What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-14 compared with 2025-05-13 · 289 added, 248 removed, 15 unchanged (97% of the section changed)

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

Management’s discussion and analysis of financial

condition and results of operations

Organizational History of the Company and Overview

Corporate History

American Picture House Corporation

was incorporated in Nevada on September 21, 2005 under the name Servinational, Inc.

The Company subsequently changed its name to Shikisai

International, Inc.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

following discussion and analysis should be read in conjunction with our condensed financial statements and related notes included elsewhere

in this report.

This discussion contains forward-looking statements that involve risks and uncertainties.

Our actual results could differ

materially from those discussed in these forward-looking statements due to various factors, including those described in the section

titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q.

On August 1, 2025, subsequent to the

end of the second quarter, the Company entered into an agreement with SSS Entertainment, LLC (“SSS”) to extend to

December 31, 2025 its option to acquire a 24% ownership interest in the feature film Turn Up the Sun!

(aka Pose) for $725,000 and to

acquire all rights, title, and interest in the feature film Barron’s Cove and related secured assets.

As consideration, the

Company issued 500,000 shares of its common stock, allocated equally between the option extension and the asset acquisition.

agreement also provides for the Company to pay SSS the first 85% of revenues from exploitation of Barron’s Cove until SSS has

recouped $2 million, after which all such revenues will be retained by the Company.

SSS may elect to convert future revenue

entitlements into shares of the Company’s common stock at a conversion rate of 2.5 times the retained revenue, subject to a

$1.00 per share floor.

Management believes this transaction expands the Company’s film portfolio and may provide additional

revenue opportunities in future periods.

Organizational

History of the Company and Overview

Picture House Corporation was incorporated in Nevada on September 21, 2005 under the name Servinational, Inc.

The Company subsequently

changed its name to Shikisai International, Inc.

in November 2005 and then to Life Design Station, Intl., Inc.

in August 2007.

The Company changed its state of domicile

from Nevada to Wyoming on October 13, 2020.

On December 4, 2020, the Company changed its name to American Picture House Corporation.

The Board of Directors approved a 50:1

reverse stock split that became effective in the marketplace on October 11, 2021.

Following the reverse stock split, on

September 13, 2021, the Company also adopted an amendment, which was independent of the above-mentioned reverse stock split, to the Company’s Articles of Incorporation to reduce the number of

authorized shares from 4,700,000,000 shares of Common Stock at $0.0001 par value to 1,000,000,000 shares of Common Stock at $0.0001

On October 16, 2024 the shareholders

approved our Second Amended and Restated Articles of Incorporation, which amends Article VI, paragraph A.

(1) of our current Amended and

Restated Articles of Incorporation to grant authorization to our Board of Directors to determine, without shareholder approval, the designations,

preferences, limitations, restrictions, and relative rights of any additional classes of Preferred Stock, and variations in the relative

rights and preferences as between different series.

The Company has filed the Second Amended and Restated Articles of Incorporation with

the State of Wyoming in April 2025.

As of May 13, 2025, the Company has 1,001,000,000

shares authorized, including 1,000,000,000 common shares and 1,000,000 preferred shares.

Common Shares - As of May 13, 2025,

APHP has 1,000,000,000 common shares authorized of which 112,399,325 shares issued and outstanding.

As of May 13, 2025, the total number

of shareholders of record was 332.

All common shares are entitled to participate in any distributions or dividends that may be declared

by the Board of Directors, subject to any preferential dividend rights of outstanding shares of preferred shares.

Preferred Shares - As of May 13, 2025,

the Company had 1,000,000 preferred shares authorized, of which 100,000 preferred shares have been designated as Series A Convertible

Preferred Stock (“Series A preferred shares” herein).

At present, 3,839 Series A preferred shares are issued and outstanding.

changed its state of domicile from Nevada to Wyoming on October 13, 2020.

On December 4, 2020, the Company changed its name to American

Picture House Corporation.

