# EDGAR Filing Document

**Accession Number:** 0002032545
**File Stem:** 0001641172-25-024076
**Filing Date:** 2025-8
**Character Count:** 100020
**Document Hash:** b578973f627fa6eb9ac5f3aeb8ad62ec
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001641172-25-024076.hdr.sgml**: 20250814

**ACCESSION NUMBER**: 0001641172-25-024076

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 111

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250814

**DATE AS OF CHANGE**: 20250814

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CALLAN JMB INC.
- **CENTRAL INDEX KEY:** 0002032545
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-BUSINESS SERVICES, NEC [7389]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 990931141
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42506
- **FILM NUMBER:** 251219955

**BUSINESS ADDRESS:**
- **STREET 1:** 244 FLIGHTLINE DRIVE
- **CITY:** SPRING BRANCH
- **STATE:** TX
- **ZIP:** 78070
- **BUSINESS PHONE:** (830) 438-0395

**MAIL ADDRESS:**
- **STREET 1:** 244 FLIGHTLINE DRIVE
- **CITY:** SPRING BRANCH
- **STATE:** TX
- **ZIP:** 78070

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 10-Q**

☒ QUARTERLY
 REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission file number: **001-42506**

**CALLAN JMB INC.**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Nevada** | **99-0931141** |
| (State or other jurisdiction of | (I.R.S. Employer |
| incorporation or organization) | Identification No.) |

---

**244 Flightline Drive**

**Spring Branch, Texas 78070-6241**

(Address of principal executive offices, including zip code)

**Tel: (830) 438-0395**

(Registrant's telephone number, including area code)

---

| | |
|:---|:---|
| **Title of each class** | **Name of each exchange on which registered** |
| Common Stock, par value $0.001 per share CJMB | The Nasdaq Stock Market LLC |

---

**Securities registered pursuant to Section 12(g) of the Act: None**

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YES ☐ NO ☒

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. YES ☐ NO ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of "large accelerated filer," "accelerated filer," "smaller reporting company," and emerging growth company in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☒

If an emerging growth company, indicate by check mark if this registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☒

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 14, 2025, the Company had 4,481,069 shares of common stock, $0.001 par value, issued and outstanding.

Documents Incorporated by Reference: **None**.

**CALLAN JMB INC.**

**FORM 10-Q**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| **PART I** |  |  |
| &nbsp;&nbsp;&nbsp;Item 1. | [Unaudited Financial Statements](#a_001) | 3 |
|  | [Condensed Consolidated Balance Sheets as of June 30, 2025 (unaudited) and December 31, 2024](#a_001) | 3 |
|  | [Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025 and 2024 (unaudited)](#a_002) | 4 |
|  | [Condensed Consolidated Statements of Stockholders' Equity for the three and six months ended June 30, 2025 and 2024 (unaudited)](#a_003) | 5 |
|  | [Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024 (unaudited)](#a_004) | 6 |
|  | [Notes to Condensed Consolidated Financial Statements](#a_017) | 7 |
| &nbsp;&nbsp;&nbsp;Item 2. | [MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL AND RESULTS OF OPERATIONS](#a_005) | 20 |
| &nbsp;&nbsp;&nbsp;Item 3. | [QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#a_006) | 24 |
| &nbsp;&nbsp;&nbsp;Item 4. | [CONTROLS AND PROCEDURES](#a_007) | 24 |
| **[PART II](#a_008)** |  |  |
| &nbsp;&nbsp;&nbsp;Item 1. | [LEGAL PROCEEDINGS](#a_009) | 25 |
| &nbsp;&nbsp;&nbsp;Item 1A. | [RISK FACTORS](#a_010) | 25 |
| &nbsp;&nbsp;&nbsp;Item 2. | [UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](#a_011) | 25 |
| &nbsp;&nbsp;&nbsp;Item 6 | [EXHIBITS](#a_015) | 25 |
| &nbsp;&nbsp;&nbsp;[SIGNATORIES](#a_016) | &nbsp;&nbsp;&nbsp;[SIGNATORIES](#a_016) | 26 |

---

**CALLAN JMB INC.**

**(Formerly known as Coldchain Technology Services, LLC)**

**CONDENSED CONSOLIDATED BALANCE SHEETS** 

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025<br> (Unaudited)** | **December 31, 2024** |
| Assets |  |  |
| Current Assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $4224151 | $2097945 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net of allowance for credit losses of $139,060 and $64,000, respectively | 614211 | 622914 |
| &nbsp;&nbsp;&nbsp;Inventory | 197506 | 158362 |
| &nbsp;&nbsp;&nbsp;Related party loans |  | 18669 |
| &nbsp;&nbsp;&nbsp;Tax refund receivable |  | 6377 |
| &nbsp;&nbsp;&nbsp;Prepaid insurance | 75478 | 151354 |
| &nbsp;&nbsp;&nbsp;Other current assets | 478902 | 127542 |
| &nbsp;&nbsp;&nbsp;Deferred offering costs | - | 136025 |
| Total current assets | 5590248 | 3319188 |
| &nbsp;&nbsp;&nbsp;Right of use assets – operating lease | 2127646 | 883029 |
| &nbsp;&nbsp;&nbsp;Property and equipment, net of accumulated depreciation of $685,103 and $608,703, respectively | 1247787 | 876682 |
| &nbsp;&nbsp;&nbsp;Security deposit | - | 3650 |
| Total assets | $8965681 | $5082549 |
| Liabilities and Stockholders' Equity |  |  |
| Current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $430859 | $371661 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 518776 | 506381 |
| &nbsp;&nbsp;&nbsp;Corporate taxes payable | 30508 | 23000 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 2018 | 94097 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities – current | 329278 | 279176 |
| Total current liabilities | 1311439 | 1274315 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities – non-current | 1828955 | 628274 |
| &nbsp;&nbsp;&nbsp;Deferred tax liabilities | - | 6602 |
| Total long-term liabilities | 1828955 | 634876 |
| Total liabilities | 3140394 | 1909191 |
| Commitments and Contingencies – Note 10 |  |  |
| Stockholders' Equity |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock - authorized 10,000,000 shares, $0.001 par value; zero issued and outstanding as of June 30, 2025 and December 31, 2024 | $- | $- |
| &nbsp;&nbsp;&nbsp;Common stock - authorized 190,000,000 shares, par value $0.001 par value; 4,481,069 issued and outstanding as of June 30, 2025 and 3,000,000 December 31, 2024 | 4482 | 3000 |
| &nbsp;&nbsp;&nbsp;Additional Paid in Capital | 10756439 | 5464006 |
| &nbsp;&nbsp;&nbsp;Accumulated Deficit | (4935634) | (2293648) |
| Total Stockholders' Equity | 5825287 | 3173358 |
| Total Liabilities and Stockholders' Equity | $8965681 | $5082549 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**CALLAN JMB INC.**

**(Formerly known as Coldchain Technology Services, LLC)**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** 

**(UNAUDITED)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** |
|  | **June 30, 2025** | **June 30, 2024** | **June 30, 2025** | **June 30, 2024** |
| Revenue | $1666309 | $1985768 | $3115687 | $3776289 |
| Cost of revenue | 1022439 | 1023552 | 1858724 | 2096490 |
| Gross profit | 643870 | 962216 | 1256963 | 1679799 |
| Selling, general and administrative expenses | 2046537 | 1095639 | 3901878 | 1900681 |
| Loss from operations | (1402667) | (133423) | (2644915) | (220882) |
| Other income (expenses) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 2042 | 2753 | 4251 | 6187 |
| &nbsp;&nbsp;&nbsp;Interest expense | - | (1806) | (63) | (4914) |
| Total other income (expenses) | 2042 | 947 | 4188 | 1273 |
| Loss before income taxes | (1400625) | (132476) | (2640727) | (219609) |
| Provision (benefit) for income taxes | (3102) | (20000) | 1259 | (26000) |
| Net loss | $(1397523) | $(112476) | $(2641986) | $(193609) |
| Weighted average common shares outstanding - basic and diluted (See Notes 3 and 4) | 4456962 | 3000000 | 4167828 | 2483333 |
| Net loss per common share - basic and diluted (See Notes 3 and 4) | $(0.31) | $(0.04) | $(0.63) | $(0.08) |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**CALLAN JMB INC.**

