What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-05-12 compared with 2026-02-13 · 100 added, 46 removed, 118 unchanged (55% of the section changed)

95 unchanged sentences

filed with the United States Securities and Exchange Commission.

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

MONTHS ENDED DECEMBER 31, 2024

FOR THE THREE MONTHS ENDED MARCH 31, 2026 COMPARED TO THE THREE

MONTHS ENDED MARCH 31, 2025

Revenues increased 18.60% to $1,133,502 for the three months ended

December 31, 2025 as compared to $967,324 for the three months ended December 31, 2024.

March 31, 2026 as compared to $955,703 for the three months ended March 31, 2025.

The primary reason for the increase was an increase

in revenue from the ReadyOp and Alastar platforms from $880,274 in 2025 to $997,213 in 2026.

There was also an increase in sales of

ReadyOp hardware products from $21,395 in 2024 to $29,500 in 2025.

Consulting fees and related income increased from $94,628 in 2024 to

$218,757 in 2025 due to an increase in consulting activity.

There was also an increase in sales of ReadyOp

hardware products from $11,300 in 2025 to $100,500 in 2026.

Consulting fees and related income decreased from $64,129 in 2025 to $35,789

in 2026 due to a decrease in consulting activity.

Cost of Revenue

Cost of revenues decreased to $174,963 for the three months ended December

31, 2025 as compared to $214,938 for the three months ended December31, 2024.

The primary reason for the decrease was due to a decrease

in expenses associated with trade show attendance and other marketing expenses.

Gross profits were $1,077,576 and $752,386 for the

three months ended December 31, 2025 and 2024, respectively.

Cost of revenues increased 26.13% to $227,861 for the three months

ended March 31, 2026 as compared to $180,651 for the three months ended March 31, 2025.

The primary reason for the increase was due to

an increase in ReadyOp and Alastar platform sales and expenses associated with trade show attendance and other marketing expenses.

profits were $905,641 and $775,052 for the three months ended March 31, 2026 and 2025, respectively.

Operating Expenses

Operating expenses increased 10.70% to $894,787 for the three months

ended December 31, 2025 compared to $808,306 for the three months ended December 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 $113,733 or 15.21% 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, 2025, selling expenses were

$25,927 compared to $53,089 for the three months ended December 31, 2024.

This decrease was primarily due to a decrease in advertising

and off set by a slight increase in travel expenses as the Company and recovery of credit losses associated with bad debt write off.

Operating expenses increased 5.29% to $853,407 for the three

months ended March 31, 2026 compared to $810,525 for the three months ended March 31, 2025.

The increase was primarily due to

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

General and administrative expenses

increased by $49,053 or 6.67% 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

For the three months ended March 31, 2026, selling expenses were $60,782

compared to $64,901 for the three months ended March 31, 2025, a decrease of 6.35%.

This decrease was primarily due to a decrease

in advertising expense, travel expenses and offset by a recovery of credit losses.

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

ended December 31, 2025, as compared to $2,000 for the three months ended December 31, 2024.

There was no change in research and development

ended March 31, 2026, as compared to $4,000 for the three months ended March 31, 2025, a decrease of 50%.

This decrease was primarily

due to timing of research and development expenses.

Other Income/(Expenses)

The Company's other income increased by $4,156 from other income of

$6,795 during the three months ended December 31, 2024 as compared to $12,017 in other income for the three months ended December 31,

This increase was due to an increase in interest income on treasury bill investments of $9,084 for the three months ended December

$7,381 during the three months ended March 31, 2025 as compared to $11,537 in other income for the three months ended March 31, 2026,

an increase of 56.31%.

This increase was due to an increase in interest income on treasury bill investments of $4,123 for the three months

ended March 31, 2026.

Income (Loss) before Income Taxes

The Company’s income before income taxes was $63,771, during

the three months ended December 31, 2025, as compared to loss of $49,125 income before income taxes for the three months ended December

the three months ended March 31, 2026, as compared to loss of $28,092 income before income taxes for the three months ended March, 2025

due to the increase in revenue that was partially offset by the increase in the Company’s operating expenses.

1 unchanged sentence

Net income attributable to common stockholders was $53,652 for the

three months ended December 31, 2025 as compared to a net loss of $59,468 for the three months ended December 31, 2024.

The increase was

primarily due to an increase in revenue which was partially offset by an increase in operating expenses.

