Quarterly Report for Quarter Ending August 31, 2025 (Form 10-Q)

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

FORWARD-LOOKING STATEMENTS

The following discussion may contain forward-looking statements regarding the Company, its business prospects and its results of operations that are subject to certain risks and uncertainties posed by many factors and events that could cause the Company's actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. These forward-looking statements reflect our view only as of the date of this report. The Company cannot guarantee future results, levels of activity, performance, or achievement. The Company does not undertake any obligation to update or correct any forward-looking statements.

Results of Operations for the three months ended August 31, 2025 and 2024

Revenues

We earned no revenues for three months ended August 31, 2025 or 2024.

Operating Expenses

We incurred $30,153 in operating expenses for the three months ended August 31, 2025, as compared with $871,153 in the three months ended August 31, 2024. The decrease in operating expenses is the result of shares issued for services during the three months ended August 31, 2024. We expect our operating expenses will increase in future years as a result of the costs associated with the increased operating activity under our business model.

Other Income/Expenses

We had other expenses of $30,153 for the three months ended August 31, 2025, compared to other expense of $2,057 for the three months ended August 31, 2024. The increase in other expenses was the result of interest expense on the additional debt incurred during the period.

Net Loss

We recorded a net loss of $41,822 for the three months ended August 31, 2025, compared to a net loss $873,210 for the three months ended August 31, 2024. The decrease in net loss was associated with the factors discussed above.

Going Concern

The accompanying financial statements have been prepared in US dollars and in accordance with accounting principles generally accepted in the United States ("GAAP") on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. During the three months August 31, 2025, the Company has incurred net losses of $41,822, accumulated deficits of $12,212,804, and used cash in operations of $19,702. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Our current operations have been funded entirely from capital raised from our private offering of securities as well as additional funding received through the issuance of convertible notes and stock issuances. We are entirely dependent on our ability to attract and receive additional funding from either the sale of securities or outside sources such as private investment or a strategic partner. We currently have no firm agreements or arrangements with respect to any such financing and there can be no assurance that any needed funds will be available to us on acceptable terms or at all. The inability to obtain sufficient funding of our operations in the future will restrict our ability to grow and reduce our ability to continue to conduct business operations. Our failure to raise additional funds will adversely affect our business operations, and may require us to suspend our operations, which in turn may result in a loss to the purchasers of our common stock. If we are unable to obtain necessary financing, we will likely be required to curtail our development plans which could cause us to become dormant. Any additional equity financing may involve substantial dilution to our then existing stockholders.

The Company's ability to continue as a going concern is dependent on its ability to achieve profitable operations and to generate sufficient cash flow from financing and operations to meet its obligations as they become payable.

Management may seek additional capital through a private placement and public offering of its common stock. Although there are no assurances that management's plans will be realized, management believes that the Company will be able to continue operations in the future.

Liquidity and Capital Resources

Our financing objective is to maintain financial flexibility to meet the material, equipment and personnel needs to support our project commitments, and pursue our expansion and diversification objectives.

As of August 31, 2025, we had total current assets of $1,609 and total current liabilities of $903,276. We had a working capital deficit of $901,667 as of August 31, 2025.

Net cash used by operating activities was $19,702 for the three months ended August 31, 2025, as compared with $173,440 cash used for the three months ended August 31, 2025. Our negative operating cash flow for both periods was our net losses, as adjusted to reconcile net loss to net cash provided by operating activities.

Financing activities provided $19,430 in cash for the three months ended August 31, 2025, as compared with $174,931 for the three months ended August 31, 2024. Our positive financing cash flow for 2025 and 2024 mainly consisted of proceeds from notes payables and proceeds from the issuance of common stock, netted against repayments of notes payable.