**(Formerly known as Coldchain Technology Services, LLC)**

**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY** 

**(UNAUDITED)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Additional Paid in**<br>**Capital** | **Accumulated**<br>**Deficit** | **Stockholders'**<br>**Equity** |
| January 1, 2025 |  |  | 3000000 | $3000 | $5464006 | $(2293648) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3173358 |
| Net loss |  |  |  |  |  | (1240590) | (1240590) |
| Common stock issued in initial public offering, net of costs |  |  | 1280000 | 1280 | 3950588 |  | 3951868 |
| Common stock issued in initial public offering (over allotment), net of costs |  |  | 163569 | 164 | 591956 |  | 592120 |
| Stock based compensation |  |  | - | - | 330825 | - | 330825 |
| March 31, 2025 |  |  | 4443569 | 4444 | 10337375 | (3534238) | 6807581 |
| Immaterial revisions (See Note 2) |  |  |  |  |  | (3873) | (3873) |
| Net loss |  |  |  |  |  | (1397523) | (1397523) |
| Stock based compensation |  |  |  |  | 419102 |  | 419102 |
| Restricted stock unit awards vesting |  |  | 37500 | 38 | (38) | - | - |
| June 30, 2025 |  |  | 4481069 | $4482 | $10756439 | $(4935634) | $5825287 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Total Members**<br> **Capital** | **Additional Paid in**<br> **Capital** | **Accumulated**<br> **Deficit** | **Stockholders'**<br> **Equity** |
| January 1, 2024 |  | $&nbsp;&nbsp;&nbsp;&nbsp; - |  | $- | $8795260 | $- | $- | $8795260 |
| Net loss |  |  |  |  |  |  | (81133) | (81133) |
| Distributions |  |  |  |  | (3382253) |  |  | (3382253) |
| Membership exchange for common stock (See Note 3) |  | - | 3000000 | 3000 | (5413007) | 5410007 | - | - |
| March 31, 2024 |  | $- | 3000000 | $3000 | - | $5410007 | $(81133) | $5331874 |
| Net loss |  | - | - | - | - | - | (112476) | (112476) |
| June 30, 2024 |  | $- | 3000000 | $3000 | - | $5410007 | $(193609) | $5219398 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**CALLAN JMB INC.**

**(Formerly known as Coldchain Technology Services, LLC)**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(UNAUDITED)**

---

| | | |
|:---|:---|:---|
|  | **Six months ended** | **Six months ended** |
|  | **June 30, 2025** | **June 30, 2024** |
| **Cash flows from operating activities:** |  |  |
| Net loss | $(2641986) | $(193609) |
| Adjustment to reconcile net loss to net cash provided by (used in) operating activities: |  |  |
| Depreciation | 76401 | 72428 |
| Provision (recoveries) for credit losses | (7666) |  |
| Stock based compensation | 749927 |  |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 16369 | 63329 |
| &nbsp;&nbsp;&nbsp;Inventory | (39144) | (4412) |
| &nbsp;&nbsp;&nbsp;Tax refund receivable | 6377 |  |
| &nbsp;&nbsp;&nbsp;Other current assets | (271834) | 85540 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | 6166 | 1952 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 71593 | 282352 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | (92079) | (6056) |
| &nbsp;&nbsp;&nbsp;Deferred tax liabilities | (6602) |  |
| &nbsp;&nbsp;&nbsp;Corporate taxes payable | 7508 | (26000) |
| Net cash provided by (used in) operating activities | $(2124970) | $275524 |
| **Cash flows used in investing activity:** |  |  |
| Purchase of property and equipment | (447506) | (45874) |
| Net cash used in investing activity | $(447506) | $(45874) |
| **Cash flows from (used in) financing activities:** |  |  |
| Related party loans | 18669 | (17073) |
| Deferred offering costs |  | (65000) |
| Partner distributions |  | (3382254) |
| Decrease in note payable |  | (73222) |
| Proceeds from IPO and overallotment, net | 4680013 | - |
| Net cash provided by (used in) financing activities | $4698682 | $(3537549) |
| **Increase (decrease) in cash and cash equivalents** | 2126206 | (3307899) |
| **Cash and cash equivalents at beginning of period** | 2097945 | 5155620 |
| **Cash and cash equivalents at end of period** | $4224151 | $1847721 |
| Supplemental disclosures of cash flow information: |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | $63 | $5219 |
| Supplemental Schedule of Non-Cash Financing and Investing Activities: |  |  |
| &nbsp;&nbsp;&nbsp;Right of use assets acquired and operating lease liabilities | $708321 | $900133 |
| &nbsp;&nbsp;&nbsp;Right-of-use assets and operating lease liabilities due to lease modifications | $704927 | - |
| &nbsp;&nbsp;&nbsp;Membership exchange for common stock | - | $5413007 |
| &nbsp;&nbsp;&nbsp;Fair value of Stock Warrants issued at IPO | $144358 | - |
| &nbsp;&nbsp;&nbsp;Deferred offering costs charged to additional paid-in-capital | $136025 | - |
| &nbsp;&nbsp;&nbsp;Restricted stock unit awards vesting | $38 | - |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**CALLAN JMB INC.**

**(Formerly known as Coldchain Technology Services, LLC)**

**NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(UNAUDITED)**

**NOTE 1 – NATURE OF OPERATIONS**

Callan JMB Inc. (which may be referred to as "Callan," "Callan JMB," , "CJMB", "Company," "we," "us," or "our") was formed on January 24, 2024, in the state of Nevada for the purposes of reorganizing and becoming a holding company for Coldchain Technology Services, LLC and Callan JMB Services (India) Private Limited. CTS was formed on December 27, 2006, in the state of Texas and is our main operating subsidiary engaged in a vertically integrated logistics and fulfillment ecosystem that utilizes advanced predictive technology for the supply chain by guaranteeing the safety, effectiveness, and potency of every product handled to ensure product integrity, and to provide immediate response in time sensitive industries while ensuring environmental responsibility. Callan JMB Services (India) Private Limited is domiciled in Pune, Maharashtra, India and is 99.9% owned by Callan JMB and have no operations or activities as of June 30, 2025. The Company's headquarters are located in Spring Branch, Texas.

The interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended December 31, 2024 and notes thereto contained in the Company's Form 10-K filed with the Securities and Exchange Commission. The condensed consolidated balance sheet at December 31, 2024 has been derived from the audited financial statements at that date. The results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2025.

**NOTE 2 – RECLASSIFICATIONS AND REVISIONS TO MARCH 31, 2025 CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

*Reclassifications*

Certain prior year amounts in the Consolidated Financial Statements and the notes thereto have been reclassified where necessary to conform to the current period's presentation. These reclassifications did not affect the prior period's total assets, total liabilities, stockholders' equity, net income, or net cash provided by operating activities.

*Revisions to March 31, 2025 Condensed Consolidated Financial Statements*

During the preparation of the financial statements for the three months and six months period ended June 30, 2025, the Company identified revisions in the previously issued financial statements for the three months ended March 31, 2025. These revisions related to lease modifications during the three months ended March 31, 2025 as well as separate revisions related to the timing of expense recognition for invoices received and certain prepaid assets. These items were identified as part of management's review of the financial results for the three and six months ended June 30, 2025. The amounts of the revisions to the March 31, 2025 consolidated financial statements were not deemed to be material by management.

 

The revisions to the three months ended March 31, 2025 consolidated financial statements are as follows:

** 

---

| | | | |
|:---|:---|:---|:---|
| **Financial Statement Line Item** | **As Previously Reported** | **Revisions** | **As Revised** |
| Right of use asset | $799739 | $324352 | $1124091 |
| Other current assets | $180328 | $104106 | $284434 |
| Total Assets | $8455666 | $428458 | $8884124 |
| Operating lease liabilities – current | $236343 | $44453 | $280796 |
| Operating lease liabilities - non-current | $592587 | $280924 | $873511 |
| Accrued expenses | $390461 | $106954 | $497415 |
| Total Liabilities | $1648085 | $432331 | $2080416 |
| Retained earnings | $(3534238) | $(3873) | $(3538111) |
| Total Equity | $6807581 | $(3873) | $6803708 |

---

**NOTE 3 – REORGANIZATION**

Pursuant to the Reorganization Agreement dated February 2, 2024, and for the six months ended June 30, 2024, each member of CTS exchanged 100% of their membership interest for 5,000,000 shares of the Company's common stock. As a result, each member of CTS became a shareholder of the Company and CTS became a direct, wholly owned subsidiary of the Company.

Pursuant to an Exchange and Reorganization Agreement, dated as of November 14, 2024, among the Company and all of the existing stockholders of the Company, such stockholders have exchanged all their existing shares for new shares at a ratio of 0.6 new share for 1 existing share ("reverse stock split"). As a result of the exchange, the total number of shares of Company stock outstanding was reduced from 5,000,000 shares to 3,000,000 shares. As a result of this reverse stock split, we have retroactively presented the outstanding number of shares and related earnings per-share calculations for the three months and six months ended June 30, 2024 comparative period consolidated financial statements.

**CALLAN JMB INC.**

**(Formerly known as Coldchain Technology Services, LLC)**

**NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(UNAUDITED)**

**NOTE 3 – REORGANIZATION (CONTINUED)**

The following unaudited pro forma financial information has been prepared to reflect the effects of the reorganization of CTS from a partnership to a C corporation on February 14, 2024. The pro-forma financial information presents the financial results of the Company as if it had been taxed as a C corporation for the six months ended June 30, 2024.