The increased costs were partially

due to addition of new employees associated with Alastar .

three months ended March 31, 2026 as compared to a net loss of $38,210 for the three months ended March 31, 2025.

The increase was primarily

due to an increase in revenue which was partially offset by an increase in operating expenses.

The increased costs were partially due

to addition of new employees associated with Alastar .

The preferred stock dividends remained consistent.

FOR THE SIX MONTHS ENDED MARCH 31, 2026 COMPARED TO THE SIX MONTHS

ENDED MARCH 31, 2025

Revenues increased 24.08% to $2,386,041 for the six months ended March

31, 2026 as compared to $1,923,027 for the six months ended March 31, 2025.

The primary reason for the increase was an increase in revenue

from the ReadyOp and Alastar platforms from $1,731,576 in 2025 to $2,001,495 in 2026.

There was also an increase in sales of ReadyOp hardware

products from $32,695 in 2025 to $130,000 in 2026.

Consulting fees and related income increased from $158,581 in 2025 to $254,546 in 2026

due to an increase in consulting activity.

Cost of Revenue

Cost of revenues increased 1.83% to $402,824 for the six months ended

March 31, 2026 as compared to $395,589 for the six months ended March 31, 2025.

The primary reason for the increase was due to an increase

in ReadyOp and Alastar platform sales and expenses associated with trade show attendance and other marketing expenses.

Gross profits

were $1,983,217 and $1,527,438 for the six months ended March 31, 2026 and 2025, respectively.

Operating Expenses

Operating expenses increased 7.99% to $1,748,194 for the six months

ended March 31, 2026 compared to $1,618,831 for the six months ended March 31, 2025.

The increase was primarily due to administrative

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

General and administrative expenses increased by $162,786

or 10.97% 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, 2026, selling expenses were $86,709

compared to $117,990 for the six months ended March 31, 2025, a decrease of 26.51%.

This decrease was primarily due to a decrease

in advertising expense, travel expenses and offset by a recovery of credit losses.

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

March 31, 2026, as compared to $6,000 for the six months ended March 31, 2025, a decrease of 33.33%.

This increase was primarily due to

timing of research and development expenses.

Other Income/(Expenses)

The Company's other income increased by $9,378 from other income of

$14,176 during the six months ended March 31, 2025 as compared to $23,554 in other income for the six months ended March 31, 2026, an

increase of 66.15%.

This increase was due to an increase in interest income on treasury bill investments of $7,279 for the six months

ended March 31, 2026.

Income (Loss) before Income Taxes

The Company’s income before income taxes was $258,577, during

the six months ended March 31, 2026, as compared to loss of $77,217 income before income taxes for the six months ended March, 2025 due

to the increase in revenue that was partially offset by the increase in the Company’s operating expenses.

Net Income (Loss) Income Attributable to Common Stockholders

Net income attributable to common stockholders was $238,115 for the

six months ended March 31, 2026 as compared to a net loss of $97,678 for the six months ended March 31, 2025.

The increase was primarily

due to an increase in revenue which was partially offset by an increase in operating expenses.

The increased costs were partially due

to addition of new employees associated with Alastar .

The preferred stock dividends remained consistent.

LIQUIDITY AND CAPITAL RESOURCES

For the three months ended December 31, 2025, net cash provided in

operations of $147,634 was the result of a net income of $194,806, depreciation and amortization expense of $5,393, an increase of accounts

receivable of $86,849.

These were offset by a decrease in accounts payable of $43,900, a recovery of credit losses of $27,828, a decrease

in deferred revenue of $45,489, a decrease in inventory of $2,152 and an increase in prepaid expenses of $24,349.

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

For the six months ended March 31, 2026, net cash used in operations

of $55,927 was the result of a net income of $258,577, depreciation and amortization expense of $11,065, a recovery of credit losses of

$20,952, an increase of accounts receivable of $11,602, a decrease in prepaid expenses of $7,059 and an increase in inventory of $26,105.

These were offset by an increase in accounts payable of $21,993 and a decrease in deferred revenue of $348,172.

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.

Net cash used in investing activities was $1,613 and $0 for the three

months ended December 31, 2025 and 2024, respectively, which was for the purchase of fixed 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.

Net cash used in investing activities was $8,617 and $0 for the six

months ended March 31, 2026 and 2025, respectively, which was for the purchase of fixed 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