What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-06-26 compared with 2025-06-30 · 139 added, 110 removed, 542 unchanged (31% of the section changed)

8 unchanged sentences

the Board of Directors and

of PCS Edventures!, Inc.

Stockholders of PCS Edventures!, Inc.

on the Financial Statements

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Audit Matters

critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated

or required to be communicated to the audit committee and that:

(1) relate to accounts or disclosures that are material to the financial

statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters

does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit

matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

740 Income Taxes discusses the considerations for valuing deferred tax assets.

The Company has significant net operating losses (NOLs)

resulting in the recognition of a significant deferred tax asset.

The Company has determined that the asset will be fully realized based

on current earnings trends.

The Company uses judgment in order to determine whether an allowance is needed.

We considered this a significant

estimate that involved subjective judgments made by management.

We Addressed it During Our Audit

tested management’s determination and calculations of their tax provision and deferred taxes, to ensure they were recorded in accordance

with ASC 740 Income Taxes.

Haynie & Company

audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be

communicated to the audit committee and that:

(1) relate to accounts or disclosures that are material to the financial statements and

(2) involve especially challenging, subjective, or complex auditor judgments.

We determined that there are no critical audit matters.

Salt Lake City, Utah

June 26, 2026

We have served as the Company’s auditor since 2019.

PCAOB # 457 We have served as the Company’s auditor since 2019.

EDVENTURES!, INC.

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no shares issued and outstanding

Common stock, no par value, 150,000,000 authorized shares, 122,189,763 and 124,733,494 shares issued and outstanding

Common stock, no par value, 12,000,000 authorized shares,

9,781,828 issued and 9,707,960 outstanding

10,182,853 shares issued and outstanding, respectively

Additional Paid-in Capital

Treasury stock, 73,868 shares and 0 shares, respectively

Accumulated deficit

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Net interest income

Loss on lease modification

Total Other Income

NET INCOME BEFORE INCOME TAX PROVISION

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of Stockholders’ Equity

# of Common Shares O/S

Additional Paid-in Capital

Stockholders’ Equity

Stockholders’

Balance at 3/31/2024

$ ( 32,914,642 )

Shares Redeemed

Private shares purchased and cancelled

Balance at 3/31/2025

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$ ( 31,967,777 )

Shares Redeemed

( 2,543,731 )

Treasury shares purchased

Treasury shares cancelled

Private shares purchased and cancelled

Shares issued for Board comp

Balance at 3/31/2026

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$ ( 31,714,595 )

$ ( 114,233 )

$ ( 31,714,595 )

accompanying notes are an integral part of these financial statements.

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Provision for income tax

( 1,529,793 )

Stock based compensation for board member

Bad debt expense

Changes in operating assets and liabilities

(Increase) decrease in accounts receivable

( 1,298,599 )

(Increase) decrease in prepaid expenses

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CASH FLOWS FROM FINANCING ACTIVITIES

Common stock repurchased and cancelled

Cash paid for private purchases of common stock

Cash paid for purchase of Treasures shares in open market

Net Cash Used by Financing Activities

Net Increase in Cash

Net Increase (Decrease) in Cash

Cash at Beginning of Period

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Cash paid for interest

Non Cash Investing and Financing Transactions:

Right of use assets obtained in exchange for new operating lease liabilities

accompanying notes are an integral part of these financial statements.

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“PCSV,” “we,” “our,” “us” or similar words), incorporated in 1994, in the State of Idaho.

PCS specializes in experiential, hands-on, K12 education and drone technology.

PCS specializes in experiential, hands-on, TK12 education and drone technology.

PCS has extensive experience and intellectual property

(“IP”) that includes drone hardware, product designs, and K-12 curriculum content.

(“IP”) that includes drone hardware, product designs, and TK-12 curriculum content.

PCS continually develops new educational

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has developed and sells a variety of STEM education products into the K12 market, which can be categorized as follows:

Enrichment Programs

camps are for the informal learning market and are designed to be highly engaging for students while easily administered by the instructor.

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and Claymation.

Discover Series Products

Series Products

products are designed for the makerspace environment and include engaging STEM activities that motivate students to pursue educational

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and Discover Digital Video

BrickLAB Products

products are designed for the grade school market and use the Company’s proprietary bricks (which are Lego compatible) and curriculum

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The Company offers a variety of grade-specific BrickLAB

Discover Drones, Add-on

Drone Packages and Ala Carte Drone Items

Drones, Add-on Drone Packages and Ala Carte Drone Items

products are designed around using drones as a platform for STEM education and career exploration.