Board of Directors approved a 50:1 reverse stock split that became effective in the marketplace on October 11, 2021.

the reverse stock split, on September 13, 2021, the Company also adopted an amendment, which was independent of the above-mentioned reverse

stock split, to the Company’s Articles of Incorporation to reduce the number of authorized shares from 4,700,000,000 shares of

Common Stock at $0.0001 par value to 1,000,000,000 shares of Common Stock at $0.0001 par value.

October 16, 2024 the shareholders approved our Second Amended and Restated Articles of Incorporation, which amends Article VI, paragraph

(1) of our current Amended and Restated Articles of Incorporation to grant authorization to our Board of Directors to determine, without

shareholder approval, the designations, preferences, limitations, restrictions, and relative rights of any additional classes of Preferred

Stock, and variations in the relative rights and preferences as between different series.

The Company filed the Second Amended and Restated

Articles of Incorporation with the State of Wyoming in April 2025.

of August 14, 2025, the Company has 1,001,000,000 shares authorized, including 1,000,000,000 common shares and 1,000,000 preferred shares.

Shares - As of August 14, 2025, APHP has 1,000,000,000 common shares authorized of which 112,899,3325 shares issued and outstanding.

As of August 14, 2025, the total number of shareholders of record was 332.

All common shares are entitled to participate in any distributions

or dividends that may be declared by the Board of Directors, subject to any preferential dividend rights of outstanding shares of preferred

Shares - As of August 14, 2025, the Company had 1,000,000 preferred shares authorized, of which 100,000 preferred shares have been designated

as Series A Convertible Preferred Stock (“Series A preferred shares” herein).

At present, 3,839 Series A preferred shares

are issued and outstanding.

The Series A preferred shares do not have any rights to dividends;

voting - each share of Series A preferred shares carries a superior

voting right to the Company’s common shares, each Series A preferred share shall be counted as 1,000,000 votes in any Company vote.

Each Series A preferred share is convertible at a ratio of 1 to 100,000 so that each one share of Series A preferred shares may be exchanged

for 100,000 common shares.

Series A preferred shares hold a first position lien against all of the Company’s assets including but

not limited to the Company’s IP (“Intellectual Property”).

The Preferred shares do not have any specific redemption

rights or sinking fund provisions.

Voting Control – As of May 13, 2025, Our Chief Executive

Officer and Chairman of the board of Directors, Bannor Michael MacGregor, is the beneficial owner of 23,654,603 shares of common stock,

which controls 21.05% of the outstanding common voting shares.

MacGregor is the owner of 3,819 (99.5%) of the Company’s 3,839 shares

of issued and outstanding Series A preferred stock.

MacGregor is also the controlling person as the principal of BC, holder of the remaining 20 (0.5%) preferred

shares The Company’s Series A preferred shares have voting rights equal to 1,000,000

votes per each one share.

MacGregor has voting rights equal to 3,862,654,603 shares of common stock, representing 97.75%

of voting rights,

Business Overview

American Picture House Corporation

(“APHP”) , also known as American Picture House Pictures, aims to become a premier entertainment company focused on the

development, financing, and production of feature films, limited series, and content-driven technologies.

Led by astute financiers and

supported by accomplished creatives, the Company is committed to delivering high-quality content with broad market appeal.

Historically, APHP has offered strategic

consulting services to clients within the entertainment sector, providing guidance in areas such as business planning, financial projections,

and corporate marketing.

While these engagements showcased the Company’s expertise in both entertainment and general business strategy,

APHP has since pivoted away from providing independent consulting services.

Moving forward, the Company will concentrate exclusively on

internal content development and strategic partnerships.

APHP is now focused on partnering with

filmmakers, showrunners, content creators, and innovative technology partners to develop, package, finance, and produce compelling film

and television projects.

