What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-02-25 compared with 2025-08-19 · 60 added, 111 removed, 241 unchanged (42% of the section changed)

39 unchanged sentences

For the three months

ended June 30 , 2025, compared to the three months ended June

ended December 31, 2025, compared to the three months ended December 31, 2024

Our operating results for

the three months ended June 30 , 2025 and 2024 are summarized as follows:

the three months ended December 31, 2025 and 2024 are summarized as follows:

Three months ended

3 unchanged sentences

Operating loss

Other expense

Net loss before income taxes

$ (3,472,467 )

Other (income) / expense

Net income (loss) before income taxes

Income tax expense

$ (3,991,314 )

$ (3,472,467 )

Net income (loss)

Revenues for the three months

ended June 30 , 2025, increased $99,341 from $106,871 for the period ending June 30, 2024,

to $206,212 for the period ending June 30, 2025.

This was due to a $99,341 increase in rental revenue and insurance revenue as a result

of more vehicles available to rent.

We anticipate that, in 2025

automotive supply and demand will see a continuing return to more historically normal levels which should translate into greater vehicle

availability for vehicles on our platform, leading to a further increase in revenues.

Cost of revenue for the three months ended June 30,

2025, increased $141,409, from $63,043 for the period ending June 30, 2024, to $204,452 for the period ending June 30, 2025.

was partially due to an increase in depreciation expense charged to cost of revenue.

Depreciation expense increased by $82,937, from $24,430

for the period ending June 30, 2024, to $107,367 for the period ending June 30, 2025.

Operating expenses for the three months ended June 30, 2025, increased $196,386 as

compared to the three months ended June 30, 2024.

The increase was primarily attributable to increases in general and administrative of

$108,016, professional fees of $64,098, and software development of $41,760, and stock compensation of $29,587, and offset by decreases

in advertising and marketing expenses of $1,500, and salaries and payroll taxes of $45,575.

Loss from operations was $333,469 for the three months ended June 30, 2025,

as compared to $95,015 for the three months ended June 30, 2024.

The increase of $238,454 was due to higher operating expenses and lower

gross profit.

Other expense for the three

months ended June 30, 2025, was $3,657,845, as compared to other expense of $423,832 for the three months ended June 30, 2024.

of $3,123,013 is primarily attributable to the change in fair value of the derivative liability of $3,580,408 reduced by decreases in

interest expense of $254,373, and amortization of debt discount of $80,785.

For the nine months

ended June 30 , 2025, compared to the nine months ended June

Our operating results for

the nine months ended June 30 , 2025 and 2024 are summarized as follows:

Nine months ended

Cost of revenue

Gross Profit Percentage

Operating expense

Operating loss

Other expense

Net loss before income taxes

$ (1,710,105 )

$ (2,272,704 )

Income tax expense

$ (3,982,809 )

$ (1,710,105 )

$ (2,272,704 )

Revenues for the nine months

ended June 30, 2025, increased $362,613 from $296,595 for the period ending June 30, 2024, to $659,208 for the period ending June 30,

ended December 31, 2025, increased $40,296 from $241,946 for the period ending December 31, 2024, to $282,242 for the period ending December

This was due to a $40,296 increase in rental revenue and insurance revenue as a result of more vehicles available to rent.

2 unchanged sentences

availability for vehicles on our platform, leading to a further increase in revenues.

Cost of revenue for the nine months ended June 30,

2025, increased $256,584, from $228,225 for the period ending June 30, 2024, to $484,809 for the period ending June 30, 2025.

the increase in cost of revenue was due to an increase in depreciation expense.

Depreciation expense increased by $82,937, from $24,430

for the period ending June 30, 2024, to $107,367 for the period ending June 30, 2025.

Operating expenses for the nine months ended June 30, 2025, increased $419,851 as

compared to the nine months ended June 30, 2024.

The increase was primarily attributable to increases in salaries and payroll taxes of

$16,800, professional fees of $72,235, general and administrative of $257,472, software development of $48,045, and stock compensation

of $29,587, offset by a decrease in advertising and marketing expenses of $4,288.

Loss from operations was $691,337 for the nine months ended June 30, 2025, as

compared to $377,515 for the nine months ended June 30, 2024.

The increase of $313,822 was due to higher operating expenses.

Other expense for the nine

months ended June 30, 2025, was $3,291,472, as compared to net other expense of $1,332,590 for the nine months ended June 30, 2024.

change of $1,958,882 is primarily attributable to the change in fair value of derivative liabilities of $2,159,008 offset by decrease

in amortization of debt discount of $164,356 and interest expense of $195,761.

Cost of revenue for the three months ended December

31, 2025, increased $55,093, from $143,255 for the period ending December 31, 2024, to $198,348 for the period ending December 31, 2025.

Operating expenses for the

three months ended December 31, 2025, decreased $132 as compared to the three months ended December 31, 2024.

The decrease was primarily

attributable to decreases in salaries and payroll taxes of $10,996, general and administrative of $26,006, software development of $15,615,

and, offset by increases in stock compensation expense of $40,625 and professional fees of $11,860.

Loss from operations was

$140,277 for the three months ended December 31, 2025, as compared to $125,612 for the three months ended December 31, 2024.

of $14,665 was due to lower gross profit.

Other income for the three

months ended December 31, 2025, was $689,145, as compared to net other expense of $582,075 for the three months ended December 31, 2024.

The change of $92,405 is primarily attributable to the change in fair value of derivative liabilities of $67,792.

Liquidity and Capital Resources:

The following table provides selected financial data about our Company

as of June 30, 2025, and September 30, 2024.

as of December 31, 2025, and September 30, 2025.

Working Capital

5 unchanged sentences

$ (8,988,113 )

$ (4,262,638 )

As of June 30, 2025, our

working capital deficiency increased $4,206,091 as compared to September 30, 2024.

This was primarily attributable to a $4,193,425 increase

in in current liabilities.

As of December 31, 2025, our working capital deficiency decreased $1,018,169

as compared to September 30, 2025.

This was primarily attributable to a $1,007,204 decrease in current liabilities.

Cash Flow Data:

provided by (used in) operating activities

provided by (used in) investing activities

provided by (used in) financing activities

Change in Cash and Restricted Cash

Three months ended

Cash provided by (used in) operating activities

Cash provided by (used in) investing activities

Cash provided by (used in) financing activities

Net Change in Cash and Restricted Cash

Cash Flows from Operating

During the nine months ended June 30, 2025, we did not generate positive cash

flows from operating activities.

For the nine months ended June 30, 2025, net cash flows used in operating activities was $(260,973),

consisting of a net loss of $3,982,809, a loss on change in fair value of derivative liability of $2,504,840, amortization debt discount

of $125,172, amortization of deferred financing costs of $203,464, depreciation and amortization of $111,440, and a change in operating

assets and liabilities of $747,333.

During the nine months ended

June 30, 2024, we did not generate positive cash flows from operating activities.

For the nine months ended June 30, 2024, net cash flows

used in operating activities was $830,047, consisting of a net loss of $1,710,105, a loss on change in fair value of derivative liability

of $345,832, and decreased by amortization debt discount of $289,528, depreciation and amortization of $28,486, financing fee of $43,456

and a change in operating assets and liabilities of $176,030.

During the three months ended December 31, 2025, we did not generate positive

cash flows from operating activities.

For the three months ended December 31, 2025, net cash flows used in operating activities was $176,881,

consisting of a net income of $548,868, a gain on change in fair value of derivative liability of $981,354, loss on sale of fixed assets

of $19,447, and increased by amortization debt discount of $109,782, stock compensation expense of $40,625, amortization of deferred financing

costs of $11,811, depreciation and amortization of $28,102, and an increase in operating assets and liabilities of $45,905.

During the three months ended

December 31, 2024, we did not generate positive cash flows from operating activities.

For the three months ended December 31, 2024, net

cash flows used in operating activities was $55,686, consisting of a net income of $456,463, a gain on change in fair value of derivative

liability of $913,562, and increased by amortization debt discount of $59,378, amortization of deferred financing costs of $137,580, depreciation

and amortization of $37,554, and a change in operating assets and liabilities of $166,901.

Cash Flows from Investing

During the nine months ended

June 30, 2025, the Company used $137,290 cash from investing activities to purchase vehicles for its rental fleet.

During the nine months ended

June 30, 2024, the Company used $94,837 cash from investing activities to purchase vehicles for its rental fleet.

During the three months ended December 31, 2025, the Company generated $99,680

in cash from investing activities from the sale of vehicles from its rental fleet.

During the three months ended

December 31, 2024, the Company used $137,289 cash from investing activities to purchase vehicles for its rental fleet.

Cash Flows from Financing

During the nine months ended

June 30, 2025, the Company generated $383,067 from financing activities including proceeds of $1,300 from related party advances, $268,812

from the issuance of promissory notes, $225,321 from the issuance of convertible promissory notes, proceeds from the sale of warrants

of $50,000, and proceeds from the sale of common stock of $5,000 which was partially offset by $167,366 for repayment of promissory notes.

During the nine months ended

June 30, 2024, the Company generated $905,115 from financing activities including proceeds of $941,675 from the issuance of convertible

promissory notes and promissory notes and related debt discounts, and proceeds from the sale of common stock of $15,000 which was partially

offset by $51,560 for repayment of promissory notes.

During the three months ended December 31, 2025, the Company generated $126,944

from financing activities including proceeds from the sale of warrants of $240,000, proceeds from convertible notes payable of $24,000,

which was partially offset by $137,056 for repayment of promissory notes.

During the three months ended

December 31, 2024, the Company generated $228,745 from financing activities including proceeds of $450 from related party advances, $180,117

from the issuance of promissory notes, $57,458 from the issuance of convertible promissory notes, proceeds from the sale of warrants of

$50,000, and proceeds from the sale of common stock of $5,000 which was partially offset by $64,280 for repayment of promissory notes.

Going Concern

As of June 30, 2025, the Company had a net loss of $3,982,809, accumulated

As of December 31, 2025, the Company had a net income of $548,868, accumulated

deficit of $9,912,751 and did not have sufficient cash on hand to cover expenses for the next twelve (12) months.

33 unchanged sentences

would procure financing if the Company determined they wanted to sell the vehicle at the listed purchase price.

During the periods ended June 30, 2025 and 2024, the

Company derived its revenue from signed contracts for vehicle rentals between the Company, other leasing companies, or car dealerships

During the periods ended December 31, 2025 and 2024,

the Company derived its revenue from signed contracts for vehicle rentals between the Company, other leasing companies, or car dealerships

and individual car rental customers (“customers”).

55 unchanged sentences

date and relate to usages after that date.

As of June 30, 2025 and September 30, 2024 refundable deposits were $0 and $1,339 and deferred

revenue was $10,785 and $3,306, respectively.

As of December 31, 2025 and September 30, 2025 refundable deposits were $0 and deferred revenue

was $15,912 and $15,740, respectively.

In addition to the costs associated with rental revenue

46 unchanged sentences

of the fair value of the assets or liabilities.

The carrying amounts shown of the Company’s financial instruments including cash,

accounts receivable, prepaid expense, accounts payable, and accrued liabilities are approximate fair value due to their short-term nature.

amounts shown of the Company’s financial instruments including cash, accounts receivable, prepaid expense, accounts payable,

and accrued liabilities are approximate fair value due to their short-term nature.

All financial assets and liabilities are approximate to their fair value.

Derivative liabilities are valued at Level 3.

Fair Value Measurements as of June 30, 2025 using:

June 30, 2025

Fair Value Measurements as of December 31, 2025 using:

December 31, 2025

Quoted Prices in Active Markets for Identical Assets (Level 1)

32 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