What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-05-14 compared with 2025-04-10 · 95 added, 46 removed, 81 unchanged (64% of the section changed)

56 unchanged sentences

ReadyOp Communications subsidiary in conjunction with the current ReadyOp and ReadyMed activities.

FOR THE THREE MONTHS ENDED DECEMBER 31, 2024 COMPARED TO THE THREE

MONTHS ENDED DECEMBER 31, 2023

Revenues increased 59.61% to $967,324 for the three months ended December

31, 2024 as compared to $606,047 for the three months ended December 31, 2023.

The primary reason for the increase was an increase in

revenue from the ReadyOp platform and the addition of the Alastar platform from $589,547 in 2023 to $851,476 in 2024.

There was also an

increase in sales of ReadyOp hardware products from $16,500 in 2023 to $21,395 in 2024.

Consulting fees and related income increased from

$0 in 2023 to $94,453 in 2024 due to an increase in consulting activity.

FOR THE THREE MONTHS ENDED MARCH 31, 2025 COMPARED TO THE THREE

MONTHS ENDED MARCH 31, 2024

Revenues increased 67.08% to $955,703 for the three months ended March

31, 2025 as compared to $572,013 for the three months ended March 31, 2024.

The primary reason for the increase was an increase in revenue

from the ReadyOp platform and the addition of the Alastar platform from $550,418 in 2024 to $880,275 in 2025.

There was a decrease

in sales of ReadyOp hardware products from $21.595 in 2024 to $11.300 in 2024.

Consulting fees and related income increased from $0 in

2024 to $64,129 in 2025 due to an increase in consulting activity.

Cost of Revenue

Cost of revenues increased to $214,938 for the three months ended December

31, 2024 as compared to $118,895 for the three months ended December31, 2023.

Gross profits were $752,386 and $487,152 for the three months

ended December 31, 2024 and 2023, respectively.

Cost of revenues increased 1.71% to $180,651 for the three months ended

March 31, 2025 as compared to $177,616 for the three months ended March 31, 2024.

Gross profits were $775,052 and $394,397 for the three

months ended March 31, 2025 and 2024, respectively.

The primary reason for the increase was due to an increase in ReadyOp and Alastar

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Operating expenses increased 111.33% to $810,525 for the three months

ended December 31, 2024 compared to $517,885 for the three months ended December 31, 2023.

ended March 31, 2025 compared to $383,537 for the three months ended March 31, 2024.

The increase was primarily due to administrative

expenses, with a slight offset in research and development expenses, and selling expenses.

General and administrative expenses increased

by $341,736 or 84.17% as a result of the increase in general business expenses, an increase in headcount and personnel related costs associated

with the addition of new employees.

expenses, research and development expenses, and selling expenses.

General and administrative expenses increased by $375,924 or 104.43%

as a result of the increase in general business expenses, an increase in headcount and personnel related costs associated with the addition

of new employees.

There were also charitable contributions paid during the three months.

For the three months ended December 31, 2024, selling expenses were

$53,089 compared to $96,971 for the three months ended December 31, 2023.

This decrease was primarily due to a decrease in advertising

and travel expenses as the Company.

For the three months ended March 31, 2025, selling expenses were $64,901

compared to $17,914 for the three months ended March 31, 2024.

This increase was primarily due to a increase in travel expenses as

Research and development expenses were $4,000 for the three months

ended December 31, 2024, as compared to $13,559 for the three months ended December 31, 2023.

This decrease was primarily due to research

and development expenses.

Other Income/(Expenses)

The Company's other income decreased by $41,605 from other income of

$6,795 during the three months ended December 31, 2024 as compared to $48,400 in other income for the three months ended December 31,

This decrease was due to a decrease in extinguishment of liabilities of $44,052 for the three months ended December 31, 2023 and

an increase in interest income on treasury bill investments of $2,447for the year ended December 31, 2024.

ended March 31, 2025, as compared to $3,044 for the three months ended March 31, 2024.

This increase was primarily due to research and

development expenses.

The Company's other income decreased 21.11% to $7,381 for the three

months ended March 31, 2025 as compared to $9,356 in other income for the three months ended March 31, 2024.

This decrease was due to

a decrease in interest income on treasury bill investments.

(Loss) Income before Income Taxes

The Company’s loss before income taxes was $28,092, during the

three months ended December 31, 2024, as compared to income of $17,667 income before income taxes for the three months ended December

The increased costs were partially offset by an increase in subscriptions of ReadyOp licenses.

three months ended March 31, 2025, as compared to income of $20,216 before income taxes for the three months ended March 31, 2024.

increased costs were partially offset by an increase in subscriptions of ReadyOp licenses.

Net (Loss) Income Attributable to Common Stockholders

Net loss attributable to common stockholders was $38,210 for the three

months ended December 31, 2024 as compared to a net income of $7,324 for the three months ended December 31, 2023.

months ended March 31, 2025 as compared to a net income of $9,985 for the three months ended March 31, 2024.

The decrease was primarily

due to an increase in administrative expenses and offset by an increase in sales of ReadyOp licenses.

The increased costs were partially

due to addition of new employees associated with Alastar and costs associated FedRAMP certification.

