What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-14 compared with 2026-05-14 · 67 added, 37 removed, 124 unchanged (46% of the section changed)

49 unchanged sentences

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.

For the remainder of fiscal 2026 we expect our bottom line to improve as our revenue grows and the impact of capitalized development costs diminishes.

Plan of Operation

2 unchanged sentences

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.

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

17 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 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.

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 11% and 13% for the three and six-months ended June 30, 2026 from the comparative 2025 periods.

Total Portfolio Management Systems revenue increased 7% and 10% for the three and six-months ended June 30, 2026 from the comparative 2025 periods.

Corporate Quotestream revenue increased 9% and 13% for the three and six-months ended June 30, 2026 from the comparative 2025 periods.

The increases were due to increases in both the number of customers and the average revenue per customer from the comparative periods.

Individual Quotestream revenue was relatively flat, decreasing 2% and 1% for the three and six-months ended June 30, 2026 from the comparative 2025 periods.

Interactive Content and Data APIs revenue increased 14% and 15% for the three and six-months ended June 30, 2026 from the comparative 2025 periods due to increases in both the number of customers and the average revenue per customer 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 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.

Our cost of revenue increased 2% for the three-months ended June 30, 2026 from the comparative period in 2025, mainly due to increased data storage fees related to our growth, offset by a decrease in amortization expenses related to development costs.

Our cost of revenue increased 7% for the six-months ended June 30, 2026 from the comparative period in 2025.

This was mainly due to some one-time, non-recurring expenses in March 2026 related to data licensing, processing and delivery, that amounted to approximately $230,000 and increased data storage fees related to our growth.

This was offset by a decrease in amortization expenses related to development costs.

Our cost of revenue decreased as a percentage of sales, as evidenced by our gross margin percentage that increased to 50% and 48% for the three and six-months ended June 30, 2026 from 46% and 45% in the comparative periods in 2025, respectively.

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 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.

Sales and marketing expenses decreased 4% for the three-months ended June 30, 2026, compared to the same period in 2025.

The decrease was mainly due to stock-based compensation expenses incurred in the comparative Q2 2025 period.

Sales and marketing expenses for the six-months ended June 30, 2026 were relatively flat when compared to the same period in 2025, increasing by 1%.

General and Administrative

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

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.

General and administrative expenses decreased 10% for the three-months ended June 30, 2026 when compared to the same period in 2025.

The decrease is mainly a result of a decreases in bad debt expense, office rent expense, and professional fees from the comparative period.

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.

We also changed principal accountants effective Q1 2026 which lowered our professional fee expense during the quarter.

The decreases were offset by an increase in fees related to artificial intelligence (AI) tools.

General and administrative expenses increased 2% for the six-months ended June 30, 2026 when compared to the same period in 2025.

The increase is mainly due to increase in fees related to artificial intelligence (AI) tools and increased professional fees related to year end audit services performed by our previous principal accountants.

These increases were offset by a decrease in bad debt and office rent expenses.

Software Development

1 unchanged sentence

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

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.

Software development expenses increased 17% and 28% for the three and six-months ended June 30, 2026 when compared to the same periods in 2025, due to lower capitalization of development costs and therefore higher immediate expense recognition.

We capitalized 8% of development costs for the three and six-months ended June 30, 206 versus 16% and 21% in the comparative 2025 periods.

We capitalized $162,696 and $314,519 of development costs for the three-months periods ended June 30, 2026 and 2025, respectively.

We capitalized $336,379 and $838,118 of development costs for the six-months periods ended June 30, 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.

1 unchanged sentence

Other Income and (Expense) Summary

Three-months ended March 31,

Foreign exchange gain

Three-months ended June 30,

Foreign exchange gain (loss)

Interest expense, net

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 $30,074 and $5,962 for the three-months periods ended March 31, 2026 and 2025, respectively.

We incurred foreign exchange gains of $24,393 and $54,467 for the three and six-months ended June 30, 2026.

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

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 $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.

Net interest expense of $10,797 and $36,043 were incurred for the three and six-months periods ended June 30, 2026.

Net interest expense of $13,380 and $15,767 were incurred for the three and six-months periods ended June 30, 2026 The increase was due to increased vendor finance charges.

Provision for Income Taxes

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

For the three and six-months periods ended June 30, 2026, the Company recorded $(25) and $529 in income tax expense (recovery).

For the three and six-months periods ended June 30, 2025, the Company recorded $2,770 and $68,921 in 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, 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.

As a result of the foregoing, our net losses for the three-months periods ended June 30, 2026 and 2025 were $362,447 and $853,582, respectively.

The basic and diluted loss per share was $(0.00) and $(0.01) for the three-months periods ended June 30, 2026 and 2025, respectively.

Our net losses for the six-months periods ended June 30, 2026 and 2025 were $983,059 and $1,353,393, respectively.

The basic and diluted loss per share was $(0.01) for the six-months periods ended June 30, 2026 and 2025, respectively.

Liquidity and Capital Resources

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.

Our cash totaled $186,986 at June 30, 2026, as compared with $319,889 at December 31, 2025, a decrease of $132,903.

Net cash of $236,568 was provided by operations for the six-months ended June 30, 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 and a decrease in deferred revenue.

Net cash used in investing activities for the six-months ended June 30, 2026 was $369,471, due to capitalized application software costs and purchases of computer equipment.

We typically operate with a working capital deficit.

As of March 31, 2026, our working capital deficit was $4,646,488, however current liabilities include $1,691,713 in deferred revenue.

As of June 30, 2026, our working capital deficit was $4,643,639, however current liabilities include $1,500,198 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 2027.

However, implementing our business plan may require additional financing.

9 unchanged sentences

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.

At June 30, 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