The Company’s leadership, Board of Directors, and advisory team bring decades of experience across key

entertainment functions, including writing, producing, directing, casting, sales, and licensing, with long-standing relationships at major

studios and production companies.

Although these relationships have yet to translate into direct business for APHP, the Company anticipates

leveraging these connections in its upcoming projects.

Strategic Focus:

voting - each share of Series A preferred

shares carries a superior voting right to the Company’s common shares, each Series A preferred share shall be counted as 1,000,000

votes in any Company vote.

Each Series A preferred share is convertible at a ratio of 1 to 100,000 so that each one share of Series A

preferred shares may be exchanged for 100,000 common shares.

Series A preferred shares hold a first position lien against all of the

Company’s assets including but not limited to the Company’s IP (“Intellectual Property”).

The Preferred shares

do not have any specific redemption rights or sinking fund provisions.

Voting Control – As of August 14, 2025, Mr.

Bannor Michael MacGregor, the Company’s Chief Executive Officer and Chairperson, beneficially owned 24,413,041 shares of the Company’s

common stock (including options exercisable within 60 days), representing approximately 21.62% of the outstanding common shares.

MacGregor directly and indirectly beneficially owns and controls all 3,839 issued and outstanding shares of the Company’s Series

A Preferred Stock, representing 100% of that class.

Each Series A Preferred Share has voting rights equal to 1,000,000 votes per share,

for an aggregate of 3,839,000,000 votes.

When combined with the voting rights associated with his common stock ownership, Mr.

controls voting rights equivalent to 3,863,163,041 shares of common stock, or approximately 97.75% of the Company’s total voting

Picture House Corporation (“APHP”) , also known as American Picture House Pictures, aims to become a premier entertainment

company focused on the development, financing, and production of feature films, limited series, and content-driven technologies.

by astute financiers and supported by accomplished creatives, the Company is committed to delivering high-quality content with broad

market appeal.

Historically,

APHP has offered strategic consulting services to clients within the entertainment sector, providing guidance in areas such as business

planning, financial projections, and corporate marketing.

While these engagements showcased the Company’s expertise in both entertainment

and general business strategy, APHP has since pivoted away from providing independent consulting services.

Moving forward, the Company

will concentrate exclusively on internal content development and strategic partnerships.

is now focused on partnering with filmmakers, showrunners, content creators, and innovative technology partners to develop, package,

finance, and produce compelling film and television projects.

The Company’s leadership, Board of Directors, and advisory team bring

decades of experience across key entertainment functions, including writing, producing, directing, casting, sales, and licensing, with

long-standing relationships at major studios and production companies.

Although these relationships have yet to translate into direct

business for APHP, the Company anticipates leveraging these connections in its upcoming projects.

Mid-Budget Productions

APHP specializes in mid-budgeted productions

where the majority, if not all, of the production budget can be secured against the project’s intellectual property (“IP”),

projected and pre-sold licensing agreements, incentive programs, tax credits, and grants.

The value of the IP, such as book rights, screenplays,

or scripts, can be significantly enhanced by the attachment of award-winning talent, seasoned producers, and skilled directors, making

it a critical asset for financial structuring.

By assembling robust production packages

that include proven creative elements and cost-efficient strategies, such as filming in incentive-friendly locations and building lean

budgets, APHP can mitigate financial risk, reduce its equity exposure, and attract third-party investment.

These efforts are designed

to improve profitability and maximize investor confidence through the development of bankable content.

APHP’s strategic approach emphasizes

financial sophistication, creative excellence, and the use of forward-thinking technology.

To date, APHP owns and has optioned

several IPs with the goal of co-producing and co-financing both feature films and limited series.

Understanding APHP’s Strategy Through the Filmmaking

To better explain APHP’s business model, the filmmaking

process can be broken down into five key stages, each with distinct responsibilities and goals:

Development – Acquiring rights (e.g., books, plays), developing story ideas, and writing the screenplay.

This stage includes securing financing.

