Overview of Financial Performance

The financial report highlights the key financial results and trends for the company over the three and six-month periods ended June 30, 2025 and 2024. The report indicates that the company is facing significant financial challenges and has substantial doubt about its ability to continue as a going concern.

Revenue and Profit Trends

The report does not provide any information about the company’s revenue or profit. Instead, it focuses on the company’s expenses and net losses:

• General and administrative expenses increased significantly, from $9,026 in Q2 2024 to $40,046 in Q2 2025, and from $24,498 in the first half of 2024 to $101,022 in the first half of 2025. This was primarily due to increased expenses related to SEC filings.

• Professional fees decreased from $66,000 in Q2 2024 to $80,270 in Q2 2025, and from $190,703 in the first half of 2024 to $137,174 in the first half of 2025. The decrease was mainly due to lower expenses related to the transfer of Sovryn to investors.

• Amortization expense and interest expense decreased significantly, from $130,226 in the first half of 2024 to $0 in the first half of 2025, as most of the company’s debt matured in 2023.

• Net losses increased slightly from $673,192 in Q2 2024 to $718,482 in Q2 2025, but decreased from $1,504,104 in the first half of 2024 to $1,427,959 in the first half of 2025. The decrease in the first half was due to lower amortized interest expense and professional fees, partially offset by higher general and administrative expenses.

Strengths and Weaknesses

The report does not explicitly discuss the company’s strengths and weaknesses. However, some key points can be inferred:

Weaknesses:

• The company has a significant working capital deficit of $21,814,254 as of June 30, 2025, which has increased from $20,386,294 as of December 31, 2023.
• The company has suffered recurring losses from operations and has substantial doubt about its ability to continue as a going concern.
• The company will require additional capital to meet its long-term operating requirements.

Strengths:

• The company was able to reduce its amortization expense and interest expense significantly as its debt matured in 2023.
• The company was able to reduce its professional fees, particularly related to the transfer of Sovryn to investors.

Outlook and Future Prospects

The report indicates that the company’s future prospects are uncertain. The company expects to require additional capital to meet its long-term operating requirements and plans to raise this capital through the sale of stock or debt securities and further implementation of its business plan. However, the report states that there is substantial doubt about the company’s ability to continue as a going concern, and the financial statements do not include any adjustments that might result from this uncertainty.

Overall, the financial report paints a picture of a company facing significant financial challenges and an uncertain future. The company’s ability to raise additional capital and improve its financial performance will be crucial to its long-term viability.