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and all the spare parts and ala carte drone items offered in the Company’s comprehensive drone packages.

STEAMventures BUILD Activity

STEAMventures

BUILD Activity Book

series of activity books are designed for the TK-3 market.

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The Company also provides the necessary bricks for the builds in the activity books as a separate, but related product.

Professional Development

Development Training

Company offers professional development trainings, for a fee, to educators who are implementing the Company’s products in their

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and Cash Equivalents

and cash equivalents, totaling $ 3,223,147 and $ 1,329,708 at March 31, 2025, and March 31, 2024, respectively, consist of operating and

and cash equivalents, totalling $ 2,674,538 and $ 3,223,147 at March 31, 2026, and March 31, 2025, respectively, consist of operating and

savings accounts.

For purposes of the statements of cash flows, the Company considers all highly-liquid financial instruments with original

maturities of three months or less at date of purchase to be cash equivalents.

For purposes of the statements of cash flows, the Company considers all highly-liquid investments with original maturities

of three (3) months or less at date of purchase to be cash equivalents.

preparation of these financial statements in conformity with Generally Accepted Accounting Principles (“GAAP”) requires management

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The Company’s significant estimates include reserves related to accounts receivable and inventory,

the valuation allowance related to deferred tax assets, the valuation of equity instruments, and debt discounts.

and the valuation allowance related to deferred tax assets.

Concentration

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government securities.

a Schwab account that is used to make open market purchases of our common stock from time to time.

This account holds cash, that is invested

in a government money market fund, which is used to fund these purchases.

goods inventory is composed of items produced in-house, as well as items from outside suppliers.

These items include, but are not limited

to, Fischertechnik® manipulatives, Brick manipulatives, drone components, robotics components, furniture units, curriculum, and other

to, Fischertechnik® manipulatives, Brick manipulatives, drone components, robotics components, school supplies, curriculum, and other

miscellaneous items used in our various labs.

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assets and liabilities were reported separately.

account for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”).

account for income taxes in accordance with ASC 740.

ASC 740 prescribes the use of the asset and

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ability to utilize any future tax benefit from our deferred tax assets.

accordance with GAAP, the Company has analyzed its filing positions in all jurisdictions where it is required to file income tax returns

accordance with GAAP, the Company has analysed its filing positions in all jurisdictions where it is required to file income tax returns

for the open tax years in such jurisdictions.

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The Internal Revenue Code contains provisions which reduce or limit the availability

and utilization of net operating loss (“NOL”) carry forwards in the event of a more than 50 % change in ownership.

an ownership change occurs with the Company, the use of these net operating losses could be limited.

and utilization of net operating loss (“NOL”) carry forwards in the event of a more than a 50-percentage point change in

If such an ownership change occurs with the Company, the use of these net operating losses could be limited.

table below details the years that remain open to tax examinations:

OF INCOME TAX EXAMINATION

Fiscal Year End

Company accounts for revenue in accordance with FASB ASC 606, Revenue from Contracts with Customers , which we adopted on April

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The Company had $ 20,026 of deferred revenue as of March 31, 2025.

following table presents the changes in the Company’s deferred revenue balance for the years ended March 31, 2026, and 2025.

OF DEFERRED REVENUE

March 31, 2026

March 31, 2025

Deferred revenue beginning balance

Consideration received from customers

Revenue recognized during the period

Deferred revenue ending balance

of our contracts with customers contain transaction prices with fixed consideration;

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segment expenses on an annual basis.

in fiscal year 2026 annual reporting, we adopted Accounting Standards Update (ASU) No.

2023-09, Income Taxes (Topic 740):

to Income Tax Disclosures.

This new standard requires enhanced annual disclosures primarily through greater disaggregation in our effective

tax rate reconciliation and expanded tabular information regarding income taxes paid.

We adopted the amendments on a prospective basis.

The adoption of this standard only resulted in modified financial statement disclosures and did not have a material impact on our consolidated

financial position, results of operations, or cash flows.

Reclassifications

reclassifications of tax expenses and tax provisions have been made to the financial statements for the year ended March 31, 2025, to

conform to the financial presentation for the year ended March 31, 2026.

These reclassifications had no effect on the net income or cash

flows as previously reported.

Segments and Related Disclosures

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The Company’s objective in making resource allocation decisions is to optimize the financial results.

