Item 2. Management’s Discussion and Analysis
Item 2. Management’s Discussion and Analysis
of Financial Condition and Results of Operations
The following discussion and analysis of our results
of operations and financial condition should be read in conjunction with our financial statements and related notes appearing elsewhere
in this report. This discussion and analysis contain forward looking statements that involve risks, uncertainties and assumptions. The
actual results may differ materially from those anticipated in these forward looking statements as a result of certain factors, including
but not limited to, those which are not within our control.
Overview
The Company was incorporated in the State of Nevada
on June 12, 2018. On June 7, 2023, the Company (“M2i Global, Inc.”) (formerly known as “Inky Inc.”) filed with
the Secretary of State of Nevada an Amendment to the Certificate of Incorporation to change its corporate name from “Inky, Inc.”,
to “M2i Global, Inc.”, effective June 7, 2023.
The Company was formerly engaged in developing mobile
software applications for smartphones and table devices. During May 2023, the Company became the sole shareholder of U.S. Minerals and
Metals Corp., a Nevada corporation (“USMM”) through the issuance of preferred and common shares for cash. Concurrently, the
Company shifted its operations to specialization in the development and execution of a complete global value supply chain for critical
minerals for the U.S. government and U.S. free trade partners. The Company’s vision is to develop and execute a complete global
value supply chain for critical minerals for the United States government and certain trading partners of the United States. To implement
this vision, the Company intends to operate three key business divisions as set forth below:
●
M2i Mining, Processing & Refining: a business engaged in sourcing, extraction, processing, refining, transporting and selling primary minerals and metals;
●
M2i Scrap & Recycling: a business engaged in the collection, processing, transporting and selling of scrap, recycled and reused metals; and
●
M2i Government and Defense Industrial Base: a business engaged in aligning with U.S. policy to facilitate participation in U.S. government programs such as the creation and management of a Strategic Minerals Reserve as an enhancement of the U.S. government’s National Defense Stockpile.
On June 30, 2024, the Company and Komodo Capital (“Komodo”),
a company specializing in the development and execution of a complete global value supply chain for critical minerals for the U.S. government
and U.S. free trade partners, entered into a strategic partnership (the “Strategic Partnership”), in order for Komodo to use
its relationships to provide the Company with access to various critical minerals, with an ultimate goal of suppling the U.S. government
and U.S. free trade partners with these critical minerals. Komodo Capital also offers comprehensive advisory services. The Company issued
8,000,000 shares of common stock as part of this agreement.
On June 30, 2024, the Company and NTM Minerals Limited
(“NTM”), a company specializing in the development and execution of a complete global value supply chain for critical minerals
for the U.S. government and U.S. free trade partners, entered into an exclusive offtake agreement (the “Offtake Agreement”),
in which NTM will provide for 88,000 tonnes of copper, currently valued at approximately $850 million. The Company is granted offtake
rights for a maximum of 88,000 tonnes of copper that is sourced from the Redbank tenements in return for 12 million shares of the Company’s
common stock. NTM shall receive additional payments for incremental resource increases or upgrades from the Redbank tenements. M2i retains
the option to participate in production pre-funding opportunities.
Recently Issued Accounting Pronouncements
Any new accounting pronouncements issued by the Financial
Accounting Standards Board (“FASB”) issued during the three months ended February 28, 2025 and through the filing of this
report have been or will be adopted by the Company. Management does not believe the adoption of any of these accounting pronouncements
has had or will have a material impact on the Company’s financial statements.
All other new accounting pronouncements issued but
not yet effective or adopted have been deemed not to be relevant to us, hence are not expected to have any impact once adopted.
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Summary of Significant Accounting Policies
There have been no changes to the Summary of Significant
Accounting Policies described in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on April 16, 2024.
Liquidity and Capital Resources
At February 28, 2025, the Company had a cash balance
of $21,929, as compared to a cash balance of $80,281 at November 30, 2024. The Company incurred negative cash flow from operations of
$322,225 for the period ended February 28, 2025, as compared to negative cash flow from operations of $590,921 in the comparable prior
year period. The decrease in negative cash flows from operations was primarily from an increase in accounts payable and accrued expenses.
Cash flows from financing activities during the period ended February 28, 2025, totaled $263,873, as compared to cash flows from financing
activities in the comparable prior year period of $565,950. The decrease in cash provided by financing activities is primarily the result
of a decrease of $321,844 in proceeds from the sale of shares of common stock. Going forward, the Company expects capital expenditures
to increase significantly as operations are expanded pursuant to its current growth plans. The Company anticipates the requirement to
raise significant debt or equity capital in order to fund future operations.
Results of Operations
Comparison of the Three Months Ended February 28,
2025 and February 29, 2024
For the comparable three months ended February 28,
2025 and February 29, 2024, the Company’s revenues totaled $0. We anticipate the Company’s revenues in upcoming quarters
may increase significantly as management attempts to implement the Company’s new business model.
For the three months ended February 28, 2025, our
operating expenses increased to $1,337,835 compared to $675,185 for the comparable period in 2024. The increase of $662,650 was primarily
due to an increase in professional fees. We anticipate future operating expenses to increase with the expansion of operations, resulting
in increased expenses related to compensation and professional fees.
Off Balance Sheet Arrangements
We do not have any off-balance sheet arrangements.
Cybersecurity
Risk Management and Strategy
We recognize the critical importance of developing,
implementing, and maintaining robust cybersecurity measures to safeguard our information systems and protect the confidentiality, integrity,
and availability of our data.
Managing Material Risks & Integrated Overall Risk
Management
We have strategically integrated cybersecurity risk
management into our broader risk management framework to promote a company-wide culture of cybersecurity risk management. This integration
ensures that cybersecurity considerations are an integral part of our decision-making processes at every level. Our management team continuously
evaluates and addresses cybersecurity risks in alignment with our business objectives and operational needs.
Oversee Third-party Risk
Because we are aware of the risks associated with
third-party service providers, we have implemented stringent processes to oversee and manage these risks. We conduct thorough security
assessments of all third-party providers before engagement and maintain ongoing monitoring to ensure compliance with our cybersecurity
standards. The monitoring includes annual assessments of the SOC reports of our providers and implementing complementary controls. This
approach is designed to mitigate risks related to data breaches or other security incidents originating from third parties.
Risks from Cybersecurity Threats
We have not encountered cybersecurity challenges that
have materially impaired our operations or financial standing.
Item 3. Qualitative and Quantitative Disclosures
about Market Risk.
We are a smaller reporting company and, therefore,
we are not required to provide information required by this item.
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.