What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-14 compared with 2025-05-15 · 58 added, 38 removed, 130 unchanged (42% of the section changed)

45 unchanged sentences

The Canadian dollar depreciated against the U.S.

dollar when comparing the average exchange rate for the three-months ended March 31, 2025 versus the comparative 2024 period.

dollar when comparing the average exchange rate for the six-months ended June 30, 2025 versus the comparative 2024 period.

This decreased both Canadian dollar revenues and expenses once translated into U.S.

dollars, but because our Canadian dollar revenue and expenses are evenly matched, the exchange rate fluctuation had minimal impact on our net income and cash flows.

Our revenue increased 3% this quarter versus the comparative period and on an FX-neutral basis our revenue growth was 5%.

Our revenue increased 5% and 4% for the three and six-month periods ending June 30, 2025 versus comparative periods and on an FX-neutral basis our three and six-month revenue growth was 6%.

The FX-neutral results are calculated by translating Canadian dollar denominated revenue into U.S.

2 unchanged sentences

We reduced the number of development staff in late 2024 as some of our major development projects are near completion.

However, our development cost expense increased this quarter due to a higher percentage of development salaries being expensed rather than capitalized, as more development time was spent on system maintenance and other development activities that did not meet the criteria for capitalization.

However, our development cost expense significantly increased this quarter due to a higher percentage of development salaries being expensed rather than capitalized, as more development time was spent on system maintenance and other development activities that did not meet the criteria for capitalization.

While this had no impact on our cashflow, it had a negative impact on our earnings as we are expensing development costs in the current period related to past capitalized development.

24 unchanged sentences

Results of Operations

Three-months ended March 31,

Three-months ended June 30,

Corporate Quotestream

3 unchanged sentences

Total subscription revenue

Total licensing revenue increased 3% for the three-months ended March 31, 2025 from the comparative 2024 period.

On an FX-neutral basis our revenue growth was 5% as the Canadian dollar depreciated versus the U.S.

dollar since the comparative period.

Total Portfolio Management Systems revenue increased 8% for the three-months ended March 31, 2025 from the comparative 2024 period.

Corporate Quotestream revenue increased 11% from the comparative 2024 period.

The increase was due to increases in both the number of customers and the average revenue per customer from the comparative period.

The increase was offset by FX rate fluctuations as on an FX-neutral basis Corporate Quotestream revenue grew 13% from the comparative period

Individual Quotestream revenue decreased 3% for the three-months ended March 31, 2025 from the comparative 2024 period due primarily to FX rate fluctuations as on an FX-neutral basis our revenue for the quarter was unchanged from the comparative period.

Interactive Content and Data APIs revenue decreased 1% for the three-months ended March 31, 2025 from the comparative period in 2024 due primarily to FX rate fluctuations as on an FX-neutral basis our quarterly revenue grew 1% from the comparative period.

Six-months ended June 30,

Corporate Quotestream

Individual Quotestream

Total Portfolio Management Systems

Interactive Content and Data APIs

Total subscription revenue

Total licensing revenue increased 5% and 4% for the three and six-months ended June 30, 2025 from the comparative 2024 periods.

On an FX-neutral basis our revenue growth was 6% as on average the Canadian dollar depreciated versus the U.S.

dollar since the comparative periods.

Total Portfolio Management Systems revenue increased 11% and 9% for the three and six-months ended June 30, 2025 from the comparative 2024 periods.

Corporate Quotestream revenue increased 14% and 12% from the comparative 2024 periods.

The increases were due to increases in the average revenue per customer from the comparative periods.

Individual Quotestream revenue decreased 1% and 0% for the three and six-months ended June 30, 2025 from the comparative 2024 periods due primarily to FX rate fluctuations as on an FX-neutral basis our revenue for the quarter was unchanged from the comparative periods.

Interactive Content and Data APIs revenue increased 1% and decreased (0%) for the three and six-months ended June 30, 2025 from the comparative periods in 2024 however on an FX-neutral basis both our three and six-months revenue grew 1% from the comparative periods.

