What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-13 compared with 2025-02-14 · 42 added, 80 removed, 91 unchanged (57% of the section changed)

49 unchanged sentences

and in our other filings with the Commission.

historical business model has focused on purchasing or acquiring life insurance policies and residual interests in or financial products

tied to life insurance policies, including notes, drafts, acceptances, open accounts receivable and other obligations representing part

or all of the sales price of insurance, life settlements and related insurance contracts being traded in the secondary marketplace, often

referred to as the “life settlements market.”

currently do not hold life settlement or life insurance policies but, rather, previously held a contractual right to receive the net

insurance benefits, or “NIBs”, from a portfolio of life insurance policies held by a third party (“the Owners”

or “the Holders”).

These NIBs represented an indirect, residual ownership interest in a portfolio of individual life insurance

policies, and they allowed us to receive a portion of the settlement proceeds from such policies, after expenses related to the acquisition,

financing, insuring and servicing of the policies underlying our NIBs have been paid.

are generally sold by an entity that holds the underlying life settlement or life insurance policies, either directly or indirectly through

a subsidiary, such an entity being referred to herein as a “Holder.” A Holder, either directly or through a wholly owned

subsidiary, purchases life insurance policies either from the insured or on the secondary market and aggregates them into a portfolio

At the time of purchase, the Holder also (i) contracts with a service provider to manage the servicing of the policies until

maturity, (ii) consider purchasing mortality re-insurance (“MRI”) coverage under which payments will be made to the Holder

in the event the insurance policies do not mature according to actuarial life expectancies, and (iii) arranges financing to cover the

initial purchase of the insurance policies, the servicing of the life insurance policies until maturity and the payment of the MRI premiums.

The financing obtained by the Holder for a portfolio of life settlement or life insurance policies is secured by the insurance policies

for which the financing was obtained.

After a Holder purchases policies, aggregates them into a portfolio and arranges for the servicing,

MRI coverage and financing, the Holder contracts to sell NIBs related to the policies, which gives the holder of the NIBs the right to

receive the proceeds from the settlement of the insurance policies after all of the expenses related to such policies have been paid.

When an insurance policy underlying our NIBs comes to maturity, the insurance proceeds are first used to pay expenses associated with

Once all of the expenses have been paid, the Holder will retain a small percentage of the proceeds and then will pay the

remaining insurance proceeds to us.

Business (Overview):

historical business model focused on purchasing or acquiring life insurance policies and related residual interests, such as net insurance

benefits (NIBs).

These NIBs provided us with the right to receive a portion of settlement proceeds from third-party-held policy portfolios,

after associated servicing and financing costs.

As of the date of this report, we no longer directly hold NIBs or life insurance policies.

the latter part of the fiscal year ended March 31, 2021, we began developing an additional business offering, providing professional

25 unchanged sentences

of Operations

Ended December 31, 2024, Compared with Three-Months Ended December 31, 2023

to the Company not holding NIBs, no interest income was recorded for the three months ended December 31, 2024, or 2023.

& Administrative Expenses

and administrative expenses totaled $143,513, and $147,842 during the three months ended December 31, 2024, and 2023, respectively.

significant portion of these expenses were professional fees and payroll costs.

Income and Expenses

the three months ended December 31, 2024, and 2023, interest expense accrued in the amount of $87,480 and $110,221, respectively.

decrease in interest expense was a result of no amortized debt discounts recognized during the three months ended December 31, 2024,

and reduction in principal balance.

the three months ended December 31, 2024, and 2023, other expenses related to pursuing potential financing alternatives were $30,000,

and $105,000, respectively.

These expenses are related to additional consultant fees in pursuit of bonds.

the three months ended December 31, 2024, and 2023, the Company recorded net loss before income taxes of $290,993, and $363,063, respectively,

and had no income tax expense or benefit as a result of a full valuation allowance on the net deferred tax asset.

Months Ended December 31, 2024, Compared with Nine Months Ended December 31, 2023

to the Company not holding NIBs, no interest income was recorded for the nine months ended June 30, 2024, or 2023.

Ended June 30, 2025, Compared with Three-Months Ended June 30, 2024

to the Company not holding NIBs, no interest income was recorded for the three months ended June 30, 2025, or 2024.

& Administrative Expenses

and administrative expenses totaled $503,457, and $371,839 during the nine months ended December 31, 2024, and 2023, respectively.

significant portion of these expenses were professional fees and payroll costs.

The increase in general and administrative expenses is

a result of increased professional fees.

and administrative expenses totaled $130,764, and $193,107 during the three months ended June 30, 2025, and 2024, respectively.

A significant

portion of these expenses were professional fees and payroll costs.