**Callan JMB**

**(formerly known as Coldchain Technology Services, LLC)**

**Balance Sheets**

---

| | | |
|:---|:---|:---|
|  | **Unaudited<br> Historical** | **Unaudited<br> Pro-forma<br> with tax accrual** |
|  | **June 30, 2024** | **June 30, 2024** |
| Assets |  |  |
| &nbsp;&nbsp;&nbsp;Total assets | $7066021 | $7066021 |
| Liabilities and Stockholders' Equity |  |  |
| Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Corporate taxes payable | 41000 | 41000 |
| &nbsp;&nbsp;&nbsp;Related party loans | 17134 | 2059134 |
| &nbsp;&nbsp;&nbsp;Total liabilities | 1846623 | 3888623 |
| &nbsp;&nbsp;&nbsp;Stockholders' Equity |  |  |
| &nbsp;&nbsp;&nbsp;Common stock | 3000 | 3000 |
| Additional paid in capital | 5410007 | 5410007 |
| Retained earnings (deficit) | (193609) | (2235609) |
| &nbsp;&nbsp;&nbsp;Total Stockholders' Equity | 5219398 | 3177398 |
| &nbsp;&nbsp;&nbsp;Total Liabilities and Stockholders' Equity | $7066021 | $7066021 |

---

Assumptions for each of the pro-forma balance sheets are below:

a. The Company was a C Corporation as of January 1, 2022.

b. The pro forma balance sheets include an accrual for federal tax and state corporate taxes at a "blended rate" of 23% and was paid in the subsequent fiscal year.

c. Stockholders/loan the Company $2,042,000 to pay the assumed taxes, the loan will bear interest at the prime rate of interest.

d. The pro-forma adjustments do not include adjustments for deferred tax assets or liabilities due to the immateriality of the temporary differences at the date of the reorganization and are expected to reverse in the near term with minimal impact on the financial statements.

e. No other financial data is being shown as there is no impact to the conversion to a C-Corp.

Pro forma income statements showing the pro-forma income taxes, net earnings per share for the six months June 30, 2024 are produced below. This information is unaudited.

---

| | | |
|:---|:---|:---|
|  | **Unaudited<br> Actual** | **Unaudited<br> Pro-forma<br> with tax accrual** |
|  | **June 30, 2024** | **June 30, 2024** |
| Revenue | $3776289 | $3776289 |
| Operating loss | (220882) | (220882) |
| Provision for income taxes | (26000) | (26000) |
| Net loss | $(193609) | $(193609) |
| Basic and diluted loss per common share | $(0.08) | $(0.08) |

---

**NOTE 4 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

*Basis of Presentation and Principles of consolidation*

The accompanying consolidated financial statements and related notes have been prepared in accordance with "U.S. GAAP" and present the consolidated financial statements of the Company and its wholly owned subsidiary. All intercompany transactions and balances are eliminated in consolidation.

*Use of Estimates*

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions about future events that affect the amounts reported in the consolidated financial statements and the accompanying notes. Management bases its estimates on historical experience and other assumptions that it believes to be reasonable at the time. Actual results could differ from those estimates and any such differences may be material to the financial statements. Significant estimates are contained in the accompanying financial statements for the useful lives for depreciation and amortization of long-lived assets, allowance for credit losses, stock based compensation and the incremental borrowing rate used in determining the right-of-use assets and operating lease liabilities.

 

**CALLAN JMB INC.**

**(Formerly known as Coldchain Technology Services, LLC)**

**NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**NOTE 4 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**

*Cash and Cash Equivalents*

The Company deposits its cash with high credit quality financial institutions. The Company's accounts at these institutions are insured by the Federal Deposit Insurance Corporation ("FDIC") up to $250,000. All cash amounts in excess of $250,000 are unsecured. The Company has a deposit placement agreement for Insured Cash Sweep Service ("ICS"). This service is a secured, and convenient way to access FDIC protection on large deposits, earn a return, and enjoy flexibility. The Company believes that the ICS agreement will mitigate its credit risk as it relates to uninsured FDIC amounts in excess of $250,000. At June 30, 2025 and December 31, 2024, the Company's balances exceeded federally insured limits by approximately $3,938,865 and $2,120,000, respectively.

*Accounts Receivable*

Accounts receivable are recorded at the invoiced amount, which is the amount the Company expects to collect from its customers. Generally, payment is due from customers within 30-90 days of the invoice date. On a regular basis, the Company evaluates its accounts receivable and establishes the allowance for credit losses based on an evaluation of certain criteria and evidence of collection uncertainty including historical collection trends, reasonable expectations of future collections, current economic trends and changes in customer payment patterns. Past-due receivable balances are written off when the Company's collection efforts have been deemed unsuccessful. The Company maintains an allowance for credit losses to reserve for potential uncollectible receivables. The allowance for credit losses as of June 30, 2025, and December 31, 2024, was $139,060 and $64,000, respectively. Net changes to the allowance primarily relates to provision (recoveries) for credit losses of ($7,666) and $82,000 related to reinstated invoices previously charged off for the six months ended June 30, 2025.

*Credit Concentration*

The concentration of credit risks in accounts receivable is due to certain large customers comprising the Company's customer base throughout North America. The Company maintains policies over credit extension that include credit evaluations, credit limits and collection monitoring procedures on a customer-by-customer basis. However, the Company generally does not require collateral before services are performed.

The Company has several customers for the three and six months ended June 30, 2025 and 2024 that make up in excess of 10% of revenue as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|<br>**Customer** | **June 30, 2025** | **June 30, 2024** | **June 30, 2025** | **June 30, 2024** |
| 1 | 60% | 49% | 58% | 47% |
| 2 | 16% | 11% | 15% | 10% |
| 3 | 0% | 29% | 3% | 25% |

---

The Company has several customers as of June 30, 2025 and December 31, 2024 that make up in excess of 10% of accounts receivable as follows:

---

| | | |
|:---|:---|:---|
| **Customer** | **2025** | **2024** |
| 1 | 37% | 48% |
| 2 | 23% | 25% |
| 3 | 16% | 0% |
| 4 | 0% | 14% |

---

The Company has several vendors as of June 30, 2025 and December 31, 2024 that make up in excess of 10% of accounts payable as follows:

---

| | | |
|:---|:---|:---|
| **Vendor** | **2025** | **2024** |
| 1 | 51% | 0% |
| 2 | 0% | 60% |
| 3 | 0% | 26% |
| 4 | 12% | 0% |

---

The Company has one vendor for the three and six months ended June 30, 2025 and 2024 that make up equal to or more than 10% of services rendered to us as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|<br>**Vendor** | **June 30, 2025** | **June 30, 2024** | **June 30, 2025** | **June 30, 2024** |
| 1 | 12% | 11% | 9% | 11% |

---

**CALLAN JMB INC.**

**(Formerly known as Coldchain Technology Services, LLC)**

**NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**NOTE 4 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**

 

*Inventory*

Inventory is stated at the lower of cost (using the *first*-in, *first*-out method ("FIFO")) or net realizable value. We continually analyze our slow moving and excess inventories. Based on historical and projected sales volumes and anticipated selling prices, we determined that establishing a reserve was not necessary at this time. Inventory that is in excess of current and projected use is reduced by an allowance to a level that approximates its estimate of future demand. Products that are determined to be obsolete are written down to net realizable value. The Company's inventory is comprised of raw materials for customer packaging needs as follows:

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| Raw materials | $197506 | $158362 |

---

*Property and Equipment*

Property and equipment, net, is stated at cost less accumulated depreciation. Expenditures for major renewals and improvements that extend the life or usefulness of the asset are capitalized. Items of an ordinary repair or maintenance nature are charged directly to operating expense as incurred. During the construction and development period of an asset, the costs incurred, including interest expense, are classified as construction-in-progress. When the asset is ready for its intended use, the asset is reclassified to an appropriate asset classification and depreciation, or amortization commences.

The Company depreciates and amortizes the capitalized cost of these assets, using the straight-line method, as follows:

Asset Classification:

Computer equipment 3-5 years

Furniture and fixtures 5-8 years

Leasehold Improvements limited to lease term

The Company recognized depreciation expense of $76,401 and $72,428 for the six months ended June 30, 2025 and 2024, respectively, as well as $38,542 and $35,524 for the three months ended June 30, 2025 and 2024 in its consolidated statements of operations, respectively. Fully depreciated assets are retained in property and equipment and accumulated depreciation until they are removed from service.

The Company tests for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. An impairment in the carrying value of long-lived assets is recognized if the expected future undiscounted cash flows derived from the assets, or group of assets, are less than their carrying value. The Company did not record any impairment charges related to long-lived assets in the periods presented.

*Revenue Recognition*

The Company recognizes revenue when control of the promised goods or services is transferred to the Company's customers. Revenue is recorded at the transaction price, which is the amount that reflects the consideration the Company expects to receive in exchange for providing the goods or services. The Company's primary performance obligations in our contracts with customers are to provide services related to emergency preparedness or to deliver specialty packaging. Most of the Company's revenues are for services, which are recognized over time as the related time and materials are incurred at contractually agreed-upon rates. Product revenues are recognized at a point in time when the products are delivered and control transfers to the customer. The Company's payment terms vary by the type of customer and the products or services offered. The periods between invoicing and when payments are due are not significant. Amounts billed to customers related to shipping and handling are classified as revenue and the Company's shipping and handling costs are included in costs of revenues.

*Disaggregation of Revenue*

The following table presents our disaggregated revenues by distribution channel:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| Sales by distribution channel: | **2025** | **2024** | **2025** | **2024** |
| Emergency preparedness | $1130988 | $1050360 | $2072710 | $2053541 |
| Specialty packaging | 535321 | 935408 | 1042977 | 1722748 |
| Total | $1666309 | $1985768 | $3115687 | $3776289 |

---

**CALLAN JMB INC.**

**(Formerly known as Coldchain Technology Services, LLC)**

**NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**NOTE 4 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| Sales by customer type: | **2025** | **2024** | **2025** | **2024** |
| Governmental | $1257216 | $1074650 | $2335252 | $2164636 |
| Non-governmental | 409093 | 911118 | 780435 | 1611653 |
| Total | $1666309 | $1985768 | $3115687 | $3776289 |

---

*Emergency preparedness*

We provide comprehensive services primarily to state and local governments. These services include managing their building sites, medical stockpiles of equipment, supplies and responding to state or local emergencies. We also provide Quality Control/Assurance to safeguard vaccines, medical supplies, and equipment. Revenue is recognized when services are rendered or medical supplies are shipped.