Pre-Production – Finalizing the script, hiring cast and crew, scouting and securing locations, and designing sets.

Production – The actual filming process where raw footage is captured.

Post-Production – Editing the footage, adding visual effects, sound design, and finalizing the film.

Distribution – Marketing and distributing the finished project to theaters, streaming platforms, and other outlets.

APHP’s strategy is to participate meaningfully at each

of these stages, especially in development, financing, and packaging, to ensure that every project is positioned for both creative and

commercial success.

Our Strategy to Build Value

APHP’s business strategy centers

on acquiring or optioning intellectual properties, such as book rights, screenplays, and scripts, that have already undergone a meaningful

level of development investment.

In many cases, these properties were advanced by their original creators or teams who, after making substantial

financial or creative commitments, chose to pause or abandon further development due to budgetary or strategic reasons.

By targeting projects at this stage,

APHP aims to acquire valuable entertainment assets at a reduced upfront cost.

In exchange, we may offer the original team a share in future

revenues generated by the property.

specializes in mid-budgeted productions where the majority, if not all, of the production budget can be secured against the project’s

intellectual property (“IP”), projected and pre-sold licensing agreements, incentive programs, tax credits, and grants.

value of the IP, such as book rights, screenplays, or scripts, can be significantly enhanced by the attachment of award-winning talent,

seasoned producers, and skilled directors, making it a critical asset for financial structuring.

assembling robust production packages that include proven creative elements and cost-efficient strategies, such as filming in incentive-friendly

locations and building lean budgets, APHP can mitigate financial risk, reduce its equity exposure, and attract third-party investment.

These efforts are designed to improve profitability and maximize investor confidence through the development of bankable content.

strategic approach emphasizes financial sophistication, creative excellence, and the use of forward-thinking technology.

To date, APHP

owns and has optioned several IPs with the goal of co-producing and co-financing both feature films and limited series.

Understanding

APHP’s Strategy Through the Filmmaking Lifecycle

better explain APHP’s business model, the filmmaking process can be broken down into five key stages, each with distinct responsibilities

– Acquiring rights (e.g., books, plays), developing story ideas, and writing the screenplay.

This stage includes securing

Pre-Production

– Finalizing the script, hiring cast and crew, scouting and securing locations, and designing sets.

– The actual filming process where raw footage is captured.

Post-Production

– Editing the footage, adding visual effects, sound design, and finalizing the film.

– Marketing and distributing the finished project to theaters, streaming platforms, and other outlets.

strategy is to participate meaningfully at each of these stages, especially in development, financing, and packaging, to ensure that

every project is positioned for both creative and commercial success.

Strategy to Build Value

business strategy centers on acquiring or optioning intellectual properties, such as book rights, screenplays, and scripts, that have

already undergone a meaningful level of development investment.

In many cases, these properties were advanced by their original creators

or teams who, after making substantial financial or creative commitments, chose to pause or abandon further development due to budgetary

or strategic reasons.

targeting projects at this stage, APHP aims to acquire valuable entertainment assets at a reduced upfront cost.

In exchange, we may offer

the original team a share in future revenues generated by the property.

This approach enables us to:

Minimize initial capital expenditures;

Allocate more resources toward advancing the project through the filmmaking pipeline;

Benefit from the insights, creative contributions, and goodwill of the original development team;

Significantly reduce financial and creative risk.

Our strategy is predicated on our management

team’s ability to identify projects with unrealized potential and execute on the next stages of development where previous

efforts may have stalled.

This includes leveraging our experience, industry relationships, and financial acumen to transform dormant

or undervalued IP into market-ready content.

