What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-07-30 compared with 2025-05-14 · 63 added, 65 removed, 111 unchanged (54% of the section changed)

56 unchanged sentences

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

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.

FOR THE THREE MONTHS ENDED JUNE 30, 2025 COMPARED TO THE THREE MONTHS

ENDED JUNE 30, 2024

Revenues increased 7.31% to $1,078,530 for the three months ended June

30, 2025 as compared to $1,005,050 for the three months ended June 30, 2024.

The primary reason for the increase was an increase in revenue

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Cost of Revenue

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

platform sales and consulting activity.

Cost of revenues decreased 17.58% to $263,509 for the three months

ended June 30, 2025 as compared to $319,728 for the three months ended June 30, 2024.

Gross profits were $815,021 and $685,322 for the

three months ended June 30, 2025 and 2024, respectively.

The primary reason for the decrease was due a decrease in hardware product

sales and associated decrease in related costs for the three months ended June 30, 2025.

Operating Expenses

Operating expenses increased 44.20% to $874,887 for the three months

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

The increase was primarily due to administrative

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 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

ended June 30, 2025 compared to $606,721 for the three months ended June 30, 2024.

The increase was primarily due to administrative expenses

and selling expenses.

General and administrative expenses increased by $259,118 or 49.59% 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.

For the three months ended June 30, 2025, selling expenses were $85,840

compared to $79,913 for the three months ended June 30, 2024.

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

Research and development expenses were $2,000 for the three months

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.

ended June 30, 2025 and 2024.

There was no change in research and development expenses.

The Company's other income increased 43.95% to $9,004 for the three

months ended June 30, 2025 as compared to $6,255 in other income for the three months ended June 30, 2024.

This increase was due to an

increase in interest income on treasury bill investments.

(Loss) Income before Income Taxes

The Company’s loss before income taxes was $50,862, during the

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.

three months ended June 30, 2025, as compared to income of $84,856 before income taxes for the three months ended June 30, 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 $61,093 for the three

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

months ended June 30, 2025 as compared to a net income of $74,625 for the three months ended June 30, 2024.

The decrease was primarily

3 unchanged sentences

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.

FOR THE NINE MONTHS ENDED JUNE 30, 2025 COMPARED TO THE NINE MONTHS

ENDED JUNE 30, 2024

Revenues increased 37.49% to $3,001,557 for the nine months ended June

30, 2025 as compared to $2,183,110 for the nine months ended June 30, 2024.

The primary reason for the increase was an increase in revenue

5 unchanged sentences

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.

Cost of revenues increased 11.15% to $659,098 for the nine months ended

June 30, 2025 as compared to $592,975 for the nine months ended June 30, 2024.

Gross profits were $2,342,459 and $1,590,135 for the nine

months ended June 30, 2025 and 2024, respectively.

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

1 unchanged sentence

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.

Operating expenses increased 53.12% to $2,493,718 for the nine months

ended June 30, 2025 compared to $1,628,603 for the nine months ended June 30, 2024.

The increase was primarily due to administrative expenses

3 unchanged sentences

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.

There were also charitable contributions paid during the nine months.

For the nine months ended June 30, 2025, selling expenses were $203,830

compared to $218,062 for the nine months ended June 30, 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.

Research and development expenses were $8,000 for the nine months ended

June 30, 2025, as compared to $18,603 for the nine months ended June 30, 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.

The Company's other income decreased 63.15% to $23,180 for the nine

months ended June 30, 2025 as compared to $62,900 in other income for the nine months ended June 30, 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.

to a decrease in extinguishment of liabilities of $42,941 for the nine months ended June 30, 2024 and an increase in interest income on

treasury bill investments of $3,221 for the nine months ended June 30, 2025.

(Loss) Income before Income Taxes

The Company’s loss before income taxes was $128,079, 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.

nine months ended June 30, 2025, as compared to income of $24,432 before income taxes for the nine months ended June 30, 2024.

The increased

1 unchanged sentence

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

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

Net loss attributable to common stockholders was $158,771 for the nine

months ended June 30, 2025 as compared to a net loss of $6,373 for the nine months ended June 30, 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

LIQUIDITY AND CAPITAL RESOURCES

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

For the nine months ended June 30, 2025, net cash used in operations

of $68,313 was the result of a net loss of $128,079, depreciation and amortization expense of $16,619, amortization of operating lease

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

of $5,983, increase in provision of credit losses of $20,500, a loss on sale of fixed assets of $483, an increase in prepaid expenses

of $65,988 and an increase in accounts payable of $16,463 and an increase in deferred revenue of $12,975.

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 accounts receivable of $47,808, a decrease in inventory of $11,429, and a decrease in operating lease liability of $6,506.

For the nine months ended June 30, 2024, net cash provided by operations

of $398,421 was the result of a net income of $24,432, depreciation expense of $5,140, amortization of operating lease of $17,948, 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.

of liabilities of $42,941, increase in provision for credit losses of $9,000, increase in prepaid expenses of $5,137, a decrease in accounts

receivable of $129,880, an increase in inventory of $107,997 .

These were offset by an increase in accounts payable of $84,300 and an

increase in deferred revenue of $301,988.

Net cash used in investing activities was $4,768 and $126,185 for the

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

nine months ended June 30, 2025 and 2024, respectively, which was for the purchase of fixed and intangible assets.

Critical Accounting Estimates

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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