What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-05-14 compared with 2025-11-19 · 53 added, 87 removed, 108 unchanged (56% of the section changed)

18 unchanged sentences

All our content solutions are completely customizable and embedded directly into client Web pages for seamless integration with existing content.

We are continuing to develop and launch new modules of QMod TM , our new proprietary Web delivery system.

We are continuing to develop and launch new modules of QMod, our new proprietary Web delivery system.

QMod was created for secure market data provisioning as well as ease of integration and unlimited customization.

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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 enacted and proposed by the U.S.

New tariffs proposed by the U.S.

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.

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

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 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.

dollars using the comparative period’s average exchange rate.

Based on revenue already under contract we expect our revenue growth to continue to improve for the remainder of fiscal 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 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.

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

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 37% of our revenue and 38% of our expenses are denominated in Canadian dollars and because our Canadian dollar revenue and expenses are evenly matched, exchange rate fluctuations have minimal impact on our net loss and cash flows.

Our revenue increased 15% in Q1 2026 versus the comparative 2025 quarter.

Based on revenue already under contract we expect similar revenue growth for the remainder of fiscal 2026.

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 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 for the remainder of 2026, although its impact will diminish over time.

We incurred some one-time expenses totaling approximately $230,000 during the quarter (see Cost of Revenue discussion below), which, along with the impact of capitalized development costs, significantly impacted our net loss for the quarter.

For the remainder of fiscal 2026 we expect our bottom line to improve without the non-recurring expense noted above and the impact of capitalized development costs diminishes.

Plan of Operation

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

For the remainder of 2026 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 remainder of 2025 and for the 2026 fiscal year.

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.

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 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.

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 and for 2026.

Important development projects for the remainder of 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 September 30,

Corporate Quotestream

Individual Quotestream

Total Portfolio Management Systems

Interactive Content and Data APIs

Total subscription revenue

Nine-months ended September 30,

Three-months ended March 31,

Corporate Quotestream

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Total subscription revenue

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 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.

Total licensing revenue increased 15% for the three-months ended March 31, 2026 from the comparative 2025 period.

Total Portfolio Management Systems revenue increased 13% for the three-months ended March 31, 2026 from the comparative 2025 period.

Corporate Quotestream revenue increased 17% from the comparative 2025 period.

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

Individual Quotestream revenue was relatively flat, decreasing 1% for the three-months ended March 31, 2026 from the comparative 2025 period.

Interactive Content and Data APIs revenue increased 16% for the three-months ended March 31, 2026 from the comparative period in 2025 due to increases in both the number of customers and the average revenue per customer from the comparative period.

Cost of Revenue and Gross Profit Summary

Three-months ended September 30,

Cost of revenue

Gross margin %

Nine-months ended September 30,

Three-months ended March 31,

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 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.

Our cost of revenue increased 11% for the three-months ended March 31, 2026 from the comparative period in 2025.

This was mainly due to some one-time, non-recurring expenses related to data licensing, processing and delivery, that amounted to approximately $230,000.

Notwithstanding impact of the one-time fee noted above, our cost of revenue decreased as a percentage of sales, as evidenced by our gross margin percentage that increased to 46% for the three-months ended March 31, 2026 from 44% in the comparative 2025 period.

Operating Expenses Summary

Three-months ended September 30,

Sales and marketing

General and administrative

Software development

Total operating expenses

Nine-months ended September 30,

Three-months ended March 31,

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 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.

Sales and marketing expenses increased 5% for the three-months ended March 31, 2026, when compared to the same period in 2025.

The increase was mainly due to additional sales personnel added since the comparative quarter.

General and Administrative

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

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.

General and administrative expenses increased 17% for the three-months ended March 31, 2026, when compared to the same period in 2025.

The increase is mainly a result of an increase in professional fees from the comparative period, offset by a decrease in office rent expense.

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 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 $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.

Software development expenses increased 42% for the three-months ended March 31, 2026 when compared to the same period in 2025, due to lower capitalization of development costs and therefore higher immediate expense recognition.

We capitalized 9% of development costs this quarter versus 27% the comparative period.

We capitalized $173,683 and $523,599 of development costs for the three-month periods ended March 31, 2026 and 2025, respectively.

These 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 September 30,

Foreign exchange gain (loss)

Three-months ended March 31,

Foreign exchange gain

Interest expense, net

Total other income (expense), net

Nine-months ended September 30,

Foreign exchange gain (loss)

Interest expense, net

Total other income (expenses), net

Foreign Exchange Gain

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.

We incurred foreign exchange gains of $30,074 and $5,962 for the three-months periods ended March 31, 2026 and 2025, respectively.

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 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

Net interest expense of $25,246 and $2,387 were incurred for the three-months periods ended March 31, 2026 and 2025, respectively.

The increase was due to increased vendor finance charges.

Provision for Income Taxes

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.

For the three-months periods ended March 31, 2026 and 2025, the Company recorded $554 and $66,151 in income tax expenses, respectively.

Net Loss for the Period

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.

As a result of the foregoing, our net losses for the three-months periods ended March 31, 2026 and 2025 were $620,612 and $499,811, respectively.

The basic and diluted loss per share was $(0.01) for the three-months periods ended March 31, 2026 and 2025, respectively.

Liquidity and Capital Resources

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.

Our cash totaled $521,684 at March 31, 2026, as compared with $319,889 at December 31, 2025, an increase of $201,795.

Net cash of $ 384,672 was provided by operations for the three-months ended March 31, 2026, primarily due to adjustments for non-cash charges and an increase in accounts payable and accrued liabilities and a decrease in accounts receivable.

This was offset by our net loss.

Net cash used in investing activities for the three-months ended March 31, 2026 was $182,877, due to capitalized application software costs and purchases of computer equipment.

We typically operate with a working capital deficit.

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

As of March 31, 2026, our working capital deficit was $4,646,488, however current liabilities include $1,691,713 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 September 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 September 30, 2025 and December 31, 2024, we did not have any unconsolidated entities or financial partnerships, or other off-balance sheet arrangements.

At March 31, 2026 and December 31, 2025, 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