Value Creation Initiatives

Once acquired, we enhance the value of these properties through

a multi-pronged strategy that includes:

Engaging experienced Writers Guild of America (WGA) writers to further develop, polish, or rewrite the material;

Attaching high-quality talent—such as reputable producers, directors, and actors;

Assessing and securing international pre-sales and understanding global market value;

Establishing relationships with key financial institutions and banking partners;

Partnering with talent agencies and retaining top legal counsel;

Identifying strategic filming locations that offer robust tax incentives, rebates, or grants;

Creating comprehensive production budgets and tailored financing strategies;

Securing completion bonds to mitigate production risk;

Developing professional production and marketing materials, such as look books, preliminary artwork, and scouting reports.

This methodical, value-driven approach allows APHP to position

each project for optimal creative execution, financial performance, and market success, ultimately maximizing returns for the Company

and its partners.

Organizational Structure

At present, the Company has no employees.

We do, however, utilize

the services of consultants.

initial capital expenditures;

more resources toward advancing the project through the filmmaking pipeline;

from the insights, creative contributions, and goodwill of the original development team;

Significantly

reduce financial and creative risk.

strategy is predicated on our management team’s ability to identify projects with unrealized potential and execute on the next

stages of development where previous efforts may have stalled.

This includes leveraging our experience, industry relationships, and financial

acumen to transform dormant or undervalued IP into market-ready content.

Creation Initiatives

acquired, we enhance the value of these properties through a multi-pronged strategy that includes:

experienced Writers Guild of America (WGA) writers to further develop, polish, or rewrite the material;

high-quality talent—such as reputable producers, directors, and actors;

and securing international pre-sales and understanding global market value;

relationships with key financial institutions and banking partners;

with talent agencies and retaining top legal counsel;

strategic filming locations that offer robust tax incentives, rebates, or grants;

comprehensive production budgets and tailored financing strategies;

completion bonds to mitigate production risk;

professional production and marketing materials, such as look books, preliminary artwork, and scouting reports.

methodical, value-driven approach allows APHP to position each project for optimal creative execution, financial performance, and market

success, ultimately maximizing returns for the Company and its partners.

Organizational

present, the Company has no employees.

We do, however, utilize the services of consultants.

The Company is managed by its officers.

Bannor Michael MacGregor is the CEO, Jonathan Sanger is the President,

Michael Blanchard is the Secretary, and Daniel Hirsch is the Treasurer, all report to a Board of Directors.

At present, only Bannor Michael

MacGregor is under a Consulting Agreement.

The Company maintains three virtual offices in New York, NY,

Raleigh, NC, and Los Angeles, CA.

Critical Accounting Policies and Estimates

Our management’s discussion and

analysis of our financial condition and results of operations are based on our financial statements, which have been prepared in accordance

generally accepted accounting principles, or “GAAP.” The preparation of these financial statements requires us to

make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities

at the date of the financial statements, and the reported amounts of revenue and expenses during the reported period.

In accordance with

GAAP, we base our estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances.

Actual results may differ from these estimates under different assumptions or conditions.

Our significant accounting policies

are fully described in Note 2 to our financial statements appearing elsewhere in this Quarterly Report, and we believe those accounting

policies are critical to the process of making significant judgments and estimates in the preparation of our financial statements.

Cybersecurity Update

APHP’s risk management program remains

Cybersecurity” in our Annual Report on Form 10-K for a full discussion of our risk management and

governance framework.

COVID-19 Update

To date, the COVID-19 pandemic has not

had a material impact on the Company, particularly due to our current lack of operations.

The pandemic may, however, have an impact on

our ability to evaluate and acquire an operating entity through a reverse merger or otherwise.

Off-Balance Sheet Arrangements

Results of Operations

Three Months Ended March 31, 2024 Compared to Three Months

Ended March 31.

The following table summarizes our results of operations for

the three months ended March 31, 2025 and 2024:

Three Months Ended March 31,

Michael MacGregor is the CEO, Jonathan Sanger is the President, Michael Blanchard is the Secretary, and Daniel Hirsch is the Treasurer,

all report to a Board of Directors.

At present, only Bannor Michael MacGregor is under a Consulting Agreement.

