What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-05-15 compared with 2025-11-14 · 49 added, 77 removed, 54 unchanged (70% of the section changed)

12 unchanged sentences

as well as other similar words and expressions of the future, are intended to identify forward-looking statements.

Factors that may cause actual results to differ

from those results expressed or implied, include, but are not limited to, those listed under “Risk Factors” in our Annual

Report on Form 10-K for the year ended December 31, 2024 filed by the Company with the Securities and Exchange Commission (the “SEC”)

Factors that may cause actual results to differ from

those results expressed or implied, include, but are not limited to, those listed under “Risk Factors” in our Annual Report

on Form 10-K for the year ended December 31, 2025 filed by the Company with the Securities and Exchange Commission (the “SEC”)

on March 30, 2026.

16 unchanged sentences

General Overview

The Company is a “shell company”,

as defined in Rule 12b-2 of the Exchange Act.

Because we are a shell company, our stockholders are unable to utilize Rule 144

to sell “restricted stock” as defined in Rule 144 or to otherwise use Rule 144 to sell our securities, and we are ineligible

to utilize registration statements on Form S-3 or Form S-8 for so long as we remain a shell company and for 12 months thereafter.

a consequence, among other things, the offering, issuance and sale of our securities is likely to be more expensive and time consuming

and may make our securities less attractive to investors.

The Company is a “shell company”, as defined

in Rule 12b-2 of the Exchange Act.

Because we are a shell company, our stockholders are unable to utilize Rule 144 to sell

“restricted stock” as defined in Rule 144 or to otherwise use Rule 144 to sell our securities, and we are ineligible to utilize

registration statements on Form S-3 or Form S-8 for so long as we remain a shell company and for 12 months thereafter.

consequence, among other things, the offering, issuance and sale of our securities is likely to be more expensive and time consuming and

may make our securities less attractive to investors.

The Company’s

11 unchanged sentences

Results of operations

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 $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 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 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 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 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 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.

Three months ended March 31, 2026 compared to the three months ended

March 31, 2025

For the three months ended March 31, 2026, the Company

had a loss from operations of $261,000 compared to a loss from operations of $256,000 for the three months ended March 31, 2025.

The increased loss from operations of $5,000

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.

was primarily a result of a decrease in Interest and other income, net of $21,000, an increase in Compensation and benefits of $7,000,

offset by a decrease in Other operating expenses of $23,000 during the three months ended March 31, 2026 as compared to March 31, 2025.

Compensation and benefits

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.

For the three months ended March 31, 2026, Compensation

and benefits were $122,000 as compared to $115,000 for the three months ended March 31, 2025.

The increased Compensation and benefits

of $7,000 was the result of increased payroll benefits.

Other operating expenses

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.

For the three months ended March 31, 2026, Other operating

expenses were $149,000 as compared to $172,000 for the three months ended March 31, 2025.

The decreased operating expenses of $23,000

were primarily the result of decreased professional fees of $14,000, decreased travel and entertainment of $13,000, decreased other expenses

of $7,000, offset by increased fees related to the repair and maintenance of Company owned dam properties of $11,000.

The dam properties

were fully impaired as of December 31, 2018.

Interest and other income, net

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.

For the three months ended March 31, 2026, Interest

and other income, net was $10,000 as compared to $31,000 for the three months ended March 31, 2025.

The decreased interest and other income,

net of $21,000 was primarily the result of the lower yields related to the investments in mutual funds and lower balances on such investments

during the three months ended March 31, 2026.

For the three months ended March 31, 2026 and 2025, the Company recorded

no income tax expense from operations.

The Company recorded a full

valuation allowance against its net deferred tax assets as of March 31, 2026 and 2025.

Due to a full valuation allowance on the deferred

tax assets related to net operating loss carryforwards, no tax benefit has been recorded in relation to the pre-tax loss for the years

ended March 31, 2026 and 2025.

Financial condition

Liquidity and Capital Resources

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

liquid investments, which are readily convertible to cash and have maturities of three months or less at time of purchase.

to note 5 of the Notes to Condensed Consolidated Financial Statements for classification of Investments.

At March 31, 2026, the Company had cash and cash

equivalents totaling $13,000 and investments in mutual funds totaling $1,076,000 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 acknowledges that its working capital may not be sufficient to support its operating requirements through May 31, 2027.

Cash equivalents represent short-term, highly liquid

investments, which are readily convertible to cash and have maturities of three months or less at time of purchase.

Please refer to note

5 of the Notes to Condensed Consolidated Financial Statements for classification of Investments.

The decrease in cash and cash equivalents of $20,000

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

for the three months ended March 31, 2026 was primarily the result of $211,000 used in operating activities, $10,000 used in the purchase

of mutual funds, offset by the sale and the redemption of investments of $201,000.

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