Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Results of Operations for the years ended February 28, 2025 and February 29, 2024:
Revenues
For the years ended February 28, 2025 and February 29, 2024, the Company generated total revenue of $37,760 having sold the Application Programming Interface (API) packages provided on its website and $21,518, respectively. The Company's revenue increased by $16,242, or 75%, compared to the prior year, primarily due to an overall increase in business activity and an expanded customer base.
Operating expenses
Total expenses for the year ended February 28, 2025 were $60,418 ($27,422 for the year ended February 29, 2024) consisting of general and administrative expenses. Expenses increased by $32,996, or 120%, for the year ended February 28, 2025, primarily driven by marketing expenses and software development expenses, reflecting the Company's strategic focus on growth.
Other Income (Expenses)
Total other expenses for the years ended February 28, 2025 and February 29, 2024 was $0 and $867, respectively. The other expenses included the loss on sale of the intangible asset.
Net Losses
The company recorded a net loss of $22,658 for the year ended February 28, 2025, and $6,771 for the year ended February 29, 2024. Despite the increase in revenue, the Company reported a net loss for the fiscal year ended February 28, 2025, as the growth of operating expenses exceeded the growth of revenue.
Liquidity and Capital Resources
As of February 28, 2025 we have cash reserves of approximately $13,861 ($9,073 as of February 29, 2024) and our liabilities are $111,064 ($79,998 as of February 29, 2024), comprising $27,150 accounts payable ($43,648 as of February 29, 2024), $10,880 deferred revenue ($0 as of February 29, 2024) and $73,034 ($36,350 as of February 29, 2024) owed to Rassul Sadakbayev, our director. The available capital reserves of the Company are not sufficient for the Company to remain operational.
Shareholders’ equity has decreased from $28,058 as of February 29, 2024 to $5,400 as of February 28, 2025.
The Company has accumulated a deficit of $33,500 as of February 28, 2025, compared to $10,842 as of February 29, 2024, and further losses are anticipated in the development of its business. Accordingly, there is substantial doubt about the Company’s ability to continue as a going concern.
Net cash used in operating activities for the year ended February 28, 2025, was $23,504 ($62,308 – for the year ended February 29, 2024). The Company moved from cash outflow to positive cash inflow, indicating an improvement in its ability to generate cash from its core business operations.
Cash flows from investing activities for the year ended February 28, 2025, was $55,400 ($10,000 - for the year ended February 29, 2024). The shift in investing activities indicated investment in long-term intangible assets.
Cash flows from financing activities for the year ended February 28, 2025, was $36,684 ($53,870 - for the year ended February 29, 2024). Financing activities showed an increase in cash inflows due to additional funds under a loan agreement with the Director of the Company.
Critical Accounting Policies and Significant Judgments and Estimates
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Revenue Recognition
The Company recognizes revenue in accordance with Accounting Standards Update (“ASU”) No. 2014-09, "Revenue from Contracts with Customer" . The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements:
Step 1: Identify the contract with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation
The Company generates revenue by selling API packages.
The Company recognizes revenue when title, ownership, and risk of loss pass to the customer, all of which occurs upon shipment or delivery of the product. There are no additional performance obligations. The transaction price is fixed in the invoice. Payment is generally made prior to the services being provided. If deposits are received prior to services being rendered, the Company recognizes deferred revenue until the services are completed.
Recent Issued Accounting Pronouncements
The Company has reviewed all the recent accounting pronouncements issued to date of the issuance of these financial statements, and does not believe any of these pronouncements will have a material impact on the Company’s financial reporting.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.
Limited Operating History and Need for Additional Capital
There is no historical financial information about us upon which to base an evaluation of our performance. We are in start-up stage operations and have not generated sufficient revenues. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible cost overruns due to price and cost increases in services and products.
We have no assurance that future financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations. Equity financing could result in additional dilution to existing shareholder.