Income and Expenses

the nine months ended December 31, 2023, we recognized $398,920, as a loss on extinguishment of debt in conjunction with related party

the nine months ended December 31, 2023, we negotiated a settlement to reduce our outstanding accounts payable to one of our vendors

This gain was recorded as a gain on settlement of liabilities.

the nine months ended December 31, 2024, and 2023, interest expense accrued in the amount of $262,368 and $316,480, respectively.

decrease in interest expense was a result of no amortized debt discounts recognized during the nine months ended December 31, 2024, and

reduction in principal balance.

the nine months ended December 31, 2024, and 2023, other expenses related to pursuing potential financing alternatives were $200,000,

and $105,000, respectively.

the three months ended June 30, 2025, we recognized $388,511, as a loss on extinguishment of debt in conjunction with related party debt.

the three months ended June 30, 2025, and 2024, interest expense accrued in the amount of $88,719 and $88,322, respectively.

the three months ended June 30, 2025, and 2024, other expenses related to pursuing potential financing alternatives were $0, and $155,000,

respectively.

These expenses are related to additional consultant fees in pursuit of bonds.

the nine months ended December 31, 2024, and 2023, the Company recorded net loss before income taxes of $965,825, and $902,239, respectively,

the three months ended June 30, 2025, and 2024, the Company recorded net loss before income taxes of $607,994, and $436,429, respectively,

and had no income tax expense or benefit as a result of a full valuation allowance on the net deferred tax asset.

The relative increase

in net loss before income taxes is due to the loss on extinguishment of debt.

and Capital Resources

1 unchanged sentence

payable from related parties and the issuance of convertible debentures.

As of December 31, 2024, we had $259,620 of cash, compared to

As of June 30, 2025, we had $55,266 of cash, compared to $168,648

as of March 31, 2025.

As of December 31, 2024, the Company had access to draw an additional $4,265,942 on the notes payable,

related party and $3,000,000 on the Convertible Debenture Agreement.

Our monthly expenses are anticipated to be approximately $56,000,

which includes salaries of our employee, policy servicing expenses, consulting agreements and contract labor, general and administrative

expenses, estimated legal and accounting expenses.

Outstanding Accounts Payable as of December 31, 2024, totaled $437,360, and other

accrued liabilities totaled $1,946,602.

We believe that our availability under our existing lines of credit with related parties, our

existing capital resources, together with the issuance of additional notes payable and convertible debentures will be sufficient to fund

our operating working capital requirements for at least the next 12 months, or through February 2026.

December 31, 2024, we owed $5,267,984, including accrued interest, for debt obligations.

We owed $3,290,058 in principal pursuant to

notes payable and lines-of-credits from related parties, $300,000 in other notes payable, and had fully paid off the principal owing

on the 8% Convertible Debenture.

As of December 31, 2024, a line-of-credit to a third party had a balance of $1,159,508 due on November

As of June 30, 2025, the Company had access to draw an additional $4,265,942 on the notes payable, related party

and $3,000,000 on the Convertible Debenture Agreement.

Our monthly expenses are anticipated to be approximately $45,000, which includes

salaries of our employee, policy servicing expenses, consulting agreements and contract labor, general and administrative expenses, estimated

legal and accounting expenses.

Outstanding Accounts Payable as of June 30, 2025, totaled $448,988, and other accrued liabilities totaled

We believe that our availability under our existing lines of credit with related parties, our existing capital resources,

together with the issuance of additional notes payable and convertible debentures will be sufficient to fund our operating working capital

requirements for at least the next 12 months, or through August 2026.

June 30, 2025, we owed $5,443,352, including accrued interest, for debt obligations.

We owed $3,290,058 in principal pursuant to notes

payable and lines-of-credits from related parties, $300,000 in other notes payable, and had fully paid off the principal owing on the

8% Convertible Debenture.

As of June 30, 2025, a line-of-credit to a third party had a balance of $1,159,508 due on November 30, 2026,

or when the Company completes a successful equity raise, at which time principal and interest is due in full.

A line-of-credit

to a second third party had a principal balance of $1,304,550 and is currently extended due on November 30, 2026.

As of December 31,

2024, unsecured promissory notes had principal balances totaling $826,000 and are due on November 30, 2025.

The convertible debenture

agreement, which has no principal balance due as of December 31, 2024, is open through August 31, 2026.

As of February 13, 2025, there was

$4,265,942 available under the lines-of-credit we currently have with related parties and $3,000,000 available under the 8% convertible

debenture agreement.

A line-of-credit to a second

third party had a principal balance of $1,304,550 and is currently extended due on November 30, 2026.

As of June 30, 2025, unsecured

promissory notes had principal balances totaling $826,000 and are due on November 30, 2025.

The convertible debenture agreement, which

has no principal balance due as of June 30, 2025, is open through August 31, 2026.

As of August 13, 2025, there was $4,265,942 available

under the lines-of-credit we currently have with related parties and $3,000,000 available under the 8% convertible debenture agreement.

Accounting Policies and Estimates

Consolidated Financial Statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year

ended March 31, 2024, which was filed with the SEC on July 1, 2024.

ended March 31, 2025, which was filed with the SEC on June 30, 2025.

Sheet Arrangements

2 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-Q

Item 2. Management’s Discussion and Analysis