*Specialty Packaging.*

Our specialty temperature-regulating packaging solutions provide a better thermal system to maintain and protect products and ensure peak customer experience. In utilizing this packaging, customers yield the benefits of lower costs and overhead while improving process, agility, velocity, accuracy, and repeatability of complex fulfillment networks. Revenue is recorded when products are delivered, or services are rendered. Additionally, it also includes amounts billed to customers related to shipping and handling are classified as revenue and the Company's shipping and handling costs are included in costs of revenues.as well as the Company's contract with a customer for cloud-based temperature monitoring software. The customer paid their contract in advance and therefore revenue is earned monthly over the term of the contract.

*Stock Warrants*

During the six months ended June 30, 2025, the Company granted 72,179 stock warrants to various individuals of the underwriting firm that assisted the Company with its initial public offering on February 4, 2025. The stock warrants were issued in lieu of cash for a portion of their services. The Company accounts for its warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant's specific terms and applicable authoritative guidance in ASC 480, "*Distinguishing Liabilities from Equity*" and ASC 815, "*Derivatives and Hedging*". The assessment considers whether the warrants are freestanding financial instruments that would require classification as a liability under ASC 480, as well as whether the warrants qualify for equity classification or require liability classification after consideration of the guidance and criteria outlined in ASC 815, including whether the warrants are indexed to the Company's own common shares and whether the warrant holders could potentially require "net cash settlement" in a circumstance outside of the Company's control, among other conditions that impact classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance. For issued warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. As of June 30, 2025, the Company's consolidated balance sheet included equity classified warrants, reported as part of the additional paid in capital.

*Stock-Based Compensation*

The Company provides stock-based compensation to its employees and Board of Directors. The Company is required to exercise judgment and make estimates when determining the (i) fair value of each award granted and (ii) projected number of awards expected to vest. The Company calculates the fair value of all stock-based awards at the date of grant using the Black-Scholes option-pricing model for stock options and Monte Carlo simulation model for market-based awards. The Company uses the straight-line method to amortize this fair value as compensation cost over the requisite service period. Any forfeitures are recognized as they occur.

 

**CALLAN JMB INC.**

**(Formerly known as Coldchain Technology Services, LLC)**

**NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

 

**NOTE 4 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**

 

*Net Loss per Common Share*

The following table sets forth the number of potential shares of common stock that have been excluded from diluted net income per share because their effect was anti-dilutive for the three months and six months ended June 30, 2025 and June 30, 2024:

SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2024** |
| Stock Options | 1187500 |  |
| Restricted Stock Awards | 512500 |  |
| Stock Warrants | 72179 |  |
| Total | 1772179 |  |

---

*Cost of Revenues*

Our cost of revenue primarily includes the amounts paid to outside service providers, monitoring, direct and indirect labor, warehouse rent and other related expenses.

*Advertising Expense*

Advertising costs primarily consist of trade shows, other promotional expenses and the cost to retain our marketing firm. Advertising costs are expensed as incurred. Advertising expense for the three months ended June 30, 2025 and 2024 was $148,600 and $0, respectively. Advertising expense for the six months ended June 30, 2025 and 2024 was $289,549 and $2,916, respectively.

*Deferred Offering Costs*

Deferred offering costs consist of investment banking fees, professional fees and other expenses incurred through the balance sheet date that are directly related to the IPO and were charged to Additional Paid in Capital upon the completion of the IPO. As of June 30, 2025 and December 31, 2024, the Company had deferred offering costs of $0 and $136,025, respectively.

*Deferred Revenue*

Deferred revenue represents customer billings for services that are not yet rendered and is primarily related to customer invoices billed before services are rendered and for billings of annual or multi-year service contracts. As of June 30, 2025 and December 31, 2024, the Company has deferred revenue of $2,018 and $94,097 which will be recognized over the next year.

**CALLAN JMB INC.**

**(Formerly known as Coldchain Technology Services, LLC)**

**NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**NOTE 4 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**

 

*Income Tax*

Prior to the reorganization as described in Note 1, the Company' historical operations were contained within a limited liability company. Accordingly, under the Internal Revenue Code, all taxable income or loss flowed through to its members until February 14, 2024. Therefore, no provision for federal income tax had been recorded in the accompanying financial statements for January 2024 and through February 14, 2024. Income from the Company was reported and taxed to the members on their individual tax returns. However, the Company has provided a provision for taxes in certain states that require an entity level tax.

The Company provides for income taxes and the related accounts under the asset and liability method. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates expected to be in effect during the year in which the basis differences reverse. Valuation allowances are established when management determines it is more likely than not that some portion, or all, of the deferred tax assets will not be realized.

*Leases*

The Company's leases predominantly relate to real estate and equipment, such as vehicles and industrial equipment utilized in operations. Contracts are reviewed at inception to determine if the arrangement is a lease. The Company generally enters into long-term real estate leases with one to ten-year terms. In the normal course of business, the Company also enters into short-term leases having terms of one year or less. These leases are generally equipment leases and storage areas entered into for short periods of time (e.g., daily, weekly, or monthly) to satisfy immediate and/or short-term operational needs of the business which can arise based upon the nature of particular services performed. Short term lease expenses relating to these agreements amounted to $119,990 and $0 for the three months ended June 30, 2025 and 2024, respectively and $237,224 and $0 for the six months ended June 30, 2025 and 2024, respectively. The Company has elected not to recognize right-of-use ("ROU") assets and lease liabilities for these short-term leases. Operating leases with terms exceeding one year are recognized as ROU assets and lease liabilities and measured at commencement date based on the present value of the future lease payments over the lease term. Certain of the Company's real estate leases contain escalating future lease payments. Escalating lease payments that are based upon explicit amounts contained in the lease or an index (e.g., consumer price index) are included in the Company's determination of future lease payments to determine the ROU asset and lease liability recognized at the commencement date. A significant portion of the Company's real estate lease agreements include renewal periods at the Company's option. The Company includes these renewal periods in the lease term only when renewal is reasonably certain based upon facts and circumstances specific to the lease and known by the Company. The Company uses its incremental borrowing rate available at the lease commencement date in determining the present value of future lease payments as the implicit rate is typically not readily determinable. For operating leases, lease cost is recognized on a straight-line basis over the lease term and is included in cost of revenues or selling, general and administrative expenses depending on the use of the asset. As of June 30, 2025, and December 31, 2024, the Company did not have any leases that were classified as finance leases.

**CALLAN JMB INC.**

**(Formerly known as Coldchain Technology Services, LLC)**

**NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**NOTE 5- ACCRUED EXPENSES**

Accrued expenses consist of the following:

**** 

---

| | | |
|:---|:---|:---|
|  | **(Unaudited)**<br>**June 30, 2025** |<br>**December 31, 2024** |
| Payroll and related costs | $229833 | $169580 |
| Credit card | 84330 | 86708 |
| Professional Fees | 30978 |  |
| Settlement of lawsuit |  | 240800 |
| Consulting fees | 75000 |  |
| Storage | 40494 |  |
| Other | 58141 | 9293 |
|  | $518776 | $506381 |

---

**NOTE 6 – RELATED PARTY TRANSACTIONS**

*Business Partner*

Health Hero America, who is a related party by virtue of common ownership of the Company. There were no transactions with the related party during the three months and six months ended June 30, 2025 and 2024. As of June 30, 2025, and December 31, 2024, the Company has $0 owed to this related party.

Cold Chain Delivery Systems ("CCDS"), who is a related party by virtue of common ownership of the Company. There were no transactions with the related party during the three and six months ended June 30, 2025 and 2024. As of June 30, 2025, and December 31, 2024, the Company has $0 owed to this related party.

Outlaw Run Ranch ("ORR") is a related party by virtue of common ownership of the Company. The Company pays $9,800 per month to ORR for rent expense. As of June 30, 2025, and December 31, 2024, the Company has $0 owed to this related party. As of June 30, 2025 and December 31, 2024, operating lease liability relating to such lease agreement with this related party amounted to $327,405 and $88,435, respectively. See Note 10 for other key terms of the lease agreement.

Warehouse Asset Management is a related party by virtue of common ownership. The Company leases its headquarters, warehouse, other warehouse equipment and a box truck for $15,425 per month. As of June 30, 2025, and December 31, 2024, the Company has $0 owed to this related party. As of June 30, 2025 and December 31, 2024, operating lease liability relating to such lease agreement with this related party amounted to $679,612 and $741,729, respectively.

During the six months ended June 30, 2025, and the year ended December 31, 2024 the Company made advancements of $0 and $18,669 respectively, to the director of the Company. The advances are due on demand, non-interest bearing, and classified within the balance sheet as a current asset. As of June 30, 2025 and December 31, 2024, the amounts owed from the director were $0 and $18,669, respectively. The amount owed as of December 31, 2024 was repaid in full in 2025.