The accounting policies of our STEM Supplies and Curriculum segment are the same as those described in the summary of significant accounting

The accounting policies of our STEM Supplies and Curriculum segment are the same as those described in the summary of significant account

policies herein.

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earnings per share does not assume exercise or conversion of securities that would have an anti-dilutive effect.

The following schedules

The following schedule

presents the calculation of basic and diluted net income per share:

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Weighted average number of common shares outstanding Fully Diluted

Income for the year ended March 31, 2025, and 2024, was $ 946,865 and $ 4,441,188 , respectively.

Income for the years ended March 31, 2026, and 2025, was $ 253,182 and $ 946,865 , respectively.

of March 31, 2026, and March 31, 2025, the Company had no outstanding dilutive instruments.

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31, 2026, the Company had $ 3,227 of other receivables outstanding.

As of March 31, 2024, the Company had no other receivables outstanding.

As of March 31, 2025, the Company had $ 55 of other receivables outstanding.

5 - PREPAID EXPENSES

expenses for the periods are as follows:

OF PREPAID EXPENSES

SCHEDULE OF PREPAID EXPENSES

March 31, 2026

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Company has 12,000,000 authorized shares of common stock, no par value.

At March 31, 2025, the total common shares issued and outstanding

was 122,189,763 .

At March 31, 2026, the total common shares issued was 9,781,828

and the total common shares outstanding was 9,707,960 .

As of March 31, 2025, the total common shares issued and outstanding was 10,182,853 .

the years ended March 31, 2026, and 2025, the Company had no option expense.

the years ended March 31, 2025, and 2024, the Company did no t issue any shares of common stock.

the year ended March 31, 2025, the Company made the following common stock repurchase transactions:

the year ended March 31, 2026, the Company issued 6,668 shares of Rule 144 “restricted” common stock to Sean P.

our independent Board member as compensation for his services.

During the year ended March 31, 2025, no common stock was issued for Board

services or any other reason.

the year ended March 31, 2026, the Company made the following repurchase transactions:

OF COMMON STOCK REPURCHASE TRANSACTIONS

Total Consideration

shares repurchased were then immediately cancelled.

During the year ended March 31, 2024, the Company repurchased 998,985 shares common

stock at $ 0.065 per share for total payments of $ 64,933 , then cancelled the shares.

Preferred Stock

the year ended March 31, 2026, the Company cancelled 319,681 shares of Treasury stock.

the year ended March 31, 2025, the Company repurchased 211,977 shares common stock for total consideration of $ 547,713 .

Company has 20,000,000 authorized shares of preferred stock.

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the economic environment based on the information available at commencement date, in determining the present value of future payments.

The right of use asset for operating leases is measured using the lease liability adjusted for the impact of lease payments made prior

to commencement, lease incentives received, initial direct costs incurred and any asset impairments.

Lease terms may include options

to extend or terminate the lease when it is reasonably certain that the option will be exercised.

Lease expense for minimum lease payments

is recognized on a straight-line basis over the term of the lease.

The right of use asset for operating leases

measured using the lease liability adjusted for the impact of lease payments made prior to commencement, lease incentives received, initial

direct costs incurred and any asset impairments.

Lease terms may include options to extend or terminate the lease when it is reasonably

certain that the option will be exercised.

Lease expense for minimum lease payments is recognized on a straight-line basis over the term

of the lease.

Company re-measures and reallocates the consideration in a lease when there is a modification of the lease that is not accounted for

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first payment due February 3, 2024.

Equipment lease expense was $ 57,215 for the year ended March 31, 2025, and $ 43,127 for year ended

March 31, 2024.

Equipment lease expense was $ 57,215 for the years ended March 31, 2026, and 2025.

of March 31, 2026, accounted for and presented under ASC 842 guidance, the future minimum lease payments on operating leases, were as

minimum lease obligation over the next six (6) years

minimum lease obligation over the next five (5) years

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS

imputed interest / present value discount

SCHEDULE OF LEASE PAYABLE

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Lease payable, Current liabilities

Current liabilities

Lease payable

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Lease payable, Long-term liabilities

Long-term liabilities

Total lease payable

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31, 2026, the Company’s provision for income taxes was ($ 68,273 ).

For the fiscal year ending March 31, 2025, the Company’s

provision for income taxes was ($ 317,235 ).

ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax

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with federal, state, and city tax laws.

The Company’s management does not expect that the total amount of unrecognized tax benefits

will materially change over the next 12 months.

