of $60,000 (five-year life) and a non-compete agreement of $50,000 (five-year life). The allocation is provisional pending completion of the Company’s valuation procedures and may be revised during the measurement period, which ends April 1, 2027. Goodwill is attributable principally to the assembled workforce and expected synergies and is not expected to be deductible for income tax purposes. The seller convertible note issued to Arcadia bears no interest, increasing to 8% upon an event of default, is payable in three equal annual installments of $150,000 on April 1, 2027, 2028 and 2029, is convertible at the holder’s option into common stock at $0.75 per share, and contains a cross-default to the Stock Purchase Agreement. Because the note is non-interest-bearing, it was recorded at present value using an imputed interest rate of 9%, and the resulting discount of $70,306 is being amortized to interest expense using the effective interest method. Due from related parties acquired in the acquisition consists of an Advance Payable Note in the principal amount of $840,000 delivered by Anthony De Luna, the founder and Chief Executive Officer of Flipside AI, which formalizes personal advances made to him by Flipside AI before the acquisition. The note is non-interest-bearing and is payable in eight quarterly installments of $105,000 commencing April 1, 2026, with any remaining balance due March 31, 2028. At the issuer’s option each installment may be settled in cash or by the release of shares of the Company’s common stock held in escrow, with the number of shares determined using the greater of the trailing ten-day volume weighted average price or $0.75 per share; 1,120,000 shares are held in escrow, corresponding to eight installments at the $0.75 floor. The note was recorded at its acquisition-date fair value of $354,996, determined by probability-weighting cash settlement (20%) and share settlement (80%), and is subsequently measured at amortized cost without accretion of the discount. The installments due April 1, 2026 and July 1, 2026 were not settled in cash, and no shares had been released from escrow as of the date of this report. The Company has not arranged, extended, maintained or renewed any personal loan to Mr. De Luna. Loans payable of Flipside AI assumed in the acquisition consist of borrowings from Philippine financial institutions and from individual lenders, including certain of the selling shareholders and a member of the Company’s Board of Directors, bearing interest at rates from 9% to 17% per annum and, with one exception, maturing within twelve months of June 30, 2026. Flipside AI maintains an unfunded defined benefit retirement plan for its employees as required by Philippine law, the obligation under which was $301,266 at the acquisition date.Loan from Arcadia On April 6, 2026, Arcadia advanced $200,000 to TaskAlpha under an unsecured loan bearing interest at 12% per annum, with default interest of 2% per month, governed by Singapore law. The loan matured on July 6, 2026 and has been extended by agreement with Arcadia to October 6, 2026 on its existing terms. No principal or interest was repaid at the original maturity date. Equity issuances During the six months ended June 30, 2026, in addition to the acquisition shares, the Company issued 3,000,000 shares of common stock in private placements in the first quarter for gross proceeds of $750,000 and 1,800,000 shares in private placements in the second quarter for gross proceeds of $450,000, each at $0.25 per share; 439,000 shares for services valued at $109,750; and 816,000 shares valued at $204,000 to two of its officers in settlement of deferred wages, as described below. In total, 12,901,000 shares were issued during the period, and 34,564,312 shares were issued and outstanding at June 30, 2026. Deferred officer compensation Deferred wages payable of $145,500 at December 31, 2025 represented compensation deferred by two officers of the Company. An additional $102,000 was accrued during the six months ended June 30, 2026, of which $43,500 was paid in cash in June 2026. The remaining $204,000, representing compensation deferred from July 1, 2025 to June 30, 2026, was settled on June 30, 2026 through the issuance of 816,000 shares of common stock to those officers at $0.25 per share (456,000 shares to the Chief Executive Officer and 360,000 shares to the Chief Operating Officer). No gain or loss was recognized on the settlement. Impairment of software During the quarter ended June 30, 2026, the Company recorded an impairment charge of $135,000, writing off in full the carrying amount of the software described in Note 4. Following the acquisition of Flipside AI the Company is no longer pursuing commercialization of that software, and no future cash flows are expected from its use or disposition. The decision not to pursue commercialization was made after December 31, 2025 and did not provide evidence of conditions existing at the balance sheet date. Management and board changes Effective April 1, 2026, Anthony De Luna was appointed Chief Technology Officer of the Company and a member of its Board of Directors. Under his employment agreement he receives an annual base salary of $175,000, an annual incentive bonus equal to 3% of the Company’s net after-tax income, and a commission equal to 3% of revenues generated by Flipside AI from customers he introduced, and he is entitled to a grant of 500,000 performance stock units that vest based on specified market capitalization milestones. The Company concluded that a grant date under ASC 718 has not been established for certain tranches of those units because the vesting conditions do not sufficiently define the measurement methodology or period. Also effective April 1, 2026, Eric Sherb was appointed Chief Financial Officer under a consulting agreement between the Company and EMS Consulting Services, Inc., an entity controlled by Mr. Sherb, providing for a monthly retainer of $5,000 and a grant of 36,000 shares of common stock vesting in equal installments over six months; the agreement may be terminated by either party at any time. Effective June 30, 2026, Tarek N. Shoufani resigned as Chief Operating Officer and continues to serve as a non-employee director, and effective July 1, 2026, Jaime Fanlo was appointed to the Board of Directors. Director compensation On July 1, 2026, the Company entered into director agreements with its three non-employee directors, Shoufani, Manlunas and Fanlo, and granted each of them 250,000 performance restricted stock units, or 750,000 units in the aggregate, as standalone inducement grants outside any equity incentive plan and constituting the directors’ sole compensation for board service. The units vest in five tranches upon the Company’s market capitalization equaling or exceeding thresholds ranging from $15 million to $75 million on each of twenty consecutive trading days, subject to continuous board service through the date of achievement, and any units for which the applicable threshold has not been achieved within ten years of the grant date are forfeited. Because vesting is based on market capitalization, the awards contain market conditions as defined in ASC 718, and the Company will measure their grant-date fair value and recognize the resulting cost over the derived requisite service period whether or not the thresholds are achieved. Change in fiscal year On June 25, 2026, the Board of Directors approved the change in the Company’s fiscal year end from June 30 to December 31 described in Note 1. Bridge financing On August 31, 2026, the Board of Directors approved a bridge financing with two accredited investors, none of whom is an officer, director or affiliate of the Company. The financing consists of senior promissory notes in an aggregate principal amount of up to $300,000 and warrants to purchase up to 300,000 shares of common stock. The notes mature 365 days after issuance and bear interest at 12% per annum through the ninetieth day after issuance and 20% per annum thereafter, with default interest at 20% compounded monthly. The notes may be prepaid at any time without penalty and are not convertible into equity securities. They are secured by a security interest in the Company’s primary operating account, which remains unperfected unless a deposit account control agreement is obtained following an event of default. The Company has also agreed to a negative pledge and a sweep of financing proceeds. Under an escrow agreement, $300,000 of subscription proceeds committed under private placement are to be remitted to an escrow account and applied first to repay the notes. The warrants are exercisable at $0.375 per share for five years from issuance and are issued as additional consideration for the purchase of the notes. Financial advisory agreement Effective September 1, 2026, the Company entered into an Advisory and Investment Banking Fee Agreement with Revere Securities LLC (“Revere”), a registered broker-dealer. Under the agreement, Revere will introduce potential investors and strategic counterparties to the Company for a term of twelve months, and either party may terminate on 30 days’ notice. The Company pays Revere an advisory fee of $10,000 per month, which is creditable against any success fees. For financings and strategic transactions resulting from introductions accepted by the Company, Revere is entitled to three types of fees. For debt financings, the fee is 3% of gross proceeds in cash. For equity-linked financings, the fee is 8% of gross proceeds in cash, together with a seven-year warrant to purchase 8% of the securities sold in the financing at the offering price. For strategic transactions, the cash fee ranges from 5% of the first $5,000,000 of transaction consideration down to 1% of amounts above $20,000,000, or is 1% where the Company is the acquirer. These fees also apply to accepted introductions that close within twelve months after the agreement expires or is terminated. Warrants issued for services On September 21, 2026, the Board of Directors approved the issuance of two five-year warrants, each to purchase 150,000 shares of common stock at an exercise price of $0.375 per share for corporate legal services and advisory services. Of these warrants, 150,000 can be exercise in cash, or as an offset for legal service fees owed. Restricted stock award On September 22, 2026, the Board of Directors approved a standalone award of 120,000 restricted shares of common stock, outside any equity incentive plan, to a non-executive employee in payment of the employee’s annual salary. The shares vest in twelve monthly installments of 10,000 shares from September 15, 2026 through August 31, 2027, subject to continued employment. Any unvested shares are forfeited when employment ends. The Company has not yet determined the fair values of the warrants and restricted shares described above, or the allocation of the bridge financing proceeds between the notes and the warrants.

