# EDGAR Filing Document

**Accession Number:** 0002026353
**File Stem:** 0001493152-26-023858
**Filing Date:** 2026-5
**Character Count:** 175686
**Document Hash:** 7ce7b62639679d18d89667aa75347f6f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-26-023858.hdr.sgml**: 20260515

**ACCESSION NUMBER**: 0001493152-26-023858

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 71

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260515

**DATE AS OF CHANGE**: 20260515

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Aether Holdings, Inc.
- **CENTRAL INDEX KEY:** 0002026353
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 352818803
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42595
- **FILM NUMBER:** 26988573

**BUSINESS ADDRESS:**
- **STREET 1:** 1441 BROADWAY,
- **STREET 2:** 30TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10018
- **BUSINESS PHONE:** (347) 363-0886

**MAIL ADDRESS:**
- **STREET 1:** 1441 BROADWAY,
- **STREET 2:** 30TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10018

?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 March 31, 2026

OR

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

For the transition period from ________ to _________

Commission file number: **001-42595**

**Aether Holdings, Inc.**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **35-2818803** |
| (State or other jurisdiction of<br> incorporation or organization) | (I.R.S. Employer<br> Identification No.) |

---

---

| | |
|:---|:---|
| **110 Charlton Street, Unit RET B**<br> **New York, New York** | **10014** |
| (Address of principal executive offices) | (Zip Code) |

---

**(347) 726-8898**

(Registrant's telephone number, including area code)

**Not Applicable** (Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of Each Class:** | **Trading Symbol(s)** | **Name of Each Exchange on Which Registered** |
| Common Stock, par value $0.001 per share | ATHR | The Nasdaq Stock Market LLC |

---

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 the definitions 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 the 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 ☒

As of May 14th, 2026, there were 12,144,730 shares of common stock outstanding.

**AETHER HOLDINGS, INC.**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
|  | [**PART I - FINANCIAL INFORMATION**](#zzz_001) |  |
| [Cautionary Note Regarding Forward-Looking Statements](#sq_001) | [Cautionary Note Regarding Forward-Looking Statements](#sq_001) | -ii- |
| Item 1. | [Financial Statements](#sq_002) | F-1 |
|  | [Condensed Consolidated Balance Sheets as of March 31, 2026 (unaudited) and September 30, 2025](#sq_003) | F-1 |
|  | [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months and six months ended March 31, 2026 and 2025](#sq_004) | F-2 |
|  | [Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity for the three months and six months ended March 31, 2026 and 2025](#sq_005) | F-3 |
|  | [Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months Ended March 31, 2026 and 2025](#sq_006) | F-4 |
|  | [Notes to Unaudited Condensed Consolidated Financial Statements](#sq_007) | F-5 |
| Item 2. | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#Y-001) | 1 |
| Item 3. | [Quantitative and Qualitative Disclosures About Market Risk](#Y-002) | 13 |
| Item 4. | [Controls and Procedures](#Y-003) | 13 |
|  | **[PART II - OTHER INFORMATION](#Y-004)** |  |
| Item 1. | [Legal Proceedings](#Y-005) | 14 |
| Item 1A. | [Risk Factors](#Y-006) | 14 |
| Item 2. | [Unregistered Sales of Equity Securities and Use of Proceeds](#Y-007) | 14 |
| Item 3. | [Defaults upon Senior Securities](#Y-008) | 14 |
| Item 4. | [Mine and Safety Disclosure](#Y-009) | 14 |
| Item 5. | [Other Information](#Y-010) | 14 |
| Item 6. | [Exhibits](#Y-011) | 15 |

---

-i-

**CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS**

This Quarterly Report on Form 10-Q (the "Report") contains "forward-looking statements" (as defined in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act")) that reflect our current expectation and views of future events. The forward-looking statements are contained principally in the section of this Report entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations." Readers are cautioned that significant known and unknown risks, uncertainties and other important factors (including those over which we may have no control and others listed in this Report and in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, filed with the SEC on December 17, 2025 (the "Annual Report") under the heading "Risk Factors") may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements.

You can identify some of these forward looking statements by words such as "may," "will," "aim," "expect," "anticipate," "intend," "plan," "believe," "seek," "estimate," "is/are likely to," "potential," "continue," and other similar expressions or variations. We have based these forward-looking statements largely on our current expectations and projections about future events that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual performance or results to differ materially and adversely from those expressed in or suggested by the forward-looking statements include:

● our
 inability to meet our core objectives, namely, to expand the number and content of our online newsletters, create advanced investor
 tools for our users and generate revenues as a result of these efforts;

● ineffectively
 competing in our industry;

● the
 impact of governmental laws and regulation;

● failure
 to maintain and protect our reputation for trustworthiness and independence;

● our
 ability to adequately market our products and services, and to develop additional products and product offerings;

● our
 ability to manage growth effectively, including through acquisitions;

● our
 ability to continue to evolve and adapt our technology, including further adoption of artificial intelligence and machine learning
 technologies;

● our
 ability to attract new users of our products and to persuade existing users of our products to convert their free subscriptions to
 paid subscriptions, renew their subscription agreements, and purchase higher subscription tiers from us;

● our
 ability to successfully expand the coverage of our products to include foreign markets and alternative asset classes;

● assumptions
 related to the size of the market for our publications and analysis tools;

● our
 opportunistic use of cash resources on hand, which would impact our capital needs;

● our
 ability to expand our revenue streams beyond a subscriber model;

● difficulties
 with certain data providers, technology providers, and third-party services we rely on or will rely on;

-ii-

● failure
 to establish and maintain our corporate culture as we grow and encounter challenges regarding consumer recognition of our brand;

● our
 inability to attract, develop, and retain capable management, analysts, and other key personnel;

● labor
 shortages, unionization activities, labor disputes or increased labor costs;

● our
 ability to realize the anticipated benefits of our bitcoin treasury strategy, which we have yet to implement;

● our
 inability to address and mitigate damage to our reputation and brand arising from negative "short reports" and adverse
 litigation or other proceedings against us or our management;

● inadequately
 protecting our intellectual property or breaches of security of confidential consumer information; and

● other
 factors detailed under the section entitled "Risk Factors" in our Annual Report.

The foregoing does not represent an exhaustive list of matters that may be covered by the forward-looking statements contained herein or risk factors that we are faced with. Forward-looking statements necessarily involve significant risks and uncertainties, and our actual results could differ materially from those anticipated in the forward-looking statements due to a number of factors, including those set forth in our Annual Report under the heading "Risk Factors" and elsewhere in the Annual Report. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained above. Prior to investing in our common stock, you should read this Report and our other SEC filings completely and with the understanding that our actual future results may be materially different from what we currently expect. We qualify all of our forward-looking statements by these cautionary statements.

We file reports with the SEC. The SEC maintains a website (https://www.sec.gov/search-filings) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, including us.

The forward-looking statements made in this Report related only to events or information as of the date of this Report. We undertake no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this Report, except as required by law. Readers are urged to carefully review and consider the various disclosures made throughout the entirety of this Report, which are designed to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and prospects.

**DEFINED TERMS RELATED TO THE COMPANY**

Unless specifically set forth to the contrary, "Company," "we," "us," "our," "our company," "Aether," "the Company," "our business" and similar terms refer to Aether Holdings, Inc. and its subsidiaries, unless the context indicates otherwise.

-iii-

**PART I - FINANCIAL INFORMATION**

**Item 1 - Financial Statements**

**AETHER HOLDINGS, INC.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **September 30, 2025** |
|  | **(Unaudited)** | |
| **ASSETS** |  |  |
| **Current Assets** |  |  |
| Cash | $807957 | $4418169 |
| Prepaid expenses | 262313 | 365073 |
| Accounts receivable and other receivables | 12931 | - |
| **Total current assets** | **1083201** | **4783242** |
| Intangible assets, net | 535763 | 40850 |
| Internally developed software WIP | 97205 | 100000 |
| Property acquisition deposit |  | 108000 |
| Property and equipment, net | 1265471 | 4069 |
| **Total Assets** | $**2981640** | $**5036161** |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| **Current Liabilities** |  |  |
| Accounts payables | $176048 | $67430 |
| Accrued liabilities | 74602 | 55827 |
| Due to related parties | 5172 | 37193 |
| Contract liabilities | 384936 | 358628 |
| **Total current liabilities** | **640758** | **519078** |
| **Total Liabilities** | **640758** | **519078** |
| **Stockholders' Equity** |  |  |
| Common stock, $0.001 par value, 50,000,000 and 50,000,000 shares authorized, 12,144,730 and 12,101,273 shares issued and outstanding at March 31, 2026 and September 30, 2025, respectively\* | 12144 | 12101 |
| Additional paid-in capital | 9853146 | 9703189 |
| Accumulated deficit | (7524408) | (5198207) |
| **Total shareholders' equity** | **2340882** | **4517083** |
| **Total liabilities and shareholders' equity** | $**2981640** | $**5036161** |

---

\* Shares and per share data are presented on a retroactive basis to reflect a 1.2-for-1 reverse stock split of the common stock which occurred on January 15, 2025. See Note 6(B).

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

**AETHER HOLDINGS, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND** 

**COMPREHENSIVE LOSS**

**FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2026 AND 2025**

**(UNAUDITED)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months ended** | **For the three months ended** | **For the six months ended** | **For the six months ended** |
|  | **March 31, 2026** | **March 31, 2025** | **March 31, 2026** | **March 31, 2025** |
| **Revenue** | $336041 | $341906 | $674845 | $696549 |
| Cost of Sales (excluding depreciation and amortization) | 64784 | 109616 | 131204 | 217174 |
| **Gross Profit** | **271257** | **232290** | **543641** | **479375** |
| **Operating Expenses** |  |  |  |  |
| Sales and marketing expenses | 188986 | 56622 | 385558 | 78667 |
| General and administrative expenses | 1056512 | 565849 | 2403956 | 1113088 |
| Research and development expenses | 73172 | - | 131119 | - |
| **Total operating expenses** | **1318670** | **622471** | **2920633** | **1191755** |
| **Other Income** |  |  |  |  |
| Interest income | 6449 |  | 31754 |  |
| Other income, net | 12000 | - | 19037 | - |
| **Total Other Income** | **18449** | **-** | **50791** | **-** |
| **Loss before provision for income taxes** | (1028964) | (390181) | (2326201) | (712380) |
| **Income tax benefit (expense), net** | - | - | - | - |
| **Net loss** | **(1028964)** | **(390181)** | **(2326201)** | **(712380)** |
| **Comprehensive loss** | $**(1028964)** | $**(390181)** | $**(2326201)** | $**(712380)** |
| Net loss per share – Basic and Diluted\* | $(0.08) | $(0.04) | $(0.19) | $(0.07) |
| Weighted average number of shares outstanding – Basic and Diluted \* | 12144730 | 10031273 | 12131202 | 10031273 |

---

\* Shares and per share data are presented on a retroactive basis to reflect a 1.2-for-1 reverse stock split of the common stock which occurred on January 15, 2025. See Note 6(B).

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

**AETHER HOLDINGS, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY**

**(UNAUDITED)**

**For the Three and Six Months Ended March 31, 2026**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **\*Common Shares** | **\*Common Shares** | **Additional Paid In Capital** | **Accumulated deficit** | **Total equity** |
|  | **Number** | **Amount** | **Amount** | **Amount** | **Amount** |
| **Balance – October 1, 2025** | **12101273** | **12101** | **9703189** | **(5198207)** | **4517083** |
| Net loss for the period |  |  |  | (1297237) | **(1297237)** |
| Cashless exercise of warrants | 18332 | 18 | (18) |  | **-** |
| Stock issued for services | 25125 | 25 | 149975 | - | **150000** |
| **Balance – December 31, 2025** | **12144730** | **12144** | **9853146** | **(6495444)** | **3369846** |
| Net loss for the period | - | - | - | (1028964) | **(1028964)** |
| **Balance – March 31, 2026** | **12144730** | **12144** | **9853146** | **(7524408)** | **2340882** |

---

**For the Three and Six Months Ended March 31, 2025**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **\*Common Shares** | **\*Common Shares** | **Additional Paid In Capital** | **Accumulated deficit** | **Total equity** |
|  | **Number** | **Amount** | **Amount** | **Amount** | **Amount** |
| **Balance – October 1, 2024** | **10031273** | $**10031** | $**2162945** | $**(2056896)** | $**116080** |
| Net loss for the period | - | - | - | (322199) | **(322199)** |
| **Balance – December 31, 2024** | **10031273** | $**10031** | $**2162945** | $**(2379095)** | $**(206119)** |
| Net loss for the period | - | - | - | (390181) | **(390181)** |
| **Balance – March 31, 2025** | **10031273** | $**10031** | $**2162945** | $**(2769276)** | $**(596300)** |

---

\* Shares and per share data are presented on a retroactive basis to reflect a 1.2-for-1 reverse stock split of the common stock which occurred on January 15, 2025. See Note 6(B).

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

**AETHER HOLDINGS, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR SIX MONTHS ENDED**

**(UNAUDITED)**

---

| | | |
|:---|:---|:---|
|  | **For the six months ended** | **For the six months ended** |
|  | **March 31, 2026** | **March 31, 2025** |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |
| Net loss | $(2326201) | $(712380) |
| Adjustments: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 37450 | 1047 |
| &nbsp;&nbsp;&nbsp;Non cash service expense for stock issuances | 78297 |  |
| &nbsp;&nbsp;&nbsp;Interest Expense |  | 516 |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 174463 | 8862 |
| &nbsp;&nbsp;&nbsp;Payables and accrued liabilities | 127393 | 120241 |
| &nbsp;&nbsp;&nbsp;Tax payable |  | 5298 |
| &nbsp;&nbsp;&nbsp;Amounts due to related parties | (32021) | 199645 |
| &nbsp;&nbsp;&nbsp;Contract liabilities | 26308 | 15000 |
| &nbsp;&nbsp;&nbsp;Accounts receivable and other receivables | (12931) | - |
| **Net cash used in operating activities** | **(1927242)** | **(361771)** |
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |
| Purchase of intangible assets | (417167) |  |
| Internally developed software WIP | (97205) |  |
| Purchase of property and equipment | (1168598) | - |
| **Net cash used in investing activities** | **(1682970)** | **-** |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |
| Advances from short-term loan |  | 20000 |
| Deferred offering costs | - | (22789) |
| **Net cash used in financing activities** | **-** | **(2789)** |
| **Net decrease in cash** | **(3610212)** | **(364560)** |
| **Cash, beginning of the period** | **4418169** | **557823** |
| **Cash, end of the period** | $**807957** | $**193263** |
| **Supplemental Disclosures of Cash Flow Information** |  |  |
| Cash paid for interest | $- | $- |
| Cash paid for income taxes | $- | $- |
| **Supplemental Schedule of Non-Cash Financing Activities** |  |  |
| Common stock issued for services | 150000 |  |
| Cashless exercise of warrants | 18 |  |

---

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

**AETHER HOLDINGS, INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(UNAUDITED)**

**NOTE 1 — DESCRIPTION OF BUSINESS AND ORGANIZATION**

Aether Holdings, Inc. ("we," "us," "our," the "Company," or "Aether") was incorporated pursuant to the Delaware General Corporation Law ("DGCL") on August 15, 2023. The Company, acting through its primary operating subsidiary, Sundial Capital Research Inc. ("Sundial"), is principally engaged in providing proprietary research analytics, data, and tools for equity traders through its flagship platform, SentimenTrader.com. ("SentimenTrader").