During the six months ended June 30, 2025 the Company awarded 100,000 stock options to the CEO's son as compensation for services rendered in a prior period and is subject to the same vesting condition as the Company's other stock option awards. 12,500 stock options have vested and fully exercisable as of June 30, 2025 and 87,500 stock options remain unvested. The key terms and fair value inputs and assumptions utilized for this stock option are disclosed in Note 9. The Company recognized $43,698 as an expense for the six months ended June 30, 2025.

Related party rent expenses are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months ended** | **Three Months ended** | **Six Months ended** | **Six Months ended** |
| | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
| <br>Related Party | **2025** | **2024** | **2025** | **2024** |
| ORR | $29400 | $22500 | $51900 | $45000 |
| Warehouse Asset Management | 46275 | 45000 | 92550 | 90000 |
| Total | $75675 | $67500 | $144450 | $135000 |

---

The Company has performed an analysis under ASC 810 and has determined that the aforementioned related parties do not qualify as a Variable Interest Entity and therefore those entities were not consolidated in the preparation of the accompanying financial statements.

**CALLAN JMB INC.**

**(Formerly known as Coldchain Technology Services, LLC)**

**NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**NOTE 7 - SEGMENTS**

Operating segments are identified as components of an enterprise for which separate discrete financial information is available for evaluation by the Company's Chief Operating Decision Maker ("CODM") to make decisions with respect to resource allocation and assessment of performance. To date, the Company has viewed its operations and manages its business as one operating segment. The results of its operating segment are reviewed monthly by the Company's Chief Executive Officer and President, who has been identified as the CODM.

The CODM regularly assesses the performance of the single operating segment and reporting segment and decides how to allocate resources based on net income calculated on the same basis as net income reported in the Company's statements of operations. The CODM is also regularly provided with expense information at a level consistent with that disclosed in the Company's statements of operations.

**NOTE 8 - EQUITY**

During February 2025, we completed our initial public offering ("IPO") of 1,280,000 shares of common stock at a price of $4.00 per share, generating gross proceeds of $5,120,000. Additionally, the underwriters partially exercised their over-allotment option (the "green shoe"), purchasing approximately 164,000 shares at $4.00, resulting in additional gross proceeds of approximately $656,000. In total, the offering generated gross proceeds of approximately $5,776,000. After deducting underwriting discounts and commissions of approximately $1,000,000, we received net proceeds of approximately $4,700,000. In connection with the offering, we issued to the underwriters warrants to purchase up to 72,179 shares of our common stock at an exercise price of $4.80 per share for a total value of $144,358. These warrants have a term of five years from the effective date of the registration statement. We also incurred $188,832 of deferred offering costs.

During the three months ended June 30, 2025, we did not issue any additional shares of common stock in public offerings. However, equity activity during the period primarily consisted of the issuance of restricted stock units ("RSUs") and the related common stock issued upon their vesting. In connection with previously granted RSUs under the 2025 Equity Incentive Plan, on June 30, 2025, holders of total of 37,500 RSUs have fully vested, resulting in the issuance of 37,500 shares of common stock. The RSUs had been originally granted in February 2025 and were subject to vesting conditions. The shares issued upon vesting as restricted securities. There were no new option grants, warrant issuances, or modifications to existing equity awards during the period.

As of June 30, 2025, the Company had the following equity awards outstanding: RSUs: 37,500 vested RSUs for the six months ended June 30, 2025 in total out of the total 75,000. Performance based RSUs: 225,000 and market based RSUs: 250,000. Stock Options: 1,187,500 options outstanding under the Option 2035/02/05 plans. Underwriter Warrants: 72,179 warrants issued in February 2025 with a five-year term and an exercise price of $4.80 per share. All outstanding RSUs, options, and warrants remain subject to applicable vesting, lock-up, and control restrictions.

**NOTE 9 - SHARE BASED COMPENSATION**

*Overview*

The Company grants share-based compensation awards to the Company's employees as provided by the 2024 Equity Incentive Plan ("2024 Plan"), which was approved by the Company's stockholders on October 24, 2024. The 2024 Plan provides that grants may be in any of the following forms: incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units, and performance awards. The 2024 Plan will be administered and interpreted by the Compensation Committee of the Board of Directors. The Compensation Committee has the authority to determine the individuals to whom grants will be made under the 2024 Plan, determine the type, size and terms of the grants, determine the time when grants will be made and the duration of any applicable exercise or restriction period (subject to the limitations of the 2024 Plan) and deal with any other matters arising under the 2024 Plan. All the employees of the Company and its subsidiaries are eligible for grants under the 2024 Plan. Non-employee directors and consultants of the Company are also eligible to receive grants under the 2024 Plan.

The Company has reserved 1,500,000 shares of common stock for the granting of such awards. As of June 30, 2025, the Company has exceeded the permissible number of shares to be issued under the 2024 Plan by 200,000 share awards. The Company plans to file an amended Form S-8 to register shares to account for the overallotment. During the three months ended and six months ended June 30, 2025, the Company recognized share-based compensation expense of $419,102 and $749,927, respectively, which is recorded in selling, general and administrative expenses on the condensed consolidated statement of operations.

**CALLAN JMB INC.**

**(Formerly known as Coldchain Technology Services, LLC)**

**NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**NOTE 9 - SHARE BASED COMPENSATION (CONTINUED)**

*<u>Stock Options</u>*

A summary of nonstatutory stock option activity during the three months ended June 30, 2025 is included below.

SUMMARY OF STOCK OPTIONS ACTIVITY

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of Awards** | **Weighted- Average Exercise Price** | **Weighted- <br> Average <br> Remaining Contractual Term (in years)** | **Aggregate Intrinsic Value** |
| Outstanding at January 1, 2025 |  |  |  |  |
| Granted | 1275000 | $4.0 |  |  |
| Exercised |  |  |  |  |
| Forfeited | - | - | - | - |
| Outstanding at March 31, 2025 | 1275000 | $4.0 | 9.86 | $624750 |
| Granted |  |  |  |  |
| Exercised |  |  |  |  |
| Forfeited | (87500) | - | - | - |
| Outstanding at June 30, 2025 | 1187500 | $4.0 | 9.61 | 1341875 |
| Outstanding and Exercisable | 181250 | $4.0 | 9.61 | $204813 |

---

The fair value of each option granted was estimated on the date of grant using the Black-Scholes-Merton option-pricing model with the following assumptions:

SUMMARY OF FAIR VALUE OF OPTIONS

---

| | |
|:---|:---|
|  | **June 30, 2025** |
| Expected life (in years) | 5-10 years |
| Expected stock price volatility | 50-56% |
| Risk-free interest rate | 4.18%-4.36% |
| Dividend rate | 0% |

---

The risk-free interest rate was based on U.S. Treasury interest rates, the terms of which are consistent with the expected life of the stock options. Expected volatility was derived using the Company's peer volatility calculated from its peer companies' volatilities over the time period commensurate with the expected life of the stock options. The expected life for the stock options granted was calculated using the midpoint assumption equal to the time from the grate date to the midpoint of the weighted average vesting date and the expiration date. The Company does not currently pay dividends on its common stock nor does it expect to in the foreseeable future.

The weighted average grant date fair value of options granted was $2.27 per share. As of June 30, 2025, there was $2,107,979 of unrecognized expense for unvested stock options that is expected to be recognized over a weighted average period of 9.61 years. During the three months ended and six months ended June 30, 2025, the Company recognized share-based compensation expense of $340,500 and $593,431, respectively, which is recorded in selling, general and administrative expenses on the condensed consolidated statement of operations.

*<u>Performance-Based Awards</u>*

During the six months ended June 30, 2025, the Company granted 225,000 performance-based stock awards to its Chief Executive Officer. The grant date fair value was $4.00 per share. The vesting is subject to the Company meeting certain business and financial goals by October 15, 2026. As of June 30, 2025, none of the performance-based awards were probable of vesting and thus no expense was recognized during the three months and six months ended June 30, 2025.

**CALLAN JMB INC.**

**(Formerly known as Coldchain Technology Services, LLC)**

**NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**NOTE 9 - SHARE BASED COMPENSATION (CONTINUED)**

*<u>Market-Based Awards</u>*

During the six months ended June 30, 2025, the Company granted 250,000 market-based stock awards to its Chief Executive Officer. The weighted average grant date fair value was $0.04 per share, which was calculated using a Monte Carlo simulation model. The vesting is subject to the Company meeting certain market-based targets by October 15, 2026. The Company recognized $1,540 of expense related to these market-based awards for the three months ended June 30, 2025, compared to $831 in the first quarter.

SUMMARY OF RESTRICTED STOCK AWARDS

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Performance-Based** | **Performance-Based** | **Market-Based** | **Market-Based** |
|  | **Number of Awards** | **Weighted- Average Grant Date Fair Value** | **Number of Awards** | **Weighted- Average Grant Date Fair Value** |
| Outstanding at January 1, 2025 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - |  |  |
| Granted | 225000 | $4 | 250000 | $0.04 |
| Change in units based on performance |  |  |  |  |
| Forfeited | - | - | - | - |
| Outstanding at March 31, 2025 | 225000 | $4 | 250000 | $0.04 |
| Granted |  |  |  |  |
| Change in units based on performance |  |  |  |  |
| Forfeited | - | - | - | - |
| Outstanding at June 30, 2025 | 225000 | $4 | 250000 | $0.04 |

---

*<u>Restricted Stock Units</u>*

During the six months ended June 30, 2025, the Company granted 75,000 restricted stock units ("RSUs") to its Board of Directors. The RSUs were awarded at a price equal to the market price of the Company's underlying common stock on the date of grant. One-fourth of the RSUs vests each calendar quarter of 2025. During the three months ended and six months ended June 30, 2025, the Company recognized share-based compensation expense of $77,063 and $154,125, respectively, which is recorded in selling, general and administrative expenses on the condensed consolidated statement of operations. A total of 37,500 RSUs have fully vested as of June 30, 2025, resulting in the issuance of 37,500 shares of common stock.

