What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-11-14 compared with 2025-08-13 · 58 added, 51 removed, 73 unchanged (60% of the section changed)

53 unchanged sentences

Results of operations

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

ended June 30, 2024

For the three months ended June 30, 2025, the

Company had a loss from operations of $244,000 compared to a loss from operations of $233,000 for the three months ended June 30, 2024.

Three months ended September 30, 2025 compared to the three months

ended September 30, 2024

For the three months ended September 30, 2025,

the Company had a loss from operations of $254,000 compared to a loss from operations of $231,000 for the three months ended September

The increased loss from operations of $23,000

was primarily a result of a decrease in Interest and other income, net of $22,000, offset by a decrease in Compensation and benefits of

$2,000, and a decrease in Other operating expenses of $9,000 for the three months ended June 30, 2024.

was primarily a result of a decrease in Interest and other income, net of $6,000, increase of Other operating expenses of $7,000, and

an increase in Compensation and benefits of $10,000 during the three months ended September 30, 2025 as compared to September 30, 2024.

Compensation and benefits

For the three months ended June 30, 2025, Compensation

and benefits were $113,000 as compared to $115,000 for the three months ended June 30, 2024.

For the three months ended September 30, 2025, Compensation and benefits

were $117,000 as compared to $107,000 for the three months ended September 30, 2024.

The increased Compensation and benefits of $10,000

was the result of an increase in payroll benefits.

Other operating expenses

For the three months ended June 30, 2025, Other

operating expenses were $145,000 as compared to $154,000 for the three months ended June 30, 2024.

The decreased other operating expenses

of $9,000 was primarily the result of decreased travel and entertainment expenses of $7,000 and decreased professional fees of $2,000

during the three months ended June 30, 2025.

For the three months ended September 30, 2025,

Other operating expenses were $151,000 as compared to $144,000 for the three months ended September 30, 2024.

The increased operating

expenses of $7,000 were primarily the result of increased professional fees of $18,000 and increased other expenses of $2,000, offset

by decreased travel and entertainment expenses of $13,000.

Interest and other income, net

For the three months ended June 30, 2025, Interest

and other income, net was $14,000 as compared to $36,000 for the three months ended June 30, 2024.

The decreased interest and other income,

net of $22,000 was primarily the result of the lower yields related to the investments in mutual funds and lower balances of such investments

during the three months ended June 30, 2025.

For the three months ended September 30, 2025, Interest and other income,

net was $14,000 as compared to $20,000 for the three months ended September 30, 2024.

The decreased interest and other income, net of

$6,000 was primarily the result of the lower yields related to the investments in mutual funds and no investments in U.S.

Treasury securities

during the three months ended September 30, 2025.

For the three months

ended June 30, 2025 and 2024, the Company recorded no income tax expense from operations.

ended September 30, 2025 and 2024, the Company recorded no income tax expense from operations.

No tax benefit has been recorded in relation

to the pre-tax loss for the three months ended June 30, 2025 and 2024, due to a full valuation allowance to offset any deferred tax asset

related to net operating loss carry forwards attributable to the losses.

Six months ended June 30, 2025 compared to the six months ended

June 30, 2024

For the six months ended June 30, 2025, the Company

had a loss from operations of $500,000 compared to a loss from operations before income taxes of $452,000 for the six months ended June

to the pre-tax loss for the three months ended September 30, 2025 and 2024, due to a full valuation allowance to offset any deferred tax

asset related to net operating loss carry forwards attributable to the losses.

Nine months ended September 30, 2025 compared to the nine months

ended September 30, 2024

For the nine months ended September 30, 2025,

the Company had a loss from operations of $754,000 compared to a loss from operations before income taxes of $683,000 for the nine months

ended September 30, 2024.

