What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-11-19 compared with 2025-08-14 · 55 added, 48 removed, 140 unchanged (42% of the section changed)

39 unchanged sentences

While our licensed-based revenue is generally recurring in nature, the uncertainty caused by the recent market downturn and rising inflation may result in some clients delaying purchasing decisions, product and service implementations or cancel or reduce spending with us.

New tariffs proposed by the U.S.

New tariffs enacted and proposed by the U.S.

government could lead to a general slowdown in economic activity, which could negatively impact our business.

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Approximately 36% of our revenue and 39% of our expenses are denominated in Canadian dollars.

The Canadian dollar depreciated against the U.S.

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

The Canadian dollar depreciated slightly against the U.S.

dollar when comparing the average exchange rate for the nine-months ended September 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 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%.

Our revenue increased 10% and 6% for the three and nine-month periods ending September 30, 2025 versus comparative periods and on an FX-neutral basis our three and nine-month revenue growth was 10% and 7%, respectively.

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

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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.

We expect this trend to continue for the remainder of 2025.

We expect this trend to continue for the remainder of 2025 and in 2026, although its impact will dimmish over that time.

Plan of Operation

For the remainder of 2025 we plan to continue to expand our product lines and improve our infrastructure.

For the remainder of 2025 and for the 2026 fiscal year we plan to continue to expand our product lines and improve our infrastructure.

We plan to continue to add more features and data to our existing products and release newer versions with improved performance and flexibility for client integration.

We plan to leverage artificial intelligence (AI) tools, where possible, to automate this process.

This expansion is expected to result in both increased revenue and costs for the fiscal year 2025.

This expansion is expected to result in both increased revenue and costs for the remainder of 2025 and for the 2026 fiscal year.

We will maintain our focus on marketing Quotestream for deployments by brokerage firms to their retail clients and continue our expansion into the investment professional market with Quotestream Professional.

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QMod is a major component of this strategy, given the broad demand for mobile-ready, SEO-friendly Web content.

Important development projects for 2025 include broad expansion of data and news coverage, including the addition of a wide array of international exchange data and news, video feeds, expansion of fixed-income coverage, and the introduction of several new and upgraded market information products.

New deployments of our trade integration capabilities, which allow our Quotestream applications to interact with our brokerage clients’ back-end trade execution and reporting platforms (enabling on-the-fly trade execution and tracking of holdings) are underway and will continue to be a priority for the remainder of 2025.

Important development projects for the remainder of 2025 and for 2026 include broad expansion of data and news coverage, including the addition of a wide array of international exchange data and news, video feeds, expansion of fixed-income coverage, and the introduction of several new and upgraded market information products.

We are also creating new proprietary data sets, analytics, and scoring mechanisms.

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Results of Operations

Three-months ended June 30,

Three-months ended September 30,

Corporate Quotestream

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Total subscription revenue

Six-months ended June 30,

Nine-months ended September 30,

Corporate Quotestream

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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.

Total licensing revenue increased 10% and 6% for the three and nine-months ended September 30, 2025 from the comparative 2024 periods.

Our revenue growth has been driven by the increase in average revenue per customer, as we continue to attract larger customers and cross-sell additional products to existing customers.

Total Portfolio Management Systems revenue increased 15% and 11% for the three and nine-months ended September 30, 2025 from the comparative 2024 periods.

Corporate Quotestream revenue increased 18% and 14% 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.

Individual Quotestream revenue was relatively flat for the three and nine-months ended September 30, 2025, increasing 1% for the three-months ended September 30, 2025 and decreasing 1% for the nine-months ended September 30, 2025 from the comparative 2024 periods.

Interactive Content and Data APIs revenue increased 5% and 2% for the three and nine-months ended September 30, 2025 from the comparative periods in 2024 due to increases in the average revenue per customer.

Cost of Revenue and Gross Profit Summary

Three-months ended June 30,

Three-months ended September 30,

Cost of revenue

Gross margin %

Six-months ended June 30,

Nine-months ended September 30,

Cost of revenue

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

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 46% and 45% for the three and six-months ended June 30, 2025 from 48% and 49% in the comparative 2024 periods.

Our cost of revenue increased 6% and 10% for the three and nine-months ended September 30, 2025 from the comparative periods in 2024.

The increases were mainly due to increased variable stock exchange fees related to our increase in revenue, as well as price increases for fixed stock exchange fees from the comparative periods.

