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 information in this report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This Act provides a "safe harbor" for forward-looking statements to encourage companies to provide prospective information about themselves provided they identify these statements as forward looking and provide meaningful cautionary statements identifying important factors that could cause actual results to differ from the projected results. All statements other than statements of historical fact made in this report are forward-looking. In particular, the statements herein regarding future results of operations or financial position are forward-looking statements. Forward-looking statements reflect management's current expectations and are inherently uncertain. The Company's actual results may differ significantly from management's expectations as a result of many factors.

You should read the following discussion and analysis in conjunction with the financial statements of the Company, and notes thereto, included herewith. This discussion should not be construed to imply that the results discussed herein will necessarily continue into the future or that any conclusion reached herein will necessarily be indicative of actual operating results in the future. Such discussion represents only the best present assessment of management. The Company assumes no obligations to update any of these forward-looking statements.

Results of Operations

For the three months ended June 30, 2026 and 2025

Revenue

The Company had no operations and no revenue for the three months ended June 30, 2026 and 2025, and its only income was from interest income on its short-term investments which are classified as cash and cash equivalents.

Operating Expenses

The following table presents our total operating expenses for the three months ended June 30, 2026 and 2025.

		Three Months Ended
		June 30,
		2026				2025
Audit and accounting fees		$	12,000			$	9,600
Payroll expense			3,629				5,147
Other general and administrative expense			10,892				17,709
Total		$	26,521			$	32,456

Operating expenses decreased by $5,935 for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. The decrease was related to the decrease in other general and administration legal for the three months ended June 30, 2026.

Other general and administrative expenses are comprised of OTC registration fee, transfer agent and EDGAR filer services and other services. These expenses were directly related to the maintenance of the corporate entity and the preparation and filing of reports with the Securities and Exchange Commission.

Loss from Operations

The Company incurred a loss from operations of $26,521 and $32,456 for the three months ended June 30, 2026 and 2025, respectively.

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Other Income (Expense)

The following table presents our total Other Income (Expense) for the three months ended June 30, 2026 and 2025.

		Three Months Ended June 30,
		2026				2025
Interest and other income		$	1,628			$	2,570
Other Income (Expense), net		$	1,628			$	2,570

Other income decreased by $942 for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. This decrease primarily resulted from a lower bank balance during the six months ended June 30, 2025.

Net Loss

The Company had a net loss of $24,893 for the three months ended June 30, 2026, compared with a net loss of $29,886 for the three months ended June 30, 2025. The decrease in net loss was due to the above-mentioned decrease in other general and administrative expenses.

Loss per share for the three months ended June 30, 2026 and 2025 was approximately $(0.00) and $(0.00) based on the weighted-average shares issued and outstanding.

It is anticipated that future operating expenses will be consistent and then stabilize as the Company complies with its periodic reporting requirements; however, expenses may increase as the Company works to effect a business combination, although there can be no assurance that the Company will be successful in effecting a business combination.

For the six months ended June 30, 2026 and 2025

Revenue

The Company had no operations and no revenue for the six months ended June 30, 2026 and 2025, and its only income was from interest income on its short-term investments which are classified as cash and cash equivalents.

Operating Expenses

The following table presents our total operating expenses for the six months ended June 30, 2026 and 2025.

		Six Months Ended
		June 30,
		2026				2025
Audit and accounting fees		$	17,100			$	18,845
Payroll expense			10,480				10,431
Other general and administrative expense			16,276				20,505
Total		$	43,856			$	49,781

Operating expenses decreased by $5,925 for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. The decrease was related to the decrease in professional fees and other general and administration legal fees for the six months ended June 30, 2026.

Other general and administrative expenses are comprised of OTC registration fee, transfer agent and EDGAR filer services and other services. These expenses were directly related to the maintenance of the corporate entity and the preparation and filing of reports with the Securities and Exchange Commission.

Loss from Operations

The Company incurred a loss from operations of $43,856 and $49,781 for the six months ended June 30, 2026 and 2025, respectively.

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Other Income (Expense)

The following table presents our total Other Income (Expense) for the six months ended June 30, 2026 and 2025.

		Six Months Ended June 30,
		2026				2025
Interest and other income		$	3,366			$	5,388
Warrants modification expense		$	(138,180	)		$	-
Other Income (Expense), net		$	(134,814	)		$	5,388

Net other income (expense) was $(134,814) for the six months ended June 30, 2026, compared to net other income (expense) of $5,388 for the six months ended June 30, 2025. The change was due to the extension of the warrants' expiration date resulting in warrants modification expense of $138,180 during the six months ended June 30, 2026 (see Note 5 to the financial statements).

Net Loss

The Company had a net loss of $178,670 for the six months ended June 30, 2026, compared with a net loss of $44,393 for the six months ended June 30, 2025. The increase in net loss was mainly due to the above-mentioned warrants modification expense.

Loss per share for the six months ended June 30, 2026 and 2025 was approximately $(0.00) and $(0.00) based on the weighted-average shares issued and outstanding.

It is anticipated that future operating expenses will decrease and then stabilize as the Company complies with its periodic reporting requirements; however, expenses may increase as the Company works to effect a business combination, although there can be no assurance that the Company will be successful in effecting a business combination.

Liquidity and Capital Resources

At June 30, 2026 the Company had cash and cash equivalents of $180,726, consisting of money market funds and U.S. Treasury and government securities maturing in 3 months or less. Management believes that its cash and cash equivalents are sufficient for its business activities for at least the next twelve months and for the costs of seeking an acquisition of an operating business.

The following table provides detailed information about our net cash flow for all years presented in this Report.

Cash Flow

		Six Months Ended
		June 30,
		2026				2025
Net Cash Used in Operating Activities		$	(41,240	)		$	(44,393	)
Net Cash Used in Investing Activities			-				-
Net Cash Provided by Financing Activities			-				-
Net Decrease in Cash and Cash Equivalents		$	(41,240	)		$	(44,393	)

Net cash of $41,240 and $44,393 were used in operations during the six months ended June 30, 2026 and 2025, respectively.

The cash used in operating activities of $41,240 for the six months ended June 30, 2026 principally resulted from our net loss of $178,670 offset by change in warrants modification expense of $138,180 and change in accounts payable and accrued expenses of $750.

The cash used in operating activities of $44,393 for the six months ended June 30, 2025 principally resulted from our net loss of $44,393.

No cash flows were used in or provided by investing activities during the six months ended June 30, 2026 and 2025.

No cash flows were used in or provided by financing activities during the six months ended June 30, 2026 and 2025.

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New Accounting Pronouncements

Refer to the discussion of recently adopted/issued accounting pronouncements under Note 3 - Significant Accounting Policies and Recent Accounting Pronouncements.

Factors Which May Affect Future Results

Future earnings of the Company are dependent on interest rates earned on the Company's invested balances and expenses incurred. The Company expects to incur significant expenses in connection with its objective of identifying a merger partner or acquiring an operating business.