Item 1A. Risk Factors
ITEM
1A. RISK FACTORS.
You
should consider the “Risk Factors” included under Item 1A of our Annual Report on Form 10-K for the year ended February 28,
2026 filed with the SEC on May 29, 2026, as well as the following updated Risk Factor:
As
of May 31, 2026, we had $803,490 in cash and a working capital deficit of $1,599,429. Our existing cash on hand and anticipated revenues
are not sufficient to fund our anticipated operating costs. We will need to raise additional financing to fund our operations, maintain
compliance with the Nasdaq continued listing requirements and implement our business plan. There is no assurance as to the amount and
availability of any required future financing or the terms thereof. Such financing, if in the form of equity, may be highly dilutive
to our existing stockholders and may otherwise include onerous terms. If in the form of debt, such financing may include covenants and
repayment obligations which may be difficult to meet and that could adversely affect our business operations. We have no current understanding
or arrangement to obtain any additional financing. To the extent that funds are not available to us, we may be required to delay, limit,
or terminate our business operations and may lose our Nasdaq listing.
In
light of the foregoing, there is substantial doubt about our ability to continue as a going concern for 12 months from the date of the
filing of this Quarterly Report.
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