The preferred stock dividends remained

FOR THE SIX MONTHS ENDED MARCH 31, 2025 COMPARED TO THE SIX MONTHS

ENDED MARCH 31, 2024

Revenues increased 63.24% to $1,923,027 for the six months ended March

31, 2025 as compared to $1,178,060 for the six months ended March 31, 2024.

The primary reason for the increase was an increase in revenue

from the ReadyOp platform and the addition of the Alastar platform from $1,139,965 in 2024 to $1,731,751 in 2025.

There was a decrease

in sales of ReadyOp hardware products from $38,095 in 2024 to $32,695 in 2024.

Consulting fees and related income increased from $0 in

2024 to $158,581 in 2025 due to an increase in consulting activity.

Cost of Revenue

Cost of revenues increased 44.77% to $395,589 for the six months ended

March 31, 2025 as compared to $273,247 for the six months ended March 31, 2024.

Gross profits were $1,527,438 and $904,813 for the six

months ended March 31, 2025 and 2024, respectively.

The primary reason for the increase was due to an increase in ReadyOp and Alastar

platform sales and consulting activity.

Operating Expenses

Operating expenses increased 75.28% to $1,618,831 for the six months

ended March 31, 2025 compared to $923,575 for the six months ended March 31, 2024.

The increase was primarily due to administrative expenses

with a slight offset decrease in research and development expenses, and selling expenses.

General and administrative expenses increased

by $717,660 or 93.69% as a result of the increase in general business expenses, an increase in headcount and personnel related costs associated

with the addition of new employees.

There were also charitable contributions paid during the six months.

For the six months ended March 31, 2025, selling expenses were $117,990

compared to $138,149 for the six months ended March 31, 2024.

This decrease was primarily due to a increase in travel expenses as

Research and development expenses were $6,000 for the six months ended

March 31, 2025, as compared to $16,603 for the six months ended March 31, 2024.

This increase was primarily due to research and development

The Company's other income decreased 74.97% to $14,176 for the six

months ended March 31, 2025 as compared to $56,645 in other income for the six months ended March 31, 2024.

This decrease was due

to a decrease in extinguishment of liabilities of $42,941 for the six months ended March 31, 2024 and an increase in interest income on

treasury bill investments of $10,601 for the six months ended March 31, 2025.

(Loss)Income before Income Taxes

The Company’s loss before income taxes was $77,217, during the

six months ended March 31, 2025, as compared to income of $37,883 before income taxes for the six months ended March 31, 2024.

The increased

costs were partially offset by an increase in subscriptions of ReadyOp licenses.

Net (Loss) Income Attributable to Common Stockholders

Net loss attributable to common stockholders was $97,678 for the six

months ended March 31, 2025 as compared to a net income of $17,309 for the six months ended March 31, 2024.

The decrease was primarily

due to an increase in administrative expenses and offset by an increase in sales of ReadyOp licenses The increased costs were partially

2 unchanged sentences

LIQUIDITY AND CAPITAL RESOURCES

For the three months ended December 31, 2024, net cash used in operations

For the six months ended March 31, 2025, net cash used in operations

of $124,945 was the result of a net loss of $77,217, depreciation and amortization expense of $11,205, amortization of operating lease

of $5,983, an increase of accounts receivable of $70,019.

These were offset by a decrease in accounts payable of $23,394, a decrease in

deferred revenue of $39,341, a decrease in inventory of $5,890 and a decrease in prepaid expenses of $6,315.

For the three months ended December 31, 2023, net cash provided by

operations of $378,588 was the result of a net income of $17,667, depreciation expense of $1,357, amortization of operating lease of $5,982,

extinguishment of liabilities of $44,052, increase in provision for credit losses of $29,000, increase in prepaid expenses of $17,756,

and an increase in accounts payable of $7,731.

These were offset by a decrease in accounts receivable of $40,008, a decrease in inventory

of $5,733 and an increase in deferred revenue of $350,204.

Net cash used in investing activities was $0 and $77,018 for the three

months ended December 31, 2024 and 2023, respectively, which was for the purchase of intangible assets.

of $5,983, an increase of accounts receivable of $102,503, and an increase in accounts payable of $68,895.

These were offset by a decrease

in inventory of $6,611, decrease in deferred revenue of $36,396, a decrease in prepaid expenses of $4,983 and a decrease in operating

lease liability of $6,506.

For the six months ended March 31, 2024, net cash provided by operations

of $290,255 was the result of a net income of $38,994, depreciation expense of $2,847, amortization of operating lease of $11,965, extinguishment

of liabilities of $44,052, increase in provision for credit losses of $15,000, increase in prepaid expenses of $28,582, an increase in

accounts receivable of $80,976, an increase in inventory of $9,260 .

These were offset by a decrease in accounts payable of $47,430, an

increase in deferred revenue of $399,646 and a decrease in operating lease liability of $11,949.

Net cash used in investing activities was $4,768 and $133,621 for the

six months ended March 31, 2025 and 2024, respectively, which was for the purchase of fixed and intangible assets.

Critical Accounting Estimates

5 unchanged sentences

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