The increased loss from operations of $71,000

was primarily a result of a decrease in Interest and other income, net of $57,000, offset by a decrease in other operating expenses of

$9,000 during the six months ended June 30, 2025.

was primarily a result of a decrease in Interest and other income, net of $63,000, decrease of Other operating expenses of $2,000, and

an increase in Compensation and benefits of $10,000 during the nine months ended September 30, 2025 as compared to September 30, 2024.

Compensation and benefits

For the six months ended June 30, 2025 and 2024,

Compensation and benefits were $228,000.

For the nine months ended September 30, 2025, Compensation and benefits

were $345,000 compared to $335,000 for the nine months ended September 30, 2024.

The increased Compensation and benefits of $10,000 was

the result of increased payroll benefits.

Other operating expenses

For the six months ended June 30, 2025, Other

operating expenses were $317,000 as compared to $326,000 for the six months ended June 30, 2024.

The decreased operating expenses of $9,000

were primarily the result of decreased travel and entertainment expenses of $11,000, decreased professional fees of $2,000, offset by

increased other expenses of $4,000.

For the nine months ended September 30, 2025,

Other operating expenses were $468,000 as compared to $470,000 for the nine months ended September 30, 2024.

The decreased operating expenses

of $2,000 were primarily the result of decreased travel and entertainment expenses of $24,000, offset by increased professional fees of

$16,000, and increased other expenses of $6,000.

Interest and other income, net

For the six months ended June 30, 2025, Interest

and other income, net was $45,000 as compared to $102,000 for the six months ended June 30, 2024.

The decreased interest and other income,

net of $57,000 was primarily the result of the lower yields related to the investments in U.S.

Treasury securities and mutual funds and

lower balances of such investments during the six months ended June 30, 2025.

For the six months ended

June 30, 2025 and 2024, the Company recorded no income tax expense from operations.

No tax benefit has been recorded in relation to the

pre-tax loss for the six months ended June 30, 2025 and 2024, due to a full valuation allowance to offset any deferred tax asset related

to net operating loss carry forwards attributable to the losses.

For the nine months ended September 30, 2025, Interest and other income,

net was $59,000 as compared to $122,000 for the nine months ended September 30, 2024.

The decreased interest and other income, net of

$63,000 was primarily the result of the lower yields related to the investments in U.S.

Treasury securities and mutual funds and lower

balances on investments in U.S.

Treasury securities during the nine months ended September 30, 2025.

For the nine months ended

September 30, 2025 and 2024, the Company recorded no income tax expense from operations.

No tax benefit has been recorded in relation

to the pre-tax loss for the nine months ended September 30, 2025 and 2024, due to a full valuation allowance to offset any deferred tax

asset related to net operating loss carry forwards attributable to the losses.

Financial condition

Liquidity and Capital Resources

At June 30, 2025, the Company had cash and cash

equivalents totaling $394,000 and investments in mutual funds totaling $1,464,000 which it intends

to use to acquire interests in one or more operating businesses and to fund the Company’s general and administrative expenses.

directors will also consider alternatives for distributing some or all of its cash and cash equivalents and investments to stockholders.

The Company believes that its working capital is sufficient to support its operating requirements through September 30, 2026.

At September 30, 2025, the Company had cash and

cash equivalents totaling $137,000 and investments in mutual funds totaling $1,478,000 which it

intends to use to acquire interests in one or more operating businesses and to fund the Company’s general and administrative expenses.

The directors will also consider alternatives for distributing some or all of its cash and cash equivalents and investments to stockholders.

The Company believes that its working capital is sufficient to support its operating requirements through November 30, 2026.

Cash equivalents represent short-term, highly

2 unchanged sentences

The decrease in cash and cash equivalents of $1,303,000

for the six months ended June 30, 2025 was primarily the result of $496,000 used in operating activities, $574,000 used in the purchase

for the nine months ended September 30, 2025 was primarily the result of $739,000 used in operating activities, $588,000 used in the purchase

of mutual funds, offset by the sale and the redemption of investments of $24,000.

2 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