The registration statement for the Company's initial underwritten public offering ("IPO") was declared effective on April 9, 2025. We consummated our IPO on April 11, 2025, with the issuance of 1,800,000 shares of the Company's common stock, par value $0.001 per share (the "Common Stock") at a public offering price of $4.30 per share, generating gross proceeds of $7,740,000. In connection with the IPO, we granted the underwriters an over-allotment option to purchase up to 270,000 additional shares of Common Stock at the same public offering price (the "IPO Over-Allotment Option"). On April 16, 2025, the IPO Over-Allotment Option was fully exercised, resulting in additional gross proceeds of $1,161,000. With the full exercise of the IPO Over-Allotment Option, the total gross proceeds from the IPO amounted to $8,901,000, before deducting underwriting discounts, commissions, and offering expenses. Additionally, as partial compensation for their services, the Company issued warrants to purchase an aggregate of 144,900 shares of Common Stock to The Benchmark Company, LLC and Axiom Capital Management, Inc., as representatives of the several underwriters of the Company's IPO.

On April 30, 2025, the Company incorporated a new subsidiary, Alpha Edge Media, Inc. ("AEM"), under the laws of the State of Delaware to support its expanding newsletter business. The newsletters published or acquired and thereafter published by AEM will target both institutional and retail investors, focusing on topics such as macroeconomic trends, market insights, and market psychology, while broadening the Company's overall coverage of securities, commodities, markets and exchanges.

On May 22, 2025, the Company incorporated a new subsidiary, Aether Grid Inc. ("Aether Grid"), under the laws of the State of Delaware to house and support the growth of its suite of financial tools.

On June 6, 2025, the Company formed a new subsidiary, Aether Labs, Inc. ("Aether Labs"), under the laws of the State of Delaware to act as the arm of the Company that focuses on innovation and research and development of its fintech ecosystem, with a focus on proprietary analytics and models driven by artificial intelligence ("AI").

On October 14, 2025, the Company formed a new wholly owned subsidiary, 537 Greenwich LLC (537 Greenwich"), under the laws of the State of Delaware. The subsidiary was established for the purpose of acquiring and holding office space in New York, which was purchased and is owned by 537 Greenwich.

On March 25, 2026, Aether Labs and OorTech Inc. ("Oort") formed Aether DataHub, LLC ("AetherHub"), a Delaware limited liability company, as a joint venture to develop and commercialize the "AetherHub Platform," a white-labeled deployment of Oort's proprietary DataHub technology, for use exclusively in the field of financial media and financial education data labeling and annotation services. AetherHub had no transactions during the three months ended March 31, 2026, and AetherHub did not have a material impact on the Company's consolidated financial position or results of operations for the period then ended.

In March 2026, the Company also entered into a Technology License and Services Agreement with Oort, pursuant to which Oort granted the Company a worldwide, royalty-free, exclusive license, to host, operate, and commercialize Oort's DataHub technology as a white-labelled platform. Oort is also obligated to provide software development, customization, maintenance, and support services necessary for the deployment and operation of the AetherHub platform. Intellectual property developed specifically for the AetherHub Platform is assigned to AetherHub, while Oort retains ownership of its underlying platform technology and general-purpose enhancements. No license fees or service fees are payable under the agreement, as Oort's equity ownership interest constitutes its sole consideration. No amounts were recognized in the accompanying condensed consolidated financial statements related to this agreement for the three and six-month period ended March 31, 2026, as the Company had not commenced operations.

The Company has also entered into an intellectual property option agreement (the "IP Option Agreement") with Oort pursuant to which it may acquire certain underlying intellectual property, as described in Note 13.

The following table sets forth information concerning the Company and its wholly-owned subsidiaries and AetherHub as of March 31, 2026:

SCHEDULE OF SUBSIDIARY

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name of Entity** | **Date of Organization** | **Place of Organization** | **Percentage of Ownership** | **Principal Activities** |
| Aether Holdings, Inc. | August 15, 2023 | Delaware | Parent Company | Holding Company |
| Sundial Capital Research Inc. | January 22, 2003 | Minnesota | 100% | Financial Research Publication |
| Alpha Edge Media, Inc. | April 30, 2025 | Delaware | 100% | Financial Newsletters |
| Aether Grid Inc. | May 22, 2025 | Delaware | 100% | Financial Technology Tools |
| Aether Labs, Inc. | June 6, 2025 | Delaware | 100% | Research and Development |
| 537 Greenwich LLC | October 14, 2025 | Delaware | 100% | Acquiring and holding office space |
| Aether Datahub LLC | March 25, 2026 | Delaware | 70% | Data labeling and annotation services |

---

**NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Basis of Presentation and Principles of Consolidation**

The accompanying unaudited condensed consolidated financial statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") regarding interim financial reporting.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all normal and recurring adjustments (which consist primarily of accruals, estimates and assumptions that impact the unaudited condensed consolidated financial statements) considered necessary to present fairly the Company's unaudited condensed consolidated balance sheet as of March 31, 2026, its unaudited condensed consolidated statements of operations and comprehensive loss, stockholders' equity for the three and six months ended March 31, 2026 and March 31, 2025 and unaudited condensed consolidated statements of cashflows for six months ended March 31, 2026 and March 31, 2025. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this report should be read in conjunction with the audited consolidated financial statements and notes thereto of Aether Holdings, Inc. for the year ended September 30, 2025 included in the Company's Annual Report on Form 10-K filed with the SEC on December 17, 2025, (the "Form 10-K"), which provides a more complete discussion of the Company's accounting policies and certain other information. The accompanying condensed consolidated balance sheet as of September 30, 2025, has been derived from the audited consolidated balance sheet as of September 30, 2025, contained in the above referenced Form 10-K.

The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany balances have been eliminated upon consolidation. Interim results are not necessarily indicative of results for a full year or any future periods.

**Prior Period Reclassifications**

Certain amounts in prior periods have been reclassified to conform with current period presentation.

**Foreign Currency**

These unaudited condensed consolidated financial statements are presented in United States dollars which are the parent and subsidiaries' functional currency. The functional currency for each entity consolidated with the Company is determined by the currency of the primary economic environment in which it operates, US dollars ("USD").

Monetary assets and liabilities denominated in foreign currencies are re-measured to USD using the exchange rates prevailing at the consolidated balance sheet dates. Non-monetary assets and liabilities denominated in foreign currencies are measured in USD using historical exchange rates. Revenues and expenses are measured using the actual exchange rates prevailing on the dates of the transactions. Gains and losses resulting from re-measurement are recorded in the Company's consolidated statement of operations and comprehensive loss as foreign exchange (loss) gain under general and administrative expenses.

**Use of Estimates and Assumptions**

The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. There were no significant estimates or assumptions that materially impacted the unaudited condensed consolidated financial statements for the three and six months ended March 31, 2026 and 2025.

**Segment Information**

The Company follows Accounting Standards Codification ("ASC") 280, "Segment Reporting" (adopted by the Financial Accounting Standards Board ("FASB")), which requires disclosures based on how management organizes the Company to make operating decisions and assess performance. The Company has determined that it operates as a single reportable segment.

The Chief Executive Officer functions as the Company's Chief Operating Decision Maker ("CODM") and is responsible for key operating decisions, resource allocation, and performance assessment. In executing these responsibilities, the CODM regularly reviews consolidated financial information, including total revenue, gross profit, key operational metrics, and cash flow, on a Company-wide basis. The CODM does not review or receive discrete financial information by business function, product category, or geographic region. Consequently, decisions about resource allocation and performance evaluation are made based solely on consolidated results. Accordingly, management has concluded that the Company has one operating segment: the online subscription service, which consists of one reporting unit based on the financial information available and which operating results are regularly reviewed by CODM. All the Company's business activities for the three and six months ended March 31, 2026 and 2025 were conducted in United States. Segment profit and loss is determined on a basis that is consistent with how the Company reports operating profit and loss in its unaudited condensed consolidated statements of operations and comprehensive loss. Because the Company operates only one segment, there are no intersegment transactions.

**Cash**

Cash consists of cash on hand, the balances with banks and the liquid investments with maturities of three months or less.

**Property and Equipment, Net**

Property and equipment are recorded at cost less accumulated depreciation and impairment losses at the following depreciation rates:

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| | |
|:---|:---|
| Computer hardware & IT | Double declining balance method – 30% |
| Office Building | Straight line method – Useful Life 25 years |

---

Equipment that is withdrawn from use or has no reasonable prospect of being recovered through use or sale, is regularly identified, and written off. The assets' residual values, depreciation methods and useful lives are reviewed, and adjusted if appropriate, at each reporting date. Subsequent expenditures relating to items of property and equipment are capitalized when it is probable that future economic benefits from the use of the assets will be increased. All other subsequent expenditures are recognized as repairs and maintenance.

The office building is depreciated on a straight-line basis over an estimated useful life of 25 years. Depreciation is charged from the date the asset is available for use.

**Intangible Assets, Net**

The Company's intangible assets consist of (i) the Company's corporate tradenames, (ii) internally developed software and (iii) intangible assets acquired in connection with the purchase transactions to date involving the following online financial newsletters: Whale Tales, Altcoin Investing, 21Bitcoin.xyz, Coinstack and Publicview.ai (collectively, the "Acquisitions"). The intangible assets acquired pursuant to the Acquisitions include domains, tradenames, subscriber lists, newsletter archives, content libraries, a sponsorship and/or advertising pipeline and associated materials, vendor and platform rights, writer relationships, billing system and set up, cloud infrastructure configurations, developed technology and non-competition agreements.

**Indefinite-lived intangible assets**

The Company's tradenames and domains (including the Company's corporate tradename and the domain name and tradenames acquired in the Acquisitions, other than the brand name associated with the acquisition of the Coinstack) are considered indefinite-lived, as they are expected to contribute to future cash flows indefinitely and the costs to maintain/renew the associated legal rights are not significant. Accordingly, tradenames and domain names are not amortized.

Indefinite-lived tradenames and domains are tested for impairment at least annually, and more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired, in accordance with ASC 350-30-35-18.

**Finite-lived intangible assets**

The remaining intangible assets acquired in the Acquisitions (including the Coinstack brand name) are finite-lived and are amortized on a straight-line basis over their estimated useful lives, which reflect the periods over which the assets are expected to contribute to future cash flows. Finite-lived intangible assets are evaluated for amortization. The Coinstack brand name is considered finite-lived based on management deliberation, expected subscriber attrition and it falling within the low to lower quartile range observed in comparable transactions.

**Amortization method and estimated useful lives of finite-lived intangible assets**

****

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| | | |
|:---|:---|:---|
| **Category** | **Amortization Method** | **Estimated useful life** |
| Brand name/Domain names /Tradenames/social media (except for Coinstack) | Not Amortized | Indefinite |
| Brand name (Coinstack) | Straight Line Method | 7 years |
| Subscriber list | Straight Line Method | 2 to 3 years |
| Content library | Straight Line Method | 1 to 3 years |
| Vendor/platform rights | Straight Line Method | 1 to 2 years |
| Writer relationship | Straight Line Method | 1 year |
| Non-competition agreement | Straight Line Method | 1 year |
| Advertiser / sponsor relationships | Straight Line Method | 1 year |
| Proprietary codebase & technical IP | Straight Line Method | 3 to 5 years |
| Cloud infrastructure configurations | Straight Line Method | 3 years |
| Internally developed software | Straight Line Method | 3 years |

---

**Offering costs**

Deferred offering costs consist of specific expenses directly attributable to the Company's IPO, including legal, accounting, printing, underwriter fees and filing fees. These costs are capitalized as incurred in accordance with the guidance under ASC 340-10-S99-1.

**Impairment of Long-lived Assets**

Long-lived assets, including property and equipment, intangible assets and property acquisition deposit are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount may not be fully recoverable or that the useful life is shorter than the Company had originally estimated. When these events occur, the Company evaluates the impairment by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Company recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. No impairment charge was recognized for the three and six months ended March 31, 2026 and 2025, respectively.

**Internally developed software and research and development ("R&D") expenses**

Intangible assets consist of internally developed capitalized software which is separately presented than other intangible assets as they are significant.

*Internal use software*

The Company capitalizes certain costs related to internal use software acquired, modified, or developed related to the Company's services in accordance with *ASC 350, Internal use software.* These capitalized costs are primarily related to salaries, IT consultants and other personnel costs. Costs incurred in the preliminary stages of development and the post implementation phase are expensed as incurred. The Company adopted agile method of software development which is generally characterized as an iterative and more dynamic process where the planning, design and coding are less distinct and performed in short sprints. The Company analyses the nature of the development and implementation activities – i.e. whether Subtopic 350-40 characterizes them as capitalizable application development stage activities – when deciding whether the costs of those activities should be capitalized or expensed as incurred. Maintenance and training costs are expensed as incurred. The amortization expense is recorded in "General and administrative expenses" on the consolidated statements of operations and comprehensive loss.

*Software developed for sale*

The costs incurred for the development of computer software to be sold, leased or otherwise marketed are capitalized in accordance with ASC *985, Costs of Software to be sold, leased or marketed,* when technological feasibility has been established. Technological feasibility generally occurs when all planning, designing, coding and testing activities are completed and is necessary to establish that the product can be produced to meet its design specifications, including functions, features, and technical performance requirements. These capitalized costs are primarily related to salaries, IT consultants and other personnel costs.

Software costs that are expensed are recorded in "Research and Development" on the condensed consolidated statements of operations and comprehensive loss. Research and development expenses represent costs directly attributable to the development of the Company's XYZ Terminal, SentimenTracker ("SentimenTracker") and other products, including data integration, Large Language Model (LLM) tools, predictive analytics, interface upgrades, and supporting systems, with spending driven by personnel, software, data, and cloud resources. R&D expenses are expensed as incurred in accordance with ASC 730.

Internally developed software comprises of software development cost-in-progress as of March 31, 2026 and September 30, 2025 amounting to $97,205 and $100,000, respectively, which will be amortized once the software development is capitalized upon completion.

**Revenue Recognition**

The Company adopted ASC Topic 606 Revenue from Contracts with Customers ("ASC 606"). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the Company applies the following steps:

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| | |
|:---|:---|
| Step 1: | Identification of the contract with a customer; |
| Step 2: | Identification of the performance obligations in the contract; |
| Step 3: | Determination of the transaction price; |

---

---

| | |
|:---|:---|
| Step 4: | Allocation of the transaction price to the performance obligations in the contract (where revenue is allocated on a relative standalone selling price basis by maximizing the use of observable inputs to determine the standalone selling price for each performance obligation); and |
| Step 5: | Recognition of revenue when, or as, the Company satisfies a performance obligation. |

---

*Revenue from online subscription services*

Revenue from online subscription services consists of subscriptions to the Company's SentimenTrader and SentimenTracker platforms. These cloud-based platforms provide customers with access to trading intelligence, analytics, and tailored stock research reports without transferring possession of the underlying software.

Revenue is generally recognized ratably over the applicable subscription term beginning on the commencement date of each arrangement, which is the date the platform is made available to customers, provided collection is reasonably assured. Subscription agreements generally range from one month to one year. Amounts invoiced are recorded either as contract liabilities or as revenue in the unaudited condensed consolidated financial statements, depending on whether the related performance obligations have been satisfied.