Company maintains three virtual offices in New York, NY, Raleigh, NC, and Los Angeles, CA.

Accounting Policies and Estimates

management’s discussion and analysis of our financial condition and results of operations are based on our financial statements,

which have been prepared in accordance with U.S.

generally accepted accounting principles, or “GAAP.” The preparation of

these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities,

disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses

during the reported period.

In accordance with GAAP, we base our estimates on historical experience and on various other assumptions

that we believe are reasonable under the circumstances.

Actual results may differ from these estimates under different assumptions or

significant accounting policies are fully described in Note 2 to our financial statements appearing elsewhere in this Quarterly

Report, and we believe those accounting policies are critical to the process of making significant judgments and estimates in the preparation

of our financial statements.

Cybersecurity

risk management program remains unchanged;

Cybersecurity” in our Annual Report on Form 10-K for a full discussion

of our risk management and governance framework.

date, the COVID-19 pandemic has not had a material impact on the Company, particularly due to our current lack of operations.

may, however, have an impact on our ability to evaluate and acquire an operating entity through a reverse merger or otherwise.

Sheet Arrangements

of Operations

Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024

following table summarizes our results of operations for the three months ended June 30, 2025 and 2024:

months ended June 30,

Cost of revenues

Operating Expenses:

General and administrative

and administrative

Research and development

Sales and marketing

Total Operating Expenses

Net operating income (loss)

Net Operating Loss

Other Income (Expenses):

2 unchanged sentences

Net Other Income (Expenses)

Income (loss) before income taxes

Net income (loss)

$ (1,495,987 )

Revenues and Cost of Revenues

The Company had revenues totaling

$0 and $23,003 during the quarters ended March 31, 2025 and 2024, respectively.

All of the 2024 revenues were from the BUFFALOED CAMA

General and Administrative Expenses

General and administrative expenses for the

three months ended March 31, 2025 were approximately $475,000 compared to approximately $1,502,000 for the three months ended March

31, 2024, a decrease of approximately $1,026,000.

The 2024 period included $1,258,160 of stock option expense compared to $232,995

in the 2025 period, a change of approximately$1,025,000.

Sales and Marketing Expenses

Sales and marketing expenses for the three months

ended March 31, 2025 were approximately $0 compared to approximately $14,000 for the three months ended March 31, 2024, a decrease of approximately

Other Income (Expense)

Interest Income.

Interest income

for the three months ended March 31, 2025 and 2024 was minimal and consisted of interest earned on invested cash balances.

Interest Expense.

Interest expense

for the three months ended March 31, 2025 and 2024 was $12,919 and $3,185, respectively,

and was primarily related to our Economic Injury Disaster Loan (“EIDL ”), commercial line of credit and related party

working capital loans.

Liquidity and Capital Resources

We had an accumulated deficit of approximately

$7.8 million, incurred a net loss of approximately $489,000, and had cash outflows from operations of approximately $155,000 as of and

for the three months ended March 31, 2025.

Further, we expect to continue to incur significant costs in the pursuit of our business plans.

We cannot assure you that our plans to raise capital or to complete our film development and production activities will be successful.

Loss before income taxes

and Cost of Revenues

Company had no revenues during the quarters ended June 30, 2025 and 2024,

and Administrative Expenses

and administrative expenses for the three months ended June 30, 2025 were approximately $750,000 compared to approximately $380,000

for the three months ended June 30, 2024, an increase of approximately $370,000.

The 2025 period included $110,000 of stock-based

compensation expense to a consultant, the write-off of $196,200 of loans receivable that management determined were uncollectible,

and the expiration of rights to a screenplay carried on the books at $150,834.

The 2025 period also included $73,000 of stock option

expense compared to $0 in the 2024 period.

These one-time expenses were offset by lower operational expenses.

and Marketing Expenses

and marketing expenses for the three months ended June 30, 2025 were approximately $1,000 compared to approximately $11,000 for the three

months ended June 30, 2024, a decrease of approximately $10,000.

