Quarterly Report for Quarter Ending March 31, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our results of operations and financial condition should be read in conjunction with our condensed consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q. This discussion contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those discussed in these forward-looking statements for a variety of reasons, including those set forth in our Annual Report on Form 10-K and in other filings with the SEC.

Overview

American Picture House Corporation is an entertainment company focused on the development, packaging, financing and production of feature films and limited series. During 2025, we pivoted away from third-party consulting to concentrate on internally developed projects and selective strategic partnerships. We generally pursue two complementary approaches to participating in projects: (i) structured film finance and senior or priority recoupment positions, including senior secured production lending and first-priority receipt structures designed to prioritize return of capital; and (ii) building an owned or controlled content library over time by acquiring or optioning intellectual properties and, where appropriate, obtaining negative ownership or other control rights in projects.

Recent Developments During the First Quarter of 2026

The following table summarizes our results of operations for the three months ended March 31, 2026 and 2025:

Revenues. During the three months ended March 31, 2026, revenues were $1,220, compared with $0 for the three months ended March 31, 2025. The change was primarily attributable to income from the BARRON'S COVE CAMA.

General and Administrative Expenses. General and administrative expenses for the three months ended March 31, 2026 were $112,656, compared with $475,457 for the three months ended March 31, 2025. The period-over-period reduction in expense was primarily attributable to the 2025 period including $232,995 of stock option expense compared to $0 in the 2026 period and lower professional and consulting fees. Additionally, legal and consulting fees decreased by $183,242 for the 2026 quarter compared to the 2025 quarter as the Company sought to reduce operating expenses.

Sales and Marketing Expenses. Sales and marketing expenses for the three months ended March 31, 2026 were $1,582, compared with $461 for the three months ended March 31, 2025.

Interest Expense. Interest expense for the three months ended March 31, 2026 was $58,221, compared with $12,919 for the prior-year period, with the change primarily attributable to credit card debt and the Labrys financings.

Liquidity and Capital Resources

As of March 31, 2026, we had cash and cash equivalents of approximately $22,000, a working capital deficit of approximately $1,452,000, and accumulated deficit of $$7,997,633. As of December 31, 2025, we had cash and cash equivalents of $124 and negative working capital of approximately $435,000. These conditions raise substantial doubt about our ability to continue as a going concern.

Operating Activities. During the three months ended March 31, 2026, net cash used in operating activities was $12,949, compared with net cash used in operating activities of $155,207 for the three months ended March 31, 2025. The 2026 period primarily reflects the collection of $1.0M of receivables that were subsequently redeployed into new and incremental film production activities.

Financing Activities. During the three months ended March 31, 2026, net cash provided by financing activities was $35,163, compared with net cash provided by financing activities of $159,826 for the three months ended March 31, 2025. The 2026 period reflects net Labrys note proceeds of $172,500 and repayment of $25,000 against the Labrys note and $112,337 of repayment of related-party borrowings.

Funding Requirements. We expect our expenses to increase in connection with our ongoing film development and production activities and our public-company reporting obligations. We expect to finance operations and investments through a combination of project receipts, debt financings, equity issuances, and strategic transactions, although there can be no assurance that sufficient capital will be available on acceptable terms, or at all.

Critical Accounting Policies and Estimates

Our management's discussion and analysis of financial condition and results of operations are based on our condensed consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. We believe our critical accounting policies and estimates include those related to revenue recognition, collectability of receivables, impairment of produced and licensed content costs and intangible assets, stock-based compensation, accounting for debt and equity-linked instruments, and contingencies.

Off-Balance Sheet Arrangements

None, except as may be described in the notes to the condensed consolidated financial statements.