**Contract Liabilities**

Contract liabilities consist deferred revenue in relation to payments that are received in advance of the Company's performance. The Company's contract liabilities are reported on a contract-by-contract basis at the end of each reporting year. The Company classifies contract liabilities as current when the term of the applicable subscription period or expected completion of the performance obligation is one year or less

**Cost of Revenue**

Cost of revenue primarily consist of expenses related to hosting the Company's service and analyst salaries that directly benefit sales. These expenses are comprised of hosted data center global costs, fees paid to third-party data providers and personnel-related costs directly associated with research reports, including salaries and benefits.

These costs are incurred to support the production and delivery of the Company's research reports, data platforms, and other customer-facing services.

Operating expenses consist primarily of research and development, general and administrative, and sales and marketing expenses. Operating expenses are recognized as incurred in accordance with U.S. GAAP.

**General and Administrative Expenses**

General and administrative ("G&A") expenses consist primarily of personnel-related costs, including salaries, bonuses, payroll taxes, and stock-based compensation for executive, finance, legal, and administrative personnel. G&A expenses also include professional fees (legal, audit, tax, consulting, and regulatory compliance), insurance, investor relations costs, public company compliance costs, office and administrative expenses, information technology and software subscriptions, and other corporate overhead costs. These expenses are expensed as incurred.

**Sales and Marketing Expenses**

Sales and marketing ("S&M") expenses consist primarily of advertising, promotional campaigns, branding initiatives, sponsorships, customer acquisition costs, website hosting related to marketing activities, travel, trade shows, and other marketing-related expenditures. Advertising costs are expensed as incurred.

**Research and Development Expenses**

Research and development expenses consist primarily of costs incurred for professional research services, expenditures related to the development and enhancement of the Company's acquired assets 21 Bitcoin.xyz (acquired October 2025) and Publicview.ai (acquired January 2026) and costs associated with the development of the Company's internally developed software platform, SentimenTracker and XYZ terminal. The Company expenses all research & development costs in the periods in which they are incurred.

**Defined Contribution Plan**

Contributions to defined contribution plans are expensed in the period in which services are rendered by the covered employees. The Company recognizes its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates to rights that vest or accumulate and payment is probable and estimable.

**Warrants**

The Company performs an assessment of warrants upon issuance to determine their proper classification in the financial statements based on the warrant's specific terms, in accordance with the authoritative guidance provided in ASC 480 Distinguishing Liabilities from Equity, and ASC 815 Derivatives and Hedging. The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480 and whether they meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company's own Common Stock and whether the warrant holders could potentially require cash settlement of the warrants.

For issued warrants that meet all the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital. For issued warrants that do not meet all the criteria for equity classification, the warrants are required to be liability-classified and recorded at their initial fair value on the date of issuance and remeasured at fair value at each balance sheet date thereafter. The Company has performed an assessment of all warrants issued and determined that the Company's warrants are equity-classified.

As of March 31, 2026, the Company had 72,450 underwriter warrants outstanding (out of an original 144,900 warrants) that had not yet been exercised. These warrants were issued as partial consideration to the underwriters of the IPO or their designees and entitle the holder to purchase shares of Common Stock at $4.30 per share for a period of five years following the six month anniversary of the IPO. See Note 6(D).

**Stock Based Compensation**

We account for our stock-based compensation under ASC 718, "*Compensation – Stock Compensation*" using the fair value-based method. Under this method, compensation cost is measured at the grant date based on the value of the award and is recognized over the service period, which is usually the vesting period. This guidance establishes standards for accounting for transactions in which an entity exchanges equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity's equity instruments or that may be settled by the issuance of those equity instruments. Forfeitures are accounted when they occur.

We use the grant date fair value method for equity instruments granted to non-employees and use Black-Scholes Method for grant date fair value of underwriters' warrants. The stock based fair value compensation is determined as of the date of the grant (measurement date) and is recognized over the vesting periods.

**Related Parties**

The Company adopted ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions.

**Fair Value Measurement**

Fair value is the price that would be received by selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability.

The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value are as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities.

Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The Company's financial instruments include cash, accounts receivable and other receivables, payable and accrued liabilities, contract liabilities and due to related parties. The carrying amounts of these accounts approximate their fair values due to the short-term nature of these instruments.

**Income Taxes**

*Current tax* 

Current tax consists of current tax payable based on the Company's taxable income for the year. The Company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

*Deferred tax* 

The Company records income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company's consolidated financial statements or tax returns. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. The Company nets the deferred tax assets and deferred tax liabilities from temporary differences arising from a particular tax-paying component of the Company within the same tax jurisdiction and presents the net asset or liability as long term. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of operations in the period that includes the enactment date. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized.

The Company recognizes tax benefits from uncertain tax positions if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Although the Company believes that it has adequately reserved for uncertain tax positions, the Company can provide no assurance that the final tax outcome of these matters will not be materially different. The Company makes adjustment to these reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on our financial condition and results of operations.

**Net Loss Per Share**

The Company presents basic and diluted net loss per share data for its common shares. Basic net loss per share is calculated by dividing the net loss attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the year, adjusted for own shares held. Diluted net loss per share is determined by dividing the net loss attributable to common shareholders by the weighted average number of common shares outstanding, adjusted for own shares held and for the effects of all potential dilutive common shares related to outstanding stock options and warrants issued by the Company for the periods presented, except if their inclusion is anti-dilutive.

**Recently Adopted Accounting Pronouncements** 

The Company considers the applicability and impact of all accounting standards updates ("ASUs"). Management periodically reviews new accounting standards that are issued.

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments are intended to improve the transparency and decision usefulness of segment information by requiring enhanced disclosures about significant segment expenses and more consistent information in interim periods. The amendments are effective for the Company for fiscal year beginning after December 15, 2023, and for interim periods beginning after December 15, 2024. Early adoption is permitted. The Company adopted ASU 2023-07 on October 1, 2024 on a retrospective basis. The adoption did not have an impact on the unaudited condensed consolidated financial statements but resulted in expanded segment disclosures.

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"). This ASU requires that public business entities must annually "(1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate)." This ASU is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this standard but does not expect it to have a material impact on unaudited condensed consolidated financial statements. The Company expects the ASU to result in expanded disclosures regarding income taxes.

In November 2024, the FASB issued ASU 2024-03, "Income Statement—Reporting Comprehensive Income (Subtopic 220-40): Disaggregation of Income Statement Expenses." This pronouncement introduces new disclosure requirements aimed at enhancing transparency in financial reporting by requiring disaggregation of specific income statement expense captions. Under the new guidance, entities are required to disclose a breakdown of certain expense categories, such as employee compensation; depreciation; amortization, and other material components. The disaggregated information can be presented either on the face of the income statement or in the notes to the financial statements, often using a tabular format. The ASU is effective for fiscal years beginning after December 15, 2026, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating these new disclosure requirements.

In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software ("ASU 2025-06"). ASU 2025-06 amends the guidance in ASC 350-40, Intangibles—Goodwill and Other—Internal-Use Software. The amendments modernize the recognition and disclosure framework for internal-use software costs, removing the previous "development stage" model and introducing a more judgment-based approach. Under the new guidance, certain costs are capitalized when management authorizes and commits to funding a software project and it is probable that the project will be completed and the software will be used as intended. The amendments are intended to better align accounting with modern software development practices, including agile methodologies. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027, and for interim periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the impact of ASU 2025-06 on its consolidated financial statements.

In December 2025, the FASB issued ASU 2025-10, *Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities*, which establishes authoritative guidance on the recognition, measurement, presentation, and disclosure of government grants. Under ASU 2025-10, government grants are recognized when it is probable that the entity will both comply with the conditions of the grant and the grant will be received. The ASU provides specific accounting models for grants related to assets and grants related to income, including options to recognize government grants as deferred income or as a reduction of the asset's cost basis. The ASU also requires enhanced disclosures regarding the nature of government grants, significant terms and conditions, accounting policies applied, and amounts recognized in the financial statements. ASU 2025-10 is effective for fiscal years beginning after December 15, 2028, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2025-10.

In December 2025, the FASB issued ASU 2025-11, *Interim Reporting (Topic 270): Narrow-Scope Improvements*, which clarifies the guidance in Topic 270 to improve the consistency of interim financial reporting. The ASU provides a comprehensive list of required interim disclosures and introduces a disclosure principle requiring entities to disclose events since the end of the last annual reporting period that have had a material impact on the entity. ASU 2025-11 is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2025-11.

ASU 2024-04 Debt - Debt with Conversion and Other Options - Induced Conversions of Convertible Debt Instruments. In November 2024, the FASB issued this ASU which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as induced conversions or extinguishments. The amendments in this update are effective for all entities for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted for all entities that have adopted the amendments in Update 2020-06. We are currently evaluating the impact this guidance will have on our unaudited condensed consolidated interim financial statements.

In May 2025, the FASB issued Accounting Standards Update No. 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity ("ASU 2025-03"). ASU 2025-03 changes how companies determine the accounting acquirer in certain business combinations involving variable interest entities. The new guidance requires considering the factors used for other acquisition transactions to assess which party is the accounting acquirer. ASU 2025-03 is effective for the Company's annual reporting periods beginning on January 1, 2027. Early adoption is permitted. The Company is currently evaluating the impact of adopting this new accounting guidance on its financial statements and related disclosures.

In May 2025, the FASB issued Accounting Standards Update No. 2025-04, Compensation – Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Clarifications to Share-Based Consideration Payable to a Customer ("ASU 2025-04"). ASU 2025-04 revises the definition of a performance condition, eliminates the forfeiture policy election for service conditions, and clarifies that the variable consideration constraint in Topic 606 does not apply to share-based consideration payable to customers. The new guidance requires entities to consistently account for share-based awards granted to customers by clarifying the treatment of vesting conditions and ensuring alignment with Topic 606 and Topic 718. ASU 2025-04 is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of adopting this new accounting guidance on its financial statements and related disclosures.

The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company's unaudited condensed consolidated balance sheets, statements of operations and comprehensive loss and statements of cash flows.

From time to time, new accounting pronouncements are issued by the FASB or other standard-setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on the accompanying financial statements and disclosures.

**NOTE 3 — CONTRACT LIABILITIES**

Contract liabilities consist of the unearned portion of customer billings, which is recognized as revenue in accordance with our revenue recognition policy. The Company classifies contract liabilities as a current liability on the consolidated balance sheets because the longest subscription plan is for twelve months. The movement of contract liabilities for the three and six months ended March 31, 2026 and March 31, 2025 are as follows:

SCHEDULE OF CONTRACT LIABILITIES

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended March 31,** | **Three months ended March 31,** | **Six months ended March 31,** | **Six months ended March 31,** |
|  | **2026** | **2025** | **2026** | **2025** |
| Opening balance | $360292 | $368058 | $358628 | $380077 |
| Additional contract liabilities accrual | 360685 | 368925 | 701153 | 711549 |
| Revenue recognized from opening contract liabilities | (104713) | (111772) | (288762) | (380845) |
| Revenue recognized from current year billings | (231328) | (230134) | (386083) | (315704) |
| **Ending balance** | $**384936** | $**395077** | $**384936** | $**395077** |

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**Remaining Performance Obligations**

The Company applies the practical expedient in ASC 606-10-50-14, which allows an entity not to disclose the value of remaining performance obligations for contracts with an original expected term of one year or less. Because all of the Company's customer contracts have original expected durations of one year or less, the Company has elected this practical expedient and, accordingly, does not disclose information about remaining performance obligations.

**NOTE 4 — PREPAID EXPENSES** 

The prepaid expenses as of March 31, 2026 and September 30, 2025 were as follows:

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| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **September 30, 2025** |
| Software license | $7085 | $16673 |
| SEC filing fees | 78071 | 49675 |
| Insurance | 58127 | 282066 |
| Consulting fees | 71703 |  |
| Other | 47327 | 16659 |
| **Total** | $**262313** | $**365073** |

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**NOTE 5 —ACCRUED LIABILITIES**

The accrued liabilities as of March 31, 2026 and September 30, 2025 were as follows:

SCHEDULE OF TRADE PAYABLES AND ACCRUED LIABILITIES

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| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **September 30, 2025** |
| Accrued expenses | 71061 | 21021 |
| Accrued wages | 3541 | 34806 |
| **Total** | $**74602** | $**55827** |

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**NOTE 6 — EQUITY**

**A) Shares Issued for Service Agreements**

On December 22, 2025, the Company issued 25,125 shares of Common Stock to certain non-employees, specifically the sellers of the Coinstack assets, in consideration for services to be provided under a transition services agreement entered in connection with the asset acquisition. The shares were issued at a fair value of $5.97 per share, resulting in an aggregate fair value of $150,000. The transaction has been accounted for as an equity-settled share-based payment. The expense relating to the services received is recognized over the period during which the services are rendered. The fair value of the services received is measured by reference to the fair value of the equity instruments issued.

No shares were issued for Service Agreement for the year ended September 30, 2025.

The Company did not conduct any private placements during the three and six months ended March 31, 2026.

**B) Reverse Stock Split**

On January 15, 2025, the Company's board of directors approved a share consolidation of the Company's common shares at a ratio of 1.2-for-1 reverse split, effective on January 15, 2025. As a result of the share consolidation, every 1.2 common shares outstanding is automatically combined and converted into 1 issued and outstanding common share, without any action required from shareholders. The par value and the authorized number of common shares remained unchanged.

All share and per-share information included in the unaudited condensed consolidated financial statements and notes thereto have been retroactively adjusted for the 1.2-for-1 reverse split occurred on the first day of the first period presented.

As of March 31, 2026, and September 30, 2025, the Company had 12,144,730 and 12,101,273 shares of Common Stock issued and outstanding, respectively.

**C) IPO**

The registration statement for the Company's IPO was declared effective on April 9, 2025. We consummated our IPO on April 11, 2025, with the issuance of 1,800,000 shares of Common Stock at a public offering price of $4.30 per share, generating gross proceeds of $7,740,000. In connection with the IPO, we granted the underwriters an over-allotment option to purchase up to 270,000 additional shares of Common Stock at the same public offering price. On April 16, 2025, the IPO Over-Allotment Option was fully exercised, resulting in additional gross proceeds of $1,161,000. With the full exercise of the IPO Over-Allotment Option, the total gross proceeds from the IPO amounted to $8,901,000, before deducting underwriting discounts, commissions, and offering expenses. Total share issuance cost incurred for same is $1,661,437.

**D) Underwriters' Warrants**

In connection with the Company's IPO and the IPO Over-Allotment Option, the Company issued to the representatives of the underwriters, or their permitted designees, warrants (the "Underwriters' Warrants") to purchase 144,900 shares of Common Stock (representing 7% of the total shares sold in the offering) at an exercise price of $4.30 per share (the public offering price). The Underwriters' Warrants become exercisable 180 days after the IPO closing date and have a term of five (5) years from the commencement of sales of the securities in the offering. The issuance of these warrants represented additional compensation to the underwriters for services rendered in connection with the IPO.

The Company performs an assessment of Underwriters' Warrants upon issuance to determine their proper classification in the financial statements based on the warrant's specific terms, in accordance with the authoritative guidance provided in Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 480 Distinguishing Liabilities from Equity, and ASC 815 Derivatives and Hedging. The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480 and whether they meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company's own Common Stock and whether the warrant holders could potentially require cash settlement of the warrants.

The Company has concluded that the Underwriters' Warrants are equity classified.

Accordingly, the Underwriter Warrants were recorded within stockholders' equity in additional paid-in capital ("APIC")**.** However, as the warrants are incremental and directly attributable to the IPO, the Company recorded the fair value of the Underwriter Warrants as an equity issuance cost as a reduction of APIC. As the result, no net impact to total APIC.