Income (Expense)

Interest income for the three months ended June 30, 2025 and 2024 was minimal and consisted of interest earned on invested

cash balances.

Interest expense for the three months ended June 30, 2025 and 2024 was $8,897 and $12,820, respectively, and was primarily

related to our Economic Injury Disaster Loan (“EIDL ”), commercial line of credit and related party working capital

and Capital Resources

had an accumulated deficit of approximately $8.5 million, incurred a net loss of approximately $761,000, and had cash outflows from operations

of approximately $90,000 as of and for the three months ended June 30, 2025.

Further, we expect to continue to incur significant costs

in the pursuit of our business plans.

We cannot assure you that our plans to raise capital or to complete our film development and production

activities will be successful.

These factors, among others, raise substantial doubt about our ability to continue as a going concern.

Since our inception, we have incurred

significant operating losses.

We expect to incur significant expenses and operating losses for the foreseeable future as we develop and

produce feature films.

To date, we have funded our operations with proceeds from sales of Common Stock and borrowings from related parties

under promissory notes.

As of March 31, 2025, our cash and cash equivalents were negligible and we were not able to meet our current obligations

as they became due and payable.

Operating Activities

During the three months ended March

31, 2025, operating activities consumed approximately $155,000 of cash.

Accounts payable and accrued expenses increased by approximately

$88,000 during the quarter due to a lack of liquidity to meet current obligations as they became due and payable.

During the three months ended March 31, 2024, operating activities

used approximately $441,000 of cash, including providing a $220,000 of financing to a film production company and payments resulting in

a $42,000 reduction in accounts payable and accrued expenses.

Investing Activities

During the three months ended March

31, 2025 and 2024, investing activities included approximately $0 and $3,000 of costs related to development of the Company’s website.

Financing Activities

During the three months ended March

31, 2025, net cash provided by financing activities was $160,000 which included approximately $174,000 of related party borrowings net

of approximately $15,000 of debt repayments.

During the three months ended March

31, 2025, net cash provided by financing activities was approximately $265,000 which included approximately $250,000 of related party

borrowings and approximately $15,000 of proceeds from the sale of Common Stock.

Other Material Developments and Trends

Ongoing Concerns

We continue to face significant liquidity

challenges and have concluded that substantial doubt exists about our ability to continue as a going concern through the next 12 months.

We plan to address this by seeking additional funding sources like a short-term bridge loan, a medium-term credit-line, and a significant

longer-term financial raise and the Company has reduced operating costs, but there is no assurance we will succeed.

QUANTITATIVE AND QUALITATIVE

DISCLOSURES ABOUT MARKET RISK

There have been no material changes

to our market risk during the first three months of 2025.

For a discussion of our exposure

to market risk, please see Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” of our 2024 Form

our inception, we have incurred significant operating losses.

We expect to incur significant expenses and operating losses for the foreseeable

future as we develop and produce feature films.

To date, we have funded our operations with proceeds from sales of Common Stock and borrowings

from related parties under promissory notes.

As of June 30, 2025, our cash and cash equivalents were negligible and we were not able

to meet our current obligations as they became due and payable.

the three months ended June 30, 2025, operating activities consumed approximately $90,000 of cash.

Accounts payable and accrued expenses

increased by approximately $161,000 during the quarter due to a lack of liquidity to meet current obligations as they became due and

the three months ended June 30, 2024, operating activities used approximately $441,000 of cash, including providing a $220,000 of financing

to a film production company and payments resulting in a $42,000 reduction in accounts payable and accrued expenses.

the three months ended June 30, 2025 and 2024, investing activities included approximately $0 and $19,000 of costs related to development

of the Company’s website.

the three months ended June 30, 2025, net cash provided by financing activities was $86,000 which was comprised of $86,000 of related

party borrowings.

the three months ended June 30, 2024, net cash provided by financing activities was approximately $311,000 which included approximately

$211,000 of related party borrowings and approximately $154,000 of proceeds from the sale of Common Stock.

Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024

following table summarizes our results of operations for the six months ended June 30, 2025 and 2024:

months ended June 30,

Cost of revenues

Operating Expenses:

General and administrative

Research and development

and marketing

Operating Expenses

Net Operating Loss

Other Income (Expenses):

Interest income

Other Income (Expenses)

Loss before income taxes

$ (1,249,465 )

$ (1,900,558 )

and Cost of Revenues

Company had no revenue during the six months ended June 30, 2025.

During the six months ended June 30, 2024, the Company had revenues

totaling $23,000 all of which were from the BUFFALOED CAMA.

and Administrative Expenses

and administrative expenses for the six months ended June 30, 2025 were approximately $1,226,000 compared to approximately $1,882,000

for the six months ended June 30, 2024, a decrease of approximately $656,000.

The 2025 period included $306,000 of stock-based compensation

expense compared to $1,258,000 in the 2024 period.

The 2025 period also included the write-off of $196,200 of loans receivable that management

determined were uncollectible, and the expiration of rights to a screenplay carried on the books at $150,834.

and Marketing Expenses

and marketing expenses for the six months ended June 30, 2025 were approximately $2,000 compared to approximately $25,000 for the six

months ended June 30, 2024, a decrease of approximately $23,000.

Income (Expense)

Interest income for the six months ended June 30, 2025 and 2024 was minimal and consisted of interest earned on invested

cash balances.

Interest expense for the six months ended June 30, 2025 and 2024 was $21,816 and $16,005, respectively, and was primarily

related to our Economic Injury Disaster Loan (“EIDL ”), commercial line of credit and related party working capital

and Capital Resources

had an accumulated deficit of approximately $8.5 million, incurred a net loss of approximately $1,249,000, and had cash outflows from

operations of approximately $245,000 as of and for the six months ended June 30, 2025.

Further, we expect to continue to incur significant

costs in the pursuit of our business plans.

We cannot assure you that our plans to raise capital or to complete our film development

and production activities will be successful.

These factors, among others, raise substantial doubt about our ability to continue as a

going concern.

our inception, we have incurred significant operating losses.

We expect to incur significant expenses and operating losses for the foreseeable

future as we develop and produce feature films.

To date, we have funded our operations with proceeds from sales of Common Stock and borrowings

from related parties under promissory notes.

As of June 30, 2025, our cash and cash equivalents were negligible and we were not able

to meet our current obligations as they became due and payable.

the six months ended June 30, 2025, operating activities consumed approximately $245,000 of cash.

Accounts payable and accrued expenses

increased by approximately $248,000 during the quarter due to a lack of liquidity to meet current obligations as they became due and

the six months ended June 30, 2024, operating activities used approximately $749,000 of cash, including providing a $396,000 of financing

to film production companies.

the six months ended June 30, 2025 and 2024, investing activities included approximately $0 and $22,000 of costs related to development

of the Company’s website.

the six months ended June 30, 2025, net cash provided by financing activities was $86,000 which was comprised of $86,000 of related party

the six months ended June 30, 2024, net cash provided by financing activities was approximately $576,000 including $415,000 of proceeds

from the sale of Common Stock and $407,000 of net working capital financing under a master loan agreement from a related party and a

commercial line of credit.

Material Developments and Trends

continue to face significant liquidity challenges and have concluded that substantial doubt exists about our ability to continue as a

going concern through the next 12 months.

We plan to address this by seeking additional funding sources like a short-term bridge loan,

a medium-term credit-line, and a significant longer-term financial raise and the Company has reduced operating costs, but there is no

assurance we will succeed.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

have been no material changes to our market risk during the first six months of 2025.

For a discussion of our exposure to market risk,

please see Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” of our 2024 Form 10-K.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis