What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-10-14 compared with 2025-07-15 · 534 added, 316 removed, 512 unchanged (62% of the section changed)

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Cautionary Note Regarding Forward-Looking Statements

The following management’s discussion

and analysis of the Company’s financial condition and results of operations (the “MD&A”) contains forward-looking

statements that involve risks, uncertainties and assumptions including, among others, statements regarding our capital needs, business

plans and expectations.

The following management’s discussion and

analysis of the Company’s financial condition and results of operations (the “MD&A”) contains forward-looking statements

that involve risks, uncertainties and assumptions including, among others, statements regarding our capital needs, business plans and

expectations.

In evaluating these statements, you should consider various factors, including the risks, uncertainties and assumptions

set forth in reports and other documents we have filed with or furnished to the SEC and, including, without limitation, this Quarterly

Report on Form 10-Q for the three months ended May 31, 2025, and our Annual Report on Form 10-K for the fiscal year ended February 28,

Report on Form 10-Q for the six months ended August 31, 2025, and our Annual Report on Form 10-K for the fiscal year ended February 28,

2025, including the consolidated financial statements and related notes contained therein.

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2025, and Item 1A - Risk Factors, under Part II - Other Information of this Quarterly Report.

This MD&A is focused on material changes in

our financial condition from February 28, 2025, our most recently completed year end, to May 31, 2025, and our results of operations for

the three months ended May 31, 2025, and should be read in conjunction with Item 7, Management’s Discussion and Analysis of Financial

This MD&A is focused on material changes in our

financial condition from February 28, 2025, our most recently completed year end, to August 31, 2025, and our results of operations for

the six months ended August 31, 2025, and should be read in conjunction with Item 7, Management’s Discussion and Analysis of Financial

Condition and Results of Operations as contained in our Annual Report on Form 10-K for the fiscal year ended February 28, 2025.

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The following diagram depicts our corporate structure:

Our holding company structure presents unique

risks as our investors may never directly hold equity interests in our subsidiaries or the VIE, and we will be dependent upon contributions

Our holding company structure presents unique risks

as our investors may never directly hold equity interests in our subsidiaries or the VIE, and we will be dependent upon contributions

from our subsidiaries and the VIE to finance our cash flow needs.

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or other foreign exchange.

To operate, the VIE and Beijing XunLian TianXia

Technology Co., Ltd.

are required to obtain, and have obtained, a value-added telecommunications business licence from PRC authorities.

In connection with our previous issuance of securities to foreign investors, under current PRC laws, regulations and regulatory rules,

as of the date of this periodic report on Form 10-Q, we, our PRC subsidiaries and the VIE, (i) are not required to obtain permissions

from the CSRC except that as of March 31, 2023 we may have to file with the CSRC with respect to a new offering of our securities, (ii)

are not required to go through cybersecurity review by the CAC, and (iii) have received or were not denied such requisite permissions

by any PRC authority.

If we, our subsidiaries or the VIE (i) do not receive or maintain such permissions or approvals, (ii) inadvertently

conclude that such permissions or approvals are not required or (iii) applicable laws, regulations, or interpretations change and we are

required to obtain such permissions or approvals in the future, we may be subject to government enforcement actions, investigations, penalties,

sanctions and fines imposed by the CSRC, the CAC and relevant departments of the State Council.

In severe circumstances, the business

of our PRC subsidiary may be ordered to suspend and its business qualifications and licenses may be revoked.

To operate, the VIE and Beijing XunLian TianXia Technology

are required to obtain, and have obtained, a value-added telecommunications business license from PRC authorities.

In connection

with our previous issuance of securities to foreign investors, under current PRC laws, regulations and regulatory rules, as of the date

of this periodic report on Form 10-Q, we, our PRC subsidiaries and the VIE, (i) are not required to obtain permissions from the CSRC except

that as of March 31, 2023 we may have to file with the CSRC with respect to a new offering of our securities, (ii) are not required to

go through cybersecurity review by the CAC, and (iii) have received or were not denied such requisite permissions by any PRC authority.

If we, our subsidiaries or the VIE (i) do not receive or maintain such permissions or approvals, (ii) inadvertently conclude that such

permissions or approvals are not required or (iii) applicable laws, regulations, or interpretations change and we are required to obtain

such permissions or approvals in the future, we may be subject to government enforcement actions, investigations, penalties, sanctions

and fines imposed by the CSRC, the CAC and relevant departments of the State Council.

In severe circumstances, the business of our PRC

subsidiary may be ordered to suspend and its business qualifications and licenses may be revoked.

Share Exchange Agreement

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of closing the Share Exchange Agreement.

As a result of the Share Exchange Agreement and

the other transactions contemplated thereunder, FMCL became a wholly-owned subsidiary of the Company.

As a result of the Share Exchange Agreement and the

other transactions contemplated thereunder, FMCL became a wholly-owned subsidiary of the Company.

At that time, FMCL continued operations

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it saw the opportunity in the telecommunication business and have since refocused into this business.

This description of the Share Exchange Agreement

does not purport to be complete and is qualified in its entirety by reference to the terms of the Share Exchange Agreement, which was

filed as an exhibit to our Current Report on Form 8-K filed with the SEC on July 20, 2017 and incorporated by reference herein.

This description of the Share Exchange Agreement does

not purport to be complete and is qualified in its entirety by reference to the terms of the Share Exchange Agreement, which was filed

as an exhibit to our Current Report on Form 8-K filed with the SEC on July 20, 2017 and incorporated by reference herein.

VIE Agreements

On October 16, 2018, the Company, through its

indirect wholly-owned WFOE, JiuGe Management, entered into the VIE Agreements pursuant to which JiuGe Technology became our contractually

On October 16, 2018, the Company, through its indirect

wholly-owned WFOE, JiuGe Management, entered into the VIE Agreements pursuant to which JiuGe Technology became our contractually

controlled affiliate.

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This measure under this agreement will result in the equity of the VIE being locked, making it impossible for any third party to legally obtain the equity of the VIE without the prior consent of the WFOE.

Our PRC counsel has reviewed these agreements

and believes that all the VIE Agreements were duly signed and are not in violation of applicable laws of PRC.

We are of the opinion that

the VIE Agreements are valid and giving the WFOE a full control over the VIE in respect of the current and effective PRC laws and regulations.

Our PRC counsel has reviewed these agreements and

believes that all the VIE Agreements were duly signed and are not in violation of applicable laws of PRC.

We are of the opinion that the

VIE Agreements are valid and giving the WFOE a full control over the VIE in respect of the current and effective PRC laws and regulations.

However, the VIE Agreements have never been challenged or recognized in court for the time being, and the PRC government may determine

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our reach to expand into additional provinces in the PRC.

In September 2018, JiuGe Technology launched and

commercialized mobile payment and recharge services to businesses for China Unicom.

The JiuGe Technology mobile payment and recharge platform

enables the seamless delivery of real-time payment and recharge services to third-party channels and businesses.

We earn a negotiated

rebate amount from each of China Unicom and China Mobile for all monies paid by consumers to China Unicom and China Mobile that we process.

To encourage consumers to utilize our portal instead of using our competitors’ platforms or paying China Unicom or China Mobile

directly, we offer mobile data and talk time at a rate discounted from these companies’ stated rates, which are also the rates we

must pay to them to purchase the mobile data and talk time provided to consumers through the use of our platform.

Accordingly, we earn

income on the rebates we receive from the telecommunications companies, reduced by the amounts by which we discount the mobile data and

talk time sold through our platform.

In October 2018, China Unicom and China Mobile

awarded JiuGe Technology with contracts that established partnerships for data analysis, that could unlock potential value-added services.

This description of the VIE Agreements discussed

above does not purport to be complete and are qualified in their entirety by reference to the terms of the VIE Agreements, which were

filed as exhibits to our Current Report on Form 8-K filed with the SEC on December 27, 2018 and are incorporated by reference herein.

The English translation version of the JiuGe Technology Share Pledge Agreement was filed as Exhibit 10.6 to our Form S-1/A (Amendment

1) filed with the SEC on January 5, 2023, and is incorporated by reference herein.

In September 2018, JiuGe Technology launched and commercialized

mobile payment and recharge services to businesses for China Unicom.

The JiuGe Technology mobile payment and recharge platform enables

the seamless delivery of real-time payment and recharge services to third-party channels and businesses.

We earn a negotiated rebate amount

from each of China Unicom and China Mobile for all monies paid by consumers to China Unicom and China Mobile that we process.

consumers to utilize our portal instead of using our competitors’ platforms or paying China Unicom or China Mobile directly, we

offer mobile data and talk time at a rate discounted from these companies’ stated rates, which are also the rates we must pay to

them to purchase the mobile data and talk time provided to consumers through the use of our platform.

Accordingly, we earn income on the

rebates we receive from the telecommunications companies, reduced by the amounts by which we discount the mobile data and talk time sold

through our platform.

In October 2018, China Unicom and China Mobile awarded

JiuGe Technology with contracts that established partnerships for data analysis, that could unlock potential value-added services.

This description of the VIE Agreements discussed above

does not purport to be complete and are qualified in their entirety by reference to the terms of the VIE Agreements, which were filed

as exhibits to our Current Report on Form 8-K filed with the SEC on December 27, 2018 and are incorporated by reference herein.

translation version of the JiuGe Technology Share Pledge Agreement was filed as Exhibit 10.6 to our Form S-1/A (Amendment No.

with the SEC on January 5, 2023, and is incorporated by reference herein.

Acquisition of Operational Control of Beijing

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China Unicom Cooperation Agreement

On July 7, 2019, JiuGe Technology entered into

that certain Yunnan Unicom Electronic Sales Platform Construction and Operation Cooperation Agreement (the “ Cooperation Agreement ”)

On July 7, 2019, JiuGe Technology entered into that

certain Yunnan Unicom Electronic Sales Platform Construction and Operation Cooperation Agreement (the “ Cooperation Agreement ”)

with China United Network Communications Limited Yunnan Branch (“ China Unicom Yunnan ”).

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Agreement, JiuGe Technology receives a percentage of the revenue received from all sales it processes for China Unicom Yunnan on the platform.

The Cooperation Agreement expires three years

from the date of its signature, subject to a yearly auto-renewal clause, which is currently in an auto-renewal period, but it may be terminated

The Cooperation Agreement expires three years from

the date of its signature, subject to a yearly auto-renewal clause, which is currently in an auto-renewal period, but it may be terminated

by (i) JiuGe Technology upon three months’ written notice or (ii) by China Unicom Yunnan unilaterally.

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parties under the Cooperation Agreement will be adjudicated in Chinese courts.

This description of the Cooperation Agreement

does not purport to be complete and is qualified in its entirety by reference to the terms of the Cooperation Agreement, which was filed

as an exhibit to our Current Report on Form 8-K filed with the SEC on November 9, 2019 and is incorporated by reference herein.

This description of the Cooperation Agreement does

not purport to be complete and is qualified in its entirety by reference to the terms of the Cooperation Agreement, which was filed as

an exhibit to our Current Report on Form 8-K filed with the SEC on November 9, 2019 and is incorporated by reference herein.

In January 2022, TengLian (a 99% owned subsidiary

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is a 80% owned subsidiary of Shanghai JiuGe Information Technology Co., Ltd.

Because we do not directly hold equity interests

in the VIE, we are subject to risks and uncertainties of the interpretations and applications of Chinese laws and regulations, including

Because we do not directly hold equity interests in

the VIE, we are subject to risks and uncertainties of the interpretations and applications of Chinese laws and regulations, including

but not limited to, the validity and enforcement of the VIE Agreements among the WFOE, the VIE and the shareholder of the VIE.

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significantly or become worthless.

The VIE Agreements may not be as effective as

direct ownership in providing operational control.

For instance, the VIE and its shareholders could breach their contractual arrangements

with us by, among other things, failing to conduct their operations in an acceptable manner or taking other actions that are detrimental

to our interests.

The VIE Agreements may not be as effective as direct

ownership in providing operational control.

For instance, the VIE and its shareholders could breach their contractual arrangements with

us by, among other things, failing to conduct their operations in an acceptable manner or taking other actions that are detrimental to

our interests.

The shareholder of the VIE may not act in the best interests of our Company or may not perform their obligations under

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and adverse effect on our business.

As of the date of this Quarterly Report on Form

10-Q, we and the VIE are not required to seek permissions from the CSRC, the CAC, or any other entity that is required to approve of the

operations of the VIE, other than a value-added telecommunications business licence, which has already been obtained.

Nevertheless, Chinese

regulatory authorities may in the future promulgate laws, regulations or implement rules that require us, our subsidiaries or the VIEs

to obtain permissions from such regulatory authorities to approve the operations of the VIE or any securities listing.

The Company is a mobile data specialist company

incorporated in Delaware, USA, with its head office located at 111 Somerset Road, Level 3, Singapore 238164.

As described elsewhere in

this Quarterly Report, our Company has been organized as a holding company and conducts a significant part of our operations through our

subsidiaries and through contractual arrangements with JiuGe Technology, a VIE based in China.

As of the date of this Quarterly Report on Form 10-Q,

we and the VIE are not required to seek permissions from the CSRC, the CAC, or any other entity that is required to approve of the operations

of the VIE, other than a value-added telecommunications business licence, which has already been obtained.

Nevertheless, Chinese regulatory

authorities may in the future promulgate laws, regulations or implement rules that require us, our subsidiaries or the VIEs to obtain

permissions from such regulatory authorities to approve the operations of the VIE or any securities listing.

The Company is a mobile data specialist company incorporated

in Delaware, USA, with its head office located at 111 Somerset Road, Level 3, Singapore 238164.

As described elsewhere in this Quarterly

Report, our Company has been organized as a holding company and conducts a significant part of our operations through our subsidiaries

and through contractual arrangements with JiuGe Technology, a VIE based in China.

The Company operates the following lines of business:

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We principally earn revenue by providing mobile payment and recharge services to customers of China Unicom and China Mobile.

We conduct our mobile payment business through

JiuGe Technology, our VIE.

In the first half of 2018, JiuGe Technology secured contracts with China Unicom and China Mobile to distribute

mobile data for businesses and corporations in nine provinces/municipalities, namely Chengdu, Jiangxi, Jiangsu, Chongqing, Shanghai, Zhuhai,

We conduct our mobile payment business through JiuGe

Technology, our VIE.

In the first half of 2018, JiuGe Technology secured contracts with China Unicom and China Mobile to distribute mobile

data for businesses and corporations in nine provinces/municipalities, namely Chengdu, Jiangxi, Jiangsu, Chongqing, Shanghai, Zhuhai,

Zhejiang, Shaanxi, Inner Mongolia, Henan and Fujian.

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to offer recharge services to the Fujian province which we have launched and commercialized in November 2021.

The JiuGe Technology mobile payment and recharge

platform enables the seamless delivery of real-time payment and recharge services to third-party channels and businesses.

We earn a rebate

from each telecommunications company on the funds paid by consumers to the telecommunications companies we process.

The JiuGe Technology mobile payment and recharge platform

enables the seamless delivery of real-time payment and recharge services to third-party channels and businesses.

We earn a rebate from

each telecommunications company on the funds paid by consumers to the telecommunications companies we process.

To encourage consumers

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of the e-commerce companies, such as PinDuoDuo.com, TMall.com, and JD.Com.

The Company is planning to further expand its universal exchange

The Company plans to further expand its universal exchange

platform by setting up B2C stores on several other major e-commerce platforms in China.

In addition, we have been designated as one of

China’s Mobile’s loyalty redemption partners, which allows us to provide such services for their customers via our platform.

China Mobile’s loyalty redemption partners, which allows us to provide such services for their customers via our platform.

Additionally, as previously disclosed, on July 7,

7, 2019, JiuGe Technology, our VIE, entered into that certain Cooperation Agreement with China Unicom Yunnan, whereby JiuGe Technology

is responsible for constructing and operating China Unicom’s electronic sales platform through which consumers can purchase various

2019, JiuGe Technology, our VIE, entered into that certain Cooperation Agreement with China Unicom Yunnan, whereby JiuGe Technology is

responsible for constructing and operating China Unicom’s electronic sales platform through which consumers can purchase various

goods and services from China Unicom, including mobile telephones, mobile telephone service, broadband data services, terminals, “smart”

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(i) JiuGe Technology upon three months’ written notice or (ii) by China Unicom unilaterally.

In March 2020, FingerMotion secured contracts with

both China Mobile and China Unicom to acquire new users to take up the respective subscription plans.

In February 2021, we increased the mobile phones sales

to end users using all of our platforms.

This business will continue to contribute to the overall revenue for the group as part of our

offering to our customers.

During the recent fiscal year, the Company expanded

its offering under their telecommunication product and services by increasing their product line revenue streams.

In March 2020, FingerMotion

secured a contract with both China Mobile and China Unicom to acquire new users to take up the respective subscription plans.

In February 2021, we increased the mobile phones

sales to end users using all of our platforms.

This business will continue to contribute to the overall revenue for the group as part

of our offering to our customers.

its offerings under its telecommunication product and services by increasing its product line revenue streams.

Value Added Product and Services

These are new product and services that the Company

expects to secure and work with the telecommunication provider and all our e-commerce platform partners to market.

In February 2022, our

contractually controlled subsidiary, JiuGe Technology, through its 99% own subsidiary Shanghai TengLian JiuJiu Information Communication

Technology Co., Ltd.

signed an agreement with both China Unicom and China Mobile to co-operate in the introduction of the Mobile Device

Protection product which is incorporated into the Telecommunication subscription plans in line with their roll out of new mobile phones

and new 5G phones.

In mid-July 2022, we launched the Mobile Device protection product with the roll out of the new mobile phones and 5G

Complementing our hardware protection services, we have introduced cloud services designed to offer corporate customers robust

The Company continues to evaluate and develop value-added

products and services in collaboration with the telecommunication provider and all our e-commerce platform partners.

In 2022, our contractually-controlled

subsidiary, JiuGe Technology, through its 99% owned subsidiary Shanghai TengLian JiuJiu Information Communication Technology Co., Ltd.

entered into an agreement with both China Unicom and China Mobile to introduce a Mobile Device Protection product as part of subscription

plans for new mobile phones and new 5G devices.

The initiatives formed part of our broader efforts to expand value-added solutions in

cooperation with telecom operators.

Additionally, we have introduced cloud-based services that provide corporate customers with secure

data storage, processing capabilities, and databases accessible via the internet.

These services complement our telecommunication offerings.

We continue to work closely with our partners to identify and pursue additional value-added product lines that align with evolving market

opportunities.

SMS and MMS Services

On March 7, 2019, the Company, acting through

JiuGe Technology, acquired operational control of Beijing XunLian TianXia Technology Co., Ltd.

(“ Beijing Technology ”),

a company in the business of providing mass SMS text services to businesses looking to communicate with large numbers of their customers

On March 7, 2019, the Company, acting through JiuGe

Technology, acquired operational control of Beijing XunLian TianXia Technology Co., Ltd.

(“ Beijing Technology ”), a

company in the business of providing mass SMS text services to businesses looking to communicate with large numbers of their customers

and prospective customers.

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Rich Communication Services

In March 2020, the Company began the development

of an RCS platform, also known as Messaging as a Platform (“ MaaP ”).

This RCS platform will be a proprietary business

messaging platform that enables businesses and brands to communicate and service their customers on the 5G infrastructure, delivering

a better and more efficient user experience at a lower cost.

For example, with the new 5G RCS message service, consumers will have the

ability to list available flights by sending a message regarding a holiday and will also be able to book and buy flights by sending messages.

This will allow telecommunication providers like China Unicom and China Mobile to retain users on their systems, without having to utilize

third party apps or log onto the Internet, which will increase their user retention.

We expect this to open up a new marketing channel

for the Company’s current and prospective business partners.

Currently, the deployment of this RCS platform is under review, with

discussion ongoing among government bodies, major service providers, and telecommunication companies.

These deliberations aim to assess

the potential market impacts and establish the necessary consents before the launch, considering the significant changes the platform

may introduce to user interactions with existing services.

The discussion seeks to ensure that all stakeholders’ concerns are addressed

comprehensively.

Once these issues are resolved and the necessary approval is obtained, we anticipate a substantial enhancement in our

service offerings and an expansion of our market reach.

In March 2020, the Company began the development of

an RCS platform, also known as Messaging as a Platform (“ MaaP ”).

This RCS platform will be a proprietary business messaging

platform that enables businesses and brands to communicate and service their customers on the 5G infrastructure, delivering a better and

more efficient user experience at a lower cost.

For example, with the new 5G RCS message service, consumers will have the ability to list

available flights by sending a message regarding a holiday and will also be able to book and buy flights by sending messages.

allow telecommunication providers like China Unicom and China Mobile to retain users on their systems, without having to utilize third

party apps or log onto the Internet, which will increase their user retention.

We expect this to open up a new marketing channel for the

Company’s current and prospective business partners.

Currently, the deployment of this RCS platform is under review, with discussion

ongoing among government bodies, major service providers, and telecommunication companies.

These deliberations aim to assess the potential

market impacts and establish the necessary consents before the launch, considering the significant changes the platform may introduce

to user interactions with existing services.

The discussion seeks to ensure that all stakeholders’ concerns are addressed comprehensively.

Once these issues are resolved and the necessary approval is obtained, we anticipate a substantial enhancement in our service offerings

and an expansion of our market reach.

Big Data Insights

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The Company, acting primarily through its indirect wholly-owned subsidiary,

Finger Motion Financial Company Limited (“ FMFC ”) applies its vast experience in the insurance and financial services

Finger Motion Financial Company Limited (“ FMFCL ”) applies its vast experience in the insurance and financial services

industry and capabilities in technology and data analytics to develop revolutionary solutions targeted towards insurance and financial

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objective is to promote, enhance, and deliver better value to our partners and customers.

The Company’s proprietary risk assessment

engine offers standard and customized scoring and appraisal services based on multi-dimensional factors.

The Company has the ability to

provide potential customers and partners with insights-driven and technology-enabled solutions and applications including preferred risk

selection, precision marketing, product customization, and claims management (e.g., fraud detection).

The Company’s mission is to

deliver the next generation of data-driven solutions in the financial services, healthcare, and insurance industries that result in more

accurate risk assessments, more efficient processes, and a more delightful user experience.

On or around January 25, 2021, FMFC entered into

a Sapientus services agreement with Pacific Life Re, a global life reinsurer serving the insurance industry with a comprehensive suite

of products and services.

The Company’s proprietary risk assessment engine

offers standard and customized scoring and appraisal services based on multi-dimensional factors.

The Company has the ability to provide

potential customers and partners with insights-driven and technology-enabled solutions and applications, including preferred risk selection,

precision marketing, product customization, and claims management (e.g., fraud detection).

The Company’s mission is to deliver the

next generation of data-driven solutions in the financial services, healthcare, and insurance industries resulting in more accurate risk

assessments, more efficient processes, and a more delightful user experience.

On or around January 25, 2021, FMFCL entered into

a services agreement with Pacific Life Re, a global life reinsurer serving the insurance industry with a comprehensive suite of products

and services.

In December 2021, the Company, acting through JiuGe

Technology, formed a collaborative research alliance with Munich Re in extending behavioral analytics to enhance understanding of morbidity

and behavioral patterns in China market, with the goal of creating value for both insurers and the end insurance consumers through better

technology, product offerings and customer experience.

Building on these capabilities, the Company signed

an agreement with PT Mach Wireless Teknologi to introduce its AI-powered insurance risk rating platform in Indonesia.

The platform applies

proprietary machine learning and risk analytics to support motor, health, and life insurance underwriting, adapted to local infrastructure

and regulations.

This arrangement aims to advance the telco-insurance ecosystem by fostering collaboration between telecom operators,

insurers, and local digital service providers.

Our Video Game Division

The video game industry covers multiple sectors

and is currently experiencing a move away from physical games towards digital software.

Advances in technology and streaming now allow

users to download games rather than visiting retailers.

While publishers are expanding their direct-to-consumer models through mobile

gaming, eSports and virtual, the Company has exited the video game business and re-directed its resources towards new business opportunities

in China, particularly the mobile phone payment and data business.

and behavioral patterns in the Chinese market, with the goal of creating value for both insurers and the end insurance consumers through

better technology, product offerings, and customer experience.

As part of its regional initiatives, the Company also

entered into an agreement with PT Mach Wireless Teknologi in Indonesia to explore the introduction of an AI-powered insurance risk rating

Building on these earlier initiatives, the Company

has most recently advanced development of its Insurance Management and Enablement (“ IME ”) platform, a digital solution

designed to streamline customer management, product configuration, policy administration, and performance tracking across the insurance

IME is positioned as a cornerstone initiative under Sapientus, with the objective of improving efficiency, compliance, and

decision-making for insurers and brokers while creating new avenues for recurring revenue and strategic partnerships.

Smart Mobility Solution

FingerMotion’s Advanced Mobile Integrated

Command and Communication Platform (the “ C2 Platform ”), saw considerable advancements during the fiscal year ended

February 28, 2025.

Designed to support mission-critical mobile communications for public safety agencies, emergency response teams, and

industrial sectors, the C2 Platform is built on FingerMotion’s telecommunications infrastructure, leveraging 5G connectivity and

cloud-based technology to offer real-time data sharing, geospatial mapping, and situational awareness.

During the fiscal year ended February 28, 2025,

we expanded the deployment of the C2 Platform into pilot regions, establishing partnerships with automotive manufacturers and industrial

FingerMotion’s Advanced Mobile Integrated Command

and Communication Platform (the “ C2 Platform ”), saw considerable advancements during the fiscal year ended February

Designed to support mission-critical mobile communications for public safety agencies, emergency response teams, and industrial

sectors, the C2 Platform is built on FingerMotion’s telecommunications infrastructure, leveraging 5G connectivity and cloud-based

technology to offer real-time data sharing, geospatial mapping, and situational awareness.

During the fiscal year ended February 28, 2025, we

expanded the deployment of the C2 Platform into pilot regions, establishing partnerships with automotive manufacturers and industrial

These partnerships enabled us to showcase the platform's capabilities, including mobile video feeds, real-time GPS tracking,

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private sector enterprises in high-risk areas such as disaster management, fleet operations, and emergency response missions.

We expect these deployments to scale up during

the fiscal year ending February 28, 2026, with further geographic expansion planned for key markets in China.

We expect these deployments to scale up during the

fiscal year ending February 28, 2026, with further geographic expansion planned for key markets in China.

These developments are expected

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increasing adoption of EVs, the demand for EV charging stations and related services has been a significant growth driver for DaGe.

During the fiscal year ended February 28, 2025,

we expanded our network of service providers, onboarded additional automotive maintenance providers, and onboarded more EV charging stations

During the fiscal year ended February 28, 2025, we

expanded our network of service providers, onboarded additional automotive maintenance providers, and onboarded more EV charging stations

into the platform.

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infrastructure to expand the platform’s reach, capitalizing on cross-promotion opportunities within our mobile services business.

The introduction of loyalty programs and seasonal promotions helped retain users and drive repeat business, further strengthening the

platform’s position in the market.

The introduction of loyalty programs and seasonal promotions helped retain users and drive repeat business, thereby further strengthening

the platform’s position in the market.

As we look ahead, we plan to continue expanding DaGe’s offerings by targeting new markets

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Building on the momentum from the previous fiscal

year, the DaGe platform continued to evolve during the three months ended May 31, 2025.

year, the DaGe platform continued to evolve during the six months ended August 31, 2025.

We focused on strengthening relationships with

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Recent Developments

On June 5, 2025, our subsidiary, JiuGe Technology,

entered into a strategic collaborationarrangement with Zhejiang Jincheng Automotive Group Co., Ltd.

On or aournd June 5, 2025, our subsidiary, JiuGe Technology,

entered into a strategic collaboration arrangement with Zhejiang Jincheng Automotive Group Co., Ltd.

The arrangement sets the framework

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in the emergency response market.

On June 12, 2025, JiuGe Technology also entered

into a strategic collaboration arrangement with Qingling Motors Co., Ltd., a leading Chinese automotive manufacturer.

On or around June 12, 2025, JiuGe Technology also

entered into a strategic collaboration arrangement with Qingling Motors Co., Ltd., a leading Chinese automotive manufacturer.

This partnership

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and potential commercial deployment.

On September 30, 2025, our Company, our WOFE, JiuGe Management, and

Shanghai Jihaohe Information Technology Co., Ltd.

(“ Shanghai Jihaohe ”), entered into an asset purchase agreement pursuant

to which we caused JiuGe Management to acquire all of the intellectual property (including, without limitation, all of the inventions,

software in source code or object code, trademarks, copyrights and trade secrets) underpinning our DaGe platform, in consideration of

the issuance by us to Shanghai Jihaohe on October 2, 2025, of 1,500,000 fully-paid and non-assessable shares of our common stock at a

deemed issuance price of $1.57 per share.

Results of Operations

Three Months Ended May 31, 2025 Compared to Three Months Ended

The following table sets forth our results of

operations for the periods indicated:

Three Months Ended August 31, 2025 Compared to Three Months Ended

August 31, 2024

The following table sets forth our results of operations

for the periods indicated:

For the three months ended

August 31, 2025

August 31, 2024

Cost of revenue

5 unchanged sentences

Total other income (expenses)

Net Loss attributable to the Company’s shareholders

Net loss attributable to the Company’s stockholders

$ (1,541,010 )

6 unchanged sentences

Diluted Loss Per Share attributable to the Company

The following table sets forth the Company’s revenue from its

lines of business for the periods indicated:

The following table sets forth the Company’s revenue from its lines

of business for the periods indicated:

For the three months ended

August 31, 2025

August 31, 2024

Telecommunication Products & Services

2 unchanged sentences

Total Revenue

We recorded $8,458,743 in revenue for the three

months ended May 31, 2025, an increase of $84,760 or 1%, compared to the three months ended May 31, 2024.

We recorded $8,647,511 in revenue for the three months

ended August 31, 2025, an increase of $188,748 or 2%, compared to the three months ended August 31, 2024.

This increase resulted from

increases in revenue of $10,475, $109,241 and $27,310 from our DaGe Platform, Command & Communication and Big Data, respectively,

offset by decrease in revenue of $62,266 from our Telecommunication Products & Services.

We principally earn revenue by providing mobile

payment and recharge services to customers of telecommunications companies in China.

Specifically, we earn a negotiated rebate amount

from the telecommunications companies for all monies paid by consumers to those companies that we process.

For the three months ended

May 31, 2025, our revenue remained primarily driven by our Telecommunication Products & Services segment, which contributed $8.31

million, representing 98% of total revenue.

Although this segment recorded a slight year-over-year decrease of 1%, it continues to be

the core contributor to our overall performance.

The DaGe Platform, launched in 2024, continue

to gain early momentum, generating $10,938 in revenue compared to $463 in the same period last year.

While still in its development phase,

the platform represents a strategic entry into the car services market, including offerings such as car wash, maintenance, and EV charging.

Initial revenue reflects growing user engagements, and we anticipate stronger contributions in future periods as we expand services and

deepen integration with EV charging networks.

increases in revenue of $214,637, $2,109, and $147 from our Telecommunication Products & Services, DaGe Platform, and Big Data, respectively,

offset by a decrease in revenue of $28,145 from our Command & Communication.

We principally earn revenue by providing mobile payment

and recharge services to customers of telecommunications companies in China.

Specifically, we earn a negotiated rebate amount from the

telecommunications companies for all monies paid by consumers to those companies that we process.

For the three months ended August 31,

2025, our revenue remained primarily driven by our Telecommunication Products & Services segment, which contributed $8.64 million,

representing 99% of total revenue.

The DaGe Platform, launched in 2024, continues to

gain early momentum, generating $6,898 in revenue compared to $4,789 in the same period last year.

While revenue contributions remain

modest, growth indicates increasing user engagement and potential for stronger contributions as services scale and integration with EV

charging networks deepens.

The Command and Communication segment generated $585

in revenue during the quarter, reflecting continued progress in deploying our emergency response and communication services.

This business supports our long-term diversification strategy and reinforces our commitment to scalable public safety solutions.

The Big Data segment generated revenue of $27,310

during the quarter.

During this period, we continued to advance our AI-driven analytics initiatives under the Sapientus brand, with a

focus on developing an insurance analytics platform and a broader AI-powered ecosystem.

These initiatives include the rollout of intelligent

customer profiling tools, AI chatbots, and web-based financial literacy platform aimed at supporting insurance and telco partners.

are progressing from system design and testing toward commercial deployment, targeting future revenue streams through platform subscriptions,

consulting services, and data-enable product distribution across Southeast Asia.

This business

supports our long-term diversification strategy and reinforces our commitment to scalable public safety solutions.

The Big Data segment generated revenue of $147 during

A key focus is the development of our Insurance Management and Enablement (IME) platform, which provides an end-to-end digital

solution for insurance brokers by streamlining customer management, product configuration, policy administration, and performance tracking.

We are actively pursuing commercial opportunities for IME, which we believe can become a core driver of recurring revenue and strategic

partnerships.

Alongside IME, we continue to advance other Sapientus initiatives such as customer profiling tools, AI chatbots, all of

which contribute to building an AI-powered ecosystem that supports insurers and telecom partners while expanding our future revenue streams

across Southeast Asia.

Cost of Revenue

The following table sets forth the Company’s cost of revenue

for the periods indicated:

The following table sets forth the Company’s cost of revenue for

the periods indicated:

For the three months ended

August 31, 2025

August 31, 2024

Telecommunication Products & Services

2 unchanged sentences

Total Cost of Revenue

We recorded $8,306,222 in costs of revenue for

the three months ended May 31, 2025, an increase of $614,128 or 8%, compared to the three months ended May 31, 2024.

We recorded $8,608,771 in costs of revenue for the

three months ended August 31, 2025, an increase of $451,036 or 6%, compared to the three months ended August 31, 2024.

As previously mentioned,

1 unchanged sentence

plans, and mobile phone sales in China.

To earn this revenue, we incur cost of the product, certain customer acquisition costs, including

discounts, promotion and marketing initiatives aimed at user growth and partner engagement, particularly in our emerging segments which

To earn this revenue, we incur costs of the product, certain customer acquisition costs, including

discounts, promotions, and marketing initiatives aimed at user growth and partner engagement, particularly in our emerging segments, which

are reflected in our cost of revenue.

Our gross profit for the three months ended May

31, 2025 was $152,521, a decrease of $529,368 or 78%, compared to the three months ended May 31, 2024.

The decline was primarily attributable

to the lower margin product mix in the Telecommunication Product & Services segment during the period.

In addition, initial ramp-up

costs in our emerging segments particularly the DaGe Platform and Command and Communication business contributed to overall margin compression

as these businesses are still in the early stages of development and have yet to achieve scale efficiencies.

For the three months ended August 31, 2025, we recorded

a gross profit of $38,740, a decrease of $262,288 or 87%, compared to the three months ended August 31, 2024.

The decline in gross profit

is primarily attributable to margin variability within the Telecommunication Products & Services segment, where certain transactions

carried lower margins.

While margins in this segment may fluctuate, the business remains a strategic core of our business as maintaining

scale and presence in the telecom market is crucial to supporting our broader ecosystem and creating cross-selling opportunities with

our emerging platforms.

In addition, initial ramp-up costs in our emerging segments, particularly the DaGe Platform and Command and Communication

business, contributed to overall margin pressure, as these segments are still in the early stages of development and have yet to achieve

scale efficiencies.

Amortization & Depreciation

We recorded depreciation of $10,553 for fixed

assets for the three months ended May 31, 2025, a decrease of $1,461 or 12%, compared to the three months ended May 31, 2024.

We recorded depreciation of $7,766 for fixed assets

for the three months ended August 31, 2025, a decrease of $3,974 or 34%, compared to the three months ended August 31, 2024.

General & Administrative Expenses

2 unchanged sentences

For the three months ended

August 31, 2025

August 31, 2024

Entertainment

3 unchanged sentences

We recorded $1,387,466 in general and administrative

expenses for the three months ended May 31, 2025, decrease of $371,351 or 20%, compared to the three months ended May 31, 2024.

was primarily due to lower technical fee, entertainment, and other miscellaneous expenses compared to the prior year.

General and administrative

expenses consist of personnel related costs, professional and accounting services, and general office and operational expenses necessary

to support our business growth and regulatory compliance.

These expenses include ongoing costs associated with corporate governance, audit

and regulatory filings, consulting and advisory services, and operational support across our business segment.

expenses for the three months ended August 31, 2025, a decrease of $160,570 or 10%, compared to the three months ended August 31, 2024.

The decrease was primarily due to lower salaries & wages, traveling, entertainment, and other miscellaneous expenses compared to the

General and administrative expenses consist of personnel-related costs, professional and accounting services, and general

office and operational expenses necessary to support our business growth and regulatory compliance.

These expenses include ongoing costs

associated with corporate governance, audit and regulatory filings, consulting and advisory services, as well as operational support across

our business segments.

Marketing Cost

The following table sets forth the Company’s

marketing cost for the periods indicated:

marketing costs for the periods indicated:

For the three months ended

August 31, 2025

August 31, 2024

Marketing Cost

We recorded $12,106 in marketing cost for the

three months ended May 31, 2025, being a decrease of $50,418 or 81%, compared to the three months ended May 31, 2024.

We recorded $18,836 in marketing costs for the three

months ended August 31, 2025, being a decrease of $52,746 or 74%, compared to the three months ended August 31, 2024.

Marketing activities

during the quarter were primarily related to targeted campaigns supporting the continued rollout of our DaGe platform.

during the quarter were primarily focused on targeted campaigns supporting the continued rollout of our DaGe platform.

Research & Development

2 unchanged sentences

For the three months ended

August 31, 2025

August 31, 2024

Research & Development

We incurred fees of $172,652 in research &

development for the three months ended May 31, 2025 as compared to $178,993 for the three months ended May 31, 2024 representing a decrease

We incurred fees of $77,540 in research & development

for the three months ended August 31, 2025 as compared to $180,273 for the three months ended August 31, 2024 representing a decrease

of $102,733 or 57%.

2 unchanged sentences

also began within our Command and Communication segment, which is currently in its initial buildout phase under a strategic joint venture.

The Sapientus division continues to focus on AI-powered

analytics and insurance-related data modelling, supported by a team of actuaries, data scientists, and software engineers.

quarter, we continued to maintain and refine our credit risk assessment platform as part of our broader suite of data-driven solutions.

We also commenced development of a new insurance

platform with integrated AI capabilities, aimed at supporting intelligent risk evaluation, product innovation, and sales enablement.

parallel, we continued to refine our analytics using empirical data and progressed internal efforts to support future capabilities in

portfolio segmentation and data-driven distribution strategies.

The Company also holds registered patents in China covering proprietary

Within Sapientus, our primary focus has been the development

of the IME platform, a digital solution designed to integrate customer management, product configuration, policy administration, and performance

tracking across the insurance value chain.

The IME platform aims to enhance efficiency, minimize errors, strengthen compliance, and provide

real-time insights for insurers and brokers.

During the quarter, we continued to advance IME toward commercialization and pursue opportunities

for strategic partnerships.

In addition to IME, we maintained and enhanced our

credit risk assessment platform and continued development of other AI-powered analytics initiatives, including intelligent risk evaluation,

product innovation, and sales enablement tools.

We also refine our analytics using empirical data to build future capabilities in portfolio

segmentation and data-driven distribution strategies.

The Company continues to maintain registered patents in China covering proprietary

model algorithms and insurance analytics infrastructure.

Looking ahead, we remain focused on expanding

Sapientus beyond China, with an emphasis on scalable and low capital data solutions designed for international markets.

At the same time,

we are progressing the early stage development of our Command & Communication segment under a strategic collaboration, supporting

future opportunities in emergency response and public safety infrastructure.

Research and development remains core to our innovation led

strategy and long term value creation across both analytics and technology-driven services.

Looking ahead, we intend to expand Sapientus beyond

China, with an emphasis on scalable and low capital data solutions designed for international markets.

At the same time, we are progressing

the early stage development of our Command & Communication segment under a strategic collaboration, supporting future opportunities

in emergency response and public safety infrastructure.

Research and development remains core to our innovation led strategy and long

term value creation across both analytics and technology-driven services.

Credit Impairment Loss

2 unchanged sentences

For the three months ended

August 31, 2025

August 31, 2024

Credit impairment loss

We recorded $307,967 in credit impairment loss

for three months ended May 31, 2025, an increase $307,967 or 100% compared to the three months ended May 31, 2024, reflecting a prudent

assessment of expected credit loss based on updated evaluations of customer credit risk and overall credit exposure.

We recorded ($71,198) in credit impairment loss for

the three months ended August 31, 2025, compared to no such losses for the three months ended August 31, 2024.

The favorable movement

reflects updated evaluation of customer credit risk and overall credit exposure, resulting in a reduction of previously estimated credit

Share Compensation Expenses

2 unchanged sentences

For the three months ended

August 31, 2025

August 31, 2024

Share compensation expenses

We incurred fees of $127,747 in share issuance

for consultants in consideration of services and stock option compensation expense for the three months ended May 31, 2025 as compared

to $222,670 for the three months ended May 31, 2024.

We incurred fees of $107,750 in share issuance for

consultants in consideration of services and stock option compensation expense for the three months ended August 31, 2025 as compared

to $180,563 for the three months ended August 31, 2024.

The decrease of $72,813 or 40% was due to the reduced engagement of consultants

to the Company that were compensated with shares of our common stock, which highlights our effort to minimize equity issuances as part

of our broader financial strategy to optimize equity issuances.

However, we will continue to employ equity compensation for consultants

selectively, aligning with our strategic and financial objectives.

Operating Expenses

We recorded $1,528,160 in operating expenses for the

three months ended August 31, 2025, as compared to $1,992,194 in operating expenses for the three months ended August 31, 2024.

of $464,034 or 23%, for the three months ended August 31, 2025 is as set forth above.

Net Loss attributable to the Company’s

The net loss attributable to the Company’s shareholders

was $1,541,010 for the three months ended August 31, 2025 and $1,688,229 for the three months ended August 31, 2024.

The decrease in net

loss attributable to the Company’s shareholders of $147,219 or 9% resulted primarily from the reduction in operating expenses as

discussed above.

Six Months Ended August 31, 2025 Compared to Six Months Ended August

The following table sets forth our results of operations

for the periods indicated:

For the six months ended

August 31, 2025

August 31, 2024

Cost of revenue

$ (16,914,993 )

$ (15,849,829 )

Total operating expenses

$ (3,669,611 )

$ (4,350,172 )

Total other income (expenses)

Net loss attributable to the Company’s stockholders

$ (3,549,566 )

$ (3,344,133 )

Foreign currency translation adjustment

Comprehensive loss attributable to the Company

$ (3,268,754 )

$ (3,168,033 )

Basic Loss Per Share attributable to the Company

Diluted Loss Per Share attributable to the Company

The following table sets forth the Company’s revenue from its lines

of business for the periods indicated:

For the six months ended

August 31, 2025

August 31, 2024

Telecommunication Products & Services

DaGe Platform

Command & Communication

Total Revenue

We recorded $17,106,254 in revenue for the six months

ended August 31, 2025, an increase of $273,508 or 2%, compared to the six months ended August 31, 2024.

This increase resulted from increases

in revenue of $152,371, $12,584, $81,096 and $27,457 from our Telecommunication Products & Services, DaGe Platform, Command &

Communication and Big Data, respectively.

We principally earn revenue by providing mobile payment

and recharge services to customers of telecommunications companies in China.