*<u>Stock Warrants</u>*

The grant date fair value of the Company's stock warrants was $2.00, which was calculated using the Black-Scholes Merton option-pricing model with the following assumptions:

SUMMARY OF FAIR VALUE OF STOCK WARRANTS

---

| | |
|:---|:---|
|  | **June 30, 2025** |
| Expected life (in years) | 5 years |
| Expected stock price volatility | 56.83% |
| Risk-free interest rate | 4.16% |
| Dividend rate | 0% |

---

During the six months ended June 30, 2025, the Company fully recognized the fair value expense of $144,358, which is included with other costs related to the Company's issuance of common stock and presented as an offset to Additional Paid in Capital in the Condensed Consolidated Balance Sheet.

**NOTE 10 - COMMITMENTS AND CONTINGENCIES**

***Operating Leases***

The Company has various leases that expire between now and 2036. The Company's right-of-use assets and lease liabilities primarily represent lease payments that are fixed at the commencement of a lease and variable lease payments that are dependent on an index or rate. Lease payments are recognized as lease cost on a straight-line basis over the lease term, which is determined as the non-cancelable period, including periods in which termination options are reasonably certain of not being exercised and periods in which renewal options are reasonably certain of being exercised. The discount rate is determined using the Company's estimated incremental borrowing rate coinciding with the lease term at the commencement of a lease. The estimated incremental borrowing rate for the Company was determined to be between 3.0% - 10.6%. Rent expense for the three months ended June 30, 2025 and 2024 was $154,682 and $96,173, respectively. Rent expense for the six months ended June 30, 2025 and 2024 was $256,620 and $193,095, respectively. As of June 30, 2025, the weighted-average remaining operating lease term and discount rate are 6.8 years and 9.8%, respectively.

**CALLAN JMB INC.**

**(Formerly known as Coldchain Technology Services, LLC)**

**NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**NOTE 10 - COMMITMENTS AND CONTINGENCIES (Continued)**

***Operating Leases (Continued)***

 ****

On October 21, 2024, the Company entered into a long-term lease agreement for corporate office space with a third party. This agreement commenced on April 1, 2025, and requires payments of $11,884 monthly, escalating 3% per annum for a term of 120 months, which ends March 31, 2035. The Company has the option to renew such lease for up to an additional one-year term. The Company accounted for such lease as operating lease as there were no purchase option nor transfer of title at the end of the lease. The Company recognized right of use assets and operating lease liabilities amounted to $988,436. Additionally, the Company was also granted a tenant improvement allowance of $280,115. The Company determined that the improvements are lessee improvements and accordingly, recognized the tenant improvement allowance as a lease incentive and a reduction to the initial recognized right of use assets and operating lease liabilities. The Company expects to receive such lease incentives in the next twelve months from the balance sheet date.

On January 1, 2025, the Company entered into an amendment in its lease agreement with a third party wherein the Company is the lessee of certain commercial property. The amendment commenced on January 1, 2025, and extended the term from May 31, 2025 to December 31, 2029, and increase in monthly rent payments to from $3,650 monthly to $6,878 monthly subject to 3% increase per annum. The Company has the option to renew such lease to an additional one year term. Management determined that the renewal option is not reasonably certain to occur. The Company accounted for this amendment as a lease modification. There were no change in the lease classification as a result of this modification and the Company continues to recognize such a lease as operating lease. The Company remeasured its right of use assets and operating lease liabilities using an updated incremental borrowing rate. The change in right of use assets and operating lease liabilities related to this lease modification amounted to $324,104 for the three months and six months ended June 30, 2025.

On March 20, 2025, the Company entered into an amendment in its long-term lease agreement with a related party wherein the Company is the lessee of certain commercial property. The amendment commenced on April 1, 2025, and extended the term from December 31, 2025 to December 31, 2029, and increase the square footage of the leased property, a corresponding increase in monthly rent payments to from $7,500 monthly to $9,800 monthly. The Company has the option to renew such lease for up to an additional six month extension and month-to-month thereafter. Management determined that the renewal option is not reasonably certain to occur. The Company accounted for this amendment as a lease modification. There were no change in the lease classification as a result of this modification and the Company continues to recognize such a lease as operating lease. The Company remeasured its right of use assets and operating lease liabilities using an updated incremental borrowing rate. The change in right of use assets and operating lease liabilities related to this lease modification amounted to $380,823 for the three months and six months ended June 30, 2025.

---

| | | |
|:---|:---|:---|
| | **Six Months Ended (Unaudited)** | **Six Months Ended (Unaudited)** |
| <br>**Lease cash flow information:** | **June 30, 2025** | **June 30, 2024** |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Operating cash flows from operating leases | $256620 | $215173 |
|  | $256620 | $215173 |

---

SCHEDULE OF LEASE RELATED ASSETS AND LIABILITIES

---

| | | |
|:---|:---|:---|
| **Summary of lease-related assets and liabilities:** | **June 30, 2025<br> (Unaudited)** | **December 31, 2024<br> (Audited)** |
| Operating lease right-of-use assets | $2729160 | $1761706 |
| Accumulated amortization | (601514) | (878677) |
| Net operating ROU assets | $2127646 | $883029 |
| Current operating liabilities | $(329278) | $(279176) |
| Noncurrent operating lease liabilities | (1828955) | (628274) |
| &nbsp;&nbsp;&nbsp;Total operating lease liabilities | $(2158233) | $(907450) |

---

SCHEDULE OF MATURITY LEASE PAYMENTS FOR OPERATING LEASES

---

| | |
|:---|:---|
| <br>**Maturity of lease liabilities** | **June 30, 2025 (Unaudited)** |
| 2026 | $405918 |
| 2027 | 400523 |
| 2028 | 543993 |
| 2029 | 551231 |
| 2030 | 359500 |
| Thereafter | 836398 |
| Total future undiscounted lease payments | 3097563 |
| Less: interest | (939330) |
| Present value of lease liabilities | $2158233 |

---

**CALLAN JMB INC.**

**(Formerly known as Coldchain Technology Services, LLC)**

**NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**NOTE 10 - COMMITMENTS AND CONTINGENCIES (Continued)**

 ****

***Legal Proceedings***

The Company may be subject to legal proceedings and claims arising from contracts or other matters from time to time in the ordinary course of business.

During May 2024, the Company was sent a demand letter alleging that the Company breached the terms of a Customer Service Agreement with one of its vendors in a prior year. The vendor alleges that the Company improperly terminated the agreement without proper notice and therefore owes it $507,573. The Company responded to the vendor's demand letter and asserts that it only owes the vendor the sum of $85,000 which was recorded as part of its accounts payable as of December 31, 2023. During February 2025, the parties agreed to settle the matter for $240,800. Accordingly, the Company increased its accrued expenses by $155,800 to reflect the settled amount as of December 31, 2024, and the Company paid the settlement on February 26, 2025.

Management is not aware of any other pending or threatened litigation where the ultimate disposition or resolution could have a material adverse effect on its financial position, results of operations or liquidity.

**NOTE 11 – SUBSEQUENT EVENTS**

The Company has evaluated subsequent events that occurred after June 30, 2025, through August 14, 2025.

On July 24, 2025, CJMB, entered into a Purchase Agreement with a certain investor, whereby CJMB has the right, but not the obligation, to sell to the Investor, up to an aggregate of $25.0 million of shares of CJMB's common stock, par value $0.001 per share, subject to the terms and conditions set forth therein.

The Purchase Agreement has a term ending on the earlier of (i) the first day of the month following the 18-month anniversary of the Commencement Date or (ii) the date the Investor has purchased the shares equal to the agreed investment amount. Upon effectiveness of the related registration statement, the Company will issue 15,000 shares of Common Stock to the Investor as Commitment Shares. During the term, CJMB may, at its discretion, deliver Regular Purchase Notices for $500,000 to $2,000,000 per notice. Each Regular Purchase is priced at 95% of the lowest daily VWAP during the applicable measurement period (or 80% if the Company's stock is not trading on the Nasdaq Capital Market). In connection with each Regular Purchase, CMB will provide an estimate of the number of the shares deliverable, based on 90% of the prior day's closing price.

There have been no other events or transactions during this time which would have a material effect on these consolidated financial statements.

**PART II**

**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*The following discussion and analysis is intended as a review of significant factors affecting our financial condition and results of operations for the periods indicated. The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the accompanying notes thereto included elsewhere in this Quarterly Report on Form 10-Q. Unless the context requires otherwise, references in this Quarterly Report on Form 10-Q to "we," "us," and "our" refer to Callan JMB Inc.*

**Forward-Looking Statements**

**Overview**

Callan JMB is a vertically integrated logistics and fulfillment company which provides thermal management logistics solutions to the life sciences industry through a combination of proprietary packaging, information technology and specialized cold chain logistics knowhow. We provide a system that utilizes advanced predictive technology to revolutionize the supply chain by guaranteeing the safety, effectiveness, and potency of every product handled to ensure product integrity, and to provide immediate response in time-sensitive industries while ensuring environmental responsibility.

