What changed in this filing

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Item 7. Management’s Discussion and Analysis

2026-04-07 compared with 2025-04-15 · 64 added, 38 removed, 162 unchanged (39% of the section changed)

32 unchanged sentences

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

Events in Ukraine and Russia have continued to cause disruptions in the global financial markets.

While we do not have any operations or customers in Ukraine or Russia, we will continue to monitor the situation as a prolonged conflict could impact our business.

Events in the Middle East and Ukraine have continued to cause disruptions in the global financial markets.

While we do not have any operations in the Middle East, Ukraine or Russia, we will continue to monitor the situation as a prolonged conflict could impact our business.

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

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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 decreased 1% in 2024 versus the comparative 2023 year.

For fiscal 2025, based on revenue already under contract we expect to return to positive revenue growth and expect a significant improvement to the net loss we incurred in 2024.

Our revenue increased 8% in 2025 versus the comparative 2024 year.

For fiscal 2026, based on revenue already under contract we expect an increase in revenue growth and a significant improvement to the net loss we incurred in 2025.

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 significantly increased this year 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 cash flow, 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 in 2026, although its impact will diminish over time.

Plan of Operation

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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.

We plan to continue 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 2026.

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At December 31, 2025 and 2024, the remaining book value of the capitalized application software was $3,405,884 and $5,041,544.

Going Concern

These consolidated financial statements have been prepared on a going concern basis.

The Company has incurred losses since inception resulting in an accumulated deficit of $23,505,303 and further losses are anticipated in the development of its business.

The Company does not have sufficient cash to fund normal operations and meet debt obligations for the next 12 months without deferring payment on certain current liabilities and/or raising additional funds.

In order to continue to meet its fiscal obligations in the current fiscal year and beyond, the Company may need to seek additional financing.

This raises substantial doubt about the Company’s ability to continue as a going concern.

Its ability to continue as a going concern is dependent upon the ability of the Company to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due.

Recent Accounting Pronouncements

Recently Adopted

In November 2023, the FASB issued ASU No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures (“ASU 2023-07”).

This standard improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.

ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.

The amendments in ASU 2023-07 will be applied retrospectively to all prior periods presented in the consolidated financial statements.

The adoption of ASU 2023-07 did not have a significant impact on the Company’s consolidated financial statements

Not Yet Adopted

In September 2025, the FASB issued ASU No.

2025-06, “Intangibles--Goodwill and Other--Internal-Use Software” (“ASU No.

2025-06”), which removes all references to sequential software development project stages and establishes new capitalization criteria.

In order for capitalization to begin under the new guidance, management must authorize and commit to funding a project and meet a probable-to-complete recognition threshold.

In evaluating whether the probable-to-complete recognition threshold has been met, management is required to consider whether there is a significant development uncertainty associated with the software project.

The amendments in this ASU may be applied using (1) a prospective transition approach applying the guidance to new software costs incurred as of the beginning of the period of adoption for all projects, including in-process projects, (2) a retrospective transition approach by recasting comparative periods and recognizing a cumulative-effect adjustment to the opening balance of retained earnings, or (3) a modified transition approach applying the amendments on a prospective basis to new software costs incurred except for in-process projects that, as of the date of adoption the entity determines do not meet the capitalization requirements under the new guidance.

2025-06 is effective for the Company in the first quarter of fiscal year 2029.

Early adoption is permitted.

The Company is currently assessing the impact that the adoption of ASU 2025-06 will have on the Company’s Consolidated Financial Statements.

In September 2025, the FASB issued ASU No.

2025-07, “Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606)”, which refines the scope of Topic 815 to clarify which contracts are subject to derivative accounting.

The guidance also provides clarification under Topic 606 for share-based payments from a customer in a revenue contract.

2025-07 is effective for the Company in the first quarter of fiscal year 2027.

The amendments in this ASU must be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this ASU or (2) modified retrospectively to any or all prior periods presented in the financial statements.