Specifically, we earn a negotiated rebate amount from the

telecommunications companies for all monies paid by consumers to those companies that we process.

For the six months ended August 31,

2025, our revenue remained primarily driven by our Telecommunication Products & Services segment, which contributed $16.95 million,

representing 99% of total revenue.

The DaGe Platform, launched in 2024, generated $17,836

in revenue compared to $5,252 in the same period last year.

While still in its development phase, the platform reflects early momentum

as we expand into the automotive services market, including offerings such as car wash, maintenance, and EV charging.

Revenue contributions

remain modest, but increasing user engagements highlights the platform’s long-term potential as services scale and integration with

EV charging networks expands.

The Command and Communication segment generated $109,826

in revenue for the six months ended August 31, 2025, reflecting continued progress in deploying our emergency response and communication

This business supports our long-term diversification strategy and reinforces our commitment to scalable public safety solutions.

The Big Data segment generated revenue of $27,457for

the six months ended August 31, 2025.

Our primary focus in this segment has been advancing the Insurance Management and Enablement (IME)

platform, a digital solution designed to integrate customer management, product configuration, policy administration, and performance

tracking for insurance brokers and insurers.

IME is being positioned as a cornerstone for future recurring revenue and strategic partnerships,

and we are actively pursuing commercial opportunities around the platform.

In addition to IME, we continue to develop other Sapientus

initiatives, including intelligent customer profiling tools and AI chatbots.

Collectively, these initiatives are building an AI-powered

ecosystem that supports insurers and telecom partners and lays the foundation for subscriptions services, consulting solutions, and data-enable

product distribution across Southeast Asia.

Cost of Revenue

The following table sets forth the Company’s cost of revenue for

the periods indicated:

For the six months ended

August 31, 2025

August 31, 2024

Telecommunication Products & Services

DaGe Platform

Command & Communication

Total Cost of Revenue

We recorded $16,914,993 in costs of revenue for the

six months ended August 31, 2025, an increase of $1,065,164 or 7%, compared to the six months ended August 31, 2024.

As previously mentioned,

we principally earn revenue by providing mobile payment and recharge services to customers of telecommunications companies, subscription

plans and mobile phone sales in China.

To earn this revenue, we incur cost of the product, certain customer acquisition costs, including

discounts, promotion and marketing initiatives aimed at user growth and partner engagement, particularly in our emerging segments which

are reflected in our cost of revenue.

Our gross profit for the six months ended August 31,

2025 was $191,261, a decrease of $791,656 or 81%, compared to the six months ended August 31, 2024.

The decline was primarily attributable

to margin variability within the Telecommunication Products & Services segment, where certain transactions carried lower margins.

Although margins in the Telecommunication sector may fluctuate and, at times, narrow significantly, this segment remains a strategic core

of our business, as maintaining scale and presence in the telecom market is essential to supporting our broader ecosystem and enabling

cross-selling opportunities with our emerging platforms.

In addition, initial ramp-up costs in our emerging segments, particularly the

DaGe Platform and Command and Communication business, contributed to overall margin compression as these businesses are still in the early

stages of development and have yet to achieve scale efficiencies.

Amortization & Depreciation

We recorded depreciation of $18,319 for fixed assets

for the six months ended August 31, 2025, a decrease of $5,435 or 23%, compared to the six months ended August 31, 2024.

General & Administrative Expenses

The following table sets forth the Company’s

general and administrative expenses for the periods indicated:

For the six months ended

August 31, 2025

August 31, 2024

Entertainment

Salaries & Wages

Technical fee

Total G&A Expenses

We recorded $2,897,892 in general and administrative

expenses for the six months ended August 31, 2025, a decrease of $531,921 or 16%, compared to the six months ended August 31, 2024.

decrease was primarily due to lower salaries & wages, travelling, entertainment, and other miscellaneous expenses compared to the

General and administrative expenses consist of personnel related costs, professional and accounting services, and general

office and operational expenses necessary to support our business growth and regulatory compliance.

These expenses include ongoing costs

associated with corporate governance, audit and regulatory filings, consulting and advisory services, as well as operational support across

our business segments.

Marketing Cost

The following table sets forth the Company’s

marketing cost for the periods indicated:

For the six months ended

August 31, 2025

August 31, 2024

Marketing Cost

We recorded $30,942 in marketing cost for the six

months ended August 31, 2025, being a decrease of $103,164 or 77%, compared to the six months ended August 31, 2024.

Marketing activities

during the quarter were primarily related to targeted campaigns supporting the continued rollout of our DaGe platform.

Research & Development

The following table sets forth the Company’s

research & development for the periods indicated:

For the six months ended

August 31, 2025

August 31, 2024

Research & Development

We incurred fees of $250,192 in research & development

for the six months ended August 31, 2025 as compared to $359,266 for the six months ended August 31, 2024 representing a decrease of $109,074

A substantial portion of the research and development

efforts during the quarter was directed toward our Big Data segment under the Sapientus brand, while preliminary development activities

also began within our Command and Communication segment, which is currently in its initial buildout phase under a strategic joint venture.

Within Sapientus, our primary focus has been the development

of the Insurance Management and Enablement (IME) platform, a digital solution designed to integrate customer management, product configuration,

policy administration, and performance tracking across the insurance value chain.

IME is designed to improve efficiency, reduce errors,

strengthen compliance, and provide real-time insights for insurers and brokers.

During the six month period, we advanced IME towards commercialization

and continued to pursue opportunities for strategic partnerships.

In addition to IME, we maintained and enhanced our

credit risk assessment platform and continued to develop other AI-powered analytics initiatives, including intelligent risk evaluation,

product innovation, and a sales enablement tool.

We also refine our analytics initiatives, including using empirical data to strengthen

future capabilities in portfolio segmentation and data-driven distribution strategies.

The Company continues to maintain all the registered

patents in China covering proprietary model algorithms and insurance analytics infrastructure.

Looking ahead, we remain focused on expanding Sapientus

beyond China, with an emphasis on scalable and low capital data solutions designed for international markets.

At the same time, we are

progressing the early stage development of our Command & Communication segment under a strategic collaboration, supporting future

opportunities in emergency response and public safety infrastructure.

Research and development remains core to our innovation led strategy

and long term value creation across both analytics and technology-driven services.

Credit Impairment Loss

The following table sets forth the Company’s

credit impairment loss for the periods indicated:

For the six months ended

August 31, 2025

August 31, 2024

Credit impairment loss

We recorded $236,769 in credit impairment loss for

six months ended August 31, 2025, an increase $236,769 or 100% compared to the six months ended August 31, 2024, reflecting a prudent

assessment of expected credit loss based on updated evaluations of customer credit risk and overall credit exposure.

Share Compensation Expenses

The following table sets forth the Company’s

share compensation expenses for the periods indicated:

For the six months ended

August 31, 2025

August 31, 2024

Share compensation expenses

We incurred fees of $235,497 in share issuance for

consultants in consideration of services and stock option compensation expense for the six months ended August 31, 2025 as compared to

$403,233 for the six months ended August 31, 2024.

The decrease of $167,736 or 42% was due to the reduced engagement of consultants to

4 unchanged sentences

Operating Expenses

We recorded $2,141,451 in operating expenses for

the three months ended May 31, 2025, as compared to $2,357,978 in operating expenses for the three months ended May 31, 2024.

of $216,527 or 9%, for the three months ended May 31, 2025 is as set forth above.