Cost of Revenue and Gross Profit Summary

Three-months ended March 31,

Three-months ended June 30,

Cost of revenue

Gross margin %

Six-months ended June 30,

Cost of revenue

Gross margin %

Our cost of revenue consists of fixed and variable stock exchange fees and data feed provisioning costs.

1 unchanged sentence

We capitalize the costs associated with developing new products during the application development stage.

Our cost of revenue increased 16% for the three-months ended March 31, 2025 from the comparative period in 2024.

Our cost of revenue increased 9% and 12% for the three and six-months ended June 30, 2025 from the comparative periods in 2024.

This was mainly due to increased stock exchange fees and increased amortization expenses associated with internally developed application software relating to new product development, data collection, and the expansion of our global market coverage.

Overall, the cost of revenue increased as a percentage of sales, as evidenced by our gross margin percentage that decreased to 44% for the three-months ended March 31, 2025 from 50% in the comparative 2024 period.

Overall, the cost of revenue increased as a percentage of sales, as evidenced by our gross margin percentage that decreased to 46% and 45% for the three and six-months ended June 30, 2025 from 48% and 49% in the comparative 2024 periods.

Operating Expenses Summary

Three-months ended March 31,

Three-months ended June 30,

Sales and marketing

2 unchanged sentences

Total operating expenses

Six-months ended June 30,

Sales and marketing

General and administrative

Software development

Total operating expenses

Sales and Marketing

Sales and marketing consist primarily of sales and customer service salaries, investor relations, travel and advertising expenses.

Sales and marketing expenses increased 6% for the three-months ended March 31, 2025, when compared to the same period in 2024.

The increase was mainly due to a non-recurring adjustment of $51,000 lowering sales personnel expense in the comparative period.

Without that one-time adjustment Sales and Marketing expenses would be relatively unchanged from the comparative period.

Sales and marketing expenses were flat versus the comparative periods, increasing 2% and 4% for the three and six-months ended June 30, 2025.

General and Administrative

General and administrative expenses consist primarily of salaries expense, office rent, insurance premiums, and professional fees.

General and administrative expenses decreased 13% for the three-months ended March 31, 2025, when compared to the same period in 2024.

The decrease is mainly a result of a decrease in professional fees from the comparative period, as well as a general reduction in general and administrative expenses resulting from the overall reduction in our staff count since the comparative period.

General and administrative expenses decreased 2% and 7% for the three and six-months ended June 30, 2025, when compared to the same periods in 2024.

The decrease is mainly due to a general reduction in general and administrative expenses resulting from the overall reduction in our staff count from the comparative periods.

Software Development

1 unchanged sentence

Software development expenses also include costs incurred to maintain our software applications.

Software development expenses increased 27% for the three-months ended March 31, 2025 when compared to the same period in 2024.

This was due to a decrease in the percentage of development salaries capitalized versus the comparative period as we capitalized 16% of development salaries this quarter versus 25% the comparative period.

Software development expenses increased 64% and 45% for the three and six-months ended June 30, 2025 when compared to the same periods in 2024.

This was due to a decrease in the percentage of development salaries capitalized versus the comparative periods as we capitalized 6% of development salaries this quarter versus 25% the comparative quarter, and 10% year to date compared to 24% in the comparative year to date period.

This increase was offset by the reduction in the number of development personnel as discussed in the Business Environment and Trends section above.

We capitalized $523,599 and $776,225 of development costs for the three-month periods ended March 31, 2025 and 2024, respectively.

These costs relate to the development of application software used by subscribers to access, manage, and analyze information in our databases.

We capitalized $314,519 and $838,118 of development costs for the three and six-month periods ended June 30, 2025.

We capitalized $867,400 and $1,682,715 of development costs for the three and six-month periods ended June 30, 2024, The costs relate to the development of application software used by subscribers to access, manage, and analyze information in our databases.

Capitalized costs associated with application software are amortized over their estimated economic life of three years.