Early adoption of the amendments is permitted.

The Company is currently assessing the impact that the adoption of ASU No.

2025-07 will have on the Company’s Consolidated Financial Statements.

In July 2025, the FASB issued Accounting Standards Update 2025-05, Financial Instruments – Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets (ASU 2025-05).

This accounting standard provides a practical expedient allowing entities to assume that current conditions as of the balance sheet date remain unchanged over the remaining life of the asset when estimating expected credit losses.

ASU 2025-05 is effective for annual reporting periods, including interim reporting periods within those annual periods, beginning after December 15, 2025, with early adoption permitted and should be applied prospectively.

The Company is evaluating the impact of ASU 2025-05 and expects the standard will not have a material impact on the consolidated financial statements and related disclosures

In November 2024, the FASB issued ASU No.

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An entity may apply the amendments prospectively for reporting periods after the effective date or retrospectively to any or all prior periods presented in the financial statements.

The Company does not expect that the adoption of ASU 2023-09 will have a significant impact on the Company’s consolidated financial statements other than the additional disclosures.

The Company does not expect that the adoption of ASU 2023-09 will have a significant impact on the Company’s consolidated financial statements.

In December 2023, the FASB issued ASU No.

4 unchanged sentences

The amendments in ASU 2023-09 will be applied prospectively in the consolidated financial statements.

The Company does not expect that the adoption of ASU 2023-09 will have a significant impact on the Company’s consolidated financial statements.

The Company does not expect that the adoption of ASU 2023-09 will have a significant impact on the Company’s consolidated financial statements other than the additional disclosures.

Other accounting standards that have been issued by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption.

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Total Licensing Revenue

Total licensing revenue decreased by 1% when comparing the years ended December 31, 2024, and 2023.

Total Portfolio Management System revenue decreased by 1% when comparing the years ended December 31, 2024, and 2023.

Corporate Quotestream decreased by 1% due to a decrease in the number of customers offset by an increase in average revenue per customer.

Individual Quotestream revenue also decreased 1% for the year ended December 31, 2024, from the comparative period in 2023 due mainly to a decrease in total subscribers offset by an increase in pricing for Individual Quotestream effective January 1, 2024.

The depreciation of the Canadian dollar, discussed above in the “Business Environment and Trends” section, also impacted Individual Quotestream revenue as approximately 43% of our Individual Quotestream revenue is earned in Canadian dollars.

Interactive Content and Data APIs revenue decreased by 1% for the year ended December 31, 2024, from the comparative period in 2023 due mainly to a decrease in the average revenue per client.

Total licensing revenue increased by 8% when comparing the years ended December 31, 2025, and 2024.

Total Portfolio Management System revenue increased by 11% when comparing the years ended December 31, 2025, and 2024.

Corporate Quotestream increased by 14% due to increases in the number of customers and average revenue per customer.

Individual Quotestream revenue was flat for the year ended December 31, 2025, from the comparative period in 2024.

Interactive Content and Data APIs revenue increased by 5% for the year ended December 31, 2025, from the comparative period in 2024 due mainly to an increase in the average revenue per client.

Cost of Revenue and Gross Profit Summary

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Our cost of revenue increased 9% for the year ended December 31, 2025, from the comparative period in 2024.

This was mainly due to increased amortization expenses associated with internally developed application software resulting from our major growth initiative, which included investing in infrastructure, 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 which decreased to 47% in 2024 from 51% in 2023.

The increase was 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 period.

Overall, the cost of revenue remained unchanged as a percentage of sales, as our gross margin percentage remained was 47% for the years ended December 31, 2025 and 2024.

Operating Expenses Summary

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

Sales and marketing expenses increased 7% when comparing the years ended December 31, 2024, and 2023.

The increase is a result of additional sales personnel hired since the comparative period to support our product growth initiatives and salary increases for existing personnel.