600000

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2609694 326000 81500

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<table cellpadding="0" style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%"><tbody><tr style="height:15px"><td> </td><td style="white-space: nowrap;"> </td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;">Amount</td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Cash</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">25,146</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Accounts receivable, net</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">354,252</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Due from related parties</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">354,996</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Prepaid expenses and other current assets</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">25,788</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Property and equipment, net</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">204,685</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Right of use asset</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">213,125</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Other non-current assets</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">63,101</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Identifiable intangible assets</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">200,000</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Accounts payable and accrued expenses</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">(122,257</td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Loans payable</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">(741,054</td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Right of use liability</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">(200,075</td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Retirement benefit obligation</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">(301,266</td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Deferred tax liability on intangibles</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(50,000</td><td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Net identifiable assets acquired</td><td style="width:1%;white-space: nowrap;"> </td><td style="width:1%;white-space: nowrap;"> </td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">26,441</td><td style="width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;">Goodwill</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> </td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">2,583,253</td><td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> </td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;">Total consideration transferred</td><td style="width:1%;white-space: nowrap;"> </td><td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">2,609,694</td><td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> </td></tr></tbody></table>

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with the number of shares determined using the greater of the trailing ten-day volume weighted average price or $0.75 per share; 1,120,000 shares are held in escrow, corresponding to eight installments at the $0.75 floor. The note was recorded at its acquisition-date fair value of $354,996, determined by probability-weighting cash settlement (20%) and share settlement (80%), and is subsequently measured at amortized cost without accretion of the discount

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The Company pays Revere an advisory fee of $10,000 per month, which is creditable against any success fees. For financings and strategic transactions resulting from introductions accepted by the Company, Revere is entitled to three types of fees. For debt financings, the fee is 3% of gross proceeds in cash. For equity-linked financings, the fee is 8% of gross proceeds in cash, together with a seven-year warrant to purchase 8% of the securities sold in the financing at the offering price. For strategic transactions, the cash fee ranges from 5% of the first $5,000,000 of transaction consideration down to 1% of amounts above $20,000,000, or is 1% where the Company is the acquirer 150000

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150000 Board of Directors approved a standalone award of 120,000 restricted shares of common stock, outside any equity incentive plan, to a non-executive employee in payment of the employee’s annual salary. The shares vest in twelve monthly installments of 10,000 shares from September 15, 2026 through August 31, 2027 director or officer false false