We recorded $3,669,611 in operating expenses for the

six months ended August 31, 2025, as compared to $4,350,172 in operating expenses for the six months ended August 31, 2024.

of $680,561 or 16%, for the six months ended August 31, 2025 is as set forth above.

Net Loss attributable to the Company’s

The net loss attributable to the Company’s

shareholders was $2,008,556 for the three months ended May 31, 2025 and $1,655,904 for the three months ended May 31, 2024.

in net loss attributable to the Company’s shareholders of $352,652 or 21% resulted primarily from the significant decline in gross

profit which was due to the low margin product mix in the Telecommunication Product & Services segment as discussed above.

The net loss attributable to the Company’s shareholders

was $3,549,566 for the six months ended August 31, 2025 and $3,344,133 for the six months ended August 31, 2024.

The increase in net loss

attributable to the Company’s shareholders of $205,433 or 6% resulted primarily from the significant decline in gross profit which

was due to the low margin product mix in the Telecommunication Product & Services segment as discussed above.

Liquidity and Capital Resources

The following table sets out our cash and working

capital as of May 31, 2025 and February 28, 2025:

As at May 31,

capital as of August 31, 2025 and February 28, 2025:

As at August 31,

As at February 28,

1 unchanged sentence

Working capital

At May 31, 2025, we had cash and cash equivalents

At August 31, 2025, we had cash and cash equivalents

of $221,836, as compared to cash and cash equivalents of $1,128,135 at February 28, 2025.

6 unchanged sentences

To manage these operational demands effectively, we have had to carefully monitor and manage our cash

We anticipate our cash on hand and cash equivalents, along with our revenues from operations, will support our ongoing operations

and repayment of outstanding indebtedness in the near term.

However, to sustain our growth and support strategic initiatives, including

the rollout of our Command & Communication business and increase deposits with telecommunication companies, we will require additional

To support all these, we intend to continue to seek additional capital through public or private sales of our equity or debt

securities, or both.

We anticipate that our available resources, together with expected operating inflows, will be sufficient to support our ongoing

operations and meet near-term obligations.

However, to sustain our growth and support strategic initiatives, including the rollout of

our Command & Communication business and increase deposits with telecommunication companies, we will require additional capital.

support all these, we intend to continue to seek additional capital through public or private sales of our equity or debt securities,

We may also explore entering into financing arrangements with commercial banks or non-traditional lenders.

provide investors with any assurance that we will be able to raise additional funding from the sale of our equity and/or debt securities

on terms acceptable to us, or at all, in order to support the rollout of our Command & Communication business and increase our deposits

with our telecommunications company clients .

We did, however, as of May 31, 2025, receive $950,000

in subscription proceeds to purchase 380,000 shares of our common stock at $2.50 per share on a private placement basis, $1,724,615 from

the exercise of warrants to purchase 1,149,743 shares of our common stock at $1.50 per share and $282,000 from the exercise of warrants

to purchase 150,000 shares of our common stock at $1.88 per share.

We cannot provide

investors with any assurance that we will be able to raise additional funding from the sale of our equity and/or debt securities on terms

acceptable to us, or at all, in order to support the rollout of our Command & Communication business and increase our deposits with

our telecommunications company clients .

Statement of Cashflows

The following table provides a summary of cash

flows for the periods presented:

For the three months ended

The following table provides a summary of cash flows

for the periods presented:

For the six months ended

August 31, 2025

August 31, 2024

Net cash used in operating activities

4 unchanged sentences

Effect of exchange rates on cash & cash equivalents

Net increase (decrease) in cash and cash equivalents

Net decrease in cash and cash equivalents

Cash Flow used in Operating Activities

Net cash used in operating activities decreased

by $205,722 in the three months ended May 31, 2025 compared to the three months ended May 31, 2024, primarily due to an increase in account

receivable of ($6,005,779) (May 31, 2024:

($7,762,176)) and decrease in lease liability of ($1,567) (May 31, 2024:

decrease in prepayment and deposit of $862,490 (May 31, 2043:

$24,000 ), decrease in other receivable of $71,455 (May 31, 2024:

decrease in inventories of $43,613 (May 31, 2024:

$nil), increase in accounts payable of $5,375,987 (May 31, 2024:

$6,884,661) and increase

in accrual and other payable of $26,048 (May 31, 2024:

Net cash used in operating activities increased by

$182,077 in the six months ended August 31, 2025 compared to the six months ended August 31, 2024, primarily due to an increase in account

receivable of ($4,610,390) (August 31, 2024:

($12,209,223)), increase in other receivable of ($425,360) (August 31, 2024:

$527,972) and

decrease in lease liability of ($3,495) (August 31, 2024:

offset by decrease in prepayment and deposit of $1,531,103 (August

($22,226)), decrease in inventories of $15,187 (August 31, 2024:

$nil), increase in accounts payable of $3,278,687 (August 31,

$10,002,702) and increase in accrual and other payable of $209,687 (August 31, 2024:

Cash Flow used in Investing Activities

During the three months ended May 31, 2025, net

cash used in investing activities increased by $1,826 compared to $nil in the three months ended May 31, 2024.

During the six months ended August 31, 2025, net cash

used in investing activities increased by $85 compared to $1,741 in the six months ended August 31, 2024.

Cash Flow provided by Financing Activities

During the three months ended May 31, 2025, net

cash provided by financing activities was $2,956,615 compared to net cash provided by financing activities during the three months ended

May 31, 2024 of $775,000.

The increase was due to the receipt of subscription proceeds on a private placement basis and exercise of warrants.

During the six months ended August 31, 2025, net cash

provided by financing activities was $2,205,493 compared to net cash provided by financing activities during the six months ended August

31, 2024 of $2,629,688.

The decrease was due to the $751,122 repayment of the loan.

Off-Balance Sheet Arrangements

There are no off-balance sheet arrangements that

have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues

or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

There are no off-balance sheet arrangements that have

or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses,

results of operations, liquidity, capital expenditures or capital resources that is material to investors.

Subsequent Events

Other than the above, we have determined that

we do not have any material subsequent events to report.

On September 30, 2025, our Company, our WOFE,

JiuGe Management, and Shanghai Jihaohe, entered into an asset purchase agreement pursuant to which we caused JiuGe Management to acquire

all of the intellectual property (including, without limitation, all of the inventions, software in source code or object code, trademarks,

copyrights and trade secrets) underpinning our DaGe platform, in consideration of the issuance by us to Shanghai Jihaohe on October 2,

2025, of 1,500,000 fully-paid and non-assessable shares of our common stock at a deemed issuance price of $1.57 per share.

Critical Accounting Policies

For a complete summary of all our significant

accounting policies refer to Note 2 - Summary of Principal Accounting Policies of the Notes to the Consolidated Financial Statements

as presented under Item 8, Financial Statements and Supplementary Data in our Annual Report on Form 10-K for our fiscal year ended February

For a complete summary of all our significant accounting

policies refer to Note 2 - Summary of Principal Accounting Policies of the Notes to the Consolidated Financial Statements as presented

under Item 8, Financial Statements and Supplementary Data in our Annual Report on Form 10-K for our fiscal year ended February 28, 2025

filed with the SEC on May 29, 2025.

3 unchanged sentences

Recently Issued Accounting Pronouncements

The Company does not believe recently issued but

not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements

The Company does not believe recently issued but not

yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements

of operations and cash flows.

4 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