The Underwriters' Warrants were valued at $302,751 based on a Black-Scholes valuation with the following assumptions (Risk-free interest rate: 4.30%; expected life of warrants: 5 years; estimated volatility: 50%; dividend rate: 0%).

A summary of the warrants' movement schedule is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Warrant Outstanding** | **Warrant Outstanding** | **Warrant Outstanding** |
|  | **Number of Warrants** | **Weighted average exercise price** | **Weighted average remaining life** |
| Balance – October 1, 2025 | 144900 | $4.3 | 4.53 |
| Granted |  |  |  |
| Exercised | (72450) | - | - |
| Outstanding - March 31, 2026 | 72450 | $4.3 | 3.95 |

---

The Company issued 72,450 underwriter warrants with an exercise price of $4.30 per share that were exercised on a cashless basis to purchase 18,332 Common Stock.

**NOTE 7 — NET LOSS PER SHARE**

The computation of net loss per share and weighted-average shares of Common Stock outstanding for the periods presented are as follows:

SCHEDULE OF EARNING PER SHARE AND WEIGHTED AVERAGE SHARES

---

| | | |
|:---|:---|:---|
|  | **Three months ended March 31,** | **Three months ended March 31,** |
|  | **2026** | **2025** |
| Net loss attributable to common stockholders | $(1028964) | $(390181) |
| Basic and diluted weighted-average common shares outstanding | 12144730 | 10031273 |
| **Basic and diluted** | $**(0.08)** | $**(0.04)** |

---

---

| | | |
|:---|:---|:---|
|  | **Six months ended March 31,** | **Six months ended March 31,** |
|  | **2026** | **2025** |
| Net loss attributable to common stockholders | $(2326201) | $(712380) |
| Basic and diluted weighted-average common shares outstanding | 12131202 | 10031273 |
| **Basic and diluted** | $**(0.19)** | $**(0.07)** |

---

There were no preferred or other dividends declared for the three and six months ended March 31, 2026. The below table includes the total securities potentially dilutive for the three and six months ended March 31, 2026 and 2025, which have been excluded from the computation of diluted earnings (loss) per share.

SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE

---

| | | | |
|:---|:---|:---|:---|
|  | **Three months ended March 31,** | **Three months ended March 31,** | **Three months ended March 31,** |
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2025** |
| Warrants Outstanding (Underwriters' Warrants) |  | 72450 |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Six months ended March 31,** | **Six months ended March 31,** | **Six months ended March 31,** |
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2025** |
| Warrants Outstanding (Underwriters' Warrants) |  | 72450 |  |

---

Although the Underwriters' Warrants contain cashless exercise provisions, the impact of such provisions was not considered in diluted net loss per share as the Company incurred a net loss during the period and all potential shares of Common Stock were anti-dilutive.

**NOTE 8 — PROPERTY AND EQUIPMENT, NET**

On July 21, 2025, the Company entered into a Purchase and Sale Agreement (the "Purchase Agreement") with 537 Greenwich Owner, LLC (the "Seller"), pursuant to which the Company agreed to purchase from the Seller the retail level office space located at 110 Charlton Street, Unit RET B, New York, NY 10014 (the "Property").

On October 14, 2025, the Company assigned the Purchase Agreement to its newly formed, wholly owned subsidiary, 537 Greenwich LLC, an entity formed for the purpose of holding the Property.

The contractual purchase price of the Property was $1,080,000 in cash. In accordance with the Purchase Agreement, the Company previously paid a deposit of $108,000, which was applied toward the purchase price at closing. Total cash consideration paid to the Seller at closing on December 19, 2025 was $976,830, excluding adjustments for certain condominium-related fees and real estate taxes of $4,241. In addition, the Company incurred $191,768 of transaction costs in connection with the acquisition, primarily consisting of legal fees, title costs, transfer taxes, and other closing-related costs. These costs were capitalized as part of the basis of the Property. The total capitalized cost of the Property was $1,276,598.

The Property comprises approximately 1,600 square feet within Greenwich West, a mixed-use development in the Hudson Square neighborhood of New York City and will serve as the Company's corporate headquarters.

There are no material relationships between the Company (or its affiliates) and the Seller.

Property and equipment, net consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **September 30, 2025** |
| Buildings | $1276598 | $- |
| Computer & equipment | 18799 | 18799 |
| Less: Accumulated depreciation | (29926) | (14730) |
| **Property and equipment, net** | $**1265471** | $**4069** |

---

Depreciation expenses totaled $13,071 and $524 during the three months ended March 31, 2026 and 2025, respectively.

Depreciation expenses totaled $15,196 and $1,047 during the six months ended March 31, 2026 and 2025, respectively.

**NOTE 9 — INTANGIBLES**

*21 Bitcoin.xyz Asset Acquisition*

On October 15, 2025, the Company acquired substantially all of the assets of 21Bitcoin.xyz, a digital platform that autonomously generates and distributes real-time market intelligence through an advanced AI-powered publishing engine. 21Bitcoin provides extensive coverage of the digital asset landscape, including market trends, blockchain innovation, industry developments, regulatory policy, decentralized finance (DeFi), non-fungible tokens (NFTs), the metaverse, Web3 infrastructure, cybersecurity, privacy, and global adoption trends.

The Company evaluated the transaction under ASC 805 and concluded that the acquired set did not meet the definition of a business. Substantially all of the fair value of the gross assets acquired was concentrated in identifiable intangible assets, and the acquired set did not include substantive processes capable of producing outputs independently. Accordingly, the transaction was accounted for as an asset acquisition under ASC 805-50 and as such, the transaction was considered to be insignificant.

In accordance with ASC 805-50-30-3, the total acquisition cost of $30,000 was allocated to the identifiable assets acquired on a relative fair value basis as of October 15, 2025.

The 21 Bitcoin.xyz asset acquisition did not have a material impact on the Company's condensed consolidated financial statements for the period ended March 31, 2026 and as such detailed disclosures regarding acquired intangible assets were considered to be insignificant.

*Coinstack Asset Acquisition*

On December 22, 2025, the Company acquired substantially all the assets of Coinstack (the "Coinstack Acquisition"). The acquired assets primarily consist of subscriber lists and related data, trade name and trademarks (including associated domain names), content library and archives, advertiser and sponsor relationships, and social media and community presence.

The Company evaluated the transaction under ASC 805 and concluded that the acquired set did not meet the definition of a business. Substantially all of the fair value of the gross assets acquired was concentrated in identifiable intangible assets, and the acquired set did not include substantive processes capable of producing outputs independently. Accordingly, the transaction was accounted for as an asset acquisition under ASC 805-50.

Total consideration consisted of cash paid at closing and directly attributable transaction costs. In accordance with ASC 805-50-30-1, transaction costs were capitalized as part of the cost of the acquired assets.

In connection with the acquisition, the Company issued 25,125 shares of Common Stock to the sellers pursuant to a Transition Services Agreement for post-closing services. These shares were issued at a fair value of $5.97 per share (aggregate fair value of approximately $150,000) and were accounted for separately as equity-settled share-based compensation under ASC 718. Because the shares were issued for post-acquisition services rather than as consideration transferred for the acquired assets, they were not included in the purchase price allocation. The Coinstack asset acquisition did not have a material impact on the Company's condensed consolidated financial statements for the period ended March 31, 2026 and as such detailed disclosures regarding acquired intangible assets were considered to be insignificant.

*Publicview Asset Acquisition*

On January 15, 2026, the Company acquired substantially all of the assets of Publicview.ai ("PublicView"), an AI-powered stock market research platform that provides real-time filling analysis. The acquired assets included, among other things, proprietary source code, databases, cloud infrastructure, domain names, payment and billing systems, intellectual property and customer relationships.

The Company evaluated the transaction under Accounting Standards Codification ("ASC") 805 and concluded that the acquired set did not meet the definition of a business. Substantially all of the fair value of the gross assets acquired was concentrated in identifiable intangible assets, and the acquired set did not include substantive processes capable of producing outputs independently. Accordingly, the transaction was accounted for as an asset acquisition under ASC 805-50.

In accordance with ASC 805-50-30-3, the total acquisition cost of $9,000 was allocated to the identifiable assets acquired on a relative fair value basis as of January 15, 2026.

The PublicView asset acquisition did not have a material impact on the Company's condensed consolidated financial statements for the period ended March 31, 2026, and as such, detailed disclosures regarding the acquired assets were considered to be insignificant.

*SentimenTracker -Internally Developed Software*

The Company accounts for costs incurred to develop internal-use software in accordance with Accounting Standards Codification ("ASC") 350-40, *Intangibles—Goodwill and Other—Internal-Use Software*. The Company capitalized $118,016 of internal-use software development costs related to SentimenTracker as of February 9, 2026, upon completion of the application development stage and readiness for intended use. The capitalized costs are being amortized on a straight-line basis over an estimated useful life of three years.

Amortization expenses of $16,634 and $0 respectively were recorded for the three months ended March 31, 2026 and 2025.

Amortization expenses of $22,254 and $0 respectively were recorded for the six months ended March 31, 2026 and 2025.

No impairment indicators were identified as of March 31, 2026.

**NOTE 10 — RELATED PARTY TRANSACTIONS**

Related parties include key management personnel, their close family members and entities under their control or joint control. Key management personnel are those who have authority and responsibility for the planning directing and controlling the activities of the entity, directly or indirectly. The Company defines key management personnel as the Company's C-level executives and Board of Directors. The Company's relationship with related parties who had transactions with the Company are summarized as follows:

---

| | |
|:---|:---|
| **Related Party** | **Relationship with the Company** |
| Qian Zhang | Former Director and CEO of Sundial from May 31, 2023 to July 10, 2024; Operating Officer ("COO") of Sundial since July 10, 2024; Former Director and Interim CEO of the Company from August 25, 2023 to September 11, 2023 |
| Hao Hu | Chief Information Officer ("CIO") of Sundial since March 15, 2023; Director of Sundial since September 9, 2023; Interim Chief Executive Officer of Sundial since July 10, 2024; Former Director and CTO of the Company from August 25, 2023 to September 11, 2023 |
| Nicolas Kuan Liang Lin | Chief Executive Officer ("CEO") since September 11, 2023 and Director of the Company since August 25, 2023 |
| David Chi Ching Ho | Chief Strategy Officer ("CSO") of the Company from April 1, 2024 to February 13, 2026 |
| Siu Hang (Henry) Wong | Director of Business Development the Company from December 1, 2024 to February 1, 2025 and Chief Operating Officer ("COO") the Company from June 1, 2024 to November 20, 2024 |
| Elixir Technology Inc. | The Company's principal common shareholder controlled by Jaclyn Wu, a former director of the Company and Sundial |
| Jaclyn Wu | Director of Sundial from August 16, 2022 to February 15, 2026; Director of the Company from August 25, 2023 to December 14, 2025 |
| Monic Wealth Solutions Ltd. | Owned by Jaclyn Wu, a former director of the Company and Sundial. |
| Ledger Pros LLC | Owned by Suresh R. Iyer, the Chief Financial Officer ("CFO") the Company since May 16, 2024 |
| Suresh R. Iyer | Chief Financial Officer ("CFO") the Company since May 16, 2024 |
| Monic Financial Group | Owned by Jaclyn Wu, a former director of the Company and Sundial |
| WUYAO Safety Technology (Hang Zhou) Co., LTD | Hao Hu, CTO of Aether, CIO and Interim CEO of Sundial is Director of Wuyao since June 2025 and had Controlling Ownership of same for the period June 20, 2025 to October 30, 2025. |

---

**Related Party balances**

The Company's balances due to related parties as of March 31, 2026 and September 30, 2025 were as follows:

---

| | | |
|:---|:---|:---|
| **Name** | **March 31, 2026** | **September 30, 2025** |
| Qian Zhang | $- | $4556 |
| Elixir Technology Inc. | 5158 | 5157 |
| Hao Hu | 14 | 10 |
| WUYAO Safety Technology (Hang Zhou) Co., LTD | - | 27470 |
| **Total due to related parties** | $**5172** | $**37193** |

---

The amounts due to related parties as of March 31, 2026 and September 30, 2025 are unsecured, interest-free, and due on demand.

**Related Party transactions**

The Company had the following related party transactions:

**A) Services rendered from related parties**

During the three and six months ended March 31, 2026, the Company did not incur any expenses for accounting services provided by Ledger Pros LLC. During the three and six months ended March 31, 2025, the Company incurred $9,600 and $18,600 for the accounting services provided by Ledger Pros LLC.

**B) Director fees and consulting fees for services rendered by directors and consultants**

SCHEDULE OF SERVICES RENDERED BY EXECUTIVE OFFICERS AND DIRECTORS

---

| | | | |
|:---|:---|:---|:---|
| | | **Three months ended March 31,** | **Three months ended March 31,** |
| <br>**Name** | <br>**Nature of Service** | **2026** | **2025** |
| Jaclyn Wu | Consulting | $29091 | $30000 |
| Siu Hang (Henry) Wong | Consulting |  | 2000 |
| Wayne Huo | Director | 12498 | - |
| **Total** |  | $**41589** | $**32000** |

---

---

| | | | |
|:---|:---|:---|:---|
| | | **Six months ended March 31,** | **Six months ended March 31,** |
| <br>**Name** | <br>**Nature of Service** | **2026** | **2025** |
| Jaclyn Wu | Director/ Consulting | $53439 | $60000 |
| Siu Hang (Henry) Wong | Consulting |  | 12398 |
| Wayne Huo | Director | 14380 | - |
| **Total** |  | $**67819** | $**72398** |

---

**NOTE 11 - INCOME TAXES**

For the six months ended March 31, 2026 and 2025, the Company recorded income tax expense (benefit) of $0, as they were insignificant.

The Company has evaluated the positive and negative evidence bearing upon its ability to realize its deferred tax assets, which primarily consist of net operating loss carry forwards. The Company has considered its history of cumulative net losses, estimated future taxable income and prudent and feasible tax planning strategies and has concluded that it is more likely than not that the Company will not realize the benefits of its deferred tax assets. As a result, as of March 31, 2026 and September 30, 2025, the Company has maintained a full valuation allowance against its net deferred tax assets.

**NOTE 12 — RISKS AND CONCENTRATIONS**

The Company's risk exposures and the impact on the Company's financial instruments are summarized below:

*Credit risk*

Credit risk is the risk of loss associated with a counterparty's inability to fulfil its payment obligations. The Company's credit risk is primarily attributable to cash. As of March 31, 2026, and September 30, 2025, substantially all of the Company's cash was held in major financial institutions located in the U.S., which are FDIC-insured and management considers to be of high credit quality.

The maximum exposure of such assets to credit risk is their carrying amounts at the balance sheet dates. The Company maintains its bank accounts at financial institutions in the United States, where there is $250,000 standard deposit insurance coverage limit per depositor, per FDIC-insured bank and per ownership category. As of March 31, 2026 and September 30, 2025, cash balances of $592,073 and $4,258,605, respectively, were maintained at financial institutions in the US. The remaining balances of $215,884 and $159,564, respectively, were maintained in payment processing accounts with services such as Shopify, PayPal and Stripe. While management believes that the financial institutions and payment processors used by the Company are of high credit quality, it also continually monitors their creditworthiness.

*Liquidity risk*

Liquidity risk arises through the excess of financial obligations over available financial assets due at any point in time. The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when they come due. All of the Company's financial liabilities are subject to normal trade terms. The Company has historically funded the working capital needs primarily from operations, as well as advances from related parties.

*Going concern*

The Company's unaudited condensed consolidated financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

Since inception, the Company has incurred recurring losses and negative cash flows from operations, resulting in an accumulated deficit of $7,524,408 as of March 31, 2026. For the six months ended March 31, 2026, the Company incurred a net loss of $2,326,201 and used cash in operating activities of $1,927,242. Although the Company completed its initial public offering on April 11, 2025 and the closing of the underwriters' over-allotment option on April 16, 2025, which collectively generated aggregate gross proceeds of approximately $8,901,000 (before underwriting discounts and offering expenses), the Company continues to incur operating losses and expects to require additional capital to fund operations and execute its business plan. These conditions raise substantial doubt about the Company's ability to continue as a going concern within one year after the date these unaudited condensed consolidated financial statements are issued.

Management intends to fund operating costs over the next twelve months primarily through the use of remaining IPO proceeds and, if necessary, through additional financing from public or private offerings of equity or debt securities. However, there can be no assurance that such financing will be available on acceptable terms, or at all. Accordingly, management has concluded that substantial doubt about the Company's ability to continue as a going concern has not been alleviated. The accompanying condensed financial statements do not include any adjustments that might result from the outcome of this uncertainty.

*Market risk*

Market risk is the risk of loss that may arise from changes in market factors such as interest rates, foreign exchange rates, and commodity and equity prices. These market factors are not expected to pose significant risks to the Company.

*Concentration risk*

For purposes of assessing the concentration of credit risk and significant customers, a group of customers under common control or customers that are affiliates of each other are regarded as single customers. Additionally, there were no customers that represented 10% or more of the Company's revenue for the six months ended March 31, 2026, or the year ended September 30, 2025.

**NOTE 13 — COMMITMENTS AND CONTINGENCIES**

The Company may, from time to time, be party to legal proceedings arising in the ordinary course of its business operations. As of the date of this report, there is one pending lawsuit against the Company and its CEO. Management does not believe that the outcome of this matter will reasonably be expected to have a material adverse effect on the Company's financial condition or results of operations. There are no other proceedings in which any current director, officer, affiliate, registered stockholder, or beneficial stockholder of the Company is an adverse party or holds a material interest adverse to the interests of the Company.

As of March 31, 2026, the Company did not have any lease agreements or material lease commitments. Accordingly, no right-of-use assets or lease liabilities have been recognized in the accompanying unaudited condensed consolidated financial statements.

As mentioned in Note 1 above, in March 2026, AetherHub entered into the IP Option Agreement, pursuant to which AetherHub was granted an exclusive option to acquire certain intellectual property rights underlying Oort's DataHub platform. The option may be exercised at AetherHub's discretion within twelve months following its formation, subject to a determination of commercial success by AetherHub's board of managers. No option premium or other consideration is payable by AetherHub unless the option is exercised.

If exercised, the IP Option Agreement contemplates a future transaction that may include (i) the transfer of the underlying intellectual property to AetherHub, (ii) a strategic equity investment of not less than $5.0 million in Oort by AetherHub's members and/or their affiliates, and (iii) an additional capital contribution of up to $5.0 million to AetherHub, together with related changes to AetherHub's ownership structure.

As of March 31, 2026, the option had not been exercised, no consideration had been paid, and no assets or liabilities related to the IP Option Agreement were recognized in the accompanying condensed consolidated financial statements.

**NOTE 14 - SUBSEQUENT EVENTS:**

In accordance with ASC 855-10, "Subsequent Events," the Company evaluated subsequent events after March 31, 2026, through the date the consolidated financial statements were issued. Except as disclosed below, the Company did not identify any other subsequent events requiring recognition or disclosure in the consolidated financial statements.

**Note Purchase Agreement with Streeterville Capital, LLC**

On May 13, 2026, the Company entered into a Note Purchase Agreement (the "Note Purchase Agreement") with Streeterville Capital, LLC, a Utah limited liability company (the "Investor"), pursuant to which the Company issued a Secured Promissory Note (the "Note") in the original principal amount of $3,240,000, which includes an original issue discount of $240,000. The purchase price for the Note was $3,000,000. After deducting a $30,000 transaction expense amount payable to the Investor, net proceeds to the Company were approximately $2,970,000. The Note bears interest at 8% per annum, compounding daily based on a 360-day year of twelve 30-day months, and matures eighteen (18) months after the date the purchase price is delivered to the Company (the "Purchase Price Date").

Beginning six months after issuance, the Investor may redeem up to $250,000 of the outstanding balance per month, with each redemption payable within three (3) business days. In addition, the Investor may require additional redemptions equal to 10% of the traded dollar volume on a trading day when the Company's stock price trades at more than 10% above the Nasdaq Minimum Price.The Company has the right, subject to specified equity conditions, to satisfy redemption obligations in shares of its common stock at the Nasdaq Minimum Price. The Company may also prepay the Note in full at 110% of the then-outstanding balance.

The Company is evaluating the accounting implications of the Note and related agreements, including classification, the accounting for discounts and fees, and whether any features require separate accounting under ASC 815. As this evaluation is ongoing, the Company is unable to estimate the financial statement impact of the transaction at this time.

**Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations**

*The following discussion and analysis of our financial condition and results of operations should be read together with our unaudited condensed financial statements and the related notes appearing elsewhere in this Report. In addition to unaudited condensed financial statements, the following discussions and other parts of this Report contain forward-looking statements that reflect our plans, objectives, expectations, intentions, and beliefs, which involve risks, uncertainties and assumptions. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified below and those discussed in the sections titled "Cautionary Note on Forward-Looking Statements" and "Risk Factors" included elsewhere in this Report.*

**Overview of Our Company**

We are an emerging financial technology platform company that offers proprietary research analytics, data and tools for both institutional and retail equity traders (who we refer to herein as "Users") through our flagship platform, SentimenTrader.com. By integrating advanced technologies, including artificial intelligence ("AI") tools, with the critical thinking and analytical abilities of our team of evidenced-based trading veterans, we aim to provide our Users with a powerful combination of technology and expertise, enabling them to make informed decisions and optimize their trading strategies in the markets.

Starting with this continuous collection of data, our algorithms categorize and refine information into proprietary indicators which our Users can choose to use to develop or enhance their trading strategies. Additionally, our analysts apply their expertise to this data across various financial instruments, generating detailed reports for our Users' consumption.

The integration of our technology, especially in stock index analysis, leverages advanced machine learning to refine and enhance signal detection continually. This synergy culminates in delivering User-centric tools and solutions, providing our Users with access to analytics and insights, and a foundation for all our AI-driven tools and services. This approach not only offers timely and accurate data directly to our Users but also fosters trust and transparency, minimizing User reliance on third-party sources in their development of trading strategies.

Our platform currently provides coverage of U.S. equity and option securities, evaluating the equities and options markets and conducting assessments through our analysts and technology daily. SentimenTrader utilizes technical indicators of market sentiment (meaning our proprietary gauge of the overall attitude of investors towards a particular market or security) as the cornerstone for our analyses and integrates technological advancements and the potential of deep learning techniques to analyze the market and facilitate our Users' creation of trade ideas, strategies, and models. We intend to target a wider audience than our current User base by broadening the scope and variety of our products, expanding the types of securities our platform covers, and broadening our coverage to include more markets and exchanges.

Beginning in April 2025, we began a new initiative to expand our newsletter business through the incorporation of our wholly-owned subsidiary, Alpha Edge Media, Inc. ("AEM"). The newsletters published by AEM target both institutional and retail investors, focusing on topics such as macroeconomic trends, market insights, and market psychology, while broadening our overall coverage of securities, markets and exchanges. We believe the expansion of our newsletter business will complement the newsletters currently published through our SentimenTrader platform and enable us to continue to build brand authority, expand recurring engagement with our Users, generate new User engagement with SentimenTrader, and open new revenue streams through potential advertisements, sponsorships, and premium content.

We continue to focus on achieving our mission of establishing ourselves as a preeminent fintech information company dedicated to the acquisition and development of smart platforms tailored to empower the investing community with actionable strategic insights. To this end, in addition to our establishing AEM to further develop our newsletter business and expand the securities, markets, and exchanges we currently cover, we are also actively exploring research and development initiatives to focus on advancing proprietary analytics and AI-driven models, as well as the possibility of growth through acquisition of complementary tools and technologies that would enhance our platform's capabilities and value to Users. Furthermore, in 2025 and 2026, we made acquisitions of online financial newsletters and related intellectual property (including subscriber lists) to add to our portfolio of titles.

**Recent Developments**

*Dispute with Former Director*

As previously reported in our Annual Report, since July 18, 2025, our management has been engaged in a dispute with Mr. David Mandel, a former member of our board of directors. On March 19, 2026, Mr. Mandel filed a lawsuit against the Company and Mr. Nicolas Lin, our Chief Executive Officer and Chairman. See "*Part II – Other Information - Item 1 – Legal Proceedings*" below for more information and the section entitled "*Risk Factors - Our management is currently in a dispute with one of our former directors If he were to bring legal action against us, and we were to receive an adverse ruling, it could materially and adversely affect our reputation, dilute our shareholders' equity interests in the Company, and adversely affect our stock price*" contained in our Annual Report for a discussion of the risks associated with the dispute.

*Formation of AetherHub Joint Venture*

On March 25, 2026, our subsidiary Aether Labs, Inc. ("Aether Labs") and OorTech Inc. ("Oort") formed Aether DataHub, LLC, a Delaware limited liability company ("AetherHub"), as a joint venture to develop and commercialize the "AetherHub Platform," a white-labeled deployment of Oort's proprietary DataHub technology, for use exclusively in the field of financial media and financial education data labeling and annotation services (the "Field"). AetherHub was established pursuant to three executed agreements: (i) a Limited Liability Company Operating Agreement, (ii) a Technology License and Services Agreement (the "Technology Agreement"), and (iii) an IP Option Agreement, each dated March 25, 2026 (or March 23, 2026 in the case of the Technology Agreement). AetherHub's business model is based on third-party customers providing their own datasets for labeling and processing. Our company has no obligation to contribute any of our proprietary datasets to AetherHub.

Membership interests in AetherHub are held 70% by Aether and 30% by Oort. Aether's contribution consists of commercialization leadership, go-to-market strategy, the "AetherHub" brand and related resources, and initial working capital as approved by the AetherHub's board of managers. Oort's contribution consists of the DataHub technology and related documentation, at least two dedicated software developers, and ongoing support and maintenance services. No cash license or development fees are payable to Oort; Oort's equity interest constitutes its sole consideration. AetherHub is governed by a three-manager board, with Aether designating two managers (including the Chair) and Oort designating one, giving Aether effective operational and strategic control of AetherHub. Profits, losses, and distributions are allocated pro rata in accordance with each member's percentage interest.

Pursuant to the Technology Agreement, Oort granted AetherHub a worldwide, royalty-free, exclusive license (within the Field) to use and operate the DataHub Platform. Oort is prohibited during the term from providing its DataHub platform or any substantially similar technology to third parties for use in the Field and must refer any Field-related commercial opportunities to AetherHub. Oort has committed to deliver an initial launch-ready version of the AetherHub Platform within 120 days of March 23, 2026. Intellectual property developed specifically for the AetherHub Platform is assigned to AetherHub; general-purpose platform enhancements remain owned by Oort subject to a perpetual royalty-free license to AetherHub within the Field. Each party's aggregate liability under the Technology Agreement is capped at $5,000,000, subject to customary exceptions.

AetherHub had no transactions during the three months ended March 31, 2026, and AetherHub did not have a material impact on the Company's consolidated financial position or results of operations for the period then ended. However, the related accounting implications were insignificant to the Company's condensed unaudited consolidated financial statements for the period ended March 31, 2026.

*SentimenTracker*

 

The Company has developed an internally generated software platform, SentimenTracker, an analytics tool designed to process and analyze financial and market data to generate actionable insights. In February 2026, SentimenTracker completed the application development stage and was placed into service for its intended use. The platform was commercially launched and deployed within the Company's production environment.

The software's core functionality, system architecture, data ingestion pipelines, sentiment analysis models, integrations, and infrastructure were fully developed and tested. Accordingly, capitalization of development costs ceased upon completion of the application development stage, and subsequent costs are expensed as incurred.

*Acquisition of PublicView.ai*

On January 15, 2026, we closed the acquisition of PublicView.ai ("Public View"), an AI-driven market intelligence platform designed to simplify and accelerate equity research. Public View serves a diverse user base of retail and professional investors, financial analysts and researchers, fintech platforms, and data-driven investment teams. Its core capabilities include AI-powered parsing and summarization of SEC filings, insight extraction from earnings releases, natural-language research workflows that reduce manual document review, and tools to ease access to public market data. While relatively small, by integrating Public View into the toolset of Aether Grid, we intend to deliver a more complete research experience that connects technical signals and sentiment indicators with fundamental equity research. Aether Grid acquired the source code, repositories, databases, intellectual property, and other assets for a cash purchase price of $9,000.

**Bitcoin Treasury Strategy**

On July 18, 2025, our board of directors approved the adoption of a new treasury strategy for the Company, which primarily consists of holding the majority our liquid assets in bitcoin. We do not currently hold any bitcoin and we intend to fund our initial acquisition of bitcoin with the proceeds of a public or private offering of our securities; however, there can be no assurances that we will complete such an offering on favorable terms, on unfavorable terms, or at all. If we do not complete an offering of our securities, we intend to pursue other capital raising opportunities to finance our initial acquisition of bitcoin. See the sections of or Annual Report entitled "*Business – Bitcoin Treasury Strategy*" and "*Risk Factors – Risks Related to our Bitcoin Treasury Strategy and Holdings*" for a more detailed discussion of our bitcoin treasury strategy.

**Financial Highlights**

The following table presents the revenue, cost of sales, gross margin and the net cash provided by or used in operating activities for the six months ended March 31, 2026 and 2025.

---

| | | | |
|:---|:---|:---|:---|
|  | **Six months ended March 31,** | **Six months ended March 31,** | |
|  | **2026** | **2025** |<br>**% Change** |
| Revenue | $674845 | $696549 | (3.12)% |
| Cost of sales | $131204 | $217174 | (39.59)% |
| Gross profit margin | 80.56% | 68.82% | 17.05% |
| Net cash used in operating activities | $(1927242) | $(361771) | 432.72% |

---

**Factors and Trends Affecting Our Business and Results of Operations**

We believe the most significant factors that affect our business and results of operations including the following:

***Increasing Usage by Our Existing Customers***

Our existing Userbase presents a significant opportunity for further sales expansion through increased usage of our platform and adoption of additional product offerings. We are highly focused on gaining a better understanding of the needs and growth plans of our existing Users. This deeper relationship with our Users will help us identify opportunities to educate our customer base on ways to utilize the platform more effectively for their individual use cases, as well as provide a feedback loop to inform our product roadmap. We are focusing on our sales and support teams to prevent user churn by ensuring that our products and services can provide a high level of value. Our goal is to continue to increase our revenue from existing users through the introduction of new products and features tailored to our customer base in addition to expanded user outreach focused on larger Users and specific use cases.

***Growing Our Base of Higher Spend Customers***

We believe there is a substantial opportunity to further expand our Userbase to attract more businesses that can scale on our platform. We are investing in strategies that we believe will attract enterprise users, including new marketing and partnership initiatives that further optimize our self-service revenue funnel and help users expand their usage. We are also acquiring online newsletters (including, since our IPO, Whale Tales, Altcoin Investing, 21Bitcoin.xyz, Coinstack and Publicview.ai) as a means of growing our subscriber base.

***Investing in Our Platform and Product Offerings***

We have a history of and will continue to invest significantly in delivering innovative products, features and functionality targeted at our core Userbase. The market opportunity for our core services of providing proprietary research analytics, data, and tools for equity traders through a flagship platform continues to expand and we are making targeted investments to expand this revenue. Beyond the SentimenTrader and SentimenTracker platforms, we continue to see large growth opportunities in U.S. markets and, accordingly, we have expanded our portfolio of products and offerings over the last few years, including through acquisitions in 2025 and 2026. In addition, we may pursue both strategic collaborations such as AetherHub and additional acquisitions that we believe will be complementary to our business, accelerate User acquisition, increase usage of our platform and/or expand our product offerings in our core markets. Our results of operations may fluctuate as we make these investments to drive usage and take advantage of our market opportunity.

***Increasing Importance of AI***

Our future success depends in large part on the continuing adoption of AI, proliferation of retail investors and the increasing importance of research, all of which we believe can drive the adoption of our equity research platform. We believe our market opportunity is large and that these factors will continue to drive our growth.

***Research and Development***

During the quarter, the Company's research and development activities were primarily focused on building and testing the core components of the XYZ Terminal platform. Key efforts included:

● Platform Architecture and Data Integration: Development of the system framework and integration of real-time market data feeds, automated aggregation of regulatory and corporate disclosures, and the implementation of third-party financial data services.

● AI and Quantitative Modeling: Design and prototyping of large language model (LLM)–based tools for conversational financial queries, as well as predictive analytics modules to assist users in identifying market opportunities.

● User Interface Development: Enhancement of the web-based dashboard for speed, navigation, and customization, with parallel design work for mobile platforms.

● Administrative and Monetization Systems: Integration of subscription billing capabilities, role-based access controls, and administrative analytics dashboards.

Research and development expenditures for the period primarily consisted of fees charged by third-party service providers. Management expects research and development work on XYZ Terminal and SentimenTracker to continue in subsequent periods, with commercialization targeted following the completion of the initial feature set.

***Macroeconomic Conditions***

Unfavorable conditions in the economy both in the United States and abroad, including conditions resulting from changes in gross domestic product growth, supply chain disruptions, inflationary pressures, interest rates, financial and credit market fluctuations, volatility in the capital markets, liquidity concerns at, and failures of, banks and other financial institutions, international trade relations, political turmoil, political instability, natural catastrophes, outbreaks of contagious diseases, warfare and terrorist attacks on the United States, Europe or elsewhere, including military actions affecting Russia, Ukraine, the Middle East or elsewhere, could cause a decrease in business investments in information technology and negatively affect the growth of our business and our results of operations. While our business model provides some resilience against these factors, we will continue to monitor the impacts of these or similar circumstances on our business and will take appropriate measures to minimize potential risk exposure.

**Key Business Metrics**

We review the following key business metrics to measure our performance, identify trends, formulate financial projections, and make strategic decisions. We are not aware of any uniform standards for calculating these key metrics, which may hinder comparability with other companies who may calculate similarly titled metrics in a different way.

***SentimenTrader***

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three months ended<br> March 31,** | **Three months ended<br> March 31,** | | **Six months ended <br> March 31,** | **Six months ended <br> March 31,** | |
|  | **2026** | **2025** | ***% change*** | **2026** | **2025** | ***% change*** |
| Gross New Free Subscribers | 284 | 325 | (12.62) | 652 | 593 | 9.95 |
| Average conversion rate from free to Paid Subscribers | 20.89% | 20.90% | (0.05) | 26.48% | 23.00% | 15.12 |
| Paid Subscribers | 2166 | 2331 | (7.08) | 2176 | 2357 | (7.68) |
| Average Revenue Per User ("ARPU") | $153 | $147 | 4.08 | $307 | $295 | 4.07 |
| Revenue Sundial | $331387 | $341906 | (3.10) | $668899 | $696549 | (4.00) |

---

***Alpha Edge Media (AEM)***

---

| | |
|:---|:---|
| **Publication** | **Free Subscribers as of March 31, 2026** |
| Coinstack | 332952 |
| WhaleTales | 43371 |
| Altcoin Investing | 7112 |
| StockCastr | 5347 |
| IPO Stream | 2645 |
| The Russell Report | 1537 |
| **Total** | **392964** |

---

As of March 31, 2026, Alpha Edge Media had a negligible number of paid subscribers. Subscriber activity commenced on August 14, 2025. Accordingly, there were no subscribers for the six months ended March 31, 2025

 ****

***Free Subscribers***

"Free Subscribers" are defined as Users who subscribe to our free investment publications using a valid email address and remain directly opted in, excluding Paid Subscribers (as defined below) who also receive free subscription materials. These free subscriptions often feature daily publications with commentary on the stock market, investment ideas, and other specialized topics. Our free publications include advertisements and editorial support for our current marketing campaigns. Through these publications, Free Subscribers become acquainted with our editors and analysts, explore our products and services, and discover how we could help them become better investors.

The number of new Free Subscribers for SentimenTrader increased by 59, or 9.95%, from 593 for the six months ended March 31, 2025 to 652 for the six months ended March 31, 2026. The number of new Free Subscribers decreased by 41, or 12.62 %, from 325 for the three months ended March 31, 2025, to 284 for the three months ended March 31, 2026. The decrease in Free Subscribers reflects reduced customer acquisition and increased attrition.

The number of Free Subscribers for Alpha Edge Media as of March 31, 2026, was 392,964. Alpha Edge Media did not have operations as of March 31, 2025.

We acknowledge that Free Subscribers play a critical role in our business ecosystem, serving as the foundation of the customer acquisition funnel. They represent a low-barrier entry point for potential Users, allowing them to explore and engage with the platform without financial commitment. This group often acts as a pipeline for converting Users into Paid Subscribers, which directly drives revenue growth.

***Paid Subscribers***

"Paid Subscribers" are defined as the number of monthly average users with paid subscriptions during the period or year. We view the number of Paid Subscribers at the end of a given period as a key indicator of the attractiveness of our products and services, as well as the efficacy of our marketing in converting Free Subscribers to Paid Subscribers and generating direct-to-paid Paid Subscribers. We intend to grow our Paid Subscriber base through performance marketing directly to prospective and existing users across a variety of media, channels, and platforms. Management anticipates the conversion rate will increase when the business becomes more mature in the future.

Paid Subscribers for SentimenTrader decreased by 181, or 7.68%, from 2,357 for the six months ended March 31, 2025 to 2,176 for the six months ended March 31, 2026. The number of Paid Subscribers decreased by 165, or 7.08 %, from 2,331 for the three months ended March 31, 2025, to 2,166 for the three months ended March 31, 2026.

Paid Subscribers for AEM were negligible as of March 31, 2026. AEM did not have operations as of March 31, 2025.

The average conversion rate from Free Subscribers to Paid Subscribers on our SentimenTrader platform was approximately 26.48% and 23% for the six months ended March 31, 2026 and 2025, respectively. The average conversion rate from Free Subscribers to Paid Subscribers on our SentimenTrader platform was approximately 20.89% and 20.90% for the three months ended March 31, 2026 and 2025, respectively. The higher conversion rates for the six months ended March 31, 2026, were attributable to a promotional campaign.

The average conversion rate from Free Subscribers to Paid Subscribers of AEM was negligible for the six months ended March 31, 2026. AEM did not have operations as of March 31, 2025.

We are actively incorporating new features and improvements into SentimenTrader to enhance user experience and increase conversion rates. This includes introducing advanced analytical tools, expanding data sources, and refining our platform's design to improve accessibility and ease of use. Additionally, we are exploring targeted marketing strategies to attract new Paid Subscribers while retaining existing ones. We intend to focus on growing our Free Subscriber count with AEM to drive traffic to our subscription-based platforms. Through these efforts, we are confident in our ability to enhance user engagement and improve both subscriber growth and conversion rates in the coming periods.

***Average Revenue Per User ("ARPU")***

The ARPU is calculated based on the total revenue divided by the number of monthly average Paid Subscribers over that period or year. We believe ARPU is a key indicator of how successful we are in attracting Users to higher-value content. We believe that our high ARPU is indicative of the trust we build with our Users and of the value they see in our products and services.

ARPU for SentimenTrader increased by $12, or 4.07%, to $307 for the six months ended March 31, 2026, as compared to $295 for the six months ended March 31, 2025.

ARPU for SentimenTrader increased by $6, or 4.08%, to $153 for the three months ended March 31, 2026, as compared to $147 for the three months ended March 31, 2025.

ARPU for SentimenTracker was not significant for the three and six months ended March 31, 2026. No comparable ARPU existed for the three and six months ended March 31, 2025, as the platform was not yet operational during that period.

***Revenue***

Revenue is generated from providing online subscription services. Revenue is generally recognized ratably over the contract term, starting from the commencement date of each contract, which is the date our cloud-based software is made available to customers and collection is reasonably assured.

Total revenue decreased marginally by $21,704, or 3.12%, from $696,549 for the six months ended March 31, 2025, to $674,845 for the six months ended March 31, 2026.

Total revenue decreased by $5,865, or 1.72%, from $341,906 for the three months ended March 31, 2025 to $336,041 for the three months ended March 31, 2026.

**<u>Results of Operations</u>**

**For Six Months Ended March 31, 2026 and 2025**

The following table summarizes the results of unaudited condensed consolidated statements of operations and comprehensive loss for the six months ended March 31, 2026 and 2025 in U.S. dollars and provides information regarding the dollar and percentage increase or (decrease) during such periods. The operating results in any historical period are not necessarily indicative of the results that may be expected for any future period.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six months ended March 31,** | **Six months ended March 31,** | **Six months ended March 31,** | **Six months ended March 31,** | **Six months ended March 31,** | **Six months ended March 31,** |
|  | **2026** | **2026** | **2025** | **2025** | | |
|  |<br>**Amount** |<br>**As % of**<br>**Sales** |<br>**Amount** |<br>**As % of**<br>**Sales** |<br>**Amount**<br>**Increase**<br>**(Decrease)** |<br>**Percentage**<br>**Increase**<br>**(Decrease)** |
| Sales | $674845 | 100.00% | $696549 | 100.00% | $(21704) | (3.12)% |
| Cost of sales | 131204 | 19.44% | 217174 | 31.18% | (85970) | (39.59)% |
| Gross profit | 543641 | 80.56% | 479375 | 68.82% | 64266 | 13.41% |
| **Operating expenses** |  |  |  |  |  |  |
| Sales and marketing expenses | 385558 | 57.13% | 78667 | 11.29% | 306891 | 390.11% |
| General and administrative expenses | 2403956 | 356.22% | 1113088 | 159.80% | 1290868 | 115.97% |
| Research and development expenses | 131119 | 19.43% | - | -% | 131119 | - |
| Total operating expenses | 2920633 | 432.79% | 1191755 | 171.09% | 1728878 | 145.07% |
| **Other Income** |  |  |  |  |  |  |
| Other income, net | 19037 | 2.82% |  | -% | $19037 |  |
| Interest income | 31754 | 4.71% |  | -% | $31754 |  |
| Total Other Income | 50791 | 7.53% |  | -% | 50791 |  |
| Loss before income taxes | (2326201) | (344.70)% | (712380) | (102.27)% | $(1613821) | 226.54% |
| Net loss and comprehensive loss | $(2326201) | (344.70)% | (712380) | (102.27)% | (1613821) | 226.54% |

---

 ****

***Revenue***

Our revenue decreased by $21,704, or 3.12%, from $696,549 for the six months ended March 31, 2025, to $674,845 for the six months ended March 31, 2026 due to a decrease in the number of Paid Subscribers.

We are actively incorporating new features and improvements into SentimenTrader to enhance User experience and increase conversion rates. This includes introducing advanced analytical tools, expanding data sources, and refining our platform's design to improve accessibility and ease of use. Additionally, we are exploring targeted marketing strategies to attract new Paid Subscribers while retaining existing ones. Through these efforts, we are confident in our ability to enhance User engagement and improve both subscriber growth and conversion rates in the coming periods.

***Gross profit and Costs of Sales***

Cost of sales mainly include the hosting costs for the SentimenTrader platform, Bloomberg access for the analysts' use in research, and the analyst salaries. Cost of sales decreased by $85,970, or 39.59%, from $217,174 for the six months ended March 31, 2025, to $131,204 for the six months ended March 31, 2026 due to a decrease in analyst salaries.

Gross profit increased by $64,266, or 13.41%, from $479,375 for the six months ended March 31, 2025 to $543,641 for the six months ended March 31, 2026. The increase in gross profit was mainly due to the decrease in cost of sales, as discussed above.

Gross profit margin increased from 68.82% for the six months ended March 31, 2025, to 80.56% for the six months ended March 31, 2026. The increase in gross profit margin was primarily attributable to the combined impact of the decrease in subscription revenue and decrease in cost of sales.

Our cost and gross profit are as follows:

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Six months ended March 31,** | **Six months ended March 31,** | **Six months ended March 31,** | **Six months ended March 31,** | **Six months ended March 31,** | **Six months ended March 31,** | | | |
| | **2026** | **2026** | **2026** | **2025** | **2025** | **2025** |<br>**Variance** |<br>**Variance** |<br>**Variance** |
| <br>**Category** | **Cost of**<br>**sales** | **Gross**<br>**profit** | **Gross**<br>**profit %** | **Cost of**<br>**sales** | **Gross**<br>**profit** | **Gross**<br>**profit %** | **in Cost of**<br>**sales** | **in gross**<br>**profit** | **in gross**<br>**profit %** |
| Subscription service | $131204 | $543641 | &nbsp;&nbsp;&nbsp;&nbsp; 80.56 | $217174 | $479375 | &nbsp;&nbsp;&nbsp;&nbsp; 68.82 | $&nbsp;&nbsp;&nbsp;&nbsp;(85970) | $64266 | 11.74% |
| Total | $131204 | $543641 | 80.56 | $217174 | $479375 | 68.82 | $(85970) | $64266 | 11.74% |

---

***Selling and marketing expenses***

Our selling and marketing costs primarily consist of expenses related to advertising and marketing consultants. These costs increased by $306,891 or 390.11%, from $78,667 for the six months ended March 31, 2025, to $385,558 for the six months ended March 31, 2026, representing 57.13% and 11.29% of our total revenue for the six months ended March 31, 2026 and 2025, respectively. The increase was mainly driven by higher advertising and marketing expenses incurred in the current period compared to the six months ended March 31, 2025.

***General and administrative expenses***

Our general and administrative expenses primarily include salaries and benefits, legal and professional fees, insurance expenses, office expenses, travel and entertainment expenses, utility expenses, depreciation expenses and amortization expenses. Our general and administrative expenses represented 356.22% and 159.80% of our revenue for the six months ended March 31, 2026 and 2025, respectively. General and administrative expenses increased by $1,290,868, or 115.97%, from $1,113,088 for the six months ended March 31, 2025, to $2,403,956 for the six months ended March 31, 2026. The increase was mainly due to the increase in legal fees, consulting fees, insurance expense, amortization expense, depreciation expense and membership and subscription charges.

***Research and development expenses***

Our research and development expenses primarily consist of costs incurred in the development of artificial intelligence and machine learning tools for our platform. The expenses incurred amounted to $131,119 for the six months ended March 31, 2026, and there were no expenses for the six months ended March 31, 2025. Research and development expenses represented approximately 19.43% and 0% of our revenue for the respective periods.

The increase in research and development expenses was driven by continued investment in enhancing our AI-driven capabilities and platform functionality. We expect research and development expenses to increase in future periods as we remain committed to expanding our AI-related features to deliver enhanced functionality and value to our users.

***Loss before income tax***

We had a loss before income taxes of $2,326,201 and $712,380 for the six months ended March 31, 2026 and 2025, respectively. The loss was primarily attributable to the increase in selling expenses, research and development expenses and general and administrative expenses.

***Provision for income taxes***

We had no provision for income taxes for the six months ended March 31, 2026, as we had no assessable profits for the period.

***Net loss and comprehensive loss***

We had a net comprehensive loss of $2,326,201 and $712,380 for the six months ended March 31, 2026 and 2025, respectively. The loss was primarily attributable to the increase in selling expenses, research and development expenses and general and administrative expenses. The discussion regarding the increase in selling expenses, research and development expenses and general and administrative expenses are discussed in the sections above.

**For The Three Months ended March 31, 2026 and 2025**

The following table summarizes the results of unaudited condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2026 and 2025 in U.S. dollars and provides information regarding the dollar and percentage increase or (decrease) during such periods. The operating results in any historical period are not necessarily indicative of the results that may be expected for any future period.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three months ended March 31,** | **Three months ended March 31,** | **Three months ended March 31,** | **Three months ended March 31,** | **Three months ended March 31,** | **Three months ended March 31,** |
|  | **2026** | **2026** | **2025** | **2025** | | |
|  |<br>**Amount** |<br>**As % of**<br>**Sales** |<br>**Amount** |<br>**As % of**<br>**Sales** |<br>**Amount**<br>**Increase**<br>**(Decrease)** |<br>**Percentage**<br>**Increase**<br>**(Decrease)** |
| Sales | $336041 | 100.00% | $341906 | 100.00% | $(5865) | (1.72)% |
| Cost of sales | 64784 | 19.28% | 109616 | 32.06% | (44832) | (40.90)% |
| Gross profit | 271257 | 80.72% | 232290 | 67.94% | 38967 | 16.78% |
| Operating expenses |  |  |  |  |  |  |
| Sales and marketing expenses | 188986 | 56.24% | 56622 | 16.56% | 132364 | 233.77% |
| General and administrative expenses | 1056512 | 314.40% | 565849 | 165.50% | 490663 | 86.71% |
| Research and development expenses | 73172 | 21.77% | - | -% | 73172 | - |
| Total operating expenses | 1318670 | 392.41% | 622471 | 182.06% | 696199 | 111.84% |
| **Other Income** |  |  |  |  |  |  |
| Other income, net | 12000 | 3.57% |  | -% | $12000 |  |
| Interest income | 6449 | 1.92% |  | -% | $6449 |  |
| Total Other Income | 18449 | 5.49% |  | -% | 18449 |  |
| Loss before income taxes | (1028964) | (306.20)% | (390181) | (114.12)% | $(638783) | 163.71% |
| Net loss and comprehensive loss | $(1028964) | (306.20)% | (390181) | (114.12)% | (638783) | 163.71% |

---

***Revenue***

Our revenue decreased by $5,865, or 1.72%, from $341,906 for the three months ended March 31, 2025, to $336,041 for the three months ended March 31, 2026 due to a decrease in the number of Paid Subscribers.

We are actively incorporating new features and improvements into SentimenTrader to enhance User experience and increase conversion rates. This includes introducing advanced analytical tools, expanding data sources, and refining our platform's design to improve accessibility and ease of use. Additionally, we are exploring targeted marketing strategies to attract new paid subscribers while retaining existing ones. Through these efforts, we are confident in our ability to enhance User engagement and improve both subscriber growth and conversion rates in the coming periods.

***Gross profit and Costs of Sales***

Cost of sales mainly includes the hosting costs for the SentimenTrader platform, Bloomberg access for the analysts to research tools, and the analyst salaries. Cost of sales decreased by $44,832, or 40.90%, from $109,616 for the three months ended March 31, 2025, to $64,784 for the three months ended March 31, 2026, attributable to the decrease in analyst salaries.

Gross profit increased by $38,967, or 16.78%, from $232,290 for the three months ended March 31, 2025, to $271,257 for the three months ended March 31, 2026. The increase in gross profit was mainly due to the decrease in in cost of sales, as discussed above.

Gross profit margin increased from 67.94% for the three months ended March 31, 2025, to 80.72% for the three months ended March 31, 2026. The increase in gross profit margin was primarily due to decrease in cost of sales.

Our cost and gross profit are as follows:

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three months ended March 31,** | **Three months ended March 31,** | **Three months ended March 31,** | **Three months ended March 31,** | **Three months ended March 31,** | **Three months ended March 31,** | | | |
|  | **2026** | **2026** | **2026** | **2025** | **2025** | **2025** | **Variance** | **Variance** | **Variance** |
|  | **Cost of** | **Gross** | **Gross** | **Cost of** | **Gross** | **Gross** | **in Cost of** | **in gross** | **in gross** |
| **Category** | **sales** | **profit** | **profit %** | **sales** | **profit** | **profit %** | **sales** | **profit** | **profit %** |
| Subscription service | $64784 | $271257 | &nbsp;&nbsp;&nbsp;&nbsp; 80.72 | $109616 | $232290 | &nbsp;&nbsp;&nbsp;&nbsp; 67.94 | $&nbsp;&nbsp;&nbsp;&nbsp;(44832) | $38967 | 12.78% |
| Total | $64784 | $271257 | 80.72 | $109616 | $232290 | 67.94 | $(44832) | $38967 | 12.78% |

---

***Selling and marketing expenses***

Our selling and marketing costs primarily consist of expenses related to advertising and marketing consultants. These costs increased by $132,364 or 233.77%, from $56,622 for the three months ended March 31, 2025, to $188,986 for the three months ended March 31, 2026, representing 56.24% and 16.56% of our revenue for the three months ended March 31, 2026 and 2025, respectively. The increase was mainly driven by higher advertising and marketing expenses incurred in the current period compared to three months ended March 31, 2025.

***General and administrative expenses***

Our general and administrative expenses primarily include salaries and benefits, legal and professional fees, insurance expenses, office expenses, travel and entertainment expenses, utility expenses, depreciation expenses and amortization expenses. Our general and administrative expenses represented 314.40% and 165.50% of our revenue for the three months ended March 31, 2026 and 2025, respectively. General and administrative expenses increased by $490,663, or 86.71%, from $565,849 for the three months ended March 31, 2025, to $1,056,512 for the three months ended March 31, 2026. The increase was mainly due to the increase in legal fees, consulting fees, insurance expense, amortization expense, depreciation expense and membership and subscription charges.

 ****

***Research and development expenses***

Our research and development expenses primarily consist of costs incurred in the development of artificial intelligence and machine learning tools for our platform. These expenses incurred amounted to $73,172 for the three months ended March 31, 2026 and there were no expenses for the three months ended March 31, 2025. Research and development expenses represented approximately 21.77% and 0% of our revenue for the respective periods.

The increase in research and development expenses was driven by continued investment in enhancing our AI-driven capabilities and platform functionality. We expect research and development expenses to increase in future periods as we remain committed to expanding our AI-related features to deliver enhanced functionality and value to our users.

***Loss before income tax***

We had a loss before income taxes of $1,028,964 and $390,181 for the three months ended March 31, 2026 and 2025, respectively. The loss was primarily attributable to the increase in selling expenses, research and development expenses and general and administrative expenses.

***Provision for income taxes***

We had no provision for income taxes for the three months ended March 31, 2026 as we had no assessable profits for the period.

***Net loss or comprehensive loss***

We had a net comprehensive loss of $1,028,964 and $390,181 for the three months ended March 31, 2026 and 2025, respectively. The loss was primarily attributable to the increase in selling expenses, research and development expenses and general and administrative expenses. The discussion regarding the increase in selling expenses, research and development expenses and general and administrative expenses are discussed in the sections above.

**Cash Flows**

***For the Six months ended March 31, 2026 and 2025***

The following table sets forth summary of our cash flows for the periods indicated:

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| | | |
|:---|:---|:---|
|  | **Six months ended March 31,** | **Six months ended March 31,** |
|  | **2026** | **2025** |
| Net cash used in operating activities | $(1927242) | $(361771) |
| Net cash used in investing activities | (1682970) |  |
| Net cash provided by financing activities |  | (2789) |
| Net decrease in cash | (3610212) | (364560) |
| Cash, beginning of the period | 4418169 | 557823 |
| Cash, end of the period | $**807957** | $**193263** |

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***Operating Activities***

Net cash used in operating activities was $1,927,242 for the six months ended March 31, 2026, as compared to net cash used in operating activities of $361,771 for the six months ended March 31, 2025. The increase in net cash used in operating activities was mainly attributable to the following factors:

● Net
 loss of $2,326,201 for the six months ended March 31, 2026, compared to a net loss of $712,380 for the six months ended March 31,
 2025;

● Non-cash service expense for stock issuances incurred $78,297 for the six months ended March 31, 2026, compared to $0 for the six months ended March 31,
 2025;

● Prepaid
 expenses decreased by $174,463 for the six months ended March 31, 2026, compared to a decrease of $8,862 for the six months ended
 March 31, 2025;

● Payables
 and accrued liabilities increased by $127,393 for the six months ended March 31, 2026, compared to an increase of $120,241 for the
 six months ended March 31, 2025;

● The
 amounts due to related party decreased by $32,021 for the six months ended March 31, 2026, compared to an increase of $199,645 for
 the six months ended March 31, 2025;

● Contract
 liabilities increased by $26,308 for the six months ended March 31, 2026, compared to the increase of $15,000 for the six months
 ended March 31, 2025; and

● Accounts
 receivable and other receivables increased by $12,931 for the six months ended March 31, 2026, compared to no such
 amount for the six months ended March 31, 2025.

 ****

***Investing Activities***

Net cash used in investing activities was $1,682,970 for the six months ended March 31, 2026 and $0 for March 31, 2025.

The increase in net cash used in investing activities for the six months ended March 31, 2026 was primarily due to purchase of property and equipment of $1,168,598, payment for intangible assets for $417,167, and advances for the development of XYZ Terminal, Tradrithm & Alphid AI of $97,205 which are capitalized as Internally developed software WIP for the six months ended March 31, 2026, compared to no such amount for the six months ended March 31, 2025.

***Financing Activities***

 ****

Net cash used in financing activities was $0 for the six months ended March 31, 2026 as compared to $2,789 for the six months ended March 31, 2025.

**Liquidity, Capital Resources and Going Concern**

***Overview***

Our primary capital management strategy is to preserve sufficient capital to continue providing benefits to our stakeholders and adequate investment returns to our shareholders by selling our products at prices commensurate with our operating risks.

We determine the total amount of capital required to be consistent with risk levels. This capital structure is adjusted on a timely basis depending on changes in the economic environment and risks of the underlying assets. We are not subject to any externally imposed capital requirements.

***Working Capital***

As of March 31, 2026, our current assets were $1,083,201 which includes cash of $807,957, accounts receivable and other receivables of $12,931 and prepaid expenses of $262,313. Our current liabilities were $640,758 which includes accounts payables and accrued liabilities of $250,650, amounts due to related parties of $5,172, and contract liabilities of $384,936. The resulting positive working capital was $442,443. No dividends were declared and paid to the shareholders for the six months period ended March 31, 2026.

As of September 30, 2025, our current assets totaled $4,783,242, which included cash of $4,418,169 and prepaid expenses of $365,073. Our current liabilities amounted to $519,078, which consisted of accounts payable and accrued liabilities of $123,257, amounts due to related parties of $37,193, and contract liabilities of $358,628. This resulted in positive working capital of $4,264,164. No dividends were declared or paid to shareholders for the six months ended March 31, 2025.

Our available cash resources currently consist of the net proceeds from our April 2025 IPO and cash generated from our business. We completed our IPO on April 11, 2025 and the closing of the underwriters' over-allotment option on April 16, 2025, which collectively generated aggregate gross proceeds of approximately $8,901,000 (before underwriting discounts and offering expenses). We continue to incur operating losses and expect to require additional capital in the near term to fund operations and execute our business plan. These conditions raise substantial doubt about our ability to continue as a going concern within one year after the date these condensed financial statements are issued.

Management intends to fund operating costs over the next twelve months primarily through the use of remaining IPO proceeds and, most likely, through additional financing from public or private offerings of equity or debt securities. However, there can be no assurance that such financing will be available on acceptable terms, or at all. Accordingly, management has concluded that substantial doubt about our ability to continue as a going concern has not been alleviated. The accompanying condensed financial statements do not include any adjustments that might result from the outcome of this uncertainty.

***Capital Expenditures***

During the six months ended March 31, 2026 we paid $1,168,598 towards purchase of property and $417,167 towards acquisition of intangible assets.

*SentimenTracker*

In February 2026, the Company launched its internally developed software platform, SentimenTracker, upon completion of the application development stage and readiness for intended use. As of that date, the Company had capitalized $118,016 of development costs related to the platform.

*Note Purchase Agreement with Streeterville Capital, LLC*

 

On May 13, 2026, the Company entered into a Note Purchase Agreement with Streeterville Capital, LLC (the "Investor"), pursuant to which the Company issued a Secured Promissory Note in the original principal amount of $3,240,000, including an original issue discount of $240,000. The purchase price for the Note was $3,000,000 and, after deducting a $30,000 transaction expense amount payable to the Investor, net proceeds to the Company were approximately $2,970,000, which the Company intends to use for working capital and general corporate purposes. The Note bears interest at 8% per annum, compounding daily based on a 360-day year of twelve 30-day months, and matures eighteen (18) months after the date the purchase price is delivered to the Company (the "Purchase Price Date"). The Note is secured by a first-position lien on substantially all of the Company's assets and intellectual property, subject to permitted liens, and is guaranteed by the Company's subsidiaries that are party to the related guaranty. No warrants were issued in connection with this transaction.

Beginning on the six-month anniversary of the Purchase Price Date, the Investor has the right, exercisable in its sole discretion, to redeem up to $250,000 per calendar month in cash, and may redeem additional amounts based on the trading price and volume of the Company's common stock upon the occurrence of a Limited Redemption Event, each payable within three trading days of notice. These redemption rights may result in recurring cash payment obligations if and to the extent the Investor delivers redemption notices beginning on the six-month anniversary of the Purchase Price Date, which would be November 13, 2026 if the Purchase Price Date is May 13, 2026, and the Company must maintain sufficient liquidity to satisfy such notices as they arise. If the Note remains outstanding on the six-month anniversary of the Purchase Price Date, a one-time monitoring fee will be automatically added to the outstanding balance, calculated as the outstanding balance on that date divided by 0.85 less such outstanding balance. If calculated based solely on the initial principal amount of $3,240,000 and assuming no payments, accrued unpaid interest or other adjustments to the outstanding balance, the fee would be approximately $571,765. The Company may prepay the Note in full at any time at 110% of the then-outstanding balance.

The Note and Note Purchase Agreement impose material restrictions on the Company's financing flexibility, including, subject to specified exceptions, restrictions on additional indebtedness, liens, and subsidiary equity transfers and issuances, subsidiary indebtedness, and variable-price or resettable securities issuances without the Investor's prior written consent. The Note also contains trigger event provisions pursuant to which the Investor may increase the outstanding balance by up to 15% per major trigger event or 5% per minor trigger event (capped at three occurrences each), with most uncured trigger events becoming events of default after a five-trading-day cure period, and certain insolvency, bankruptcy, receivership and similar trigger events becoming automatic events of default, in each case subject to acceleration of the outstanding balance and default interest of 15% per annum. The occurrence of any such event could have a material adverse effect on the Company's liquidity and financial condition.

***Contractual Obligations***

As of March 31, 2026, and as of September 30, 2025, we don't have any contractual obligations.

***Off-Balance Sheet Arrangements***

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources for the three and six months ended March 31, 2026 and 2025.

**Critical Accounting Policies and Estimates**

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, contingent assets and liabilities, each as of the date of the financial statements, and revenues and expenses during the periods presented. On an ongoing basis, management evaluates their estimates and assumptions, and the effects of any such revisions are reflected in the financial statements in the period in which they are determined to be necessary. Management bases their estimates on historical experience and on various other factors that they believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual outcomes could differ materially from those estimates in a manner that could have a material effect on our consolidated financial statements.

While our significant accounting policies are more fully described in Note 2 – Summary of Significant Accounting Policies to our consolidated financial statements, we believe that there were no critical accounting policies and estimates that affect the preparation of financial statements.

**Item 3: Quantitative and Qualitative Disclosure About Market Risk**

As a "smaller reporting company" as defined by Item 10 of Regulation S-K, we are not required to provide information required by this Item.

**Item 4: Controls and Procedures**

***Disclosure Controls and Procedures***

Disclosure controls and procedures are controls and other procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer (together, the "Certifying Officers"), or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

Under the supervision and with the participation of our management, including our Certifying Officers, we carried out 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 Exchange Act. Based on this evaluation, our principal executive officer and principal financial and accounting officer have concluded that during the period covered by this Report, our disclosure controls and procedures were effective at a reasonable assurance level and, accordingly, provided reasonable assurance that the information required to be disclosed by us in reports filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms.

We do not expect that our disclosure controls and procedures will prevent all errors and all instances of fraud. Disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Further, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and the benefits must be considered relative to their costs. Because of the inherent limitations in all disclosure controls and procedures, no evaluation of disclosure controls and procedures can provide absolute assurance that we have detected all our control deficiencies and instances of fraud, if any. The design of disclosure controls and procedures also is based partly on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

***Changes in Internal Control over Financial Reporting***

There was no change in our internal control over financial reporting that occurred during the 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.** 

From time to time, we may be subject to legal proceedings, investigations and claims incidental to the conduct of our business. Other than the below, we are currently not involved in any legal proceedings which, in the opinion of our management, are likely to have a material adverse effect on our business, financial condition or results of operations.

*Mandel v. Aether Holdings, Inc., et. al.*

 

On March 19, 2026, David Mandel, a former member of the Company's board of directors, filed a complaint against the Company, Nicolas Lin, the Company's Chief Executive Officer and Chairman, and certain Doe defendants in the Superior Court of the State of California, County of Los Angeles, Case No. 26STCV08877. On April 24, 2026, the Company removed the action to the United States District Court for the Central District of California, Case No. 2:26-cv-04423. The complaint alleges breach of oral contract and promissory fraud based on allegations that the Company and Mr. Lin offered Mr. Mandel the position of Chief Executive Officer of the Company for a three-year term at an annual salary of $220,000 and an equity interest equal to 7.5% of the Company's equity, vesting in tranches over a three-year period. Mr. Mandel seeks damages in excess of $11.46 million, punitive damages and such other relief as the court may deem appropriate. The Company believes the claims are without merit and intends to defend the action vigorously. The action is at the pleading stage.

**Item 1A. Risk Factors** 

As a "smaller reporting company" as defined by Item 10 of Regulation S-K, we are not required to provide information required by this Item. However, we are voluntarily providing risk factor updates as described in this Item 1A.

For our current risk factors relating to our operations, other than as set forth below, see the section entitled "Risk Factors" contained in our Annual Report.

***Our management is currently involved in litigation proceedings with one of our former directors who has brought claims against us for breach of contract and promissory fraud. If we were to receive an adverse ruling, it could materially and adversely affect our reputation, cause us to incur significant judgment or settlement costs in cash or equity securities, and adversely affect our stock price.***

On March 19, 2026, David Mandel, a former member of our board of directors, filed a complaint against us, Nicolas Lin, our Chief Executive Officer and Chairman, and certain Doe defendants in the Superior Court of the State of California, County of Los Angeles, Case No. 26STCV08877. On April 24, 2026, we removed the action to the United States District Court for the Central District of California, Case No. 2:26-cv-04423. The complaint alleges breach of oral contract and promissory fraud based on allegations that we and Mr. Lin offered Mr. Mandel the position of our Chief Executive Officer for a three-year term at an annual salary of $220,000 and an equity interest equal to 7.5% of our equity, vesting in tranches over a three-year period. Mr. Mandel seeks damages in excess of $11.46 million, punitive damages and such other relief as the court may deem appropriate. We believe the claims are without merit and intend to defend the action vigorously.

Defending against Mr. Mandel's legal action could cause us to incur significant expenses and consume large amounts of our management's time and attention. If Mr. Mandel were to prevail, an adverse ruling on such a claim could materially and adversely affect our reputation, cause us to incur significant judgment or settlement costs in cash or equity securities and could adversely affect our stock price. See the section above entitled "*Item 1. Legal Proceedings – Mandel v. Aether Holdings, Inc., et. al.*" and the sections in our Annual Report on Form 10-K filed with the SEC on December 17, 2025, entitled "*Business - Recent Developments - Dispute with Former Director*" and "*Business – Recent Developments – Removal of Director*" for additional information regarding the legal action, dispute and Mr. Mandel's removal.

***Covenants and other provisions in the Note Purchase Agreement with Streeterville Capital, LLC pursuant to which we issued a Secured Promissory Note may restrict our business and operations, and if we do not effectively manage our covenants, our financial condition and results of operations could be adversely affected. In addition, our operations may not provide sufficient cash to meet the repayment obligations of our debt incurred under the Note Purchase Agreement and the Secured Promissory Note.***

Pursuant to the Note Purchase Agreement, we granted to Streeterville Capital, LLC a security interest in substantially all of our assets, including our intellectual property. If an event of default occurs under the Note Purchase Agreement, Streeterville Capital, LLC may foreclose on its security interest and liquidate some or all of these assets, which would harm our business, financial condition and results of operations.

In the event of a default in connection with our bankruptcy, insolvency, liquidation, or reorganization, Streeterville Capital, LLC would have a prior right to substantially all of our assets to the exclusion of our general unsecured creditors. Only after satisfying the claims of Streeterville Capital, LLC and any unsecured creditors would any amount be available for our equity holders. The pledge of these assets and other restrictions imposed in the Note Purchase Agreement may limit our flexibility in raising capital for other purposes. Because substantially all of our assets are pledged to secure the Note, our ability to incur additional indebtedness or to sell or dispose of assets to raise capital may be impaired, which could have an adverse effect on our financial flexibility.

In addition, if we are unable to comply with certain covenants in the Note Purchase Agreement, we may be limited in our business activities and access to credit or may default under the Note Purchase Agreement. Provisions in the Note and Note Purchase Agreement impose restrictions or require prior approval on our ability, and the ability of our subsidiaries to, among other things:

● incur additional debt;

● create liens or encumbrances;

● engage in certain fundamental transactions;

● conduct certain issuances of equity and debt securities; and

● sell, transfer certain parts of our business or property, including equity interests of our securities.

The Note Purchase Agreement also contains certain other covenants, which we may not be able to comply with in the future. Our failure to comply with these covenants may result in the declaration of an event of default, which, if not cured or waived, may result in the acceleration of our repayment obligations under the Note. If the maturity of our indebtedness is accelerated, we may not have sufficient funds available for repayment or we may not have the ability to borrow or obtain sufficient funds to replace the accelerated indebtedness on terms acceptable to us or at all. Our failure to repay our obligations under the Note would result in Streeterville Capital, LLC foreclosing on all or a portion of our assets, which could force us to curtail or cease our operations.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**

***a) Sales of Unregistered Securities***

During the six months ended March 31, 2026, the Company did not conduct any unregistered sales of equity securities.

***b) Use of Proceeds***

On April 9, 2025, our Registration Statement on Form S-1 (File No. 333-284081) (the "IPO Registration Statement") was declared effective by the SEC for our initial public offering ("IPO"). On April 11, 2025, we consummated our IPO of 1,800,000 shares of our common stock, par value $0.001 per share, at a price to the public of $4.30 per share, generating gross proceeds of $7,740,000. In connection with the IPO, we granted The Benchmark Company, LLC and Axiom Capital Management, Inc., the representatives of the underwriters, an option, exercisable for 30 days, to purchase up to an additional 270,000 shares of common stock at the public offering price of $4.30 (the "IPO Over-Allotment Option").

On April 16, 2025, we closed on the fully exercised IPO Over-Allotment Option resulting in additional gross proceeds to us of $1,161,000, before deducting underwriting discounts, commissions and offering expenses. After giving effect to the full exercise of the IPO Over-Allotment Option, a total of 2,070,000 shares of our common stock have been issued and sold in the IPO, and the gross proceeds from the IPO, including the full exercise of the IPO Over-Allotment Option, before deducting underwriting discounts, commissions and offering expenses, was $8,901,000. The net proceeds to us from the IPO and IPO Over-Allotment Option were $7,725,350, after deducting underwriting commission of $623,070, non-accountable expenses of $89,010, underwriting fees of $182,500, refund of $25,000 retainer and legal fees of $256,070. No payments for such expenses were made directly or indirectly to (i) any of our officers or directors or their associates, (ii) any persons owning 10% or more of any class of our equity securities or (iii) any of our affiliates.

Other than as has been previously reported, there has been no material change in the planned use of proceeds from the IPO as described in the IPO Registration Statement.

**Item 3. Defaults upon Senior Securities**

None.

**Item 4. Mine and Safety Disclosure**

Not applicable

**Item 5. Other Information**

No director or Section 16 officer adopted or terminated a trading arrangement intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or a "non-Rule 10b5-1" trading arrangement during the periods reported in this Form 10-Q.

**Item 6. Exhibits**

The following is a complete list of exhibits filed or furnished, as applicable, as part of this Form 10-Q. Exhibit numbers correspond to the numbers in the Exhibit Table of Item 601 of Regulation S-K.

---

| | |
|:---|:---|
| **Exhibit** | **Description** |
| 3.1 | [Amended Certificate of Incorporation (incorporated by reference to Exhibit 3.1 of the Company's Amendment No. 1 to its Registration Statement on Form S-1 (File No. 333-248081) filed with the SEC on February 27, 2025).](https://www.sec.gov/Archives/edgar/data/2026353/000149315225008544/ex3-1.htm) |
| 3.2 | [Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 of the Company's Amendment No. 1 to its Registration Statement on Form S-1 (File No. 333-2848081) filed with the SEC on February 27, 2025).](https://www.sec.gov/Archives/edgar/data/2026353/000149315225008544/ex3-2.htm) |
| 31.1\* | [Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](ex31-1.htm) |
| 31.2\* | [Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](ex31-2.htm) |
| 32.1\*\* | [Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex32-1.htm) |
| 32.2\*\* | [Certification of Chief Financial Officer 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 (embedded within the Inline XBRL document) |

---

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

**SIGNATURES**

Pursuant to the requirements of Section 12 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.

---

| | | |
|:---|:---|:---|
| Date: May 15, 2026 | **AETHER HOLDINGS, INC.** | **AETHER HOLDINGS, INC.** |
|  | By: | */s/ Nicolas Lin* |
|  |  | Nicolas Lin |
|  |  | Chief Executive Officer |
|  |  | (Principal Executive Officer) |
|  | By: | */s/ Suresh Iyer* |
|  |  | Suresh Iyer |
|  |  | Chief Financial Officer |
|  |  | (Principal Financing and Accounting Officer) |

---

## Exhibit 31.1

**Exhibit 31.1**

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

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

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Nicolas Lin, Chief Executive Officer, certify that:

---

| | | |
|:---|:---|:---|
| 1. | I have reviewed this Quarterly Report on Form 10-Q of Aether Holdings, Inc. (the registrant); | I have reviewed this Quarterly Report on Form 10-Q of Aether Holdings, Inc. (the registrant); |
| 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; | 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 quarterly 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; | Based on my knowledge, the financial statements, and other financial information included in this quarterly 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: | 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: |
|  | a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, is made known to me by others, 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 my 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 controls over financial reporting that occurred during the registrant's current 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 |
| 5. | The registrant's other certifying officer 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); | The registrant's other certifying officer 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); |
|  | a. | All significant deficiencies and material weaknesses in the design or operation of internal controls 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 controls over financial reporting. |

---

---

| | |
|:---|:---|
| May 15, 2026 | */s/ Nicolas Lin* |
|  | Nicolas Lin |
|  | Chief Executive Officer |
|  | (Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

CERTIFICATION OF CHIEF FINANCIAL OFFICER

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

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Suresh Iyer, Chief Financial Officer, certify that:

---

| | | |
|:---|:---|:---|
| 1. | I have reviewed this Quarterly Report on Form 10-Q of Aether Holdings, Inc. (the registrant); | I have reviewed this Quarterly Report on Form 10-Q of Aether Holdings, Inc. (the registrant); |
| 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; | 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 quarterly 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; | Based on my knowledge, the financial statements, and other financial information included in this quarterly 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: | 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: |
|  | a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, is made known to me by others, 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 my 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 controls over financial reporting that occurred during the registrant's current 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 |
| 5. | The registrant's other certifying officer 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); | The registrant's other certifying officer 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); |
|  | a. | All significant deficiencies and material weaknesses in the design or operation of internal controls 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 controls over financial reporting. |

---

---

| | |
|:---|:---|
| May 15, 2026 | */s/ Suresh Iyer* |
|  | Suresh Iyer |
|  | Chief Financial Officer |
|  | (Principal Financial and Accounting Officer) |

---

## Exhibit 32.1

**Exhibit 32.1**

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

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 of Aether Holdings, Inc. (the "Company") on Form 10-Q for the period ended March 31, 2026, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Nicolas Lin, as Chief Executive Officer and principal executive officer of the Company, hereby certifies, pursuant to 18, U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of the undersigned's knowledge and belief, that:

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as
 amended; and

2. The
 information contained in the Report fairly presents, in all material respects, the financial condition and results of operations
 of the Company as of the dates and for the periods expressed in the Report.

This certification shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act, as amended, or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filings under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.

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| | |
|:---|:---|
| May 15, 2026 | */s/ Nicolas Lin* |
|  | Nicolas Lin |
|  | Chief Executive Officer |
|  | (Principal Executive Officer) |

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## Exhibit 32.2

**Exhibit 32.2**

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER

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 of Aether Holdings, Inc. (the "Company") on Form 10-Q for the period ended March 31, 2026, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Suresh Iyer, as Chief Financial Officer and principal financial and accounting officer of the Company, hereby certifies, pursuant to 18, U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of the undersigned's knowledge and belief, that:

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as
 amended; and

2. The
 information contained in the Report fairly presents, in all material respects, the financial condition and results of operations
 of the Company as of the dates and for the periods expressed in the Report.

This certification shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act, as amended, or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filings under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.

---

| | |
|:---|:---|
| May 15, 2026 | */s/ Suresh Iyer* |
|  | Suresh Iyer |
|  | Chief Financial Officer |
|  | (Principal Financial and Accounting Officer) |

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