Other Income and (Expense) Summary

Three-months ended March 31,

Three-months ended June 30,

Foreign exchange gain (loss)

1 unchanged sentence

Total other income (expense), net

Six-months ended June 30,

Foreign exchange gain (loss)

Interest expense, net

Total other income (expenses), net

Foreign Exchange Gain

We incurred foreign exchange gains of $5,962 and $25,307 for the three-months periods ended March 31, 2025 and 2024, respectively.

We incurred foreign exchange losses of $107,865 and $101,903 for the three and six-months ended June 30, 2025.

We incurred foreign exchange gains of $10,415 and $35,722 for the three and six-months periods ended June 30, 2024.

Foreign exchange gains and losses arise from the re-measurement of Canadian dollar monetary assets and liabilities into U.S.

2 unchanged sentences

Interest expense is netted against interest earned on cash balances.

Net interest expense of $2,387 and $953 were incurred for the three-months periods ended March 31, 2025 and 2024, respectively.

Net interest expenses of $13,380 and $419 were incurred for the three-months periods ended June 30, 2025 and 2024.

Net interest expenses of $35,722 and $1,372 were incurred for the six-months ended June 30, 2025 and 2024, respectively

Provision for Income Taxes

For the three-months periods ended March 31, 2025 and 2024, the Company recorded $66,151 and $738 in Canadian income tax expenses, respectively.

For the three-months ended June 30, 2025 and 2024, the Company recorded $2,770 and $730 in Canadian income tax expenses.

For the six-months ended June 30, 2025 and 2024, the Company recorded $68,921 and $1,468 in Canadian income tax expenses.

Net Loss for the Period

As a result of the foregoing, our net losses for the three-months periods ended March 31, 2025 and 2024 were $499,811 and $28,176, respectively.

The basic and diluted loss per share was $(0.01) and (0.00) for the three-months periods ended March 31, 2025 and 2024, respectively.

As a result of the foregoing, our net losses for the three-months ended June 30, 2025 and 2024 were $853,582 and $251,173.

For the six-months periods ended June 30, 2025 and 2024 our net losses were $1,353,393 and $279,349.

The basic and diluted loss per share was $(0.01) and $(0.00) for the three-months ended June 30, 2025 and 2024.

The basic and diluted loss per share was $(0.01) and $(0.00) for the six-months ended June 30, 2025 and 2024, respectively.

Liquidity and Capital Resources

Our cash totaled $173,191 at March 31, 2025, as compared with $585,319 at December 31, 2024, a decrease of $412,128.

Net cash of $125,768 was provided by operations for the three-months ended March 31, 2025, primarily due to adjustments for non-cash charges and the increase in accounts payable and accrued liabilities, offset by our net loss and an increase in accounts receivable.

Net cash used in investing activities for the three-months ended March 31, 2025 was $537,896, due to capitalized application software costs and purchases of computer equipment.

Our cash totaled $414,144 at June 30, 2025, as compared with $585,319 at December 31, 2024, a decrease of $171,175.

Net cash of $694,057 was provided by operations for the six-months ended June 30, 2025, primarily due to adjustments for non-cash charges and the increase in accounts payable and accrued liabilities, offset by our net loss and an increase in accounts receivable.

Net cash used in investing activities for the six-months ended June 30, 2025 was $865,232, due to capitalized application software costs and purchases of computer equipment.

We typically operate with a working capital deficit.

As of March 31, 2025, our working capital deficit was $4,019,077, however current liabilities include $1,533,393 in deferred revenue.

As of June 30, 2025, our working capital deficit was $4,349,264 however current liabilities include $2,087,471 in deferred revenue.

The expected costs necessary to realize the deferred revenue are minimal.

If circumstances dictate, we have the flexibility to reduce development spending to maintain a strong liquidity position.

Based on the factors discussed above, we believe that our cash on hand and cash generated from operations will be sufficient to fund our current operations for at least the next 12 months through March 2026.

However, implementing our business plan may require additional financing.

9 unchanged sentences

Off-Balance Sheet Arrangements

At March 31, 2025 and December 31, 2024, we did not have any unconsolidated entities or financial partnerships, or other off-balance sheet arrangements.

At June 30, 2025 and December 31, 2024, we did not have any unconsolidated entities or financial partnerships, or other off-balance sheet arrangements.

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