**Strategy**

Our strategy involves leveraging our core competitive strengths to develop and maintain ongoing relationships with a diversified group of customers while continuing to grow our service lines, ensuring that we can meet our customers' changing needs. We strive to be recognized as the premier provider of logistics and fulfillment of a broad range of value-added services based upon the breadth of those services, quality, responsiveness, customer service, information technologies, safety, and cost effectiveness.

We view our solutions as disruptive to the "older technologies" of dry ice and liquid nitrogen, in that our solutions are comprehensive and combine our competencies in configurations that are customized to our client's requirements. We provide comprehensive, reliable, economic alternatives to all existing logistics solutions and services utilized for frozen shipping in the life sciences industry (e.g., personalized medicine, cell therapies, stem cells, cell lines, vaccines, diagnostic materials, semen, eggs, embryos, cord blood, organs, bio-pharmaceuticals, infectious substances, and other commodities that require continuous exposure to cryogenic or frozen temperatures). As part of our services, we provide the ability to monitor, record and archive crucial information for each shipment that can be used for scientific and regulatory purposes.

***Seasonality***

Based on our industry and our historic trends, we expect our operations to vary seasonally. Typically, revenue will be highest in the third and fourth calendar quarters and lowest in the first and second calendar quarters. These seasonal variations result in fluctuations in waste volumes due to weather conditions and general economic activity. We also expect that our operating expenses may be higher during the winter months due to periodic adverse weather conditions that can slow the collection of waste, resulting in higher labor and operational costs.

**Results of Operations**

**Three and Six Months Ended June 30, 2025, Compared to the Three and Six Months Ended June 30, 2024**

The following table provides certain selected financial information for the periods presented:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **(Unaudited)** | **(Unaudited)** | | |
|  | **Three months ended June 30,** | **Three months ended June 30,** | | |
|  | **2025** | **2024** |<br>**Change** |<br>**Change %** |
| Revenue | $1666309 | $1985768 | $(319459) | -16% |
| Cost of Revenue | 1022439 | 1023552 | (1113) | 0% |
| Gross Profit | $643870 | $962216 | $(318346) | -33% |
| Selling, General and administrative expenses | 2046537 | 1095639 | 950898 | 87% |
| Loss from operations | $(1402667) | $(133423) | $(1269244) | 951% |
| Other income (expense) | 2042 | 947 | 1095 | 116% |
| Loss before income taxes | $(1400625) | $(132476) | $(1268149) | 957% |
| Provision for income taxes | (3102) | (20000) | 16898 | -84% |
| Net loss | $(1397523) | $(112476) | $(1285047) | 1143% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **(Unaudited)** | **(Unaudited)** | | |
|  | **Six months ended June 30,** | **Six months ended June 30,** | | |
|  | **2025** | **2024** |<br>**Change** |<br>**Change %** |
| Revenue | $3115687 | $3776289 | $(660602) | -17% |
| Cost of Revenue | 1858724 | 2096490 | (237766) | -11% |
| Gross Profit | $1256963 | $1679799 | $(422836) | -25% |
| Selling, General and administrative expenses | 3901878 | 1900681 | 2001197 | 105% |
| Loss from operations | $(2644915) | $(220882) | $(2424033) | 1097% |
| Other income (expense) | 4188 | 1273 | 2915 | 229% |
| Loss before income taxes | $(2640727) | $(219609) | $(2421118) | 1102% |
| Provision for income taxes | 1259 | (26000) | 27259 | -105% |
| Net loss | $(2641986) | $(193609) | $(2448377) | 1264% |

---

 ****

***Revenue***

Revenue for the three and six months ended June 30, 2025, was $1,666,309 and $3,115,687 respectively as compared to $1,985,768 and $3,776,289 for the three and six months ended June 30, 2024, a decrease of $(319,459) and $(660,602), respectively. This decrease was due to the decrease in demand for our emergency preparedness services by certain states and local governments.

*Cost of revenue*

Cost of revenue for the three and six months ended June 30, 2025, was $1,022,439 and $1,858,724 respectively as compared to $1,023,552 and $2,096,490 for the three and six months ended June 30, 2024, respectively. The decrease in the comparative three month period is due to a $119,990 increase in storage fees offset by a $120,120 decrease in direct labor. The decrease in the comparative six month period is due to a $357,136 decrease in fees for service, a $99,337 decrease in labels, and a $48,930 decrease in freight forwarding offset by a $237,223 increase in storage fees.

***Operating Expenses***

*Selling, General and Administrative Expenses*

Our selling, general and administrative costs include personnel costs, consulting and professional fees, and other overhead expenses. Selling, general and administrative expenses for the three and six months ended June 30, 2025, were $2,046,537 and $3,901,878 respectively compared to $1,095,639 and $1,900,681 respectively for the three and six months ended June 30, 2024, an increase of $950,898 and $2,001,197 respectively. The Company's consulting and professional fees increased by $111,584 and $420,007 for the three and six months ended June 30, 2025 respectively, compared to the same period in 2024 as a result of hiring professionals to support our capital raising process for our initial public offering. The Company's information technology support increased by $5,726 and $11,305 for the three and six months ended June 30, 2025, compared to the same period in 2024 as the result of the purchase of additional equipment and hosting software. The Company's marketing and advertising increased by $164,013 and $357,764 for the three and six months ended respectively as on June 30, 2025, compared to the same period in 2024 as a result of hiring a marketing firm that specializes in pharma-based businesses, and the hiring an investor relations firm for our IPO.

 ****

***Other income (expense)***

Other income (expense) for the three and six months ended June 30, 2025, was $2,042 and $4,188 respectively and for the three and six months ended June 30, 2024, it was $947 and $1,273 respectively, resulting in observed changes of $1,095 and $2,915 respectively. The increase for each period is a result of a decrease in interest expense.

**Liquidity and Capital Resources**

On July 24, 2025, CJMB, entered into a Purchase Agreement with a certain investor, whereby CJMB has the right, but not the obligation, to sell to the Investor, up to an aggregate of $25 million of shares of CJMB's common stock, par value $0.001 per share, subject to the terms and conditions set forth therein.

The Purchase Agreement has a term ending on the earlier of (i) the first day of the month following the 18-month anniversary of the Commencement Date or (ii) the date the Investor has purchased the shares equal to the agreed investment amount. Upon effectiveness of the related registration statement, the Company will issue 15,000 shares of Common Stock to the Investor as Commitment Shares. During the term, CJMB may, at its discretion, deliver Regular Purchase Notices for $500,000 to $2,000,000 per notice. Each Regular Purchase is priced at 95% of the lowest daily VWAP during the applicable measurement period (or 80% if the Company's stock is not trading on the Nasdaq Capital Market). In connection with each Regular Purchase, CMB will provide an estimate of the number of the shares deliverable, based on 90% of the prior day's closing price.

Our principal liquidity requirements are for working capital to fund our operations and growth. To date, we have funded our liquidity requirements primarily through cash on hand, and cash flows from operations. As of June 30, 2025 and 2024, we had $4,224,151 and $1,847,721 of cash and cash equivalents, respectively.

---

| | | | |
|:---|:---|:---|:---|
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
|  | **For Six Months Ended** | **For Six Months Ended** | **For Six Months Ended** |
|  | **June 30,** | **June 30,** | **June 30,** |
|  | **2025** | **2024** | **Change** |
| Cash provided by (used in) operating activities | $(2124970) | $275524 | $(2400494) |
| Cash used in investing activities | (447506) | (45874) | (401632) |
| Cash provided by (used in) financing activities | 4698682 | (3537549) | 8236231 |
| Increase (decrease) in cash and cash equivalents | $2126206 | $(3307899) | $5434105 |

---

 

*Cash provided by (used in) operating activities*

For the six months ended June 30, 2025, cash used in operating activities was $(2,124,970) compared to cash provided by operating activities of $275,524 during the six months ended June 30, 2024, a decrease of $(2,400,494). This decrease was primarily due to a decrease in net loss of $(2,641,986), a decrease in inventory of $(39,144), a decrease in other current assets of $(271,834), a decrease in deferred revenue of $(92,079), and offset by an increase in stock based compensation of $749,927.

*Cash provided by (used in) investing activities*

For the six months ended June 30, 2025, cash used in investing activities was $(447,506) compared to $(45,874) for the six months ended June 30, 2024, a decrease of $(401,632). The decrease is a result of leasehold improvements made to the new corporate office during 2025.

 

*Cash provided by (used in) financing activities*

During the six months ended June 30, 2025, cash provided by (used in) financing activities was $4,698,682 compared to ($3,537,549) during the six months ended June 30, 2024, an increase of $8,236,231. Our financing activities for the six months ended June 30, 2025 compared to June 30, 2024 included a decrease in related party loans of $35,742, an decrease in deferred offering costs of $65,000, and an increase in partners distributions of $3,382,254 and an increase in proceeds from IPO and overallotment, net of $4,680,013.

**Off-Balance Sheet Arrangements**

We have no off-balance sheet financing arrangements.

**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

Under SEC rules and regulations, because we are considered to be a "smaller reporting company," we are not required to provide the information required by this item in this report.

**ITEM 4. CONTROLS AND PROCEDURES**

*<u>Evaluation of Disclosure Controls and Procedures</u>*

Our Chief Executive Officer and Chief Financial Officer conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "**Exchange Act**"), as of June 30, 2025, to ensure that information required to be disclosed by us in the reports filed or submitted by us under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the SEC, including to ensure that information required to be disclosed by us in the reports filed or submitted by us under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that as of June 30, 2025, our disclosure controls and procedures were not effective at the reasonable assurance level in that:

● We do not have written documentation for some of our internal control policies and procedures. Written documentation of key internal controls over financial reporting is a requirement of Section 404 of the Sarbanes-Oxley Act. Management evaluated the impact of our failure to have written documentation for some of our internal controls and procedures on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted does not represent a material weakness.

● We do not have complete segregation of duties within accounting functions, which is a basic internal control. Due to our size and nature, segregation of all conflicting duties may not always be possible and may not be economically feasible. However, to the extent possible, the initiation of transactions, the custody of assets and the recording of transactions should be performed by separate individuals. Management evaluated the impact of our failure to have segregation of duties on our assessment of our disclosure controls and procedures and procedures and has concluded that the control deficiency that resulted does not represent a material weakness.

Our Chief Executive Officer and Chief Financial Officer do not expect that our disclosure controls or internal controls will prevent all errors and all fraud. Although our disclosure controls and procedures were designed to provide reasonable assurance of achieving their objectives and our Chief Executive Officer and Chief Financial Officer have determined that our disclosure controls and procedures are effective at doing so, a control system, no matter how well conceived and operated, can provide only reasonable, not absolute assurance that the objectives of the system are met. Further, the design of any control system is subject to resource constraints and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple errors or mistakes. Additionally, controls can be circumvented if there exists in an individual a desire to do so. There can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

(b) **Changes in Internal Controls Over Financial Reporting** 

There were no changes in our internal controls over financial reporting that occurred during the last fiscal quarter covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

**PART II — OTHER INFORMATION**

**ITEM 1. LEGAL PROCEEDINGS**

There currently is no material pending legal proceeding to which we are a party or to which any of our property is subject, and our management is not aware of any contemplated proceeding by any governmental authority against us. From time to time, we may become involved in legal proceedings or subject to claims incident to the ordinary course of business. Regardless of outcome, such proceedings or claims can have an adverse impact on us because of defense and settlement costs, diversion of resources, negative publicity, reputational harm, and other factors and there can be no assurances that favorable outcomes will be obtained.

**ITEM 1A. RISK FACTORS**

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and, as such, are not required to provide the information under this Item.

**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

***Recent Sale of Unregistered Equity Securities***

During the quarter ended June 30, 2025 no unregistered sales of equity securities occurred.

**Item 3. Defaults Upon Senior Securities.**

None.

**Item 4. Mine Safety Disclosures.**

Not applicable.

**Item 5. Other Information.**

None.

**ITEM 6. EXHIBITS**

---

| | |
|:---|:---|
| **Exhibit**<br>**Number** | <br>**Description** |
| 3.1 | [Callan JMB Inc. Articles of Incorporation (incorporated by reference to Exhibit 3.1 to the Registrant's Registration Statement on Form S-1,as amended (File No. 333-282879), filed with the SEC on January 8, 2025)](https://www.sec.gov/Archives/edgar/data/2032545/000149315224050466/ex3-1.htm) |
| 3.2 | [Bylaws, adopted on February 2, 2024 (incorporated by reference to Exhibit 3.2 to the Registrant's Registration Statement on Form S-1, as amended (File No. 333-282879), filed with the SEC on January 8, 2025)](https://www.sec.gov/Archives/edgar/data/2032545/000149315224050466/ex3-2.htm) |
| 10.1 | [Form of Equity Purchase Agreement, dated July 24, 2025, by and between Callan JMB Inc. and the Investor (incorporated by reference to Exhibit 10.1 of the Registrant's Current Report on Form 8-K (File No. 001-42506) filed with the SEC on July 25, 2025)](https://www.sec.gov/Archives/edgar/data/2032545/000164117225021041/ex10-1.htm) |
| 10.2 | [Form of Registration Rights Agreement, dated July 24, 2025, by and between Callan JMB Inc. and the Investor (incorporated by reference to Exhibit 10.2 of the Registrant's Current Report on Form 8-K (File No. 001-42506) filed with the SEC on July 25, 2025)](https://www.sec.gov/Archives/edgar/data/2032545/000164117225021041/ex10-2.htm) |
| 10.3\* | [Standard Sublease Agreement, dated October 1, 2024, by and between lessor and Callan JMB, Inc.](ex10-3.htm) |
| 10.4\* | [Standard Lease Agreement, dated April 1, 2025, by and between Outlaw Run Ranch, LLC. and Coldchain Technology Services, LLC](ex10-4.htm) |
| 31.1\* | [Certification of Co-Chief Executive Officers (Principal Executive Officer) Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](ex31-1.htm) |
| 31.2\* | [Certification of Chief Financial Officer (Principal Financial and Accounting Officer) Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](ex31-2.htm) |
| 32.1\*\* | [Certification of Co-Chief Executive Officers (Principal Executive Officer) Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex32-1.htm) |
| 32.2\*\* | [Certification of Chief Financial Officer (Principal Financial and Accounting Officer) Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex32-2.htm) |
| 101.INS | Inline XBRL Instance Document |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |

---

\* Filed herewith. <br> \*\* Furnished herewith.

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | |
|:---|:---|
| **CALLAN JMB INC.** | **CALLAN JMB INC.** |
| By: | */s/ Wayne Williams* |
|  | Wayne Williams |
|  | Chief Executive Officer, President, and Chairman of the Board |

---

---

| | | |
|:---|:---|:---|
| **SIGNATURE** | **TITLE** | **DATE** |
| */s/ Wayne Williams* | Chief Executive Officer, President | August 14, 2025 |
| Wayne Williams | (Principal Executive Officer) and Chairman of the Board |  |
| */s/ Shannon Badger* | Interim Chief Financial Officer | August 14, 2025 |
| Shannon Badger. | (Principal Financial and Accounting Officer) |  |

---

## Exhibit 10.3

**Exhibit 10.3**

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## Exhibit 10.4

**Exhibit 10.4**

![](ex10-4_001.jpg)

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## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION PURSUANT TO RULES 13A-14(A) AND 15D-14(A) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Wayne Williams, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I
 have reviewed this Quarterly Report on Form 10-Q for the period ended June 30, 2025 of Callan JMB Inc.;

2. Based
 on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
 to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to
 the period covered by this report;

3. Based
 on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
 respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in
 this report;

4. The
 registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures
 (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined
 in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed
 such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
 to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others
 within those entities, particularly during the period in which this report is being prepared;

(b) Designed
 such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
 supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
 for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated
 the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about
 the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;
 and

(d) Disclosed
 in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's
 most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected,
 or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The
 registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over
 financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or
 persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All
 significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are
 reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information;
 and

(b) Any
 fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's
 internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: August 14, 2025 | By | */s/ Wayne Williams* |
|  | Name: | Wayne Williams |
|  | Title: | Chief Executive Officer |
|  |  | (Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION PURSUANT TO RULES 13A-14(A) AND 15D-14(A) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Shannon Badger, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I
 have reviewed this Quarterly Report on Form 10-Q for the period ended June 30, 2025 of Callan JMB Inc.;

2. Based
 on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
 to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to
 the period covered by this report;

3. Based
 on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
 respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in
 this report;

4. The
 registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures
 (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined
 in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed
 such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
 to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others
 within those entities, particularly during the period in which this report is being prepared;

(b) Designed
 such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
 supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
 for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated
 the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about
 the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;
 and

(d) Disclosed
 in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's
 most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected,
 or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The
 registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over
 financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or
 persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All
 significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are
 reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information;
 and

(b) Any
 fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's
 internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: August 14, 2025 | By: | */s/ Shannon Badger* |
|  | Name: | Shannon Badger |
|  | Title: | Chief Financial Officer (Interim) |
|  |  | (Principal Financial Officer) |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report on Form 10-Q of Callan JMB Inc. (the "Company") for the period ending June 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1) The
 Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The
 information contained in the Report fairly presents, in all material respects, the financial condition and results of operations
 of the Company.

---

| | | |
|:---|:---|:---|
| Date: August 14, 2025 | By: | */s/ Wayne Williams* |
|  | Name: | Wayne Williams |
|  | Title: | Chief Executive Officer |
|  |  | (Principal Executive Officer) |

---

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report on Form 10-Q of Callan JMB Inc. (the "Company") for the period ending June 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1) The
 Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The
 information contained in the Report fairly presents, in all material respects, the financial condition and results of operations
 of the Company.

---

| | | |
|:---|:---|:---|
| Date: August 14, 2025 | By: | */s/ Shannon Badger* |
|  | Name: | Shannon Badger |
|  | Title: | Chief Financial Officer (Interim) |
|  |  | (Principal Financial Officer) |

---