2. BASIS OF PRESENTATION

In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. All significant intercompany transactions and balances are eliminated in consolidation. However, the results of operations included in such financial statements may not necessarily be indicative of annual results.

The Company uses the same accounting policies in preparing quarterly and annual financial statements. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2026 filed with the Securities and Exchange Commission (“SEC”) on June 29, 2026 (“2026 Form 10-K”).

The results of the property management and subleasing business for the three months ended June 30, 2025 have been retrospectively reclassified to discontinued operations for all periods presented. The reclassification had no effect on consolidated net loss, comprehensive loss, total equity or cash flows for the prior-year period.

For the three months ended June 30, 2025, the property management and subleasing business classified as discontinued operations generated revenue of $154,600 and a loss, net of income taxes, of $261,166. No income tax expense or benefit was allocated to discontinued operations. The Company had no discontinued operations for the three months ended June 30, 2026.

Going Concern

As disclosed in the Company’s 2026 Form 10-K, the Company has a history of net losses and operating losses, which raised substantial doubt about its ability to continue as a going concern. During the three months ended June 30, 2026, the Company reported net income primarily as a result of a non-cash fair value gain on derivative liabilities; however, the Company continued to incur a loss from operations and negative cash flows from operating activities.

The Company’s ability to continue as a going concern depends on management’s ability to improve operating results, manage operating costs, collect receivables, develop its consulting and financing services businesses and obtain additional financing when necessary. Management continues to pursue these plans. There can be no assurance that these efforts will be successful or that additional financing will be available on acceptable terms, or at all. The unaudited condensed consolidated financial statements have been prepared on a going concern basis and do not include any adjustments that might result from the outcome of this uncertainty.