Our gross margin percentage increased to 48% for the three -months ended September 30, 2025 from 46% in the comparative period in 2024 as the cost of revenue decreased as a percentage of sales.

This was due to an increase in revenue, as well as a decrease in amortization expense related to capitalized development costs

Our gross margin percentage decreased to 46% for the nine-months ended September 30, 2025 from 48% in the comparative 2024 period.

Our revenue growth percentage improved each quarter of 2025, however for the nine-month period ended September 30, 2025 our cost of revenue has increased as a percentage of sales resulting in a decrease in gross margin.

Operating Expenses Summary

Three-months ended June 30,

Three-months ended September 30,

Sales and marketing

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Total operating expenses

Six-months ended June 30,

Nine-months ended September 30,

Sales and marketing

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

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

Sales and marketing expenses decreased 5% for the three-month period ended September 30, 2025 versus the comparative 2024 period due to a decrease in sales and marketing salary expenses from the comparative period in 2024.

Sales and marketing expenses were flat for the nine-month period ended September 30, 2025 versus the comparative 2024 period, as an increase in stock-based compensation expense related to extension of options and warrants in May 2025 offset a decrease in sales and marketing salary expenses.

General and Administrative

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

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.

General and administrative expenses decreased 25% and 14% for the three and nine-months ended September 30, 2025, when compared to the same periods in 2024.

The decreases are mainly due to decreases in bad debt expense.

The decrease for the three-months ended September 30, 2025 was also due to a decrease in office rent expense as we downsized our office space in Vancouver, Canada effective September 1, 2025 when our existing lease terminated, as our development staff now primarily work remotely.

Software Development

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

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.

Software development expenses increased 74% and 55% for the three and nine-months ended September 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 4% of development salaries this quarter versus 26% the comparative quarter, and 8% year to date compared to 25% 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 $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.

We capitalized $255,631 and $1,093,748 of development costs for the three and nine-month periods ended September 30, 2025.

We capitalized $909,035 and $2,591,750 of development costs for the three and nine-month periods ended September 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 June 30,

Three-months ended September 30,

Foreign exchange gain (loss)

1 unchanged sentence

Total other income (expense), net

Six-months ended June 30,

Nine-months ended September 30,

Foreign exchange gain (loss)

2 unchanged sentences

Foreign Exchange Gain

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.

We incurred foreign exchange gain of $25,449 and a loss of $76,454 for the three and nine-months ended September 30, 2025.

We incurred foreign exchange loss of $31,881 and a gain of $3,841 for the three and nine-months periods ended September 30, 2024.

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

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Interest expense is netted against interest earned on cash balances.

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

Net interest expense of $18,222 and net income of $76 were incurred for the three-months periods ended September 30, 2025 and 2024, respectively.

Net interest expenses of $33,989 and $1,296 were incurred for the nine-months ended September 30, 2025 and 2024, respectively

Provision for Income Taxes

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.

For the three-months ended September 30, 2025 and 2024, the Company recorded $43 and $738 in Canadian income tax expenses.

For the nine-months ended September 30, 2025 and 2024, the Company recorded $68,964 and $2,206 in Canadian income tax expenses.

Net Loss for the Period

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.

As a result of the foregoing, our net losses for the three-months ended September 30, 2025 and 2024 were $367,192 and $440,941.

For the nine-months periods ended September 30, 2025 and 2024 our net losses were $1,720,585 and $720,290.

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

The basic and diluted loss per share was $(0.02) and $(0.00) for the nine-months ended September 30, 2025 and 2024, respectively.

Liquidity and Capital Resources

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.

Our cash totaled $281,143 at September 30, 2025, as compared with $585,319 at December 31, 2024, a decrease of $304,176.

Net cash of $832,155 was provided by operations for the nine-months ended September 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 and a decrease in deferred revenue.

Net cash used in investing activities for the nine-months ended September 30, 2025 was $1,136,331, due to capitalized application software costs and purchases of computer equipment.

We typically operate with a working capital deficit.

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

As of September 30, 2025, our working capital deficit was $ 4,405,332 however current liabilities include $ 2,153,243 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 June 2026.

However, implementing our business plan may require additional financing.

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Since currently our Canadian dollar revenue and expenses are closely matched, our consolidated cashflows are not significantly impacted by foreign exchange fluctuations.

Stock Exchange Reporting Risk

The company is subject to periodic examinations by the stock exchanges.

These periodic examinations, which are conducted to confirm that our reporting obligations to the stock exchanges have been met, could result in monetary assessments.

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.

At September 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