Quarterly Report for Quarter Ending June 30, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition 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.

Revenues

We had no revenue for the three or six months ended June 30, 2026 and 2025

Operating Expenses

Operating expenses increased to $77,045 for the three months ended June 30, 2026, from $19,854 for the same period ended June 30, 2025. Operating expenses increased to $120,429 for the six months ended June 30, 2026, from $35,821 for the same period ended June 30, 2025. The increase in operating expenses is mainly the result of the increase in professional fees during the three and six month period.

Other Expense

We had other expense of $10,363 for the three months ended June 30, 2026, as compared with other expenses of $9,328 for the three months ended June 30, 2025. We had other expense of $19,792 for the six months ended June 30, 2026, as compared with other expenses of $17,816 for the six months ended June 30, 2025. Other expenses consisted of accrued interest expense and increased as a result of the Company issuing additional debt during 2026.

Net Loss

We recorded a net loss of $87,408 for the three months ended June 30, 2026, as compared with a net loss of $29,182 for the three months ended June 30, 2025. We recorded a net loss of $140,221 for the six months ended June 30, 2026, as compared with a net loss of $33,783 for the six months ended June 30, 2025.The change in net income was the result of the factors described above.

Liquidity and Capital Resources

Going concern - The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred cumulative net losses of $29,741,007 since its inception and requires capital for its contemplated operational and marketing activities to take place. The Company's ability to generate the necessary funds through licensing of its core products or the ability to raise additional capital through the future issuances of common stock or debt is unknown. The obtainment of additional financing, the successful development of the Company's contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations. These factors, among others, raises substantial doubt about the Company's ability to continue as a going concern. The condensed consolidated financial statements of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties.

As of June 30, 2026, we had total current assets in the amount of $0. Our total current liabilities as of June 30, 2026 were $771,081. We had a working capital deficit of $771,081 as of June 30, 2026, compared with a working capital deficit of $630,860 as of December 31, 2025.

Operating activities used $83,418 in cash for the six months ended June 30, 2026, as compared with $33,869 used for the six months ended June 30, 2025. Our negative operating cash flows for 2026 and 2025 were largely the result of our net loss for those quarters, mainly offset by changes in operating assets and liabilities and the amortization of debt discount and amortization.

Cash flow provided from financing activities was $83,418 for the six months ended June 30, 2026, as compared with $33,869 provided by cash flows for financing activities during the six months ended June 30, 2025. Our debt from financing activities consist of the issuance of notes payable.

Based upon our current financial condition, we do not have sufficient cash to operate our business at the current level for the next twelve months. We intend to fund operations through increased sales and debt and/or equity financing arrangements, which may be insufficient to fund expenditures or other cash requirements. We plan to seek additional financing in a private equity offering to secure funding for operations. There can be no assurance that we will be successful in raising additional capital.

Business Update

During the six months ended June 30, 2026, the Company continued executing its strategy of developing an artificial intelligence-enabled digital healthcare platform focused on Latin America. Management continued the integration and evaluation of the intellectual property acquired during the first quarter of 2026 and advanced the Company's organizational and operational infrastructure to support future commercialization.

The Company continued development of its planned healthcare technology ecosystem, including artificial intelligence-powered clinical decision support applications, telehealth infrastructure, patient engagement technologies, healthcare analytics solutions, and related digital healthcare services intended for deployment throughout Latin America. In addition, the Company continued regulatory planning, strategic partnership discussions, and business development initiatives designed to support future commercial operations.

The Company's wholly owned Venezuelan subsidiary, Inversiones Long 33, C.A., continues to serve as the Company's primary operating platform in Venezuela. During the quarter, management continued organizational development, technology integration activities, regulatory planning, and preparations for the future commercialization of the Company's healthcare solutions.

During the quarter, the Company completed its corporate rebranding to LataMed AI Corp. and continued expanding its healthcare technology strategy through business development initiatives, strategic planning, and industry engagement activities intended to increase the Company's visibility and support future commercial growth throughout Latin America. The Company also continued evaluating opportunities to expand its presence into additional international healthcare markets.

Although the Company has not yet generated revenue from these initiatives, management believes meaningful progress has been made toward establishing the operational and regulatory foundation necessary for commercialization. The Company intends to continue expanding its technology platform, pursuing strategic relationships, and advancing regulatory initiatives as it works toward the commercial deployment of its digital healthcare ecosystem.