Management does not expect that the total amount of unrecognized tax benefits will materially

change over the next 12 months.

we believe that our tax estimates are reasonable, the ultimate tax determination involves significant judgments that could become subject

1 unchanged sentence

We periodically assess the likelihood of adverse outcomes resulting

from these examinations to determine the impact on our deferred taxes and income tax liabilities and the adequacy of our provision for

income taxes.

Changes in income tax legislation, statutory income tax rates or future taxable income levels, among other things, could

materially impact our valuation of income tax assets and liabilities and could cause our income tax provision to vary significantly among

financial reporting periods.

from these examinations to determine the impact on

deferred taxes and income tax liabilities and the adequacy of our provision for income taxes.

Changes in income tax legislation, statutory

income tax rates or future taxable income levels, among other things, could materially impact our valuation of income tax assets and

liabilities and could cause our income tax provision to vary significantly among financial reporting periods.

Company files income tax returns in the United States, the State of Idaho and the State of California.

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Net deferred tax assets

Less valuation allowance

Net deferred tax assets

reconciliation of the Company’s net income taxes for fiscal years 2026, and 2025 are as follows:

SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION

OF RECONCILIATION NET INCOME TAXES

March 31, 2026

March 31, 2025

Federal income tax at statutory rate

State taxes, net of Federal benefit

Change in valuation allowance

( 2,355,877 )

(Income Tax Benefit) Provision

( 1,529,793 )

Current federal

Current state

Deferred federal

Deferred state

Total tax provision

Net income before tax provision

Tax at federal statutory rate

Non-deductible expenses

Temporary differences

State income taxes, net of federal benefit

Return-to-provision adjustments/other

Total income tax provision

Company files income tax returns in the United States, the State of Idaho, and the State of California.

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Unused operating loss carryforward March 31, 2025

Return to Provision

Operating loss carryforwards realized

1 unchanged sentence

12 - SUBSEQUENT EVENTS

May 21, 2025, the Company purchased 100,000 shares of its common stock on the open market at $ 0.136 in a block trade for a total of $ 13,600 .

On April 10, 2025, the Company issued a press release disclosing that the Board had authorized a share repurchase program to repurchase

up to 10 million shares of its common stock over the next three (3) years.

This purchase was part of that authorized buyback.

intends to continue to repurchase its common stock in the open market from time to time.

When the Company accumulates a significant amount

of its common shares, it intends to obtain those shares in certificate form and have its transfer agent cancel the shares.

May 23, 2025, the Company concluded a private stock repurchase from a shareholder, buying 284,959 shares at $ 0.14 per share, for total

consideration of $ 39,894 .

June 2, 2025, the common stock of the Company began trading on the OTC Markets QB Tier.

Prior to that, it traded on the OTC Markets Pink

Tier (which will become the OTCID on July 1, 2025).

late May and early June, Management began the planning process for having an Annual Shareholders Meeting this year.

Management plans

to have the Meeting on Friday, September 26, 2025.

The time of the meeting has not yet been determined.

Further details will be disclosed

when they become available.

April 1, 2026, the Company issued 20,000 shares of Rule 144 “restricted” common stock to Sean Iddings, our Independent board

member, for services rendered in that capacity for the quarter ended March 31, 2026.

Accounting for the effects of the reverse stock

split, the number of shares issued to Mr.

Iddings was 1,667 .

April 6, 2026, we purchased 219,106 shares of our common stock in the open market at $ 0.125 per share.

The total amount of the transaction

was $ 27,395 , which included a $ 7 commission.

Accounting for the effects of the reverse stock split, the number of shares purchased in

this transaction was 18,259 .

April 15, 2026, we purchased 167,999 shares of our common stock in the open market at $ 0.125 per share.

The total amount of the transaction

was $ 21,007 , which included a $ 7 commission.

Accounting for the effects of the reverse stock split, the number of shares purchased in

this transaction was 14,000 .

April 21, 2026, we purchased 67 shares of our common stock in the open market at $ 0.1355 per share.

The total amount of the transaction

was $ 16 , which included a $ 7 commission.

Accounting for the effects of the reverse stock split, the number of shares purchased in this

transaction was 6 .

May 4, 2026, the one (1) for 12 reverse split of our outstanding common stock, which was approved at our Special Meeting of Shareholders

on April 20, 2026, became effective.

May 15, 2026, we purchased 291 shares of our common stock in the open market at $ 1.35 per share.

The total amount of the transaction

was $ 400 which included a $ 7 commission.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

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-K

Item 8. Financial Statements and Supplementary Data