The increase was offset by the 2% depreciation of the Canadian dollar from the comparative period as most of our sales personnel are in Canada.

Sales and marketing expenses were relatively flat when comparing the years ended December 31, 2025, and 2024, increasing 1%.

An increase in stock-based compensation expense related to extension of options and warrants in 2025 was offset by 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 increased 9% when comparing the years ended December 31, 2024, and 2023.

The increase is mainly due to an increase in bad debt expenses.

General and administrative decreased 12% when comparing the years ended December 31, 2025, and 2024.

The decrease was mainly due to decreases in bad debt and office rent expenses.

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

1 unchanged sentence

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

Software development expenses increased 15% for the year ended December 31, 2024, when compared to fiscal 2023, primarily due to new personnel hired since the comparative period to improve our infrastructure, security, and business continuity management.

The increase in software development expenses was also due to a decrease in the percentage of total development costs capitalized during 2024 when compared to the same period in 2023.

The increase in development personnel costs was offset by the 2% depreciation of the Canadian dollar from the comparative period as most of our development personnel are in Canada.

Software development expenses increased 58% for the year ended December 31, 2025, when compared to fiscal 2024.

The increase was due to a decrease in the percentage of development salaries capitalized versus the comparative periods as we capitalized 4% of development salaries in 2025 versus 26% the comparative 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 $1,314,804 of development costs for the year ended December 31, 2025, compared to $3,399,893 in 2024.

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Foreign Exchange Gain (Loss)

We incurred a foreign exchange gain of $103,736 for the year ended December 31, 2024, compared to a foreign exchange loss of $45,017 for the year ended December 31, 2023.

We incurred a foreign exchange loss of $116,737 for the year ended December 31, 2025, compared to a foreign exchange gain of $103,736 for the year ended December 31, 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

Interest expense relates primarily to the interest expense associated with our finance leases and was relatively unchanged from the comparative period.

Interest expense relates primarily to the interest expense associated with our operating leases and vendor finance charges.

Interest expense of $53,955 was incurred for the year ended December 31, 2025, compared to $2,508 incurred for the year ended December 31, 2024.

The increase was due to increased vendor finance charges.

Provision for Income Taxes

1 unchanged sentence

Net Income for the Period

As a result of the foregoing, our net loss for the year ended December 31, 2024, was $1,327,037 compared to net income of $361,584 for the year ended December 31, 2023.

Basic and diluted (loss) earnings per share were ($0.01) and $0.00 for the years ended December 31, 2024, and 2023, respectively.

As a result of the foregoing, our net loss for the year ended December 31, 2025, was $2,317,424 compared to a net loss of $1,327,037 for the year ended December 31, 2024.

Basic and diluted loss per share were ($0.03) and ($0.01) for the years ended December 31, 2025, and 2024, respectively.

Liquidity and Capital Resources

Our cash totaled $585,319 at December 31, 2024, as compared with $342,014 at December 31, 2023, an increase of $243,305.

Our cash totaled $319,889 at December 31, 2025, as compared with $585,319 at December 31, 2024, a decrease of $265,430.

Net cash of $1,105,936 was provided by operations for the year ended December 31, 2025, primarily due to adjustments for non-cash charges and the increase in accounts payable and accrued liabilities and deferred revenue, offset by our net loss and an increase in accounts receivable.

3 unchanged sentences

As of December 31, 2025, our working capital deficit is $4,369,484, however current liabilities include $1,589,900 in deferred revenue and the expected costs necessary to realize the deferred revenue are minimal.

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.

However, implementing our business plan may require additional financing.

The Company has incurred losses since inception resulting in an accumulated deficit of $23,505,303 and further losses are anticipated in the development of its business.

In order to continue to meet its fiscal obligations in the current fiscal year and beyond, the Company may need to seek additional financing.

Additional financing may come from future equity or debt offerings that could result in dilution to our stockholders.

12 unchanged sentences

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 7. Management’s Discussion and Analysis